Sunway REIT Management registered a strong set of financial performance for the quarter that ended 30 September 2022 with revenue increasing 56% year-on-year to RM166.2 million in 3Q, from RM106.9 million in the same quarter of the preceding year, on the back of an overall improvement in business performance for all segments.
The improvement in revenue was substantially contributed by the Retail and Hotel segments. Net property income (NPI) surged 82% y-o-y to RM128.2 million in 3Q 2022, from RM70.5 million in the corresponding quarter of the preceding year.
The Retail segment continued its strong momentum supported by encouraging retail sales, improved retail footfall and new income contribution from the new wing of Sunway Carnival Mall which was launched on 24 June 2022. Revenue soared 70% y-o-y, from RM64.9 million in 5Q FP2021 to RM110.3 million in 3Q 2022. Correspondingly, NPI for the Retail segment registered an upsurge of 120% y-o-y to RM80.5 million in 3Q 2022, from RM36.6 million in the corresponding quarter of the preceding year. NPI increased at a higher rate than revenue primarily due to the recovery of doubtful debts as a result of improvement in the rental collection in the current quarter.
Revenue for the Hotel segment increased from RM6.2 million in 5Q FP2021 to RM18.4 million in 3Q 2022 and NPI rose from RM4.2 million in 5Q FP2021 to RM17.5 million in 3Q 2022. Representing a revenue and NPI growth of 198% y-o-y and 315% y-o-y respectively.
Revenue for the Office segment registered an increase of 6% y-o-y to RM20.0 million in 3Q 2022 compared to RM18.9 million in the corresponding quarter last year, attributed to stable occupancy rates from the office properties.
Revenue and NPI for the Services segment grew 3% y-o-y to RM15.8 million in 3Q 2022, attributed to annual rental reversions for Sunway Medical Centre (Tower A & B) and Sunway university & college campus. In the same quarter last year, revenue and NPI stood at RM15.3 million.
The Industrial & Others segment posted revenue of RM1.7 million in 3Q 2022, from RM1.5 million in the same quarter last year, representing an increase of 10% y-o-y. The improvement in revenue and NPI was attributed to rental reversion for Sunway REIT Industrial – Shah Alam 1.
Sunway REIT maintained its strong growth trajectory for the nine-month period revenue rose from RM314.5 million for 9M FP2021 to RM464.7 million for 9M 2022, representing an increase of 48% y-o-y. NPI surged 77% y-o-y to RM354.1 million for 9M 2022, in comparison to RM199.9 million in the corresponding period of the preceding year.
