Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — Q4 2018 Earnings Presentation
76 slides from Sunway Real Estate Investment Trust's earnings presentation, Aug 9, 2018
Slide 1: Sunway REIT Financial Results 4th Quarter Ended 30 June 2018
Sunway REIT Financial Results 4th Quarter Ended 30 June 2018 (FYE 30 June 2018) Announcement Date: 9 August 2018
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 2018 Financial Results 3. 4Q 2018 Portfolio Performance 4. 4Q 2018 Property Performance 5. Property Development Activities 6. Market Outlook 7. 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 2018 - 30 June 2018 Distribution Per Unit (DPU) (sen) 2.15 1 Notice of Entitlement 9 August 2018 Ex-Dividend Date 23 August 2018 Book Closure Date 27 August 2018 Payment Date 12 September 2018 1 Proposed income distributi
Slide 6: Financial Highlights
Financial Highlights Highlights 4Q 2018 4Q 2017 No. of Properties 16 14 Property Value (RM'billion) 7.280 6.689 No. of Units in Circulation 2,945,078,000 2,945,078,000 Unit Price as at 30 June (RM) 1.77 1.78 Market Capitalisation (RM'billion) 5.213 5.242 Net Asset Value (NAV) Per Unit (RM) 1.4566 1.
Slide 7: Financial Highlights (Cont'd)
Financial Highlights (Cont’d) Gross Revenue (RM'm) Net Property Income (RM'm) 600.0 560.4 500.0 522.9 500.0 419.9 388.8 400.0 400.0 300.0 300.0 1 2 2.8% 1.8% 200.0 200.0 141.2 141.5 141.5 134.6 136.2 128.9 126.9 132.5 110.9 105.3 100.3 98.5 103.494.1 100.2 100.0 96.0 100.0 - - 1Q 2Q 3Q 4Q YTD 1Q 2Q
Slide 8: Financial Highlights (Cont'd)
Financial Highlights (Cont’d) Profit Before Tax (Realised) (RM'm) DPU (sen) 12.00 2 400.0 1 4.1% 4.2% 10.00 9.57 9.19 300.0 281.9 270.6 8.00 200.0 6.00 1 5.2% 2 4.00 5.3% 2.67 100.0 78.6 70.1 2.27 2.38 2.37 2.37 2.15 2.27 66.8 67.1 69.9 69.9 63.3 66.8 2.28 2.00 - - 1Q 2Q 3Q 4Q YTD 1Q 2Q 3Q 4Q YTD 20
Slide 9: 2. 4Q 2018 Financial Results
2. 4Q 2018 Financial Results Driving values through sustainable growth 9
Slide 10: Statement of Comprehensive Income – Consolidated
Statement of Comprehensive Income – Consolidated 1Q 2018 1Q 2017 2Q 2018 2Q 2017 3Q 2018 3Q 2017 4Q 2018 4Q 2017 Change YTD 2018 YTD 2017 Change RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 % RM'000 RM'000 % Gross revenue 141,169 128,879 141,470 126,880 141,515 134,573 136,252 132,536 2.8
Slide 11: Statement of Comprehensive Income-Consolidated (Cont'd)
Statement of Comprehensive Income-Consolidated (Cont’d) Explanation: 1 Interest income for 4Q2018 increased by 0.9 million compared to 4Q2017 primarily contributed by interest income from investment in money market instrument during the quarter of RM0.8 million and higher interest income from financ
Slide 12: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 30.06.18 30.06.17 * RM'000 RM'000 ASSETS Non-current assets 1 Investment properties 7,280,225 6,689,200 Plant and equipment 13,591 9,063 7,293,816 6,698,263 Current assets Trade receivables 21,4232 17,397 3 Other receivables 10,669 19,117 Derivatives 10
