Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — Q4 FY2016 Earnings Presentation
66 slides from Sunway Real Estate Investment Trust's earnings presentation, Aug 11, 2016
Slide 1: Sunway REIT Financial Results 4th Quarter Ended 30 June 2016
Sunway REIT Financial Results 4th Quarter Ended 30 June 2016 (FYE 30 June 2016) Announcement Date: 11 August 2016
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 2. 4Q 2016 Financial Results 3. 4Q 2016 Portfolio Performance 4. 4Q 2016 Property Performance 5. Market Outlook 6. Investor Relations Driving values through sustainable growth 3
Slide 4: 1. Financial Highlights
1. Financial Highlights Driving values through sustainable growth 4
Slide 5: Distribution Details
Distribution Details Dividend Distribution Details Distribution Period 1 April 2016 - 30 June 2016 Distribution Per Unit (DPU) (sen) 2.12 1 Notice of Entitlement 11 August 2016 Ex-Dividend Date 25 August 2016 Book Closure Date 29 August 2016 Payment Date 13 September 2016 1 Proposed income distribut
Slide 6: Financial Highlights
Financial Highlights Highlights 4Q 2016 4Q 2015 No. of Properties 14 14 Property Value (RM'billion) 6.433 6.324 No. of Units in Circulation 2,943,918,400 2,937,776,900 Unit Price as at 30 June (RM) 1.66 1.54 Market Capitalisation (RM'billion) 4.887 4.524 Net Asset Value (NAV) Per Unit (RM) 1.3549 1.
Slide 7: Financial Highlights (Cont'd)
Financial Highlights (Cont’d) Gross Revenue (RM'm) Net Property Income (RM'm) 700.0 1 500.0 2 11.8% 9.7% 600.0 507.0 400.0 373.9 500.0 1 453.5 2 340.8 7.6% 6.9% 400.0 300.0 300.0 200.0 200.0 131.9 130.3 97.1 86.7 96.7 90.2 121.2 113.8 114.0 110.8 123.6 114.9 100.0 89.9 86.5 83.2 84.4 100.0 - - 1Q 2Q
Slide 8: Financial Highlights (Cont'd)
Financial Highlights (Cont’d) Profit Before Tax (Realised) (RM'm) DPU (sen) 400.0 12.00 5.2% 2 1 5.0% 8.5% 10.00 9.18 1 2 8.73 300.0 6.9% 3.4% 262.5 242.0 8.00 200.0 6.00 4.00 100.0 73.6 2.12 2.28 2.57 2.37 67.7 60.6 56.7 2.27 2.13 2.12 2.05 60.6 63.4 63.0 58.9 2.00 - - 1Q 2Q 3Q 4Q YTD 1Q 2Q 3Q 4Q Y
Slide 9: 2. 4Q 2016 Financial Results
18.1% 2. 4Q 2016 Financial Results Driving values through sustainable growth 9
Slide 10: Statement of Comprehensive Income – Consolidated
Statement of Comprehensive Income – Consolidated 4Q 2016 4Q 2015 Change YTD 2016 YTD 2015 Change RM'000 RM'000 % RM'000 RM'000 % Gross revenue 123,585 114,937 7.5% 507,013 453,454 11.8% 1 Less : Property operating expenses (33,415) (30,517) 9.5% (133,162) (112,628) 18.2% Net property income 90,170 8
Slide 11: Statement of Comprehensive Income-Consolidated (Cont'd)
Statement of Comprehensive Income-Consolidated (Cont’d) Explanation: 1 Property operating expenses for 4Q2016 increased by RM2.9 million compared to 4Q2015 mainly due to operating expenses for Sunway Putra Mall which re-opened in 4Q2015. 2 Included in other income for 4Q2016 was a reclassification o
Slide 12: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 30.06.16 31.03.16 31.12.15 30.09.15 30.06.15 RM'000 RM'000 RM'000 RM'000 RM'000 ASSETS Non-current assets Plant and equipment 8,698 8,344 7,568 7,040 5,268 Investment properties 6,433,000 6,377,676 6,333,412 6,341,438 6,324,000 6,441,698 6,386,020 6,340
Slide 13: Debt Profile
