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THE earnings season for the fourth and final quarter of 2020 has yet to come to an end a one-month extension was given by the regulators as a temporary relief measure because of the Covid-19 pandemic but based on companies that have already submitted their reports, results are encouraging.
A quick look at 270 listed companies on Bursa Malaysia with a market capitalisation of RM500 million or more shows that 151 recorded an improvement in quarterly earnings while 119 reported a decline.
RHB Research, in a March 2 strategy note, describes the December 2020 quarter as encouraging, with 2021-2022 forecast core earnings still largely intact notwithstanding a last-minute RM2.83 billion global settlement provision by AMMB Holdings Bhd and excluding positive earnings revisions for rubber glove stocks.
KUALA LUMPUR (Feb 10): Analysts have cut the target price of Sunway Real Estate Investment Trust (REIT) as they anticipate the group s retail segment to remain weak in the near term.
Hong Leong Investment Bank (HLIB) Research reiterated its hold call on the group but lowered its target price to RM1.48 (from RM1.65 previously) based on the financial year 2022 ending June 30 (FY22) dividend per unit on targeted yield of 5.1%, derived from two-year historical average yield spread between Sunway REIT and 10-year MGS.
HLIB Research analyst Farah Diyana Kamaludin said the research house expects Sunway REIT’s hotel segment to remain weak in the near term following bleak hospitality industry along with temporary closure of Sunway Resort Hotel due to refurbishment since July 2020.
KUALA LUMPUR (Feb 9): Sunway Real Estate Investment Trust's (REIT) net property income (NPI) fell 43.4% to RM66.01 million for the three months ended Dec 31, 2020, from RM116.62 million in the corresponding three months a year ago, due to lower contributions from its retail and hotel segments that were impacted by the Covid-19 pandemic.
THE total value of transactions linked to real estate investment trusts (REITS) this year was about RM2 billion, the bulk of which involved office assets, followed by industrial assets. In contrast, the total value in 2019 was just shy of RM300 million.
Not surprisingly, deals involving hospitality and retail assets the two sectors badly hit by Covid-19 were lacking.
“Investors are wary about market conditions and the impact of Covid-19 on offices, so the major office deals [this year] were related-party acquisitions by REITs, where the buyer has the comfort of knowing the asset and all the tenants intimately,” says Nabeel Hussain, Savills Malaysia’s deputy managing director and head of capital markets, when asked what he thought was the common theme among transactions by REIT players this year.