Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — Q1 2025 Earnings Presentation
42 slides from Sunway Real Estate Investment Trust's earnings presentation, May 14, 2025
Slide 1: Financial Results First Quarter Ended 31 March 2025
FINANCIAL RESULTS First Quarter Ended 31 March 2025 (Financial Year Ending 31 December 2025) 14 May 2025 0
Slide 2: Table of Contents
Table of Contents 1. Financial Highlights (Q1 2025) 2. Financial Results (Q1 2025) 3. Segmental Financial Results (Q1 2025) 4. Property Development Activities (Q1 2025) 5. Market Outlook (Q1 2025) 6. Investor Relations (Q1 2025) Appendix I – Property Performance Empowering Businesses • Curating Expe
Slide 3: Financial Highlights (Q1 2025)
FINANCIAL HIGHLIGHTS (Q1 2025) Empowering Businesses • Curating Experiences • Enriching Lives 2
Slide 4: Financial Highlights – Q1 2025 vs Q1 2024
Financial Highlights – Q1 2025 vs Q1 2024 Highlights Q1 2025 Q1 2024 No. of Properties 28 19 Property Value (RM'billion) 10.607 9.016 Units in Circulation (Units) 3,424,807,700 3,424,807,700 Unit Price as at 31 March 2025/2024 (RM) 1.82 1.52 Market Capitalisation (RM'billion) 6.233 5.206 Net Asset V
Slide 5: Financial Highlights Q1 2025 vs Q1 2024 (Cont'd)
Financial Highlights Q1 2025 vs Q1 2024 (Cont’d) Reported in RM’000 Q1 YoY Q1 2025 vs Q1 2024 Variance The higher Revenue was primarily contributed from the properties acquired in 2024 namely the * six Sunway REIT Hypermarkets, Sunway 163 Mall, Sunway REIT Industrial – Prai, Sunway 22.6% or Kluang M
Slide 6: Financial Results (Q1 2025)
FINANCIAL RESULTS (Q1 2025) Empowering Businesses • Curating Experiences • Enriching Lives 5
Slide 7: Statement of Comprehensive Income – Consolidated
Statement of Comprehensive Income – Consolidated Q1 2025 Q1 2024 Change RM'000 RM'000 % Revenue 218,862 178,589 22.6% Property operating expenses (61,672) (48,046) 28.4% 1 Net property income 157,190 130,543 20.4% Interest income 3,032 6,284 2 -51.8% Other income 83 48 72.9% Manager's fees (12,706)
Slide 8: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 31 Mar 2025 31 Dec 2024 31 Mar 2025 31 Dec 2024 (Unaudited) (Audited) (Unaudited) (Audited) RM'000 RM'000 RM'000 RM'000 Assets Number of units in circulation ('000) 3,424,808 3,424,808 Non-current assets Investment properties 10,537,271 1 10,384,928 Net
Slide 9: Statement of Cash Flows – Consolidated
Statement of Cash Flows – Consolidated Cumulative Quarter ended 31.03.2025 31.03.2024 RM'000 RM'000 Cash flows from operating activities Cash receipts from customers 239,738 185,775 Refundable security deposits from customers 12,904 2,553 Cash paid for operating expenses (91,124) (64,522) Net cash f
Slide 10: Financing Profile as at 31 March 2025
Financing Profile as at 31 March 2025 1 1 2 2 1 Amounts outstanding for revolving loan and revolving credit (drawn in USD) facilities include unrealised foreign currency translation gain of RM21 million. The loans are fully hedged with 6-month and 1-year cross currency swap contracts. 2 Unrated MTNs
Slide 11: Financing Profile as at 31 March 2025 (Cont'd)
Financing Profile as at 31 March 2025 (Cont’d) Empowering Businesses • Curating Experiences • Enriching Lives 10
Slide 12: Segmental Financial Results (Q1 2025)
SEGMENTAL FINANCIAL RESULTS (Q1 2025) Empowering Businesses • Curating Experiences • Enriching Lives 11
Slide 13: Retail Segment: Q1 2025
Retail Segment : Q1 2025 Retail Revenue Retail NPI 33% RM 168.4 million (Q1 2025) 34% RM 116.8 million (Q1 2025) vs RM 126.3 million (Q1 2024) vs RM 86.9 million (Q1 2024) RM 42.0 million Variance RM 29.9 million Variance Revenue of Retail segment for Q1 2025 recorded a strong improvement primarily
Slide 14: Retail Segment: Q1 2025 (Cont'd)
Retail Segment : Q1 2025 (Cont’d) Regional Malls Neighbourhood Super-Regional Malls Big-Box Retail Malls Local & Population within 50km Population within 20km Population within 10km Target market & international tourists net lettable area NLA > 1 million sq.ft. NLA > 500,000 sq.ft. NLA > 250,000 sq.
