Sunway REIT 2Q NPI up 12%, declares 2.45 sen DPU

KUALA LUMPUR: Sunway Real Estate Investment Trust’s (REIT) net property income (NPI) grew almost 12% to RM116.62 million for the second quarter ended Dec 31, 2019 (2QFY20) from RM104.23 million a year ago, thanks to a higher revenue.

Its quarterly revenue expanded 11.7% to RM155.8 million from RM139.5 million, according to a filing with Bursa Malaysia yesterday.

The REIT attributed its higher revenue to new income contribution from the newly acquired Sunway University and College campus and improved performance across all segments.

Net realised income for 2QFY20 was up 8.6% to RM72.15 million from RM66.43 million last year.

The group also declared an income distribution per unit (DPU) of 2.45 sen for the financial year ending June 30, 2020 (FY20), which is to be paid on March 12.

For the six-month period (1HFY20), Sunway REIT saw its NPI rising 9.8% to RM235.69 million from RM214.74 million last year, while revenue was up nearly 10% to RM311.15 million from RM283.24 million.

Net realised income for the six months grew 4.6% to RM145.87 million from RM139.41 million.

As at Dec 31, 2019, Sunway REIT’s property value grew to RM8.08 billion from RM7.35 billion a year ago, while its number of properties rose to 17 from 16.

“We are pleased to announce that Sunway REIT has delivered a healthy growth in DPU to unitholders for 1HFY20. This was achieved on the back of our growth strategy to continuously expand our income stream through acquisitions and active asset management initiatives,” said Sunway REIT Management Sdn Bhd chief executive officer Datuk Jeffrey Ng in a separate statement yesterday.

On prospects, he said Sunway REIT expects the DPU for FY20 to be supported by a full-year income contribution from the newly acquired Sunway University and College campus, stable contributions across all sectors and a favourable interest rate environment.

“That said, the manager is cautious and we are closely monitoring the development of [Covid-19] which may have implications on our business if the pandemic persists over a longer period,” he said, adding that the manager has activated operational precautionary measures to ensure the cleanliness and hygiene of the premises in the immediate term.

Sunway REIT’s unit price went up three sen or 1.62% to RM1.88 yesterday, valuing the trust at RM5.54 billion.

Source: TheEdgeMarkets