Slide 13: Statement of Financial Position - Consolidated (Cont'd)
Statement of Financial Position - Consolidated (Cont’d) Explanation: 1 Investment properties increased by RM0.6 billion to RM7.3 billion primarily attributable to acquisitions during the year, namely Sunway REIT Industrial – Shah Alam 1 of RM92.5 million and Sunway Clio Property of RM343.6 million,
Slide 14: Statement of Cash Flows – Consolidated
Statement of Cash Flows – Consolidated Cumulative Quarter ended 30.06.2018 30.06.2017 1 Net cash from operating activities at RM379.9 RM'000 RM'000 million, higher by RM20.9 million mainly due to OPERATING ACTIVITIES higher net property income. Cash receipts from customers 617,849 599,159 Refundable
Slide 15: Debt Profile as of 30 June 2018
Debt Profile as of 30 June 2018 Facility Limit Amount RM'milion RM'million Loan Maturity Profile (RM'm) Revolving Loan (USD100m) 392.9 403.81 1,200.0 Commercial Papers (CP) / 1,000.0 Revolving Loan (RL) 1,200.0 1,199.0 2 800.0 Unrated MTNs 10,000.0 1,300.03 1,049.0 600.0 Total Gross Borrowings 2,902
Slide 16: 3. 4Q 2018 Portfolio Performance
3. 4Q 2018 Portfolio Performance Driving values through sustainable growth 16
Slide 17: 4Q 2018 Revenue Contribution by Segment
4Q 2018 Revenue Contribution 2.8% 4Q 2018 (RM'million) 136.2 4Q 2017 (RM'million) 132.5 By segment (RM'm) 160.0 0.4% 120.0 101.2 100.8 80.0 3.3% 13.8% 28.6% 40.0 18.7 18.1 9.1 8.0 7.2 5.6 - Retail Hotel Office Others 4Q 2018 4Q 2017 Note: Calculation of % of increase/decrease above varies marginally
Slide 18: 4Q 2018 Revenue Contribution (Cont'd)
4Q 2018 Revenue Contribution (Cont’d) 2.8% 4Q 2018 (RM'million) 136.2 4Q 2017 (RM'million) 132.5 Retail Hotel Office Others 100.0 By property (RM’m) 80.0 60.0 40.0 20.0 - Sunway SunCity Sunway Sunway Sunway Sunway Sunway Sunway Sunway Sunway Sunway Sunway Sunway REIT Ipoh Resort Hotel Hotel Clio Men
Slide 19: 4Q 2018 Revenue Contribution (Cont'd)
4Q 2018 Revenue Contribution (Cont’d) Explanation: 1 Sunway Pyramid Mall – Increase by RM1.7 million mainly contributed by higher average gross rent per sq. ft.. 2 Sunway Putra Mall – Lower by RM1.0 million mainly attributable to lower average rental. 3 Cluster hotels in Sunway City (Sunway Resort H
Slide 20: 4Q 2018 Revenue Contribution (Cont'd)
4Q 2018 Revenue Contribution (Cont’d) 4Q 2018 By Property % By segment (Q4) Others Sunway Pyrami d Mal l 56.5% Office 5.3% Sunway Carni val Mal l 8.4% 6.7% SunCi ty Ipoh Hypermarket 0.8% Sunway Putra Mal l 8.6% Hotel 13.7% Total Retai l 74.3% Sunway Res ort Hotel & Spa 4.4% Retail Sunway Pyrami d Ho
Slide 21: YTD 4Q 2018 Revenue Contribution by Segment
YTD 4Q 2018 Revenue Contribution YTD 4Q 2018 (RM'million) 560.4 7.2% YTD 4Q 2017 (RM'million) 522.9 2.8% By segment (RM'm) 500.0 416.5 405.0 400.0 300.0 28.1% 6.3% 26.9% 200.0 82.6 100.0 64.5 33.5 31.5 27.8 21.9 - Retail Hotel Office Others YTD 4Q 2018 YTD 4Q 2017 Note: Calculation of % of increase/
