Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — 3Q FY2014 Earnings Presentation
51 slides from Sunway Real Estate Investment Trust's earnings presentation, Apr 29, 2014
Slide 1: Sunway REIT Financial Results 3rd Quarter Ended 31 March 2014
Sunway REIT Financial Results 3rd Quarter Ended 31 March 2014 (FYE 30 June 2014) Announcement Date: 29 April 2014
Slide 2: Disclaimer
Disclaimer This presentation may contain certain forward looking statements due to a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions; interest rate trends; cost of capital and capital avail
Slide 3: Table of Contents
Table of Contents 1. Financial Highlights 2. 3Q 2014 Financial Results 3. 3Q 2014 Portfolio Performance 4. 3Q 2014 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: Distribution Details
Distribution Details Dividend Distribution Details Distribution Period 1 January 2014 - 31 March 2014 1 2.10 1 Distribution per Unit (DPU) (sen) Notice of Entitlement 29 April 2014 Ex-Dividend Date 14 May 2014 Book Closure Date 16 May 2014 Payment Date 29 May 2014 1 Proposed income distribution for
Slide 6: Financial Highlights
Financial Highlights Highlights 3Q 2014 3Q 2013 Change % No. of Properties 12 12 0.0% Property Value (RM'billion) 5.253 4.970 5.7% No. of Units in Circulation 2,926,332,700 2,917,365,500 0.3% Unit Price as at 31 Mar (RM) 1.36 1.52 -10.5% Market Capitalisation (RM'billion) 3.980 4.434 -10.3% Net Asse
Slide 7: Financial Highlights (Cont'd)
Financial Highlights (Cont’d) Gross Revenue Net Property Income 350.0 250.0 2 242.1 1 318.6 230.7 312.0 1.2% 1.5% 300.0 200.0 250.0 150.0 200.0 150.0 100.0 84.4 80.6 79.7 100.2 99.8 110.3 105.8 108.1 106.4 77.1 78.1 72.9 100.0 50.0 50.0 - - 1Q 2Q 3Q YTD 1Q 2Q 3Q YTD 2014 2013 2014 2013 1 Gross reven
Slide 8: Financial Highlights (Cont'd)
Financial Highlights (Cont’d) Income Before Taxation (Realised) DPU 200.0 175.9 7.00 1 5.9% 1.9% 6.33 6.28 163.3 6.00 150.0 5.00 4.00 100.0 3.00 62.0 58.5 2.23 55.4 56.1 55.2 2.00 2.19 2.10 52.0 2.03 2.06 50.0 2.00 1.00 - - 1Q 2Q 3Q YTD 1Q 2Q 3Q YTD 2014 2013 2014 2013 1 Income Before Taxation (Real
Slide 9: 2. 3Q 2014 Financial Results
2. 3Q 2014 Financial Results Driving values through sustainable growth 9
Slide 10: Statement of Comprehensive Income – Consolidated
Statement of Comprehensive Income – Consolidated 3Q 2014 3Q 2013 Change YTD 2014 YTD 2013 Change RM'000 RM'000 % RM'000 RM'000 % Gross revenue 108,082 106,448 1.5% 318,571 312,040 2.1% 1 Less : Property operating expenses (27,459) (26,779) -2.5% (76,417) (81,368) 6.1% Net property income 80,623 79,6
Slide 11: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 31.03.14 30.06.13 RM'000 RM'000 ASSETS Non-current assets Plant and equipment 2,217 1,283 Investment properties 5,252,712 5,184,000 Derivative financial instrument 1 - 7,540 5,254,929 5,192,823 Current assets Receivables, deposits and prepayments 18,887
Slide 12: Debt Profile
Debt Profile Facility Limit RM'mil RM'mil Loan Maturity Profile (RM'mil) Term Loan 310.8 326.8 1 450.0 Commercial Papers/Revolving 400.0 Loans 2 500.0 402.0 350.0 Unrated MTNs 1,000.0 1,000.0 300.0 Total Gross Borrowings 1,728.8 250.0 Discount on Commercial Papers - 200.0 402.0 400.0 400.0 Total Bor