Slide 15: Hotel Segment: Q1 2025
Hotel Segment : Q1 2025 Hotel Revenue Hotel NPI 0.275 RM 16.1 million (Q1 2025) RM 15.0 million (Q1 2025) -16% vs RM 19.1 million (Q1 2024) -17% vs RM 18.1 million (Q1 2024) RM -3.0 million Variance RM -3.2 million Variance Hotel segment recorded lower revenue and NPI due to softer occupancy in Q1 2
Slide 16: Office Segment: Q1 2025
Office Segment : Q1 2025 Office Revenue Office NPI -4% RM 20.4 million (Q1 2025) -11% RM 12.4 million (Q1 2025) vs RM 21.3 million (Q1 2024) vs RM 13.9 million (Q1 2024) RM -0.9 million Variance RM -1.5 million Variance Revenue for Office segment decreased in Q1 2025 primarily due to lower occupancy
Slide 17: Services Segment: Q1 2025
Services Segment : Q1 2025 Services Revenue Services NPI 2% RM 9.8 million (Q1 2025) 2% RM 9.8 million (Q1 2025) vs RM 9.6 million (Q1 2024) vs RM 9.6 million (Q1 2024) RM 0.2 million Variance RM 0.2 million Variance The revenue and NPI for Services segment in Q1 2025 increased by 2.3% in accordance
Slide 18: Industrial & Others Segment: Q1 2025
Industrial & Others Segment : Q1 2025 Industrial & Others Revenue Industrial & Others NPI 83% RM 4.2 million (Q1 2025) 61% RM 3.2 million (Q1 2025) vs RM 2.3 million (Q1 2024) vs RM 2.0 million (Q1 2024) RM 1.9 million Variance RM 1.2 million Variance Industrial & Others segment recorded a sharp inc
Slide 19: Key Performance Indicators Q1 2025 / YoY %
Key Performance Indicators Q1 2025 / YoY % RETAIL 1 HOTEL 2 OFFICE 3 Occupancy Occupancy - 5% Occupancy Average + 4% Q1 2025: 99% gross rent Q1 2024: 95% Q1 2025: 55% - 4% FY2024: 98% Q1 2024: 60% Q1 2025: 82% - 1% FY2024: 65% Q1 2024: 86% FY2024: 83% Average Average gross rent room rate - 1% = INDU
Slide 20: Property Development Activities (Q1 2025)
PROPERTY DEVELOPMENT ACTIVITIES (Q1 2025) Empowering Businesses • Curating Experiences • Enriching Lives 19
Slide 21: Property Development Activities
Property Development Activities Sunway Pier Development Estimated total property development cost RM400 million # Cumulative cost incurred from initiation to Q1 2025 RM52 million Expected completion Q4 2027 NLA (sq. ft.) 358,653 Property development activities against total asset value* 3.7% # Estim
Slide 22: Market Outlook (Q1 2025)
MARKET OUTLOOK (Q1 2025) Empowering Businesses • Curating Experiences • Enriching Lives 21
Slide 23: General Outlook – Key Economic Indicators
General Outlook – Key Economic Indicators Indicator 2025 (F) Q1 2025 2024 2023 2022 2021 Gross Domestic Product 4.5% - 5.5% 4 4.4% 5 5.1% 3.7% 8.7% 3.1% (GDP) (yoy) Consumer Price Index (CPI) 2.0% - 3.5% 4 1.5% 2 1.8% 2.5% 3.3% 2.5% (yoy) Overnight Policy Rate (OPR) 3.0% 3 3.0% 1 3.0% 3.0% 2.75% 1.7
Slide 24: General Outlook
General Outlook General Outlook On 9 April 2025, the United States (US) imposed reciprocal tariff on Malaysia and other countries globally which might pose potential downside risk to Malaysia and global GDP growth. The impending expansion of scope of sales and service tax (SST) and fuel subsidy rati
Slide 25: Segmental Outlook - Retail
Segmental Outlook - Retail Retail Segment (2024 Contribution : 73%) Retail Group Malaysia projects a 4.3% growth rate for 2025 as rising cost of living challenges persist compared to a forecast 3.8% growth rate in 2024, with the government expecting the national economy to expand between 4.5% and 5.