Slide 22: YTD 4Q 2018 Revenue Contribution (Cont'd)
YTD 4Q 2018 Revenue Contribution (Cont’d) YTD 4Q 2018 (RM'million) 560.4 7.2% YTD 4Q 2017 (RM'million) 522.9 Retail Hotel Office Others 350.0 By property (RM’m) 300.0 250.0 200.0 150.0 100.0 50.0 - Sunway SunCity Sunway Sunway Sunway Sunway Sunway Sunway Sunway Sunway Sunway Sunway Sunway REIT Ipoh
Slide 23: YTD 4Q 2018 Revenue Contribution (Cont'd)
YTD 4Q 2018 Revenue Contribution (Cont’d) Explanation: 1 Sunway Pyramid Mall, Cluster hotels in Sunway City, Sunway Putra Tower, Wisma Sunway and Sunway REIT Industrial – Shah Alam 1 – Similar explanations as per page 19. 2 Sunway Carnival Mall – Despite lower 4Q2018, the increase for YTD4Q2018 by R
Slide 24: YTD 4Q 2018 Revenue Contribution (Cont'd)
YTD 4Q 2018 Revenue Contribution (Cont’d) YTD 4Q 2018 By Property % By segment YTD Q4 Sunway Pyrami d Mal l 56.0% Others Office 5.0% Sunway Carni val Mal l 8.4% 6.0% SunCi ty Ipoh Hypermarket 0.8% Hotel Sunway Putra Mal l 9.1% 14.7% Total Retai l 74.3% Sunway Resort Hotel & Spa 6.5% Retail 74.3% Sun
Slide 25: 4Q 2018 NPI Contribution by Segment
4Q 2018 NPI Contribution NPI Margin 1.8% 4Q 2018 (RM'million) 100.3 73.6% 4Q 2017 (RM'million) 98.5 74.3% By Segment (RM'm) 100.0 1.4% 80.0 70.7 71.7 60.0 -10.0% 40.0 28.6% 28.6% 17.0 17.0 20.0 5.4 4.2 7.2 5.6 - Retail Hotel Office Others 4Q 2018 4Q 2017 Note: Calculation of % of increase/decrease a
Slide 26: 4Q 2018 NPI Contribution (Cont'd)
4Q 2018 NPI Contribution (Cont’d) NPI Margin 1.8% 4Q 2018 (RM'million) 100.3 73.6% 4Q 2017 (RM'million) 98.5 74.3% Retail Hotel Office Others 80.0 By property (RM’m) 60.0 40.0 20.0 - Sunway SunCity Sunway Sunway Sunway Sunway Sunway Sunway Sunway Sunway Sunway Sunway Sunway REIT Ipoh Resort Hotel Ho
Slide 27: 4Q 2018 NPI Contribution (Cont'd)
4Q 2018 NPI Contribution (Cont’d) Explanation: The variances for 4Q NPI for all the properties were in line with the explanation for variances for 4Q Revenue as per Page 19 with exception to: 1 Sunway Pyramid Mall – NPI increased by RM0.2 million although revenue was higher by RM1.7 million mainly a
Slide 28: 4Q 2018 NPI Contribution (Cont'd)
4Q 2018 NPI Contribution (Cont’d) 4Q 2018 By Property % By segment Q4 Office Sunway Pyrami d Mal l 57.5% 5.4% Others 7.2% Sunway Carni val Mal l 6.5% SunCi ty Ipoh Hypermarket 1.0% Sunway Putra Mal l 5.5% Hotel 16.9% Total Retai l 70.5% Retail Sunway Resort Hotel & Spa 5.6% 70.5% Sunway Pyrami d Hot
Slide 29: YTD 4Q 2018 NPI Contribution by Segment
YTD 4Q 2018 NPI Contribution NPI Margin 8.0% YTD 4Q 2018 (RM'million) 419.9 74.9% YTD 4Q 2017 (RM'million) 388.9 74.4% By Segment (RM'm) 400.0 2.4% 296.9289.9 300.0 28.2% 200.0 7.2% 6.1% 26.9% 100.0 77.7 60.6 17.5 16.5 27.8 21.9 - Retail Hotel Office Others YTD 4Q 2018 YTD 4Q 2017 Note: Calculation
Slide 30: YTD 4Q 2018 NPI Contribution (Cont'd)
