Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — Q3 2024 Earnings Presentation
38 slides from Sunway Real Estate Investment Trust's earnings presentation, Nov 14, 2024
Slide 1: Financial Results 3rd Quarter ended 30 September 2024
FINANCIAL RESULTS 3rd Quarter ended 30 September 2024 (FYE 31 December 2024) Date: 14 November 2024 0
Slide 2: Table of Contents
Table of Contents 1. Financial Highlights (Q3 2024) 2. Financial Results (Q3 2024) 3. Segmental Financial Results (Q3 2024) 4. Market Outlook (Q3 2024) 5. Investor Relations (Q3 2024) Appendix I – Property Performance Empowering Businesses • Curating Experiences • Enriching Lives 1
Slide 3: Financial Highlights (Q3 2024)
FINANCIAL HIGHLIGHTS (Q3 2024) Empowering Businesses • Curating Experiences • Enriching Lives 2
Slide 4: Financial Highlights – Q3 2024 vs Q3 2023
Financial Highlights – Q3 2024 vs Q3 2023 Highlights Q3 2024 Q3 2023 No. of Properties 25 19 Property Value (RM'billion) 9.828 8.857 Units in Circulation (Units) 3,424,807,700 3,424,807,700 Unit Price as at 30 Sept 2024/2023 (RM) 1.70 1.46 Market Capitalisation (RM'billion) 5.822 5.000 Net Asset Val
Slide 5: Financial Highlights Q3 2024 vs Q3 2023 (QTD & YTD)
Financial Highlights Q3 2024 vs Q3 2023 (QTD & YTD) Reported in RM’000 Q3 YoY YTD Variance Variance YTD Q3 2024 vs YTD Q3 2023 4.0% The higher Revenue was mainly RM21.1m YTD 546,296 9.3% or contributed by the retail segment, RM16.3m partially offset by the absence of rental from Sunway Medical Centr
Slide 6: Financial Results (Q3 2024)
FINANCIAL RESULTS (Q3 2024) Empowering Businesses • Curating Experiences • Enriching Lives 5
Slide 7: Statement of Comprehensive Income – Consolidated
Statement of Comprehensive Income – Consolidated Q3 2024 Q3 2023 Change YTD 2024 YTD 2023 Change 1. Interest income for YTD Q3 2024 was RM'000 RM'000 % RM'000 RM'000 % higher compared to YTD Q3 2023 contributed by higher placement with Revenue 192,141 175,835 9.3% 546,296 525,168 4.0% financial inst
Slide 8: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 30 Sep 2024 31 Dec 2023 30 Sep 2024 31 Dec 2023 (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 Net Asset Value ('NAV') attributable to unitholde
Slide 9: Statement of Cash Flows – Consolidated
Statement of Cash Flows – Consolidated Cumulative Quarter ended 30.09.2024 30.09.2023 1 Net cash from operating activities for YTD Q3 2024 of RM390.5 million compared to NPI less trust expense of RM'000 RM'000 RM366.2 million mainly comprise of cash receipt from lessees Cash flows from operating act
Slide 10: Financing Profile as at 30 September 2024
Financing Profile as at 30 September 2024 Facility Limit Utilised Amount RM'mil RM'mil Revolving loan (USD) USD 75.0 mil 309.1 1 Revolving credit (USD) USD 70.0 mil 154.4 1 Commercial Paper 3,000.0 70.0 2 Unrated MTNs 10,000.0 840.0 Total Current 1,373.5 Revolving Loan (RM) 2,000.0 800.0 Rated MTNs
Slide 11: Financing Profile as at 30 September 2024 (Cont'd)
Financing Profile as at 30 September 2024 (Cont’d) RL MTN, RL (USD), RC (USD) MTN, Rated MTN MTN, MTN, CP Rated MTN MTN MTN MTN MTN MTN MTN RC (USD) MTN Empowering Businesses • Curating Experiences • Enriching Lives 10
Slide 12: Segmental Financial Results (Q3 2024)
SEGMENTAL FINANCIAL RESULTS (Q3 2024) Empowering Businesses • Curating Experiences • Enriching Lives 11
Slide 13: Retail Segment: Q3 2024
Retail Segment : Q3 2024 Retail Revenue Retail NPI 17% RM 130.6 million (Q3 2024) 12% RM 91.8 million (Q3 2024) vs RM 111.8 million (Q3 2023) vs RM 81.8 million (Q3 2023) RM 18.8 million Variance RM 10.0 million Variance The revenue of retail segment for Q3 2024 recorded a strong improvement compare
