Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — 2Q FY2017 Earnings Presentation
69 slides from Sunway Real Estate Investment Trust's earnings presentation, Feb 14, 2017
Slide 1: Sunway REIT Financial Results 2nd Quarter Ended 31 December 2016
Sunway REIT Financial Results 2nd Quarter Ended 31 December 2016 (FYE 30 June 2017) Announcement Date: 14 February 2017
Slide 2: 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 3: Table of Contents
Table of Contents 1. Financial Highlights 2. 2Q 2017 Financial Results 3. 2Q 2017 Portfolio Performance 4. 2Q 2017 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 October 2016 - 31 December 2016 Distribution Per Unit (DPU) (sen) 2.28 1 Notice of Entitlement 14 February 2017 Ex-Dividend Date 27 February 2017 Book Closure Date 1 March 2017 Payment Date 15 March 2017 1 Proposed income distr
Slide 6: Financial Highlights
Financial Highlights Highlights 2Q 2017 2Q 2016 No. of Properties 14 14 Property Value (RM'billion) 6.503 6.333 No. of Units in Circulation 2,945,078,000 2,941,335,300 Unit Price as at 31 Dec (RM) 1.72 1.46 Market Capitalisation (RM'billion) 5.066 4.294 Net Asset Value (NAV) Per Unit (RM) 1.3553 1.3
Slide 7: Financial Highlights (Cont'd)
Financial Highlights (Cont’d) Gross Revenue (RM'm) Net Property Income (RM'm) 700.0 500.0 600.0 400.0 2 500.0 3.8% 1 3.1% 400.0 300.0 300.0 255.8 253.1 190.1 187.0 200.0 200.0 128.9 131.9 96.0 97.1 121.2 126.9 100.0 89.9 94.1 100.0 - - 1Q 2Q YTD 1Q 2Q YTD 2017 2016 2017 2016 1 Gross Revenue for 2Q20
Slide 8: Financial Highlights (Cont'd)
Financial Highlights (Cont’d) Profit Before Tax (Realised) (RM'm) DPU (sen) 400.0 12.00 10.00 300.0 1 2 8.8% 8.00 11.3% 200.0 6.00 4.55 4.69 133.9 134.1 4.00 100.0 2.27 2.28 2.57 66.8 67.1 73.6 2.12 60.5 2.00 - - 1Q 2Q YTD 1Q 2Q YTD 2017 2016 2017 2016 1 Profit Before Tax (Realised) for 2Q2017 decre
Slide 9: 2. 2Q 2017 Financial Results
2. 2Q 2017 Financial Results Driving values through sustainable growth 9
Slide 10: Statement of Comprehensive Income – Consolidated
Statement of Comprehensive Income – Consolidated 1Q 2017 1Q 2016 2Q 2017 2Q 2016 Change YTD 2017 YTD 2016 Change RM'000 RM'000 RM'000 RM'000 % RM'000 RM'000 % Gross revenue 128,879 121,216 126,880 131,867 -3.8% 255,759 253,083 1.1% Less : Property operating expenses (32,814) (31,274) (32,825)1 (34,8
Slide 11: Statement of Comprehensive Income-Consolidated (Cont'd)
Statement of Comprehensive Income-Consolidated (Cont’d) Explanation: 1 Property operating expenses for 2Q2017 decreased by RM2.0 million compared to 2Q2016 mainly due to lower operating expenses in Sunway Pyramid Shopping Mall and Sunway Putra Mall. 2 Included in other income for 2Q2017 was fair val
Slide 12: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 31.12.16 30.09.16 30.06.16 RM'000 RM'000 RM'000 ASSETS Non-current assets Plant and equipment 9,046 9,088 8,698 Investment properties 6,502,892 6,458,982 6,433,000 Derivatives 1 26,387 - - 6,538,325 6,468,070 6,441,698 Current assets Receivables, deposi
