Sunway REIT posts RM356m interim profit

Sunway Real Estate Investment Trust posted RM355.9 million pre-tax profit for the six months ended Dec 31, 2010, on the back of RM157.778 million revenue.

For the second quarter, the company registered RM45.2 million pre-tax profit on the back of RM85.333 million revenue.

In a filing to Bursa Malaysia, it said the better performance for the current quarter was contributed by the commencement of new tenancy terms pursuant to renewals at the Sunway Pyramid Shopping Mall about one million square feet of net lettable area achieved an average increase in rental rates of 17.1 per cent for the three-year term.

The stronger performance at Sunway Resort Hotel & Spa and Pyramid Tower Hotel during year-end holiday season further contributed to improved results for the current quarter.

On the prospect, it said, visitorships to Sunway Pyramid Shopping Mall registered strong quarter-on-quarter growth of 9.7 per cent, whilst Sunway Carnival Shopping Mall recorded moderate growth of 2.9 per cent due to the year-end mega sales campaign and festive and school holidays.

It said occupancy remain strong with Sunway Pyramid at 98 per cent, Sunway Carnival at 93 per cent and Suncity Ipoh Hypermarket at 100 per cent.

The Sunway REIT Management Sdn Bhd believes the Sunway REIT retail properties, especially Sunway Pyramid Shopping Mall, will be able to enjoy another year of solid performance in tandem with the expectation of continued robust domestic consumption, pursuit of lifestyle trends and thriving Sunway Integrated Resort City.

As for the hotel market, it said the Sunway REIT’s hotel properties would continue to perform well in line with the positive outlook for the industry.

In the quarter under review, the Sunway Resort Hotel & Spa and Pyramid Tower Hotel enjoyed strong occupancy (Sunway Resort Hotel & Spa: 70.8 per cent; Pyramid Tower Hotel: 86.3 per cent) and average daily rates (Sunway Resort Hotel & Spa: RM407; Pyramid Tower Hotel: RM258) in conjunction with the year-end school holidays and MICE (meetings, incentives, conferences and exhibitions).

Meanwhile, Sunway Hotel Seberang Jaya, a four-star corporate hotel, enjoyed steady performance as the domestic and global economy recover.

The office market, occupancy at both the Sunway REIT’s office properties, has been stable at 99.5 per cent for Menara Sunway and 97.0 per cent at Sunway Tower.

The occupancy for Menara Sunway and Sunway Tower is expected to remain stable and the rental rates are expected to increase moderately for the renewals in 2011. — Bernama

Axis-REIT records RM16m profit in Q4

AXIS REIT Managers Bhd has reaped RM16.16 million profit in its fourth quarter ended December 2010 and plans to distribute 5.25 sen a unit to investors.

"Last year, we saw the highest gain in fair value of investment properties for a single year since the listing of the trust," said chief executive officer Stewart Labrooy. He said the company revalued 14 of its stable properties.

"It has led to an increase in the net asset value of the trust to close at RM2.009 a unit compared with RM1.842, a year ago," he told reporters at a briefing in Kuala Lumpur yesterday.

In the fourth quarter of 2010, Axis-REIT bought three more properties, namely Tesco Hypermarket, Axis PDI Centre and Axis Technology Centre. It also concluded the purchase of two IDS warehouses in Seberang Prai, Penang.

Two days ago, Axis-REIT said it will sell an industrial complex in Port Klang for RM14.5 million by June 2011.

"We need to maintain growth by culling smaller assets where the returns have stagnated. We will bring in assets that have capital gain potentials," said Labrooy.

"We'll gain RM764,000 from the sale of industrial complex in Port Klang and this will be chanelled back to unitholders," he added.

On outlook for 2011, he said Axis-REIT is looking to buy five more warehouses in Johor and the Klang Valley and two more office blocks in Cyberjaya. So far, the company has set aside RM365 million for these acquisitions.

Axis-REIT to reposition assets

Axis Real Estate Investment Trust (Axis-REIT) aims to enhance and reposition its assets to increase performance, said Axis REIT Managers Bhd chief executive officer Stewardt Labrooy.

Axis REIT Managers is the manager of Axis-REIT.

"The aim of the asset enhancement is to assess the REIT's portfolio from a property player's perspective. It will increase the occupancy rate, rental as well as valuation of the properties," Labrooy told a media briefing today.

He said asset enhancement was currently being undertaken for Menara Axis, Crystal Plaza, Fuji Xerox Asia Pacific and Infinity Centre.

Major enhancements would also be undertaken this year on Kayangan Depot in Shah Alam and the Cycle & Carriage complex in Petaling Jaya, he said.

He said the Kayangan Depot building would be repositioned to face Section 15 Shah Alam roundabout while building cladding systems and power supply would be improved and upgraded.

As for the Cycle & Carriage complex, Labrooy said refurbishment of the existing building would include enhancing the exterior and adding new space for optimium use.

He said Axis-REIT, which currently owned a portfolio of 26 commercial, office and industrial real estate in Malaysia, managed total assets worth RM1.3 billion.

Last year, Axis REIT Managers acquired Tesco Hypermarket, Axis PDI Centre and Axis Technology Centre and concluded the purchase of two warehouses from IDS Logistics Services (M) Sdn Bhd in Seberang Prai, Penang.

Axis-REIT recorded a higher pre-tax profit of RM101.401 million for the financial year ended December 31, 2010, compared with RM61.976 million recorded in 2009.

Revenue increased 25 per cent to RM89.851 million from RM71.870 million previously.

The realised income before taxation and available for distribution amounted to RM52.598 million, for the year under review, bringing the total distribution in 2010 to 16 per cent per unit. — Bernama