Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — Q4 2024 Earnings Presentation
42 slides from Sunway Real Estate Investment Trust's earnings presentation, Feb 3, 2025
Slide 1: Financial Results 4th Quarter ended 31 December 2024
FINANCIAL RESULTS 4th Quarter ended 31 December 2024 (FYE 31 December 2024) 3 February 2025 0
Slide 2: Table of Contents
Table of Contents 1. Financial Highlights (Q4 2024) 2. Financial Results (Q4 2024) 3. Segmental Financial Results (Q4 2024) 4. Market Outlook (Q4 2024) 5. Investor Relations (Q4 2024) Appendix I – Property Performance Empowering Businesses • Curating Experiences • Enriching Lives 1
Slide 3: Financial Highlights (Q4 2024)
FINANCIAL HIGHLIGHTS (Q4 2024) Empowering Businesses • Curating Experiences • Enriching Lives 2
Slide 4: Distribution Per Unit (DPU)
Distribution Per Unit (“DPU”) DPU (sen) Details of Income Distribution Details of Income Distribution Distribution Period 1 July 2024 - 31 December 2024 Distribution Per Unit (DPU) (sen) 5.34 Notice of Entitlement 3 February 2025 Ex-Dividend Date 18 February 2025 Book Closure Date 19 February 2025 P
Slide 5: 6-Years DPU
6-Years DPU 5-Year DPU CAGR Distribution Yield 0.8% 5.4% (Based on FYE 2019 DPU of 9.59 sen) (Based on unit price of RM1.85 as at 31 December 2024 with DPU of 10.00 sen) Empowering Businesses • Curating Experiences • Enriching Lives 4
Slide 6: Financial Highlights – Q4 2024 vs Q4 2023
Financial Highlights – Q4 2024 vs Q4 2023 Highlights Q4 2024 Q4 2023 No. of Properties 28 19 Property Value (RM'billion) 10.455 8.972 Units in Circulation (Units) 3,424,807,700 3,424,807,700 Unit Price as at 31 Dec 2024/2023 (RM) 1.85 1.54 Market Capitalisation (RM'billion) 6.336 5.274 Net Asset Val
Slide 7: Financial Highlights Q4 2024 vs Q4 2023 (QTD & YTD)
Financial Highlights Q4 2024 vs Q4 2023 (QTD & YTD) Reported in RM’000 Q4 YoY YTD Variance Variance YTD Q4 2024 vs YTD Q4 2023 The higher Revenue was primarily * 7.2% driven by revenue from nine newly RM51.5m YTD 767,146 acquired properties, partially offset 15.9% or RM30.3m by the absence of rental
Slide 8: Financial Results (Q4 2024)
FINANCIAL RESULTS (Q4 2024) Empowering Businesses • Curating Experiences • Enriching Lives 7
Slide 9: Statement of Comprehensive Income – Consolidated
Statement of Comprehensive Income – Consolidated Q4 2024 Q4 2023 Change YTD 2024 YTD 2023 Change 1. Interest income for YTD Q4 2024 was higher RM'000 RM'000 % RM'000 RM'000 % compared to YTD Q4 2023 due to higher placement with financial institutions throughout Revenue 220,850 * 190,521 15.9% 767,14
Slide 10: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 (Unaudited) (Audited) (Unaudited) (Audited) RM'000 RM'000 RM'000 RM'000 Assets Number of units in circulation ('000) 3,424,808 3,424,808 Non-current assets Net Asset Value ('NAV') attributable to unitholde
Slide 11: Statement of Cash Flows – Consolidated
Statement of Cash Flows – Consolidated Year ended 31.12.2024 31.12.2023 1 Net cash from operating activities for FY2024 of RM543.8 million compared to realised NPI less trust expense of RM507.4 RM'000 RM'000 million mainly comprise of cash receipts from lessees and Cash flows from operating activiti
Slide 12: Financing Profile as at 31 December 2024
Financing Profile as at 31 December 2024 1 1 2 2 Financial Covenants 31 December 2024 Average cost of debt 3.89% Average maturity period (Years) 2.2 Interest Service Cover Ratio (ISCR) min 1.5 X 3.2 X Gearing ratio (SC Guidelines) below 50% 41.4% 1 Amounts outstanding for revolving loan and revolvin
Slide 13: Financing Profile as at 31 December 2024 (Cont'd)
Financing Profile as at 31 December 2024 (Cont’d) MTN, RL (USD), RC (USD) RL MTN, MTN Rated MTN MTN, Rated MTN MTN MTN MTN MTN MTN MTN RC (USD) CP MTN Empowering Businesses • Curating Experiences • Enriching Lives 12
Slide 14: Segmental Financial Results (Q4 2024)
SEGMENTAL FINANCIAL RESULTS (Q4 2024) Empowering Businesses • Curating Experiences • Enriching Lives 13
Slide 15: Retail Segment : Q4 2024
Retail Segment : Q4 2024 The revenue of retail segment for Q4 2024 recorded a strong improvement primarily attributable to the new rental contributions from the six hypermarkets that commenced on 30 April 2024 and Sunway 163 Mall on 9 October 2024. Sunway Pyramid Mall opened its new Oasis wing in No
