Broker Name: Maybank Investment Bank Berhad
Date of Report: November 11, 2025
Excerpt from Maybank Investment Bank Berhad report.
- Sunway REIT’s (SREIT MK) 3Q25 results were above expectations, with 9M25 core net profit at 80% of Maybank’s forecast and 74% of consensus, driven by strong retail rental income and disposal gains.
- Distributable income jumped 61% YoY to MYR143.6m, supported by a MYR41m gain from the disposal of Sunway University.
- Retail and hotel segments drove growth, with high retail occupancy (99%) and strong hotel occupancy (76%), while office occupancy dipped slightly but is expected to recover.
- Sunway REIT’s FY25–27E earnings forecasts were raised by 4.5-4.8%, reflecting stronger rental performance and higher distributable income due to asset disposals.
- Target price raised to MYR2.31 (+12%) and upgraded to BUY, reflecting improved outlook and higher income assumptions.
- Ongoing and future developments (AEIs, new hotels) are expected to drive incremental growth beyond FY27, with gearing expected to remain manageable.
- Potential risks include consumer sentiment, tourism volatility, and project cost overruns, but upside remains from sustained retail/hotel recovery and further yield-accretive acquisitions.
Report Summary:
- Sunway REIT’s latest results outperformed expectations, mainly due to strong retail and hotel performance, as well as gains from asset disposals.
- The outlook is positive, with raised earnings forecasts and a higher target price, supported by ongoing asset enhancements and robust sector fundamentals.
Above is an excerpt from a report by Maybank Investment Bank Berhad. Clients of Maybank Investment Bank Berhad can be the first to access the full report from the Maybank Investment Bank Berhad website: www.maybank.com/investment-banking
