Sunway REIT’s 4Q NPI rises 19% to RM146m; declares five sen DPU

• This brings the full FY2022 DPU to 9.22 sen, totalling RM315.77 million. 

KUALA LUMPUR (Jan 30): Sunway Real Estate Investment Trust’s net property income (NPI) for the fourth quarter ended Dec 31, 2022 (4QFY2022) rose 18.8% to RM146.19 million from RM123.1 million a year ago, due to higher revenue and reversal of doubtful debts resulting from improved rental collection in the retail segment. 

Quarterly revenue increased by 18.34% to RM186.73 million compared to RM157.8 million, the REIT’s filing on Monday (Jan 30) showed. 

It declared a final income distribution per unit (DPU) of five sen, amounting to RM171.2 million. This brings the full FY2022 DPU to 9.22 sen, totalling RM315.77 million. 

Sunway REIT’s retail segment posted a revenue of RM116.73 million, 26% higher than the RM92.41 million previously, underpinned by higher retail footfall and encouraging retail sales during the festive season. The financial performance was further boosted by new income contribution from the Sunway Carnival Mall (new wing) which was launched on June 24 last year. 

In tandem with the increase in revenue, NPI for the retail segment increased to RM84.7 million, from RM65.76 million. 

Meanwhile, revenue for the hotel segment soared 107% to RM20.36 million from RM9.83 million, thanks to year-end holiday, and demand for meetings, incentives, conventions and exhibitions (MICE). NPI jumped to RM19.4 million from RM8.5 million. 

“The improved performance was led by higher lease rental from Sunway Resort Hotel and Sunway Pyramid Hotel, on the back of improvement in the average occupancy rate and MICE activities. 

“Sunway Resort Hotel has increased its available room inventory to 315 rooms (out of a total 460 rooms) as at Dec 31, 2022 and the hotel’s refurbishment is progressing towards full completion by 1Q2023,” said the REIT in a separate statement. 

For the full FY2022, Sunway REIT’s NPI grew 54.9% to RM500.24 million from RM322.98 million, as revenue rose 37.9% to RM651.45 million, from RM472.35 million. 

Sunway REIT is maintaining a positive outlook for FY2023, 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 the new wing and Sunway Resort hotel, said Datuk Jeffrey Ng, chief executive officer of Sunway REIT Management Sdn Bhd. 

Sunway REIT Management is the manager for Sunway REIT. 

“Although inflation has tapered in recent months, we are closely monitoring inflationary and interest rate trends. We strive to negate the impact of higher interest costs through dynamic capital management strategy and strive to achieve higher NPI from existing assets portfolio and/or new acquisitions.”

“Sunway REIT is actively pursuing acquisition opportunities and we aim to make headway on the acquisitions front, 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,” Ng added.