Debt Profile Facility Limit RM'milion RM'million Loan Maturity Profile (RM'm) 800.0 Term Loan 422.0 403.21 122.4 Commercial Papers (CP) / 600.0 Revolving Loan (RL) 1,100.0 2 772.4 Unrated MTNs 1,000.0 1,000.0 400.0 3 Total Gross Borrowings 2,175.6 650.0 1 Discount on CP - 200.0 400.0 403.2 400.0 Tot
Slide 14: 3. 4Q 2016 Portfolio Performance
3. 4Q 2016 Portfolio Performance Driving values through sustainable growth 14
Slide 15: 4Q 2016 Revenue Contribution by Segment
4Q 2016 Revenue Contribution 4Q 2016 (RM'million) 123.6 4Q 2015 (RM'million) 114.9 By segment (RM'm) 13.4% 120.0 96.6 100.0 85.2 80.0 60.0 4.1% 23.5% 3.8% 40.0 14.1 14.7 20.0 7.5 9.8 5.4 5.2 - Retail Hotel Office Others 4Q 2016 4Q 2015 Note: Calculation of % of increase/decrease above varies margina
Slide 16: 4Q 2016 Revenue Contribution by Property
4Q 2016 Revenue Contribution (Cont’d) 4Q 2016 (RM'million) 123.6 4Q 2015 (RM'million) 114.9 Retail Hotel Office Others 80.0 By property (RM’m) 60.0 40.0 20.0 - Sun way Sun way Sun way Sun way SCI Sun way Sun way Sun way Sun way Sun way Sun way Resort Pyramid Ho tel Ho tel Men ara Sun way Wisma Hyper
Slide 17: 4Q 2016 Revenue Contribution (Cont'd)
4Q 2016 Revenue Contribution (Cont’d) Explanation: 1 Sunway Pyramid – Growth of 1.4% or RM1.0 million mainly due to higher average net rent per sq. ft. 2 Sunway Carnival – Higher by 2.7% or RM0.3 million for 4Q2016 compared to the preceding year corresponding quarter mainly due to higher average net
Slide 18: 4Q 2016 Revenue Contribution (Cont'd)
4Q 2016 Revenue Contribution (Cont’d) 4Q 2016 By Property % By segment Others Office4.4% Sunway Pyrami d 59.0% 6.1% Sunway Carni val 9.2% Hotel SCI Hypermarket 1.0% 11.4% Sunway Putra Mal l 8.9% Total Retai l 78.1% Retail Sunway Res ort Hotel & Spa 6.8% 78.1% Sunway Pyrami d Hotel Eas t* 0.3% Sunway
Slide 19: YTD 4Q 2016 Revenue Contribution by Segment
YTD 4Q 2016 Revenue Contribution YTD 4Q 2016 (RM'million) 507.0 YTD 4Q 2015 (RM'million) 453.5 15.1% By segment (RM'm) 450.0 382.8 400.0 332.7 350.0 300.0 250.0 23.0% 23.9% 22.8% 18.9% 200.0 3.4% 4.0% 150.0 100.0 72.9 61.3 30.2 39.1 50.0 21.1 20.4 - Retail Hotel Office Others YTD 4Q 2016 YTD 4Q 2015
Slide 20: YTD 4Q 2016 Revenue Contribution (Cont'd)
YTD 4Q 2016 Revenue Contribution (Cont’d) YTD 4Q 2016 (RM'million) 507.0 YTD 4Q 2015 (RM'million) 453.5 Retail Hotel Office Others 320.0 280.0 By property (RM’m) 240.0 200.0 160.0 120.0 80.0 40.0 - Sun way Sun way Sun way Sun way SCI Sun way Sun way Sun way Sun way Sun way Sun way Resort Pyramid Ho
Slide 21: YTD 4Q 2016 Revenue Contribution (Cont'd)
YTD 4Q 2016 Revenue Contribution (Cont’d) Explanation: 1 Sunway Pyramid, Sunway Carnival, Sunway Putra Mall, Sunway Hotel Seberang Jaya, Sunway Putra Hotel, Menara Sunway, Sunway Tower – The variance for YTD 4Q2016 are as per explanation on page 17. 2 Sunway Resort Hotel & Spa - Achieved a better pe
Slide 22: YTD 4Q 2016 Revenue Contribution (Cont'd)
YTD 4Q 2016 Revenue Contribution (Cont’d) YTD 4Q 2016 By Property % By segment Others Sunway Pyrami d 58.2% Office 4.2% Sunway Carni val 8.7% 6.0% Hotel SCI Hypermarket 1.0% 14.4% Sunway Putra Mal l 7.6% Total Retai l 75.5% Retail Sunway Res ort Hotel & Spa 8.0% 75.4% Sunway Pyrami d Hotel Eas t* 3.
