Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — Q2 2023 Earnings Presentation
37 slides from Sunway Real Estate Investment Trust's earnings presentation, Aug 17, 2023
Slide 1: Financial Results Quarter 2 ended 30 June 2023
FINANCIAL RESULTS Quarter 2 ended 30 June 2023 (FYE 31 December 2023) Date: 17 August 2023
Slide 2: Table of Contents
Table of Contents 1. Financial Highlights (Q2 2023) 2. Financial Results (Q2 2023) 3. Segmental Financial Results (Q2 2023 & YTD Q2 2023) 4. Market Outlook (Q2 2023) 5. Investor Relations (Q2 2023) Appendix I – Property Performance Empowering Businesses • Curating Experiences • Enriching Lives 2
Slide 3: Financial Highlights (Q2 2023)
FINANCIAL HIGHLIGHTS (Q2 2023) Empowering Businesses • Curating Experiences • Enriching Lives 3
Slide 4: Distribution Per Unit (DPU)
Distribution Per Unit (“DPU”) DPU (sen) Details of Income Distribution Distribution Period 1 January 2023- 30 June 2023 Distribution Per Unit (DPU) (sen) 4.62 Notice of Entitlement 17 August 2023 4.62 Ex-Dividend Date 30 August 2023 Book Closure Date 1 September 2023 4.22 Payment Date 15 September 2
Slide 5: 5-Years DPU
5-Years DPU July-Sept Oct-Dec Jan-Mar April-Jun Jan-Jun July-Dec 9.59 9.22 2.28 7.33 6.10 5.00 2.58 2.38 2.80 4.62 2.25 2.45 1.63 4.22 4.62 2.48 2.50 0.77 0.90 JU LY'18-JUN'19 JU LY'19-JUN'20 JU LY' 20-DE C'21 (18MTHS) JAN ' 22-DE C'22 (FY22) JAN '23-DE C'23 (FY23) 5-Year DPU CAGR Distribution Yield
Slide 6: Financial Highlights – Q2 2023
Financial Highlights – Q2 2023 Highlights Q2 2023 Q2 2022 No. of Properties 20 19 Property Value (RM'billion) 9.165 @ 8.959 Units in Circulation (Units) 3,424,807,700 3,424,807,700 Unit Price as at 30 June 2023/2022 (RM) 1.56 1.49 Market Capitalisation (RM'billion) 5.343 5.103 Net Asset Value ("NAV"
Slide 7: Financial Highlights Q2 2023 vs Q2 2022 (QTD & YTD)
Financial Highlights Q2 2023 vs Q2 2022 (QTD & YTD) Reported in RM’000 YTD Variance YTD Q2 2023 Higher Revenue was mainly contributed by: 2Q YoY 15.2% or • retail segment from encouraging tenant sales; 349,333 RM22.0mil and 17.0% • hospitality segment from gradual recovery of RM50.9m the tourism ind
Slide 8: Financial Results (Q2 2023)
FINANCIAL RESULTS (Q2 2023) Empowering Businesses • Curating Experiences • Enriching Lives 8
Slide 9: Statement of Comprehensive Income – Consolidated
Statement of Comprehensive Income – Consolidated Q2 2023 Q2 2022 Change YTD 2023 YTD 2022 Change RM'000 RM'000 % RM'000 RM'000 % Revenue 166,530 144,509 15.2% 349,333 298,479 17.0% Property operating expenses (50,346) (37,619) 33.8% (94,843) (72,669) 30.5% Net property income 116,184 106,890 8.7% 25
Slide 10: Statement of Comprehensive Income – Consolidated (Cont'd)
Statement of Comprehensive Income – Consolidated (Cont’d) 1. Interest income for Q2 2023 was higher compared to Q2 2022 resulting from higher placement rate with 100bps OPR hike in FY 2022. 2. Changes in fair value of investment properties and Unrealised gain was in relation to the fair value gain r
Slide 11: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 30.06.2023 31.12.2022 30.06.2023 31.12.2022 (Unaudited) (Audited) (Unaudited) (Audited) RM'000 RM'000 Units in circulation ('000 units) 3,424,808 3,424,808 Assets Non-current assets Net Asset Value ("NAV") attributable to unitholders (RM'000): Investmen
Slide 12: Statement of Financial Position – Consolidated (Cont'd)
Statement of Financial Position – Consolidated (Cont’d) 1. Investment properties increased by RM64.4 million mainly resulting from the on-going finalisation of accounts for the completed Sunway Carnival Mall expansion and balance work for Sunway Resort Hotel. 2. Investment properties – accrued lease
