Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — Q3 FY2017 Earnings Presentation
69 slides from Sunway Real Estate Investment Trust's earnings presentation, May 3, 2017
Slide 1: Sunway REIT Financial Results 3rd Quarter Ended 31 March 2017
Sunway REIT Financial Results 3rd Quarter Ended 31 March 2017 (FYE 30 June 2017) Announcement Date: 3 May 2017
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. 3Q 2017 Financial Results 3. 3Q 2017 Portfolio Performance 4. 3Q 2017 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 January 2017 - 31 March 2017 Distribution Per Unit (DPU) (sen) 2.37 1 Notice of Entitlement 3 May 2017 Ex-Dividend Date 18 May 2017 Book Closure Date 22 May 2017 Payment Date 6 June 2017 1 Proposed income distribution for 3Q201
Slide 6: Financial Highlights
Financial Highlights Highlights 3Q 2017 3Q 2016 No. of Properties 14 14 Property Value (RM'billion) 6.514 6.378 No. of Units in Circulation 2,945,078,000 2,942,684,200 Unit Price as at 31 Mar (RM) 1.72 1.60 Market Capitalisation (RM'billion) 5.066 4.708 Net Asset Value (NAV) Per Unit (RM) 1.3556 1.3
Slide 7: Financial Highlights (Cont'd)
Financial Highlights (Cont’d) Gross Revenue (RM'm) Net Property Income (RM'm) 700.0 500.0 600.0 1 2 3.2% 3.6% 400.0 500.0 390.3 383.4 300.0 290.3 283.7 400.0 300.0 200.0 200.0 128.8 134.6 130.3 96.0 100.2 121.2 126.9 131.9 100.0 89.9 94.1 97.1 96.7 100.0 - - 1Q 2Q 3Q YTD 1Q 2Q 3Q YTD 2017 2016 2017
Slide 8: Financial Highlights (Cont'd)
Financial Highlights (Cont’d) Profit Before Tax (Realised) (RM'm) DPU (sen) 400.0 12.00 1 3.2% 10.00 300.0 8.00 6.92 7.06 203.8 201.9 200.0 6.00 4.00 2 100.0 2.27 2.28 2.57 2.37 2.37 66.8 67.1 73.6 69.9 67.7 2.12 60.6 2.00 - - 1Q 2Q 3Q YTD 1Q 2Q 3Q YTD 2017 2016 2017 2016 1 Profit Before Tax (Realis
Slide 9: 2. 3Q 2017 Financial Results
2. 3Q 2017 Financial Results Driving values through sustainable growth 9
Slide 10: Statement of Comprehensive Income – Consolidated
Statement of Comprehensive Income – Consolidated 1Q 2017 1Q 2016 2Q 2017 2Q 2016 3Q 2017 3Q 2016 Change YTD 2017 YTD 2016 Change RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 % RM'000 RM'000 % Gross revenue 128,879 121,216 126,880 131,867 134,573 130,345 3.2% 390,332 383,428 1.8% Less : Property operati
Slide 11: Statement of Comprehensive Income-Consolidated (Cont'd)
Statement of Comprehensive Income-Consolidated (Cont’d) Explanation: 1 Included in other income for 3Q2017 was unrealised fair value gain on interest rate swap amounting to RM0.4 million. Excluding the unrealised fair value gain, other income would amount to RM0.8 million which is marginally lower t
Slide 12: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 31.03.17 31.12.16 30.09.16 30.06.16 RM'000 RM'000 RM'000 RM'000 ASSETS Non-current assets Plant and equipment 9,168 9,046 9,088 8,698 Investment properties 6,514,392 6,502,892 6,458,982 6,433,000 Derivatives - 26,387 - - 6,523,560 6,538,325 6,468,070 6,
Slide 13: Debt Profile