YTD 4Q 2018 NPI Contribution (Cont’d) NPI Margin 8.0% YTD 4Q 2018 (RM'million) 419.9 74.9% YTD 4Q 2017 (RM'million) 388.9 74.4% Retail Hotel Office Others 300.0 By property (RM’m) 250.0 200.0 150.0 100.0 50.0 - Sunway SunCity Sunway Sunway Sunway Sunway Sunway Sunway Sunway Sunway Sunway Sunway Sunw
Slide 31: YTD 4Q 2018 NPI Contribution (Cont'd)
YTD 4Q 2018 NPI Contribution (Cont’d) Explanation: The variances for YTD4Q NPI for all the properties were in line with the explanation for variances for YTD4Q Revenue as per Page 23 with exception to: 1 Sunway Pyramid Mall – NPI increased by RM8.3 million although revenue was higher by RM10.8 milli
Slide 32: YTD 4Q 2018 NPI Contribution (Cont'd)
YTD 4Q 2018 NPI Contribution (Cont’d) YTD 4Q 2018 By Property % By segment YTD Q4 Office 4.2% Others Sunway Pyrami d Mal l 56.7% 6.6% Sunway Carni val Mal l 6.9% SunCi ty Ipoh Hypermarket 1.0% Hotel Sunway Putra Mal l 6.1% 18.5% Total Retai l 70.7% Retail Sunway Resort Hotel & Spa 8.5% 70.7% Sunway
Slide 33: Resilient Income Stream
Resilient Income Stream WALE 1 as at 30 June 2018 – 1.99 years Top 10 tenants contribute approximately 11.8% of total revenue Projected tenancy expiry of portfolio 2 Top 10 tenants 4 50.0% 41.6% 39.8% 40.0% 30.0% 20.0% 13.4% 3 10.0% 0.0% FY2019 FY2020 After FY2020 1 Calculated based on gross rental
Slide 34: 4. 4Q 2018 Property Performance
4. 4Q 2018 Property Performance Driving values through sustainable growth 34
Slide 35: Retail Properties: Sunway Pyramid Shopping Mall
RETAIL PROPERTIES SUNWAY PYRAMID SHOPPING MALL Historical occupancy rates Projected lease expiry schedule Average occupancy rate 50.0% 100.0% 98.9% 97.8% 98.1% 98.3% 98.0% 40.0% 95.0% 30.0% 90.0% 20.0% 85.0% 10.0% 80.0% 17.3% 47.4% 28.5% 5.6% 0.0% 75.0% FY2019 FY2020 FY2021 Monthly Jun-14 Jun-15 Jun
Slide 36: Sunway Pyramid Shopping Mall (Cont'd)
RETAIL PROPERTIES SUNWAY PYRAMID SHOPPING MALL (Cont’d) Tenant mix 1 Top 10 tenants 1 13.1% Total Top 10 Tenants Aeon Co. (M) Bhd 2.2% (AEON) 24.3% Parkson Corporation Sdn Bhd 1.7% 33.7% (Parkson, Origin) TGV Cinemas Sdn Bhd 1.4% (TGV Cinemas) Sunway Resort Hotel Sdn Bhd 1.3% 6.6% (Sunway Pyramid Co
Slide 37: Retail Properties: Sunway Carnival Shopping Mall
RETAIL PROPERTIES SUNWAY CARNIVAL SHOPPING MALL Historical occupancy rates Projected lease expiry schedule Average occupancy rate 80.0% 100.0% 97.6% 60.0% 97.3% 97.3% 95.0% 94.4% 92.0% 40.0% 90.0% 85.0% 20.0% 80.0% 22.7% 62.4% 11.6% 1.2% 0.4% 0.0% FY2019 FY2020 FY2021 FY2022 Monthly 75.0% tenancy Ju
Slide 38: 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 22.6% Parkson Corporation Sdn Bhd 20.5% 8.5% (Parkson) 27.7% Sam's Groceria Sdn Bhd 2.6% (Sam's Groceria) PECC Sdn Bhd 1.9% (Prai Exhibition Convention Centre) CG Computers Sdn Bhd 1.9% (Switc
Slide 39: Retail Properties: SunCity Ipoh Hypermarket
