Sunway REIT expects growth to improve in FY2022
Sunway City Kuala Lumpur, 28 January 2022 – Dato Jeffrey Ng, CEO of Sunway Real Estate Invst Trust, says, some of the company’s business has seen 100% normalcy, reaching pre-pandemic levels.
“It is heartening to observe that retail footfall and retail sales for Sunway REIT have returned to 100% normalcy towards the end of 6Q FP2021 with the continuation of the momentum equally observed this month, in comparison to the pre-pandemic levels in 2019.”
He adds, “Sunway REIT expects the business performance to improve in FY2022, supported by reopening of all economic sectors, healthy economic growth, positive progress in booster vaccination rate, re-opening of Sunway Resort Hotel and new income contribution from the completed expansion of Sunway Carnival Shopping Mall.”
Jeffrey further says, “Sunway REIT is well positioned to capitalise on acquisition opportunities that may present to expand its asset portfolio in line with the medium-term growth plan.”
Sunway REIT Management Sdn Bhd, the Manager of Sunway Real Estate Investment Trust (Sunway REIT), today released its financial results for the financial period ended December 2021 31.
Key Highlights:
- Gross revenue jumped 64.8% in 6Q FP2021, compared to 2Q FP2021, contributed by higher gross revenue from all segments and recognition of unrealised unbilled lease income receivable.
- Retail footfall and retail sales for Sunway REIT have returned to 100% normalcy towards the end of 6Q FP2021, in comparison to the pre-pandemic levels in 2019.
- Sunway REIT expects the business performance to improve in FY2022, supported by the reopening of all economic sectors, healthy economic growth, positive progress in booster vaccination rate, re-opening of Sunway Resort Hotel and new income contribution from the completion of expansion for Sunway Carnival Shopping Mall.
Sixth quarter unaudited financial results for the period from October 1, 2021 to December 31, 2021 (6Q FP2021)
*The current reporting quarter (6Q FP2021) is a period of 3 months, made up from 1 October 2021 to 31 December 2021. The figures for the same period last year (2Q FP2021), made up from 1 October 2020 to 31 December 2020, are used for comparison purposes.
Sunway REIT reported 64.8% jump in gross revenue to RM157.8 million in 6Q FP2021, from RM95.8 million in 2Q FP2021, contributed by higher gross revenue from all segments and recognition of unrealised unbilled lease income receivable of RM19.6 million under Malaysian Financial Reporting Standard (MFRS) 16 Leases. Excluding the unrealised unbilled lease income receivable, gross revenue rose 44.3% in 6Q FP2021 compared to 2Q FP2021. Correspondingly, net property income (NPI) increased 86.5% in 6Q FP2021, compared to 2Q FP2021, to RM123.1 million. Realised income more than doubled to RM72.7 million for the quarter under review.
For the quarter under review, gross revenue for the Retail segment rose 62.7% to RM92.4 million, compared to RM56.8 million in 2Q FP2021. The improved financial performance was attributed to encouraging recovery in the retail footfall and retail sales pursuant to the easing of movement restrictions compared to operating under the conditional movement control order (CMCO) in the same period last year. Retail footfall and retail sales have returned to normalcy compared to pre-COVID-19 towards the end of 6Q FP2021. NPI jumped almost two-fold to RM65.8 million in 6Q FP2021 compared to RM33.9 million in the same period last year.
The Hotel segment recorded gross revenue RM9.8 million in 6Q FP2021, an increase of 24.0% compared to the corresponding quarter in the preceding year. The better performance was attributed to the lifting of inter-state travelling and gradual resumption of meetings, incentives, conferences and exhibitions (MICE). NPI for the Hotel segment rose 28.3% to RM8.5 million in 6Q FP2021, from RM6.6 million in the same quarter last year.
Gross revenue for the Office segment surged 31.4% to RM19.1 million in 6Q FP2021, from RM14.5 million in the corresponding period in the preceding year. NPI improved 38.2% to RM12.4 million in 6Q FP2021, from RM9.0 million in the same period last year, boosted by full income contribution from The Pinnacle Sunway and largely stable average occupancy rate across all office properties in Sunway REIT’s asset portfolio.
For the quarter under review, gross revenue and NPI for the Services segment edged up 2.3% to RM15.3 million compared to 2Q FP2021, attributed to annual rental reversion of Sunway Medical Centre (Tower A & B) and Sunway university & college campus. Meanwhile, gross revenue and NPI for the Industrial & Others segment remained stable at RM1.5 million in 6Q FP2021. University
Financial Highlights
| Current Quarter | Cumulative Period | |||
| 3-month period ended 31.12.2021 | 3-month period ended 31.12.2020 | Change | FP20211 | |
| RM’000 | RM’000 | % | RM’000 | |
| Gross revenue 2 | 157,797 | 95,770 | 64.8% | 675,558 |
| Net property income (NPI)2 | 123,097 | 66,012 | 86.5% | 457,076 |
| Income attributable to: | ||||
| – Unitholders | 67,649 | 28,454 | >100.0% | 221,907 |
| – Perpetual note holders | 5,014 | 5,014 | 0.0% | 29,917 |
| Realised income | 72,663 | 33,468 | >100.0% | 251,824 |
| Unrealised income / (loss) | (56,470) | 28 | >-100.0% | (56,340) |
| Total profit for the period | 16,193 | 33,496 | -51.7% | 195,484 |
| Proposed / declared distribution to unitholders | 95,895 | 26,371 | >100.0% | 204,596 |
| Distribution per unit (DPU) (sen) | 2.80 | 0.77 | >100.0% | 6.10 |
- Sunway REIT has changed its financial year end from 30 June to 31 December. The current cumulative financial period is for a period of 18 months from 1 July 2020 to 31 December 2021 (FP2021). As such, there are no comparative figures for the preceding year corresponding period.
- Included recognition of unrealised unbilled lease income receivable of RM19.6 million for Sunway university and college campus which represents incremental lease income on a straight-line basis over the lease period pursuant to MFRS 16 Leases.
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