Sunway REIT Management released its financial results reporting a surge in NPI by 11% to RM129.3 million in Q2 2024, from RM116.2 million in Q2. The group also recorded a revenue increase by 5% from RM166.5 million to RM175.6 million. $SUNWAY (5211.MY)$
For the first half of 2024, Sunway REIT recorded steady revenue of RM354.2 million and NPI of RM259.8 million, driven by robust performance from retail and hotel segments.
In Q2 2024, the Retail segment registered strong growth momentum with revenue climbing 12% to RM123.7 million, from RM110.9 million in Q2 2023. Correspondingly, the Retail segment's NPI soared by 24% to RM86.2 million, from RM69.5 million in Q2 2023. This was primarily attributed to the new rental contributions from six newly acquired hypermarkets, which commenced on 30 April 2024. The Retail segment's positive trajectory is expected to continue in the coming quarters, supported by the anticipated completion of asset enhancement initiatives (AEI) for the Oasissection of Sunway Pyramid Mall in Q4 2024 and the sustained rental income from the six hypermarkets, which are under triple-net master lease arrangements.
The Hotel segment's revenue improved by 10% to RM19.2 million in Q2 2024, from RM17.5 million in Q2 2023, supported by an improved average occupancy rate of 62% in 1H 2024 compared to 60% in 1H 2023. Correspondingly, NPI grew 12% to RM18.5 million in Q2 2024, from RM16.5 million in Q2 2023. This performance was fueled by the increase of foreign tourist arrivals across all hotels it said.