Sunway Real Estate Investment Trust (Sunway REIT) was listed in Bursa Malaysia in 2010, with a portfolio spread across Kuala Lumpur, Penang and Perak. As of 31 December 2023, Sunway REIT owns 19 assets, down from 20 following the sale of the Sunway Medical Centre buildings to Sunway’s healthcare division, bringing its total property value to RM9 billion.
Here are eight things I learned from the 2024 Sunway REIT annual general meeting:
1. Revenue increased by 10% to RM719 million (FY2022: RM651 million) in FY2023. Net property income (NPI) was also up to RM527 million, 5% higher than FY2022 (RM500 million). Property yield increased from 5.4% to 5.7% as well. Its Retail segment remains the major revenue contributor to Sunway REIT, at over 67%.
Source: Sunway REIT Source: Sunway REIT
2. Distribution per unit (DPU) increased from 9.22 sen in FY2022 to 9.30 sen in FY2023 but is still marginally below FY2019 levels due to a relatively large private placement exercise in late 2020. However, the REIT is optimistic about soon reaching similar DPU levels as in 2019. The REIT also aims to maintain its 100% distribution payout for FY2024, barring unforeseen circumstances.
3. The Retail segment remains the key growth driver for Sunway REIT in FY2023, benefiting from increased retail footfall and healthy retail sales. The impressive performance of the newly opened Sunway Carnival Mall New Wing provided a significant boost. The average retail occupancy rate remains high at 97%. The management outlook for this segment continues to grow steadily, supported by healthy economic growth and sustained domestic consumption. NPI is expected to further uplift upon completing ongoing asset enhancement initiatives (AEI).
4. The Hotel segment saw an increase in occupancy rates (FY2022: 54% vs FY2023: 64%) as travel demand recovered post-pandemic. Additionally, government initiatives such as the 30-day
