Selangor Journal
The iconic facade of the lion-head figure of Sunway Pyramid shopping mall. — Picture by SUNWAY PYRAMID

Sunway REIT posts lower net profit in first quarter

KUALA LUMPUR, Nov 24 — Sunway Real Estate Investment Trust (REIT) has posted a lower net profit of RM34.40 million in the first quarter ended September 30, 2020 (Q1), against RM78.82 million chalked up in the same quarter a year ago.

Revenue eased to RM107.44 million during the quarter under review from RM155.35 million previously, the asset management company said in a filing to Bursa Malaysia yesterday.

In a separate statement, Sunway REIT said the lower revenue was due to lower contribution from the retail and hotel segments, however, it was partially mitigated by higher revenue from the office, services and industrial, and other segments.

Datuk Jeffrey Ng, chief executive officer of Sunway REIT Management Sdn Bhd, the manager of Sunway REIT, said the re-imposition of conditional movement control order (CMCO) in the Klang Valley and selective states in the country amidst the recent resurgence of Covid-19 transmission was hindering the recovery process for the quarter ending December 31, 2020, particularly for the retail and hotel segments.

“These cyclical segments are more vulnerable to any tightening measures imposed in managing the containment of the pandemic,” he said.

On prospects, Ng said the recent recovery during the recovery movement control order (RMCO) in June suggested that retail and hotel segments were on track for a gradual recovery in the later part of the financial period when the pandemic stablises.

He said Sunway REIT’s earnings was also partially cushioned by its diversified asset portfolio and new income contribution from the recently acquired The Pinnacle Sunway.

“Despite the prevailing tough operating environment, we are undeterred as we continue to pursue our mid-term aspiration as outlined in the TRANSCEND 2025 strategic objectives.

“We see opportunities in assets disposal by vendors with stretched balance sheet, demand for assets within the emerging sub-sectors, as well as mergers and acquisitions opportunities,” he added.

— Bernama

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