I think REITs should be something we can consider if we have not really saved enough for a home and yet really think property investment is the way to go. As for which REIT is the best, seriously read about them more before buying. Look at their typical returns. Look at the properties that they are managing. Visit those places. Buying REITs require some understanding about the occupancy rate for example. For more information on REITs, here’s one good site. Complete Guide to REITs by dividendmagic.com.my Below happens to be a press release from Sunway REIT. Read on. Cheers.
Press Release by Sunway REIT
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FINANCIAL RESULTS ANNOUNCEMENT
SUNWAY REIT STARTED THE NEW FINANCIAL YEAR ON A FIRMER GROUND
o Revenue increased by 9.5% year-on-year to RM141.2 million mainly contributed by higher revenue across all segments.
o Proposed DPU increased by 17.6% year-on-year to 2.67 sen.
o Unitholders approved the proposed acquisition of Sunway Clio Property on 25 October 2017
|FYE June 2018||Current Quarter / Cumulative Quarter|
|Net property income (NPI)||110,986||96,065||15.5|
|Net realised income||78,736||66,732||18.0|
|Total profit for the period||79,229||64,143||23.5|
|Proposed / declared distribution||78,634||66,853||17.6|
|Distribution per unit (DPU) (sen)||2.67||2.27||17.6|
|Annualised distribution yield (based on unit price of RM1.72 per unit on 30 September 2017)||6.2%||5.2%1||N.A.|
1 Based on actual DPU of 9.19 sen declared in FY2017 and unit price of RM1.78 as at 30 June 2017.
N.A. denotes not applicable
Sunway City, 31 October 2017 – Sunway REIT Management Sdn. Bhd., the Manager of Sunway
Real Estate Investment Trust (Sunway REIT), is pleased to announce its financial results for the period
ended 30 September 2017.
First quarter unaudited financial results for the period from 1 July 2017
to 30 September 2017 (1Q FY2018)
Sunway REIT started the financial year with an encouraging set of financial earnings in the first quarter
of financial year ending 30 June 2018. Revenue increased by 9.5% year-on-year (y-o-y) to
RM141.2 million, mainly contributed by higher revenue across all segments. Net property income (NPI)
expanded at a stronger rate of 15.5% y-o-y to RM111.0 million on the back of higher revenue and
lower property operating expenses.
The retail segment recorded a healthy growth in revenue and NPI underpinned by high average
occupancy rates for all retail malls in the stable of asset portfolio, mainly due to higher average gross
rent for Sunway Pyramid Shopping Mall. Revenue rose to RM103.6 million for the quarter ended
30 September 2017. In comparison to the corresponding quarter in the preceding year, revenue
improved by 3.9%. NPI increased by a higher quantum of 9.4% in 1Q FY2018 to RM78.3 million
on the back of higher revenue and lower property operating cost.
The hotel segment reported a stronger financial performance for the quarter ended 30
September 2017. Revenue and NPI increased by 40.9% y-o-y and 43.7% y-o-y in 1Q FY2018,
primarily attributable to full resumption of operation at Sunway Pyramid Hotel following the
completion of its refurbishment in June 2017. In addition, Sunway Putra Hotel enjoyed higher
average occupancy and average daily rates during the quarter, benefitted from higher
demand from the SEA Games 2017 and ASEAN Para Games 2017 held in August and
Meanwhile, the office segment reported a revenue and NPI growth of 8.1% y-o-y and
8.5% y-o-y respectively, largely attributable to higher average occupancy rates at
Menara Sunway and Sunway Putra Tower.
For the quarter ended 30 September 2017, the Manager proposed a DPU of 2.67 sen,
representing an increase of 17.6% compared to the corresponding quarter in the
Dato’ Jeffrey Ng, CEO of Sunway REIT Management Sdn. Bhd., commented,
“I am pleased to share the encouraging sets of financial earnings which is in line
with our expectation of a firmer year in FY2018. We are confident that the asset
enhancement initiatives (AEIs) which we had undertaken in the last several years
are showing encouraging progress in performance despite the continuous challenges
affecting the property market / sub-sectors.”
Sunway REIT announced the proposed acquisition of the mixed-use
Sunway Clio Property comprising a 4-star hotel, a retail podium and car park bays
for a purchase consideration of RM340 million on 3 August 2017. Upon completion
of the acquisition expected in 3Q FY2018, Sunway REIT’s combined property value
will increase to RM7.12 billion, achieving our target of RM7.0 billion. The proposed
acquisition of Sunway Clio Property was approved by unitholders at the Unitholders’
Meeting held on 25 October 2017.
Sharing on the prospect of Sunway REIT, Dato’ Jeffrey further commented “Barring
any unforeseen circumstances, we expect Sunway REIT’s DPU to grow moderately
in FY2018 supported by moderate growth in the retail segment, resumption in income
contribution from Sunway Pyramid Hotel following the full completion of its refurbishment
in June 2017 and gradual improvement in the overall occupancy of the office segment.
In addition, we expect new income contribution from the recent acquisitions to contribute
positively to the DPU in FY2018 and beyond.”
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