Sunway REIT's 3Q NPI up 5.1%, declares 2.37 sen DPU

KUALA LUMPUR (May 4): Sunway Real Estate Investment Trust's (Sunway REIT) net property income (NPI) grew 5.1% to RM105.3 million in the third quarter ended March 31, 2018 (3QFY18) from RM100.18 million a year ago, driven by improved financials in all segments.

Sunway REIT also declared an interim distribution per unit (DPU) of 2.37 sen, totalling RM69.8 million, for 3QFY18, payable on June 5, 2018.

In a filling with Bursa Malaysia yesterday, Sunway REIT said net profit for 3QFY18 stayed flat at RM70.35 million.

Meanwhile, revenue for the quarter rose 5.2% to RM141.51 million from RM134.57 million in the previous year.

Net profit for the nine months ended March 31, 2018 (9MFY18) rose 7.3% to RM220.58 million, from RM205.64 a year ago. Nine-month accumulated revenue also rose 8.7% to RM424.15 million from RM390.33 million, driven by growth across all segments and new income contributions from completed acquisitions during the period.

On the REIT's prospect, manager Sunway REIT Management Sdn Bhd said it is committed to distribute 100% of its distributable net income for FY18 and expects a moderate growth in DPU for FY18.

This is supported by the completion of the refurbishment of Sunway Pyramid Hotel, moderate growth for the REIT's retail segment, new income contribution from the acquisitions of Sunway REIT Industrial — Shah Alam 1 and Sunway Clio Property, as well as a gradual improvement in occupancy for the office segment due to the low base effect.

Sunway REIT declined 3 sen or 1.79% yesterday to close at RM1.65 a unit, giving it a market capitalisation of RM4.86 billion. — theedgemarkets.com

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