Sunway REIT Reports 43.4% Y-o-Y Decline in Net Property Income For Q2 2021
February 12, 2021- Sunway REIT Management Sdn. Bhd., the Manager of Sunway Real Estate Investment Trust (Sunway REIT), is pleased to announce its financial results for the second quarter ended 31 December 2020.
Sunway REIT announced a gross revenue of RM95.8 million and net property income (NPI) of RM66.0 million for the second quarter ended 31 December 2020 (2Q FP2021) as compared to RM155.8 million and RM116.6 million respectively for the corresponding quarter in the preceding year (2Q FY2020) as a result of the uncertainty and challenges brought about by the COVID-19 pandemic. During the quarter under review, the recovery of the Retail and Hotel segments were impacted following the reinstatement of conditional movement control order (CMCO) in various states in the country amidst the resurgence of COVID-19 cases.
Gross revenue for the Retail segment for the quarter under review stood at RM56.8 million, from RM106.7 million in 2Q FY2020, attributable to the implementation of CMCO in October which has stalled the footfall and sales recovery in 2Q FP2021. In tandem with that, the Retail segment recorded a NPI of RM33.9 million, from RM74.0 million in 2Q FY2020.
The hotel industry continued to be adversely affected by the challenging market conditions, of which hotels under Sunway REIT’s asset portfolio collectively posted a gross revenue of RM7.9 million in 2Q FP2021 compared to RM22.6 million in 2Q CY2020 owing to ongoing international travel restrictions, limited domestic travel activities and cautious sentiment as a result of the increasing COVID-19 daily cases. The further restrictions on interstate, district and inbound travel, on top of strict standard operation procedures (SOP) imposed on group and corporate events have constricted the overall hotel industry’s businesses.
That being said, Sunway Resort Hotel took the opportunity during this lull period to refurbish and upgrade in phases to position the hotel for the upswing in demand upon the recovery of the COVID-19 pandemic. This transformational refurbishment which is slated to be completed by 2021 will bring a whole new experiential experience for both business and leisure travellers, setting the benchmark for Sunway City as Asia’s leading integrated resort and a regional tourism hub.
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