Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — Q3 2022 Earnings Presentation
36 slides from Sunway Real Estate Investment Trust's earnings presentation, Nov 17, 2022
Slide 1: Financial Results Third Quarter Ended 30 September 2022
FINANCIAL RESULTS Third Quarter Ended 30 September 2022 (FYE 31 December 2022) 17 November 2022 1
Slide 2: Table of Contents
Table of Contents 1. Financial Highlights (3Q2022) 2. Financial Results (3Q2022) 3. Segmental Financial Results (3Q2022 & YTD 3Q2022) 4. Property Development Activities (3Q2022) 5. Market Outlook (3Q2022) 6. Investor Relations (3Q2022) Appendix I - Property Performance (YTD 3Q2022) Empowering Busine
Slide 3: Financial Highlights (3Q2022)
FINANCIAL HIGHLIGHTS (3Q2022) Empowering Businesses • Curating Experiences • Enriching Lives 3
Slide 4: Financial Highlights – 3Q2022
Financial Highlights – 3Q2022 Highlights 3Q2022 3Q2021* No. of Properties 19 18 Property Value (RM'billion) 9.010 8.757 Units in Circulation 3,424,807,700 3,424,807,700 Unit Price as at 30 Sept 2022/2021 (RM) 1.40 1.40 Market Capitalisation (RM'billion) 4.795 4.795 Net Asset Value ("NAV") Per Unit (
Slide 5: Financial Highlights – 3Q2022 vs 3Q2021 (Current QTD & YTD)
Financial Highlights – 3Q2022 vs 3Q2021 (Current QTD & YTD) Reported in RM’000 Revenue YTD Higher Revenue mainly due to NPI improvement 2022 153,970 144,509 166,235 464,714 contributed by the retail segment supported by higher 3Q YoY sustained retail footfall, encouraging tenant sales and 55.5% or Y
Slide 6: Financial Results (3Q2022)
FINANCIAL RESULTS (3Q2022) Empowering Businesses • Curating Experiences • Enriching Lives 6
Slide 7: Statement of Comprehensive Income – Consolidated
Statement of Comprehensive Income – Consolidated 3Q2022 3Q2021 Change YTD 2022 YTD 2021 Change RM'000 RM'000 % RM'000 RM'000 % 1. Interest income for 3Q2022 was lower compared to 3Q2021 Revenue 166,235 106,888 55.5% 464,714 314,548 47.7% due to lower deposits due to Property operating expenses (37,9
Slide 8: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 30.09.2022 31.12.2021 30.09.2022 31.12.2021 (Unaudited) (Audited) (Unaudited) (Audited) RM'000 RM'000 RM'000 RM'000 ASSETS Non-current assets Units in circulation ('000 units) 3,424,808 3,424,808 Investment properties 8,973,482 1 8,701,745 Investment pr
Slide 9: Statement of Cash Flows – Consolidated
Statement of Cash Flows – Consolidated Cumulative Quarter ended 1 Net cash from operating activities for YTD 3Q2022 of 30.09.2022 30.09.2021 * RM'000 RM'000 RM317.3 million mainly comprise of cash receipt from lessees and tenants as well as refundable deposits partially net off by OPERATING ACTIVITI
Slide 10: Financing Profile as at 30 September 2022
Financing Profile as at 30 September 2022 Facility Limit Utilised Amt RM'mil RM'mil 1 Revolving Loan (USD) USD 75 292.8 Unrated MTNs 10,000 1,350.0 2 Total Current 1,642.8 Revolving Loan (RM) 2,000 1,790.0 3 Unrated MTNs 10,000 10.0 2 Total Non Current 1,800.0 Total Gross Borrowings 3,442.8 Unamorti
Slide 11: Financing Profile as at 30 September 2022 (Cont’d)
Financing Profile as at 30 September 2022 (Cont’d) Empowering Businesses • Curating Experiences • Enriching Lives 11
Slide 12: Segmental Financial Results (3Q2022 & YTD 3Q2022)
SEGMENTAL FINANCIAL RESULTS (3Q2022 & YTD 3Q2022) Empowering Businesses • Curating Experiences • Enriching Lives 12
