Latest news with #SunwayREIT
The Star
17-07-2025
- Business
- The Star
REITs in good stead for F4GBM Index inclusion
PETALING JAYA: Malaysian real estate investment trusts (REITs) are expected to gain further traction in the sustainability space, with increasing potential for enhanced representation in the FTSE4Good Bursa Malaysia (F4GBM) Index in the coming review cycle this December. This momentum reflects the sector's growing alignment with environmental, social, and governance (ESG) standards. CIMB Research highlighted that Sunway Real Estate Investment Trust (Sunway REIT) is a strong contender for F4GBM Index inclusion by year-end. 'Our assessment indicates that Sunway REIT is on track for potential inclusion in the F4GBM Index in Dec 2025,' the brokerage said in a recent note. In the June 2025 review, Sunway REIT joined Axis REIT and Capitaland Malaysia Trust (CLMT) in attaining ESG Grading Band 4 — the second-highest tier — marking the highest number of REITs achieving this level in the last six cycles. Despite this, Sunway REIT was not added to the index at that point as it was not a constituent of the FTSE Bursa Malaysia EMAS Index as at end-May 2025 due to previously low liquidity. However, a turnaround in liquidity saw Sunway REIT re-enter the FBM EMAS Index following the June 2025 semi-annual review, paving the way for potential inclusion in the December 2025 F4GBM Index review. CIMB Research recommended 'hold' on Sunway REIT, with a target price of RM2.11. According to CIMB Research, 'Only companies that are constituents of the FBM EMAS Index as at end-May are eligible for consideration in the June F4GBM Index review, while companies added thereafter are only eligible in the December review.' The REIT sector's weightage in the F4GBM Index has risen to 1.7% from 1.1% in December 2024, following the inclusion of 19 new companies in the June 2025 update. Among these were CLMT, KIP REIT, and YTL Hospitality REIT , bringing the total number of REIT constituents to seven out of 160. 'To qualify for inclusion in the F4GBM Index, companies must achieve a minimum ESG score of 2.9 out of 5,' CIMB Research noted. Based on its analysis, CLMT likely qualified due to liquidity, while YTL REIT and KIP REIT earned their spots through improved ESG performance. Still, five of the 10 largest REITs by market capitalisation — which represent 93% of the sector's total market cap — remain absent from the index, including KLCC REIT and IGB Commercial REIT, mainly due to liquidity issues. Al-Aqar Healthcare REIT was excluded for failing to meet the minimum ESG score. 'Overall, we are positive on the gradual progress made by REIT players in enhancing their ESG practices, as reflected by the increasing number of constituents in the F4GBM Index,' CIMB Research stated. The brokerage emphasised that further ESG gains lie within the environmental pillar, particularly in reducing carbon emissions and boosting energy efficiency. 'A key area for improvement is the reduction of carbon emissions through greater adoption of renewable energy or improving energy efficiency,' it said. REITs were encouraged to consider subscribing to Tenaga Nasional Bhd 's Green Electricity Tariff programme, which was revised in July 2025 to offer a more accessible flat rate of five sen per kilowatt-hour. KIP REIT was singled out for retrofitting efforts across seven malls through a performance-based partnership that is expected to deliver energy savings of 15% post-capex recovery. 'Sustainability-linked financing embeds pre-agreed sustainability performance targets into financing terms, directly linking borrowing costs to the achievement of ESG outcomes,' CIMB Research added, citing Sunway REIT's RM3.4mil in savings from 2021 to 2023 as an example. With tenants increasingly favouring green-certified spaces and cost-effective financing tied to sustainability metrics, Malaysian REITs are positioned to benefit from continued ESG integration in the long term.
