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Sunway REIT's FY20 profit almost halved due to Q4 loss

KUALA LUMPUR (Aug 4): Sunway Real Estate Investment Trust (REIT) reported a net loss of RM13.48 million for the fourth quarter versus a net profit of RM178.01 million a year earlier, dragging its earnings down by almost half for the financial year ended June 30, 2020 (FY20).

This was mainly due to a net fair value loss of investment properties of RM41.28 million incurred in the quarter compared with a gain of RM107.73 million in the previous year's corresponding period.

Net property income (NPI) came in at RM77.61 million, down about 30 per cent from RM111.18 million in Q4 FY19, it said in a filing with Bursa Malaysia yesterday.

 “This was largely attributed to the business disruptions caused by the various phases of the Movement Control Order (MCO) in the attempt to break the COVID-19 pandemic chain as well as rental support provided to retail tenants and hotel lessees,” it said in a media statement.

For the entire FY20, the REIT recorded a drop in FY20 net profit to RM208.21 million from RM386.37 million in the preceding financial year.

Revenue slipped to RM556.88 million from RM580.30 million previously, the group said.

Sunway REIT proposed a final distribution per unit (DPU) of 2.38 sen for the six-month period up to June 30, bringing total DPU to 7.33 sen in FY20 (FY19: 9.59 sen).

Sunway REIT Management Sdn Bhd chief executive officer Datuk Jeffrey Ng said the group was seeing encouraging recovery in footfall to its malls since the Recovery Movement Control Order (RMCO) began.

“The business units’ management teams have also recently launched the ‘Ke Sana Ke Sini Ke Sunway’ campaign, a leisure package which was fully sold within two weeks of launch. Due to the overwhelming response, a sequel of the campaign was launched, ‘Ke Sana Ke Sini Ke Sunway Lagi’.

“These campaigns, which aim to capture the short-term surge in demand among consumers following a period of lockdowns, demonstrated the strength of business synergies within the Sunway City ecosystem,” he said.

On the group's prospects, he said that Sunway REIT maintained a cautious outlook for the financial year ending June 2021 due to the uncertainties surrounding global economic recovery.

He added that the group would focus on rebuilding the business segments that had been adversely impacted by the pandemic while strengthening its balance sheet and expanding the income stream via yield-accretive acquisitions and prudent capital management strategies.

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