Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — 5Q2021 Earnings Presentation
58 slides from Sunway Real Estate Investment Trust's earnings presentation, Nov 9, 2021
Slide 1: Financial Results Fifth Quarter Ended 30 September 2021
FINANCIAL RESULTS Fifth Quarter Ended 30 September 2021 (FPE 31 December 2021) Date: 09 November 2021
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 (5Q2021) 2. Financial Results (5Q2021) 3. Portfolio Performance (5Q2021) 4. Property Development Activities 5. Market Outlook 6. Investor Relations Appendix - Property Performance (5Q2021) Empowering Businesses Curating Experiences Enriching Lives 3
Slide 4: Financial Highlights (5Q2021)
FINANCIAL HIGHLIGHTS (5Q2021) Empowering Businesses Curating Experiences Enriching Lives 4
Slide 5: Financial Highlights – 5Q2021
Financial Highlights – 5Q2021 July'21 to Sept'21 July'20 to Sept'20 Highlights ("5Q2021") ("1Q2021")^ No. of Properties 18 17 Property Value (RM'billion) 8.757 8.045 Units in Circulation 3,424,807,700 2,945,078,000 Unit Price as at 30 Sept 2021/2020 (RM) 1.40 1.56 Market Capitalisation (RM'billion)
Slide 6: Financial Highlights – 5Q2021 (Cont’d)
Financial Highlights – 5Q2021 (Cont’d) Reported in RM’000 Gross Revenue for 5Q2021 decreased by 0.5% or RM0.6 million compared to 1Q2021 mainly due lower revenue from retail segment impacted by the 0.5% enforcement of EMCO and NRP Phase 1 as compared to the effect of RMCO in 1Q2021, partially mitiga
Slide 7: Financial Highlights – YTD 5Q2021
Financial Highlights – YTD 5Q2021 The current cumulative financial period is a period of 15 months, made up from 1 July 2020 to 30 September 2021. As such, there are no comparative figures for the preceding year corresponding period. Reported in RM’000 Gross Revenue for YTD 5Q2021 RM517.8 million ma
Slide 8: Financial Results (5Q2021)
FINANCIAL RESULTS (5Q2021) Empowering Businesses Curating Experiences Enriching Lives 8
Slide 9: Statement of Comprehensive Income – Consolidated
Statement of Comprehensive Income – Consolidated The current cumulative financial period is a period of 15 months, made up from 1 July 2020 to 30 September 2021. As such, there are no comparative figures for the preceding year corresponding period. 5Q2021 1Q2021 Change YTD 5Q2021 RM'000 RM'000 % RM'
Slide 10: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 30.09.2021 30.06.2020 30.09.2021 30.06.2020 (Unaudited) (Restated)^ (Unaudited) (Restated)^ RM'000 RM'000 RM'000 RM'000 ASSETS Non-current assets Units in circulation ('000 units) 3,424,808 2,945,078 Investment properties 8,740,444 1 8,020,233 Investmen
Slide 11: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 1 Investment properties increased by RM720.2 million pursuant to the completion of the acquisition of The Pinnacle Sunway on 20 November 2020 as well as on-going capital expenditure mainly for the expansion of Sunway Carnival Shopping Mall and Sunway Re
Slide 12: Statement of Cash Flows – Consolidated
Statement of Cash Flows – Consolidated Cumulative Quarter ended 30.06.2020 1 Net cash from operating activities for YTD 30.09.2021 (Restated) * 5Q2021 of RM334.3 million mainly comprise of RM'000 RM'000 cash receipt from lessees and tenants as well as OPERATING ACTIVITIES Cash receipts from customer