Slide 13: 3. 3Q 2014 Portfolio Performance
3. 3Q 2014 Portfolio Performance Driving values through sustainable growth 13
Slide 14: 3Q 2014 Revenue Contribution
3Q 2014 Revenue Contribution 3Q 2014 (RM'mil) 108.1 3Q 2013 (RM'mil) 106.4 Retail Hotel Office Others 80.0 70.0 66.7 1 60.8 60.0 50.0 40.0 30.0 20.0 2 9.6 8.5 4 7.9 7.1 4 10.0 3 5.9 5.0 4.7 5 6 4.5 4.3 3.8 7 3.9 2.3 2.1 4.9 4.7 1.1 1.1 0.1 1.1 0.7 1.1 2.6 - Sunway Sunway SCI Sunway Sunway Resort Pyr
Slide 15: YTD 3Q 2014 Revenue Contribution
YTD 3Q 2014 Revenue Contribution YTD 3Q 2014 (RM'mil) 318.6 YTD 3Q 2013 (RM'mil) 312.0 Retail Hotel Office Others 250.0 1 200.0 191.7 179.1 150.0 100.0 50.0 1 3 27.1 23.9 25.6 24.9 3 18.7 4 5 6 2 15.7 16.2 13.1 12.6 12.1 11.7 14.4 3.4 3.4 0.5 3.4 1.7 4.6 8.6 7.0 6.4 4.8 - Sunway Sunway SCI Sunway Su
Slide 16: 3Q 2014 Revenue Contribution
3Q 2014 Revenue Contribution By sector Others By property Office 4.5% 9.8% Sunway Medical Sunway Centre Hotel Putra Tower Sunway Tower 4.5% 3.5% 2.1% 14.0% Menara Sunway 4.2% Sunway Putra Hotel Retail 1.0% 71.7% Sunway Hotel Seberang Jaya Pyramid 1.0% Tower Hotel 4.6% Sunway Resort Hotel Sunway & Sp
Slide 17: YTD 3Q 2014 Revenue Contribution
YTD 3Q 2014 Revenue Contribution By sector Others By property Office 4.5% 10.1% Sunway Medical Sunway Centre Putra Tower Hotel Sunway Tower 4.5% 2.2% 15.5% 3.8% Menara Sunway Retail 4.1% 69.9% Sunway Putra Hotel 1.4% Sunway Hotel Seberang Jaya Pyramid 1.1% Tower Hotel 4.9% Sunway Resort Hotel & Spa
Slide 18: 3Q 2014 NPI Contribution
3Q 2014 NPI Contribution NPI Margin 3Q 2014 (RM'mil) 80.6 74.6% 3Q 2013 (RM'mil) 79.7 74.9% Retail Hotel Office Others 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 SCI Sunway Pyramid Hotel Sunway Menara Sunway Sunway Resort Hotel Medical Pyramid Carnival Hyp
Slide 19: YTD 3Q 2014 NPI Contribution
YTD 3Q 2014 NPI Contribution NPI Margin YTD 3Q 2014 (RM'mil) 242.1 76.0% YTD 3Q 2013 (RM'mil) 230.7 73.9% Retail Hotel Office Others 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 - (20.0) Sunway Sunway Hotel Sunway Sunway Sunway SCI Sunway Pyramid Sunway Menara Sunway Sunway Resort Hotel Seberang Medi
Slide 20: 3Q 2014 NPI Contribution
3Q 2014 NPI Contribution By sector Others By property Office 6.1% Sunway Sunway Medical Centre 8.7% Putra Tower Sunway Tower 1.7% 6.0% 2.9% Hotel Menara Sunway 17.1% 3.9% Sunway Putra Hotel Retail 0.4% 68.1% Sunway Hotel Pyramid Seberang Jaya Tower Hotel 1.2% 6.0% Sunway Resort Hotel & Spa 9.3% Sunw
Slide 21: YTD 3Q 2014 NPI Contribution
YTD 3Q 2014 NPI Contribution By sector Others By property Office 5.9% Sunway Sunway Medical 9.0% Putra Tower Centre Sunway Tower 1.6% 5.9% 3.3% Hotel Menara Sunway 19.2% 3.9% Retail Sunway 65.9% Putra Hotel 1.3% Sunway Hotel Pyramid Seberang Jaya Tower Hotel 1.3% 6.3% Sunway Pyramid Sunway Resort Ho
Slide 22: Resilient Income Stream
RESILIENT INCOME STREAM Well spread-out lease expiry profile and diverse tenant base WALE 1 as at 31 March 2014– 2.6 years Top 10 tenants comprise approximately 15.6% Projected tenancy expiry of portfolio 2 Top 10 tenants 70.0% Total Top 10 Tenants 15.6% 64.4% Ranhill Worley Parsons Sdn Bhd 3.7% 60.