Slide 26: Segmental Outlook - Hotel
Segmental Outlook - Hotel Hotel Segment (2024 Contribution : 13%) Our hotel segment recorded lower occupancy in Q1 2025, partially due to the festive Ramadan period where there was a decrease in leisure and meetings, incentives, conferences and exhibitions (MICE) activities. While Tourism Malaysia h
Slide 27: Segmental Outlook - Office
Segmental Outlook - Office Office Segment (2024 Contribution: 11%) The office sector in Klang Valley is anticipated to see a continued increase in incoming supply of approximately 2.5 million sq.ft. and 2.3 million sq.ft. of net lettable area (NLA) in 2025 and 2026 respectively. Despite such challen
Slide 28: Segmental Outlook - Industrial
Segmental Outlook - Industrial Industrial & Others Segment (2024 Contribution: 6%) In line with the growing investments in Malaysia, demand for industrial properties is expected to remain strong. Under the New Industrial Master Plan 2030 (NIMP 2030) and the National Energy Transition Roadmap (NETR),
Slide 29: Investor Relations (Q1 2025)
INVESTOR RELATIONS (Q1 2025) Empowering Businesses • Curating Experiences • Enriching Lives 28
Slide 30: Unit Price Performance from IPO to Q1 2025
Unit Price Performance from IPO to Q1 2025 Unit Price Performance of Sunway REIT versus Benchmarks (8 July 2010 – 31 March 2025) Sunway REIT + 102.2% FBM Top 100 Index + 28.2% FBM KLCI +15.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Performance Statistics IPO to Q1
Slide 31: Unitholders' Composition (as at 31 March 2025)
Unitholders’ Composition (as at 31 March 2025) Foreign Retail 7.7% 7.5% Sunway Berhad 40.9% Institutions & Corporates 51.6% Domestic 92.3% March 2025 December 2024 Q-o-Q Change No. of unitholders 32,539 32,320 + 0.7% (+ 219) Retail unitholdings 7.5% 7.6% - 0.1% Foreign unitholdings 7.7% 7.6% + 0.1%
Slide 32: Analyst Recommendation (as at March 2025)
Analyst Recommendation (as at 31 March 2025) Target Price as at Upside / Downside to unit price as at 31 Mar 2025 (RM) 31 Mar 2025 (%) 17.0 16.5 15.9 15.9 15.4 13.7 13.7 13.7 12.6 12.1 11.5 9.3 4.4 2.13 2.12 2.11 2.11 2.10 2.07 2.07 2.07 2.05 2.04 2.03 1.99 1.90 1.85 1.6 1.80 (1.1) CLSA UOB Kay Hian
Slide 33: Comparative Yields for Various Assets (as at 31 March 2025)
Comparative Yields for Various Assets (as at 31 March 2025) 6.30%5 6.04%1 5.80%2 3.77%3 3.00%6 2.45%4 Sunway REIT M-REITs 10-Year MGS Fixed Deposit EPF Yield OPR Note: 1 Distribution yield is computed based on Consensus DPU of 11.00 sen and unit price of RM1.82 as of 31 March 2025 (Source: Sunway RE
Slide 34: Appendix I: Property Performance (YTD Q1 2025 YoY Analysis)
APPENDIX I: PROPERTY PERFORMANCE (YTD Q1 2025 YoY Analysis) Empowering Businesses • Curating Experiences • Enriching Lives 33
Slide 35: Average Occupancy Rate (YTD Q1 2025) Retail
Average Occupancy Rate (YTD Q1 2025) RETAIL N/A N/A N/A Retail segment's average occupancy rate improved to 99% in YTD Q1 2025, driven by full occupancy at Sunway REIT's hypermarkets and strong performance from newly acquired assets—Sunway 163 Mall and Sunway Kluang Mall. This was further boosted by
Slide 36: Projected Lease Expiry Schedule Retail
Projected Lease Expiry Schedule RETAIL WALE = 1.9 years Sunway Sunway Carnival Sunway Putra Sunway 163 Sunway Kluang Pyramid Mall Mall Mall Mall Mall Based on the total Based on the total Based on the total Based on the total Based on the total NLA of 820,201 NLA of 337,360 sq. NLA of 165,631 sq. NL
Slide 37: Average Occupancy Rate (YTD Q1 2025) Hotel
Average Occupancy Rate (YTD Q1 2025) HOTEL WALE = 5.5 years Hotel segment’s average occupancy rate declined to 55% in YTD Q1 2025, primarily impacted by softer demand from leisure and MICE segments during Ramadan month. Empowering Businesses • Curating Experiences • Enriching Lives 36
Slide 38: Average Occupancy Rate (YTD Q1 2025) Office
Average Occupancy Rate (YTD Q1 2025) OFFICE The average occupancy rate for Office segment dropped to 82% in YTD Q1 2025, primarily due to the termination of tenants at Sunway Putra Tower. Empowering Businesses • Curating Experiences • Enriching Lives 37
Slide 39: Projected Lease Expiry Schedule Office
Projected Lease Expiry Schedule OFFICE WALE = 1.7 years Menara Sunway Sunway Putra Wisma Sunway Sunway Tower Tower Sunway Pinnacle Based on total NLA Based on total NLA of Based on total NLA of Based on total NLA of Based on total NLA of of 26,471 sq. ft. 91,899 sq. ft. due for 75,211 sq. ft. due fo
Slide 40: Average Occupancy Rate (YTD Q1 2025) Services, Industrial & Others
Average Occupancy Rate (YTD Q1 2025) SERVICES, INDUSTRIAL & OTHERS Services WALE = 23.7 years Industrial WALE = 5.5 years N/A Sunway REIT Industrial – Petaling Jaya 1 is expected to achieve the occupancy rate of more than 75% based on committed tenancies by end-2025. The three-year lease term for Su
Slide 41: Thank You
Thank You Empowering Businesses • Curating Experiences • Enriching Lives 40
Slide 42: 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
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