Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — Q3 FY2018 Earnings Presentation
74 slides from Sunway Real Estate Investment Trust's earnings presentation, May 3, 2018
Slide 1: Sunway REIT Financial Results 3rd Quarter Ended 31 March 2018
Sunway REIT Financial Results 3rd Quarter Ended 31 March 2018 (FYE 30 June 2018) Announcement Date: 3 May 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. 3Q 2018 Financial Results 3. 3Q 2018 Portfolio Performance 4. 3Q 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 January 2018 - 31 March 2018 Distribution Per Unit (DPU) (sen) 2.37 1 Notice of Entitlement 3 May 2018 Ex-Dividend Date 16 May 2018 Book Closure Date 18 May 2018 Payment Date 5 June 2018 1 Proposed income distribution for 3Q201
Slide 6: Financial Highlights
Financial Highlights Highlights 3Q 2018 3Q 2017 No. of Properties 16 14 Property Value (RM'billion) 7.143 6.514 No. of Units in Circulation 2,945,078,000 2,945,078,000 Unit Price as at 31 March (RM) 1.60 1.72 Market Capitalisation (RM'billion) 4.712 5.066 Net Asset Value (NAV) Per Unit (RM) 1.4077 1
Slide 7: Financial Highlights (Cont'd)
Financial Highlights (Cont’d) Gross Revenue (RM'm) Net Property Income (RM'm) 500.0 400.0 1 424.2 2 5.2% 390.3 319.7 400.0 5.1% 300.0 290.3 300.0 200.0 200.0 141.2 141.5 141.5 111.0 105.3 128.8 126.9 134.6 103.4 100.2 100.0 96.0 94.1 100.0 - - 1Q 2Q 3Q YTD 1Q 2Q 3Q YTD 2018 2017 2018 2017 1 Gross Re
Slide 8: Financial Highlights (Cont'd)
Financial Highlights (Cont’d) Profit Before Tax (Realised) (RM'm) DPU (sen) 300.0 10.00 218.6 8.00 7.42 203.8 6.92 200.0 6.00 4.00 100.0 1 2.67 2 78.6 70.1 69.9 69.9 2.38 2.37 2.37 66.8 67.1 2.27 2.28 2.00 - - 1Q 2Q 3Q YTD 1Q 2Q 3Q YTD 2018 2017 2018 2017 1 Profit Before Tax (Realised) for 3Q2018 is
Slide 9: 2. 3Q 2018 Financial Results
2. 3Q 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 Change YTD 2018 YTD 2017 Change 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 5.2% 424,154 390,332 8.7% Less : Property operati
Slide 11: Statement of Comprehensive Income – Consolidated (Cont'd)
Statement of Comprehensive Income-Consolidated (Cont’d) Explanation: 1 Higher interest income in 3Q2018 compared to 3Q2017 mainly contributed by interest income from investment in money market instrument commencing from September 2017 amounting to RM0.4 million and higher interest income from financ
Slide 12: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 31.03.18 30.06.17 RM'000 RM'000 ASSETS Non-current assets 1 Investment properties 7,142,828 6,689,200 Plant and equipment 9,718 9,063 7,152,546 6,698,263 Current assets Trade receivables 23,909 16,821 Other receivables 5,986 16,153 2 Derivatives - 8,112
Slide 13: Debt Profile
Debt Profile Facility Limit RM'milion Loan Maturity Profile (RM'm) RM'million 1 1,100.0 Revolving Loan 392.9 386.3 900.0 Commercial Papers (CP) / 2 3 Revolving Loan (RL) 1,100.0 1,100.0 700.0 950.0 Unrated MTNs 10,000.0 1,300.0 500.0 Total Gross Borrowings 2,786.3 300.0 400.0 386.3 400.0 Discount on
