SunREIT NPI up 21.9% to RM74.36m in 3Q

PETALING JAYA (April 25): Sunway Real Estate Investment Trust (SunREIT) posted a growth in net property income (NPI) of 21.9% to RM74.36 million in 3Q FYE June 2012, against RM60.98 million a year ago.

The NPI from the fund's initial eight assets grew by 9.6% while its most recent addition, Sunway Putra Place, registered a 12.3% rise in NPI, its manager Sunway REIT Management Sdn Bhd announced to Bursa Malaysia.

Gross revenue rose by 19.1% to RM98.09 million in 3Q from RM82.34 million year-on-year (y-o-y), while distribution income rose 10.4% to RM50.38 million from RM45.64 million.

"We are happy to report that Sunway REIT performed better compared to FY2011. The continuous business improvement enables Sunway REIT to continue to distribute higher income distribution to unitholders," said Sunway REIT Management CEO Datuk Jeffrey Ng in a statement.

"We continue to register strong rental reversion of 15.8% on the portfolio basis. Sunway Pyramid Shopping Mall achieved rental reversion of 17.2% for year-to-date 3Q with a total 294,968 sq ft of lettable area renewed. We expect the strong rental reversion to sustain at this level for the remaining period of the financial year."

The Securities Commission has approved a proposed issuance of a seven-year commercial paper programme with a nominal value of RM1.6 billion rated P1(S) by RAM Ratings, he added.

"The programme was undertaken to exploit the prevailing accomodative interest rate environment in lowering the overall cost of debt. We target to issue the commercial paper by end April of which the amount to be determined closer to the issue date."