Debt Profile Facility Limit RM'milion RM'million Loan Maturity Profile (RM'm) 1,000.0 Term Loan 422.0 442.31 Commercial Papers (CP) / 800.0 230.4 2 Revolving Loan (RL) 1,100.0 880.4 600.0 Unrated MTNs 1,000.0 1,000.0 400.0 Total Gross Borrowings 2,322.7 650.0 3 Discount on CP - 200.0 400.0 442.3 400
Slide 14: 3. 3Q 2017 Portfolio Performance
3. 3Q 2017 Portfolio Performance Driving values through sustainable growth 14
Slide 15: 3Q 2017 Revenue Contribution by Segment
3Q 2017 Revenue Contribution 3Q 2017 (RM'million) 134.6 3Q 2016 (RM'million) 130.3 By segment (RM'm) 140.0 3.9% 120.0 105.7 101.7 100.0 80.0 60.0 6.7% 17.4% 3.7% 40.0 15.2 16.3 20.0 8.1 6.9 5.6 5.4 - Retail Hotel Office Others 3Q 2017 3Q 2016 Note: Calculation of % of increase/decrease above varies
Slide 16: 3Q 2017 Revenue Contribution by Property
3Q 2017 Revenue Contribution (Cont’d) 3Q 2017 (RM'million) 134.6 3Q 2016 (RM'million) 130.3 Retail Hotel Office Others 100.0 By property (RM’m) 80.0 60.0 40.0 20.0 - Sun way Sun way Sun way SCI Sun way Sun way Sun way Sun way Sun way Sun way Sun way Resort Ho tel Ho tel Men ara Sun way Wisma Hyperma
Slide 17: 3Q 2017 Revenue Contribution (Cont'd)
3Q 2017 Revenue Contribution (Cont’d) Explanation: 1 Sunway Pyramid and Sunway Putra Mall – Higher revenue mainly due to higher average gross rent per sq. ft.. 2 Sunway Pyramid Hotel* – Closed for refurbishment since April 2016 (partially re-opened in November 2016 on a progressive basis). 3 Sunway
Slide 18: 3Q 2017 Revenue Contribution (Cont'd)
3Q 2017 Revenue Contribution (Cont’d) 3Q 2017 By Property % By segment Others Sunway Pyrami d 59.1% Office 4.2% 6.0% Sunway Carni val 8.8% Hotel SCI Hypermarket 0.9% 11.3% Sunway Putra Mal l 9.7% Total Retai l 78.5% Retail Sunway Res ort Hotel & Spa 6.7% 78.5% Sunway Pyrami d Hotel * 0.7% Sunway Hot
Slide 19: YTD 3Q 2017 Revenue Contribution by Segment
YTD 3Q 2017 Revenue Contribution YTD 3Q 2017 (RM'million) 390.3 YTD 3Q 2016 (RM'million) 383.4 By segment (RM'm) 400.0 6.3% 350.0 304.2 286.3 300.0 250.0 200.0 20.8% 3.2% 3.1% 3.2% 150.0 100.0 58.6 46.4 50.0 23.4 22.7 16.3 15.8 - Retail Hotel Office Others YTD 3Q 2017 YTD 3Q 2016 Note: Calculation o
Slide 20: YTD 3Q 2017 Revenue Contribution by Property
YTD 3Q 2017 Revenue Contribution (Cont’d) YTD 3Q 2017 (RM'million) 390.3 YTD 3Q 2016 (RM'million) 383.4 Retail Hotel Office Others 280.0 By property (RM’m) 240.0 200.0 160.0 120.0 80.0 40.0 - Sun way Sun way Sun way SCI Sun way Sun way Sun way Sun way Sun way Sun way Sun way Resort Ho tel Ho tel Men
Slide 21: YTD 3Q 2017 Revenue Contribution (Cont'd)
YTD 3Q 2017 Revenue Contribution (Cont’d) Explanation: 1 Sunway Pyramid, Sunway Pyramid Hotel, Sunway Putra Hotel and Sunway Putra Tower – Explanation similar to page 17. 2 Sunway Carnival – Higher revenue for YTD 3Q2017 following the completion of the 2nd floor food and beverage area with NLA of ap
Slide 22: YTD 3Q 2017 Revenue Contribution (Cont'd)