Slide 13: Retail Segment: 3Q2022 / YTD 3Q2022
Retail Segment : 3Q2022 / YTD 3Q2022 Total Retail Revenue Total Retail NPI 70% RM 110.3 million (3Q2022) 120% RM 80.5 million (3Q2022) vs RM 64.9 million (3Q2021) vs RM 36.6 million (3Q2021) RM 310.1 million (YTD 3Q2022) RM 222.4 million (YTD 3Q2022) 75% 158% vs RM 177.1 million (YTD 3Q2021) vs RM 8
Slide 14: Hotel Segment: 3Q2022 / YTD 3Q2022
Hotel Segment : 3Q 2022 / YTD 3Q 2022 Total Hotel Revenue Total Hotel NPI 198% RM 18.4 million (3Q2022) 315% RM 17.5 million (3Q2022) vs RM 6.2 million (3Q2021) vs RM 4.2 million (3Q2021) RM 42.9 million (YTD 3Q2022) RM 40.0 million (YTD 3Q2022) 47% 67% vs RM 29.3 million (YTD 3Q2021) vs RM 24.0 mil
Slide 15: Office Segment: 3Q2022 / YTD 3Q2022
Office Segment : 3Q2022 / YTD 3Q2022 Total Office Revenue Total Office NPI 6% RM 20.0 million (3Q2022) 0% RM 12.8 million (3Q2022) vs RM 18.9 million (3Q2021) vs RM 12.8 million (3Q2021) RM 59.2 million (YTD 3Q2022) RM 39.2 million (YTD 3Q2022) 3% 0% vs RM 57.5 million (YTD 3Q2021) vs RM 39.1 millio
Slide 16: Services and Industrial & Others Segments: 3Q2022 / YTD 3Q2022
Services and Industrial & Others Segments : 3Q2022 / YTD 3Q2022 Total Services Revenue and NPI Total Industrial & Others Revenue and NPI 3% RM 15.8 million (3Q2022) 10% RM 1.7 million (3Q2022) vs RM 15.3 million (3Q2021) vs RM 1.5 million (3Q2021) RM 47.4 million (YTD 3Q2022) RM 5.1 million (YTD 3Q2
Slide 17: Property Development Activities (3Q2022)
PROPERTY DEVELOPMENT ACTIVITIES (3Q2022) Empowering Businesses • Curating Experiences • Enriching Lives 17
Slide 18: Property Development Activities
Property Development Activities Sunway Resort Hotel Refurbishment Estimated total property development cost RM261.0 million Cumulative cost incurred from initiation to RM207.1 million 3Q2022 Expected completion 4Q2022 NLA (sq. ft.) / Room Additional 20 new guest rooms Property development activities
Slide 19: Market Outlook (3Q2022)
MARKET OUTLOOK (3Q2022) Empowering Businesses • Curating Experiences • Enriching Lives 19
Slide 20: General Outlook
General Outlook Indicator 2022 (F) 3Q2022(A) 2Q2022 (A) 1Q2022 (A) 2021 (A) Gross Domestic Product (GDP) 6.5% - 7.0% 4 14.2% 1 8.9% 5.0% 3.1% (y-o-y) Consumer Price Index (y-o-y) 3.3%4 4.5% 2 2.8% 2.2% 2.5% Overnight Policy Rate (OPR) 2.75% 5 2.75% 3 2.25% 1.75% 1.75% 1 GDP growth in 3Q2022 (Source:
Slide 21: Segmental Outlook
Segmental Outlook Retail Segment o The outlook for retail segment remains positive, underpinned by strong improvement in retail footfall and retail sales which have recovered to pre-pandemic level in 2019. The outlook is further supported by healthy economic growth, sustained domestic consumption, g
Slide 22: Segmental Outlook (Cont’d)
Segmental Outlook (Cont’d) Office Segment o The Manager expects the office segment to remain resilient as businesses are operating at full capacity as the economy transitions into the endemic phase. The Corporate Suite@19, a 30,000 sq.ft. of newly completed office space at Sunway Resort Hotel, will
Slide 23: Investor Relations (3Q2022)
INVESTOR RELATIONS (3Q2022) Empowering Businesses • Curating Experiences • Enriching Lives 23
Slide 24: Unit Price Performance from IPO to 3Q2022
Unit Price Performance from IPO to 3Q2022 Unit Price Performance of Sunway REIT versus Benchmarks (8 July 2010 – 30 September 2022) 120.0% 100.0% Sunway REIT 80.0% +55.6% 60.0% 40.0% FBM Top 100 Index +8.5% 20.0% FBM KLCI 0.0% +6.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Se