RETAIL PROPERTIES SUNCITY IPOH HYPERMARKET Historical occupancy rates Average occupancy rate 100% 100% 100% 100% 100% 100% 95% 90% 85% 80% 75% Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Suncity Ipoh Hypermarket is leased to a single tenant, a major hypermarket and retailer chain operating under the “Giant”
Slide 40: 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% 90.7% 2 86.3% 82.4% 40.0% 80.0% 74.9% 30.0% 60.0% 20.0% 40.0% 10.0% 20.0% 25.5% 1 6.6% 52.7% 5.4% 0.0% 0.0% 0.0% FY2019 FY2020 FY2021 Monthly Jun-14 Jun-15 Jun-16
Slide 41: Sunway Putra Mall (Cont'd)
RETAIL PROPERTIES SUNWAY PUTRA MALL (Cont’d) Tenant mix 1 Top 10 tenants 1 Total Top 10 Tenants 20.5% TGV CINEMAS SDN BHD (TGV 22.7% 4.5% CINEMAS) PADINI DOT COM SDN BHD (PADINI 2.8% CONCEPT STORE) 37.6% PARENTHOOD VENTURE SDN BHD 2.6% (THE PARENTHOOD) 2.3% 1.8% GCH RETAIL (MALAYSIA) SDN BHD 1.8% (C
Slide 42: Retail Properties: Sunway Clio Retail
RETAIL PROPERTIES SUNWAY CLIO RETAIL Historical occupancy rates Projected lease expiry schedule Average occupancy rate 50.0% 100.0% 88.2% 40.0% 80.0% 30.0% 60.0% 20.0% 37.5% 40.0% 10.0% 20.0% 10.2% 32.8% 45.2% 3.0% 0.0% 0.0% FY2019 FY2020 FY2021 Jun-16 Jun-17 Jun-18 Expiring tenancies as % of total
Slide 43: Sunway Clio Retail (Cont'd)
RETAIL PROPERTIES SUNWAY CLIO RETAIL (Cont’d) Tenant mix 1 Top tenants 1 Grand Total 100.0% Parenthood Superstore Sdn Bhd 40.5% (The Parenthood) KFP Village (M) Sdn Bhd 36.3% (Kung Fu Panda) 48.8% Epiccsoul Sdn Bhd 11.2% 51.2% (Impressoul Gastrology) Berjaya Starbucks Coffee Sdn Bhd 5.0% (Starbucks
Slide 44: 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% 81.5% 78.8% 78.0% 80.0% 100.0% 94.3% 73.5% 90.4% 75.0% 90.0% 70.0% 80.3% 79.5% 80.0% 71.7% 73.7% 65.0% 69.6% 70.0% 60.0% 60.2% 55.0% 60.0% 50.0% 50.0% Jun-14 Jun-1
Slide 45: Hospitality Properties: Sunway Pyramid Hotel
HOSPITALITY PROPERTIES SUNWAY PYRAMID HOTEL Historical occupancy rate Average occupancy rate Average occupancy rate (%) 90.0% 90.0% 82.4% 81.4% 4 80.0% 80.0% 78.2% 71.8% 75.5% 71.4% 71.0% 71.5% 70.0% 70.0% 67.5% 62.0% 60.0% 56.8% 60.0% 50.0% 50.0% 4 43.0% 40.0% 40.0% Jun-14 Jun-15 Jun-16 1 Jun-17 2
Slide 46: Hospitality Properties: Sunway Clio Hotel
HOSPITALITY PROPERTIES SUNWAY CLIO HOTEL Historical occupancy rate Average occupancy rate (%) Average occupancy rate 100.0% 90.0% 90.0% 87.5% 80.0% 72.3% 71.5% 80.2% 69.9% 80.0% 77.0% 70.0% 71.9% 68.0% 68.9% 70.0% 60.0% 62.2% 58.7% 50.0% 60.0% 40.0% 50.0% Jun-16 Jun-17 Jun-18 Avg occupancy rate (%)
Slide 47: Hospitality Properties: Sunway Hotel Seberang Jaya
HOSPITALITY PROPERTIES SUNWAY HOTEL SEBERANG JAYA Historical occupancy rate Average occupancy rate Average occupancy rate (%) 90.0% 80.0% 78.1% 77.7% 80.0% 76.4% 69.6% 71.1% 75.3% 76.3% 67.8% 73.9% 74.3% 70.0% 65.5% 60.0% 70.2% 70.0% 50.0% 63.9% 40.0% Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 60.0% Avg occ
Slide 48: Hospitality Properties: Sunway Putra Hotel
