Latest news with #ClementChen
The Star
14-05-2025
- Business
- The Star
Sunway REIT posts 20% NPI growth in 1Q25
KUALA LUMPUR: Sunway Real Estate Investment Trust (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. Sunway REIT recorded a 23% year-on-year increase in revenue to RM218.9mil for 1Q25, compared to RM178.6mil in the year-ago quarter. The growth in revenue and NPI was largely driven by a full-quarter contribution from assets acquired in 2024, as well as the reopening of the Oasis precinct in Sunway Pyramid Mall on Nov 1, 2024. However, the overall performance was partially offset by softer results from the hotel segment, attributed to lower occupancy. The retail segment saw strong growth in 1Q25, with revenue rising 33% to RM168.4 mil and NPI increasing by 34% to RM116.8 mil, compared to RM126.3 mil and RM86.9mil, respectively, a year ago. Sunway REIT said the growth was primarily driven by contributions from assets acquired in 2024, namely Sunway 163 Mall, Sunway Kluang Mall and 6 Giant hypermarkets, and the completion of Sunway Pyramid Mall's Oasis precinct. In 1Q25, the hotel segment saw a 16% decline in revenue to RM16.1mil, down from RM19.1mil in Q24, mainly due to softer occupancy levels. NPI also decreased by 18%, falling to RM15mil from RM18.1 mil in the same period last year. Meanwhile, the office segment recorded a 4% decline in revenue to RM20.4mil in 1Q25, mainly due to lower occupancy at Sunway Putra Tower following the relocation of key tenants in 2Q24. NPI fell 11% to RM12.4mil from RM13.9mil in 1Q24, as Sunway Tower had benefited from a vacancy allowance during the same period last year. The services segment registered revenue and NPI of RM9.8mil for 1Q25, up 2% compared to 1Q24, following an annual rental reversion, in accordance with the master lease agreement. Industrial & others segment delivered a strong performance in 1Q25, with revenue jumping 83% to RM4.2 mil and NPI increasing 61% to RM3.2mil. Sunway REIT Management Sdn Bhd chief executive officer Clement Chen said Sunway REIT continued its strong growth trajectory in the first quarter of 2025. He noted that performance was driven by the full-quarter contribution from assets acquired in 2024, with both revenue and NPI recording increases of at least 20%. 'We are also excited to inform that the final phase of refurbishment at Sunway Carnival Mall has opened two months ahead of schedule on May 7, 2025, instead of in July 2025.' Chen said the completion of the final refurbishment phase was notable as it involved the largest number of tenants and was expected to further lift Sunway Carnival Mall's NPI in the coming quarters. It also marked the completion of a RM800mil, seven-year expansion and rejuvenation effort, firmly establishing the mall as a must-visit destination in mainland Penang. 'Looking ahead, we have strong conviction on Sunway REIT's performance in financial year 2025 driven by the early completion of Sunway Carnival Mall's refurbishment, improving occupancy at Sunway REIT Industrial – PJ1 which is aided by pivoting supply chains and the anticipated completion of the AEON Mall Seri Manjung acquisition in 3Q25,' he said. 'Nevertheless, Sunway REIT is mindful of the potential challenges posed by a volatile macro-economic environment including the possibility of a trade war, impending sales and service tax expansion and fuel subsidy rationalisation,' he added. Sunway REIT has recently proposed the disposal of the Sunway university & college campus for RM613mil with two main objectives. 'Firstly, we are able to de-gear and preserve balance sheet strength while providing us with a war chest to capitalise on opportunistic acquisitions when they arise. 'Secondly, it aligns with Sunway REIT's strategic asset recycling initiative to monetise capital gains and proactively redeploy capital into assets that offer higher yields, growth potential or stronger strategic alignment with our long-term objectives,' Chen said.
Malaysian Reserve
14-05-2025
- Business
- Malaysian Reserve
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
The Sun
04-05-2025
- Business
- The Sun
Sunway REIT proposes to dispose of university campus for RM613m
PETALING JAYA: Sunway REIT Management Sdn Bhd, the manager of Sunway Real Estate Investment Trust (Sunway REIT), announced that RHB Trustees Bhd, the trustee of Sunway REIT, has entered into a conditional sale and purchase agreement with Sunway College (KL) Sdn Bhd, to dispose of the Sunway University and College campus for a consideration of RM613 million. Acquired by Sunway REIT on April 15, 2019 for RM556 million, the REIT has spent additional capital expenditure of RM8 million over the years to refurbish and enhance the asset. Accordingly, the campus has since appreciated in value with the latest valuation of the property as of December 2024 being RM586 million, translating to fair value gains of RM20 million for Sunway REIT over the years. The disposal price of RM613 million represents a premium of 4.6% over its latest valuation and Sunway REIT will record additional gains on disposal of RM21 million (including estimated incidental costs on disposal) in its current financial year upon the completion of the transaction, which is expected to be in the second half of 2025. The proposed disposal forms part of Sunway REIT's strategic asset recycling initiative aimed at optimising portfolio yield and unlocking capital for future growth. This move is expected to be positive for unitholders by enhancing financial flexibility and enabling Sunway REIT to explore new investment opportunities with higher yields. Additionally, it will help ease Sunway REIT's gearing position to approximately 37.8%, allowing Sunway REIT to explore further portfolio acquisitions. Sunway REIT Management Sdn Bhd CEO Clement Chen said, 'The proposed disposal aligns with our proactive portfolio management strategy to unlock the underlying value of our assets and recycle capital into investments with higher yield or growth potential. Coupled with the current uncertainties in the global economy, we believe the proposed disposal is a timely and prudent step to firstly, strengthen our balance sheet and secondly, to give Sunway REIT substantial financial flexibility in pursuing acquisition opportunities should they arise in such volatile times.' Proceeds from the disposal have been earmarked for potential acquisitions, asset enhancements, and debt repayment, reinforcing Sunway REIT's commitment to maintaining a resilient and diversified portfolio.