Slide 16: Retail Segment
Retail Segment Regional Malls Neighbourhood Super-Regional Malls Big-Box Retail Malls Local & Population within 50km Population within 20km Population within 10km Target market & international tourists net lettable area NLA > 1 million sq.ft. NLA > 500,000 sq.ft. NLA > 250,000 sq.ft. NLA c. 250,000
Slide 17: Hotel Segment : Q4 2024
Hotel Segment : Q4 2024 Hotel Revenue Hotel NPI 0.275 RM 27.9 million (Q4 2024) RM 26.8 million (Q4 2024) 20% vs RM 23.3 million (Q4 2023) 25% vs RM 21.4 million (Q4 2023) RM 4.6 million Variance RM 5.3 million Variance The Hotel segment’s revenue and NPI recorded a healthy improvement of more than
Slide 18: Office Segment : Q4 2024
Office Segment : Q4 2024 Office Revenue Office NPI -2% RM 20.5 million (Q4 2024) -5% RM 12.4 million (Q4 2024) vs RM 21.0 million (Q4 2023) vs RM 13.0 million (Q4 2023) RM -0.5 million Variance RM -0.6 million Variance Revenue and NPI for the office segment decreased by approximately RM1 million. Th
Slide 19: Services Segment : Q4 2024
Services Segment : Q4 2024 Services Revenue Services NPI 2% RM 9.7 million (Q4 2024) 2% RM 9.7 million (Q4 2024) vs RM 9.4 million (Q4 2023) vs RM 9.4 million (Q4 2023) RM 0.3 million Variance RM 0.3 million Variance The revenue and NPI for services segment in Q4 2024 increased by 2.3% in accordance
Slide 20: Industrial & Others Segment : Q4 2024
Industrial & Others Segment : Q4 2024 Industrial & Others Revenue Industrial & Others NPI 105% RM 3.5 million (Q4 2024) 164% RM 2.9 million (Q4 2024) vs RM 1.7 million (Q4 2023) vs RM 1.1 million (Q4 2023) RM 1.8 million Variance RM 1.8 million Variance The Industrial & Others segment recorded a sha
Slide 21: Key Performance Indicators (2024 vs 2023) YoY %
Key Performance Indicators (2024 vs 2023) YoY % RETAIL 1 HOTEL 2 OFFICE 3 Occupancy Occupancy + 1% Occupancy Average + 1% gross rent FY2024: 98% FY2024: 65% - 1% FY2023: 97% FY2023: 64% + 0.4% FY2024: 83% FY2023: 84% Average Average gross rent room rate + 18% + 3% INDUSTRIAL 4 Occupancy Average gros
Slide 22: Market Outlook (Q4 2024)
MARKET OUTLOOK (Q4 2024) Empowering Businesses • Curating Experiences • Enriching Lives 21
Slide 23: General Outlook – Key Economic Indicators
General Outlook – Key Economic Indicators Indicator 2025 (F) 2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024 2023 2022 2021 Gross Domestic Product 4.5% - 5.5% 4 5.1% 5 4.8% 5 5.3% 5.9% 4.2% 3.7% 8.7% 3.1% (GDP) (yoy) Consumer Price Index 2.0% - 3.5% 4 1.8% 2 1.8% 2 1.9% 1.9% 1.7% 2.5% 3.3% 2.5% (CPI) (yoy) Ove
Slide 24: General Outlook
General Outlook General Outlook There is a convergence of factors which are pointing towards a favourable year ahead for Sunway REIT. The US Federal Reserve has commenced interest rate cuts in 2024 and is expected to continue in 2025. Bank Negara Malaysia has kept interest rates steady in the past y
Slide 25: Segmental Outlook - Retail
Segmental Outlook - Retail Retail Segment Retail Group Malaysia projects a 4.0% growth rate for 2025 as rising cost of living challenges persist compared to a forecast 3.9% growth rate in 2024, with the government expecting the national economy to expand between 4.5% and 5.5%. Consumer spending is e
Slide 26: Segmental Outlook - Hotel
Segmental Outlook - Hotel Hotel Segment Tourism Malaysia recorded a 26.1% increase in visitors arrival to 22.5 million for the 11 months in 2024 compared to Jan-Nov 2023. However, this was still below the pre-pandemic level of 24.1 million arrivals registered in 2019. China and India tourists regist
Slide 27: Segmental Outlook - Office
Segmental Outlook - Office Office Segment The office sector in Malaysia is anticipated to see a continued increase in incoming supply in 2025 of approximately 2.5 million sq.ft. net lettable area (NLA) in 2025 and a further 2.3 million sq.ft. NLA in 2026 in the Klang Valley. Our office segment was g
Slide 28: Segmental Outlook - Industrial
Segmental Outlook - Industrial Industrial & Others Segment In line with the growing investments in Malaysia, demand for industrial properties is expected to remain strong. Under the New Industrial Master Plan 2030 (NIMP 2030) and the National Energy Transition Roadmap (NETR), there will be greater e