Slide 23: 4Q 2016 NPI Contribution by Segment
4Q 2016 NPI Contribution NPI Margin 4Q 2016 (RM'million) 90.2 73.0% 4Q 2015 (RM'million) 84.4 73.4% By Segment (RM'm) 100.0 15.1% 80.0 67.9 59.0 60.0 7.8% 36.1% 3.8% 40.0 20.0 13.0 14.1 3.9 6.1 5.4 5.2 - Retail Hotel Office Others 4Q 2016 4Q 2015 Note: Calculation of % of increase/decrease above var
Slide 24: 4Q 2016 NPI Contribution (Cont'd)
4Q 2016 NPI Contribution (Cont’d) NPI Margin 4Q 2016 (RM'million) 90.2 73.0% 4Q 2015 (RM'million) 84.4 73.4% Retail Hotel Office Others 65.0 60.0 By property (RM’m) 55.0 50.0 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 - (5.0) Sunway Sunway Sunway Sunway Sunway Sunway Sunway SCI Sunway Hotel Sunway
Slide 25: 4Q 2016 NPI Contribution (Cont'd)
4Q 2016 NPI Contribution (Cont’d) 4Q 2016 By Property % By segment Others Sunway Pyrami d 61.0% Office 6.0% 4.3% Sunway Carni val 8.0% Hotel SCI Hypermarket 1.3% 14.4% Sunway Putra Mal l 4.9% Total Retai l 75.2% Retail 75.3% Sunway Res ort Hotel & Spa 8.9% Sunway Pyrami d Hotel Eas t* 0.3% Sunway Ho
Slide 26: YTD 4Q 2016 NPI Contribution by Segment
YTD 4Q 2016 NPI Contribution NPI Margin YTD 4Q 2016 (RM'million) 373.9 73.7% YTD 4Q 2015 (RM'million) 340.8 75.1% By Segment (RM'm) 13.8% 320.0 269.5 280.0 236.9 240.0 200.0 41.5% 17.2% 160.0 3.4% 120.0 68.8 58.7 80.0 40.0 14.5 24.8 21.1 20.4 - Retail Hotel Office Others YTD 4Q 2016 YTD 4Q 2015 Note
Slide 27: YTD 4Q 2016 NPI Contribution (Cont'd)
YTD 4Q 2016 NPI Contribution (Cont’d) NPI Margin YTD 4Q 2016 (RM'million) 373.9 73.7% YTD 4Q 2015 (RM'million) 340.8 75.1% Retail Hotel Office Others 240.0 By property (RM’m) 220.0 200.0 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 - (20.0) Sunway Sunway Sunway Sunway Sunway Sunway Sunway SCI S
Slide 28: YTD 4Q 2016 NPI Contribution (Cont'd)
YTD 4Q 2016 NPI Contribution (Cont’d) YTD 4Q 2016 By Property % By segment Others Sunway Pyrami d 58.9% Office 5.6% 3.9% Sunway Carni val 7.6% SCI Hypermarket 1.3% Hotel 18.3% Sunway Putra Mal l 4.2% Total Retai l 72.0% Retail Sunway Res ort Hotel & Spa 10.4% 72.2% Sunway Pyrami d Hotel Eas t* 3.9%
Slide 29: Resilient Income Stream
Resilient Income Stream Well spread-out lease expiry profile and diverse tenant base WALE 1 as at 30 June 2016 – 1.98 years Top 10 tenants contribute approximately 11.6% of total revenue Projected tenancy expiry of portfolio 2 Top 10 tenants 4 Total Top 10 Tenants 11.6% 60.0% 56.3% Parkson Corporati
Slide 30: 4. 4Q 2016 Property Performance
4. 4Q 2016 Property Performance Driving values through sustainable growth 30
Slide 31: Retail Properties: Sunway Pyramid Shopping Mall
RETAIL PROPERTIES SUNWAY PYRAMID SHOPPING MALL Historical occupancy rates Projected lease expiry schedule Average occupancy rate 60.0% 50.0% 100.0% 98.5% 98.6% 98.3% 98.1% 98.3% 97.8% 40.0% 95.0% 30.0% 90.0% 20.0% 85.0% 10.0% 80.0% 54.0% 24.3% 17.5% 2.0% 0.0% FY2017 FY2018 FY2019 Monthly tenancy 75.
