KUALA LUMPUR: Sunway Real Estate Investment Trust’s (SUNREIT) net profit in the second-quarter (Q2) ended December 31, 2018 decreased 6.4 per cent to RM66.45 million from RM71 million in the same period a year ago.
In an exchange filing today, SUNREIT said lower earnings due to soften domestic economic growth coupled with intense competition in the retail, hotel and office segments, largely attributable to the oversupply in these property sub-sectors.
SUNREIT’s Q2 revenue for the period decreased 1.4 per cent to 139.50 million from RM141.47 million, attributed to softer performance in the hotel segment however partially mitigated by firmer performance from retail, office and services segments as well as new income contribution from Sunway Clio Property.
For the first-half period ended December 31, 2018, SUNREIT’s net profit decreased 7.17 per cent to RM139.45 million from RM150.23 million, while revenue increased 0.2 per cent to RM283.24 million from RM282.64 million in the same period a year ago.
Sunway REIT Management Sdn Bhd chief executive officer Datuk Jeffrey Ng said the company maintained a cautious outlook for its remaining financial year ending June 30,2019 (FY19) taking guidance from the financial performance of the first 6 months of FY2019 on the back of softening domestic economic climate.
“The property market is expected to see more intense competition as more supply of properties in the various sub-sectors are coming on stream this year. In line with that outlook and as we strive to deliver sustainable DPU to unitholders, Sunway REIT is actively seeking for opportunities to further diversify its asset portfolio into non-cyclical sectors such as education and healthcare as well as investing into emerging sectors riding on global megatrends,” he said in a statement today.