Slide 13: Financing Profile as at 30 September 2021
Financing Profile as at 30 September 2021 Facility Limit Amount RM'million RM'million Revolving Loan (USD) USD95.5million 397.7 1 Commercial Papers (CP) / 3,000.0 1,600.0 2 Revolving Loan (RL) Unrated MTNs 10,000.0 1,400.0 3 Total Gross Borrowings 3,397.7 Unamortised transaction costs (0.3) Total Bo
Slide 14: Portfolio Performance (5Q2021)
PORTFOLIO PERFORMANCE (5Q2021) Empowering Businesses Curating Experiences Enriching Lives 14
Slide 15: Revenue & NPI growth in 5Q2021 – Realised
Revenue & NPI growth in 5Q2021 – Realised Reported in RM’million Retail Hotel Office 122% 81% Revenue 17% 5Q2021 64.9 6.2 18.9 1Q2021 77.7 2.8 10.5 NPI 17% 245% 105% 36.6 4.2 12.8 5Q2021 1Q2021 44.2 1.2 6.3 The retail segment recorded gross The hotel segment recorded The office segment recorded gros
Slide 16: Revenue & NPI growth in 5Q2021 – Realised (Cont’d)
Revenue & NPI growth in 5Q2021 – Realised (Cont’d) Reported in RM’million Services 3% Industrial & Others Overall 1% Revenue 5Q2021 15.3 1.5 106.9 1Q2021 14.9 1.5 107.4 3% NPI 4% 15.3 1.5 70.5 5Q2021 1Q2021 14.9 1.5 68.1 The services segment Sunway REIT Industrial - Shah Revenue of the portfolio Not
Slide 17: Revenue & NPI growth in YTD 5Q2021 – Realised
Revenue & NPI growth in YTD 5Q2021 – Realised Reported in RM’million Retail Hotel Office Revenue 311.6 40.0 82.6 YTD 5Q2021 NPI 164.1 31.9 54.4 YTD 5Q2021 The retail segment recorded YTD The hotel segment recorded YTD The office segment recorded YTD Notes 5Q2021 gross revenue of 5Q2021 gross revenue
Slide 18: Revenue & NPI growth in YTD 5Q2021 – Realised (Cont’d)
Revenue & NPI growth in YTD 5Q2021 – Realised (Cont’d) Reported in RM’million Services Industrial & Others Overall Revenue 75.9 7.7 517.8 YTD 5Q2021 1 NPI 75.9 7.7 334.0 YTD 5Q2021 The services segment Sunway REIT Industrial - Shah YTD 5Q2021 revenue of the Notes contributed YTD 5Q2021 revenue Alam
Slide 19: 5Q2021 and YTD 5Q2021 Revenue Contribution (by Property)
5Q2021 and YTD 5Q2021 Revenue Contribution (by Property) YTD 5Q 5Q 2021 1Q 2021 Variance Change 2021 By Property RM'mil RM'mil RM'mil % RM'mil Sunway Pyramid Mall 52.4 60.7 (8.2) -13.6% 230.6 Sunway Carnival Mall 4.8 7.8 (3.0) -38.3% 36.4 SunCity Ipoh Hypermarket 0.8 0.6 0.1 19.9% 3.7 Sunway Putra M
Slide 20: 5Q2021 NPI and NPI Margin Contribution (by Property)
5Q2021 NPI and NPI Margin Contribution (by Property) NPI NPI Margin 5Q 2021 1Q 2021 Variance Change 5Q 2021 1Q 2021 Variance By Property RM'mil RM'mil RM'mil % % % % Sunway Pyramid Mall 33.0 36.7 (3.7) -10.2% 62.9% 60.5% 2.4% Sunway Carnival Mall 1.5 3.8 (2.2) -59.3% 31.7% 48.1% -16.4% SunCity Ipoh
Slide 21: YTD 5Q2021 NPI and NPI Margin Contribution (by Property)
YTD 5Q2021 NPI and NPI Margin Contribution (by Property) NPI NPI Margin YTD 5Q 2021 YTD 5Q 2021 By Property RM'mil % Sunway Pyramid Mall 131.1 56.8% Sunway Carnival Mall 17.4 47.7% SunCity Ipoh Hypermarket 3.6 96.3% Sunway Putra Mall 12.1 29.6% Sunway Resort Hotel (1.7) >-100% Sunway Pyramid Hotel (