Slide 14: 3. 3Q 2018 Portfolio Performance
3. 3Q 2018 Portfolio Performance Driving values through sustainable growth 14
Slide 15: 3Q 2018 Revenue Contribution by Segment
3Q 2018 Revenue Contribution 3Q 2018 (RM'million) 141.5 5.2% 3Q 2017 (RM'million) 134.6 By segment (RM'm) 160.0 2.1% 140.0 120.0 107.9 105.7 100.0 80.0 17.8% 4.9% 28.6% 60.0 40.0 17.9 15.2 20.0 8.5 8.1 7.2 5.6 - Retail Hotel Office Others 3Q 2018 3Q 2017 Note: Calculation of % of increase/decrease a
Slide 16: 3Q 2018 Revenue Contribution by Property
3Q 2018 Revenue Contribution (Cont’d) 3Q 2018 (RM'million) 141.5 5.2% 3Q 2017 (RM'million) 134.6 Retail Hotel Office Others 100.0 By property (RM’m) 80.0 60.0 40.0 20.0 - Sun way Sun way Sun way Sun way SCI Sun way Sun way Sun way Sun way Sun way Sun way REIT Sun way Sun way Resort Ho tel Ho tel Men
Slide 17: 3Q 2018 Revenue Contribution Explanation
3Q 2018 Revenue Contribution (Cont’d) Explanation: 1 Sunway Pyramid – Higher revenue mainly due to higher average gross rent per sq. ft.. 2 Sunway Resort Hotel & Spa – Lower revenue mainly due to lower average occupancy rate on the back of softer demand from the leisure segment but mitigated by high
Slide 18: 3Q 2018 Revenue Contribution Breakdown
3Q 2018 Revenue Contribution (Cont’d) 3Q 2018 By Property % By segment Others Sunway Pyrami d 57.7% Office 5.1% Sunway Carni val 8.3% 6.1% SCI Hypermarket 0.8% Hotel Sunway Putra Mal l 9.4% 12.6% Total Retai l 76.2% Sunway Res ort Hotel & Spa 5.3% Retail Sunway Pyrami d Hotel 2.8% 76.2% Sunway Hotel
Slide 19: YTD 3Q 2018 Revenue Contribution by Segment
YTD 3Q 2018 Revenue Contribution YTD 3Q 2018 (RM'million) 424.2 8.7% YTD 3Q 2017 (RM'million) 390.3 By segment (RM'm) 450.0 3.6% 400.0 350.0 315.3 304.2 300.0 250.0 200.0 37.7% 4.3% 26.4% 150.0 100.0 63.9 46.4 50.0 24.4 23.4 20.6 16.3 - Retail Hotel Office Others YTD 3Q 2018 YTD 3Q 2017 Note: Calcul
Slide 20: YTD 3Q 2018 Revenue Contribution by Property
YTD 3Q 2018 Revenue Contribution (Cont’d) YTD 3Q 2018 (RM'million) 424.2 8.7% YTD 3Q 2017 (RM'million) 390.3 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 Sun way SCI Sun way Sun way Sun way Sun way Sun way Sun way REIT Sun way Sun wa
Slide 21: YTD 3Q 2018 Revenue Contribution Explanation
YTD 3Q 2018 Revenue Contribution (Cont’d) Explanation: 1 Sunway Pyramid, Sunway Clio Property and Sunway REIT Industrial – Shah Alam 1 – Higher gross revenue with similar explanations as per page 17. 2 Sunway Resort Hotel & Spa – Registered higher gross revenue by RM1.9 million for YTD 3Q2018 contri
Slide 22: YTD 3Q 2018 Revenue Contribution Breakdown
YTD 3Q 2018 Revenue Contribution (Cont’d) YTD 3Q 2018 By Property % By segment Sunway Pyrami d 55.9% Others Office 4.9% Sunway Carni val 8.3% 5.8% SCI Hypermarket 0.8% Hotel Sunway Putra Mal l 9.3% 15.0% Total Retai l 74.3% Sunway Res ort Hotel & Spa 7.3% Retail Sunway Pyrami d Hotel 2.8% 74.3% Sunw
Slide 23: 3Q 2018 NPI Contribution by Segment
