KUALA LUMPUR (Aug 12): Sunway REIT (KL:SUNREIT) raised distribution per unit by nearly 11% as property income expanded in the second quarter with better revenue from shopping malls and hotels.

Net property income for the three months ended June 30, 2026 (2QFY2026) rose 5.2% to RM162.98 million from the same quarter a year earlier as rentals grew faster than expenses, the real estate investment trust said in an exchange filing on Wednesday.

"We remain confident in Sunway REIT’s growth trajectory, supported by the resilience and diversification of our portfolio,” said Sunway REIT CEO Derek Teh Wan Wei.

The real estate investment trust owns and manages a diversified portfolio of 28 properties, including the flagship Sunway Pyramid Mall, hotels, offices, hypermarkets and industrial properties, worth more than RM10 billion combined.

Sunway Pier, an old ferry terminal complex in Port Klang, has been demolished and designated for redevelopment into a retail-centric tourist destination. The project will cost an estimated RM462 million and is expected to be completed by the latter half of 2028.

“The retail segment is expected to continue benefiting from high occupancy levels, positive rental reversions and the full-year contributions from AEON Mall Seri Manjung and the refurbished Sunway Carnival Mall,” Teh said.

Sunway REIT’s hotels, meanwhile, are well-positioned to capture stronger tourism and business travel demand while its offices are seeing improving leasing momentum, he added.

For the first six months, net property income totalled RM327.4 million, an increase of 4.9% when compared to the same period last year as rentals and other revenues rose while operating expenses fell.

Semi-annual income distribution per unit is 6.28 sen, up from 5.68 sen last year, supported by reduced borrowings and a lower average interest rate. The ex-date is Aug 27 and the income will be paid out to unitholders on Sept 11.