Slide 23: 4. 3Q 2014 Property Performance
4. 3Q 2014 Property Performance Driving values through sustainable growth 23
Slide 24: Retail Properties: Sunway Pyramid Shopping Mall
RETAIL PROPERTIES SUNWAY PYRAMID SHOPPING MALL Historical occupancy rates Projected lease expiry schedule Average occupancy rate 50% 45% 40% 100.0% 99.3% 98.8% 98.5% 98.6% 98.3% 97.9% 97.8% 35% 95.0% 30% 25% 90.0% 20% 15% 85.0% 10% 80.0% 5% 3.2% 23.4% 21.1% 48.5% 2.0% 0% 75.0% FY2014 FY2015 FY2016 F
Slide 25: Retail Properties: Sunway Pyramid Shopping Mall (Cont'd)
RETAIL PROPERTIES SUNWAY PYRAMID SHOPPING MALL (Cont’d) Tenant mix Top 10 tenants Total Top 10 Tenants 12.3% Aeon Co (M) Bhd 2.4% 21.8% Parkson Corporation Sdn Bhd 1.8% 38.1% TGV Cinemas Sdn Bhd 1.5% 6.4% Sunway Resort Hotel Sdn Bhd 1.2% (Convention Centre) 4.3% Padini Dot Com Sdn Bhd 1.0% 5.2% 4.7%
Slide 26: Retail Properties: Sunway Carnival Shopping Mall
RETAIL PROPERTIES SUNWAY CARNIVAL SHOPPING MALL Historical occupancy rates Projected lease expiry schedule Average occupancy rate 40% 35% 100.0% 30% 97.4% 96.5% 25% 95.0% 93.6% 92.4% 91.8% 91.2% 20% 90.6% 90.0% 15% 85.0% 10% 5% 80.0% 11.0% 17.2% 24.4% 38.2% 0.3% 0% 75.0% FY2014 FY2015 FY2016 FY2017
Slide 27: Retail Properties: Sunway Carnival Shopping Mall (Cont'd)
RETAIL PROPERTIES SUNWAY CARNIVAL SHOPPING MALL (Cont’d) Tenant mix Top 10 tenants Total Top 10 Tenants 23.7% Parkson Corporation Sdn Bhd 10.5% 23.5% 26.6% Sunway Carnival Convention Centre 2.6% Apex Pal (M) Sdn Bhd 1.5% 9.8% CYC Sega Leisure World (M) Sdn Bhd 1.5% Golden Screen Cinema 1.4% 5.0% 19.
Slide 28: Retail Properties: Suncity Ipoh Hypermarket
RETAIL PROPERTIES SUNCITY IPOH HYPERMARKET Historical occupancy rates Average occupancy rate 100% 100% 100% 100% 100% 100% 100% 100% 95% 90% 85% 80% 75% Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 YTD 3Q YTD 3Q 2014 2013 Suncity Ipoh Hypermarket is tenanted to a single tenant, a major hypermarket and retaile
Slide 29: Hospitality Properties: Sunway Resort Hotel & Spa
HOSPITALITY PROPERTIES SUNWAY RESORT HOTEL & SPA Historical occupancy rate (Q on Q) Average occupancy rate (%) Average occupancy rate 85.0% 83.5% 85.0% 82.1% 79.3% 80.0% 76.0% 80.0% 75.0% 71.3% 69.4% 70.0% 66.7% 75.0% 72.4% 72.7% 71.9% 65.0% 61.0% 70.8% 69.5% 60.0% 70.0% 55.0% 65.0% 50.0% Jun-09 Jun
Slide 30: Hospitality Properties: Pyramid Tower Hotel
HOSPITALITY PROPERTIES PYRAMID TOWER HOTEL Historical occupancy rate (Q on Q) Average occupancy rate (%) Average occupancy rate 90.0% 88.5% 83.1% 82.4% 85.0% 81.3% 80.9% 78.8% 78.7% 80.0% 85.0% 82.6% 82.8% 75.0% 80.0% 78.1% 77.9% 70.0% 76.0% 75.8% 65.0% 75.0% 60.0% 70.0% Jun-09 Jun-10 Jun-11 Jun-12
Slide 31: Hospitality Properties: Sunway Hotel Seberang Jaya
HOSPITALITY PROPERTIES SUNWAY HOTEL SEBERANG JAYA Historical occupancy rate (Q on Q) Average occupancy rate (%) Average occupancy rate 80.0% 90.0% 78.8% 80.0% 77.0% 80.0% 70.0% 68.7% 70.2% 65.8% 70.0% 63.2% 63.2% 60.0% 51.6% 60.0% 57.8% 50.0% 49.5% 50.0% 40.0% 46.3% 44.8% Jun-09 Jun-10 Jun-11 Jun-12
Slide 32: Hospitality Properties: Sunway Putra Hotel