3Q 2018 NPI Contribution NPI Margin 3Q 2018 (RM'million) 105.3 74.4% 5.1% 3Q 2017 (RM'million) 100.2 74.4% By Segment (RM'm) 100.0 1.4% 77.0 75.9 80.0 60.0 17.6% -10.0% 2.2% 28.6% 40.0 16.7 14.2 20.0 4.4 4.5 7.2 5.6 - Retail Hotel Office Others 3Q 2018 3Q 2017 Note: Calculation of % of increase/decr
Slide 24: 3Q 2018 NPI Contribution by Property
3Q 2018 NPI Contribution (Cont’d) NPI Margin 3Q 2018 (RM'million) 105.3 74.4% 5.1% 3Q 2017 (RM'million) 100.2 74.4% Retail Hotel Office Others 75.0 By property (RM’m) 65.0 55.0 45.0 35.0 25.0 15.0 5.0 (5.0) Sunway Sunway Sunway Sunway Sunway Sunway REIT Sunway Sunway SCI Sunway Hotel Sunway Sunway C
Slide 25: 3Q 2018 NPI Contribution Explanation
3Q 2018 NPI Contribution (Cont’d) Explanation: 1 Sunway Pyramid – NPI increased by RM1.2 million despite higher revenue of RM2.1 million partially offset by higher maintenance costs of RM0.9 million. 2 Sunway Resort Hotel & Spa and Sunway Putra Hotel – Lower NPI due to lower revenue as explained on
Slide 26: 3Q 2018 NPI Contribution Breakdown
3Q 2018 NPI Contribution (Cont’d) 3Q 2018 By Property % By segment Office 4.3% Others Sunway Pyrami d 58.5% 6.8% Sunway Carni val 7.1% SCI Hypermarket 0.9% Hotel Sunway Putra Mal l 6.6% 15.8% Total Retai l 73.1% Sunway Res ort Hotel & Spa 6.9% Retail 73.1% Sunway Pyrami d Hotel 3.6% Sunway Hotel Seb
Slide 27: YTD 3Q 2018 NPI Contribution by Segment
YTD 3Q 2018 NPI Contribution NPI Margin YTD 3Q 2018 (RM'million) 319.7 75.4% 10.1% YTD 3Q 2017 (RM'million) 290.3 74.4% By Segment (RM'm) 280.0 3.7% 240.0 226.3 218.2 200.0 160.0 39.5% 7.2% 1.6% 26.4% 120.0 80.0 60.7 43.5 40.0 12.1 12.3 20.6 16.3 - Retail Hotel Office Others YTD 3Q 2018 YTD 3Q 2017
Slide 28: YTD 3Q 2018 NPI Contribution by Property
YTD 3Q 2018 NPI Contribution (Cont’d) NPI Margin YTD 3Q 2018 (RM'million) 319.7 75.4% 10.1% YTD 3Q 2017 (RM'million) 290.3 74.4% Retail Hotel Office Others 220.0 200.0 By property (RM’m) 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 - (20.0) Sunway Sunway Sunway Sunway SCI Sunway Sunway Sunway S
Slide 29: YTD 3Q 2018 NPI Contribution Explanation
YTD 3Q 2018 NPI Contribution (Cont’d) Explanation: 1 Sunway Pyramid – NPI increased by RM8.1 million despite higher revenue of RM9.1 million partially offset by higher maintenance expenses and allowance for doubtful debts during the period (as compared to a reversal of allowance for doubtful debts f
Slide 30: YTD 3Q 2018 NPI Contribution Breakdown
YTD 3Q 2018 NPI Contribution (Cont’d) YTD 3Q 2018 By Property % By segment Office 3.9% Others Sunway Pyrami d 56.2% 6.5% Sunway Carni val 7.1% SCI Hypermarket 1.0% Hotel Sunway Putra Mal l 6.3% 19.0% Total Retai l 70.6% Retail Sunway Resort Hotel & Spa 9.3% 70.6% Sunway Pyrami d Hotel 3.7% Sunway Ho
Slide 31: Resilient Income Stream
Resilient Income Stream WALE 1 as at 31 March 2018 – 1.99 years Top 10 tenants contribute approximately 12.6% of total revenue Projected tenancy expiry of portfolio 2 Top 10 tenants 4 Total Top 10 Tenants 12.6% 50.0% Parkson Corporation Sdn Bhd 1.9% (Parkson, Origin) 42.7% GCH Retail (Malaysia) Sdn
