by FARA AISYAH/ pic credit: Sunway REIT
SUNWAY Real Estate Investment Trust (REIT) fell into the red in the fourth quarter ended June 30, 2020 (4Q20), with a RM13.48 million net loss compared to earnings of RM178.01 million made last year, due to the impact of the Covid-19 pandemic.
Quarterly revenue fell 27.7% to RM104.93 million from RM145.56 million in April to June 2020, the REIT’s manager Sunway REIT Management Sdn Bhd said in a statement yesterday.
Net property income (NPI) declined 30.2% to RM77.61 million in 4Q20 from RM111.18 million last year, due to business disruptions caused by various phases of the Movement Control Order (MCO) and rental support provided to the retail tenant and hotel lessees.
Sunway REIT added that its retail segment experienced shrinkage in revenue and NPI by 48.9% and 58.4% respectively, in the quarter.
Meanwhile, revenue for the hotel segment tumbled 53.3% year-on-year (YoY) to RM7 million, with a corresponding 57.8% YoY decline in NPI to RM5.6 million. For the full year ended June 30, 2020 (FY20), the trust’s earnings decreased 46.1% to RM208.21 million from RM386.37 million in the previous year, while revenue dipped 4% YoY to RM556.88 million from RM580.3 million in FY19.
NPI for the year was 5.2% lower at RM416.81 million against RM439.7 million in FY19, as the retail and hotel segments were impacted by the pandemic and the MCO in the second half of the year (2H20).
The REIT has proposed a final distribution per unit (DPU) of 2.38 sen for 2H20, bringing total DPU to 7.33 sen for FY20.
Sunway REIT Management CEO Datuk Jeffrey Ng said the trust is maintaining a cautious outlook in FY21 due to the uncertainties surrounding global economic recovery.
It will focus on rebuilding the business segments that have been adversely impacted by the pandemic, while strengthening its balance sheet and expanding its income stream.
“In times of uncertainties, we have implemented prudent cost management and cash conservation initiatives as preemptive measures to ensure sufficient flexibility in our liquidity management.
“As part of the cash conservation initiative, we are in the process of establishing a Distribution Reinvestment Scheme to provide the additional flexibility to unitholders to receive future income distribution in cash, units or a combination of both,” Ng said in a statement yesterday.
“We are seeing an encouraging recovery in footfall to our malls since the Recovery MCO,” he added.