KUALA LUMPUR, May 19 — Sunway Real Estate Investment Trust’s (Sunway REIT) net profit slipped to RM65.66 million in the third quarter (Q3) ended March 31, 2020, from RM68.91 million a year earlier as its hotel and retail segments were affected by the Covid-19 pandemic and implementation of the Movement Control Order (MCO).
Revenue eased to RM140.80 million from RM151.49 million previously, it said in a filing with Bursa Malaysia today.
Net property income for the group’s retail segment fell 15.6 per cent year-on-year to RM67.08 million while that for the hotel segment dropped 37 per cent to RM13.55 million. In contrast, the office and services segments generated better net property income.
Overall average occupancy rate of the hotel segment plunged to 42 per cent compared with 66 per cent a year earlier due to the pandemic and the MCO imposition.
In a separate statement, Sunway REIT chief executive officer Datuk Jeffrey Ng said the operation of the retail segment was adversely affected by the MCO whereby only essential services were permitted to operate.
Meanwhile, food and beverage operators were limited to deliveries and take-away services only, he noted.
Thus, Ng said, the company had committed to a rental support programme to assist affected retail tenants during the MCO period to ensure the business sustainability of these tenants during this unprecedented and difficult time.
He said Sunway REIT’s manager had proposed a cash conservation programme as part of its capital management strategy in managing the REIT’s cashflow during the conditional MCO period and potential prolongation of post-MCO aftermath.
“The manager has adjusted the frequency of income distribution from quarterly basis to semi-annual basis, with income distribution of at least 90 per cent of the distributable income of Sunway REIT in each financial year, to sustain through this challenging period,” he said.
No income distribution was proposed for the quarter under review as the income distribution frequency of Sunway REIT has been varied. For the same quarter last year, the group gave an interim income distribution of 2.58 sen per unit or RM75.98 million.
“We are re-prioritising our Asset Enhancement Initiatives while continuing to assess new income-generating strategies such as yield-accretive acquisition, property development and strategic Asset Enhancement Initiatives in anticipation of post-pandemic recovery in the longer term,” Ng added. — Bernama