Slide 32: 4. 3Q 2018 Property Performance
4. 3Q 2018 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% 99.1% 97.8% 98.1% 98.3% 98.0% 97.9% 30.0% 95.0% 90.0% 20.0% 85.0% 10.0% 80.0% 4.4% 18.4% 47.2% 24.2% 4.9% 0.0% FY2018 FY2019 FY2020 FY2021 Monthly 75.0%
Slide 34: Sunway Pyramid Shopping Mall: Tenant Mix
RETAIL PROPERTIES SUNWAY PYRAMID SHOPPING MALL (Cont’d) Tenant mix 1 Top 10 tenants 1 14.0% Total Top 10 Tenants Aeon Co. (M) Bhd 2.1% 22.4% (Aeon) JD Sports Fashion Sdn Bhd 1.7% 35.6% (JD, Sports Empire, The Marathon Shop) Parkson Corporation Sdn Bhd 1.6% (Parkson, Origin) 7.4% Padini Dot Com Sdn B
Slide 35: 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% 60.0% 97.3% 97.6% 97.0% 97.3% 94.4% 95.0% 92.0% 40.0% 90.0% 20.0% 85.0% 80.0% 7.7% 22.9% 58.4% 9.1% 0.4% 0.0% FY2018 FY2019 FY2020 FY2021 Monthly 75.0% tenan
Slide 36: Sunway Carnival Shopping Mall: Tenant Mix
RETAIL PROPERTIES SUNWAY CARNIVAL SHOPPING MALL (Cont’d) Tenant mix 1 Top 10 tenants 1 Total Top 10 Tenants 23.0% Parkson Corporation Sdn Bhd 8.3% (Parkson) 24.3% 24.5% Sam's Groceria Sdn Bhd 2.2% (Sam's Groceria) Life Habitat Sdn Bhd 2.1% (Studio) Padini Corporation Sdn Bhd 9.0% (PDI) 1.9% PECC Sdn
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% 95% 90% 85% 80% 75% Jun-14 Jun-15 Jun-16 Jun-17 YTD 3Q YTD 3Q 2018 2017 Suncity Ipoh Hypermarket is leased to a single tenant, a major hypermarket and retailer chain operat
Slide 38: Retail Properties: Sunway Putra Mall
RETAIL PROPERTIES SUNWAY PUTRA MALL Historical occupancy rates Projected lease expiry schedule Average occupancy rate 50.0% 40.0% 100.0% 90.5% 2 86.3% 86.0% 82.4% 80.0% 74.9% 30.0% 60.0% 20.0% 40.0% 10.0% 20.0% 27.4% 21.9% 5.8% 36.9% 0.8% 0.0% 1 0.0% FY2018 FY2019 FY2020 FY2021 Monthly 0.0% tenancy
Slide 39: Sunway Putra Mall: Tenant Mix
RETAIL PROPERTIES SUNWAY PUTRA MALL (Cont’d) Tenant mix 1 Top 10 tenants 1 Total Top 10 Tenants 18.9% TGV Cinemas Sdn Bhd 4.2% 23.1% (TGV Cinemas) Parenthood Venture Sdn Bhd 2.4% (The Parenthood) 36.4% Padini Dot Com Sdn Bhd 1.9% (Padini Concept Store) 2.1% 3.1% Jerasia Fashion Sdn Bhd 1.8% (Nike, M
Slide 40: Retail Properties: Sunway Clio Retail
RETAIL PROPERTIES SUNWAY CLIO RETAIL Historical occupancy rates Projected lease expiry schedule Average occupancy rate 50.0% 40.0% 100.0% 30.0% 80.0% 58.3% 60.0% 20.0% 37.5% 35.7% 40.0% 10.0% 20.0% 10.2% 32.8% 45.2% 0.0% 3.0% FY2019 FY2020 FY2021 0.0% Jun-16 Jun-17 YTD 3Q 2018 YTD 3Q 2017 Expiring t
Slide 41: Sunway Clio Retail: Tenant Mix
RETAIL PROPERTIES SUNWAY CLIO RETAIL (Cont’d) Tenant mix 1 Top tenants 1 100.0% Total Top Tenants Parenthood Superstore Sdn Bhd 36.9% (The Parenthood) 36.9% KFP Village (M) Sdn Bhd 33.0% (Kung Fu Panda) Epiccsoul Sdn Bhd 10.2% 63.1% (Impressoul Gastrology) Chakri Group Of Restaurants (M) Sdn Bhd 8.9
Slide 42: Hospitality Properties: Sunway Resort Hotel & Spa
