KUALA LUMPUR: Sunway Real Estate Investment Trust (REIT) recorded an increase of 123.8 per cent in its net profit to RM91.91 million in the third quarter (Q3) ended September 30, 2022, from RM41.06 million in the same period last year on the back of higher revenue.
Revenue rose 55.5 per cent year-on-year (YoY) to RM166.24 million from RM106.89 million due to increased revenue recorded in all segments.
In its Bursa filing, the company said the retail segment increased by 70 per cent or RM45.4 million compared to Q3 2021, due to the overall improved performance across retail properties, primarily from the increase in revenue of its flagship Sunway Pyramid Mall and also from the new wing of Sunway Carnival Mall.
The hotel segment doubled its revenue to RM18.4 million for Q3 2022 despite the guaranteed rent from Sunway Putra Hotel of RM2.7 million in Q3 2021, which has since ceased.
The office segment recorded an increase of six per cent in revenue to RM20 million, supported by a stable occupancy rate, while services segment revenue increased by 3 per cent compared to Q3 2021 due to annual positive rental reversion for Sunway Medical Centre and Sunway university and college campuses.
For the nine months, the company's net profit surged 144.8 per cent YoY to RM272.74 million from RM111.4 million a year ago.
Revenue for the period rose 47.7 per cent to RM464.71 million from RM314.55 million in the same period last year.
"The manager maintains an optimistic outlook for 2022, underpinned by strong growth in the retail segment on the back of strong retail sales and a low base in the preceding year.
"A gradual recovery further supports the outlook in the hotel segment, new income contribution from the new wing of Sunway Carnival Mall and resumption of income contribution from phased re-opening of Sunway Resort Hotel," it said.
It added that the company proactively optimises its capital management strategy to minimise the impact of higher finance costs.
"In addition, the manager strives to increase the net property income moving forward to negate the impact," it added.