Slide 32: Sunway Pyramid Shopping Mall (Cont'd)
RETAIL PROPERTIES SUNWAY PYRAMID SHOPPING MALL (Cont’d) Tenant mix 1 Top 10 tenants 1 Total Top 10 Tenants 11.5% Aeon Co. (M) Bhd 2.1% 22.2% Parkson Corporation Sdn Bhd 1.6% 36.7% TGV Cinemas Sdn Bhd 1.5% 6.9% Sunway Resort Hotel Sdn Bhd 1.1% (Convention Centre) 4.3% Padini Dot Com Sdn Bhd 1.0% 4.9%
Slide 33: Retail Properties: Sunway Carnival Shopping Mall
RETAIL PROPERTIES SUNWAY CARNIVAL SHOPPING MALL Historical occupancy rates Projected lease expiry schedule Average occupancy rate 75.0% 60.0% 100.0% 97.4% 97.3% 94.4% 45.0% 95.0% 92.0% 90.6% 91.2% 30.0% 90.0% 15.0% 85.0% 72.0% 13.2% 10.0% 0.8% 80.0% 0.0% FY2017 FY2018 FY2019 Monthly tenancy 75.0% Ju
Slide 34: Sunway Carnival Shopping Mall (Cont'd)
RETAIL PROPERTIES SUNWAY CARNIVAL SHOPPING MALL (Cont’d) Tenant mix 1 Top 10 tenants 1 Total Top 10 Tenants 22.8% Parkson Corporation Sdn Bhd 8.6% 21.2% 26.3% Sam's Groceria Sdn Bhd 2.5% Sunway Hotel (Seberang Jaya) Sdn Bhd 2.1% (Convention Centre) 9.4% Life Habitat Sdn Bhd (Studio) 1.7% Padini Corp
Slide 35: Retail Properties: Suncity Ipoh Hypermarket
RETAIL PROPERTIES SUNCITY IPOH HYPERMARKET Historical occupancy rates Average occupancy rate 100% 100% 100% 100% 100% 100% 100% 95% 90% 85% 80% 75% Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Suncity Ipoh Hypermarket is tenanted to a single tenant, a major hypermarket and retailer chain operating unde
Slide 36: Retail Properties: Sunway Putra Mall
RETAIL PROPERTIES SUNWAY PUTRA MALL Historical occupancy rates Projected lease expiry schedule Average occupancy rate 75.0% 60.0% 100.0% # 79.8% 82.4% 45.0% 80.0% 74.9% 69.8% 60.0% 30.0% 40.0% 15.0% 17.6% 2.9% 60.7% 21.0% 20.0% 0.0% * * FY2017 FY2018 FY2019 0.0% 0.0% Jun-11 Jun-12 Jun-13 Jun-14 Jun-
Slide 37: Sunway Putra Mall (Cont'd)
RETAIL PROPERTIES SUNWAY PUTRA MALL (Cont’d) Tenant mix 1 Top 10 tenants 1 Total Top 10 Tenants 17.2% TGV Cinemas Sdn Bhd 4.4% 26.5% Padini Dot Com Sdn Bhd 2.0% 36.3% GCH Retail (M) Sdn Bhd 1.7% 1.5% NFC Clothier Sdn Bhd 1.4% 3.1% (Nichii,Kitschen&Dressing Paula) 4.4% Jerasia Fashion Sdn Bhd 1.4% (M
Slide 38: Hospitality Properties: Sunway Resort Hotel & Spa
HOSPITALITY PROPERTIES SUNWAY RESORT HOTEL & SPA Historical occupancy rate Average occupancy rate Average occupancy rate (%) 85.0% 81.2% 90.0% 78.8% 78.0% 87.4% 80.0% 76.0% 75.0% 71.3% 85.0% 81.8% 69.4% 82.2% 80.9% 81.1% 70.0% 80.0% 65.0% 75.6% 74.0% 60.0% 75.0% 73.6% 55.0% 50.0% 70.0% Jun-11 Jun-12
Slide 39: Hospitality Properties: Sunway Pyramid Hotel East
HOSPITALITY PROPERTIES SUNWAY PYRAMID HOTEL EAST (formerly known as PYRAMID TOWER EAST) Historical occupancy rate Average occupancy rate Average occupancy rate (%) 83.1% 95.0% 92.0% 85.0% 82.4% 80.9% 81.4% 78.7% 90.0% 80.0% 85.0% 83.7% * 79.8% 80.3% 75.0% 71.8% 80.0% 75.3% 70.0% 75.0% 73.8% 65.0% 70