HOSPITALITY PROPERTIES SUNWAY RESORT HOTEL & SPA Historical occupancy rate Average occupancy rate Average occupancy rate (%) 100.0% 90.0% 84.8% 85.0% 81.2% 81.5% 94.3% 78.8% 78.0% 78.0% 95.0% 80.0% 90.4% 75.0% 90.0% 70.0% 65.0% 85.0% 60.0% 80.3% 79.5% 80.0% 55.0% 50.0% 73.7% 71.7% 75.0% Jun-14 Jun-1
Slide 43: 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% 71.3% 75.5% 71.0% 70.0% 70.0% 67.5% 56.8% 62.0% 60.0% 51.6% 60.0% 50.0% 50.0% 4 40.0% 43.0% 1 2 Jun-14 Jun-15 Jun-16 Jun-17 YTD 3Q
Slide 44: 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% 75.6% 72.3% 72.3% 80.2% 69.9% 80.0% 77.0% 70.0% 71.9% 70.0% 68.0% 60.0% 62.2% 50.0% 58.7% 60.0% 40.0% 1 1 2 1 50.0% Jun-16 Jun-17 YTD 3Q 2018 YTD 3Q 201
Slide 45: 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% 75.3% 76.3% 80.0% 75.9% 69.6% 71.1% 73.9% 74.3% 67.8% 69.3% 70.0% 65.5% 70.2% 70.0% 60.0% 50.0% 63.9% 40.0% Jun-14 Jun-15 Jun-16 Jun-17 YTD 3Q YTD 3Q 60.0%
Slide 46: Hospitality Properties: Sunway Putra Hotel
HOSPITALITY PROPERTIES SUNWAY PUTRA HOTEL Historical occupancy rate Average occupancy rate Average occupancy rate (%) 90.0% 80.0% 72.8% 69.4% 68.2% 85.0% 60.0% 50.2% 42.6% 80.0% 78.6% 40.0% 28.8% 75.0% 72.0% 71.7% 20.0% 69.0% 70.0% 67.8%67.0% 64.5% 65.0% 0.0% Jun-14 Jun-15 Jun-16 Jun-17 YTD 3Q YTD 3
Slide 47: Hospitality Properties: Sunway Hotel Georgetown
HOSPITALITY PROPERTIES SUNWAY HOTEL GEORGETOWN Historical occupancy rate Average occupancy rate Average occupancy rate (%) 100.0% 100.0% 92.0% 87.7% 87.4% 95.0% 93.3% 91.4% 91.1% 90.0% 90.0% 88.7% 88.6% 87.3% 86.4% 80.0% 76.0% 74.0% 70.0% 85.0% 70.0% 80.0% 60.0% 75.0% 70.0% 50.0% Jun-15 * # Jun-14 J
Slide 48: Office Properties: Menara Sunway
OFFICE PROPERTIES MENARA SUNWAY Historical occupancy rates Projected lease expiry schedule Average occupancy rate 100.0% 100.0% 98.8% 80.0% 97.1% 95.0% 93.6% 92.1% 60.0% 91.1% 89.3% 90.0% 40.0% 85.0% 20.0% 80.0% 2.9% 82.0% 6.3% 0.0% 75.0% FY2018 FY2019 FY2020 Jun-14 Jun-15 Jun-16 Jun-17 YTD 3Q YTD 3
Slide 49: Menara Sunway: Tenant Mix
OFFICE PROPERTIES MENARA SUNWAY (Cont’d) Tenant mix 1 Top 10 tenants 1 1.9% Total Top 10 Tenants 75.2% 12.4% 2.0% Sunway Management Sdn Bhd 20.8% 2.7% 31.7% Sunway Integrated Properties Sdn Bhd 17.8% 4.5% Sunway Construction Group Berhad 8.6% 5.9% Merck Sdn Bhd 7.1% 7.1% Sunway Shared Service Sdn Bh
Slide 50: Office Properties: Sunway Tower
OFFICE PROPERTIES SUNWAY TOWER Historical occupancy rates Projected lease expiry schedule Average occupancy rate 12.0% 100.0% 9.0% 84.3% 80.0% 66.9% 6.0% 60.0% 3.0% 40.0% 19.6% 20.7% 21.0% 20.7% 20.0% 6.9% 11.7% 2.1% 0.0% FY2018 FY2019 FYE2020 0.0% Jun-14 Jun-15 Jun-16 Jun-17 YTD 3Q YTD 3Q Expiring
Slide 51: Sunway Tower: Tenant Mix
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 52: 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% 20.0% 60.0% 52.8% 48.5% 40.0% 36.6% 34.8% 10.0% 26.4% 20.0% 3.8% 18.2% 20.8% 35.4% 0.0% FY2018 FY2019 FY2020 FY2021 0.0% Jun-14 Jun-15 Jun-16 Jun-17 Y
Slide 53: Sunway Putra Tower: Tenant Mix
