KUALA LUMPUR: MIDF Research reaffirmed its Buy call on Sunway REIT due to the positive outlook anchored by Sunway Pyramid and new contribution from Sunway Clio.
The research house said on Friday that it also expects improvement for its office segment in FY19.
It added that the group’s dividend yield is estimated at 5.1%.
“We fine-tune our FY19 estimates to include higher operating expenses from higher promotional and marketing expenses for its retail segment.
“As a result, our FY19 core net income is reduced to RM292mil from RM303mil previously,” it said in a note.
It noted that the revised CNI represented a 3% year-on-year growth, which is premised on positive single-digit rental reversion from its retail segment.
“We also expect the higher NPI from the office segment to be slightly offset by the weaker hotel segment mainly due to softer NPI at Sunway Resort and Spa due to the refurbishment work there,” it said.