Press Release – Sunway REIT started new financial year on a firmer ground

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 

— start —

FINANCIAL RESULTS ANNOUNCEMENT

SUNWAY REIT STARTED THE NEW FINANCIAL YEAR ON A FIRMER GROUND

 Key Highlights:

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

Financial Highlights

FYE June 2018 Current Quarter / Cumulative Quarter
1Q2018 1Q2017  Change
RM’000 RM’000 %
Gross revenue 141,169 128,879 9.5
Net property income (NPI) 110,986 96,065 15.5
Net realised income 78,736 66,732 18.0
Unrealised income 493 -2,589 >100.0
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

September respectively.

 

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

preceding year.

 

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.”

 

— end —

Next suggested article: Cheras’ latest hotel with LRT, MRTs and shopping? Sunway Velocity Mall

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