YTD 3Q 2017 Revenue Contribution (Cont’d) YTD 3Q 2017 By Property % By segment Others Sunway Pyrami d 58.5% Office 4.2% Sunway Carni val 8.8% 6.0% Hotel SCI Hypermarket 0.9% 11.9% Sunway Putra Mal l 9.7% Total Retai l 77.9% Retail Sunway Res ort Hotel & Spa 7.5% 77.9% Sunway Pyrami d Hotel * 0.4% Su
Slide 23: 3Q 2017 NPI Contribution by Segment
3Q 2017 NPI Contribution NPI Margin 3Q 2017 (RM'million) 100.2 74.4% 3Q 2016 (RM'million) 96.7 74.2% By Segment (RM'm) 100.0 3.5% 75.9 73.3 80.0 7.2% 66.7% 3.7% 60.0 40.0 20.0 14.2 15.3 4.5 2.7 5.6 5.4 - Retail Hotel Office Others 3Q 2017 3Q 2016 Note: Calculation of % of increase/decrease above var
Slide 24: 3Q 2017 NPI Contribution by Property
3Q 2017 NPI Contribution (Cont’d) NPI Margin 3Q 2017 (RM'million) 100.2 74.4% 3Q 2016 (RM'million) 96.7 74.2% Retail Hotel Office Others 70.0 65.0 By property (RM’m) 60.0 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 SCI Sunway Sunway Sunway Sunway Sunway Sunway Sunway Hotel S
Slide 25: 3Q 2017 NPI Contribution (Cont'd)
3Q 2017 NPI Contribution (Cont’d) Explanation: 1 Sunway Pyramid – Higher NPI of RM1.3 million mainly due to higher revenue of RM1.9 million, partially offset by higher advertising and promotion ("A&P") expenses. 2 Sunway Putra Mall – Higher NPI of RM1.2 million mainly due to higher revenue of RM1.9
Slide 26: 3Q 2017 NPI Contribution (Cont'd)
3Q 2017 NPI Contribution (Cont’d) 3Q 2017 By segment By Property % Others Office 5.6% Sunway Pyrami d 60.1% 4.5% Sunway Carni val 7.7% Hotel SCI Hypermarket 1.2% 14.2% Sunway Putra Mal l 6.7% Total Retai l 75.7% Retail Sunway Res ort Hotel & Spa 8.7% 75.7% Sunway Pyrami d Hotel * 0.8% Sunway Hotel S
Slide 27: YTD 3Q 2017 NPI Contribution by Segment
YTD 3Q 2017 NPI Contribution NPI Margin YTD 3Q 2017 (RM'million) 290.3 74.4% YTD 3Q 2016 (RM'million) 283.7 74.0% By Segment (RM'm) 280.0 8.2% 240.0 218.2 201.6 200.0 21.9% 160.0 16.0% 3.2% 120.0 80.0 55.7 43.5 40.0 12.3 10.6 16.3 15.8 - Retail Hotel Office Others YTD 3Q 2017 YTD 3Q 2016 Note: Calcu
Slide 28: YTD 3Q 2017 NPI Contribution by Property
YTD 3Q 2017 NPI Contribution (Cont’d) NPI Margin YTD 3Q 2017 (RM'million) 290.3 74.4% YTD 3Q 2016 (RM'million) 283.7 74.0% Retail Hotel Office Others 200.0 180.0 By property (RM’m) 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 Sunway Hotel
Slide 29: YTD 3Q 2017 NPI Contribution (Cont'd)
YTD 3Q 2017 NPI Contribution (Cont’d) Explanation: 1 Sunway Pyramid – NPI for YTD 3Q2017 was higher by RM6.6 million due to higher YTD 3Q2017 revenue by RM6.2 million and lower allowance for doubtful debts. 2 Sunway Carnival - NPI for YTD 3Q2017 was higher by RM0.9 million due to higher YTD 3Q2017 r
Slide 30: YTD 3Q 2017 NPI Contribution (Cont'd)
YTD 3Q 2017 NPI Contribution (Cont’d) YTD 3Q 2017 By Property % By segment Others Sunway Pyrami d 59.2% Office 5.6% Sunway Carni val 7.6% 4.3% Hotel SCI Hypermarket 1.3% 15.0% Sunway Putra Mal l 7.0% Total Retai l 75.1% Retail Sunway Res ort Hotel & Spa 9.6% 75.1% Sunway Pyrami d Hotel * 0.5% Sunway
Slide 31: Resilient Income Stream
