Sunway REIT posts 20% NPI growth in 1Q, bolstered by asset acquisitions and retail surge
SUNWAY Real Estate Investment Trust (Sunway REIT) reported a 20% year-on-year increase in net property income (NPI) to RM157.2 million in the first quarter ended March 31, 2025 (1Q25), on the back of a 23% rise in revenue to RM218.9 million.
This strong performance was largely fueled by contributions from newly acquired assets in 2024 — including Sunway 163 Mall, Sunway Kluang Mall, and six Giant hypermarkets – as well as the reopening of the Oasis precinct in Sunway Pyramid Mall.
The retail segment led the growth, with revenue up 33% and NPI up 34%, while the hotel and office segments underperformed due to lower occupancy.
The industrial and others segment saw a strong rebound, with revenue jumping 83% and NPI up 61%.
Its CEO Clement Chen highlighted the early completion of Sunway Carnival Mall's final refurbishment phase as a key milestone, expected to boost future performance.
Sunway REIT also proposed the RM613 million disposal of its university and college campus, aligning with its asset recycling strategy to enhance long-term returns and maintain balance sheet strength.
While optimistic about FY2025 performance, Sunway REIT remains cautious of macroeconomic headwinds including potential trade tensions, tax changes, and subsidy reforms. — TMR
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
BusinessToday
15-05-2025
- BusinessToday
Sunway REIT, A Top Pick Among Peers: Maybank IB
Sunway REIT's 1Q25 performance was driven by full-quarter contributions from assets acquired in 2024 and the successful refurbishment of the Oasis precinct at Sunway Pyramid Mall. The results were slightly above forecast, accounting for 27% of FY25E, while consensus' was in-line. Maybank IB said the outperformance was mainly due to lower-than-expected finance costs. The house maintains its forecast with a BUY call of MYR2.13 (Ke: 7%). SREIT remains Maybank IB's top pick in the M-REIT sector due to its robust retail performance and strong growth potential from recent acquisitions & AEIs. Strong growth led by retail segment 1Q25 core net profit (+20% YoY, +4% QoQ), primarily supported by 23% YoY rise in revenue. Retail NPI surged 34% YoY, driven by positive rental reversions and contributions from newly acquired assets, including S. 163 Mall, six hypermarkets, and Mall. Retail occupancy reached a record high of 99%, and the Oasis precinct at Mall achieved full occupancy, with rents doubling. However, hospitality revenue dropped 16% YoY, impacted by the Ramadan festivity, but this is expected to normalise from 2Q25. Office NPI also declined 11% YoY due to tenant relocations, though backfilling efforts are outlook; upside from Retail and Hospitality The house said it remaims optimistic on SREIT's outlook, supported by the full-year contributions from its recent acquisitions, ongoing AEIs such as phase 2 of Mall, and development projects at Sunway Pier. The industrial segment continues to provide stable income, while hospitality is expected to recover in 2Q25 with a pick-up in MICE activity and leisure demand. Management is actively addressing tenant cost pressures related to SST and focussing on tenant retention, particularly in the office segment, while maintaining a focus on high occupancy and scalable growth in retail. Earnings forecasts unchanged Maybank IB maintained it earnings forecast and believes finance cost will increase as asset acquisitions materialise in the coming quarters. The proposed disposal of the Sunway University and College campus (MYR613m) is targeted for completion in 2H25, subject to state approval, while the acquisition of AEON Mall Seri Manjung is expected to be completed by Aug Post-completion of both transactions, gearing is expected to stabilise at around 40% (1Q25: 42%) Related
The Star
15-05-2025
- The Star
Trading ideas: MN Holdings, VSTECS, Sunway REIT, Steel Hawk, Sapura Energy, Yinson
KUALA LUMPUR: Stocks likely to draw trading interest today due to their latest developments include MN Holdings Bhd , Vstecs Bhd , Sunway Real Estate Investment Trust (Sunway REIT), Steel Hawk Bhd , Sapura Energy Bhd , and Yinson Holdings Bhd . Sunway REIT reported a 20% increase in net property income (NPI), rising to RM157.2mil in the first quarter ended March 31, 2025 (1Q25) from RM130.5mil in 1Q24. It recorded a 23% year-on-year increase in revenue to RM218.9mil for 1Q25, compared to RM178.6mil in the year-ago quarter. MN's wholly owned subsidiary, Mutu Nusantara Sdn Bhd, has secured a RM37.9mil contract from a customer providing civil engineering and electrical works. Steel Hawk reported a net profit of RM8.2mil in the first quarter ended March 31 (1Q25), more than double the amount from the previous year. Revenue surged over 2.5 times to RM52.5mil. Sapura Energy is finalising a regularisation plan to exit its PN17 status, which includes a RM1.1bil fund-raising initiative, debt restructuring, and capital reconstruction. The plan aims to improve the company's financial and operational standing, with a focus on long-term sustainability and profitability. In 1Q25, VSTECS' net profit rose 24% to RM17.7mil, or earnings per share of 5.00 sen compared with RM14.3mil, or 4.00 sen in the year-ago quarter. Revenue for the quarter rose to RM691.7mil against RM616.4mil. Yinson has set the issue price for its dividend reinvestment plan shares at RM2.29, a 19.3% premium to the ex-dividend VWAP. The company also declared a final single-tier dividend of one sen per share for the financial year ending January 31, 2025.
The Star
15-05-2025
- The Star
Quick take: Sunway REIT rises after earnings meet expectations
KUALA LUMPUR: Sunway Real Estate Investment Trust (Sunway REIT) emerged as one of Bursa Malaysia's top gainers in early trade on Thursday after its latest quarterly financial results came in within expectations. The counter rose seven sen to RM2 at 9.47 am with 1.7 million shares done. Sunway REIT reported a 20% rise in net property income (NPI) to RM157.2mil and a 23% increase in revenue to RM218.9mil for the first quarter ended March 31, 2025 (1Q25) . Kenanga Research said Sunway REIT's 1Q25 results met expectations, with net profit rising 20% year-on-year (YoY), boosted by newly acquired retail assets and improved performance at Sunway Pyramid and Sunway Carnival following refurbishments. 'Sunway REIT's 1Q25 net profit makes up 24% and 25% of our full-year forecasts and full-year consensus estimates, respectively. No dividend was declared for the quarter as the group typically makes semi-annual dividend payments,' it said. Kenanga is also impressed by the rising rental income from the newly acquired 163 Mall, which boosted its NPI yield to around 9% on an annualised basis. The research house has maintained its earnings forecasts and 'Outperform' call, upgrading its target price from RM2.07 to RM2.11 (+2%) after rolling over the valuation base year to FY26F. Sunway REIT remains their sector top pick for 2QCY25. PublicInvest Research also said Sunway REIT's 1Q25 results were largely within both its and consensus expectations, with the group's profit making up about 25.8% of its full-year estimate and 25.2% of the consensus forecast. The research house makes no changes to its earnings estimates and maintains its target price of RM1.80, which implies a dividend yield of about 6%. Given the limited upside, it keeps a 'neutral' call on the stock.
