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KUALA LUMPUR: Sunway Real Estate Investment Trust (REIT) has raked in a net profit of RM58.5 million in its third quarter ended March 31 (3QFY14), an increase of 5.9% year-on-year from RM55.2 million.
Its revenue came in 1.5% higher at RM108 million from RM106.4 million. Earnings per share came in higher at two sen compared with 1.98 sen a year earlier.
As for its nine months ended March 31, the REIT posted a net profit of RM175.9 million, climbing 7.7% year-on-year from RM163.4 million. Revenue increased 2.1% to RM318.6 million from RM312 million.
In a press statement yesterday, Sunway REIT said that despite the closure of Sunway Putra Mall since May last year, lower income contribution from Sunway Putra Hotel as well as higher property operating costs arising from tariff hike and provision for higher assessment tax for Kuala Lumpur properties, revenue and net property income (NPI) grew by 1.5% and 1.2% year-on-year respectively
It pointed out that the hotel segment recorded a marginal 1.1% decline in revenue year-on-year in 3QFY14 mainly due to lower income contribution from Sunway Putra Hotel, which was “adversely affected by the ongoing refurbishment”.
As for its retail segment, the group registered a commendable NPI growth of 2.5% year-on-year in 3QFY14 despite loss of income from Sunway Putra Mall, supported by strong performance of both Sunway Pyramid Shopping Mall and Sunway Carnival Shopping Mall.
The office segment’s revenue was higher by 3.5% year-on-year in 3QFY14, underpinned by rental reversion for both Menara Sunway and Sunway Putra Tower.
NPI, however, fell 1.9% year-on-year, mainly attributed to higher utilities expenses and provision for higher assessments for properties located in Kuala Lumpur.
The manager of Sunway REIT, Sunway REIT Management Sdn Bhd, has proposed a higher distribution per unit (DPU) of 2.1 sen for 3QFY14, bringing cumulative 3QFY14 DPU to 6.33sen. This translates into annualised distribution yield of 6.2% based on closing price of RM1.36 on 31 March 2014.
“Barring any unforeseen circumstances, we endeavour to maintain previous financial year’s DPU for FY2014.
“We are well-positioned to face the challenges with the fixed versus floating rate ratio at 77:23 and our average cost of debt of 3.85% (as at 3QFY14) is among the lowest in the sector,” said Sunway REIT Management chief executive officer Datuk Jeffrey Ng.
This article first appeared in The Edge Financial Daily, on Aprill 30, 2014.