Resilient Income Stream Well spread-out lease expiry profile and diverse tenant base WALE 1 as at 31 March 2017 – 2.02 years Top 10 tenants contribute approximately 12.5% of total revenue Projected tenancy expiry of portfolio 2 Top 10 tenants 4 60.0% 58.7% Total Top 10 Tenants 12.5% Parkson Corporat
Slide 32: 4. 3Q 2017 Property Performance
4. 3Q 2017 Property Performance Driving values through sustainable growth 32
Slide 33: Retail Properties: Sunway Pyramid Shopping Mall
RETAIL PROPERTIES SUNWAY PYRAMID SHOPPING MALL Historical occupancy rates Projected lease expiry schedule Average occupancy rate 50.0% 40.0% 100.0% 98.6% 98.3% 97.8% 98.1% 98.3% 97.9% 98.4% 30.0% 95.0% 90.0% 20.0% 85.0% 10.0% 80.0% 4.6% 33.9% 14.9% 40.8% 3.9% 0.0% FY2017 FY2018 FY2019 FY2020 Monthly
Slide 34: 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 13.7% Aeon Co. (M) Bhd 2.2% 22.3% (Aeon) Cotton On (Malaysia) Sdn Bhd 35.7% 1.8% (Typo, Factorie, Cotton On) Parkson Corporation Sdn Bhd 1.7% 4.6% (Parkson, Models Own & Origin) TGV Cinemas Sdn
Slide 35: Retail Properties: Sunway Carnival Shopping Mall
RETAIL PROPERTIES SUNWAY CARNIVAL SHOPPING MALL Historical occupancy rates Projected lease expiry schedule Average occupancy rate 40.0% 100.0% 30.0% 97.4% 97.3% 97.3% 94.4% 93.8% 95.0% 92.0% 20.0% 91.2% 90.0% 10.0% 85.0% 80.0% 20.5% 20.1% 19.7% 36.6% 0.8% 0.0% FY2017 FY2018 FY2019 FY2020 Monthly 75.
Slide 36: 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 21.8% Parkson Corporation Sdn Bhd 8.7% (Parkson) 23.6% 25.3% Sam's Groceria Sdn Bhd 2.3% (Sam's Groceria) Sunway Hotel (Seberang Jaya) Sdn Bhd 2.0% (Sunway Carnival Convention Centre) Life Hab
Slide 37: Retail Properties: Suncity Ipoh Hypermarket
RETAIL PROPERTIES SUNCITY IPOH HYPERMARKET Historical occupancy rates Average occupancy rate 100% 100% 100% 100% 100% 100% 100% 100% 95% 90% 85% 80% 75% Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 YTD 3Q YTD 3Q 2017 2016 Suncity Ipoh Hypermarket is tenanted to a single tenant, a major hypermarket and retaile
Slide 38: Retail Properties: Sunway Putra Mall
RETAIL PROPERTIES SUNWAY PUTRA MALL Historical occupancy rates Projected lease expiry schedule Average occupancy rate 60.0% 50.0% 100.0% # 86.0% 84.3% 82.4% 40.0% 79.8% 80.0% 74.9% 69.8% 30.0% 60.0% 20.0% 40.0% 10.0% 20.0% 2.9% 59.5% 22.5% 2.5% 0.0% * FY2017 FY2018 FY2019 FY2020 0.0% 0.0% Jun-12 Jun
Slide 39: Sunway Putra Mall (Cont'd)
RETAIL PROPERTIES SUNWAY PUTRA MALL (Cont’d) Tenant mix 1 Top 10 tenants 1 Total Top 10 Tenants 18.4% TGV Cinemas Sdn Bhd 4.2% (TGV Cinemas) 25.7% Jerasia Fashion Sdn Bhd 2.3% (Mango, Nike) 36.9% Padini Dot Com Sdn Bhd 1.8% (Padini Concept Store) 1.7% Parenthood Venture Sdn Bhd 1.7% 3.3% (The Parent
Slide 40: Hospitality Properties: Sunway Resort Hotel & Spa
HOSPITALITY PROPERTIES SUNWAY RESORT HOTEL & SPA Historical occupancy rate Average occupancy rate Average occupancy rate (%) 94.3% 90.0% 95.0% 84.8% 83.8% 85.0% 81.2% 78.8% 78.0% 80.0% 76.0% 90.0% 87.4% 75.0% 71.3% 85.0% 70.0% 82.2% 81.8% 65.0% 80.3% 79.5% 80.0% 60.0% 55.0% 73.6% 75.0% 50.0% Jun-12
Slide 41: Hospitality Properties: Sunway Pyramid Hotel