Slide 22: Key Performance Indicators – YTD 5Q2021
Key Performance Indicators – YTD 5Q2021 Industrial Retail Hotel Office Services & Others 2 YTD 5Q2021 5Q2021 5Q2021 5Q2021 5Q2021 Average Occupancy 96% 24% 1 84% 100% 100% Rates NPI Margin 53% 80% 66% 100% 100% Notes: 1. Excludes Sunway Resort Hotel which was closed for phased refurbishment commenci
Slide 23: Property Development Activities (5Q2021)
PROPERTY DEVELOPMENT ACTIVITIES (5Q2021) Empowering Businesses Curating Experiences Enriching Lives 23
Slide 24: Property Development Activities
Property Development Activities Expansion of Sunway Carnival Shopping Mall Sunway Resort Hotel Refurbishment Estimated total property development cost RM436.0 million # RM261.0 million (including land) Cummulative cost incurred from initiation RM231.9 million RM103.7 million to YTD 5Q2021 Expected c
Slide 25: General Outlook
General Outlook o International Monetary Fund (IMF) projected the global economy to grow 5.9% (July 2021 forecast: 6.0%) in CY2021. The downward revision was primarily due to supply disruptions in advanced economies and worsening pandemic dynamics in developing countries. This was partially offset b
Slide 26: General Outlook (cont’d)
General Outlook (cont’d) o In the Federal Budget 2022, the government maintained Malaysia’s gross domestic product (GDP) projection of between 3.0% and 4.0% for CY2021, supported by gradual reopening of economic sectors and transition to the National Recovery Plan (NRP). o Malaysia’s economic growth
Slide 27: General Outlook (cont’d)
General Outlook (cont’d) o Headline Consumer Price Index (CPI) increased 2.2% in September 2021 on the back of low base last year. Major contributor to the higher inflation was attributable to Transport (+11.0%) due to the implementation of RON95 petrol ceiling price of RM2.05 per litre in March 202
Slide 28: General Outlook (cont’d)
General Outlook (cont’d) o The Manager observes encouraging business recovery signs pursuant to reopening of the economy as Malaysia moved into Phase 3 and 4 of the National Recovery Plan (NRP). This is further supported by government’s efforts to stimulate economic growth through 12MP and Federal B
Slide 29: Retail Segment
Retail Segment o Retail Group Malaysia (RGM) revised downwards its CY2021 retail sales growth forecast to 0.8% (June forecast: 4.0%), primarily due to business disruptions arising from the various phases of Movement Control Orders (MCO) imposed this year. RGM revised its forecast after taking into c
Slide 30: Retail Segment
Retail Segment o The adult population in Malaysia has achieved vaccination rate of 97.5% where individuals have received at least 1 dose of the vaccine as at 25 October 2021. As the nation moves towards its full vaccination target, individuals are gradually regaining confidence to be in public space
Slide 31: Hotel Segment
Hotel Segment o Malaysian Association of Hotels (MAH) estimated the average hotel occupancy to close below 30% in CY2021 as the industry is faced with strict movement restrictions for most part of CY2021. The fallout of the COVID-19 pandemic has led to closure of hotels on temporary or permanent bas
