PETALING JAYA: Sunway Real Estate Investment Trust
's (REIT) retail assets continues to post strong growth momentum in the third quarter ended Sept 30, 2026 (3Q26) with revenue increasing 6% to RM176.6mil compared to 3Q25 primarily driven by the full reopening of the existing wing of Sunway Carnival Mall, stronger contributions from the flagship Sunway Pyramid Mall and higher rental income from Sunway Putra Mall.
Sunway-REIT Management Sdn Bhd, the REIT manager, said in a media release that net property income (NPI) increased 5% to RM128.3mil compared with 3Q25.
"Healthy occupancy levels, positive rental reversions and resilient consumer spending are expected to underpin the segment’s earnings stability and growth in the coming quarters," it said.
It noted that the REIT demonstrated resilience in its portfolio performance, with revenue declining 1.7% to RM232.3mil primarily due to the disposal of Sunway university & college campus in September 2025 in line with its asset recycling strategy.
For the nine-month period ended Sept 30, 2026 (9M26), the REIT recorded a 1.7% rise in NPI to RM493mil while revenue increased 1.3% to RM675.7mil compared with 9M25 driven by stronger contribution of RM43.1mil from the retail segment, more than offsetting the absence of RM29.3mil in revenue contribution.
The REIT manager's chief executive officer Derek Teh Wan Wei said Sunway-REIT continues to demonstrate the resilience and quality of its diversified portfolio in 3Q26.
"The retail segment remained the key growth driver, supported by strong shopper traffic, healthy tenant sales, positive rental reversions and sustained contributions from our retail assets," he said.
The REIT manager said the hotel segment recorded a 14% decline in revenue to RM30.2mil on softer performance across the hotel assets, except for Sunway Putra Hotel, on a lower average occupancy rate of 74% against 76% in 3Q25.
"Looking ahead, the hotel segment’s performance is expected to be supported by year-end leisure travel season and catalytic major events, including the extended Visit Malaysia Year 2026 to 2027 and 34th South-East Asian Games in 2027," it added.
The office segment posted a 3% increase in revenue to RM20.7mil primarily driven by higher occupancy at Sunway Putra Tower.
Its NPI also registered a 6% improvement to RM12.5mil from supported by higher revenue and lower utilities expenses.
"The office segment is expected to sustain its performance in the coming quarters, supported by healthy portfolio occupancy levels and ongoing leasing initiatives," it said.
Teh said the office segment also delivered improved performance on the back of stronger occupancy and leasing momentum, while the hotel segment experienced temporary headwinds arising from the ongoing conflicts in the Middle East and haze-related disruptions in the Klang Valley.
"Looking ahead, we remain cautiously optimistic about Sunway-REIT’s overall prospects for the remainder of 2026. The retail segment is expected to sustain its growth momentum, supported by resilient consumer spending, strong occupancy levels and positive rental reversions, while the office and industrial segments are poised to benefit further from continued leasing momentum and improving occupancy," he said.
For the hotel segment, Teh said the REIT manager remains focused on strengthening performance through proactive marketing and pricing strategies, while enhancing demand across banqueting and meetings, incentives, conferences and exhibitions activities.
"Moving forward, we will continue to prioritise proactive asset management, operational efficiency and sustainable growth to enhance portfolio resilience and deliver long-term value to our unitholders," he added.
