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Research by RHB
Buy – TP RM1.77

“Bright Prospects Ahead; Maintain BUY"

Maintain BUY, with new DDM-derived MYR1.77 TP from MYR1.74, 12% upside and c.7% FY25F yield. We believe Sunway REIT’s diverse property portfolio and active acquisition strategy will be its key earnings driver. In the medium term, retail rental rates should be boosted following the ongoing asset enhancement initiative (AEI) in Sunway Pyramid and Sunway Carnival, as well as our expectation of hotel room rates remaining high as occupancy rates continue to improve. With gearing at 43%, the REIT will likely need to fund future acquisitions via equity.

Analysts:
Wan Muhammad Ammar Affan 
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Loong Kok Wen CFA 
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$KLSE-SUNREIT
Research by RHB
Buy – TP RM1.77

“Bright Prospects Ahead; Maintain BUY"

Maintain BUY, with new DDM-derived MYR1.77 TP from MYR1.74, 12% upside and c.7% FY25F yield. We believe Sunway REIT’s diverse property portfolio and active acquisition strategy will be its key earnings driver. In the medium term, retail rental rates should be boosted following the ongoing asset enhancement initiative (AEI) in Sunway Pyramid and Sunway Carnival, as well as our expectation of hotel room rates remaining high as occupancy rates continue to improve. With gearing at 43%, the REIT will likely need to fund future acquisitions via equity.

Analysts:
Wan Muhammad Ammar Affan 
ammaraffan@rhbgroup.com
Loong Kok Wen CFA 
loong.kok.wen@rhbgroup.com

$SUNREIT / 5176 (SUNWAY REAL ESTATE INVESTMENT TRUST)