Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — Q4 FY2017 Earnings Presentation
70 slides from Sunway Real Estate Investment Trust's earnings presentation, Aug 10, 2017
Slide 1: Sunway REIT Financial Results 4th Quarter Ended 30 June 2017
Sunway REIT Financial Results 4th Quarter Ended 30 June 2017 (FYE 30 June 2017) Announcement Date: 10 August 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. 4Q 2017 Financial Results 3. 4Q 2017 Portfolio Performance 4. 4Q 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: Dividend Distribution Details
Distribution Details Dividend Distribution Details Distribution Period 1 April 2017 - 30 June 2017 Distribution Per Unit (DPU) (sen) 2.27 1 Notice of Entitlement 10 August 2017 Ex-Dividend Date 24 August 2017 Book Closure Date 28 August 2017 Payment Date 12 September 2017 1 Proposed income distribut
Slide 6: Financial Highlights
Financial Highlights Highlights 4Q 2017 4Q 2016 No. of Properties 14 14 Property Value (RM'billion) 6.689 6.433 No. of Units in Circulation 2,945,078,000 2,943,918,400 Unit Price as at 30 June (RM) 1.78 1.66 Market Capitalisation (RM'billion) 5.242 4.887 Net Asset Value (NAV) Per Unit (RM) 1.4074 1.
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 7.2% 1 9.3% 2 522.9507.0 400.0 388.8 373.9 500.0 400.0 300.0 300.0 200.0 200.0 132.5 100.2 98.5 128.9 121.2 126.9 131.9 134.6 130.3 123.6 100.0 96.0 89.9 94.1 97.1 96.7 90.2 100.0 - - 1Q 2Q 3Q 4Q YTD 1Q 2
Slide 8: Financial Highlights (Cont'd)
Financial Highlights (Cont’d) Profit Before Tax (Realised) (RM'm) DPU (sen) 400.0 12.00 1 2 10.2% 7.1% 10.00 9.19 9.18 300.0 270.6262.5 8.00 200.0 6.00 4.00 100.0 66.8 60.6 2.27 2.28 2.57 2.37 2.37 2.27 2.12 66.8 67.1 73.6 69.9 67.7 2.12 60.6 2.00 - - 1Q 2Q 3Q 4Q YTD 1Q 2Q 3Q 4Q YTD 2017 2016 2017 2
Slide 9: 2. 4Q 2017 Financial Results
2. 4Q 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 4Q 2017 4Q 2016 Change YTD 2017 YTD 2016 Change RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 % RM'000 RM'000 % Gross revenue 128,879 121,216 126,880 131,867 134,573 130,345 132,536 123,585 7.2
Slide 11: Statement of Comprehensive Income – Consolidated (Cont'd)
Statement of Comprehensive Income-Consolidated (Cont’d) Explanation: 1 Included in other income for 4Q2016 was a reclassification of fair value gain on derivative financial instruments which arose in previous quarters in FY2016, amounting to RM1.9 million, to other expenses. The reclassification was
Slide 12: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 30.06.17 31.03.17 31.12.16 30.09.16 30.06.16 RM'000 RM'000 RM'000 RM'000 RM'000 ASSETS Non-current assets Investment properties 6,689,200 6,514,392 6,502,892 6,458,982 6,433,000 Plant and equipment 9,063 9,168 9,046 9,088 8,698 Derivatives - - 26,387 -
Slide 13: Debt Profile
Debt Profile Facility Limit RM'milion Loan Maturity Profile (RM'm) RM'million 1 1,000.0 Term Loan 422.0 429.4 Commercial Papers (CP) / 800.0 264.4 2 Revolving Loan (RL) 1,100.0 914.4 600.0 Unrated MTNs 1,000.0 1,000.0 400.0 Total Gross Borrowings 2,343.8 650.0 3 Discount on CP - 200.0 400.0 429.4 40
Slide 14: 3. 4Q 2017 Portfolio Performance