Slide 13: Debt Profile
Debt Profile Facility Limit Loan Maturity Profile (RM'm) RM'milion RM'million 1,000.0 Term Loan 422.0 448.61 Commercial Papers (CP) / 800.0 172.4 Revolving Loan (RL) 1,100.0 2 822.4 600.0 Unrated MTNs 1,000.0 1,000.0 400.0 Total Gross Borrowings 2,271.0 650.0 3 Discount on CP - 200.0 400.0 448.6 400
Slide 14: 3. 2Q 2017 Portfolio Performance
3. 2Q 2017 Portfolio Performance Driving values through sustainable growth 14
Slide 15: 2Q 2017 Revenue Contribution by Segment
2Q 2017 Revenue Contribution 2Q 2017 (RM'million) 126.9 2Q 2016 (RM'million) 131.9 By segment (RM'm) 140.0 1.3% 120.0 98.8 97.5 100.0 80.0 60.0 31.8% 5.3% 3.8% 40.0 21.7 14.8 20.0 7.9 7.5 5.4 5.2 - Retail Hotel Office Others 2Q 2017 2Q 2016 Note: Calculation of % of increase/decrease above varies ma
Slide 16: 2Q 2017 Revenue Contribution (Cont'd)
2Q 2017 Revenue Contribution (Cont’d) 2Q 2017 (RM'million) 126.9 2Q 2016 (RM'million) 131.9 Retail Hotel Office Others 80.0 By property (RM’m) 60.0 40.0 20.0 - Sun way Sun way Sun way SCI Sun way Sun way Sun way Sun way Sun way Sun way Sun way Resort Ho tel Ho tel Men ara Sun way Wisma Hypermar Putr
Slide 17: 2Q 2017 Revenue Contribution (Cont'd)
2Q 2017 Revenue Contribution (Cont’d) Explanation: 1 Sunway Pyramid – Higher revenue mainly due to higher average gross rent per sq. ft.. 2 Sunway Putra Mall – Lower revenue mainly due to rebates granted during the quarter. 3 Sunway Resort Hotel & Spa – Lower revenue as performance was affected by s
Slide 18: 2Q 2017 Revenue Contribution (Cont'd)
2Q 2017 Revenue Contribution (Cont’d) 2Q 2017 By Property % By segment Others Sunway Pyrami d 58.7% Office 4.3% 6.1% Sunway Carni val 8.5% Hotel SCI Hypermarket 1.0% 11.6% Sunway Putra Mal l 9.8% Total Retai l 78.0% Retail Sunway Res ort Hotel & Spa 6.4% 78.0% Sunway Pyrami d Hotel * 0.6% Sunway Hot
Slide 19: YTD 2Q 2017 Revenue Contribution by Segment
YTD 2Q 2017 Revenue Contribution YTD 2Q 2017 (RM'million) 255.8 YTD 2Q 2016 (RM'million) 253.1 By segment (RM'm) 300.0 7.5% 250.0 198.5 200.0 184.6 150.0 26.2% 3.2% 3.8% 100.0 42.3 50.0 31.2 15.3 15.8 10.8 10.4 - Retail Hotel Office Others YTD 2Q 2017 YTD 2Q 2016 Note: Calculation of % of increase/d
Slide 20: YTD 2Q 2017 Revenue Contribution (Cont'd)
YTD 2Q 2017 Revenue Contribution (Cont’d) YTD 2Q 2017 (RM'million) 255.8 YTD 2Q 2016 (RM'million) 253.1 Retail Hotel Office Others 200.0 By property (RM’m) 160.0 120.0 80.0 40.0 - Sun way Sun way Sun way SCI Sun way Sun way Sun way Sun way Sun way Sun way Sun way Resort Ho tel Ho tel Men ara Sun way
Slide 21: YTD 2Q 2017 Revenue Contribution (Cont'd)
YTD 2Q 2017 Revenue Contribution (Cont’d) Explanation: 1 Sunway Pyramid, Sunway Pyramid Hotel* and Sunway Putra Hotel – Explanation similar to page 17. 2 Sunway Carnival – Better performance following the completion of the new food and beverage (“F&B”) area with NLA of approximately 16,000 sq. ft. (
