Sunway REIT records 13.3pc revenue hike Sunway REIT records 13.3pc revenue hike
Share this on WhatsAppBY Roznah Abdul Jabbar  Sunway Real Estate Investment Trust (Sunway REIT), one of the largest retail-focused REIT in Malaysia, has seen... Sunway REIT records 13.3pc revenue hike

BY Roznah Abdul Jabbar 

Sunway Real Estate Investment Trust (Sunway REIT), one of the largest retail-focused REIT in Malaysia, has seen a commendable performance for the nine months of its financial year (9M FY2016), which will be ending in June 2016.

Sunway REIT Management Sdn Bhd, the manager of Sunway REIT, announced that the revenue increased to RM383.4 million, presenting a growth of 13.3 per cent year-on-year.

It said that the retail and hotel segments are the main contributors for the nett property income (NPI), which expanded by 10.6 per cent, compared to the same period in the preceding year, to RM283.7 million.

The encouraging financial performance was further supported by new income contribution from Sunway Putra Mall following its re-opening in May 2015, Sunway Hotel Georgetown and Wisma Sunway which were acquired in January 2015 and March 2015 respectively.

The company said overall the retail segment registered a healthy growth in revenue and NPI of 15.7 per cent y-o-y and 13.3 per cent y-o-y respectively while the hotel segment’s revenue and NPI expanded by 26.1 per cent y-o-y and 25 per cent y-o-y respectively for the nine months of FY2016.

The office segment continued to be the laggard as the revenue and NPI declined by 22.7 per cent y-o-y and 43.7 per cent y-o-y respectively due to lower average occupancy of all office properties, with the exception of Wisma Sunway which commenced contribution from March 23, 2015 upon completion of its acquisition.

Sunway Putra Mall, which was opened last year, contributed to the encouraging performance of Sunway REIT.

Sunway Putra Mall, which was opened last year, contributed to the encouraging performance of Sunway REIT.

For the third quarter of FY2016 (3QFY2016), which ended on March 31, Sunway REIT registered an expanded revenue and NPI of 17.7 per cent and 16.2 per cent y-o-y respectively.

Sunway REIT said that the better performance was also attributable to improvement in average occupancy at Sunway Putra Hotel following the completion of its refurbishment in Dec 2015.

CEO of Sunway REIT Management, Datuk Jeffrey Ng said despite the challenging market, the resilient assets located in Sunway Resort City have held up the overall performance of Sunway REIT.

“We expect a modest growth in distribution per unit (DPU) for FY2016 mainly contributed by new and resumption of income contribution from completion of refurbishment and acquisitions, namely Sunway Putra Mall, Sunway Putra Hotel, Sunway Hotel Georgetown and Wisma Sunway,” he said.

Meanwhile, he said, Sunway Resort Hotel & Spa has enjoyed a strong performance in 3QFY2016 boosted by the leisure segment particularly from the Middle Eastern market.

“The higher DPU was also contributed by a one-off court award amounting to RM6.189 million which was recognised in 2QFY2016,” he said.

 

Property 360 Online

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