Slide 32: Hotel Segment
Hotel Segment o Under the PEMULIH stimulus package, tourism-related businesses will continue to benefit from 10% electricity tariff discount to affected economic sectors and waiver of tourism tax and services tax for hotel operators until 31 December 2021. o In the Federal Budget 2022, several key i
Slide 33: Office Segment
Office Segment o Despite reopening of all economic sectors, businesses continued to defer their expansion plans due to lack of business visibility in the short-term and challenging business operating environment. In addition, soft foreign direct investment (FDI) will also hinder expansion plans of m
Slide 34: Industrial & Others Segment
Industrial & Others Segment o The Department of Statistics Malaysia (DOSM) reported that Malaysia’s Industrial Production Index (IPI) has dipped 0.7% y-o-y in August 2021, mainly due to the decline in mining (-4.2%) and electricity index (-4.8%). However, the manufacturing index recorded an expansio
Slide 35: Unit Price Performance from IPO to 5Q FP2021
Unit Price Performance from IPO to 5Q FP2021* Unit Price Performance of Sunway REIT versus Benchmarks (8 July 2010 – 30 September 2021) 120.0% 100.0% 80.0% Sunway REIT 60.0% +55.6% FBM Top 100 Index 40.0% +22.7% 20.0% FBM KLCI 0.0% +16.9% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 P
Slide 36: Unit Price YTD Performance for FP2021
Unit Price YTD Performance for FP2021* Unit Price Performance of Sunway REIT versus Benchmarks (1 July 2020 – 30 September 2021) 15.0% FBM KLCI 10.0% +2.5% 5.0% 0.0% Bursa Malaysia REIT Index -5.0% -8.4% -10.0% -15.0% Sunway REIT -20.0% -13.6% Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Pe
Slide 37: Indices Representation
Indices Representation o FTSE Bursa Malaysia Mid 70 Index o FTSE Bursa Malaysia Emas o FTSE Bursa Malaysia Top 100 Index Index o Bursa Malaysia REIT Index o FTSE ASEAN All-Share Index o FTSE ASEAN Malaysia Index o FTSE ASEAN All-Share ex Developed Index o FTSE4Good Bursa Malaysia Index o GPR APREA C
Slide 38: Unitholders’ Composition (as at 30 September 2021)
Unitholders’ Composition (as at 30 September 2021) Foreign Retail 7.1% 6.2% Institutions & Sunway Berhad Corporates 40.9% 52.9% Domestic 92.9% September 2021 June 2021 Q-o-Q Change No of unitholders 29,049 27,392 +1,657 (6.0%) Retail unitholders 6.2% 5.9% +0.3% Foreign unitholders 7.1% 7.2% -0.1% Su
Slide 39: Analysts Recommendation (as at September 2021)
Analysts Recommendation (as at 30 September 2021) 18.6 18.6 Average Consensus 2 Target Price = RM1.47 14.3 10.7 10.7 1 7.1 5.7 3.6 3.6 1.66 1.60 1.55 1.66 1.55 1.48 1.45 1.45 1.40 1.38 1.38 1.36 1.35 1.50 1.37 1.30 0.0 0 (1.4) (1.4) (2.1) (2.9) (3.6) Target Price as at 30 Sep 2021 (RM) Upside / Down
Slide 40: Comparative Yields for Various Assets
Comparative Yields for Various Assets 5.32%2 5.20%5 3.21%1 3.24%3 1.70%4 1.75%6 Sunway REIT M-REITs 10-Year MGS Fixed Deposit EPF Yield OPR Note: 1 Distribution yield is computed based on annualised FY2021 DPU of 4.18 sen (annualised based on 18-month consensus DPU of 6.27 sen due to change in Finan