Slide 22: YTD 2Q 2017 Revenue Contribution (Cont'd)
YTD 2Q 2017 Revenue Contribution (Cont’d) YTD 2Q 2017 By Property % By segment Others Sunway Pyrami d 58.1% Office 4.2% Sunway Carni val 8.8% 6.1% Hotel SCI Hypermarket 1.0% 12.1% Sunway Putra Mal l 9.7% Total Retai l 77.6% Retail Sunway Res ort Hotel & Spa 7.8% 77.6% Sunway Pyrami d Hotel * 0.3% Su
Slide 23: 2Q 2017 NPI Contribution by Segment
2Q 2017 NPI Contribution NPI Margin 2Q 2017 (RM'million) 94.1 74.2% 2Q 2016 (RM'million) 97.1 73.6% By Segment (RM'm) 100.0 5.2% 80.0 70.8 67.3 33.2% 5.3% 3.8% 60.0 40.0 20.8 20.0 13.9 4.0 3.8 5.4 5.2 - Retail Hotel Office Others 2Q 2017 2Q 2016 Note: Calculation of % of increase/decrease above vari
Slide 24: 2Q 2017 NPI Contribution (Cont'd)
2Q 2017 NPI Contribution (Cont’d) NPI Margin 2Q 2017 (RM'million) 94.1 74.2% 2Q 2016 (RM'million) 97.1 73.6% Retail Hotel Office Others 65.0 60.0 By property (RM’m) 55.0 50.0 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 - (5.0) Sunway SCI Sunway Sunway Sunway Sunway Sunway Sunway Sunway Hotel Sunway
Slide 25: 2Q 2017 NPI Contribution (Cont'd)
2Q 2017 NPI Contribution (Cont’d) Explanation: 1 Sunway Pyramid – Higher NPI by RM3.1 million due to higher revenue by RM1.9 million and lower operating expenses incurred. 2 Sunway Carnival – Higher NPI by RM0.3 million due to recovery of doubtful debt in the current quarter. 3 Sunway Putra Mall – H
Slide 26: 2Q 2017 NPI Contribution (Cont'd)
2Q 2017 NPI Contribution (Cont’d) 2Q 2017 By Property % By segment Others Sunway Pyrami d 58.4% Office 5.7% Sunway Carni val 7.4% 4.6% SCI Hypermarket 1.4% Hotel 14.8% Sunway Putra Mal l 7.7% Total Retai l 74.9% Retail Sunway Res ort Hotel & Spa 8.2% 74.9% Sunway Pyrami d Hotel * 0.6% Sunway Hotel S
Slide 27: YTD 2Q 2017 NPI Contribution by Segment
YTD 2Q 2017 NPI Contribution NPI Margin YTD 2Q 2017 (RM'million) 190.1 74.3% YTD 2Q 2016 (RM'million) 187.0 73.9% By Segment (RM'm) 240.0 10.9% 200.0 27.5% 2.5% 160.0 142.3 3.8% 128.3 120.0 80.0 40.4 40.0 29.3 7.7 7.9 10.8 10.4 - Retail Hotel Office Others YTD 2Q 2017 YTD 2Q 2016 Note: Calculation o
Slide 28: YTD 2Q 2017 NPI Contribution (Cont'd)
YTD 2Q 2017 NPI Contribution (Cont’d) NPI Margin YTD 2Q 2017 (RM'million) 190.1 74.3% YTD 2Q 2016 (RM'million) 187.0 73.9% Retail Hotel Office Others 140.0 By property (RM’m) 120.0 100.0 80.0 60.0 40.0 20.0 - (20.0) Sunway Sunway Sunway Sunway SCI Sunway Sunway Resort Sunway Hotel Sunway Sunway Hote
Slide 29: YTD 2Q 2017 NPI Contribution (Cont'd)
YTD 2Q 2017 NPI Contribution (Cont’d) Explanation: 1 Sunway Pyramid – NPI for YTD 2Q2017 was higher by RM5.3 million due to higher YTD 2Q2017 revenue by RM4.3 million and lower operating expenses incurred. 2 Sunway Carnival – NPI for YTD 2Q2017 was higher by RM0.8 million contributed by higher YTD 2
Slide 30: YTD 2Q 2017 NPI Contribution (Cont'd)
