Sunway REIT quarterly NPI falls 4% to RM173.8 million

Sunway Real Estate Investment Trust posted RM173.8 million in net property income (NPI) for its third quarter ended Sept 30, 2026, down 4% year-on-year. The trust attributed the decline from RM180.9 million to increased operating costs and weaker revenue in its Bursa Malaysia filing on Nov 10.

Quarterly revenue was RM232.3 million, a 1.7% decrease against RM236.4 million a year earlier. The trust said the disposal of its Sunway University and College campus under its asset recycling strategy was the main reason. Other property operating expenses reached RM52.8 million, rising 5.8% from RM49.9 million.

Distributable income totalled RM116.1 million, equivalent to 3.39 sen per unit. A year earlier, it stood at RM143.6 million, equivalent to 4.19 sen per unit. The trust did not declare a quarterly distribution.

Retail revenue increased 5.6% to RM176.6 million, while retail NPI grew 5.3% to RM128.3 million. The trust cited the full reopening of the existing wing at Sunway Carnival Mall in May 2025, increased contributions from Sunway Pyramid Mall and higher rentals at Sunway Putra Mall.

Hotel revenue fell 13.7% to RM30.2 million, with segment NPI down 14.5% at RM29 million. Average occupancy across its hotels, excluding Sunway Putra Hotel, was 74%, compared with 76% a year earlier.

For the nine-month period ended Sept 30, 2026, the trust recorded NPI of RM501.2 million, up 1.7%, and revenue of RM675.7 million, up 1.3%. Distributable income declined to RM331.7 million from the previous RM338.7 million.

The units finished trading on Nov 10 at RM2.03, down two sen or 1%, valuing the trust at RM6.95 billion.