OFFICE PROPERTIES SUNWAY PUTRA TOWER (Cont’d) Tenant mix 1 Top 10 tenants 1 Total Top 10 Tenants 98.7% 1.7% 1.5% 0.7% Jabatan Kerja Raya 37.9% Kementerian Perdagangan Dalam Negeri Koperasi 20.7% Dan Kepenggunaan Malaysia Lembaga Pembangunan Industri Pembinaan Malaysia (CIDB) 18.8% Jabatan Perdana Me
Slide 54: 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% 87.6% 85.1% 20.0% 79.0% 80.0% 70.0% 10.0% 60.0% 30.9% 26.9% 18.6% 0.0% FY2018 FY2019 FY2020 50.0% Jun-141 Jun-151 Jun-16 Jun-17 YTD 3Q YTD 3Q 20
Slide 55: Wisma Sunway: Tenant Mix
OFFICE PROPERTIES WISMA SUNWAY (Cont’d) Tenant mix 1 Top tenants 1 Total Top Tenants 100.0% 4.2% Jabatan Kesihatan Negeri Selangor 42.2% Jabatan Alam Sekitar 27.9% Lembaga Hasil Dalam Negeri 19.3% 95.8% Pejabat Tindakan Pelancongan Negeri Selangor 6.4% Government Agency Consultancy SM Centre (MYS) S
Slide 56: 5. Property Development Activities
5. Property Development Activities Driving values through sustainable growth 56
Slide 57: Expansion of Sunway Carnival Shopping Mall
Expansion of Sunway Carnival Shopping Mall Expansion of Sunway Carnival Shopping Mall Estimated total property development cost (including land) RM339.0 million Cummulative cost incurred from initiation to YTD3Q2018 RM26.1 million Duration Approximately 3 years from 3Q2018 NLA (sq. ft.) Approximatel
Slide 58: 6. Market Outlook
6. Market Outlook Driving values through sustainable growth 58
Slide 59: General Outlook
General Outlook o The global economy saw a synchronised and broad-based resurgence across major economies, underpinned by stronger investment activities and recovery in external trades, particularly in Asia. Synchronous uptrend in growth is expected to accelerate in 2018, riding on the positive mome
Slide 60: General Outlook
General Outlook o Headline inflation increased to 3.7% in CY2017 (CY2016: 2.1%), within the official expectation of 3.0% to 4.0%. Going forward, headline inflation is expected to moderate in CY2018, averaging between 2.0% to 3.0%. The lower inflation is supported by a stronger domestic currency in l
Slide 61: Retail Segment
Retail Segment o The independent retail research firm, Retail Group Malaysia (RGM) has reported that Malaysia’s retail sales grew by a subdued pace of 2.0% in CY2017, below its revised annual growth forecast of 3.7%. RGM expects retail sales to grow by 4.7% in CY2018 alongside with the strength of t
Slide 62: Retail Segment (Cont'd)
Retail Segment (Cont’d) o The average occupancy rate for Sunway Carnival Shopping Mall improved further from 96.2% for YTD 2Q FY2018 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 114,599 sq.ft. equivalent to 76.5% of total space
Slide 63: Hotel Segment
Hotel Segment o Tourists arrivals eased by 3.0% y-o-y to 25.95 million in CY2017, below the official target of 31.8 million tourists. The subdued tourism activities was attributable to lower tourist arrivals from major markets such as Singapore, Indonesia, India, Japan, United Kingdom, Australia and
Slide 64: Hotel Segment (Cont'd)