HOSPITALITY PROPERTIES SUNWAY PYRAMID HOTEL (formerly known as SUNWAY PYRAMID HOTEL EAST) Historical occupancy rate Average occupancy rate (%) Average occupancy rate 90.0% 83.1% 82.4% 81.4% 90.0% 78.7% 80.0% 79.8% # 80.3% 71.8% 71.8% 78.2% 80.0% 70.0% # 60.0% 70.0% 51.6% 50.0% 60.0% 55.2% 40.0% * 50
Slide 42: 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% 70.2% 69.6% 80.0% 76.0% 67.8% 69.3% 65.5% 73.9% 70.0% 62.0% 70.2% 70.0% 60.0% 51.6% 64.1% 63.9% 61.9% 60.2% 50.0% 60.0% 40.0% Jun-12 Jun-13 Jun-14 Jun-15 Ju
Slide 43: Hospitality Properties: Sunway Putra Hotel
HOSPITALITY PROPERTIES SUNWAY PUTRA HOTEL Historical occupancy rate Average occupancy rate Average occupancy rate (%) 80.0% 80.0% 69.4% 71.7% 70.0% 69.0% 59.0% 60.2% 70.0% 67.0% 60.0% 50.2% 46.4% 61.5% 42.6% 58.3% 50.0% 60.0% 40.0% 28.8% 50.0% 45.0% 30.0% 20.0% 40.0% 36.5% 10.0% 0.0% 30.0% Jun-12 *
Slide 44: Hospitality Properties: Sunway Hotel Georgetown
HOSPITALITY PROPERTIES SUNWAY HOTEL GEORGETOWN Historical occupancy rate Average occupancy rate Average occupancy rate (%) 87.4% 90.0% 88.7% 87.3% 86.4% 90.0% 76.0% 85.0% 82.6% 80.0% 74.0% 70.4% 69.1% 71.2% 80.0% 70.0% 74.1% 60.0% 54.7% 75.0% 70.7% 70.0% 68.8% 50.0% 40.0% 65.0% Jun-12 # Jun-13 # Jun
Slide 45: Office Properties: Menara Sunway
OFFICE PROPERTIES MENARA SUNWAY Historical occupancy rates Projected lease expiry schedule Average occupancy rate 100.0% 100.0% 98.5% 98.9% 98.8% 80.0% 97.1% 95.0% 60.0% 91.1% 89.3% 89.8% 90.0% 40.0% 85.0% 20.0% 80.0% 5.8% 84.0% 3.8% 0.0% 75.0% FY2018 FY2019 FY2020 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16
Slide 46: Menara Sunway (Cont'd)
OFFICE PROPERTIES MENARA SUNWAY (Cont’d) Tenant mix 1 Top 10 tenants 1 2.0% Total Top 10 Tenants 75.1% 12.3% 2.6% Sunway Management Sdn Bhd 20.7% 2.7% 31.3% Sunway Integrated Properties Sdn Bhd 17.7% 4.5% Sunway Construction Group Berhad 8.6% 5.9% Merck Sdn Bhd 7.1% 7.1% Sunway Shared Service Sdn Bh
Slide 47: Office Properties: Sunway Tower
OFFICE PROPERTIES SUNWAY TOWER Historical occupancy rates Projected lease expiry schedule Average occupancy rate 12.0% 100.0% 93.5% 9.0% 83.0% 84.3% 80.0% 66.9% 6.0% 60.0% 3.0% 40.0% 19.6% 20.7% 18.9% 20.0% 7.4% 11.7% 1.6% 0.0% FY2018 FY2019 FY2020 0.0% Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 YTD 3Q YTD
Slide 48: Sunway Tower (Cont'd)
OFFICE PROPERTIES SUNWAY TOWER (Cont’d) Tenant mix 1 Top 10 tenants 1 Total Top 10 Tenants 99.2% 5.2% 8.1% WPP Business Services Sdn Bhd 20.2% VPO Services Sdn Bhd 19.2% 14.4% ZJ Advisory Sdn Bhd 15.8% 52.1% Royal Danish Embassy 14.4% Bexcel Shared Services Malaysia Sdn Bhd 11.5% 20.2% R1 Internatio
Slide 49: Office Properties: Sunway Putra Tower
OFFICE PROPERTIES SUNWAY PUTRA TOWER Historical occupancy rates Projected lease expiry schedule Average occupancy rate 20.0% 100.0% 15.0% 85.2% 78.0% 80.0% 74.2% 10.0% 60.0% 52.8% 40.0% 34.8% 5.0% 26.4% 26.6% 20.0% 4.3% 17.6% 19.9% 0.0% FY2018 FY2019 FY2020 0.0% Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 YT
Slide 50: Sunway Putra Tower (Cont'd)
