Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — Q1 2022 Earnings Presentation
44 slides from Sunway Real Estate Investment Trust's earnings presentation, May 18, 2022
Slide 1: Financial Results First Quarter Ended 31 March 2022
FINANCIAL RESULTS First Quarter Ended 31 March 2022 (FYE 31 December 2022) Date: 18 May 2022
Slide 2: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any security of Sunway Real Estate Investment Trust (“Sunway REIT”) and no part of it shall form the basis of, or be relied on in conn
Slide 3: Table of Contents
Table of Contents 1. Financial Highlights (1Q2022) 2. Financial Results (1Q2022) 3. Segmental Financial Results (1Q2022) 4. Property Development Activities 5. Market Outlook 6. Investor Relations Appendix - Property Performance (YTD 1Q2022) 3 Empowering Businesses • Curating Experiences • Enriching
Slide 4: Financial Highlights (1Q2022)
FINANCIAL HIGHLIGHTS (1Q2022) 4 Empowering Businesses • Curating Experiences • Enriching Lives
Slide 5: Financial Highlights – 1Q2022
Financial Highlights – 1Q2022 Highlights 1Q 2022 1Q 2021^ No. of Properties 19 18 Property Value (RM'billion) 8.879 8.643 Units in Circulation 3,424,807,700 3,424,807,700 Unit Price as at 31 March 2022/2021 (RM) 1.41 1.49 Market Capitalisation (RM'billion) 4.829 5.103 Net Asset Value ("NAV") Per Uni
Slide 6: Financial Highlights – 1Q2022 (Cont'd)
Financial Highlights – 1Q2022 (Cont’d) Reported in RM’000 Gross Revenue for 1Q2022 increased by 47.7% or 47.7% RM49.7 million mainly contributed by the retail segment benefitting from pent-up demand and festive season which boosted the recovery of retail footfall to pre- pandemic level as well as ma
Slide 7: Financial Results (1Q2022)
FINANCIAL RESULTS (1Q2022) 7 Empowering Businesses • Curating Experiences • Enriching Lives
Slide 8: Statement of Comprehensive Income – Consolidated
Statement of Comprehensive Income – Consolidated 1. Interest income for 1Q2022 was lower than 1Q2021 due to lower deposits with financial institutions as progress payments were made for the refurbishment at Sunway Resort Hotel and expansion works at Sunway Carnival Shopping 1 Mall. 2 2. Changes in f
Slide 9: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 31.03.2022 31.12.2021 31.03.2022 31.12.2021 (Unaudited) (Audited) (Unaudited) (Audited) RM'000 RM'000 RM'000 RM'000 ASSETS Non-current assets Units in circulation ('000 units) 3,424,808 3,424,808 1 Inv estment properties 8,842,771 8,701,745 Inv estment
Slide 10: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 1. Investment properties increased by RM141.0 million pursuant to the completion of the acquisition of Kompleks Dato’ Shaari Jihin on 26 January 2022 as well as on-going capital expenditure mainly for the expansion of Sunway Carnival Shopping Mall and S
Slide 11: Statement of Cash Flows – Consolidated
Statement of Cash Flows – Consolidated First Quarter ended 31.03.2022 31.03.2021 * 1 Net cash from operating activities for 1Q2022 of RM108.7 RM'000 RM'000 million mainly comprise of cash receipt from hotel lessees and tenants, refundable deposits, partially net off by cash paid for OPERATING ACTIVI
Slide 12: Financing Profile as at 31 March 2022
Financing Profile as at 31 March 2022 Facility Limit Amount RM'million RM'million Revolving Loan USD95.5million 305.0 1 Commercial Papers (CP) / 2 3,000.0 1,690.0 Revolving Loan (RL) 3 Unrated MTNs 10,000.0 1,410.0 Total Gross Borrowings 3,405.0 Unamortised transaction costs (0.3) Total Borrowings 3
Slide 13: Segmental Financial Results (1Q2022)