HOSPITALITY PROPERTIES SUNWAY PUTRA HOTEL Historical occupancy rate (Q on Q) Average occupancy rate (%) Average occupancy rate 80.0% 70.0% 60.2% 59.0% 60.0% 70.5% 70.0% 50.0% 43.9% 40.0% 60.0% 57.9% 30.0% 55.4% 57.0% 20.0% 51.6% 10.0% 50.0% 0.0% 43.8% Jun-12 * Jun-13 YTD 3Q 2014 40.0% 36.1% Avg occu
Slide 33: Office Properties: Menara Sunway
OFFICE PROPERTIES MENARA SUNWAY Historical occupancy rates Projected lease expiry schedule Average occupancy rate 70% 60% 99.7% 100.0% 98.5% 98.9% 98.8% 99.0% 97.3% 97.7% 50% 95.0% 40% 90.0% 30% 20% 85.0% 10% 80.0% 2.6% 17.7% 67.6% 11.2% 0% FY2014 FY2015 FY2016 FY2017 75.0% Jun-09 Jun-10 Jun-11 Jun-
Slide 34: Office Properties: Menara Sunway (Cont'd)
OFFICE PROPERTIES MENARA SUNWAY (Cont’d) Tenant mix Top 10 tenants 1.8% Total Top 10 Tenants 1.8% 80.0% 7.9% 2.9% Sunway Management Sdn Bhd 15.3% 2.9% 27.7% Sunway Integrated Properties 14.8% 8.3% Maxis Mobile Sdn Bhd 13.5% Sunway Construction Sdn Bhd 9.3% 12.1% Sunway Shared Services Sdn Bhd 8.5% 2
Slide 35: Office Properties: Sunway Tower
OFFICE PROPERTIES SUNWAY TOWER Historical occupancy rates Projected lease expiry schedule Average occupancy rate 90% 80% 70% 100.0% 97.0% 95.6% 95.0% 93.5% 60% 90.0% 50% 85.0% 85.0% 83.0% 40% 81.8% 80.0% 30% 75.0% 20% 70.0% 10% 67.1% 3.8% 72.5% 2.6% 1.6% 65.0% 0% FY2014 FY2015 FY2016 After 60.0% FY2
Slide 36: Office Properties: Sunway Tower (Cont'd)
OFFICE PROPERTIES SUNWAY TOWER (Cont’d) Tenant mix Top 10 tenants 1.8% 4.2% 2.2% 3.0% Total Top 10 Tenants 99.4% 3.1% Ranhill Worley Parsons Sdn Bhd 80.7% Intecsea Sdn Bhd 5.1% Royal Danish Embassy 3.1% ACCA Malaysia Sdn Bhd 3.0% WRP Asia Pacific Sdn Bhd 2.2% 85.7% Zhuojian Associates S/B 1.8% RI1 I
Slide 37: Office Properties: Sunway Putra Tower
OFFICE PROPERTIES SUNWAY PUTRA TOWER Historical occupancy rates Projected lease expiry schedule Average occupancy rate 70% 60% 100.0% 98.7% 50% 95.0% 40% 90.0% 85.2% 30% 85.0% 80.0% 78.0% 78.1% 20% 75.0% 73.9% 10% 70.0% 64.4% 1.7% 5.2% 0% 65.0% FY2014 FY2015 FY2016 Jun-11 Jun-12 Jun-13 YTD 3Q YTD 3Q
Slide 38: Office Properties: Sunway Putra Tower (Cont'd)
OFFICE PROPERTIES SUNWAY PUTRA TOWER (Cont’d) Tenant mix Top 10 tenants 1.7% 0.8% 0.8% Total Top 10 Tenants 99.2% 2.0% 3.7% Suruhanjaya Koperasi Malaysia 66.7% Kementerian Perdagangan Dalam Negeri Koperasi Dan Kepenggunaan Malaysia 18.7% Suruhanjaya Syarikat Malaysia 4.8% Raffcomm Sdn Bhd 2.1% Chini
Slide 39: 5. Market Outlook
5. Market Outlook Driving values through sustainable growth 39
Slide 40: General Outlook
General Outlook o The Malaysian economy expanded by 5.1% in 4Q CY2013 (3QCY 2013: 5.0%) supported by domestic demand (4Q CY2013: 6.4%) and continuous improvement in exports growth at 2.9% (3Q CY 2013: 1.7%). Economy for the full year grew 4.7% compared to 5.6% in 2012. o Bank Negara Malaysia (“BNM”)
Slide 41: Retail
Retail o Retail Group Malaysia (“RGM”) expects 1Q CY2014 retail sale to rise by 4.8% compared to 7.5% in 1Q CY2013 despite the Chinese New Year celebrations. However, it was better over the previous year’s Christmas quarter which saw a 3.9% increase in sales. For the full year, RGM is maintaining it
