Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — Q4 2022 Earnings Presentation
38 slides from Sunway Real Estate Investment Trust's earnings presentation, Jan 30, 2023
Slide 1: Financial Results Fourth Quarter Ended 31 December 2022
FINANCIAL RESULTS Fourth Quarter Ended 31 December 2022 (FYE 31 December 2022) 30 January 2023 1
Slide 2: Table of Contents
Table of Contents 1. Financial Highlights (4Q2022) 2. Financial Results (4Q2022) 3. Segmental Financial Results (4Q2022 & YTD 4Q2022) 4. Property Development Activities (4Q2022) 5. Market Outlook (4Q2022) 6. Investor Relations (4Q2022) Appendix I – Property Performance (YTD 4Q2022) Empowering Busine
Slide 3: Financial Highlights (4Q2022)
FINANCIAL HIGHLIGHTS (4Q2022) Empowering Businesses • Curating Experiences • Enriching Lives 3
Slide 4: Distribution Per Unit (DPU)
Distribution Per Unit (“DPU”) DPU (sen) Details of Income Distribution Distribution Period 1 July 2022 - 31 December 2022 Distribution Per Unit (DPU) (sen) 5.00 5.00 Notice of Entitlement 30 January 2023 Ex-Dividend Date 13 February 2023 2.80 Book Closure Date 15 February 2023 Payment Date 28 Februa
Slide 5: 5-Years DPU
5-Years DPU July-Sept Oct-Dec Jan-Mar April-Jun Jan-Jun July-Dec 9.57 9.59 9.22 2.15 2.28 7.33 6.10 5.00 2.37 2.58 2.38 2.80 2.38 2.25 2.45 1.63 4.22 2.67 2.48 2.50 0.77 0.90 JULY'17-JUN'18 JULY'18-JUN'19 JULY'19-JUN'20 JULY'20-DEC'21 (18MTHS) JAN'22-DEC'22 (FY22) 5-Year DPU CAGR Distribution Yield
Slide 6: Financial Highlights – 4Q2022
Financial Highlights – 4Q2022 Highlights 4Q2022 4Q2021* No. of Properties 20 18 Property Value (RM'billion) 9.101 @ 8.738 Units in Circulation 3,424,807,700 3,424,807,700 Unit Price as at 31 Dec 2022/2021 (RM) 1.46 1.41 Market Capitalisation (RM'billion) 5.000 4.829 Net Asset Value ("NAV") Per Unit
Slide 7: Financial Highlights – 4Q2022 vs 4Q2021 (Current QTD & YTD)
Financial Highlights – 4Q2022 vs 4Q2021 (Current QTD & YTD) Reported in RM’000 YTD Variance Revenue Higher Revenue mainly contributed by the retail YTD 153,970 144,509 166,235 186,732 * segment resulting from higher sustained retail 2022 YTD 4Q YoY footfall and encouraging tenant sales as well as YT
Slide 8: Financial Results (4Q2022)
FINANCIAL RESULTS (4Q2022) Empowering Businesses • Curating Experiences • Enriching Lives 8
Slide 9: Statement of Comprehensive Income – Consolidated
Statement of Comprehensive Income – Consolidated 4Q2022 4Q2021 Change YTD 2022 YTD 2021 Change RM'000 RM'000 % RM'000 RM'000 % 1. Interest income for 4Q2022 was lower compared to 4Q2021 resulting from Revenue 186,732 * 157,797 * 18.3% 651,446 472,345 37.9% Property operating expenses (40,544) (34,70
Slide 10: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 31.12.2022 31.12.2021 31.12.2022 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 8,622,501 1 8,701,745 Investment pr
Slide 11: Statement of Cash Flows – Consolidated
Statement of Cash Flows – Consolidated Cumulative Quarter ended 1 Net cash from operating activities for YTD 4Q2022 of 31.12.2022 31.12.2021 * * RM435.0 million mainly comprise of cash receipt from lessees RM'000 RM'000 OPERATING ACTIVITIES and tenants as well as refundable deposits partially net of
Slide 12: Financing Profile as at 31 December 2022