SEGMENTAL FINANCIAL RESULTS (1Q2022) 13 Empowering Businesses • Curating Experiences • Enriching Lives
Slide 14: Segmental Revenue in 1Q2022 – Realised
Segmental Revenue in 1Q2022 – Realised Total Retail Revenue Revenue (by Property) (RM'million) 83% RM 98.4 million (1Q2022) vs RM 53.7 million (1Q2021) Sunway 77.6 Pyramid Mall 38.6 The retail segment recorded gross revenue of RM98.4 Sunway 9.4 million for 1Q2022, an increase of 83% or RM44.7 millio
Slide 15: Segmental Revenue in 1Q2022 – Realised (Cont'd)
Segmental Revenue in 1Q2022 – Realised (Cont’d) Revenue (by Property) (RM'million) Total Hotel Revenue 29% RM 18.5 million (1Q2022) Sunway Resort 0.5 Hotel vs RM 14.4 million (1Q2021) 0.2 Sunway 0.3 Pyramid The hotel segment recorded gross revenue of RM18.5 Hotel 0.2 million in 1Q2022, an increase o
Slide 16: Segmental Revenue in 1Q2022 – Realised (Cont'd)
Segmental Revenue in 1Q2022 – Realised (Cont’d) Revenue (by Property) (RM'million) Total Office Revenue 1% RM 19.4 million (1Q2022) 4.4 Menara vs RM 19.3 million (1Q2021) Sunway 4.3 0.8 Sunway The office segment recorded gross revenue of RM19.4 Tower million in 1Q2022, a marginal increase of 1% or R
Slide 17: Segmental Revenue in 1Q2022 – Realised (Cont'd)
Segmental Revenue in 1Q2022 – Realised (Cont’d) Total Services Revenue Total Industrial & Others Revenue 3% RM 15.8 million (1Q2022) RM 1.7 million (1Q2022) 10% vs RM 15.3 million (1Q2021) vs RM 1.5 million (1Q2021) The services segment contributed revenue of RM15.8 Sunway REIT Industrial - Shah Ala
Slide 18: Segmental NPI and NPI Margin in 1Q2022 – Realised
Segmental NPI and NPI Margin in 1Q2022 – Realised NPI (by Property) (RM'million) Total Retail NPI 194% RM 70.3 million (1Q2022) 60.1 vs RM 24.0 million (1Q2021) Sunway Pyramid Mall 19.0 Net property income (NPI) of retail segment recorded an increase of 194% or RM46.3 million compared to 1Q2021, Sun
Slide 19: Segmental NPI and NPI Margin in 1Q2022 – Realised (Cont'd)
Segmental NPI and NPI Margin in 1Q2022 – Realised (Cont’d) NPI (by Property) (RM'million) Total Hotel NPI Sunway 0.5 36% RM 17.4 million (1Q2022) Resort Hotel (0.2) vs RM 12.8 million (1Q2021) Sunway 0.1 Pyramid Hotel 0.0 * NPI of hotel segment increased by 36% or RM4.6 million compared to 1Q2021, m
Slide 20: Segmental NPI and NPI Margin in 1Q2022 – Realised (Cont'd)
Segmental NPI and NPI Margin in 1Q2022 – Realised (Cont’d) Total Office NPI NPI (by Property) (RM'million) 2% RM 13.7 million (1Q2022) 2.7 vs RM 13.4 million (1Q2021) Menara Sunway 2.9 NPI of office segment recorded an increase of 2% or RM0.3 0.8 Sunway million compared to 1Q2021, mainly due to the
Slide 21: Segmental NPI and NPI Margin in 1Q2022 – Realised (Cont'd)
Segmental NPI and NPI Margin in 1Q2022 – Realised (Cont’d) Total Services NPI Total Industrial & Others NPI 3% RM 15.8 million (1Q2022) 10% RM 1.7 million (1Q2022) vs RM 15.3 million (1Q2021) vs RM 1.5 million (1Q2021) The increase of 3% of NPI in services segment is mainly The increase of 10% of NP
Slide 22: Property Development Activities (1Q2022)
PROPERTY DEVELOPMENT ACTIVITIES (1Q2022) 22 Empowering Businesses • Curating Experiences • Enriching Lives
Slide 23: Property Development Activities
Property Development Activities Expansion of Sunway Carnival Shopping Mall Sunway Resort Hotel Refurbishment Estimated total property development RM436.0 million RM261.0 million cost (including land) Cummulative cost incurred from initiation RM289.7 million RM156.3 million to YTD 1Q CY2022 Expected
Slide 24: General Outlook