Slide 13: Statement of Cash Flows – Consolidated
Statement of Cash Flows – Consolidated Cumulative Quarter ended 30.06.2023 30.06.2022 1 Net cash from operating activities for Q2 2023 of RM220.8 * million mainly comprise of cash receipt from lessees and tenants RM'000 RM'000 partially offset by cash paid for operating expenses and Cash flows from
Slide 14: Financing Profile as at 30 June 2023
Financing Profile as at 30 June 2023 Utilised Facility Limit Amount RM'mil RM'mil 1 Revolving loan (USD) USD 75 219.3 2 Commercial Paper 3,000.0 30.0 Unrated MTNs 10,000.0 1,350.0 3 Total Current 1,599.3 Revolving Loan (RM) 2,000.0 1,990.0 2 Unrated MTNs 10,000.0 10.0 3 Total Non Current 2,000.0 Amo
Slide 15: Financing Profile as at 30 June 2023 (Cont'd)
Financing Profile as at 30 June 2023 (Cont’d) Fixed vs Floating Rate Sources of Debt RL (USD) Fixed 6% Floating rate rate CP/RL MTNs 37% 63% (RM) 38% 56% Empowering Businesses • Curating Experiences • Enriching Lives 15
Slide 16: Segmental Financial Results (Q2 2023)
SEGMENTAL FINANCIAL RESULTS (Q2 2023) Empowering Businesses • Curating Experiences • Enriching Lives 16
Slide 17: Retail Segment : Q2 2023
Retail Segment : Q2 2023 Retail Revenue Retail NPI 9% RM 110.9 million (Q2 2023) -3% RM 69.5 million (Q2 2023) vs RM 101.4 million (Q2 2022) vs RM 71.6 million (Q2 2022) 19% RM 237.2 million (YTD Q2 2023) 12% RM 159.4 million (YTD Q2 2023) vs RM 199.8 million (YTD Q2 2022) vs RM 141.9 million (YTD Q
Slide 18: Hotel Segment : Q2 2023
Hotel Segment : Q2 2023 Hotel Revenue Hotel NPI 0.275 192% RM 17.5 million (Q2 2023) 227% RM 16.5 million (Q2 2023) vs RM 6.0 million (Q2 2022) vs RM 5.0 million (Q2 2022) 47% RM 35.9 million (YTD Q2 2023) 51% RM 34.0 million (YTD Q2 2023) vs RM 24.5 million (YTD Q2 2022) vs RM 22.5 million (YTD Q2
Slide 19: Office Segment : Q2 2023
Office Segment : Q2 2023 Office Revenue Office NPI 4% RM 20.5 million (Q2 2023) 1% RM 12.9 million (Q2 2023) vs RM 19.7 million (Q2 2022) vs RM 12.7 million (Q2 2022) 4% RM 40.9 million (YTD Q2 2023) 0% RM 26.4 million (YTD Q2 2023) vs RM 39.2 million (YTD Q2 2022) vs RM 26.4 million (YTD Q2 2022) Q
Slide 20: Services and Industrial & Others Segments : Q2 2023
Services and Industrial & Others Segments : Q2 2023 Services Revenue Industrial & Others Revenue 1% RM 16.0 million (Q2 2023) 0% RM 1.7 million (Q2 2023) vs RM 15.8 million (Q2 2022) vs RM 1.7 million (Q2 2022) 1% RM 31.9 million (YTD Q2 2023) 0% RM 3.4 million (YTD Q2 2023) vs RM 31.6 million (YTD
Slide 21: Market Outlook (Q2 2023)
MARKET OUTLOOK (Q2 2023) Empowering Businesses • Curating Experiences • Enriching Lives 21
Slide 22: General Outlook
General Outlook Indicator 2023 (F) Q2 2023 Q1 2023 2022 2021 Gross Domestic Product (GDP) 4.5% * 5.6% 1 8.7% 1 3.1% 1 (y-o-y) Consumer Price Index (y-o-y) 2.8% to 3.8% 4 2.8% 2 3.6% 2 3.3% 2 2.5% 2 Overnight Policy Rate (OPR) 3.0% to 3.25% 3 3.0% 2.75% 2.75% 1.75% 1 GDP growth (Source: Bank Negara M
Slide 23: Segmental Outlook
Segmental Outlook Retail Segment o The outlook for retail segment remains positive, underpinned by sustained strong improvement in retail footfall and retail sales in Q1 2023 as all three malls recorded the highest tenant sales in January 2023 following Chinese New Year festivity shopping. Sunway Py
Slide 24: Segmental Outlook (Cont'd)
Segmental Outlook (Cont’d) Office Segment The Office segment is expected to continue to remain in a state of oversupply on the back of continuous incoming supply. Against the backdrop of supply outstripping demand, it is projected that rental rates and occupancy rates for the office segment will rem
