Sunway REIT 2Q realised profit rises 10%

PETALING JAYA (Aug 13): Sunway Real Estate Investment Trust (Sunway REIT) posted a 10.3% year-on-year increase in realised profit attributable to unitholders to RM106.5 million for the second quarter ended June 30, 2026 (2Q), supported by stronger retail performance.

In a Bursa Malaysia filing on Wednesday (Aug 12), the REIT said revenue rose 4.2% to RM220.3 million from RM211.4 million a year earlier, while net property income (NPI) increased 5.2% to RM163 million from RM154.9 million.

Reported profit before tax, however, fell 13.2% to RM112.3 million from RM129.4 million, largely because the corresponding quarter included RM27.1 million in unrealised profit from fair-value changes recognised in relation to the disposal of the Sunway university and college campus. The trust recorded only RM37,000 in unrealised profit in 2Q.

For the first half of 2026 (1H2026), realised profit attributable to unitholders rose 10.5% to RM215.5 million from RM195.1 million. Revenue grew 3% to RM443.4 million, while NPI increased 4.9% to RM327.4 million.

Sunway REIT declared an interim income distribution of 6.28 sen per unit for 1H2026, up 10.6% from 5.68 sen a year earlier. The distribution, amounting to RM215.1 million, will be paid on Sept 11.

Retail drives 2Q growth

The retail segment’s revenue rose 11% to RM177.1 million in 2Q, while NPI increased 14% to RM130.4 million.

Sunway REIT said the growth was driven by the full reopening of Sunway Carnival Mall’s existing wing in May 2025, improved performance at Sunway Pyramid Mall and additional rental contribution from AEON Mall Seri Manjung, which was acquired in July 2025. Lower utility costs also supported NPI.

For 1H2026, retail revenue increased 10% to RM362.1 million, while NPI climbed 15% to RM266.7 million.

Other segments

The hotel segment recorded an 8% increase in 2Q revenue to RM18.1 million and a 9% rise in NPI to RM17 million, supported by stronger contributions from Sunway Resort Hotel, Sunway Lagoon Hotel and Sunway Putra Hotel.

However, hotel revenue for 1H2026 remained 5% lower at RM31.1 million, while NPI declined 6% to RM28.8 million, reflecting softer performance in the first quarter.

The office segment’s quarterly revenue was broadly unchanged at RM20.4 million, while NPI edged 1% lower to RM12.1 million. Sunway REIT said Wisma Sunway is on track to achieve full occupancy by the fourth quarter of 2026.

Meanwhile, revenue from the industrial and others segment increased 5% to RM4.7 million, while NPI rose 12% to RM3.6 million, mainly on higher occupancy at Sunway REIT Industrial — Petaling Jaya 1.

Gearing and outlook

Sunway REIT’s gearing stood at 40.6% as at June 30, compared with 41.2% a year earlier. Its average cost of debt fell to 3.62% from 3.88%, while its portfolio comprised 28 properties with a combined property value of RM10.3 billion.

The trust said it remains positive on the retail segment’s prospects for 2026, supported by high mall occupancies, positive rental reversions and full-year contributions from AEON Mall Seri Manjung and the refurbished Sunway Carnival Mall.

..........

Read about emerging trends, data-backed insights, growing subsectors, and expert commentaries in EdgeProp print. Subscribe now for your free copy!