KUALA LUMPUR : CIMB Equities Research is asking investors to switch to Axis REIT if they want exposure to Malayia's REIT market. The research house said in a report the earnings outlook for Sunway REIT looks subdued this year due to the closure of Sunway Putra Place and the lack of asset injections. "Furthermore, given the risk of rising interest rates, we believe its share price performance will also be subdued, it said It noted that Sunway REIT's core net profit of RM117.4 million was in line with 50 per cent of its full-year estimate, but below consensus at 43 per cent. It added that Sunway REIT's earnings outlook for this year will remain uninteresting. CIMB Research said Sunway REITs' second-quarter revenue grew by 4.2 per cent year-on-year driven by improvements in average rental rates for Sunway Pyramid, resulting from tenancy renewals and new tenancies. About 902,000 sq ft of net lettable area was renewed or replaced. The strong improvement for Sunway Pyramid's rental rates were offset slightly by the closure of Sunway Putra Mall , which is currently undergoing a major asset enhancement initiative.
Most Popular Stories
- Obama Administration Releases Proposal to Regulate For-Profit Colleges
- Elizabeth Vargas' Husband Marc Cohn Addresses Rumors
- Keurig Adds Peet's coffee, Alters Starbucks deal
- Quiznos Files for Chapter 11
- U.S. to Relinquish Gov't Control Over Internet
- Vybz Kartel Convicted of Murder
- U.S. Consumer Sentiment Falls in Early March
- SoCalGas Reaches Record Spend on Diversity Suppliers
- Is Malaysian Airlines Flight 370 in Andaman Sea?
- Koch Brothers Step up Anti-Obamacare Campaign