Slide 25: Investor Relations (Q2 2023)
INVESTOR RELATIONS (Q2 2023) Empowering Businesses • Curating Experiences • Enriching Lives 25
Slide 26: Unit Price Performance from IPO to Q2 2023
Unit Price Performance from IPO to Q2 2023 Unit Price Performance of Sunway REIT versus Benchmarks (8 July 2010 – 30 June 2023) Sunway REIT + 73.3% FBM Top 100 Index + 13.7% FBM KLCI + 4.6% Jun 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Performance Statistics IPO to Q2 23
Slide 27: Unitholders' Composition
Unitholders’ Composition (as at 30 June 2023) Retail Foreign 6.7% 9.4% Sunway Berhad 40.9% Institutions & Corporates 52.5% Domestic 90.6% June 2023 March 2023 Q-o-Q Change No of unitholders 29,371 29,274 +97 (+0.3%) Retail unitholders 6.7% 6.6% +0.1% Foreign unitholders 9.4% 9.5% -0.1% Sunway Berhad
Slide 28: Analysts Recommendation
Analysts Recommendation (as at 30 June 2023) Average Consensus 23.7 Target Price = RM1.71 19.9 17.9 Target Price as at 30 Jun 2023 (RM) 15.4 14.1 Upside / Downside to unit price as at 30 Jun 2023 (%) 12.2 10.9 10.3 9.0 6.4 5.8 1.93 1.87 1.84 2.6 2.6 2.6 1.80 1.78 1.73 1.72 1.70 1.60 1.60 1.75 1.66 1
Slide 29: Comparative Yields for Various Assets
Comparative Yields for Various Assets (as at 30 June 2023) 6.79%2 6.09%1 5.35%5 3.85%3 3.00%6 2.80%4 Sunway REIT M-REITs 10-Year MGS Fixed Deposit EPF Yield OPR Note: 1 Distribution yield is computed based on consensus FY 2023 DPU of 9.50 sen and unit price of RM1.56 as at 30 June 2023 (Source: Bloo
Slide 30: Appendix I: Property Performance (YTD Q2 2023 YoY Analysis)
APPENDIX I: PROPERTY PERFORMANCE (YTD Q2 2023 YoY Analysis) Empowering Businesses • Curating Experiences • Enriching Lives 30
Slide 31: Average Occupancy Rate (YTD Q2 2023) – Retail
Average Occupancy Rate (YTD Q2 2023) RETAIL The Retail segment recorded a stable average occupancy rate stood at 97% in YTD Q2 2023, which was supported by the commencement of new tenants in Sunway Pyramid Mall and Sunway Putra Mall. The average occupancy rate of Sunway Carnival Mall was impacted du
Slide 32: Projected Lease Expiry Schedule – Retail
Projected Lease Expiry Schedule RETAIL WALE = 1.28 years Sunway Pyramid Mall Sunway Carnival Mall SunCity Ipoh Sunway Putra Mall Based on the total net lettable Based on the total NLA of Hypermarket Based on the total NLA of area (NLA) of 1,205,858 sq. ft. 162,131 sq. ft. due for renewal Occupied by
Slide 33: Average Occupancy Rate (YTD Q2 2023) – Hotel
Average Occupancy Rate (YTD Q2 2023) HOTEL WALE = 6.69 years The Hotel segment recorded 12% growth in YTD Q2 2023 as compared to YTD Q2 2022. The growth in average occupancy rate in YTD Q2 2023 was predominantly supported by the domestic leisure, corporate and MICE activities, alongside the arrival
Slide 34: Average Occupancy Rate (YTD Q2 2023) – Office
Average Occupancy Rate (YTD Q2 2023) OFFICE The Office segment recorded a marginal drop in average occupancy rate in YTD Q2 2023, primarily due to the termination and downsizing of tenants in Menara Sunway, Sunway Putra Tower and Sunway Pinnacle, partially offset by the commencement of Sunway Xfarms
Slide 35: Projected Lease Expiry Schedule – Office
Projected Lease Expiry Schedule OFFICE WALE = 1.35 years Menara Sunway Sunway Putra Wisma Sunway Sunway Tower Tower Sunway Pinnacle Based on total NLA of Based on total NLA of Based on total NLA Based on total NLA of Based on NLA of 73,615 sq. ft. due for 14,462 sq. ft. due for of 151,258 sq. ft. 13
Slide 36: 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 37: Thank You
Thank You Empowering Businesses • Curating Experiences • Enriching Lives 37
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