Sunway REIT 2Q net profit 122% higher at RM74.51 mil

KUALA LUMPUR (Aug 18): Sunway Real Estate Investment Trust’s (Sunway REIT) net profit widened to RM74.51 million in the second quarter ended June 30, 2022 (Q2 FY2022) from RM33.52 million a year earlier contributed mainly by the sharp improvement in the retail segment.

Revenue increased to RM144.51 million from RM103.39 million previously, it said in a filing with Bursa Malaysia on Thursday.

Sunway REIT said revenue from its retail segment jumped 73%, or RM42.8 million, to RM101.4 million due to the overall improved performance across its retail properties, but primarily from the increase of Sunway Pyramid Mall revenue by RM38.2 million, which almost doubled its revenue for 2Q FY2021 of RM40.3 million.

The mall saw encouraging tenant sales in 2Q due to strong pent-up demand, Raya festive spending and relaxation of Covid-19 safety measures.

The net property income (NPI) of the retail segment rose by RM46.1 million to RM71.6 million.

The office segment recorded revenue of RM19.7 million, a marginal increase of 2% or RM0.5 million supported by a stable occupancy rate of 84%, while the industrial and other segments, comprising Sunway REIT Industrial — Shah Alam 1, delivered revenue and NPI of RM1.7 million, up by 10%.

It said the hotel segment recorded improvements in average occupancy rates for the quarter under review following the transition to the endemic phase.

Despite the improvement in operational performance, the hotel segment reported revenue of RM6 million in 2Q FY2022, lower by 31% against RM8.7 million previously, primarily due to recognition of minimum guaranteed rent for Sunway Putra Hotel in 2Q FY2021, which has since ceased.

Sunway REIT is optimistic about FY2022, underpinned by strong growth in the retail segment due to the low base from last year and significant decline in rental support.

"The outlook is further supported by a 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 re-opening of Sunway Resort, formerly known as Sunway Resort Hotel," it added.