3. 4Q 2017 Portfolio Performance Driving values through sustainable growth 14
Slide 15: 4Q 2017 Revenue Contribution by Segment
4Q 2017 Revenue Contribution 4Q 2017 (RM'million) 132.5 4Q 2016 (RM'million) 123.6 By segment (RM'm) 140.0 4.3% 120.0 100.8 96.6 100.0 80.0 60.0 28.4% 6.7% 3.7% 40.0 18.1 14.1 20.0 8.0 7.5 5.6 5.4 - Retail Hotel Office Others 4Q 2017 4Q 2016 Note: Calculation of % of increase/decrease above varies m
Slide 16: 4Q 2017 Revenue Contribution by Property
4Q 2017 Revenue Contribution (Cont’d) 4Q 2017 (RM'million) 132.5 4Q 2016 (RM'million) 123.6 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: 4Q 2017 Revenue Contribution Explanation
4Q 2017 Revenue Contribution (Cont’d) Explanation: 1 Sunway Pyramid, Sunway Carnival and Sunway Putra Mall – Higher revenue mainly due to higher average gross rent per sq. ft.. In addition, Sunway Carnival and Sunway Putra Mall had registered higher average occupancy rate as well. 2 Sunway Resort Ho
Slide 18: 4Q 2017 Revenue Contribution (Cont'd)
4Q 2017 Revenue Contribution (Cont’d) 4Q 2017 By Property % By segment Others Sunway Pyrami d 56.8% Office 4.2% 6.0% Sunway Carni val 8.9% SCI Hypermarket 0.8% Hotel Sunway Putra Mal l 9.6% 13.7% Total Retai l 76.1% Retail Sunway Res ort Hotel & Spa 8.2% 76.1% Sunway Pyrami d Hotel * 2.1% Sunway Hot
Slide 19: YTD 4Q 2017 Revenue Contribution by Segment
YTD 4Q 2017 Revenue Contribution YTD 4Q 2017 (RM'million) 522.9 YTD 4Q 2016 (RM'million) 507.0 By segment (RM'm) 500.0 5.8% 450.0 405.0 382.8 400.0 350.0 300.0 250.0 11.4% 3.2% 200.0 4.0% 3.8% 150.0 100.0 64.5 72.8 31.5 30.3 21.9 21.1 50.0 - Retail Hotel Office Others YTD 4Q 2017 YTD 4Q 2016 Note: C
Slide 20: YTD 4Q 2017 Revenue Contribution by Property
YTD 4Q 2017 Revenue Contribution (Cont’d) YTD 4Q 2017 (RM'million) 522.9 YTD 4Q 2016 (RM'million) 507.0 Retail Hotel Office Others 360.0 320.0 By property (RM’m) 280.0 240.0 200.0 160.0 120.0 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 te
Slide 21: YTD 4Q 2017 Revenue Contribution Explanation
YTD 4Q 2017 Revenue Contribution (Cont’d) Explanation: 1 Sunway Pyramid, Sunway Putra Mall, Sunway Putra Tower and Sunway Medical Centre – Explanation similar to page 17. 2 Sunway Carnival – In addition to explanation on page 17, the higher revenue for YTD 4Q2017 was also contributed by the completi
Slide 22: YTD 4Q 2017 Revenue Contribution (Cont'd)
YTD 4Q 2017 Revenue Contribution (Cont’d) YTD 4Q 2017 By Property % By segment Others Sunway Pyrami d 57.9% Office 4.2% 6.0% Sunway Carni val 8.8% Hotel SCI Hypermarket 0.9% 12.3% Sunway Putra Mal l 9.7% Total Retai l 77.3% Retail Sunway Res ort Hotel & Spa 7.7% 77.5% Sunway Pyrami d Hotel * 0.8% Su
Slide 23: 4Q 2017 NPI Contribution by Segment
4Q 2017 NPI Contribution NPI Margin 4Q 2017 (RM'million) 98.5 74.3% 4Q 2016 (RM'million) 90.2 73.0% By Segment (RM'm) 100.0 5.6% 80.0 71.7 67.9 7.2% 30.8% 7.7% 3.7% 60.0 40.0 17.0 20.0 13.0 4.2 3.9 5.6 5.4 - Retail Hotel Office Others 4Q 2017 4Q 2016 Note: Calculation of % of increase/decrease above
Slide 24: 4Q 2017 NPI Contribution by Property
4Q 2017 NPI Contribution (Cont’d) NPI Margin 4Q 2017 (RM'million) 98.5 74.3% 4Q 2016 (RM'million) 90.2 73.0% 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 Sunway Sunway Sunway Sunway Sunway Sunway SCI Sunway Hotel Su
