KUALA LUMPUR: Sunway Real Estate Investment Trust (REIT) reported a decline in net profit to RM86.98 million in the first quarter ended 31 March 2024 (1Q24) compared to RM96. 46 million last year.
Revenue also decreased by 2% to RM178.59 million from RM182.80 million previously.
In a separate statement, Sunway REIT attributed the revenue contraction primarily to a lower contribution from the services segment following the cessation of rental income from Sunway Medical Centre (Tower A and B), which was disposed of in 3Q23.
However, this decline was offset by improved performance in the hotel, office, industrial and other segments.
SunReit Management Sdn Bhd Chief Executive Officer Clement Chen said the acquisition of 6 hypermarkets, 5 within Klang Valley and one in Johor, for RM520 million which was completed on 30 April 2024.
“Based on the initial yield of approximately 8% from the purchase consideration, the rental income will more than compensate for the void in earnings resulting from the disposal of Sunway Medical Centre (Tower A and B), thereby boosting property income (NPI) for the remaining year,” he said.
With this acquisition, Sunway REIT expanded its asset portfolio to 25 properties, including an inaugural property in Johor and now manages assets worth RM9.5 billion.
“This solidifies our position as the 2nd largest REIT in Malaysia, measured by assets under management,” he added.
Looking ahead, Chen expressed cautious optimism for 2024, citing the resilient performance of the retail segment and the steady recovery of tourist arrivals.
“Furthermore, we anticipate unlocking additional NPI potential upon the completion of our proposed acquisitions and ongoing asset enhancement initiatives in Sunway Pyramid Mall, scheduled for completion in the 2nd half of 2024,” he commented.
— BERNAMA
