Sunway Real Estate Investment Trust (Sunway REIT) recorded a slight dip in net property income (NPI) for the fourth quarter of FY2025, reflecting higher operating costs, even as overall revenue continued to trend upward.
For the three months ended Dec 31, 2025, NPI eased marginally to RM164.96 million, compared with RM165.55 million in the corresponding quarter a year earlier. Revenue for the quarter rose 3.1% year-on-year to RM227.64 million, supported by steady performance across its diversified portfolio, including retail, hospitality, office, and industrial property assets.
The softer quarterly NPI was largely attributed to increased property-related expenses, with other operating costs rising 12.6% to RM56.98 million. Despite this, Sunway REIT declared a final distribution of 4.82 sen per unit, payable on Feb 27, bringing total FY2025 distribution to a record 14.48 sen per unit—significantly higher than the 10 sen distributed in the previous financial year.
Strong Full-Year Growth Driven by Asset Expansion
On a full-year basis, Sunway REIT delivered a solid performance, with NPI climbing 15.5% to RM657.96 million, while annual revenue increased 16.6% to RM894.33 million. The improvement was underpinned by income contributions from newly acquired assets and resilient occupancy across key segments, including industrial and commercial property in strategic locations.
Industrial assets, which remain in high demand across Selangor and Greater Kuala Lumpur, continued to contribute positively, reflecting sustained interest in logistics facilities, warehouses, and factory properties in established hubs such as Subang, Klang Valley, and other industrial corridors in Selangor.
Portfolio Rebalancing and Strategic Disposals
Sunway REIT Management Sdn Bhd chief executive officer Derek Teh Wan Wei highlighted several strategic moves during the year. These included the acquisition of AEON Mall Seri Manjung in July 2025, expanding the trust’s retail footprint beyond the Klang Valley.
The trust also completed the disposal of the Sunway University & College campus in September 2025, realising a total gain of RM41 million. This comprised accumulated fair value gains recognised in prior years, as well as additional disposal gains from the RM613 million transaction—strengthening the REIT’s balance sheet for future investments.
Looking ahead, Sunway REIT has proposed the disposal of Sunway Hotel Seberang Jaya as part of a broader redevelopment plan integrated with Sunway Carnival Mall. The initiative is expected to enhance asset value, improve visitor flow, and reinforce the long-term performance of the surrounding commercial property ecosystem. Completion is targeted for 2027.
Positioned for Long-Term Growth in KL and Selangor
With a diversified portfolio that includes retail centres, hotels, office space, and industrial properties, Sunway REIT remains focused on disciplined capital management and selective acquisitions. Demand for quality office space in Kuala Lumpur, as well as industrial land in Selangor, continues to support the trust’s long-term strategy, particularly as businesses seek well-located assets near established townships and transport links.
Backed by a strong balance sheet and proactive asset optimisation, Sunway REIT is well positioned to navigate market uncertainties while delivering stable income and sustainable value for unitholders.
Sunway REIT units closed higher at RM2.51, valuing the trust at approximately RM8.6 billion, and marking a one-year gain of about 33%.
Malaysia