Slide 25: 4Q 2017 NPI Contribution Explanation
4Q 2017 NPI Contribution (Cont’d) Explanation: 1 Sunway Pyramid – Higher NPI due to higher revenue. 2 Sunway Putra Mall – Higher NPI of RM1.5 million mainly due to higher revenue of RM1.7 million, partially offset by higher assessment. The assessment expense was lower for Sunway Putra Mall in the pr
Slide 26: 4Q 2017 NPI Contribution (Cont'd)
4Q 2017 NPI Contribution (Cont’d) 4Q 2017 By Property % By segment Others Sunway Pyrami d 58.4% Office 5.7% 4.3% Sunway Carni val 7.3% SCI Hypermarket 1.1% Hotel 17.2% Sunway Putra Mal l 6.0% Total Retai l 72.8% Retail Sunway Res ort Hotel & Spa 10.5% 72.8% Sunway Pyrami d Hotel * 2.6% Sunway Hotel
Slide 27: YTD 4Q 2017 NPI Contribution by Segment
YTD 4Q 2017 NPI Contribution NPI Margin YTD 4Q 2017 (RM'million) 388.9 74.4% YTD 4Q 2016 (RM'million) 373.9 73.7% By Segment (RM'm) 360.0 7.6% 320.0 289.9 269.5 280.0 240.0 11.9% 200.0 13.8% 3.8% 160.0 120.0 60.6 68.8 80.0 40.0 16.5 14.5 21.9 21.1 - Retail Hotel Office Others YTD 4Q 2017 YTD 4Q 2016
Slide 28: YTD 4Q 2017 NPI Contribution by Property
YTD 4Q 2017 NPI Contribution (Cont’d) NPI Margin YTD 4Q 2017 (RM'million) 388.9 74.4% YTD 4Q 2016 (RM'million) 373.9 73.7% Retail Hotel Office Others 260.0 240.0 By property (RM’m) 220.0 200.0 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 - (20.0) Sunway Sunway Sunway Sunway Sunway Sunway Sunway
Slide 29: YTD 4Q 2017 NPI Contribution Explanation
YTD 4Q 2017 NPI Contribution (Cont’d) Explanation: 1 Sunway Pyramid – NPI for YTD 4Q2017 was higher by RM9.0 million due to higher YTD 4Q2017 revenue by RM8.5 million and lower advertising and promotion expenses. 2 Sunway Carnival – NPI for YTD 4Q2017 was higher by RM1.0 million due to higher YTD 4Q
Slide 30: YTD 4Q 2017 NPI Contribution (Cont'd)
YTD 4Q 2017 NPI Contribution (Cont’d) YTD 4Q 2017 By Property % By segment Others Sunway Pyrami d 59.0% Office 5.6% 4.3% Sunway Carni val 7.5% Hotel SCI Hypermarket 1.2% 15.6% Sunway Putra Mal l 6.8% Total Retai l 74.5% Retail Sunway Res ort Hotel & Spa 9.9% 74.5% Sunway Pyrami d Hotel * 1.0% Sunway
Slide 31: Resilient Income Stream
Resilient Income Stream Well spread-out lease expiry profile and diverse tenant base WALE 1 as at 30 June 2017 – 1.81 years Top 10 tenants contribute approximately 12.1% of total revenue Projected tenancy expiry of portfolio 2 Top 10 tenants 4 Total Top 10 Tenants 12.1% 70.0% 63.0% Parkson Corporati
Slide 32: 4. 4Q 2017 Property Performance
4. 4Q 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% 98.3% 98.1% 98.3% 98.0% 97.8% 30.0% 95.0% 90.0% 20.0% 85.0% 10.0% 80.0% 34.5% 15.4% 45.1% 3.7% 0.0% FY2018 FY2019 FY2020 Monthly 75.0% tenancy Jun-13 Ju
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 13.0% Aeon Co. (M) Bhd 2.3% (Aeon) 23.3% Parkson Corporation Sdn Bhd 1.7% 34.6% (Parkson, Origin) TGV Cinemas Sdn Bhd 1.5% (TGV Cinemas) 6.8% Sunway Resort Hotel Sdn Bhd 1.4% (Sunway Pyramid Co
Slide 35: Retail Properties: Sunway Carnival Shopping Mall
