Sunway Real Estate Investment Trust released its second quarter results, recording a 4.2% year-on-year increase in revenue to RM220.3 million, from RM211.4 million a year earlier, while net property income (NPI) rose 5.2% to RM163 million from RM154.9 million.
For the first half of 2026, revenue stood at RM443.4 million, with NPI at RM327.4 million, reflecting continued strength particularly from the Retail and Industrial & Others segments.
Distribution per unit (DPU) increased 10.6% year-on-year in H1 2026, supported by the double-digit improvement in the Retail segment as well as lower finance costs arising from reduced borrowings and a lower average interest rate.
The Retail segment remained the key growth driver, with Q2 revenue rising 11% to RM177.1 million from RM160 million previously.
Its NPI climbed 14% to RM130.4 million from RM114.1 million.
Sunway REIT attributed the stronger retail performance mainly to the full reopening of the existing wing of Sunway Carnival Mall in May 2025, stronger performance at Sunway Pyramid Mall and additional rental income from AEON Mall Seri Manjung following its acquisition in July 2025.
The manager said the segment is expected to maintain its growth momentum, supported by healthy occupancy rates, positive rental reversions, the full-year earnings contribution from AEON Mall Seri Manjung and the newly refurbished Sunway Carnival Mall.
Meanwhile, the Hotel segment recorded an 8% increase in Q2 revenue to RM18.1 million from RM16.7 million a year earlier, while NPI rose 9% to RM17 million from RM15.6 million.
The improvement was driven by stronger contributions from Sunway Resort Hotel, Sunway Lagoon Hotel and Sunway Putra Hotel, supported by improving international flight connectivity and robust demand from the meetings, incentives, conferences and exhibitions (MICE) market.
Sunway REIT said the hotel segment’s outlook for the second half of 2026 remained encouraging, with catalysts including Visit Malaysia Year 2026, Malaysia Year of Medical Tourism 2026 and continued growth in international tourist arrivals.
The Office segment recorded largely stable revenue of RM20.4 million in Q2, while NPI edged down 1% to RM12.1 million from RM12.2 million.
Portfolio occupancy remained healthy at above 80%, with leasing activity showing further improvement. Wisma Sunway is on track to achieve full occupancy by the fourth quarter of 2026, which is expected to support the segment’s performance going forward.
The Industrial & Others segment also recorded improvement, with revenue increasing 5% to RM4.7 million from RM4.5 million, while NPI jumped 12% to RM3.6 million from RM3.2 million.
The stronger performance was mainly supported by higher occupancy at Sunway REIT Industrial – Petaling Jaya 1.
