RHB Upgrades SUNREIT to Buy After 20% Slide, Highlights 7% Dividend Yield

Ng Han Siang (Einod) · November 11, 2026

AI-assisted, reviewed by Ng Han Siang (Einod)

RHB Investment Bank analysts Loong Kok Wen and Aidil Puzi upgraded Sunway Real Estate Investment Trust to “Buy” from “Neutral”, although they lowered their target price to RM2.35 from RM2.45, implying 16.3% upside. Following an approximately 20% share-price decline over six months, they consider valuations attractive, supported by resilient retail operations, a proven refurbishment track record and a projected 6.6% distribution yield for 2027.

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The company's 9M26 core earnings of approximately RM349 million fell 2% year-on-year but met expectations. Excluding RM21 million in disposal gains recorded a year earlier, underlying earnings grew approximately 4%. Retail net property income rose 12%, supported by completed refurbishments and improved tenant mixes at Sunway Carnival, Sunway Putra Mall and Sunway Pyramid. Lower financing costs also helped offset weaker hotel contributions.

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Looking ahead, the analysts expect Sunway 163 Mall’s phased reopening from December 2026 and further improvements at Sunway Pyramid in 1Q27 to support rental growth. Larger developments, including Sunway Pier and the new Seberang Jaya hotel, should contribute more meaningfully from 2028 onwards.

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As of 9:04 a.m. on November 11, Sunway Real Estate Investment Trust’s unit price fell 0.5% to RM2.02.

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Disclaimer: All content is AI-aggregated from public sources for informational and educational purposes only. StockTipRatings.com does not constitute investment advice. Past performance and historical statistics are no guarantee of future returns.

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