Press Release

Sunway REIT Management Sdn. Bhd., the Manager of Sunway Real Estate Investment Trust (Sunway REIT), is pleased to release its financial results for the first quarter ended 31 March 2025 (“Q1 2025”).

Sunway REIT recorded a 23% year-on-year increase in revenue to RM218.9 million for Q1 2025, compared to RM178.6 million in the same period last year (“Q1 2024”). NPI rose in tandem to RM157.2 million, up from RM130.5 million in Q1 2024, representing an increase of 20%. The growth in revenue and NPI was largely driven by a full-quarter contribution from assets acquired in 2024, as well as the reopening of the Oasis precinct in Sunway Pyramid Mall on 1 November 2024. However, the overall performance was partially offset by softer results from the Hotel segment, attributed to lower occupancy.

The Retail segment delivered a strong performance in Q1 2025, with revenue rising 33% to RM168.4 million from RM126.3 million in Q1 2024. NPI also posted a 34% increase to RM116.8 million, compared to RM86.9 million in the same period last year. The robust growth was primarily driven by contributions from assets acquired in 2024, namely Sunway 163 Mall, Sunway Kluang Mall and six Giant hypermarkets, and completion of Sunway Pyramid Mall’s Oasis precinct, as highlighted above.

In Q1 2025, the Hotel segment recorded a 16% decline in revenue to RM16.1 million, down from RM19.1 million in Q1 2024, primarily due to softer occupancy levels. NPI decreased by 18% to RM15.0 million from RM18.1 million in the same period last year. The decline in both revenue and NPI was mainly attributed to reduced demand for leisure and Meetings, Incentives, Conferences, and Exhibitions (“MICE”) activities during the Ramadan period.

The Office segment posted a modest 4% decline in revenue to RM20.4 million in Q1 2025, primarily due to lower occupancy at Sunway Putra Tower following the relocation of key tenants in the second quarter of 2024. NPI declined by 11% to RM12.4 million from RM13.9 million in Q1 2024, as Sunway Tower had previously benefitted from a vacancy allowance in the same period last year. To strengthen the competitiveness of the Office segment, the Manager is actively implementing asset enhancement initiatives (“AEI”), including upgrades to air conditioning systems, lifts, and transformers as well as introducing new common area amenities including meeting rooms, event space and green lungs into our office buildings. These improvements are expected to yield energy savings, support green building certifications, and better align with evolving tenant requirements and ultimately driving higher occupancy levels.

The Services segment registered revenue and NPI of RM9.8 million for Q1 2025, representing an increase of 2% compared to Q1 2024, following an annual rental reversion, in accordance with the master lease agreement.

The Industrial & Others segment recorded a strong performance in Q1 2025, with revenue surging 83% to RM4.2 million and NPI rising 61% to RM3.2 million. This growth was driven by positive rental reversion at Sunway REIT Industrial – Shah Alam 1, a full-quarter rental contribution from Sunway REIT Industrial – Prai acquired on 24 October 2024, and improved occupancy at Sunway REIT Industrial – PJ 1, which increased from 31% to 37% following the commencement of a new tenancy. The occupancy at Sunway REIT Industrial – PJ 1 is expected to exceed 75% by the second half of 2025, based on committed leases.

Clement Chen, Chief Executive Officer of Sunway REIT Management Sdn. Bhd., stated, “We are pleased to report that Sunway REIT is continuing its exciting growth trajectory in the first quarter of 2025. Performance has been boosted by full-quarter contribution from the assets acquired in 2024, with both revenue and NPI registering at least a 20% increase.”

He added, “We are also excited to inform that the final phase of refurbishment at Sunway Carnival Mall has opened two months ahead of schedule on 7 May 2025, instead of July 2025. The completion of this final phase of refurbishment is significant as it involves the most tenants and is anticipated to further boost Sunway Carnival Mall’s NPI in the coming quarters. It also marks the completion of the RM800 million expansion and rejuvenation of Sunway Carnival Mall over a 7-year period and in the process firmly establishing itself as the must visit mall in mainland Penang.”

“Looking ahead, we have strong conviction on Sunway REIT’s performance in financial year 2025 driven by the early completion of Sunway Carnival Mall’s refurbishment, improving occupancy at Sunway REIT Industrial – PJ1 which is aided by pivoting supply chains and the anticipated completion of the AEON Mall Seri Manjung acquisition in Q3 2025.”

He continued, “Nevertheless, Sunway REIT is mindful of the potential challenges posed by a volatile macro-economic environment including the possibility of a trade war, impending sales and service tax expansion and fuel subsidy rationalisation. Hence, we have recently proposed the disposal of the Sunway university & college campus for RM613 million with 2 main objectives. Firstly, we are able to de-gear and preserve balance sheet strength while providing us with a war chest to capitalise on opportunistic acquisitions when they arise. Secondly, it aligns with Sunway REIT’s strategic asset recycling initiative to monetise capital gains and proactively redeploy capital into assets that offer higher yields, growth potential or stronger strategic alignment with our long-term objectives.”

With its strong governance and financial discipline, Sunway REIT is pleased to also share that it has been recognised with several prestigious awards in the first quarter of 2025.

Sunway REIT has been recognised by renowned international organisations, TIME and Statista, as among the top 200 Best Companies in Asia-Pacific for 2025. The rankings are evaluated based on employee satisfaction, financial performance, and sustainability transparency. Recognition by the rankings, which is topped by Asian giants like DBS Bank, Maybank and Kia Motors, provides strong external validation for the progress made by Sunway REIT in its governance and sustainability efforts over the past year.

Sunway REIT’s ability in financial innovation was also feted at The Asset Triple A Sustainability Finance Award 2025 in Hong Kong. Its RM500 million sustainability-linked perpetual bond issued in October 2024 set two significant milestones in the Malaysian bond market, being the country’s first ever sustainability-linked perpetual bonds and the first ever rated perpetual bond issued by a

REIT in Malaysia. Accordingly, the perpetual bond issuance was awarded with the Best Sustainability Link Bond (Malaysia) by The Asset Triple A Awards.