Dividend yield for REIT? Sunway REIT’s at 5.5 percent

sunwayReitFirst of all, I do not own a single unit of Sunway Real Estate Investment Trust (REIT). However, I have always believed that if we want to enter the property market but we are worried with volatility, REITs provide that opportunity. If I tell you that a property related stock has a dividend yield of 5.5 percent and that this stock is pretty stable, would you be thinking of buying some units and ride out the current market? Well, if the answer is Yes, then take a look at the image on the left. This is Sunway REIT’s latest announced results which was sent to all medias yesterday. Please be reminded that no one can predict the future results.

Do read about the assets under this REIT. Visit the assets, for example the malls or even the office towers and understand if these real estate assets are those that you would love to invest but yet could not afford. Many times, just by looking at the asset list, we would already be able to gauge if the REIT will be successful for may more years. As we know, even for shopping malls, there are the successful ones and there are many failed ones too.

Some other key highlights include:

o Revenue and net property income rose by 11.8% and 9.7% year-on-year respectively for FY2016

o DPU increased by 5.2% to 9.18 sen for FY2016, from 8.73 sen last year

o The Securities Commission has granted the waiver for the proposed land acquisition in Seberang Jaya, Mainland of Penang

You can refer to their site for the full article but the following would be some information for Sunway REIT

Sunway Real Estate Investment Trust (Sunway REIT or Trust) is one of the largest retail-focused3 real estate investment trusts (REITs) in Malaysia with a diverse portfolio strategically located across award-winning integrated townships in key locations in Greater Kuala Lumpur, Penang, and Perak.

Sunway REIT was listed on the Main Market of Bursa Malaysia Securities Berhad (Bursa Malaysia) on 8 July 2010. The market capitalisation of Sunway REIT stood at RM4.9 billion as at 30 June 2016. Sunway REIT is a component of FTSE-Bursa Malaysia Mid 70 Index, FTSE4 Good Index and TR/GPR/APREA Composite REIT Index Malaysia. Sunway REIT owns a portfolio of 14 assets comprising 4 retail malls, 5 hotels, 4 offices and a medical centre. Property value stood at RM6.43 billion as at 30 June 2016.

Sunway REIT’s assets are primarily located in Sunway Resort City (SRC) where its flagship asset, Sunway Pyramid Shopping Mall, is located. The other assets located in SRC include Sunway Resort Hotel & Spa, Sunway Pyramid Hotel East (formerly known as Pyramid Tower East), Menara Sunway and Sunway Medical Centre. On the northern Peninsular of Malaysia, Sunway REIT owns SunCity Ipoh Hypermarket in Perak. On the mainland of Penang, Sunway REITs owns Sunway Hotel Seberang Jaya and Sunway Carnival Shopping Mall. In FY2015, Sunway REIT added two assets into the portfolio, namely Wisma Sunway in Shah Alam, Selangor and Sunway Hotel Georgetown, marking its maiden foray into Penang Island.

Sunway REIT owns four properties in in Kuala Lumpur, namely Sunway Tower and the remaining three assets which constitute part of the 3-in-1 integrated development, Sunway Putra (formerly known as Sunway Putra Place). Sunway Putra consists of Sunway Putra Mall, Sunway Putra Hotel and Sunway Putra Tower.

3 Retail-focused is defined as at least 60% contribution from the retail assets to property value, revenue or NPI.

written on 11 Aug 2016

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