Financing Profile as at 31 December 2022 Facility Limit Utilised Amt RM'mil RM'mil Revolving Loan (USD) USD 75 287.0 1 Unrated MTNs 10,000 ^ 1,350.0 2 Total Current 1,637.0 3 Revolving Loan (RM) 2,000 1,890.0 Unrated MTNs 10,000 ^ 10.0 2 Total Non Current 1,900.0 Total Gross Borrowings 3,537.0 Unamo
Slide 13: Financing Profile as at 31 December 2022 (Cont'd)
Financing Profile as at 31 December 2022 (Cont’d) Sources of Debt Revolving Loan (USD) 8% MTN 39% Revolving Loan (RM) 53% Fixed vs Floating Fixed rate 31% Floating rate 69% Empowering Businesses • Curating Experiences • Enriching Lives 13
Slide 14: Segmental Financial Results (4Q2022 & YTD 4Q2022)
SEGMENTAL FINANCIAL RESULTS (4Q2022 & YTD 4Q2022) Empowering Businesses • Curating Experiences • Enriching Lives 14
Slide 15: Retail Segment: 4Q2022 / YTD 4Q2022
Retail Segment : 4Q2022 / YTD 4Q2022 Total Retail Revenue Total Retail NPI 26% RM 116.6 million (4Q2022) 29% RM 84.7 million (4Q2022) vs RM 92.4 million (4Q2021) vs RM 65.8 million (4Q2021) RM 427.0 million (YTD 4Q2022) RM 307.1 million (YTD 4Q2022) 58% 102% vs RM 269.5 million (YTD 4Q2021) vs RM 15
Slide 16: Hotel Segment: 4Q2022 / YTD 4Q2022
Hotel Segment : 4Q 2022 / YTD 4Q 2022 Total Hotel Revenue Total Hotel NPI 107% RM 20.4 million (4Q2022) 129% RM 19.4 million (4Q2022) vs RM 9.8 million (4Q2021) vs RM 8.5 million (4Q2021) RM 63.3 million (YTD 4Q2022) RM 59.4 million (YTD 4Q2022) 62% 83% vs RM 39.1 million (YTD 4Q2021) vs RM 32.5 mil
Slide 17: Office Segment: 4Q2022 / YTD 4Q2022
Office Segment : 4Q2022 / YTD 4Q2022 Total Office Revenue Total Office NPI 5% RM 20.1 million (4Q2022) 1% RM 12.6 million (4Q2022) vs RM 19.1 million (4Q2021) vs RM 12.4 million (4Q2021) RM 79.3 million (YTD 4Q2022) RM 51.8 million (YTD 4Q2022) 4% 0% vs RM 76.6 million (YTD 4Q2021) vs RM 51.5 millio
Slide 18: Services and Industrial & Others Segments
Services and Industrial & Others Segments : 4Q2022 / YTD 4Q2022 Total Services Revenue and NPI Total Industrial & Others Revenue and NPI 3% RM 15.8 million (4Q2022) 10% RM 1.7 million (4Q2022) vs RM 15.3 million (4Q2021) vs RM 1.5 million (4Q2021) RM 63.2 million (YTD 4Q2022) RM 6.8 million (YTD 4Q2
Slide 19: Property Development Activities (4Q2022)
PROPERTY DEVELOPMENT ACTIVITIES (4Q2022) Empowering Businesses • Curating Experiences • Enriching Lives 19
Slide 20: Property Development Activities
Property Development Activities Sunway Resort Hotel Refurbishment Estimated total property development cost RM261.0 million Cumulative cost incurred from initiation to RM244.3 million YTD 4Q2022 Expected completion 1Q2023 NLA (sq. ft.) / Room Additional 20 new guest rooms Property development activi
Slide 21: Market Outlook (4Q2022)
MARKET OUTLOOK (4Q2022) Empowering Businesses • Curating Experiences • Enriching Lives 21
Slide 22: General Outlook
General Outlook Indicator 2022 (F) 4Q2022(A) * 3Q2022(A) 2Q2022 (A) 1Q2022 (A) 2021 (A) Gross Domestic Product (GDP) 6.5% - 7.0% 4 N/A 14.2% 1 8.9% 5.0% 3.1% (y-o-y) Consumer Price Index (y-o-y) 3.3% 4 3.8% 2 4.5% 2.8% 2.2% 2.5% Overnight Policy Rate (OPR) 2.75% 2.75% 3 2.75% 2.25% 1.75% 1.75% * 4Q
Slide 23: Segmental Outlook
Segmental Outlook Retail Segment o The outlook for retail segment remains positive, underpinned by sustained strong improvement in retail footfall and retail sales in FY2022 which have recovered to pre-pandemic level in 2019. The outlook is further supported by healthy economic growth, sustained dom
