KUALA LUMPUR (Aug 11): Sunway Real Estate Investment Trust (REIT) has reported a 52% jump in its net profit to RM357.91 million for its fourth financial quarter ended June 30, 2015 (4QFY15), from RM235.21 million in the previous corresponding quarter.

The REIT attributed the stellar set of earnings numbers to better performance of its retail segment.

In a filing with Bursa Malaysia today, Sunway REIT said it is proposing a distribution per unit (DPU) of 2.05 sen for 4QFY15, adding up to a total of 8.73 sen per unit for the full financial year ended June 30, 2015 (FY15), exceeding analyst consensus DPU of 8.7 sen.

The DPU of 8.7 sen translates into a distribution yield of 5.7%, based on Sunway REIT’s market closing price of RM1.54 as at June 30, 2015.

The REIT’s quarterly revenue is slight higher at RM114.94 million, up 5.2% from RM109.22 million a year ago, mainly contributed by its retail segment which had reported robust growth in the quarter, despite the anticipated weaker sentiment caused by the implementation of the goods and services tax (GST) on April 1, 2015.
 
Sunway REIT Management Sdn Bhd's chief executive officer Datuk Jeffrey Ng said FY15 was a challenging, but fulfilling year for the group.

“I am pleased to share that we have completed our largest asset enhancement initiatives (“AEIs”) to date, and saw the re-opening of Sunway Putra Mall in May 2015.

“As we celebrate our 5th anniversary of listing on the Main Market of Bursa Malaysia, we have achieved several key milestones, amongst others, being one of the Malaysian REIT’s with the largest acquisition track record of approximately RM1 billion and largest AEI to date, with a combined completed and ongoing AEIs of approximately RM650 million, mainly for Sunway Putra, the 3-in-1 mixed use development comprising a retail mall, hotel and office” he said in a statement today.

He said with a portfolio value of RM6.32 billion, the REIT is on track to achieve its target of above RM7 billion in property value by FY17.

As for full year net profit, Sunway REIT reported a 31.7% increase in net profit to RM541.44 million, from RM411.12 million in FY14, mainly arising from fair value gain.

The REIT reported a 6% increase in FY15 revenue to RM453.45 million, from RM427.79 million in the preceding financial year, achieved on the back of a double digit growth in the retail segment.

Net property income (NPI) for FY15 grew 6.2% to RM340.8 million.

Property value surpassed the RM6 billion mark to RM6.32 billion as at June 30, 2015 — an increase of 14.6%, as compared to the valuation of RM5.52 billion a year ago, contributed by acquisition, capital expenditure and fair value gains.

The net asset value (NAV) per share (after income distribution) expanded correspondingly from RM1.2390 a year ago to RM1.3350 as at June 30, 2015.

Sunway REIT's (fundamental: 1; valuation: 0.65) share price dropped 0.65% today to RM1.53, rising to a market capitalisation of RM4.49 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.)