Opening Of All Economic Sectors To Bolster Sunway REIT’s Gradual Recovery

Sunway REIT Management Sdn Bhd anticipates a gradual recovery in FY2022 on the back of full reopening of all economic sectors, healthy economic growth, and positive progress in booster vaccination rate, its chief executive officer Dato Jeffry Ng Tiong Lip said in the integrated 2021 annual report.

He said that the retail segment has exhibited encouraging improvement in retail footfalls and retail sales, which were boosted by festive seasons. “A sustainable recovery post-festive season is crucial to ascertaining a firm recovery trend in 2022,” he said

Ng said that the rental reversion outlook remains tame in the near term given that tenants are transitioning to the initial phase of recovery. “A progressive recovery will provide an opportunity for reduction of rental assistance, which will benefit Sunway REIT’s earnings,” he said.

On the hotel segment, Ng said that it is gradually benefiting from the progressive relaxation in traveling restrictions and pockets of MICE activities, albeit at limited capacity due to adherence to SOPs.

He said that the emergence of the Omicron variant may lead to tightening of containment measures in certain countries and the suspension of international travel.

On the other Ng said that hand, some countries are looking to potentially open international borders, and this may provide a surprise upside that may augur well to support the recovery of the tourism industry in Malaysia.

He said that the nation has almost completely vaccinated the adult population, which bodes well for businesses’ ability to return to normalcy. Offices within Sunway REIT’s assets portfolio are expected to remain resilient as these assets are strategically located within vibrant integrated developments and transit-oriented developments.

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