Hotel Segment (Cont’d) o Sunway Putra Hotel’s average occupancy rate was stable at 67.8% in 3Q FY2018 (3Q FY2017: 67.0%). The occupancy was sustained by healthy demand from the corporate segment. o In Penang, the average occupancy rates of the hotels strengthened further. In 3Q FY2018, the average o
Slide 65: Office Segment
Office Segment o The office segment improved marginally in CY2017 as higher take-up of office space had led to improved occupancy rate, according to the Valuation and Property Services Department. The national average occupancy rate for office sector increased from 82.3% in CY2016 to 83.3% in CY2017
Slide 66: Office Segment
Office Segment o Pursuant to downsizing and non-renewal of tenancies during the financial year, the average occupancy rate at Wisma Sunway was marginally lower at 79.0% for YTD 3Q FY2018 compared to 80.3% for YTD 2Q FY2018. The occupancy is expected to increase to 99.9% by 4Q FY2018 on the back of e
Slide 67: 7. Investor Relations
7. Investor Relations Driving values through sustainable growth 67
Slide 68: Unit Price Performance from IPO to YTD 3Q FY2018
Unit Price Performance from IPO to YTD 3Q FY2018 Unit Price Performance of Sunway REIT versus Benchmarks (8 July 2010 – 31 March 2018) GPR APREA Composite REIT Index - Malaysia 140.0% 105.9% 120.0% 100.0% 80.0% 60.0% Sunway REIT 77.8% 40.0% 20.0% FBM KLCI 0.0% 41.6% Jun 2010 Jun 2011 Jun 2012 Jun 20
Slide 69: Unit Price Performance for YTD 3Q FY2018
Unit Price Performance for YTD 3Q FY2018 Unit Price Performance of Sunway REIT versus Benchmarks (30 June 2017 – 31 March 2018) 8.0% 4.0% FBM KLCI 5.7% 0.0% -4.0% Sunway REIT -10.1% -8.0% -12.0% -16.0% Bursa Malaysia REIT Index -20.0% -14.4% Jun 2017 Sep 2017 Dec 2017 Mar 2018 Performance Statistics
Slide 70: Indices Representation (as at 31 March 2018)
Indices Representation (as at 31 March 2018) 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 N
Slide 71: Unitholders' Composition (as at 31 March 2018)
Unitholders’ Composition (as at 31 March 2018) Foreign Retail 8.9% 8.3% Sunway Berhad 39.3% Institutions & Corporate 52.4% Domestic 91.1% March 2018 December 2017 Q-o-Q Change No of unitholders 11,467 11,133 334 (+3.0%) Retail unitholders 8.3% 8.3% Unchanged Foreign unitholders 8.9% 9.2% -0.3% Sunwa
Slide 72: Analysts Recommendation (as at March 2018)
Analysts Recommendation (as at 31 March 2018) 18.8 18.8 18.8 18.1 16.9 Target Price as at 31 March 2018(RM) 15.6 15.6 Upside / Downside to unit price as at 31 March 2018 (%) 12.5 11.9 10.6 9.4 6.3 6.3 1.90 1.90 1.90 1.89 1.85 1.87 1.85 1.80 1.79 1.77 1.75 1.70 1.70 1.41 (11.9) UOB Kay Hian TA Resear
Slide 73: Comparative Yields for Various Assets
Comparative Yields for Various Assets 8.0% 6.88%2 6.90%5 7.0% 6.00%1 6.0% 5.0% 3.94%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 on consensus FY2018 DPU of 9.60 sen and unit price as at 31 March 2018
Slide 74: Thank You
THANK YOU Driving values through sustainable growth
Sunway Real Estate Investment Trust — Q3 FY2018 Earnings Presentation on 6ix