HOSPITALITY PROPERTIES SUNWAY PUTRA HOTEL Historical occupancy rate Average occupancy rate Average occupancy rate (%) 80.0% 72.8% 90.0% 68.2% 85.0% 60.0% 50.2% 80.0% 78.6% 42.6% 40.0% 75.0% 28.8% 72.0% 71.7% 70.0% 69.0% 67.8% 67.0% 20.0% 65.7% 64.5% 65.0% 0.0% 60.0% Jun-14 Jun-15 Jun-16 Jun-17 Jun-1
Slide 49: Hospitality Properties: Sunway Hotel Georgetown
HOSPITALITY PROPERTIES SUNWAY HOTEL GEORGETOWN Historical occupancy rate Average occupancy rate Average occupancy rate (%) 100.0% 100.0% 91.8% 87.7% 95.0% 90.0% 91.1% 91.2% 91.1% 91.2% 90.0% 88.6% 88.6% 76.0% 86.4% 86.4% 80.0% 74.0% 85.0% 70.0% 70.0% 80.0% 60.0% 75.0% 70.0% 50.0% Jun-14 Jun-15 Jun-1
Slide 50: Office Properties: Menara Sunway
OFFICE PROPERTIES MENARA SUNWAY Historical occupancy rates Projected lease expiry schedule Average occupancy rate 100.0% 100.0% 98.8% 97.1% 80.0% 95.0% 93.8% 92.1% 60.0% 90.0% 89.3% 40.0% 85.0% 20.0% 80.0% 77.1% 11.0% 6.9% 75.0% 0.0% Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 FY2019 FY2020 FY2021 Expiring t
Slide 51: Menara Sunway (Cont'd)
OFFICE PROPERTIES MENARA SUNWAY (Cont’d) Tenant mix 1 Top 10 tenants 1 Total Top 10 Tenants 73.2% 1.8% 12.9% 2.0% Sunway Management Sdn Bhd 20.6% 2.0% 31.3% Sunway Integrated Properties Sdn 17.6% 2.6% Bhd (IH) Sunway Construction Group Berhad 7.4% 5.8% Merck Sdn Bhd 7.0% 10.3% Sunway Shared Service
Slide 52: Office Properties: Sunway Tower
OFFICE PROPERTIES SUNWAY TOWER Historical occupancy rates Projected lease expiry schedule Average occupancy rate 100.0% 18.0% 84.3% 15.0% 80.0% 66.9% 12.0% 60.0% 9.0% 40.0% 6.0% 19.6% 20.7% 21.0% 20.0% 3.0% 16.9% 3.8% 1.4% 0.0% 0.0% FY2019 FY2020 FY2021 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Expiring te
Slide 53: Sunway Tower (Cont'd)
OFFICE PROPERTIES SUNWAY TOWER (Cont’d) Tenant mix 1 Top 10 tenants 1 Total Top 10 Tenants 99.3% 9.2% WPP Business Services 19.6% Sdn Bhd 7.9% VPO Services Sdn Bhd 18.6% 50.4% ZJ Advisory S/B 15.3% 13.0% Royal Danish Embassy 13.0% Bexcel Shared Services 11.2% Malaysia Sdn Bhd R1 International Sdn Bh
Slide 54: Office Properties: Sunway Putra Tower
OFFICE PROPERTIES SUNWAY PUTRA TOWER Historical occupancy rates Projected lease expiry schedule Average occupancy rate 40.0% 100.0% 30.0% 80.0% 74.2% 60.0% 56.0% 52.8% 20.0% 40.0% 36.6% 26.4% 10.0% 20.0% 18.2% 20.8% 39.2% 0.0% 0.0% FY2019 FY2020 FY2021 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Expiring ten
Slide 55: Sunway Putra Tower (Cont'd)
OFFICE PROPERTIES SUNWAY PUTRA TOWER (Cont’d) Tenant mix 1 Top 10 tenants 1 1.5% 0.7% 1.7% 96.1% Government Agency Medical Communication Information Technology 1 Based on gross rental income for the month of June 2018. Driving values through sustainable growth 55
Slide 56: Office Properties: Wisma Sunway
OFFICE PROPERTIES WISMA SUNWAY Historical occupancy rates Projected lease expiry schedule Average occupancy rate 40.0% 100.0% 89.8% 90.1% 30.0% 90.0% 86.9% 85.1% 80.0% 78.3% 20.0% 70.0% 10.0% 60.0% 26.9% 18.6% 30.8% 0.0% 50.0% FY2019 FY2020 FY2021 Jun-14 Jun-15 1 Jun-16 Jun-17 Jun-18 Expiring tenanc