Slide 40: Hospitality Properties: Sunway Hotel Seberang Jaya
HOSPITALITY PROPERTIES SUNWAY HOTEL SEBERANG JAYA Historical occupancy rate Average occupancy rate Average occupancy rate (%) 90.0% 90.0% 80.0% 80.0% 80.0% 77.6% 75.7% 76.0% 70.2% 69.6% 67.8% 70.0% 65.5% 69.7% 70.0% 64.1% 60.0% 61.9% 51.6% 60.2% 60.0% 55.2% 50.0% 50.0% 40.0% Jun-11 Jun-12 Jun-13 Jun
Slide 41: Hospitality Properties: Sunway Putra Hotel
HOSPITALITY PROPERTIES SUNWAY PUTRA HOTEL Historical occupancy rate Average occupancy rate Average occupancy rate (%) 70.0% 70.0% 59.0% 60.2% 61.5% 60.0% 50.2% 58.3% 60.0% 50.0% 42.6% 40.0% 50.0% 45.0% 28.8% 30.0% 40.0% 36.5% 36.4% 20.0% 31.6% 10.0% 30.0% 25.2% 22.3% 0.0% 20.0% Jun-12 * Jun-13 Jun-1
Slide 42: Hospitality Properties: Sunway Hotel Georgetown
HOSPITALITY PROPERTIES SUNWAY HOTEL GEORGETOWN Historical occupancy rate Average occupancy rate Average occupancy rate (%) 85.0% 82.6% 90.0% 76.0% 80.0% # 80.0% 74.0% 76.2% 70.5% 70.4% 69.1% 75.0% 74.1% 70.0% 68.8% # 70.7% 70.2% 70.0% 68.7% * 60.0% 54.7% 67.4% 50.0% 65.0% 40.0% 60.0% Jun-15 * # # #
Slide 43: Office Properties: Menara Sunway
OFFICE PROPERTIES MENARA SUNWAY Historical occupancy rates Projected lease expiry schedule Average occupancy rate 100.0% 99.7% 100.0% 98.5% 98.9% 98.8% 80.0% 97.1% 95.0% 60.0% 89.3% 90.0% 40.0% 85.0% 20.0% 3.7% 5.4% 81.1% 80.0% 0.0% FY2017 FY2018 FY2019 75.0% Expiring tenancies as % of total NLA Jun
Slide 44: Menara Sunway (Cont'd)
OFFICE PROPERTIES MENARA SUNWAY (Cont’d) Tenant mix 1 Top 10 tenants 1 Total Top 10 Tenants 76.6% Sunway Management Sdn Bhd 21.3% Sunway Integrated Properties Sdn Bhd 18.4% Sunway Construction Group Berhad 8.9% Merck Sdn Bhd 7.3% Sunway Shared Services Sdn Bhd 7.0% Grace Generation Information Techn
Slide 45: Office Properties: Sunway Tower
OFFICE PROPERTIES SUNWAY TOWER Historical occupancy rates Projected lease expiry schedule Average occupancy rate 15.0% 100.0% 97.0% 12.0% 93.5% 83.0% 84.3% 80.0% 9.0% 66.9% 60.0% 6.0% 40.0% 3.0% 19.6% 2.4% 7.4% 11.4% 20.0% 0.0% FY2017 FY2018 FY2019 0.0% Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Expi
Slide 46: Sunway Tower (Cont'd)
OFFICE PROPERTIES SUNWAY TOWER (Cont’d) Tenant mix 1 Top 10 tenants 1 Total Top 10 Tenants 98.4% 8.5% WPP Business Services Sdn Bhd 19.4% 8.3% VPO Services Sdn Bhd 18.4% ZJ Advisory Sdn Bhd 15.2% 13.8% 50.0% Royal Danish Embassy 13.8% Bexcel Shared Services Malaysia Sdn Bhd 11.1% R1 International Sd
Slide 47: Office Properties: Sunway Putra Tower
OFFICE PROPERTIES SUNWAY PUTRA TOWER Historical occupancy rates Projected lease expiry schedule Average occupancy rate 98.7% 20.0% 100.0% 85.2% 78.0% 80.0% 74.2% 15.0% 60.0% 52.8% 10.0% 40.0% 26.4% 5.0% 20.0% 8.0% 17.7% 0.0% FY2018 FY2019 0.0% Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Expiring tenan
Slide 48: Sunway Putra Tower (Cont'd)
