Latest news with #SunwayRealEstateInvestmentTrust
The Star
6 days ago
- Business
- 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
7 days ago
- Business
- 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
New Straits Times
7 days ago
- Business
- New Straits Times
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 (2Q25), down from RM145.07 million year-on-year. However, its revenue increased to RM211.40 million in 2Q25 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 2Q25, 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 2Q25, 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.
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.
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.