Slide 29: Investor Relations (Q4 2024)
INVESTOR RELATIONS (Q4 2024) Empowering Businesses • Curating Experiences • Enriching Lives 28
Slide 30: Unit Price Performance from IPO to Q4 2024
Unit Price Performance from IPO to Q4 2024 Unit Price Performance of Sunway REIT versus Benchmarks (8 July 2010 – 31 Dec 2024) Sunway REIT + 105.6% FBM Top 100 Index + 41.6% FBM KLCI + 24.8% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Performance Statistics IPO to Q4 2
Slide 31: Unitholders' Composition (as at 31 December 2024)
Unitholders’ Composition (as at 31 December 2024) Foreign Retail 7.6% 7.6% Sunway Berhad 40.9% Institutions & Corporates 51.5% Domestic 92.4% December 2024 September 2024 Q-o-Q Change No. of unitholders 32,320 33,098 - 2.3% (- 778) Retail unitholdings 7.6% 7.9% - 0.3% Foreign unitholdings 7.6% 7.2%
Slide 32: Analyst Recommendation (as at December 2024)
Analyst Recommendation (as at 31 December 2024) Target Price as at 31 Dec 2024 (RM) Upside / Downside to unit price as at 31 Dec 2024 (%) 13.5 13.0 12.4 12.4 11.9 10.8 10.3 8.6 8.1 7.0 5.9 2.10 2.09 2.08 2.08 2.07 2.05 2.04 2.01 2.00 1.98 1.96 2.7 1.90 1.86 1.80 1.70 0.5 (2.7) (8.1) UOB Kay Hian CLS
Slide 33: Comparative Yields for Various Assets
Comparative Yields for Various Assets (as at 31 December 2024) 6.20%2 5.41%1 5.50%5 3.82%3 3.00%6 2.50%4 Sunway REIT M-REITs 10-Year MGS Fixed Deposit EPF Yield OPR Note: 1 Distribution yield is computed based on DPU of 10.0 sen and unit price of RM1.85 as of 31 December 2024 (Source: Sunway REIT) 2
Slide 34: Appendix I: Property Performance (YTD Q4 2024 YoY Analysis)
APPENDIX I: PROPERTY PERFORMANCE (YTD Q4 2024 YoY Analysis) Empowering Businesses • Curating Experiences • Enriching Lives 33
Slide 35: Average Occupancy Rate (YTD Q4 2024) Retail
Average Occupancy Rate (YTD Q4 2024) RETAIL N/A N/A The Retail segment's average occupancy rate improved marginally to 98% in YTD Q4 2024, mainly supported by the full occupancy from six Sunway REIT hypermarkets and Sunway 163 Mall, partially offset by the progressive closure and fit-out period for
Slide 36: Projected Lease Expiry Schedule Retail
Projected Lease Expiry Schedule RETAIL WALE = 2.02 years Sunway Pyramid Sunway Carnival Sunway Putra Sunway 163 Sunway REIT Mall Mall Mall Mall Hypermarkets Based on the total net Based on the total NLA Based on the total Acquired on 9 Occupied by TF-Value lettable area (NLA) of of 14,311 sq. ft. du
Slide 37: Average Occupancy Rate (YTD Q4 2024) Hotel
Average Occupancy Rate (YTD Q4 2024) HOTEL WALE = 5.76 years The Hotel segment’s average occupancy rate improved to 65% in YTD Q4 2024, mainly driven by the improvement of tourism activity, demand from leisure and MICE activities, alongside the arrival of domestic and international tourists. The hot
Slide 38: Average Occupancy Rate (YTD Q4 2024) Office
Average Occupancy Rate (YTD Q4 2024) OFFICE The average occupancy rate for the Office segment dropped marginally to 83% in YTD Q4 2024, primarily due to the termination of major tenants at Sunway Putra Tower, partially offset by the commencement of new tenants at Menara Sunway and Sunway Tower. Empo
Slide 39: Projected Lease Expiry Schedule Office
Projected Lease Expiry Schedule OFFICE WALE = 1.70 years Menara Sunway Sunway Putra Wisma Sunway Sunway Tower Tower Sunway Pinnacle Based on total NLA Based on total NLA of Based on total NLA of Based on total NLA of Based on total NLA of of 227,838 sq. ft. 20,209 sq. ft. due for 64,783 sq. ft. due
Slide 40: Average Occupancy Rate (YTD Q4 2024) Services, Industrial & Others
Average Occupancy Rate (YTD Q4 2024) SERVICES, INDUSTRIAL & OTHERS N/A N/A Sunway REIT Industrial – Petaling Jaya 1 is expected to achieve an average occupancy rate of more than 60% based on committed tenancies by mid-2025. The three-year term for Sunway REIT Industrial – Shah Alam 1 was due on 1 Ja
Slide 41: Thank You
Thank You Empowering Businesses • Curating Experiences • Enriching Lives 40
Slide 42: 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
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