Sunway REIT Management released its financial results for the third quarter that ended 30 September 2023 recording a revenue increased of 6% year on-year (y-o-y) to RM175.8 million, from RM166.2 million in the same quarter of the preceding year (Q3 2022). Net Property Income (NPI) expanded 7% y-o-y to RM136.8 million in Q3 2023, compared with RM128.2 million in Q3 2022.
The manager of popular malls like Sunway Pyramid said the encouraging performance was underpinned by a strong upsurge in the hotel segment’s revenue and NPI, boosted by robust domestic and international leisure business, and full room inventory at Sunway Resort Hotel since July 2023.
It also said segments registered higher revenue and NPI except for the services segment due to the disposal of Sunway Medical Centre (Tower A & B) completed in August 2023. The retail segment reported a modest growth in revenue and NPI in Q3 2023. Revenue and NPI for the retail segment edged up to RM111.8 million and RM81.8 million respectively, compared to
RM110.3 million and RM80.5 million respectively in Q3 2022. The resilient growth was mainly driven by sustained retail sales and footfall for all retail malls and was further bolstered by Sunway Carnival Mall’s strong performance due to the low base in the preceding year before the launch of its new wing in June 2022. In addition, SunCity Ipoh Hypermarket successfully renewed the lease for its anchor tenant in June 2023, with a positive rental reversion.
Following the completion of the disposal of Sunway Medical Centre (Tower A & B) on 30 August 2023, the rental contribution generated from the said property has ceased. Accordingly, the services segment registered a contraction in revenue and NPI by 13% to RM13.8 million in Q3 2023, in contrast to RM15.8 million in Q3 2022. The industrial and others segment reported a stable revenue of RM1.7 million in Q3 2023, with the last rent review of Sunway REIT Industrial – Shah Alam 1 effected on 1st January 2022.