Slide 42: Retail (Cont'd)
Retail (Cont’d) o Sunway Pyramid Shopping Mall continued to attract renown international tenants into the mall such as Superdry and Factorie by Cotton On. There will be ongoing efforts to continuously refresh and enhance the tenancy mix in anticipation of the increasing competition in the retail sec
Slide 43: Hotel
Hotel o Tourist arrivals into Malaysia in CY2013 was 25.72 million people with corresponding tourist receipts of RM65.44 billion, reflecting year-on-year (“y-o-y”) growth of 2.7% and 7.98% respectively (CY2012: 25.03 million arrivals with tourist receipts of RM60.6 billion). Tourism activities is li
Slide 44: Hotel (Cont'd)
Hotel (Cont’d) o Sunway Resort Hotel & Spa achieved higher average occupancy rate of 82.1% in 3Q2014 compared to 69.5% in 3Q2013 whilst Pyramid Tower Hotel achieved higher average occupancy rate of 82.8% in 3Q2014 compared to 75.8% in 3Q2013. The improvement was mainly due to the recovery in busines
Slide 45: Office
Office o Office stock in Klang Valley stood at 92.7 million sq ft in CY2013 with office supply increased by 3.6 million sq ft during the year. Net absorption was 3.3 million sq ft or 20% higher compared to CY2012. Vacancy rates decrease in CY2013 to 14% from 16.2% in CY2012. o An estimated of 6.6 mi
Slide 46: Office (cont'd)
Office (cont’d) o In view of the above coupled with rising operation costs, the Manager expects income contribution from the office segment to decline marginally in FY2014 compared to FY2013 . Driving values through sustainable growth
Slide 47: Unit Price Performance (IPO to March 2014)
Unit Price Performance (IPO to 31 March 2014) Unit Price Performance of Sunway REIT versus Performance Statistics* Benchmarks (8 July 2010 – 31 March 2014) 90.0% TR/GPR/APREA Price : RM0.90 Composite REIT (as at 8/7/2010) 80.0% Index Malaysia 63.3% Closing Price : RM1.36 70.0% (as at 31/3/2014) 60.0
Slide 48: Unit Price Performance (YTD 3Q2014)
Unit Price Performance (YTD 3Q2014) Unit Price Performance of Sunway REIT versus Performance Statistics* Benchmarks (30 June 2013 – 31 March 2014) 10.0% Price : RM1.54 (as at 30/6/2013) FBM KLCI 4.3% 5.0% Closing Price : RM1.36 (as at 31/3/2014) Highest Price : RM1.56 0.0% Lowest Price : RM1.22 -5.0
Slide 49: Unitholders' Composition (as at 31 March 2014)
Unitholders’ Composition (as at 31 March 2014) Individual 9.8% Foreign 19.4% Sunway Berhad 34.5% Domestic 80.6% Institutions 55.7% o Total number of unitholders has increased from 9,820 (as at 31 December 2013) to 9,825 (as at 31 March 2014). o Retail participation has increased from 9.6% as at 31 D
Slide 50: Comparative Yields for Various Assets
Comparative Yields for Various Assets 8.0% 6.99% 2 7.0% 6.35% 4 6.16% 1 6.0% 5.0% 4.11% 2 4.0% 3.15% 3 3.00% 3.0% 2.0% 1.0% 0.0% Sunway REIT M-REIT 10-Year MGS Fixed Deposit EPF Yield OPR Note: 1. Distribution yield based on annualised DPU of 8.38 sen for the period 1 July 2013 to 31 March 2014 2. I
Slide 51: Thank You
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