Sunway REIT reported a set of strong financial performances for the quarter ended 30 June 2022 with revenue rising 39.8% year-on-year (y-o-y) to RM144.5 million in 2Q 2022, underpinned by a strong performance from the Retail segment. Net property income (NPI) surged 71.4% y-o-y to RM106.9 million in 2Q 2022, from RM62.3 million in the same quarter of the preceding year.
For the quarter under review, revenue for the Retail segment soared 73.0% y-o-y to RM101.4 million, boosted by improved performance across retail properties, particularly its flagship Sunway Pyramid Mall. Retail footfall and tenants’ retail sales in the quarter under review were boosted by festive spending in conjunction with Hari Raya celebration and relaxation of COVID19 safety measures as the nation transitions into the endemic phase. NPI increased at a higher quantum, from RM25.5 million in 4Q FP2021 to RM71.6 million in 2Q 2022, representing an increase of 180.5% y-o-y, largely due to the increase in revenue and the recovery of doubtful debts as a result of continued improvement in the rental collection in the current quarter.
The Hotel segment recorded improvements in average occupancy rates for the quarter under review pursuant to the nation transitioning into the endemic phase. Despite the improvement in operational performance, the Hotel segment reported revenue of RM6.0 million in 2Q 2022, lower by 31.1% y-o-y compared to RM8.7 million in 4Q FP2021, primarily due to recognition of minimum guaranteed rent for Sunway Putra Hotel in the corresponding quarter of the preceding year which
has since ceased. NPI for the Hotel segment eased correspondingly to RM5.1 million in 2Q 2022, from RM7.0 million in 4Q FP2021. Sunway Resort (formerly known as Sunway Resort Hotel) has progressively unveiled its transformed brand-new guest rooms since May 2022.
Revenue for the Office segment increased 2.4% y-o-y to RM19.7 million in 2Q 2022 compared to RM19.3 million in the corresponding quarter of the preceding year, contributed by higher revenue from all office properties except for Sunway Tower. NPI dipped 1.5% y-o-y, from RM12.9 million in 4Q FP2021 to RM12.7 million in 2Q 2022, due to an increase in property operating expenses. Revenue and NPI for the Services segment grew 2.8% y-o-y to RM15.8 million in 2Q 2022,
attributed to annual rental reversions for Sunway Medical Centre (Tower A & B) and Sunway university & college campus.
The Industrial & Others segment posted revenue of RM1.7 million in 2Q 2022, from RM1.5 million in the same quarter last year, representing an increase of 10.0% y-o-y. The improvement in revenue and NPI was attributed to rental reversion for Sunway REIT Industrial – Shah Alam 1.
First Half Performance
As for the first half unaudited financial results, Sunway REIT registered revenue of RM298.5 million and NPI of RM225.8 million in 1H 2022, compared to revenue of RM207.7 million and NPI of RM129.4 million in the corresponding period of the preceding year. Revenue and NPI surged 43.7% y-o-y and 74.6% y-o-y respectively, boosted by better performance from all segments.
For 1H 2022, the Retail segment posted a 78.0% y-o-y surge in revenue to RM199.8 million. NPI jumped 186.8% y-o-y to RM141.9 million in 1H 2022, boosted by substantially lower rental support, higher turnover rent, promotion, and car park income amid improved retail footfall and tenants’ retail sales. Revenue for the Hotel segment increased 6.2% y-o-y to RM24.5 million in 1H 2022, from RM23.1 million in the same period last year. NPI improved in tandem to RM22.5 million in the period under review, representing an increase of 13.5% y-o-y. The improvement was largely contributed by the higher guaranteed income for Sunway Clio Property and Sunway Hotel Georgetown in 1Q 2022.
Sunway REIT proposed an interim distribution per unit (DPU) of 4.22 sen for the period from 1 January 2022 to 30 June 2022, representing an increase of 158.9% compared to the same period of the preceding year. The higher DPU was contributed by the strong improvement in the financial performance of Sunway REIT in 1H 2022 and a higher distribution payout of 95%, from 92.5% in
The group is optimistic for the 2H of the year and on the acquisition front, its pleased that it is gaining momentum pursuant to the acquisition of Sunway Pier and the proposed acquisition of Sunway REIT Industrial – Petaling Jaya 1.
