Sunway REIT Management Sdn. Bhd. recorded a growth of 2% in revenue of RM190.5 million in Q4 2023, compared to
RM186.7 million in the fourth quarter of 2022 (“Q4 2022”). The growth it said was primarily driven by the Retail and Hotel segments, buoyed by strong retail footfall and healthy retail sales, as well as higher tourist arrivals during festive seasons and school holidays.
Despite the uptick in revenue, Net Property Income was lower by 7.2% to RM135.7 million in Q4 2023, compared to
RM146.2 million in Q4 2022. The contraction in NPI was attributed to higher reversal of doubtful debt provision recorded in Q4 2022 and the impact of increased Imbalance Cost Pass-Through (“ICPT”) electricity charges across all segments.
For the full financial year ended 31 December 2023, Sunway REIT registered a solid performance. Revenue jumped 10% year-on-year to RM715.7 million, from RM651.4 million in FY2022. NPI climbed 5% y-o-y to RM526.9 million in FY2023, compared with RM500.2 million in FY2022. The performance was propelled by robust performance from the Retail and
Hotel segments, coupled with resilient performance across Office, Services, Industrial and Others segments.
The Manager proposed a distribution per unit of 4.68 sen for the second half of FY2023, bringing the total DPU for FY2023 to 9.30 sen. Sunway said this was consistent with its commitment to a distribution payout policy of 100%. Based on Sunway REIT’s unit price of RM1.54 as of 31 December 2023, this translates into a distribution yield of 6.0%.