The Star
11-06-2025
- Business
- The Star
Trading ideas: Capital A, UUE, Sunway REIT, Encorp, Benalex, KNM, Destini, Kumpulan Kitacon
KUALA LUMPUR: Stocks to watch today include Capital A Bhd , UUE Holdings Bhd, Encorp Bhd , Benalec Holdings Bhd , KNM Group Bhd , Sunway Real Estate Investment Trust (Sunway REIT), Destini Bhd and Kumpulan Kitacon Bhd . UUE's subsidiary, Kum Fatt Engineering Sdn Bhd, has renewed its contract with Komasi Engineering Sdn Bhd and won three more contracts from them. The total value of the contracts is RM92.4mil. Capital A is nearing completion of its PN17 regularisation plan, with just 15-20% of the process left. Chief executive officer Tan Sri Tony Fernandes expects it to be finalised by July 2025 at the latest. Encorp has appointed Ahmad Harzimi Mohd Taib, 51, as its group chief executive officer (CEO), effective June 10, 2025. Benalec's unit has secured a two-year coal transport contract from TNB Fuel Services Sdn Bhd, worth up to 3.5 million metric tonnes annually, with potential earnings uplift starting FY2025. KNM is calling for a court-convened creditors' meeting to present its RM1.18 billion debt settlement scheme. It said the proposed scheme of arrangement (SoA) represents a significant milestone in KNM's financial recovery plan, offering a fair and sustainable solution to all stakeholders. Sunway REIT has appointed Ng Bee Lien (52) as its acting CEO, with effect from June 16. Its current CEO, Chen Kok Peng (42), has resigned to take up the position of chief financial officer (CFO) at Sunway Bhd . Sunway REIT said Ng will assume the role of CEO on an interim basis until a suitable candidate is identified and appointed. Destini has been awarded a tubular handling equipment and services contract from Hibiscus Oil & Gas Malaysia Ltd for operations in the PM3-CAA field, an operating oil and gas field in Vietnam-Malaysia. Kumpulan Kitacon's wholly-owned subsidiary, Kitacon Sdn Bhd, has secured a construction contract worth RM87.88mil from GLM Emerald West (Rawang) Sdn Bhd. Overnight, the S&P 500 climbed 0.55% to end the session at 6,038.81 points. The Nasdaq gained 0.63% to 19,714.99 points, while the Dow Jones Industrial Average rose 0.25% to 42,866.87 points.
Focus Malaysia
10-06-2025
- Business
- Focus Malaysia
Positive rental reversions, new assets drive earnings growth for select REITs
M-REITs delivered broadly in-line quarter one results, with notable year-on-year (YoY) earnings growth from Axis REIT, Sunway REIT, CLMT and Pavilion REIT. This is driven by positive rental reversions, improved occupancy rates, and contributions from newly acquired assets. Hospitality REITs saw some seasonal softness due to Ramadan. Operationally, the retail and industrial segments remained resilient, while office stayed challenging, though largely defended by long leases and stable occupancy. 'Looking ahead, we expect catalysts in the second half of 2025 (2H25) to include asset recycling, and new acquisitions,' said Maybank Investment Bank (MIB). Active asset enhancement initiative by Sunway REIT and IGBREIT should further support income growth. The hospitality segment for KLCCP and Sunway REIT, may see a seasonal rebound post-Ramadan. 'We also see strategic catalysts among REITs, including CLMT's industrial diversification and Sentral REIT's ongoing pivot away from pureplay office exposure,' said MIB. Al-Salam is progressing on its 'DISRUPT27' repositioning strategy, with asset recycling and KOMTAR JBCC's on-going reconfiguration expected to support medium-term yield and valuation recovery. PavREIT and CLMT's planned placements and new assets also offer medium-term upside to earnings and distribution per unit (DPU) growth. Most REITs continue to guide for stable dividends, and with gearing levels largely within comfortable thresholds. There remains room for selective growth via yield-accretive acquisitions. That said, management across the sector maintained a cautiously optimistic outlook, flagging several macro uncertainties like potential implementation of an 8% service tax on rental, which would add costs for tenants while limiting REITs' ability to raise rents, as well as potential increase to electricity tariffs and broader economic uncertainties, such as fuel subsidies and tariff wars. MIB retains a positive view on the M-REITs sector, underpinned by resilient fundamentals, attractive yields, and visible catalysts for income growth in 2H25. As the REITs appear to head towards further asset diversification, the quality of assets in its portfolio would be crucial. —June 10, 2025 Main image: Propertyguru