YTD 2Q 2017 NPI Contribution (Cont’d) YTD 2Q 2017 By Property % By segment Others Sunway Pyrami d 58.6% Office 5.7% Sunway Carni val 7.6% 4.3% SCI Hypermarket 1.3% Hotel 15.4% Sunway Putra Mal l 7.1% Total Retai l 74.6% Retail Sunway Res ort Hotel & Spa 10.1% 74.6% Sunway Pyrami d Hotel * 0.3% Sunwa
Slide 31: Resilient Income Stream
Resilient Income Stream Well spread-out lease expiry profile and diverse tenant base WALE 1 as at 31 December 2016 – 2.04 years Top 10 tenants contribute approximately 12.8% of total revenue Projected tenancy expiry of portfolio 2 Top 10 tenants 4 Total Top 10 Tenants 12.8% 60.0% 57.7% Parkson Corpo
Slide 32: 4. 2Q 2017 Property Performance
4. 2Q 2017 Property Performance Driving values through sustainable growth 32
Slide 33: Retail Properties: Sunway Pyramid Shopping Mall
RETAIL PROPERTIES SUNWAY PYRAMID SHOPPING MALL Historical occupancy rates Projected lease expiry schedule Average occupancy rate 40.0% 35.0% 100.0% 98.6% 98.3% 30.0% 97.8% 98.1% 98.3% 97.7% 98.2% 25.0% 95.0% 20.0% 90.0% 15.0% 10.0% 85.0% 5.0% 80.0% 7.7% 33.7% 14.8% 37.8% 4.1% 0.0% FY2017 FY2018 FY20
Slide 34: Sunway Pyramid Shopping Mall (Cont'd)
RETAIL PROPERTIES SUNWAY PYRAMID SHOPPING MALL (Cont’d) Tenant mix 1 Top 10 tenants 1 Total Top 10 Tenants 13.7% Aeon Co. (M) Bhd 2.2% (Aeon) 22.0% Padini Dot Com Sdn Bhd 1.7% (Padini Concept Store) 37.2% Parkson Corporation Sdn Bhd 1.6% (Parkson, Models Own & Origin) 4.4% TGV Cinemas Sdn Bhd 1.4% 6
Slide 35: Retail Properties: Sunway Carnival Shopping Mall
RETAIL PROPERTIES SUNWAY CARNIVAL SHOPPING MALL Historical occupancy rates Projected lease expiry schedule Average occupancy rate 40.0% 35.0% 100.0% 30.0% 97.4% 97.3% 97.1% 25.0% 94.4% 94.0% 95.0% 92.0% 20.0% 91.2% 90.0% 15.0% 10.0% 85.0% 5.0% 80.0% 21.6% 19.4% 18.4% 37.4% 0.9% 0.0% FY2017 FY2018 FY
Slide 36: Sunway Carnival Shopping Mall (Cont'd)
RETAIL PROPERTIES SUNWAY CARNIVAL SHOPPING MALL (Cont’d) Tenant mix 1 Top 10 tenants 1 Total Top 10 Tenants 22.9% Parkson Corporation Sdn Bhd 8.9% (Parkson) 22.6% 25.5% Sam's Groceria Sdn Bhd 2.4% (Sam's Groceria) Sunway Hotel (Seberang Jaya) Sdn Bhd 2.0% (Sunway Carnival Convention Centre) 8.4% Lif
Slide 37: 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-12 Jun-13 Jun-14 Jun-15 Jun-16 YTD 2Q YTD 2Q 2017 2016 Suncity Ipoh Hypermarket is tenanted to a single tenant, a major hypermarket and retaile
Slide 38: Retail Properties: Sunway Putra Mall
RETAIL PROPERTIES SUNWAY PUTRA MALL Historical occupancy rates Projected lease expiry schedule Average occupancy rate 70.0% 60.0% 100.0% 50.0% # 85.5% 79.8% 82.4% 80.0% 74.9% 40.0% 69.8% 72.0% 60.0% 30.0% 20.0% 40.0% 10.0% 20.0% 2.9% 60.1% 21.8% 1.3% 0.0% 0.0%* FY2017 FY2018 FY2019 FY2020 0.0% Jun-1
Slide 39: Sunway Putra Mall (Cont'd)
RETAIL PROPERTIES SUNWAY PUTRA MALL (Cont’d) Tenant mix 1 Top 10 tenants 1 Total Top 10 Tenants 19.6% TGV Cinemas Sdn Bhd 4.2% (TGV Cinemas) 25.2% Padini Dot Com Sdn Bhd 3.0% (Padini Concept Store) 38.1% Jerasia Fashion Sdn Bhd 2.3% (Mango & Nike) 1.6% Parenthood Venture Sdn Bhd 3.0% 1.7% (The Paren