Slide 14: Retail Segment
Retail Segment 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.ft. NLA c. 250,000
Slide 15: Hotel Segment: Q3 2024
Hotel Segment : Q3 2024 Hotel Revenue Hotel NPI 0.275 RM 29.2 million (Q3 2024) RM 28.1 million (Q3 2024) 5% vs RM 27.9 million (Q3 2023) 5% vs RM 26.9 million (Q3 2023) RM 1.3 million Variance RM 1.2 million Variance The Hotel segment’s revenue and NPI recorded a healthy improvement of 5% attributa
Slide 16: Office Segment: Q3 2024
Office Segment : Q3 2024 Office Revenue Office NPI -1% RM 20.5 million (Q3 2024) 1% RM 12.9 million (Q3 2024) vs RM 20.7 million (Q3 2023) vs RM 12.8 million (Q3 2023) RM -0.2 million Variance RM 0.1 million Variance Revenue for the office segment recorded a slight decrease as Sunway Putra Tower rec
Slide 17: Services Segment: Q3 2024
Services Segment : Q3 2024 The revenue and NPI for services segment in Q3 2024 were lower by RM4.2 million or 30% due to the disposal of Sunway Medical Centre (Tower A & B) which was completed on 30 August 2023. Accordingly, rental contribution has since ceased. N/A Sunway university & college campu
Slide 18: Industrial & Others Segment: Q3 2024
Industrial & Others Segment : Q3 2024 The Industrial & Others segment recorded a sharp increase in revenue and NPI in Q3 2024, supported by an average occupancy rate of 32% for Sunway REIT Industrial – Petaling Jaya 1 in YTD Q3 2024. By mid 2025, the occupancy for Sunway REIT Industrial – Petaling J
Slide 19: Market Outlook (Q3 2024)
MARKET OUTLOOK (Q3 2024) Empowering Businesses • Curating Experiences • Enriching Lives 18
Slide 20: General Outlook – Key Economic Indicators
General Outlook – Key Economic Indicators Indicator 2025 (F) 2024 (F) Q3 2024 Q2 2024 Q1 2024 2023 2022 2021 Gross Domestic 4.5% - 5.5% 4 4.8% - 5.3% 4 5.3% 5 5.9% 4.2% 3.7% 8.7% 3.1% Product (GDP) (yoy) Consumer Price Index 2.0% - 3.5% 4 2.1% - 3.6% 4 1.9% 2 1.9% 1.7% 2.5% 3.3% 2.5% (CPI) (yoy) Ove
Slide 21: General Outlook
General Outlook General Outlook Malaysia started 2024 with stronger growth momentum. Advance estimates for Malaysia’s GDP grew by 5.3% in Q3 2024, following a robust 5.9% growth in Q2 2024. The Manager approaches the remaining year with optimism. The stable domestic political landscape will be posit
Slide 22: Segmental Outlook - Retail
Segmental Outlook - Retail Retail Segment The supply of retail malls in Malaysia will rise further in 2024. While representing new competition, these new retail malls could add depth and breadth to retail offerings and elevate Malaysia’s position as a retail destination. The evolution of the retail
Slide 23: Segmental Outlook - Hotel
Segmental Outlook - Hotel Hotel Segment Tourism Malaysia projects 2024 tourist arrival to surpass the 2019 pre-pandemic level of 26.1 million foreign visitors, particularly visitors from China and India following the improved flight connectivity and resumption of flights to Northeast Asia destinatio
Slide 24: Segmental Outlook - Office
Segmental Outlook - Office Office Segment The office sector in Malaysia is anticipated to see a continued increase in incoming supply in 2024. The overhang of vacant office space especially in Klang Valley will adversely affect rental growth prospects. However, Malaysia’s relatively cheap rental may
Slide 25: Investor Relations (Q3 2024)
INVESTOR RELATIONS (Q3 2024) Empowering Businesses • Curating Experiences • Enriching Lives 24
Slide 26: Unit Price Performance from IPO to Q3 2024