OFFICE PROPERTIES SUNWAY PUTRA TOWER (Cont’d) Tenant mix 1 Top tenants 1 Total Top Tenants 100.0% 2.0% 5.0% Kementerian Perdagangan Dalam Negeri 61.1% Koperasi Dan Kepenggunaan Malaysia Jabatan Perdana Menteri (I.C.U) 14.9% Jabatan Pengairan & Saliran Malaysia (JPS) 14.8% Chini Enterprise Sdn Bhd 5.
Slide 49: Office Properties: Wisma Sunway
OFFICE PROPERTIES WISMA SUNWAY Historical occupancy rates Projected lease expiry schedule Average occupancy rate 40.0% 100.0% 30.0% 88.7% 89.8% 90.1% 90.0% 86.9% 85.1% 20.0% 80.9% 80.0% 10.0% 70.0% 25.8% 30.9% 30.9% 60.0% 0.0% FY2017 FY2018 FY2019 50.0% Expiring tenancies as % of total NLA Jun-11 Ju
Slide 50: Wisma Sunway (Cont'd)
OFFICE PROPERTIES WISMA SUNWAY (Cont’d) Tenant mix 1 Top tenants 1 Total Top Tenants 100.0% 3.5% 2.8% Jabatan Kesihatan Negeri Selangor 35.4% Jabatan Alam Sekitar 32.1% Lembaga Hasil Dalam Negeri 15.2% Yayasan Penyelidikan Transformasi 5.8% Pejabat Tindakan Pelancongan Negeri 5.2% 93.7% Selangor SM
Slide 51: 5. Market Outlook
5. Market Outlook Driving values through sustainable growth 51
Slide 52: General Outlook
General Outlook o The world’s economy struggles to regain momentum as growth continues to falter in advanced economies while divergence in growth in emerging economies was observed. In Asia, China is the epicenter of growth. The gradual slowdown in China reflects the continuation of economic structu
Slide 53: General Outlook
General Outlook o On the domestic front, the Malaysian economy moderated further in 1Q CY2016. The first quarter of CY2016 saw the economy softened to 4.2% (4Q CY2015: 4.5%), reflecting cautious spending by the private sector and persistently weak external trades. Bank Negara Malaysia (“BNM”) projec
Slide 54: General Outlook
General Outlook o Despite the challenging operating environment, Sunway REIT delivered a moderate DPU growth in FY2016. The financial year ahead is expected to remain difficult as consumer sentiment and business confidence remain fragile. In addition, the intensified competition in the property sub-
Slide 55: Retail Segment
Retail Segment o The Malaysian retail industry recorded a 4.4% fall in sales in 1Q CY2016 compared to a 4.6% growth a year ago, according to Retail Group Malaysia (“RGM”). The fall was attributable to higher pre-GST sales a year ago, as well as weak Chinese New Year sales in February 2016. RGM maint
Slide 56: Retail Segment (Cont'd)
Retail Segment (Cont’d) o The average occupancy rate for Sunway Carnival Shopping Mall was lower at 94.4% for FY2016 versus 97.3% for FY2015 due to remodelling of 2nd floor area of approximately 21,000 sq.ft. (equivalent to 4% of total NLA) into food and beverage (“F&B”) area. The new F&B area with
Slide 57: Hotel Segment
