Sunway REIT nine-month NPI edges up 1.7% to RM501.2m on retail growth
Sunway REIT reported a 1.7% rise in net property income to RM501.2 million for the nine months ended Sept 30, 2026, driven by a 12% retail NPI jump to RM395 million. The quarterly NPI fell 3.9% to RM173.8 million, partly due to the absence of rental income from the disposed Sunway University and Col
PETALING JAYA (Nov 11) — Sunway Real Estate Investment Trust (Sunway REIT) posted a 1.7% increase in net property income (NPI) to RM501.2 million for the nine months ended Sept 30, 2026, from RM493 million a year earlier, according to a Bursa Malaysia filing on Tuesday (Nov 10). Revenue grew 1.3% to RM675.7 million from RM666.7 million.
Retail NPI rose 12% to RM395 million, lifting the overall result despite the absence of rental income from the Sunway University and College campus, whose disposal was completed on Sept 30, 2025. A RM43.1 million increase in retail revenue more than offset the loss of RM29.3 million in campus revenue.
For the third quarter alone, however, overall NPI fell 3.9% to RM173.8 million from RM180.9 million. Revenue declined 1.7% to RM232.3 million, mainly due to the campus disposal, while property operating expenses increased 5.4% to RM58.5 million. Quarterly distributable income dropped 19.1% to RM116.1 million, or 3.39 sen per unit, from RM143.6 million, or 4.19 sen per unit. The manager attributed the decline mainly to the previous corresponding quarter’s RM21 million net campus disposal gain after real property gains tax, and the absence of RM9.7 million in campus rental income.
Nine-month retail revenue rose 8.7% to RM538.7 million, supported by the full reopening of Sunway Carnival Mall’s existing wing in May 2025, stronger performances from Sunway Pyramid Mall and Sunway Putra Mall, and additional rental contributions from AEON Mall Seri Manjung following its acquisition in July 2025. The broader retail portfolio, including hypermarkets and AEON Mall Seri Manjung, maintained an average occupancy rate of 99% over the nine-month period.
The office and industrial portfolios also improved in the third quarter. Office NPI rose 5.9% to RM12.5 million, supported by higher revenue and lower utilities expenses, with higher occupancy at Sunway Putra Tower contributing to revenue growth. NPI from the industrial and others segment increased 9.3% to RM3.9 million, driven mainly by higher occupancy at Sunway REIT Industrial–Petaling Jaya 1.
The hotel segment weighed on quarterly performance, with revenue falling 13.7% to RM30.2 million and NPI declining 14.4% to RM29 million. The manager cited softer performance across its hotel assets, except Sunway Putra Hotel, with average occupancy falling to 74% from 76% a year earlier and weaker demand for meetings, incentives, conferences and exhibitions (MICE).
Sunway REIT Management Sdn Bhd chief executive officer Derek Teh Wan Wei said in a media release that retail remained the key growth driver, supported by shopper traffic, tenant sales and positive rental reversions. He said the manager remained cautiously optimistic about Sunway REIT’s prospects for the remainder of 2026, with retail growth expected to continue and the office and industrial segments supported by leasing activity and improving occupancy.
Nine-month distributable income declined 2.1% to RM331.7 million, or 9.68 sen per unit, from RM338.7 million, or 9.89 sen per unit. No distribution was declared for the third quarter, in line with the trust’s semi-annual distribution schedule. Its first-half distribution was 6.28 sen per unit, up 10.6% from 5.68 sen a year earlier.