Slide 40: Hospitality Properties: Sunway Resort Hotel & Spa
HOSPITALITY PROPERTIES SUNWAY RESORT HOTEL & SPA Historical occupancy rate Average occupancy rate Average occupancy rate (%) 94.3% 87.3% 95.0% 90.0% 84.6% 85.0% 81.2% 78.8% 78.0% 90.0% 80.0% 76.0% 87.4% 75.0% 71.3% 85.0% 70.0% 81.8% 82.2% 65.0% 80.3% 80.0% 60.0% 55.0% 73.6% 75.0% 50.0% Jun-12 Jun-13
Slide 41: Hospitality Properties: Sunway Pyramid Hotel
HOSPITALITY PROPERTIES SUNWAY PYRAMID HOTEL (formerly known as SUNWAY PYRAMID HOTEL EAST) Historical occupancy rate Average occupancy rate Average occupancy rate (%) 83.1% 82.4% 85.0% 81.4% 78.2% # 80.0% 90.0% 78.7% 80.0% # 80.3% 79.8% 80.0% 78.2% 75.0% 71.8% 70.0% 70.0% 65.0% 60.0% 55.2% 60.0% Jun-
Slide 42: Hospitality Properties: Sunway Hotel Seberang Jaya
HOSPITALITY PROPERTIES SUNWAY HOTEL SEBERANG JAYA Historical occupancy rate Average occupancy rate Average occupancy rate (%) 90.0% 90.0% 80.0% 72.0% 80.0% 70.2% 76.0% 67.8% 69.6% 73.9% 70.0% 65.5% 70.2% 62.1% 70.0% 60.0% 51.6% 64.1% 61.9% 60.2% 50.0% 60.0% 40.0% 50.0% Jun-12 Jun-13 Jun-14 Jun-15 Ju
Slide 43: Hospitality Properties: Sunway Putra Hotel
HOSPITALITY PROPERTIES SUNWAY PUTRA HOTEL Historical occupancy rate Average occupancy rate Average occupancy rate (%) 80.0% 80.0% 70.6% 71.7% 70.0% 59.0% 60.2% 69.0% 70.0% 60.0% 50.2% 61.5% 42.6% 40.5% 58.3% 50.0% 60.0% 40.0% 28.8% 30.0% 50.0% 45.0% 20.0% 36.5% 40.0% 10.0% 0.0% 30.0% Jun-12 * Jun-13
Slide 44: Hospitality Properties: Sunway Hotel Georgetown
HOSPITALITY PROPERTIES SUNWAY HOTEL GEORGETOWN Historical occupancy rate Average occupancy rate Average occupancy rate (%) 88.0% 90.0% 88.7% 90.0% 87.3% 76.0% 85.0% 82.6% 80.0% 74.0% 70.4% 71.4% 69.1% 80.0% 70.0% 74.1% 54.7% 75.0% 60.0% 70.7% 70.0% 68.8% 50.0% 40.0% 65.0% Jun-15 * Jun-16 # # # Jun-1
Slide 45: Office Properties: Menara Sunway
OFFICE PROPERTIES MENARA SUNWAY Historical occupancy rates Projected lease expiry schedule Average occupancy rate 100.0% 100.0% 98.5% 98.9% 98.8% 80.0% 97.1% 95.1% 95.0% 60.0% 89.3% 89.8% 90.0% 40.0% 85.0% 20.0% 80.0% 5.8% 80.6% 3.3% 0.0% 75.0% FY2018 FY2019 FY2020 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16
Slide 46: Menara Sunway (Cont'd)
OFFICE PROPERTIES MENARA SUNWAY (Cont’d) Tenant mix 1 Top 10 tenants 1 2.0% Total Top 10 Tenants 76.8% 12.3% 2.1% Sunway Management Sdn Bhd 21.5% 2.7% Sunway Integrated Properties Sdn Bhd 32.5% 18.4% 2.8% Sunway Construction Group Berhad 8.9% 5.5% Merck Sdn Bhd 7.3% 7.3% Sunway Shared Service Sdn Bh
Slide 47: Office Properties: Sunway Tower
OFFICE PROPERTIES SUNWAY TOWER Historical occupancy rates Projected lease expiry schedule Average occupancy rate 15.0% 12.0% 100.0% 93.5% 83.0% 84.3% 80.0% 9.0% 66.9% 60.0% 6.0% 40.0% 3.0% 19.6% 20.7% 20.9% 20.0% 7.4% 11.4% 1.6% 0.3% 0.0% FY2018 FY2019 FY2020 Monthly 0.0% tenancy Jun-12 Jun-13 Jun-1
Slide 48: Sunway Tower (Cont'd)
