Sunway REIT Q2 pre-tax profit rises to RM62mil

by **Cals** Mon 27 Jan 2014, 02:04

Published: Saturday January 25, 2014 MYT 12:00:00 AM
Updated: Saturday January 25, 2014 MYT 7:38:34 AM
Sunway REIT Q2 pre-tax profit rises to RM62mil

KUALA LUMPUR: Sunway Real Estate Investment Trust’s (Sunway REIT) pre-tax profit for the second quarter ended Dec 31, 2013 rose to RM62.03mil from RM56.12mil in the same quarter last year.
Its revenue increased to RM110.31mil from RM105.82mil previously.
In a filing with Bursa Malaysia yesterday, Sunway REIT said the retail segment registered a lower gross revenue of RM74.9mil due to the closure of Sunway Putra Mall since May 2013 for major refurbishments.
The hotel segment registered gross revenue of RM19.9mil and the office segment RM10.8mil, it said.
On prospects, the company said it expected the retail assets to register healthy growth in the current financial year for the retail malls under operation despite the recent rise in operating costs.
“This will be mitigated by prudent cost management. The manager foresees possible softening of consumer spending amid rising costs of living environment and expected slower growth in disposable income in the medium term,” it said.
For the hotel market, Sunway REIT said notwithstanding the “Visit Malaysia Year 2014” kicking in, it remained cautious with possible decline in contribution from this segment.
“This is mainly due to performance of Sunway Putra Hotel, which will remain adversely affected by ongoing refurbishments at the adjoining Sunway Putra Mall, and the increasingly more competitive hospitality market environment,” it said. – Bernama