Sunway REIT Reports Second Quarter Gross Revenue of RM 95.8 Million



KUALA LUMPUR (Bern) – Sunway Real Estate Investment Trust (SUNREIT) reported lower gross revenue of RM95.8 million for the second quarter ended December 31, 2020 (2T FP2021) compared to RM155.8 million for the corresponding quarter of the previous year (2T FY2020).

In a filing today with Bursa Malaysia, Sunway REIT Management Sdn Bhd, the director of SUNREIT, said that net property income (NPI) had declined to RM66.0 million from RM116.6 million. RM due to the uncertainty and challenges brought on by the COVID-19 pandemic.

During the quarter under review, the recovery of the Retail and Hotel segments was impacted following the reestablishment of the conditional movement control order (CMCO) in various states across the country amid the resurgence of COVID-19 cases, a he declared.

Retail segment gross revenue for the quarter under review was RM 56.8 million, compared to RM 106.7 million in 2Q FY2020, attributable to the implementation of CMCO in October 2020 which had blocked attendance and resumption of sales at 2T FP2021.

Along with this, the retail segment recorded an NPI of RM 33.9 million, compared to RM 74.0 million in the second quarter of fiscal 2020.

The hotels in Sunway REIT’s asset portfolio collectively posted gross revenue of RM 7.9 million in 2T FP2021, compared to RM 22.6 million in 2T CY2020 due to ongoing international travel restrictions, limited domestic travel activities and a feeling of cautiousness in light of the increase in daily cases of COVID.

Meanwhile, the office segment recorded a 40.0% increase in gross revenue to RM14.5 million thanks to the new contribution to revenue from the acquisition of The Pinnacle Sunway, which was completed in November 2020, as well as a stable office occupancy rate.

For the services segment, gross revenue and NPI grew 2.8% year-on-year to RM 15.0 million, driven by the annual reversion in rents at Sunway Medical Center and University Campus and Sunway College.

Industrial segment gross revenue and NPI and others remained stable at RM 1.5 million.

Despite the difficult operating environment, Sunway REIT has maintained an income payout ratio of at least 90 percent of distributable income amounting to RM26.4 million or a distribution per unit (DPU) of 0, 77 sen at 2T FP2021.

“Following the surge in COVID-19 cases and the recovery of OLS on January 13, 2021, we continue to maintain a cautious near-term outlook,” said Sunway REIT CEO Datuk Jeffrey Ng.

With the imminent deployment of the vaccine, he said the COVID containment effort would likely be more effective, barring unforeseen circumstances.

Regarding the prudent capital management strategy, he said that Sunway REIT’s current indebtedness of 37.4%, which is well below the new limit of 60% until December 2022 set by the Commission securities, has played an important role in allowing it to be flexible in its portfolio and asset expansion strategy.



Comments are closed.