Slide 24: 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. The Corporate Suite@19, a 30,000 sq.ft. of newly completed office space at Sunway Resort, will further strengthen the income base of the office segment
Slide 25: Investor Relations (4Q2022)
INVESTOR RELATIONS (4Q2022) Empowering Businesses • Curating Experiences • Enriching Lives 25
Slide 26: Unit Price Performance from IPO to 4Q2022
Unit Price Performance from IPO to 4Q2022 Unit Price Performance of Sunway REIT versus Benchmarks (8 July 2010 – 31 December 2022) Sunway REIT +62.2% FBM Top 100 Index +20.3% FBM KLCI +13.6% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Performance Statistics Listing to 4Q 2022 FY
Slide 27: 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 28: Unitholders' Composition (as at 31 December 2022)
Unitholders’ Composition (as at 31 December 2022) Foreign Retail 9.5% 6.9% Sunway Berhad 40.9% Institutions & Corporates Domestic 52.2% 90.5% Sept 2022 Dec 2022 Q-o-Q Change No of unitholders 29,543 29,761 +218 (+0.7%) Retail unitholders 6.8% 6.9% +0.1% Foreign unitholders 8.4% 9.5% +1.1% Sunway Ber
Slide 29: Analysts Recommendation (as at December 2022)
Analysts Recommendation (as at 31 December 2022) 23.6 23.6 Average Consensus Target Price as at 31 Dec 2022 (RM) Target Price = RM1.59 21.4 Upside / Downside to unit price as at 31 Dec 2022 (%) 20.0 18.6 15.0 14.3 14.3 14.3 10.7 9.3 7.9 7.1 5.0 4.3 3.6 1.73 1.73 1.70 1.68 1.66 1.61 1.60 1.60 1.60 1.
Slide 30: Comparative Yields for Various Assets
Comparative Yields for Various Assets (as at 31 December 2022) 8.0% 7.0% 6.75%2 6.30%1 6.10%5 6.0% 5.0% 4.07%3 4.0% 3.0% 2.68%4 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 FY2022 DPU of 9.22 sen and unit price of R
Slide 31: Appendix I: Property Performance (YTD 4Q2022 YoY Analysis)
APPENDIX I: PROPERTY PERFORMANCE (YTD 4Q2022 YoY Analysis) Empowering Businesses • Curating Experiences • Enriching Lives 31
Slide 32: Average Occupancy Rate (YTD 4Q2022) – Retail
Average Occupancy Rate (YTD 4Q2022) RETAIL 100% 100% -1% 98% 99% 97% 96% 96% -6% 93% 93% -2% 91% S UNW AY S UNW AY S UNC IT Y IP O H S UNW AY R E T AIL S E GME NT P YR AMID MAL L C AR NIVAL MAL L HYP E R MAR K E T P UT R A MAL L YTD 4Q2022 YTD 4Q2021 The Retail segment recorded a stable average
Slide 33: Projected Lease Expiry Schedule – Retail
Projected Lease Expiry Schedule RETAIL WALE = 1.34 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 34: Average Occupancy Rate (YTD 4Q2022) – Hotel
Average Occupancy Rate (YTD 4Q2022) HOTEL WALE = 7.19 years 33% 20% 40% 16% 59% 61% 62% 24% 59% 54% 19% 45%* 44% 43% 41% 30% 26% 25% 21% 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
Slide 35: Average Occupancy Rate (YTD 4Q2022) – Office
Average Occupancy Rate (YTD 4Q2022) OFFICE 1% -4% 100% 100% 98%97% 93%97% 3% -1% 86%83% 83%84% -4% 31% 27% ME N AR A S U N W AY S U N W AY W I S MA TH E OFFIC E S U N W AY TOWER PU TR A S U N W AY P I N N AC L E S E G ME N T TOWER S U N W AY YTD 4Q2022 YTD 4Q2021 The Office segment recorded a stab
Slide 36: Projected Lease Expiry Schedule – Office
Projected Lease Expiry Schedule OFFICE WALE = 1.33 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 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 38
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