General Outlook o International Monetary Fund (IMF) projected the global economic growth to moderate from 6.1% in 2021 to 3.6% in 2022 (January 2022 forecast: 4.4%). The downward revision reflects the anticipated impact caused by Ukraine-war which may result in spillover effects globally on commodit
Slide 25: General Outlook
General Outlook o The Malaysian economy expanded by 3.1% in 2021, from a contraction of 5.6% in 2020. Growth was primarily supported by resumption of economic activity following the easing of containment measures under the National Recovery Plan. o Malaysia registered a gross domestic product (GDP)
Slide 26: General Outlook
General Outlook o Headline Consumer Price Index (CPI) averaged at 2.2% in 1Q 2022, reflecting dissipating base effect from lower domestic fuel price in 2021 and the absence of the base effect from electricity tariff rebates in 2020. In an environment of high input costs and improving demand, headlin
Slide 27: Retail Segment
Retail Segment o According to Retail Group Malaysia (RGM), Malaysia’s retail industry recorded a spike in growth of 26.5% in 4Q 2021, boosted by festive spending. Despite that, Malaysia’s retail sales contracted by 2.3% for the full year of 2021. o The RGM projected Malaysia’ retail sales growth of
Slide 28: Retail Segment
Retail Segment o The Manager expects the retail segment to record strong improvement in its financial performance in FY2022, underpinned by stronger domestic economic growth, improved consumer sentiment on the back of stable employment prospects and new income contribution from Sunway Carnival Mall
Slide 29: Hotel Segment
Hotel Segment o On 1 April 2022, Malaysia reopened its borders to all countries for quarantine-free travel with no mandatory quarantine requirements for fully vaccinated individuals, which augur well to support the recovery of the hotel industry. That said, Malaysian Association of Hotels (MAH) repo
Slide 30: Office Segment
Office Segment o All sectors of the economy are allowed to operate and 100% of the workforce are able to return to the workplace with the lifting of capacity and operating hours limit for business premises. These relaxations is supportive of business activities. o Despite that, the existing office e
Slide 31: Industrial & Others Segment
Industrial & Others Segment o Malaysia’s Industrial Production Index (IPI) grew 5.1% y-o-y in March 2022, largely owing to increase in Manufacturing (+6.9%) and Electricity (+0.8%) index. The rise in manufacturing index was mainly contributed by growth in Electrical & Electronics products (+18.6%),
Slide 32: Unit Price Performance from IPO to 1Q FY2022
Unit Price Performance from IPO to 1Q FY2022 Unit Price Performance of Sunway REIT versus Benchmarks (8 July 2010 – 31 March 2022) 120.0% 100.0% 80.0% Sunway REIT +56.7% 60.0% FBM Top 100 Index 40.0% +23.4% 20.0% FBM KLCI +20.6% 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Perfor
Slide 33: Unit Price YTD Performance for FY2022
Unit Price YTD Performance for FY2022 Unit Price Performance of Sunway REIT versus Benchmarks (1 Jan 2022 – 31 Mar 2022) 4.0% 2.0% FBM KLCI 1.3% 0.0% Sunway REIT -2.0% 0.0% -4.0% Bursa Malaysia -6.0% REIT Index -0.5% -8.0% Jan 2022 Feb 2022 Mar 2022 Performance Statistics (1 Jan 2022 – 31 March 2022
Slide 34: Indices Representation
Indices Representation o FTSE Bursa Malaysia Mid 70 Index o FTSE Bursa Malaysia Emas o FTSE Bursa Malaysia Top 100 Index Index o Bursa Malaysia REIT Index o FTSE ASEAN All-Share Index o FTSE ASEAN Malaysia Index o FTSE ASEAN All-Share ex Developed Index o FTSE4Good Bursa Malaysia Index o GPR APREA C