Slide 41: Awards and Recognition (FP 2021)
Awards and Recognition (FP 2021) GOLD WINNER – NACRA EXCELLENCE AWARDS ASEAN CG INDUSTRY EXCELLENCE AWARDS (2020) COMPANIES WITH RM2B TO RM10B IN MKT CAP REAL ESTATE INVESTMENT TRUST GOLD WINNER (2021) – ANNUAL REPORT (PDF) GOLD WINNER (2021) REAL ESTATE INVESTMENT TRUST BEST IR PROFESSIONAL (2020)
Slide 42: Appendix: Property Performance (5Q2021)
APPENDIX: PROPERTY PERFORMANCE (5Q2021) Empowering Businesses Curating Experiences Enriching Lives 42
Slide 43: Retail Properties – Sunway Pyramid Shopping Mall
RETAIL PROPERTIES – Sunway Pyramid Shopping Mall Average occupancy rate Projected lease expiry schedule 70.0% 100% 99% 98% 98% 98% 60.9% 97% 60.0% 95% 50.0% 90% 40.0% 30.0% 85% 20.0% 80% 11.8% 11.6% 10.0% 8.5% 3.9% 75% Jun-17 Jun-18 Jun-19 Jun-20 YTD 5Q 0.0% FP2021 FY2022 FY2023 Beyond Monthly 2021
Slide 44: Retail Properties – Sunway Carnival Shopping Mall
RETAIL PROPERTIES – Sunway Carnival Shopping Mall Average occupancy rate Projected lease expiry schedule 100% 98% 97% 97% 70.0% 96% 63.4% 95% 95% 60.0% 90% 50.0% 85% 40.0% 34.2% 30.0% 80% 20.0% 75% 10.0% 70% 0.2% 0.1% Jun-17 Jun-18 Jun-19 Jun-20 YTD 5Q 0.0% 2021 FP2021 FY2022 FY2023 Monthly tenancy
Slide 45: Retail Properties – SunCity Ipoh Hypermarket
RETAIL PROPERTIES – SunCity Ipoh Hypermarket Average occupancy rate 100% 100% 100% 100% 100% 90% 86% 80% 70% 60% 50% Jun-17 Jun-18 Jun-19 Jun-20 YTD 5Q 2021 SunCity Ipoh Hypermarket replaced its single tenant which ended on 30 April 2020 with new single tenant TF Value-Mart which commenced on 22 Jun
Slide 46: Retail Properties – Sunway Putra Mall
RETAIL PROPERTIES – Sunway Putra Mall Average occupancy rate Projected lease expiry schedule 30.0% 100% 93% 93% 91% 90% 86% 23.9% 23.9% 80% 21.9% 20.0% 18.3% 60% 40% 10.0% 20% 3.1% 0% 0.0% Jun-17 Jun-18 Jun-19 Jun-20 YTD 5Q FP2021 FY2022 FY2023 Beyond Monthly 2021 FY2023 tenancy YTD 5Q2021 average o
Slide 47: Retail Properties – Sunway Clio Retail
RETAIL PROPERTIES – Sunway Clio Retail Average occupancy rate Projected lease expiry schedule 50.0% 46.1% 100% 91% 90% 40.0% 37.8% 80% 72% 66% 30.0% 60% 38% 40% 20.0% 20% 10.0% 0% 2.0% Jun-17 Jun-18 Jun-19 Jun-20 YTD 5Q 0.0% 2021 FP2021 FY2022 Beyond FY2023 Note : The acquisition was completed on 9
Slide 48: Hospitality Properties – Sunway Resort Hotel
HOSPITALITY PROPERTIES – Sunway Resort Hotel Average occupancy rate 100% 82% 80% 74% 65% 60% 49% 40% 20% 0% Jun-17 Jun-18 Jun-19 Jun-20 YTD 5Q 2021 Note 1: The hotel properties are under 10-year master leases. The master lease of Sunway Resort Hotel was renewed from July 2020 to July 2030. Note 2: S
Slide 49: Hospitality Properties – Sunway Pyramid Hotel
HOSPITALITY PROPERTIES – Sunway Pyramid Hotel Average occupancy rate 100% 80% 71% 68% 57% 59% 60% 40% 24% 20% 0% Jun-17 Jun-18 Jun-19 Jun-20 YTD 5Q 2021 Note: The hotel properties are under 10-year master leases. The master lease of Sunway Pyramid Hotel was renewed from July 2020 to July 2030. YTD 5
Slide 50: Hospitality Properties – Sunway Clio Hotel
