AMINVESTMENT Bank has maintained its buy recommendation on Sunway REIT (SREIT) with an unchanged fair value of RM2.16 based on a target yield of 5.0% over calendar year 2020 (CY20F) distributable income.
In a note today (Feb 14), AmInvestment Bank said SREIT’s first half of financial year 2020 (1HFY20) distributable income of RM146.3 mil came in within the research house’s expectation at 48% of its own and consensus’ full-year estimates.
SREIT’s 1HFY20 revenue grew by 10.1% year-on-year to RM311.2 mil, mainly attributable to the contribution from the newly acquired Sunway University and College campus and stronger performance across all segments, particularly hotels.
The hotel sector’s 1HFY20 revenue and net property income climbed by 15.0% and 18.0% to RM46.2 mil and RM43.1 mil respectively, mainly due to higher income in Sunway Resort Hotel & Spa, Sunway Pyramid Hotel and Sunway Clio Property.
“We keep our financial year 2020 (FY20F), FY21F, FY22F distributable income unchanged at RM308.8 mil, RM326.7 mil and RM340.2 mil respectively,” it said. – Feb 14, 2020, Bernama
