Sunway-REIT 2Q net profit at RM129mil
PETALING JAYA: Sunway Real Estate Investment Trust (Sunway-REIT) will continue to be cautious in view of the external challenges posed by the recently imposed US tariff barriers, which could dampen business confidence and weigh on consumer sentiment.
'We will continue to monitor the market closely in response and will intensify efforts to diversify our tenant mix, as well as to increase focus on domestic and regional travellers,' it said in a Bursa Malaysia filing.
Releasing its results yesterday, the investment manager recorded a softer net profit of RM129.35mil for the second quarter ended June 30, 2025 (2Q25), compared with RM145.07mil in the corresponding quarter last year.
Its basic earnings per share also dropped from 4.21 sen in 3Q24 to 3.61 sen for the quarter in review.
Nonetheless, the trust's revenue for the quarter rose 20.4% year-on-year to RM211.4mil from RM175.57mil, underpinned by higher contributions from the retail and industrial, and other segments.
Net property income (NPI) was also higher at RM154.9mil versus RM129.3mil in the same quarter last year.
The retail segment remained the main growth driver, with revenue climbing 29.4% to RM160mil from RM123.7mil in 2Q24.
The performance was supported by income from retail assets acquired in 2024, higher tenant sales and footfall at Sunway Pyramid Mall following the opening of its Oasis wing, as well as the earlier-than-expected full reopening of Sunway Carnival Mall's existing wing.
NPI for the segment expanded to RM114.1mil from RM86.17mil previously.
The industrial and other segment posted a 99.7% surge in revenue to RM4.5mil from RM2.2mil, boosted by rental contributions from new tenants at Sunway-REIT Industrial – Petaling Jaya 1.
The addition of Sunway-REIT Industrial – Prai, acquired in October 2024, also lifted the segment's earnings.
The segment's NPI rose to RM3.19mil in 2Q25 from RM2.02mil previously.
The services segment delivered a modest 2.3% improvement in revenue to RM9.8mil from RM9.58mil.
However, the hotel segment's revenue fell 12.9% to RM16.74mil from RM19.21mil, weighed down by lower occupancy rates at Klang Valley hotels.
The office segment also saw a decline, with revenue easing 2.2% to RM20.36mil from RM20.82mil as occupancy rates slipped to 82% from 84% a year earlier.
For the first half of financial year 2025 (1H25), Sunway-REIT posted a net profit of RM233.67mil, marginally higher than RM232.05mil in the same period last year.
Basic earnings per share eased to 6.49 sen from 6.60 sen. Revenue for the six months rose to RM430.26mil from RM354.16mil previously, while NPI improved to RM312.1mil from RM259.8mil.
On a segmental basis, retail revenue for the 1H25 grew 31.3%, services rose 2.3%, while industrial and others recorded a 91.1% increase.
The hotel and office segments posted revenue declines of 14.3% and 3.1%, respectively, due to softer demand in the hospitality market and slightly weaker office occupancy.
Sunway-REIT declared a distribution per unit of 5.68 sen for the six months to June 30, 2025.
On a brighter note, the group said it views the latest overnight policy rate cut of 25 basis points by Bank Negara Malaysia to be a welcomed development.
'As a yield-focused investment vehicle, lower borrowing costs will help improve interest margins and support our capital management strategy.
'This monetary easing provides additional headroom to pursue yield-accretive acquisitions and asset enhancement initiatives, reinforcing our commitment to deliver sustainable returns to unitholders,' it added.