Slide 57: Wisma Sunway (Cont'd)
OFFICE PROPERTIES WISMA SUNWAY (Cont’d) Tenant mix 1 Top tenants 1 Total Top Tenants 99.8% 4.4% Jabatan Kesihatan Negeri Selangor 38.6% Jabatan Alam Sekitar 29.6% Lembaga Hasil Dalam Negeri 20.4% 95.6% Pejabat Tindakan Pelancongan 6.8% Negeri Selangor Government Agency Consultancy SM Centre (MYS) Sd
Slide 58: 5. Property Development Activities
5. Property Development Activities Driving values through sustainable growth 58
Slide 59: Property Development Activities: Expansion of Sunway Carnival Mall
Property Development Activities Expansion of Sunway Carnival Shopping Mall Estimated total property development RM353.0 million cost (including land) Cummulative cost incurred from RM27.2 million initiation to YTD4Q2018 Duration Approximately 3 years from 3Q2018 NLA (sq. ft.) Approximately 330,000 P
Slide 60: 6. Market Outlook
6. Market Outlook Driving values through sustainable growth 60
Slide 61: General Outlook
General Outlook o In the latest World Economic Outlook release, the International Monetary Fund (IMF) has maintained global growth projection at 3.9% for CY2018 and CY2019. The IMF, however, expects less synchronised growth trajectory in view that some major economies appear to have peaked. Global g
Slide 62: General Outlook (Cont'd)
General Outlook (Cont’d) o On 11 July 2018, the Monetary Policy Committee (MPC), has maintained the Overnight Policy Rate at 3.25%. Bank Negara Malaysia (BNM) opined that the degree of monetary accommodativeness is consistent with the intended policy stance and will continue to monitor and assess th
Slide 63: Retail Segment
Retail Segment o In June 2018, the Retail Group Malaysia (RGM) has revised upwards the CY2018 retail sales projection, from 4.7% to 5.3%. Despite the weaker than expected retail sales growth in 1Q CY2018 of 2.6%, RGM is optimistic that retail spending to pick up in the subsequent quarters boosted by
Slide 64: Retail Segment (Cont'd)
Retail Segment (Cont’d) o Sunway Carnival Shopping Mall recorded marginally higher average occupancy rate of 97.3% for YTD 4Q FY2018 compared to 97.0% for YTD 3Q FY2018. Based on the total NLA of 149,787 sq.ft. which was due for renewal in FY2018, a total of 131,360 sq.ft. equivalent to 87.7% of tot
Slide 65: Hotel Segment
Hotel Segment o The outlook for the hospitality sector is increasingly challenging on the back of intensifying competition arising from new and incoming hotels supply in the Klang Valley. In the Klang Valley, there are 9 new hotels coming on stream in CY2018 with an estimated rooms inventory of appr
Slide 66: Hotel Segment (Cont'd)
Hotel Segment (Cont’d) o Meanwhile, Sunway Clio Hotel’s average occupancy rate was largely maintained at 71.5% in FY2018 vis-à-vis 72.3% in FY2017. The average occupancy rate was higher at 68.9% in 4Q FY2018 compared to 62.2% in 4Q FY2017. The healthy demand was mainly attributable to guests’ prefer
