KUALA LUMPUR, Oct 29 — Sunway Real Estate Investment Trust’s (Sunway REIT) net property income rose 4% to RM89.94 million in the first quarter ended Sept 30, 2016 (1QFY16) from RM86.49 million a year ago, backed by commendable growth from the retail and hotel segments.
However, Sunway REIT said the growth was partially offset by lower contribution from its office segment.
Its gross revenue for the period rose 6.5% to RM121.27 million from RM113.81 million last year.
In a statement Thursday, the group said that the retail segment registered an on-year growth of 6.2% year-on-year despite headwinds affecting consumer and business sentiment.
“The growth was contributed by resilient performance from Sunway Pyramid Shopping Mall and Sunway Putra Mall, resuming income contribution following its soft opening on May 28, 2015,” it said.
The group’s hotel segment registered a 16.9% net property income increase on the back of seasonal Middle Eastern tourists despite headwinds from economic slowdown, global uncertainties and intensifying competition.
Office segment gross revenue declined 22% due to lower occupancy rate but was partially offset by new contribution from Wisma Sunway upon its acquisition on March 23, 2015.
Sunway REIT Chief Executive Datuk Jeffrey Ng said the financial performance of the group’s assets remained resilient in 1QFY16, supported by locked in rentals of the retail assets.
“The financial performance was, however, dampened by lower NPI contribution from the office segment due to increase in vacancy,” he said.
Going forward, Ng said the group would continue to actively pursue acquisition strategy as it strived to achieve portfolio value of RM7 billion by FY17 and simultaneously identify asset enhancement initiatives opportunities for existing assets.