RETAIL PROPERTIES SUNWAY CARNIVAL SHOPPING MALL Historical occupancy rates Projected lease expiry schedule Average occupancy rate 50.0% 40.0% 100.0% 97.4% 97.3% 97.6% 94.4% 30.0% 95.0% 92.0% 90.0% 20.0% 85.0% 10.0% 80.0% 31.3% 20.5% 45.3% 0.1% 1.2% 0.0% FY2018 FY2019 FY2020 FY2021 Monthly 75.0% tena
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 22.5% Parkson Corporation Sdn Bhd 8.9% (Parkson) 24.7% 24.5% Sam's Groceria Sdn Bhd 2.4% (Sam's Groceria) Sunway Hotel (Seberang Jaya) Sdn Bhd 2 2.0% (Sunway Carnival Convention Centre) Life H
Slide 37: 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-13 Jun-14 Jun-15 Jun-16 Jun-17 Suncity Ipoh Hypermarket is tenanted to a single tenant, a major hypermarket and retailer chain operating under the “Giant
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% # 86.3% 82.4% 40.0% 80.0% 74.9% 69.8% 30.0% 60.0% 20.0% 40.0% 10.0% 20.0% 59.8% 23.2% 2.7% 0.5% 0.0% 0.0%* FY2018 FY2019 FY2020 Monthly 0.0% tenancy Jun-13 Jun-14
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 17.8% TGV Cinemas Sdn Bhd 4.2% (TGV Cinemas) 26.1% Padini Dot Com Sdn Bhd 2.2% 35.6% (Padini Concept Store) Parenthood Venture Sdn Bhd 1.7% (The Parenthood) 1.7% GCH Retail (Malaysia) Sdn Bhd 1.6% (Cold S
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% 95.0% 85.0% 81.2% 81.5% 78.8% 78.0% 80.0% 90.0% 87.4% 75.0% 71.3% 70.0% 85.0% 81.8% 82.2% 65.0% 80.3% 79.5% 80.0% 60.0% 55.0% 73.6% 75.0% 50.0% 71.7% Jun-13 Jun-14 Jun-1
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% 82.4% 81.4% 90.0% 78.7% # 80.0% 79.8% 80.3% 71.8% 80.0% 78.2% 70.0% 70.0% 56.8% 60.0% 62.0% 60.0% 55.2% 50.0% 40.0% 50.0% # * 43
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% 80.0% 76.3% 71.1% 73.9% 76.0% 67.8% 69.6% 70.0% 65.5% 70.2% 70.0% 64.1% 63.9% 60.0% 61.9% 51.6% 60.2% 60.0% 50.0% 40.0% 50.0% Jun-13 Jun-14 Jun-15 Jun-16 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% 68.2% 71.7% 69.0% 70.0% 60.2% 70.0% 67.0% 64.5% 60.0% 50.2% 61.5% 58.3% 42.6% 60.0% 50.0% 40.0% 28.8% 50.0% 45.0% 30.0% 40.0% 36.5% 20.0% 10.0% 30.0% 0.0% Jun-13 Jun-14 J
Slide 44: Hospitality Properties: Sunway Hotel Georgetown
HOSPITALITY PROPERTIES SUNWAY HOTEL GEORGETOWN Historical occupancy rate Average occupancy rate Average occupancy rate (%) 87.7% 90.0% 88.7% 88.6% 90.0% 87.3% 86.4% 76.0% 85.0% 82.6% 80.0% 74.0% 69.1% 80.0% 70.0% 74.1% 75.0% 60.0% 54.7% 70.7% 70.0% 68.8% 50.0% 65.0% 40.0% # # Jun-13 Jun-14 Jun-15 *
Slide 45: Office Properties: Menara Sunway
OFFICE PROPERTIES MENARA SUNWAY Historical occupancy rates Projected lease expiry schedule Average occupancy rate 100.0% 100.0% 98.9% 98.8% 80.0% 97.1% 95.0% 92.1% 60.0% 89.3% 90.0% 40.0% 85.0% 20.0% 80.0% 5.8% 83.0% 6.3% 0.0% 75.0% FY2018 FY2019 FY2020 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Expiring te
Slide 46: Menara Sunway (Cont'd)
OFFICE PROPERTIES MENARA SUNWAY (Cont’d) Tenant mix 1 Top 10 tenants 1 1.9% Total Top 10 Tenants 75.1% 13.2% 2.0% Sunway Management Sdn Bhd 20.7% 2.6% 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% 9.0% 83.0% 84.3% 80.0% 66.9% 6.0% 60.0% 40.0% 3.0% 19.6% 20.7% 20.0% 7.4% 11.7% 1.6% 0.0% FY2018 FY2019 FY2020 0.0% Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Expiring tenancies as %
Slide 48: Sunway Tower (Cont'd)