OFFICE PROPERTIES SUNWAY TOWER (Cont’d) Tenant mix 1 Top 10 tenants 1 Total Top 10 Tenants 99.3% 6.0% 8.0% WPP Business Services Sdn Bhd 20.0% VPO Services Sdn Bhd 19.0% 14.3% ZJ Advisory Sdn Bhd 15.7% 51.7% Royal Danish Embassy 14.3% Bexcel Shared Services Malaysia Sdn Bhd 11.4% 20.0% R1 Internatio
Slide 49: Office Properties: Sunway Putra Tower
OFFICE PROPERTIES SUNWAY PUTRA TOWER Historical occupancy rates Projected lease expiry schedule Average occupancy rate 20.0% 100.0% 15.0% 85.2% 78.0% 80.0% 74.2% 10.0% 60.0% 52.8% 40.0% 5.0% 31.2% 26.4% 26.7% 20.0% 4.3% 17.6% 16.2% 0.0% FY2018 FY2019 FY2020 0.0% Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 YT
Slide 50: Sunway Putra Tower (Cont'd)
OFFICE PROPERTIES SUNWAY PUTRA TOWER (Cont’d) Tenant mix 1 Top tenants 1 Total Top Tenants 100.0% 1.4% 3.5% Kementerian Perdagangan Dalam Negeri 43.2% Koperasi Dan Kepenggunaan Malaysia Lembaga Pembangunan Industri Pembinaan 39.8% Malaysia (CIDB) Jabatan Perdana Menteri (I.C.U) 10.5% Chini Enterpris
Slide 51: Office Properties: Wisma Sunway
OFFICE PROPERTIES WISMA SUNWAY Historical occupancy rates Projected lease expiry schedule Average occupancy rate 40.0% 100.0% 30.0% 91.3% 89.8% 90.1% 90.0% 86.9% 87.6% 85.1% 20.0% 80.9% 80.0% 10.0% 70.0% 60.0% 9.9% 32.8% 30.9% 14.0% 0.0% FY2017 FY2018 FY2019 FY2020 50.0% # # # Jun-12 Jun-13 Jun-14 J
Slide 52: Wisma Sunway (Cont'd)
OFFICE PROPERTIES WISMA SUNWAY (Cont’d) Tenant mix 1 Top tenants 1 Total Top Tenants 100.0% 3.5% 2.2% Jabatan Kesihatan Negeri Selangor 35.3% Jabatan Alam Sekitar 32.0% Lembaga Hasil Dalam Negeri 16.0% Yayasan Penyelidikan Transformasi 5.8% Pejabat Tindakan Pelancongan Negeri 5.2% 94.3% Selangor SM
Slide 53: 5. Market Outlook
5. Market Outlook Driving values through sustainable growth 53
Slide 54: General Outlook
General Outlook o Global economic growth in CY2016 is estimated to grow at a slower pace of 2.3% (CY2015: 2.4%), the weakest performance since global financial crisis. Advanced economies continue to be plagued by weak growth and low inflation coupled with heightened uncertainties on future policy di
Slide 55: General Outlook
General Outlook o The BNM has maintained the Overnight Policy Rate (“OPR”) at 3.00% at the recent Monetary Policy Committee (“MPC”) meeting on 19 January 2017. At the current level of the OPR, the degree of monetary accommodativeness is consistent with the policy stance to ensure that the domestic e
Slide 56: Retail Segment
Retail Segment o The Retail Group Malaysia (“RGM”) reported that the Malaysia’s retail industry recorded a dismal growth of 1.9% in the 3Q CY2016 (3Q FY2015: 1.6%), as retailers enjoyed minimal impact from the Hari Raya and higher minimum wages implementation in July 2016. For the nine months of 201
Slide 57: Retail Segment (Cont'd)
Retail Segment (Cont’d) o Average occupancy rate at Sunway Carnival Shopping Mall inched higher to 97.1% for YTD 2Q FY2017 following the completion of the remodeling of 2nd floor area of approximately 16,000 sq.ft. (equivalent to 3% of total NLA) into food and beverage (“F&B”) area. Based on the tot
