Latest news with #SunwayRealEstateInvestmentTrust
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.
New Straits Times
14-05-2025
- Business
- New Straits Times
Sunway Reit posts higher Q1 net profit of RM104.32mil
KUALA LUMPUR: Sunway Real Estate Investment Trust (REIT) recorded a higher net profit of RM104.32 million for the first quarter of 2025 (1Q 2025) ended March 31, 2025, compared to RM86.98 million in the same quarter a year ago. The company said in a filing with Bursa Malaysia today that revenue for the quarter rose to RM218.86 million from RM178.59 million in the corresponding quarter last year, primarily driven by a full-quarter income contribution from newly acquired properties in 2024. The increase, however, was partially offset by lower interest income of RM3.3 million due to reduced cash balances, and higher finance costs of RM4.9 million following increased borrowings. Touching on the outlook, Sunway REIT said that while the first quarter of 2025 remained positive for the group, it remains cautious moving forward due to the disruptive tariff barrier imposed by the United States, which carry risks of heightened inflationary pressures, weakened business sentiment and reduced consumer confidence. "We will continue to monitor the market closely in response and will intensify efforts to diversify our tenant mix to include more regional and local brands, and to increase focus on domestic and regional travellers "We believe acquisition opportunities will continue to prevail and the group stands ready for any opportunistic acquisitions to diversify and expand our portfolio mix, especially in the retail, logistics and services sectors," the company said.
Barnama
14-05-2025
- Business
- Barnama
Sunway REIT Posts Higher 1Q Net Profit Of RM104.32 Mln
KUALA LUMPUR, May 14 (Bernama) -- Sunway Real Estate Investment Trust (REIT) recorded a higher net profit of RM104.32 million for the first quarter of 2025 (1Q 2025) ended March 31, 2025, compared to RM86.98 million in the same quarter a year ago. The company said in a filing with Bursa Malaysia today that revenue for the quarter rose to RM218.86 million from RM178.59 million in the corresponding quarter last year, primarily driven by a full-quarter income contribution from newly acquired properties in 2024. The increase, however, was partially offset by lower interest income of RM3.3 million due to reduced cash balances, and higher finance costs of RM4.9 million following increased borrowings.
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).