OFFICE PROPERTIES SUNWAY PUTRA TOWER (Cont’d) Tenant mix 1 Top tenants 1 Total Top Tenants 100.0% 1.3% 3.2% Kementerian Perdagangan Dalam Negeri 39.7% Koperasi Dan Kepenggunaan Malaysia Lembaga Pembangunan Industri Pembinaan 36.2% Malaysia (CIDB) Jabatan Perdana Menteri (I.C.U) 9.7% Cradle Fund Sdn
Slide 51: Office Properties: Wisma Sunway
OFFICE PROPERTIES WISMA SUNWAY Historical occupancy rates Projected lease expiry schedule Average occupancy rate 40.0% 100.0% 30.0% 89.8% 90.1% 90.7% 90.0% 86.9% 87.6% 85.1% 20.0% 80.9% 80.0% 10.0% 70.0% 60.0% 5.2% 32.9% 30.9% 18.6% 0.0% FY2017 FY2018 FY2019 FY2020 50.0% # # # * Jun-12 Jun-13 Jun-14
Slide 52: Wisma Sunway (Cont'd)
OFFICE PROPERTIES WISMA SUNWAY (Cont’d) Tenant mix 1 Top tenants 1 Total Top Tenants 100.0% 3.4% 2.2% Jabatan Kesihatan Negeri Selangor 35.1% Jabatan Alam Sekitar 31.8% Lembaga Hasil Dalam Negeri 15.9% Yayasan Penyelidikan Transformasi 6.3% Pejabat Tindakan Pelancongan Negeri 5.3% 94.4% Selangor SM
Slide 53: 5. Market Outlook
5. Market Outlook Driving values through sustainable growth 53
Slide 54: General Outlook
General Outlook o After a sluggish year in CY2016, global economy growth is projected to pick up to 2.7% in CY2017, based on World Bank’s estimates. Global growth is expected to be underpinned by domestic demand in the advanced and emerging market economies. The outlook would also be supported by a
Slide 55: General Outlook
General Outlook o BNM has reiterated that monetary policy stance for CY2017 is to sustain a steady growth path amid price stability. The policy environment is expected to remain challenging in view of the expected higher inflation, volatile capital flows and lingering uncertainties in the global eco
Slide 56: Retail Segment
Retail Segment o In a recent report by the Retail Group Malaysia (“RGM”), Malaysia’s retail sales recorded marginal growth of 0.3% year-on-year (y-o-y) in 4Q CY2016 as consumers continued to tighten their belts. This translated into CY2016 retail sales of 1.7% y-o-y, similar to the growth of 1.4% y-
Slide 57: Retail Segment (Cont'd)
Retail Segment (Cont’d) o Likewise, the average occupancy rate for Sunway Putra Mall improved marginally to 86.0% for YTD 3Q FY2017, from 85.5% for YTD 2Q FY2017. o The Manager remains cautious on the outlook for the retail segment for the remaining quarter of FY2017 in the absence of catalyst to dr
Slide 58: Hotel Segment
Hotel Segment o Malaysia has achieved higher tourist arrival of 26.8 million tourists in CY2016, from 25.7 million tourists a year ago. This represents a growth of 4.0%, however, it is still below the official target of 30.5 million. The Tourism and Culture Ministry aims to record 31.8 million touri
Slide 59: Hotel Segment (Cont'd)
Hotel Segment (Cont’d) o Sunway Putra Hotel’s average occupancy rate improved to 67.0% in 3Q FY2017 compared to 58.3% in the same quarter last year as the hotel gains traction through its ongoing marketing and promotional rates campaign to regain market share across all customer segments. o In 3Q FY
