Sunway REIT’s 1HFY15 DPU rises 7.6% to 4.55 sen

KUALA LUMPUR (Jan 28): Sunway REIT Management Sdn Bhd, the manager of Sunway Real Estate Investment Trust (Sunway REIT), has recorded a distribution per unit (DPU) of 4.55 sen for its six months ended Dec 31 last year (1HFY15), which is 7.6% higher than 4.23 sen in 1HFY14.

According to a press statement today, this translates into annualised distribution yield of 6%, based on market closing price of RM1.52 as at Dec 31, 2014.

In the second quarter ended Dec 31, 2014 (2QFY15), its DPU increased 1.8% to 2.27 sen, from 2.23 sen in the previous corresponding quarter. Meanwhile, total realised distributable income came in 1.99% higher at RM63.27 million, while revenue was 3.34% higher at RM114 million.

The higher revenue was underpinned by healthy growth from the retail segment, which offset lower contribution from the hotel and office segments.

For the cumulative six months period, Sunway REIT (fundamental: 1.4; valuation: 0) raked in a total realised distributable income of RM126.72 million, an increase of 7.9% year-on-year. Revenue came in 8.23% higher at RM227.81 million, from RM210.49 million a year earlier.

The REIT said its retail property segment was strong, which partially mitigated the softer performance in its office property segment, which remains challenging amidst constant incoming of new office supply.

In the same statement, Sunway Reit Management CEO Datuk Jeffrey Ng said the REIT is cautious on the economic climate which may adversely affect the assets sub-sectors in the portfolio. "Barring any unforeseen circumstances, we expect modest DPU growth in FY2015.”

Meanwhile, Sunway REIT Management also announced that the proposed acquisition of Sunway Hotel Georgetown Property had been completed today.

Sunway REIT closed unchanged at RM1.58 today, translating into a market capitalisation of RM4.6 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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