BusinessToday
15-05-2025
- Business
- BusinessToday
Sunway REIT, A Top Pick Among Peers: Maybank IB
Sunway REIT's 1Q25 performance was driven by full-quarter contributions from assets acquired in 2024 and the successful refurbishment of the Oasis precinct at Sunway Pyramid Mall. The results were slightly above forecast, accounting for 27% of FY25E, while consensus' was in-line. Maybank IB said the outperformance was mainly due to lower-than-expected finance costs. The house maintains its forecast with a BUY call of MYR2.13 (Ke: 7%). SREIT remains Maybank IB's top pick in the M-REIT sector due to its robust retail performance and strong growth potential from recent acquisitions & AEIs. Strong growth led by retail segment 1Q25 core net profit (+20% YoY, +4% QoQ), primarily supported by 23% YoY rise in revenue. Retail NPI surged 34% YoY, driven by positive rental reversions and contributions from newly acquired assets, including S. 163 Mall, six hypermarkets, and Mall. Retail occupancy reached a record high of 99%, and the Oasis precinct at Mall achieved full occupancy, with rents doubling. However, hospitality revenue dropped 16% YoY, impacted by the Ramadan festivity, but this is expected to normalise from 2Q25. Office NPI also declined 11% YoY due to tenant relocations, though backfilling efforts are outlook; upside from Retail and Hospitality The house said it remaims optimistic on SREIT's outlook, supported by the full-year contributions from its recent acquisitions, ongoing AEIs such as phase 2 of Mall, and development projects at Sunway Pier. The industrial segment continues to provide stable income, while hospitality is expected to recover in 2Q25 with a pick-up in MICE activity and leisure demand. Management is actively addressing tenant cost pressures related to SST and focussing on tenant retention, particularly in the office segment, while maintaining a focus on high occupancy and scalable growth in retail. Earnings forecasts unchanged Maybank IB maintained it earnings forecast and believes finance cost will increase as asset acquisitions materialise in the coming quarters. The proposed disposal of the Sunway University and College campus (MYR613m) is targeted for completion in 2H25, subject to state approval, while the acquisition of AEON Mall Seri Manjung is expected to be completed by Aug Post-completion of both transactions, gearing is expected to stabilise at around 40% (1Q25: 42%) Related
The Star
15-05-2025
- Business
- The Star
Trading ideas: MN Holdings, VSTECS, Sunway REIT, Steel Hawk, Sapura Energy, Yinson
KUALA LUMPUR: Stocks likely to draw trading interest today due to their latest developments include MN Holdings Bhd , Vstecs Bhd , Sunway Real Estate Investment Trust (Sunway REIT), Steel Hawk Bhd , Sapura Energy Bhd , and Yinson Holdings Bhd . Sunway REIT reported a 20% increase in net property income (NPI), rising to RM157.2mil in the first quarter ended March 31, 2025 (1Q25) from RM130.5mil in 1Q24. It recorded a 23% year-on-year increase in revenue to RM218.9mil for 1Q25, compared to RM178.6mil in the year-ago quarter. MN's wholly owned subsidiary, Mutu Nusantara Sdn Bhd, has secured a RM37.9mil contract from a customer providing civil engineering and electrical works. Steel Hawk reported a net profit of RM8.2mil in the first quarter ended March 31 (1Q25), more than double the amount from the previous year. Revenue surged over 2.5 times to RM52.5mil. Sapura Energy is finalising a regularisation plan to exit its PN17 status, which includes a RM1.1bil fund-raising initiative, debt restructuring, and capital reconstruction. The plan aims to improve the company's financial and operational standing, with a focus on long-term sustainability and profitability. In 1Q25, VSTECS' net profit rose 24% to RM17.7mil, or earnings per share of 5.00 sen compared with RM14.3mil, or 4.00 sen in the year-ago quarter. Revenue for the quarter rose to RM691.7mil against RM616.4mil. Yinson has set the issue price for its dividend reinvestment plan shares at RM2.29, a 19.3% premium to the ex-dividend VWAP. The company also declared a final single-tier dividend of one sen per share for the financial year ending January 31, 2025.