Slide 60: Office Segment
Office Segment o The existing stock of office space in the Klang Valley stood at approximately 118 million sq.ft. in 2016. The future supply of office space is expected to continue to grow with an estimate of approximately 9.5 million sq.ft. to be completed by 2018. o The oversupply property market
Slide 61: Office Segment (Cont'd)
Office segment (Cont’d) o Sunway Putra Tower has reported an improvement in average occupancy rate following commencement of new tenants in 2Q FY2017 and 3Q FY2017. The average occupancy rate increased further to 34.8% for YTD 3Q FY2017 in comparison with 31.2% for YTD 2Q FY2017. The occupancy rate
Slide 62: 6. Investor Relations
6. Investor Relations 62 Driving values through sustainable growth
Slide 63: Unit Price Performance from IPO to YTD3Q2017
Unit Price Performance from IPO to YTD3Q2017 Unit Price Performance of Sunway REIT versus Benchmarks (8 July 2010 – 31 March 2017) TR/GPR/APREA Composite REIT Index Malaysia 140.0% 134.0% 120.0% 100.0% 80.0% Sunway REIT 60.0% 91.1% 40.0% 20.0% FBM KLCI 32.2% 0.0% Dec 2010 Dec 2011 Dec 2012 Dec 2013
Slide 64: Unit Price Performance for YTD3Q2017
Unit Price Performance for YTD3Q2017 12.0% Unit Price Performance of Sunway REIT versus Benchmarks (30 June 2016 – 31 March TR/GPR/APREA 2017) Composite REIT Index Malaysia 10.0% 8.4% 8.0% FBM KLCI 5.2% 6.0% 4.0% 2.0% Sunway REIT 3.6% 0.0% Jun 2016 Sep 2016 Dec 2016 Mar 2017 -2.0% -4.0% Performance
Slide 65: Indices Representation
Indices Representation o Sunway REIT is represented in the following indices: FTSE Bursa Malaysia Mid 70 Index FTSE4Good Bursa Malaysia Index TR / GPR / APREA Composite REIT Index Malaysia FTSE EPRA / NAREIT Global REIT Index FTSE EPRA / NAREIT Global Index FTSE EPRA / NAREIT Asia ex Japan Index FTS
Slide 66: Unitholders' Composition (as at 31 March 2017)
Unitholders’ Composition (as at 31 March 2017) Retail Foreign 10.2% 17.6% Sunway Berhad 37.3% Institutions & Corporate Domestic 52.5% 82.4% December 2016 March 2017 Q-o-Q Change No of unitholders 9,869 10,048 179 (+1.8%) Retail unitholders 13.0% 10.2% -2.8% Foreign unitholders 13.3% 17.6% +4.3% Sunw
Slide 67: Analysts Recommendation (as at March 2017)
Analysts Recommendation (as at 31 March 2017) 10.5 9.3 9.3 Target Price (RM) 7.6 7.0 7.0 Upside / Downside to unit price as at 31 March 2017 (%) 4.7 4.1 1.90 1.88 1.88 1.85 1.85 1.84 1.84 1.75 1.7 1.74 1.2 1.74 1.2 1.70 1.70 1.49 1.79 (1.2) (1.2) (13.4) UOB Kay Hian AmInvestment Bank TA Research RHB
Slide 68: Comparative Yields for Various Assets
Comparative Yields for Various Assets 7.0% 6.0% 5.72%2 5.70%5 5.29%1 5.0% 4.13%3 4.0% 3.09%4 3.00%6 3.0% 2.0% 1.0% 0.0% Sunway REIT M-REITs 10-Year MGS Fixed Deposit EPF Yield OPR Note: 1 Distribution yield based on consensus DPU of 9.1 sen and unit price as at 31 March 2017 (Source: Bloomberg) 2 In
Slide 69: Thank You
THANK YOU Driving values through sustainable growth
Sunway Real Estate Investment Trust — Q3 FY2017 Earnings Presentation on 6ix