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New Straits Times
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- New Straits Times
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The Star
20 hours ago
- The Star
Sunway-REIT 2Q net profit at RM129mil
The trust's revenue for the quarter rose 20.4% year-on-year to RM211.4mil. PETALING JAYA: Sunway Real Estate Investment Trust (Sunway-REIT) will continue to be cautious in view of the external challenges posed by the recently imposed US tariff barriers, which could dampen business confidence and weigh on consumer sentiment. 'We will continue to monitor the market closely in response and will intensify efforts to diversify our tenant mix, as well as to increase focus on domestic and regional travellers,' it said in a Bursa Malaysia filing. Releasing its results yesterday, the investment manager recorded a softer net profit of RM129.35mil for the second quarter ended June 30, 2025 (2Q25), compared with RM145.07mil in the corresponding quarter last year. Its basic earnings per share also dropped from 4.21 sen in 3Q24 to 3.61 sen for the quarter in review. Nonetheless, the trust's revenue for the quarter rose 20.4% year-on-year to RM211.4mil from RM175.57mil, underpinned by higher contributions from the retail and industrial, and other segments. Net property income (NPI) was also higher at RM154.9mil versus RM129.3mil in the same quarter last year. The retail segment remained the main growth driver, with revenue climbing 29.4% to RM160mil from RM123.7mil in 2Q24. The performance was supported by income from retail assets acquired in 2024, higher tenant sales and footfall at Sunway Pyramid Mall following the opening of its Oasis wing, as well as the earlier-than-expected full reopening of Sunway Carnival Mall's existing wing. NPI for the segment expanded to RM114.1mil from RM86.17mil previously. The industrial and other segment posted a 99.7% surge in revenue to RM4.5mil from RM2.2mil, boosted by rental contributions from new tenants at Sunway-REIT Industrial – Petaling Jaya 1. The addition of Sunway-REIT Industrial – Prai, acquired in October 2024, also lifted the segment's earnings. The segment's NPI rose to RM3.19mil in 2Q25 from RM2.02mil previously. The services segment delivered a modest 2.3% improvement in revenue to RM9.8mil from RM9.58mil. However, the hotel segment's revenue fell 12.9% to RM16.74mil from RM19.21mil, weighed down by lower occupancy rates at Klang Valley hotels. The office segment also saw a decline, with revenue easing 2.2% to RM20.36mil from RM20.82mil as occupancy rates slipped to 82% from 84% a year earlier. For the first half of financial year 2025 (1H25), Sunway-REIT posted a net profit of RM233.67mil, marginally higher than RM232.05mil in the same period last year. Basic earnings per share eased to 6.49 sen from 6.60 sen. Revenue for the six months rose to RM430.26mil from RM354.16mil previously, while NPI improved to RM312.1mil from RM259.8mil. On a segmental basis, retail revenue for the 1H25 grew 31.3%, services rose 2.3%, while industrial and others recorded a 91.1% increase. The hotel and office segments posted revenue declines of 14.3% and 3.1%, respectively, due to softer demand in the hospitality market and slightly weaker office occupancy. Sunway-REIT declared a distribution per unit of 5.68 sen for the six months to June 30, 2025. On a brighter note, the group said it views the latest overnight policy rate cut of 25 basis points by Bank Negara Malaysia to be a welcomed development. 'As a yield-focused investment vehicle, lower borrowing costs will help improve interest margins and support our capital management strategy. 'This monetary easing provides additional headroom to pursue yield-accretive acquisitions and asset enhancement initiatives, reinforcing our commitment to deliver sustainable returns to unitholders,' it added.
The Star
a day ago
- The Star
Sunway REIT records lower net profit for 2Q
KUALA LUMPUR: Sunway Real Estate Investment Trust (Sunway REIT) posted a lower net profit of RM129.35 million in the second quarter ended June 30, 2025 (2Q 2025), down from RM145.07 million year-on-year. However, its revenue increased to RM211.40 million in 2Q 2025 from RM175.57 million a year earlier, underpinned by strong contributions from the retail as well as industrial and others segments. Sunway REIT Management Sdn Bhd acting chief executive officer/chief financial officer Ng Bee Lien said the strong contributions from newly acquired assets and active asset enhancement efforts have enabled the REIT to deliver robust growth. "While the hotel and office segments experienced temporary softness due to seasonal factors and external disruptions, we are seeing early signs of recovery, particularly in the hospitality segment,' she said in a statement today. Sunway REIT also declared an interim income distribution of 5.68 sen per unit, of which 5.45 sen per unit is taxable and 0.23 sen per unit is tax exempt, for the semi annual period ended June 30, 2025. In 2Q 2025, Sunway REIT's retail segment sustained its strong growth trajectory, with revenue increasing by 29 per cent to RM160.0 million from RM123.7 million in the same period last year, driven by higher contributions from retail assets acquired in 2024. This was alongside improved revenue from Sunway Pyramid Mall following the opening of its Oasis wing on Nov 1, 2024 and the earlier-than-anticipated full reopening of Sunway Carnival Mall's existing wing on May 7, 2025, Sunway REIT said in a filing with Bursa Malaysia today. "As a result, the segment's net property income (NPI) surged 32 per cent to RM114.1 million, compared to RM84.2 million in the previous corresponding quarter. "The retail segment is expected to maintain its upward momentum in the coming quarters, supported by the completion of the AEON Mall Seri Manjung asset acquisition on July 25, 2025,' it added. The industrial and others segment recorded a near 100 per cent increase in revenue to RM4.5 million in 2Q 2025, up from RM2.2 million in the same period last year, while NPI rose 57 per cent to RM3.2 million from RM2.0 million year-on-year. Sunway REIT said the improved performance was driven by rental contributions from new tenants at Sunway REIT Industrial - Petaling Jaya 1, along with the addition of Sunway REIT Industrial - Prai following its acquisition on Oct 24, 2024. - Bernama
