SUNWAY REIT'S NET PROFIT JUMPS TO RM323.56 MLN IN FY2022

KUALA LUMPUR, Jan 30 (Bernama) -- Sunway Reit Management Sdn Bhd, the manager of Sunway Real Estate Investment Trust (Sunway Reit), saw its net profit surging to RM323.56 million for the financial year ended Dec 31, 2022 (FY2022) from RM127.59 million a year earlier, underpinned mainly by higher contribution from all segments.

Revenue for FY2022 increased to RM651.45 million from RM472.35 million.

In a statement today, Sunway Reit said its financial performance was further buoyed by new income contributions from Sunway Carnival Mall’s new wing and the resumption of lease rental from Sunway Resort Hotel as the hotel reopened in phases beginning May 2022. 

Chief executive officer Datuk Jeffrey Ng said the manager’s financial performance in FY2022 has surpassed the pre-pandemic level of FY2019.

“As a result of the improved financial performance and cash flow, Sunway Reit has increased its income distribution payout to 100 per cent in the fourth quarter of 2022, and endeavours to maintain an income distribution payout of 100 per cent in FY2023,” he said.

For FY2022, Sunway Reit’s retail segment recorded a jump in revenue to RM426.9 million from RM269.5 million, representing a growth of 58 per cent.

It said the growth was driven by a significant reduction in rental rebate, higher turnover rent, promotion and car park income as retail footfall and retail sales returned to normalcy. 

“The hotel segment has demonstrated encouraging recovery signs as business and leisure activities picked up during the year with revenue and net property income (NPI) leaping 62 per cent year-on-year (y-o-y) and 83 per cent y-o-y to RM63.3 million and RM59.4 million, respectively,” it said.

Meanwhile, the office segment remained stable in FY2022, with revenue growing 4.0 per cent y-o-y to RM79.3 million, from RM76.6 million in the preceding year, while NPI was marginally higher at RM51.8 million. 

Sunway Reit also announced a final income distribution of 5.00 sen per unit for FY2022.

On the outlook for FY2023, Ng said Sunway Reit maintained a positive outlook, underpinned by stable domestic economic growth, sustained growth momentum for the retail segment, further recovery in the hotel segment, as well as full-year income contribution from Sunway Carnival Mall (new wing) and Sunway Resort Hotel. 

“Although inflation has tapered in recent months, we are closely monitoring inflationary and interest rate trends.

“We strive to negate the impact of higher interest costs through dynamic capital management strategy and strive to achieve higher NPI from existing assets portfolio and new acquisitions,” he noted.

Ng said Sunway Reit has been actively pursuing acquisition opportunities and expects to make headway on the acquisitions front in FY2023.

“Sunway Reit’s healthy gearing of 37.6 per cent and debt headroom of approximately RM1.2 billion will enable it to fund yield accretive acquisitions,” he said.

-- BERNAMA