Sunway REIT posts modest income growth in Q1 - Business News | The Star Online


Sunway REIT posts modest income growth in Q1

KUALA LUMPUR: Sunway Real Estate Investment Trust (REIT) recorded a net profit of RM64.51mil for the first quarter (Q1) ended Sept 30, 2015, a 1.7% rise from a year earlier.

Sunway REIT Management Sdn Bhd, which manages the “retail-focused” trust, said net property income (NPI) rose by 4.0% year-on-year, underpinned by commendable growth from the retail and hotel segments, but partially offset by lower income contribution from the office segment. 

Revenue, meanwhile, increased by 6.5% to RM121.22mil, it told Bursa Malaysia.

The REIT’s retail properties - Sunway Pyramid, Sunway Carnival (Penang), Suncity Ipoh Hypermarket and Sunway Putra Mall - were the biggest segment contributor to both revenue and NPI, at 71.8% and 67.8% respectively.

The retail segment’s 7.3% higher revenue of RM87.1mil was mainly contributed by the resilient performance from flagship asset Sunway Pyramid Shopping Mall and by Sunway Putra Mall post its soft opening on May 28 this year.

However, the biggest growth (21.4% in revenue and 16.9% in NPI) came from the hotel segment, where Sunway Resort Hotel & Spa just over 55% in both revenue and profit.

The office segment was the worst performer, posting a 22% drop in revenue and 43.8% lower NPI due to lower average occupancy rate. 

Sunway REIT Management proposed an interim income distribution of 2.12 sen per unit for Q1, or about 100% of the realised distributable income amounting to RM62.33mil.