Latest news with #RM613
New Straits Times
15-05-2025
- Business
- New Straits Times
Sunway REIT earnings revised upwards on strong retail performance
KUALA LUMPUR: Analysts have revised upwards their earnings forecasts for Sunway Real Estate Investment Trust (REIT) following its first quarter results that came in within estimates. RHB Research said the company's earnings of RM98.6 million for the first quarter of 2025 (Q1 2025), an increase of 13 per cent year-on-year (YoY), were in line with expectations at 25 per cent of the firm's and street's estimates. The growth was mainly led by the newly acquired properties, namely the six Sunway REIT Hypermarkets, Sunway 163 Mall, and Sunway Kluang Mall, alongside stronger performance from Sunway Pyramid and Sunway Carnival Mall. This helped to offset slower performance in both the hospitality and office segments. Excluding the newly acquired properties, the retail segment's revenue grew 13 per cent YoY in Q1 2025 due to the asset enhancement initiatives (AEI) on Sunway Pyramid and Sunway Carnival Mall and higher occupancy rates. The firm raised its earnings forecasts for the company by two per cent for financial year 2025 (FY25) and three per cent for FY26 and FY27 after adjusting its occupancy rate and rental rate assumptions. It added that Sunway Carnival Mall's AEI should drive higher rental rates for the mall and there is room for organic growth from Sunway Pyramid with the full-year impact of the Oasis precinct, which was only opened in November 2024. RHB Research maintained a 'Buy' call on the stock with a target price (TP) of RM2.13. In a separate note, Hong Leong Investment Bank (HLIB) said Sunway REIT's core net profit exceeded the firm's estimates at 28 per cent of its full-year forecast as well as consensus estimates at 27 per cent. The firm raised its earnings forecasts for Sunway REIT by 8.4 per cent, 10.8 per cent and 11.4 per cent for FY25, FY26 and FY27, respectively, to account for the higher than expected rental reversion. "The retail segment performed better-than-expected and management now guides for high single-digit to low-teens reversion, supported by the full reopening of Sunway Carnival Mall in about a month. "Separately, management attributes the drop in hotel occupancy to softer demand for leisure and MICE activities during the Ramadan period. Nonetheless, we expect a recovery in the coming quarters, supported by the anticipated growth in tourist arrivals under the Visit Malaysia 2026 campaign and the mutual visa exemption between Malaysia and China," it said. HLIB kept its 'Buy' call on the stock with a higher TP of RM2.17. Meanwhile, CIMB Securities noted that Sunway REIT's borrowing costs grew 13 per cent YoY in the quarter under review, attributable to a higher average interest rate of 3.92 per cent and increased borrowings. On May 2, 2025, Sunway REIT announced the disposal of Sunway University and College to Sunway College (KL) Sdn Bhd for RM613 million. As of FY24, the asset accounted for 5.6 per cent of Sunway REIT's portfolio value and contributed 6.8 per cent to its net property income. "Targeted for completion in 2H25, the disposal is an opportunistic move to unlock asset value and is expected to generate a total gain of RM41 million. Proceeds will be utilised for yield-accretive investments, AEI, or debt repayment, which could lower gearing to 40 per cent," it added. It maintained 'Buy' on the stock with a TP of RM2.11.
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
New Straits Times
05-05-2025
- Business
- New Straits Times
HLIB: Sunway REIT's education asset sale frees up capital for future growth
KUALA LUMPUR: Sunway Real Estate Investment Trust's (Sunway REIT) RM613 million disposal of its education asset is expected to unlock capital for future acquisitions, according to Hong Leong Investment Bank Bhd (HLIB). "Overall, we are neutral on this disposal, although Sunway REIT is losing a high NPI yielding asset, the deal is able to help free its capital for future acquisitions," HLIB said in a research note. The sale of the Sunway University and college campus — fully cash-based and slated for completion in the second half of financial year 2025 (FY25) — was priced at a 4.6 per cent premium to its independently assessed fair value. HLIB noted the transaction came as a surprise, as the firm had not anticipated Sunway REIT to divest its education assets in the near term. The campus had contributed about 5.1 per cent of revenue and 6.9 per cent of NPI in FY2024. "By disposing the education asset, total asset value will drop circa 5.2 per cent, if the net proceeds were used to pay down debts," it said. According to Sunway REIT, the completion of the disposal, the net proceeds is intended for future yield accretive acquisitions. It also said in the event of no new acquisitions/AEIs within 12 months, the net proceeds will be used to pay down its outstanding debts and thus, gearing ratio is expected to drop to 38 per cent (from 41 per cent). HLIB believes this will allow Sunway REIT to have more capital/debt headroom to fund its future acquisitions such as Sunway Velocity (RM1 billion) in the pipeline. In summary, the firm is neutral on the disposal of its education asset. Although the deal is yield dilutive to Sunway REIT, HLIB said it will have a one off gain of RM21 million and also more capital to fund its future acquisitions, potentially reducing the dependency of equity funding for future acquisitions. "Following the disposal of its education asset and annual report update, we cut FY25/FY26 estimates by 2.5 per cent/5.7 per cent, respectively. Besides, we introduce FY27 forecasts." HLIB maintains a "Buy" call on Sunway REIT, albeit with a lower target price of RM2.00 (from RM2.04).
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.
New Straits Times
24-04-2025
- Entertainment
- New Straits Times
#SHOWBIZ: 7 production companies get Finas incentive
THE National Film Development Corporation (Finas) has awarded the Feature Film Screening Incentive 2.0 totaling RM613,702 to nine local films through seven qualifying companies. Its chief executive officer, Datuk Azmir Saifuddin Mutalib, said the incentive handover was made after all the films had been screened in cinemas through the Compulsory Screening Scheme. "The presentation of this incentive is intended to encourage local filmmakers to continue contributing their work to the development of the country's creative industry. "Through this incentive programme, Finas also provides about five per cent incentives for any local film that enters the Compulsory Screening Scheme based on ticket collections achieved in cinemas nationwide. "This is a Finas initiative so that local production companies can produce the next film to encourage producers to produce box office works with higher collections. "However, the constraints that are currently in place are the high entertainment duties. This incentive is also to reduce the burden on local producers," he said. The seven production companies that received the incentives were MIG Pictures Sdn Bhd, Fiesk Sdn Bhd, Scifilm Sdn Bhd, Hug Pictures Sdn Bhd, Empire Film Solution Sdn Bhd, Sistem Televisyen Malaysia Bhd and Mangkin Prestif Sdn Bhd. The nine films that are eligible for the incentive are 'Jangan Pandang Belakang: Aku Tahu Asal Usulmu', 'Takafur', 'This Land Of Mine', 'C 4 Cinta', 'Lubuk', 'Danum', 'Reeza', 'Papa' and 'Dajal: Satu Malam Dipedajal'.
