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Sunway REIT Likely To See Strong Earnings (The Star)

July 20, 2022 – (from The Star) Sunway Real Estate Investment Trust (Sunway-REIT) is expected to stage a strong recovery in earnings on the back of higher shopper footfall and tenant sales.

Following a virtual meeting with the company, MIDF Research said it gathered that shopper footfall and tenant sales have recovered to pre-Covid levels due to revenge spending and festive seasons.

“That led to rental rebate easing significantly in the first half of financial year 2022 (1H22). Rental reversion outlook is improving as management expects it to be flattish to mildly positive in FY22,” said the research firm in a report. Rental reversion is the change in rents upon lease renewal.

Additionally, the recent opening of Sunway Carnival’s new wing registered an occupancy rate of 90%. All these bode well for the retail division where MIDF anticipates earnings to improve significantly in FY22 and FY23.

Other key takeaways from the meeting is expectation for its hotel division to stage a stronger recovery in FY23.

Read more here..

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