Sunway REIT’S retail and hotel segment boost 3Q earnings

SUNWAY Real Estate Investment Trust (Sunway REIT) net profit more than doubled to RM91.91 million in the third quarter ended Sept 30, 2022 (3Q22) from RM41.06 million a year ago 

Revenue increased 56% year-on-year (YoY) to RM166.2 million in 3Q22, from RM106.9 million in the same quarter of the preceding year, on the back of an overall improvement in business performance for all segments. 

“The improvement in revenue was substantially contributed by the Retail and Hotel segments,” it told the stock exchange today.

Net property income (NPI) surged 82% YoY to RM128.2 million in 3Q22, from RM70.5 million in the corresponding quarter of the preceding year.

Earnings per share jumped from 1.05 sen to 2.54 sen.

For the nine-month period to Sept 30, 2022, the REIT recorded a net profit of RM272.74 million on revenue of RM 464.71 million, up from a net profit of RM111.4 million and revenue of RM314.55 million in 9M’FY21.

NPI surged 77% YoY to RM354.1 million for 9M22, in comparison to RM199.9 million in the corresponding period of the preceding year. 

The group maintains an optimistic outlook for FY22, underpinned by strong growth in the retail segment, gradual recovery in the hotel segment, new income contribution from the new wing of Sunway Carnival Mall and resumption of income contribution from the phased reopening of Sunway Resort Hotel.

However, CEO Datuk Jeffrey Ng said the group is closely monitoring the macro-economic environment affecting economic growth, inflationary pressure, the pace of interest-rate hikes and its potential impact on Sunway REIT’s financial performance.

He said the manager proactively optimises its capital management strategy to minimise the impact of higher finance costs. In addition, the manager strives to increase the NPI moving forward to negate any adverse impact. 

“We remain steadfast to continue to create and unlock value for Sunway REIT’s assets portfolio in striving towards achieving the strategic goals of Transcend 2027”, he concluded. — TMR/pic by TMR