Slide 25: 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 26: Unitholders’ Composition (as at 30 September 2022)
Unitholders’ Composition (as at 30 September 2022) Foreign Retail 8.4% 6.8% Sunway Berhad 40.9% Institutions & Corporates 52.3% Domestic 91.6% September 2022 June 2022 Q-o-Q Change No of unitholders 29,543 29,116 +427 (+1.5%) Retail unitholders 6.8% 6.6% +0.2% Foreign unitholders 8.4% 8.6% -0.2% Sun
Slide 27: Analysts Recommendation (as at September 2022)
Analysts Recommendation (as at 30 September 2022) 21.5 Average Consensus 20.1 Target Price = RM1.60 14.1 12.8 12.1 11.4 8.1 7.4 7.4 7.4 4.0 1.81 1.79 1.70 1.68 1.67 1.61 1.60 1.52 2.0 1.66 1.60 1.60 1.55 1.51 1.3 1.50 1.46 1.38 0.7 (2.0) (7.4) TA Research CLSA UOB Kay Hian SJ Securities AmInvestment
Slide 28: Comparative Yields for Various Assets (as at 30 September 2022)
Comparative Yields for Various Assets (as at 30 September 2022) 8.0% 7.0% 6.75%2 6.07%1 6.10%5 6.0% 5.0% 4.41%3 4.0% 3.10%4 3.0% 2.75%6 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 FY2022 DPU of 8.50 sen and unit
Slide 29: Appendix I: Property Performance (YTD 3Q2022 YoY Analysis)
APPENDIX I: PROPERTY PERFORMANCE (YTD 3Q2022 YoY Analysis) Empowering Businesses • Curating Experiences • Enriching Lives 29
Slide 30: Average Occupancy Rate (YTD 3Q2022) – Retail
Average Occupancy Rate (YTD 3Q2022) RETAIL 100% 100% 99% 97% 97% 96% 96% -6% 93% -1% 93% 92% S U N W AY S U N W AY SU N C ITY IPOH S U N W AY R E T AI L S E G ME N T P YR AMI D MAL L C AR N I VAL MAL L H YP E R MAR K E T P U T R A MAL L YTD 3Q2022 YTD 3Q2021 The Retail segment recorded a stabl
Slide 31: Projected Lease Expiry Schedule – Retail
Projected Lease Expiry Schedule RETAIL WALE = 1.1 year * Sunway Pyramid Mall Sunway Carnival Mall SunCity Ipoh Sunway Putra Mall Based on the total net lettable Based on the total NLA of Hypermarket Based on the total NLA of area (NLA) of 1,404,081 sq. ft. 389,973 sq. ft. due for renewal Occupied by
Slide 32: Average Occupancy Rate (YTD 3Q2022) – Hotel
Average Occupancy Rate (YTD 3Q2022) HOTEL WALE = 7.5 years 39% 23% 47% 56% 28% 57% 55% 27% 53% 50% 45%* 19% 41% 34% 25% 22% 23% 17% 8% N/A S U N W AY S U N W AY S U N W AY S U N W AY H O T E L S U N W AY P U T R A S U N W AY H O T E L H OTEL R ESOR T H OTEL P YR AMI D L AG O O N H O T E L S E B E R
Slide 33: Average Occupancy Rate (YTD 3Q2022) – Office
Average Occupancy Rate (YTD 3Q2022) OFFICE 1% -3% 100% 100% 98% 97% 94% 97% 4% 87% 84% 84% 83% -7% 33% 26% ME NAR A S UNW AY S UNW AY W IS MA T HE O F F IC E S UNW AY TOW ER P UT R A S UNW AY P INNAC L E S E GME NT TO W ER S UNW AY YTD 3Q2022 YTD 3Q2021 The Office segment recorded a stable occup
Slide 34: Projected Lease Expiry Schedule – Office
Projected Lease Expiry Schedule OFFICE WALE = 1.27 years Menara Sunway Sunway Putra Wisma The Pinnacle Sunway Tower Tower Sunway Sunway Based on the total NLA Based on the total Based on the total Based on the total Based on the total NLA of 34,024 sq. ft. due NLA of 43,058 sq. ft. NLA of 112,144 sq
Slide 35: 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 36: Thank You
Thank You Empowering Businesses • Curating Experiences • Enriching Lives 36
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