OFFICE PROPERTIES SUNWAY TOWER (Cont’d) Tenant mix 1 Top 10 tenants 1 Total Top 10 Tenants 100.0% 4.5% 8.2% WPP Business Services Sdn Bhd 20.4% VPO Services Sdn Bhd 19.3% 14.5% ZJ Advisory Sdn Bhd 15.9% 52.5% Royal Danish Embassy 14.5% Bexcel Shared Services Malaysia Sdn Bhd 11.6% 20.3% R1 Internati
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% 78.0% 80.0% 74.2% 10.0% 60.0% 52.8% 40.0% 36.6% 5.0% 26.4% 20.0% 4.3% 18.2% 19.9% 0.0% FY2018 FY2019 FY2020 0.0% Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Expiring tenan
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% 2.8% Kementerian Perdagangan Dalam Negeri 3.2% 39.2% Koperasi Dan Kepenggunaan Malaysia Lembaga Pembangunan Industri Pembinaan 35.7% Malaysia (CIDB) Jabatan Perdana Menteri (I.C.U) 9.5% 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% 90.0% # 86.9% 85.1% # 20.0% 80.9% 80.0% 10.0% 70.0% 60.0% 38.1% 26.9% 18.6% 0.0% FY2018 FY2019 FY2020 50.0% Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Expiring ten
Slide 52: Wisma Sunway (Cont'd)
OFFICE PROPERTIES WISMA SUNWAY (Cont’d) Tenant mix 1 Top tenants 1 Total Top Tenants 100.0% 3.8% 2.4% Jabatan Kesihatan Negeri Selangor 38.3% Jabatan Alam Sekitar 25.3% Lembaga Hasil Dalam Negeri 17.4% Yayasan Penyelidikan Transformasi 7.0% Pejabat Tindakan Pelancongan Negeri 5.8% 93.8% Selangor SM
Slide 53: 5. Market Outlook
5. Market Outlook Driving values through sustainable growth 53
Slide 54: General Outlook
General Outlook o Global economies saw a synchronized growth in the first quarter of CY2017 (1Q CY2017) supported by resurgence in manufacturing and global trades on the back of bottoming out of global investments. The World Bank maintained its global growth projection at 2.7% in CY2017 and 2.9% in
Slide 55: General Outlook
General Outlook o On 13 July 2017, the Monetary Policy Committee (MPC) of BNM has left the Overnight Policy Rate (OPR) unchanged at 3.00%. The MPC has cited that the monetary policy stance is to remain accommodative and supportive of economic activity while they continue to assess the risks surround
Slide 56: Retail Segment
Retail Segment o The Malaysian retail industry recorded another quarter of somewhat subdued performance in 1Q CY2017, registering a contraction of 1.2% y-o-y (1Q CY2016: -4.4%) due to soft spending during the festive season. Despite the lackluster data, the Retail Group Malaysia (RGM) maintained the
Slide 57: Retail Segment (Cont'd)
Retail Segment (Cont’d) o Sunway Carnival Shopping Mall’s average occupancy rate improved to 97.6% in FY2017, compared to 94.4% in FY2016. The improvement in the average occupancy was due to completion of a new food and beverage (F&B) area with a NLA of 16,000 sq.ft. (equivalent to 3% of total NLA)
Slide 58: Hotel Segment
Hotel Segment o Major indicators are suggesting a promising year for the hospitality sector. Expectation of improving macro-economic condition, consumer sentiment and business confidence as well as favourable currency are impetus for the sector to perform well going forward. In addition, the hospita
Slide 59: Hotel Segment