Slide 35: Unitholders' Composition (as at 31 March 2022)
Unitholders’ Composition (as at 31 March 2022) Foreign Retail 7.5% 6.8% Sunway Berhad 40.9% Institutions & Corporates 52.4% Domestic 92.5% March 2022 December 2021 Q-o-Q Change No of unitholders 30,043 29,069 +974 (+3.4%) Retail unitholders 6.8% 6.2% +0.6% Foreign unitholders 7.5% 7.3% +0.2% Sunway
Slide 36: Analysts Recommendation (as at March 2022)
Analysts Recommendation (as at 31 March 2022) Average Consensus Target Price = RM1.50 17.7 17.0 Target Price as at 31 Mar 2022 (RM) Upside / Downside to unit price as at 31 Mar 2022 (%) 12.8 12.1 9.9 9.9 9.9 9.2 6.4 2.8 2.8 2.8 1.66 1.65 1.59 1.58 1.55 1.55 1.55 1.54 1.45 1.45 1.45 1.43 1.4 1.43 1.4
Slide 37: Comparative Yields for Various Assets (as at 31 March 2022)
Comparative Yields for Various Assets (as at 31 March 2022) 6.10%5 5.41%2 5.04%1 3.85%3 2.00%6 1.71%4 Sunway REIT M-REITs 10-Year MGS Fixed Deposit EPF Yield OPR Note: 1 Distribution yield is computed based on consensus FY2022 DPU of 7.10 sen and unit price of RM1.41 as at 31 March 2022 (Source: Blo
Slide 38: Appendix: Property Performance (YTD 1Q2022)
APPENDIX: PROPERTY PERFORMANCE (YTD 1Q2022) 38 Empowering Businesses • Curating Experiences • Enriching Lives
Slide 39: Average Occupancy Rate (YTD 1Q2022) – Retail
Average Occupancy Rate (YTD 1Q2022) RETAIL 1% -1% 100% 100% 98% 98% 99% 97% 97% 97% -1% 94% 93% 90% -4% 86% S UNW AY S UNW AY S UNC IT Y IP O H S UNW AY S UNW AY C L IO R E T AIL P YR AMID C AR NIVAL HYP E R MAR K E T P UT R A MAL L R E T AIL S E GME NT YTD 1Q2022 YTD 1Q2021 Sunway Pyramid Sunwa
Slide 40: Projected Lease Expiry Schedule – Retail
Projected Lease Expiry Schedule RETAIL * Sunway Pyramid Sunway Carnival SunCity Ipoh Sunway Putra Sunway Clio Shopping Mall Shopping Mall Hypermarket Mall Retail Based on the total net Based on the total Occupied by single Based on the total Based on total NLA of lettable area (NLA) of NLA of 410,07
Slide 41: Average Occupancy Rate (YTD 1Q2022) – Hotel
Average Occupancy Rate (YTD 1Q2022) HOTEL 28% 45% 31% 29% 44% 42% 17% 15% 11% N/A N/A S UNW AY R E S O R T S UNW AY P YR AMID S UNW AY C L IO HO T E L S UNW AY C IT Y HO T E L HO T E L C L US T E R HO T E L S YTD 1Q2022 YTD 1Q2021 Sunway Resort Hotel Sunway Pyramid Hotel Sunway Clio Hotel Note 1: Th
Slide 42: Average Occupancy Rate (YTD 1Q2022) – Hotel (Cont'd)
Average Occupancy Rate (YTD 1Q2022) (Cont'd) HOTEL 16% 53% 23% 15% 42% 37% 25% 37% 35% 22% 19% 10% S UNW AY HO T E L S UNW AY P UT R A S UNW AY HO T E L HO T E L S E GME NT S E B E R ANG J AYA HO T E L GE O R GE T O W N YTD 1Q2022 YTD 1Q2021 Sunway Hotel Seberang Jaya Sunway Putra Hotel Sunway Hotel
Slide 43: Average Occupancy Rate (YTD 1Q2022) – Office
Average Occupancy Rate (YTD 1Q2022) OFFICE -1% 100% 100% 97% 98% 4% 98% 98% -1% 87% 84% 85% 83% -7% 34% 27% ME NAR A S UNW AY S UNW AY W IS MA T HE O F F IC E S UNW AY TOW ER P UT R A S UNW AY P INNAC L E S E GME NT TO W ER S UNW AY YTD 1Q2022 YTD 1Q2021 Menara Sunway Sunway Putra Wisma The Pinn
Slide 44: Projected Lease Expiry Schedule – Office
Projected Lease Expiry Schedule OFFICE Menara Sunway Sunway Putra Wisma The Pinnacle Sunway Tower Tower Sunway Sunway Based on the total Based on the total Based on the total Based on the total Based on the total NLA of 34,024 sq. ft. NLA of 43,058 sq. ft. NLA of 112,144 sq. ft. NLA of 31,984 sq. ft
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