Latest news with #SunwayREIT
BusinessToday
15-05-2025
- Business
- 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
- Business
- 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
- Business
- 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.
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.
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.