Hotel Segment o Business operation of Sunway Pyramid Hotel was affected by upgrading and refurbishment since April 2016. For the financial year ended 30 June 2017, average occupancy rate slipped from 71.8% in FY2016 to 56.8% based on available rooms. The hotel was re-launched in November 2016 with p
Slide 60: Hotel Segment (Cont'd)
Hotel Segment (Cont’d) o In Penang, the ongoing tactical strategy employed has contributed to improved occupancy for the two hotels. The average occupancy rate for Seberang Jaya Hotel rose to 71.1% in FY2017, from 65.5% in the preceding year. The average occupancy for the quarter ended 30 June 2017
Slide 61: Office Segment
Office Segment o The total stock of office space in the Klang Valley stood at 104.6 million sq.ft. in 1Q CY2017 with an estimated new supply of 6.3 million sq.ft. coming on stream in CY2017 and CY2018. o Despite the massive disequilibrium between demand and supply, there are pockets of opportunities
Slide 62: Office Segment (Cont'd)
Office segment (Cont’d) o Meanwhile, Wisma Sunway reported a dip in average occupancy rate of 86.9% in FY2017, from 90.1% in the preceding year due to downsizing and non-renewal of tenants. o The Manager expects the performance of Sunway REIT’s office segment to gradually improve in FY2018 on the ba
Slide 63: 6. Investor Relations
6. Investor Relations 63 Driving values through sustainable growth
Slide 64: Unit Price Performance from IPO to FY2017
Unit Price Performance from IPO to FY2017 Unit Price Performance of Sunway REIT versus Benchmarks (8 July 2010 – 30 June 2017) TR/GPR/APREA Composite REIT Index Malaysia 140.0% 136.2% 120.0% Sunway REIT 100.0% 97.8% 80.0% 60.0% FBM KLCI 40.0% 34.0% 20.0% 0.0% Jun 2010 Jun 2011 Jun 2012 Jun 2013 Jun
Slide 65: Unit Price Performance for FY2017
Unit Price Performance for FY2017 Unit Price Performance of Sunway REIT versus Benchmarks (30 June 2016 – 30 June 2017) 12.0% TR/GPR/APREA Composite REIT Index Malaysia 10.0% 9.4% 8.0% 6.0% FBM KLCI 6.6% 4.0% Sunway 2.0% REIT 7.2% 0.0% Jun 2016 Sep 2016 Dec 2016 Mar 2017 Jun 2017 -2.0% -4.0% Perform
Slide 66: 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 67: Unitholders' Composition
Unitholders’ Composition (as at 30 June 2017) Foreign Retail 8.9% 10.0% Sunway Berhad 37.3% Institutions & Corporate Domestic 52.7% 91.1% June 2017 March 2017 Q-o-Q Change No of unitholders 10,307 10,048 259 (+2.6%) Retail unitholders 10.0% 10.2% -0.2% Foreign unitholders 8.9% 9.0%1 -0.1% Sunway Ber
Slide 68: Analysts Recommendation
Analysts Recommendation (as at 30 June 2017) Target Price as at 30 June 2017(RM) Upside / Downside to unit price as at 30 June 2017 (%) 5.6 5.6 4.5 4.7 4.5 3.9 3.4 3.4 3.4 1.88 1.88 1.86 1.85 1.84 1.86 1.85 1.84 1.84 1.74 1.70 1.70 1.70 1.49 (2.2) (4.5) (4.5) (4.5) TA Research UOB Kay Hian AmInvestm
Slide 69: Comparative Yields for Various Assets
Comparative Yields for Various Assets 7.0% 6.0% 5.75%2 5.70%5 5.16%1 5.0% 3.91%3 4.0% 3.08%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 is computed based on actual FY2017 proposed DPU of 9.19 sen and unit price as at 30 June 2017
Slide 70: Thank You
THANK YOU Driving values through sustainable growth
Sunway Real Estate Investment Trust — Q4 FY2017 Earnings Presentation on 6ix