Sunway REIT Net Profit For FY2020 Down 46.11%

Pavither August 4, 2020

Sunway REIT net profit for FY2020 down 46.11%

Sunway Real Estate Investment Trust (Sunway REIT) saw its net profit for the year ended 30 June 2020 (FY2020) drop 46.11% to RM208.21 million. 

Sunway REIT attributed the decline to the rental support it provided to assist tenants as well as the lower carpark income due to restrictions and loss of business during the lockdown period, reported the New Straits Times (NST).

Revenue for FY2020 dipped 4.03% to RM556.88 million, on the back of lower contribution from its retail and hotel segments.

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This comes as the Covid-19 pandemic and restrictions imposed on businesses further exacerbated the challenging operating environment.

For the fourth quarter, Sunway REIT posted a net loss of RM13.48 million, as revenue declined 27.91% to RM104.93 million.

Sunway REIT Management Sdn Bhd CEO Datuk Jeffrey Ng revealed that the company implemented cash conservation and prudent cost management initiatives to ensure adequate flexibility in its liquidity management.

“As part of the cash conservation initiative, we are in the process of establishing a Distribution Reinvestment Scheme (DRS) to provide the additional flexibility to unitholders to receive future income distribution in cash, units or a combination of both,” he said as quoted by NST.

He added that the company maintained a cautious outlook for the year ending 20 June 2021, due to the uncertain global economic environment.

“We will focus on rebuilding the business segments that have been adversely impacted by the pandemic while strengthening its balance sheet and expanding the income stream via yield-accretive acquisitions and prudent capital management strategies,” said Ng.

For the six-month ended 30 June, a final distribution per unit (DPU) of 2.38 sen was proposed, taking Sunway REIT’s total DPU for FY2020 to 7.33 sen.

 

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