Hotel Segment o Global and domestic uncertainties have resulted in lower tourism activities and tourism spending. Businesses are more prudent on business travelling and MICE activities. CY2016 is expected to be a challenging year taking into consideration the impact of slowing domestic economy, weak
Slide 58: Hotel Segment (Cont'd)
Hotel Segment (Cont’d) o Sunway Hotel Seberang Jaya registered higher average occupancy rate of 76.0% in 4Q FY2016 (4Q FY2015: 69.7%) due to tactical strategy in boosting leisure demand amidst soft demand from the corporate segment and increased competition from new hotels in Penang. o Likewise, Sun
Slide 59: Office Segment
Office Segment o The office supply in the Klang Valley has substantially increased over the years. The office stock stood at 111 million sq.ft. in 1Q CY2016. An estimated 11.8 million sq.ft. of office space is expected to be available between 2Q CY2016 to 2018 in the Klang Valley which is considered
Slide 60: Office Segment (Cont'd)
Office segment (Cont’d) o The average occupancy rate for Sunway Putra Tower has declined to 26.4% for FY2016 (FY2015: 52.8%) due to non-renewal by an anchor tenant who occupied 143,000 sq.ft. (45% of total NLA) in 2Q2015. New tenants have been secured for approximately 27,100 sq.ft. (9% of total NLA
Slide 61: 6. Investor Relations
6. Investor Relations Driving values through sustainable growth 61
Slide 62: Unit Price Performance - IPO to FY2016
Unit Price Performance - IPO to FY2016 Unit Price Performance of Sunway REIT versus Benchmarks (8 July 2010 – 30 June 2016) 120.0% TR/GPR/APREA Composite REIT Index Malaysia 116.0% 100.0% 80.0% Sunway 60.0% REIT 84.4% 40.0% 20.0% FBM KLCI 0.0% 25.7% Jun 2010 Jun 2011 Jun 2012 Jun 2013 Jun 2014 Jun 2
Slide 63: Unit Price Performance – FY2016
Unit Price Performance – FY2016 Unit Price Performance of Sunway REIT versus Benchmarks (30 June 2015 – 30 June 2016) 20.0% TR/GPR/APREA Composite REIT Index Malaysia 16.0% 17.1% 12.0% Sunway REIT 7.8% 8.0% 4.0% 0.0% -4.0% -8.0% FBM KLCI -3.1% -12.0% Jun 2015 Sep 2015 Dec 2015 Mar 2016 Jun 2016 Perf
Slide 64: Unitholders' Composition (as at 30 June 2016)
Unitholders’ Composition (as at 30 June 2016) Foreign Retail 12.8% 11.8% Sunway Berhad 37.3% Institutions & Corporate Domestic 50.9% 87.2% June 2016 March 2016 Q-o-Q Change No of unitholders 9,464 9,427 37 (+0.4%) Retail unitholders 11.8% 11.2% +0.6% Foreign unitholders 12.8% 12.6% +0.2 Sunway Berha
Slide 65: Comparative Yields for Various Assets
Comparative Yields for Various Assets 8.0% 7.0% 6.65%2 6.40%5 6.0% 5.531 5.0% 4.0% 3.75%3 3.29%4 3.25%6 3.0% 2.0% 1.0% 0.0% Note: Sunway REIT M-REITs 10-Year MGS Fixed Deposit EPF Yield OPR 1 Distribution yield based on actual FY2016 proposed DPU of 9.18 sen and unit price as at 30 June 2016 (Source
Slide 66: Thank You
THANK YOU Driving values through sustainable growth
Sunway Real Estate Investment Trust — Q4 FY2016 Earnings Presentation on 6ix