Slide 67: Office Segment
Office Segment o The office space supply in the Greater Kuala Lumpur is estimated at 123 million sq.ft. as at 2Q CY2018 with a projected 5 million sq.ft. of additional new office space annually to bring the total office space to 145 million sq.ft. by CY2022. The short to medium term outlook remains
Slide 68: Office Segment (Cont'd)
Office Segment (Cont’d) o For the financial year ended 30 June 2018, Wisma Sunway experienced a transitional contraction in the average occupancy rate due to downsizing and non-renewal of tenancies. The average occupancy rate stood at 78.3% for YTD 4Q FY2018 compared to 79.0% for YTD 3Q FY2018. The
Slide 69: 7. Investor Relations
7. Investor Relations Driving values through sustainable growth 69
Slide 70: Unit Price Performance from IPO to YTD 4Q FY2018
Unit Price Performance from IPO to YTD 4Q FY2018 Unit Price Performance of Sunway REIT versus Benchmarks (8 July 2010 – 30 June 2018) GPR APREA Composite REIT Index - Malaysia 140.0% 132.7% 120.0% 100.0% 80.0% Sunway REIT 60.0% 96.7% 40.0% 20.0% FBM KLCI 0.0% 28.5% Dec 2010 Dec 2011 Dec 2012 Dec 201
Slide 71: Unit Price Performance for YTD 4Q FY2018
Unit Price Performance for YTD 4Q FY2018 Unit Price Performance of Sunway REIT versus Benchmarks (30 June 2017 – 30 June 2018) 8.0% 6.0% 4.0% 2.0% FBM KLCI 0.0% -4.1% -2.0% Sunway REIT -4.0% -0.6% -6.0% -8.0% -10.0% -12.0% -14.0% Bursa Malaysia REIT Index -16.0% -5.9% -18.0% Jun 2017 Sep 2017 Dec 20
Slide 72: Indices Representation
Indices Representation o FTSE Bursa Malaysia Mid 70 Index o Bursa Malaysia REIT Index o FTSE4Good Bursa Malaysia Index o FTSE EPRA NAREIT Global REIT Index o FTSE EPRA NAREIT Global Index o FTSE EPRA NAREIT Asia ex Japan Index o FTSE EPRA NAREIT Asia Pacific Index o FTSE EPRA NAREIT Emerging REIT In
Slide 73: Unitholders' Composition
Unitholders’ Composition (as at 30 June 2018) Foreign Retail 8.9% 7.8% Sunway Berhad Institutions 40.9% & Corporate 51.3% Domestic 91.1% June 2018 March 2018 Q-o-Q Change No of unitholders 11,942 11,467 475 (+4.1%) Retail unitholders 7.8% 8.3% -0.5% Foreign unitholders 8.9% 8.9% Unchanged Sunway Ber
Slide 74: Analysts Recommendation
Analysts Recommendation (as at 30 June 2018) 10.2 Target Price as at 30 June 2018 (RM) 7.3 6.8 Upside / Downside to unit price as at 30 June 2018 (%) 5.6 4.5 4.5 1.95 1.90 1.89 1.85 1.85 1.87 1.71 1.79 1.1 1.77 1.75 1.70 1.70 1.55 1.47 0.0 (1.1) (3.4) (4.0) (4.0) (12.4) (16.9) AmInvestment Bank UOB
Slide 75: Comparative Yields for Various Assets
Comparative Yields for Various Assets 8.0% 6.90%5 7.0% 6.44%2 6.0% 5.41%1 5.0% 4.20%3 4.0% 3.33%4 3.25%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 is computed based actual FY2018 DPU of 9.57 sen and unit price as at 30 June 2018 (Sourc
Slide 76: Thank You
THANK YOU Driving values through sustainable growth
Sunway Real Estate Investment Trust — Q4 2018 Earnings Presentation on 6ix