Sunway REIT is one of the largest listed diversified REITs in Malaysia. As of December 2025, it owns 28 assets with a total property value of RM10.2 billion. Its assets are predominantly retail-focused and concentrated in the Klang Valley, complemented by a portfolio of hotels, offices, and industrial assets across Johor, Penang, and Perak.
The REIT has expanded significantly since its listing in 2010, at which time it held only eight assets. Since then, it has acquired assets worth RM2.7 billion and added RM4.0 billion to the portfolio value through net fair value gains, asset enhancement initiatives (AEIs), and property development activities. Here are eight things I learned from the 2026 Sunway REIT AGM.
1. Revenue increased 16.6% year-on-year to RM894.3 million in 2025, driven by stronger renewals and performance across the retail and industrial & others segments. The improved performance was notably supported by:
- Full-year contributions from Sunway REIT Hypermarkets, Sunway 163 Mall, Sunway REIT Industrial – Prai, and Sunway Kluang Mall
- Recently acquired AEON Mall Seri Manjung during the year
- The refurbishment of the existing wing of Sunway Carnival Mall and the Oasis precinct at Sunway Pyramid Mall in the past two years
- Healthy average rental reversion at 8.5% in 2025
2. Net property income increased 15.5% year-on-year to RM658.0 million in 2025. During the year, the retail segment continued to be the largest contributor in terms of net property income.
In 2025, the REIT’s top five largest net property income contributors were Sunway Pyramid Mall, Sunway Carnival Mall, Sunway Resort Hotel, Sunway Pinnacle (office), and Sunway Putra Mall (excluding Sunway university & college campus as it was disposed during the year).
3. Distribution per unit (DPU) surged 44.8% from 10.0 sen in 2024 to 14.48 sen in 2025, which is a record high. Of which, 0.61 sen was capital gains from the disposal of Sunway university & college campus. Proceeds from the disposal were also redeployed to pare down loans and recycled into AEIs as well as the recent acquisition of AEON Mall Seri Manjung with higher yields.
DPU increased 10.4% year-on-year to 3.18 sen in Q1 2026, sustaining potential DPU growth. Future DPU growth is expected to be driven by:
- The AEIs at Sunway 163 Mall, Sunway Kluang Mall, and Sunway Pyramid Mall
- Full-year contributions from the existing wing of Sunway Carnival Mall as well as AEON Mall Sri Manjung
- Higher occupancy of the industrial & others segment.
4. CEO Derek Teh Wan Wei explained to unitholders that the impact of the Middle East conflicts on the REIT is limited. The retail segment remains largely unaffected as it depends more on domestic consumption rather than tourist demand. Retail footfall across its malls were healthy and in fact increasing. Retail footfall at Sunway Carnival Mall in Penang recorded healthy growth following the refurbishment as well as the opening of its new wing.
There were some hotel booking cancellations as medium- and long-haul travels were disrupted by the ongoing conflicts. Guests from the Midde East accounted for about 6% of international room nights. Further, hotels owned by the REIT are leased out in long term. Daily business activities are managed by the hotel lessees while the REIT remains largely unaffected.
5. The development of Sunway Pier is ongoing and is expected to be completed by 2H2028. Sunway Pier is positioned as a retail-centric tourist destination given its proximity to the cruise jetty. The asset is expected to generate yields above than that of the portfolio with a development budget of RM462 million.
6. The REIT aims to grow its assets under management to at least RM14 billion as part of its TRANSCEND 2027 plan. Management is actively exploring opportunities within the industrial sectors including data centres and smart warehouses. The REIT has the rights of first refusal to commercial developments owned by its sponsor Sunway Group including Sunway Velocity.
7. Sunway REIT also announced the disposal of Sunway Hotel Seberang Jaya at RM60 million, which is 15.4% and 9.1% above its acquisition cost and market value respectively. The disposal yield was 5.3%, which is below the portfolio level at 6.5%, in line with the REIT’s asset recycling strategy. The proceeds will be used to partly finance the construction of a new hotel atop Sunway Carnival Mall at RM140 million. The development started in 2025 and is expected to complete by the end of 2027.
8. Average cost of debt stood at 3.8% while gearing inclusive of perpetual notes totalled 44.1% in 2025. Majority of the debt due in 2026 were refinanced and management expressed confidence in refinancing the remaining outstanding debt.
The fifth perspective
Despite ongoing geopolitical uncertainties and the rising cost of living that dampen consumer sentiment, Sunway REIT continues to deliver consistent DPU to unitholders, backed by its long hotel, hypermarket, and industrial leases, as well as sustained retail performance.
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