Unit Price Performance from IPO to Q3 2024 Unit Price Performance of Sunway REIT versus Benchmarks (8 July 2010 – 30 September 2024) Sunway REIT + 89.9% FBM Top 100 Index + 38.8% FBM KLCI + 25.3% Performance Statistics IPO to Q3 2024 YTD Q3 2024 Unit Price (08.07.10 / 31.12.23) : RM0.90 RM1.54 Closi
Slide 27: Unitholders' Composition (as at 30 September 2024)
Unitholders’ Composition (as at 30 September 2024) Foreign Retail 7.2% 7.9% Sunway Berhad 40.9% Institutions & Corporates 51.2% Domestic 92.8% September 2024 June 2024 Q-o-Q Change No. of unitholders 33,098 33,243 - 1.0% (- 145) Retail unitholdings 7.9% 8.0% - 0.1% Foreign unitholdings 7.2% 6.8% + 0
Slide 28: Analyst Recommendation (as at September 2024)
Analyst Recommendation (as at 30 September 2024) Target Price as at 30 Sep 2024 (RM) Upside / Downside to unit price as at 30 Sep 2024 (%) 20.6 16.5 12.9 11.8 11.8 10.0 6.5 6.5 4.1 4.1 2.05 1.98 1.92 1.90 1.90 1.87 1.81 1.81 1.77 1.77 1.74 2.4 1.72 1.2 1.71 1.55 1.55 0.6 N/A (8.8) (8.8) Public Inves
Slide 29: Comparative Yields for Various Assets
Comparative Yields for Various Assets (as at 30 September 2024) 6.20%2 5.71%1 5.50%5 3.71%3 3.00%6 2.50%4 Sunway REIT M-REITs 10-Year MGS Fixed Deposit EPF Yield OPR Note: 1 Distribution yield is computed based on Consensus DPU of 9.70 sen and unit price of RM1.70 as of 30 September 2024 (Source: Su
Slide 30: Appendix I: Property Performance (YTD Q3 2024 YoY Analysis)
APPENDIX I: PROPERTY PERFORMANCE (YTD Q3 2024 YoY Analysis) Empowering Businesses • Curating Experiences • Enriching Lives 29
Slide 31: Average Occupancy Rate (YTD Q3 2024) Retail
Average Occupancy Rate (YTD Q3 2024) RETAIL N/A The Retail segment's average occupancy rate improved marginally to 98% in YTD Q3 2024, mainly supported by the full occupancy from six Sunway REIT hypermarkets, partially offset by the progressive closure and fit-out period for ongoing refurbishment in
Slide 32: Projected Lease Expiry Schedule Retail
Projected Lease Expiry Schedule RETAIL WALE = 0.72 years Sunway Pyramid Sunway Carnival Sunway Putra SunCity Ipoh Sunway REIT Mall Mall Mall Hypermarket Hypermarkets Based on the total net Based on the total NLA Based on the total Occupied by single Occupied by single lettable area (NLA) of of 116,4
Slide 33: Average Occupancy Rate (YTD Q3 2024) Hotel
Average Occupancy Rate (YTD Q3 2024) HOTEL WALE = 5.28 years 7%▲ 82% 3%▲ -8%▼ 73% 73% 75% 74% 72% 2%▲ 69% 68% 65% 7%▲ 63% 7%▲ 57% 54% 50% 47% SUNW AY SUNW AY SUNW AY SUNW AY HOTEL SUNW AY PUTRA SUNW AY HOTEL HOTEL RESORT HOTEL PYRAMID HOTEL LAGOON HOTEL SEBERANG JAYA HOTEL GEORGETOW N SEGMENT YTD Q3
Slide 34: Average Occupancy Rate (YTD Q3 2024) Office
Average Occupancy Rate (YTD Q3 2024) OFFICE The average occupancy rate for the Office segment stood at 84% in YTD Q3 2024, primarily supported by the commencement of new tenants across the office properties, partially offset by the termination of tenants at Sunway Putra Tower. Empowering Businesses
Slide 35: Projected Lease Expiry Schedule Office
Projected Lease Expiry Schedule OFFICE WALE = 1.03 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 227,838 sq. ft. 20,209 sq. ft. due for 64,783 sq. ft. due
Slide 36: Average Occupancy Rate (YTD Q3 2024) Services, Industrial & Others
Average Occupancy Rate (YTD Q3 2024) SERVICES, INDUSTRIAL & OTHERS N/A Based on the forecast with firmed offers, Sunway REIT Industrial – Petaling Jaya 1 is expected to achieve an average occupancy rate of more than 60% based on committed tenancies by mid-2025. Empowering Businesses • Curating Exper
Slide 37: 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 38: Thank You
Thank You Empowering Businesses • Curating Experiences • Enriching Lives 37
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