HOSPITALITY PROPERTIES – Sunway Clio Hotel Average occupancy rate 100% 80% 72% 74% 71% 58% 60% 40% 40% 20% 0% Jun-17 Jun-18 Jun-19 Jun-20 YTD 5Q 2021 Note: The hotel properties are under 10-year master leases. The master lease of Sunway Clio Hotel is expiring in February 2028. YTD 5Q2021 average occ
Slide 51: Hospitality Properties – Sunway Hotel Seberang Jaya
HOSPITALITY PROPERTIES – Sunway Hotel Seberang Jaya Average occupancy rate 100% 80% 76% 75% 71% 60% 51% 39% 40% 20% 0% Jun-17 Jun-18 Jun-19 Jun-20 YTD 5Q 2021 Note: The hotel properties are under 10-year master leases. The master lease of Sunway Hotel Seberang Jaya was renewed from July 2020 to July
Slide 52: Hospitality Properties – Sunway Putra Hotel
HOSPITALITY PROPERTIES – Sunway Putra Hotel Average occupancy rate 80% 73% 68% 62% 60% 48% 40% 20% 15% 0% Jun-17 Jun-18 Jun-19 Jun-20 YTD 5Q 2021 Note: The hotel properties are under 10-year master leases. The master lease of Sunway Putra Hotel was renewed from September 2021 to September 2031. YTD
Slide 53: Hospitality Properties – Sunway Hotel Georgetown
HOSPITALITY PROPERTIES – Sunway Hotel Georgetown Average occupancy rate 100% 92% 88% 85% 80% 60% 53% 40% 20% 12% 0% Jun-17 Jun-18 Jun-19 Jun-20 YTD 5Q 2021 Note: The hotel properties are under 10-year master leases. The master lease of Sunway Hotel Georgetown is expiring in Jan 2025 YTD 5Q2021 avera
Slide 54: Office Properties – Menara Sunway
OFFICE PROPERTIES – Menara Sunway Average occupancy rate Projected lease expiry schedule 100% 50.0% 47.8% 97% 97% 95% 95% 94% 40.0% 92% 90% 30.0% 21.7% 85% 20.0% 15.9% 11.2% 80% 10.0% 0.0% 75% Jun-17 Jun-18 Jun-19 Jun-20 YTD 5Q FP2021 FY2022 FY2023 Beyond 2021 FY2023 YTD 5Q2021 average occupancy rat
Slide 55: Office Properties – Sunway Tower
OFFICE PROPERTIES – Sunway Tower Average occupancy rate Projected lease expiry schedule 18.0% 40% 16.0% 33% 33% 15.0% 14.1% 30% 12.0% 21% 21% 20% 20% 9.0% 10% 6.0% 3.0% 0% 1.1% 1.1% Jun-17 Jun-18 Jun-19 Jun-20 YTD 5Q 0.0% 2021 FP2021 FY2022 FY2023 Beyond FY2023 YTD 5Q2021 average occupancy rate at S
Slide 56: Office Properties – Sunway Putra Tower
OFFICE PROPERTIES – Sunway Putra Tower Average occupancy rate Projected lease expiry schedule 100% 40.0% 86% 83% 33.9% 82% 80% 30.0% 25.1% 56% 24.0% 60% 20.0% 40% 37% 20% 10.0% 0% Jun-17 Jun-18 Jun-19 Jun-20 YTD 5Q 0.0% FP2021 FY2022 FY2023 2021 YTD 5Q2021 average occupancy rate at Sunway Putra Towe
Slide 57: Office Properties – Wisma Sunway
OFFICE PROPERTIES – Wisma Sunway Average occupancy rate Projected lease expiry schedule 100% 100% 100% 94% 78.4% 80.0% 87% 78% 70.0% 80% 60.0% 60% 50.0% 40.0% 40% 30.0% 18.6% 20% 20.0% 10.0% 3.0% 0% Jun-17 Jun-18 Jun-19 Jun-20 YTD 5Q 0.0% 2021 FP2021 FY2022 FY2023 YTD 5Q2021 average occupancy rate a
Slide 58: Office Properties – The Pinnacle Sunway
OFFICE PROPERTIES – The Pinnacle Sunway Average occupancy rate Projected lease expiry schedule 97% 97% 99% 100% 100% 97% 50.0% 80% 38.9% 40.0% 60% 30.0% 23.8% 40% 20.0% 17.1% 14.9% 20% 10.0% 0% Jun-17 Jun-18 Jun-19 Jun-20 YTD 5Q 0.0% 2021 FP2021 FY2022 FY2023 Beyond FY2023 Note: The acquisition was
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