Sunway City Kuala Lumpur,12 August 2025
Sunway REIT Management Sdn. Bhd., the Manager of Sunway Real Estate Investment Trust (Sunway REIT), is pleased to release its financial results for the second quarter ended 30 June 2025 (“Q2 2025”).
Sunway REIT’s revenue grew by 20.4% to RM211.4 million in Q2 2025, compared to RM175.6 million in the same quarter last year. NPI rose by 19.8% year-on-year to RM154.9 million from RM129.3 million. For YTD Q2 2025, Sunway REIT achieved a higher revenue of RM430.3 million and NPI of RM312.1 million, underpinned by strong contributions from the Retail and Industrial & Others segments.
In Q2 2025, the Retail segment sustained its strong growth trajectory, with revenue increasing by 29% to RM160.0 million from RM123.7 million in Q2 2024. This performance was driven by higher contributions from retail assets acquired in 2024, alongside improved revenue from Sunway Pyramid Mall following the opening of its Oasis wing on 1 November 2024 and the earlier-than-anticipated full reopening of Sunway Carnival Mall’s existing wing on 7 May 2025. As a result, the segment’s NPI surged 32% to RM114.1 million, compared to RM84.2 million in the previous corresponding quarter. The Retail segment is expected to maintain its upward momentum in the coming quarters, supported by the completion of the AEON Mall Seri Manjung asset acquisition on 25 July 2025.
Revenue from the Hotel segment declined by 13% to RM16.7 million in Q2 2025, compared to RM19.2 million in Q2 2024, primarily due to lower occupancy at Klang Valley hotels stemming from fewer one-off events and the temporary closure of several Middle Eastern airspaces in June 2025. Correspondingly, NPI fell by 16% to RM15.6 million, from RM18.5 million in the same quarter last year. The segment’s performance was weighed down by a soft first quarter, impacted by the Ramadan period and subdued demand for Meetings, Incentives, Conferences, and Exhibitions (“MICE”), compounded by the typical mid-year seasonal slowdown. However, occupancy has started to recover, paving the way for a rebound in the second half of the year.
The Office segment registered a slight decline in revenue, easing 2% to RM20.4 million in Q2 2025 from RM20.8 million a year earlier, while NPI dipped 6% to RM12.2 million from RM13.0 million, mainly due to a marginal decrease in occupancy.
The Services segment recorded revenue and NPI of RM9.8 million in Q2 2025, marking a 2.3% increase following the annual rental reversion in line with the master lease agreement for the Sunway university & college campus.
The Industrial & Others segment recorded a near 100% increase in revenue to RM4.5 million in Q2 2025, up from RM2.2 million in the same period last year. NPI rose by 57% to RM3.2 million from RM2.0 million in Q2 2024. The improved performance was driven by rental contributions from new tenants at Sunway REIT Industrial – Petaling Jaya 1, along with the addition of Sunway REIT Industrial – Prai following its acquisition on 24 October 2024.
The Acting Chief Executive Officer / Chief Financial Officer of Sunway REIT Management Sdn. Bhd., Ng Bee Lien, remarked, “We are pleased with the resilient performance of Sunway REIT in the second quarter of 2025, supported by sustained momentum in our Retail segment and continued growth from the Industrial & Others segment. The strong contributions from newly acquired assets and active asset enhancement efforts have enabled us to deliver robust growth. While the Hotel and Office segments experienced temporary softness due to seasonal factors and external disruptions, we are seeing early signs of recovery, particularly in the hospitality segment. We remain focused on strengthening our portfolio resilience and unlocking long-term value through strategic acquisitions, proactive leasing, and disciplined capital management.”
She added, “Further, the reduction in the Overnight Policy Rate (“OPR”) of 25bps by Bank Negara Malaysia is a welcomed development for Sunway REIT. As a yield-focused investment vehicle, lower borrowing costs will help improve interest margins and support our capital management strategy. This monetary easing provides additional headroom to pursue yield-accretive acquisitions and asset enhancement initiatives, reinforcing our commitment to deliver sustainable returns to unitholders.”
Sunway REIT is pleased to share that it has been recognised among the Top 50 ASEAN Public Listed Companies (“PLCs”) at the esteemed ASEAN Corporate Governance Awards 2025, where top-performing PLCs demonstrating strong governance frameworks and practices in line with global standards are celebrated with focus on transparency, accountability and board effectiveness.
Building on this recognition, Sunway REIT also marked notable progress on the sustainability front, attaining the GreenRE Platinum Certification for Sunway College – North & South Building under the Existing Non-Residential Rating Tool, and securing an upgrade in its FTSE Russell ESG Rating from Band 3 to Band 4 reflecting Sunway REIT’s continued commitment to environmental, social, and governance excellence.
In a separate development, on 6 August 2025, RAM Ratings re-affirmed the AA2 corporate credit rating of Sunway REIT, along with the ratings of debt facilities under its funding vehicles, namely the AA1(s) and AA2(s) ratings of SUNREIT Bond Berhad’s Medium Term Note Programme, the A1(s) rating of SUNREIT Perpetual Bond Berhad’s Perpetual Note Programme and P1(s) rating for SUNREIT Capital Berhad’s Commercial Paper Programme. In its rating report, RAM Ratings cited Sunway REIT’s favourable market position, with a prime and diversified assets and tenant mix, substantial financial flexibility and healthy debt coverage as factors anchoring the rating affirmations.
