Sunway REIT tripled 4Q net profit to RM51m

SUNWAY Real Estate Investment Trust’s (Sunway REIT) net profit for the fourth quarter ended Dec 31, 2022 (4Q22), more than tripled to RM50.82 million from RM16.19 million a year ago.

Correspondingly, net property income (NPI) increased 19% year-on-year to RM146.2 million in 4Q22 compared to RM123.1 million in the same quarter in the previous year due to higher revenue and reversal of doubtful debts.

Revenue in the same period improved by 18.3%to RM186.72 million from RM157.8 million in the previous comparative quarter.

It declared a final income distribution per unit (DPU) of five sen, amounting to RM171.2 million. This brings the full FY22 DPU to 9.22 sen, totalling RM315.77 million.

For the 12 months period, Sunway REIT posted a net profit of RM323.56 million, a 153% improvement over the previous year, on the back of a 37.92% increase in revenue to RM651.45 million.

NPI for the full FY22 jumped 54.9% to RM500.24 million from RM322.98 million.

Sunway REIT CEO Datuk Jeffrey Ng said as a result of the improved financial performance and cash flow, Sunway REIT has increased its income distribution payout to 100% in 4Q22 and endeavour to maintain an income distribution payout of 100% in FY23.

Commenting on the outlook, he added, “Sunway REIT maintains a positive outlook for FY23, underpinned by stable domestic economic growth, sustained growth momentum for the Retail segment, further recovery in the hotel segment as well as full-year income contribution from Sunway Carnival Mall (New Wing) and Sunway Resort Hotel.”

He further added that although inflation has tapered in recent months, it is closely monitoring inflationary and interest rate trends.

“Sunway REIT is actively pursuing acquisition opportunities and we aim to make headway on the acquisitions front in this financial year. Sunway REIT’s healthy gearing of 37.6% and debt headroom of approximately RM1.2 billion will enable us to fund yield accretive acquisitions,” he concluded. — TMR/pic by TMR