Slide 58: Hotel Segment
Hotel Segment o Tourist arrivals for the 11M CY2016 came in lower at 22.06 million tourists compared to 23.12 million tourists during the same period last year, representing a decline of 4.6%. Extrapolation of the 11M data indicates that tourist arrivals will be significantly below the CY2016 offici
Slide 59: Hotel Segment (Cont'd)
Hotel Segment (Cont’d) o The average occupancy rate at Sunway Putra Hotel improved significantly to 71.7% in 2Q FY2017, from 45.0% during the corresponding period in the preceding year. Following the completion of the refurbishment of the hotel, the hotel operator embarked on active marketing activi
Slide 60: Office Segment
Office Segment o The oversupply situation in the Klang Valley office market is expected to continue with the huge incoming supply of approximately 13.32 million sq.ft. of office space scheduled to be completed by the end of 2018. The existing office stock in the Klang Valley stood at 114.4 million s
Slide 61: Office Segment (Cont'd)
Office segment (Cont’d) o The average occupancy rate at Sunway Putra Tower has improved from 25.7% in 1Q FY2017 to 31.2% for YTD 2Q FY2017. The improvement was attributable to commencement of a new tenant occupying 51,500 sq.ft. (equivalent to 16% of total NLA) in 2Q FY2017. As at 31 December 2016,
Slide 62: 6. Investor Relations
6. Investor Relations Driving values through sustainable growth 62
Slide 63: Unit Price Performance from IPO to YTD2Q2017
Unit Price Performance from IPO to YTD2Q2017 Unit Price Performance of Sunway REIT versus Benchmarks (8 July 2010 – 31 December 2016) 140.0% TR/GPR/APREA Composite REIT Index Malaysia 120.0% 125.5% 100.0% 80.0% Sunway REIT 60.0% 91.1% FBM KLCI 40.0% 24.8% 20.0% 0.0% Dec 2013 Dec 2010 Jun 2011 Dec 20
Slide 64: Unit Price Performance for YTD2Q2017
Unit Price Performance for YTD2Q2017 Unit Price Performance of Sunway REIT versus Benchmarks (30 September 2016 – 31 December 2016) 12.0% 10.0% 8.0% TR/GPR/APREA Composite REIT Index Malaysia 6.0% 4.4% 4.0% 2.0% Sunway REIT 0.0% 3.6% Sep 2016 Oct 2016 Nov 2016 Dec 2016 -2.0% FBM KLCI -4.0% -0.8% Per
Slide 65: Indices Representation
Indices Representation o Sunway REIT is represented in the following indices: FTSE Bursa Malaysia Mid 70 Index FTSE4Good Bursa Malaysia Index TR / GPR / APREA Composite REIT Index Malaysia FTSE EPRA / NAREIT Global REIT Index FTSE EPRA / NAREIT Global Index FTSE EPRA / NAREIT Asia ex Japan Index FTS
Slide 66: Unitholders' Composition
Unitholders’ Composition (as at 31 December 2016) Retail Foreign 13.0% 13.3% Sunway Berhad 37.3% Institutions & Corporate Domestic 49.7% 86.7% December 2016 September 2016 Q-o-Q Change No of unitholders 9,869 9,632 237 (+2.5%) Retail unitholders 13.0% 12.6% +0.4% Foreign unitholders 13.3% 13.4% -0.1
Slide 67: Analysts Recommendation
Analysts Recommendation (as at 31 December 2016) 13.4 Target Price (RM) 11.6 9.3 Upside / Downside to unit price as at 31 December 2016 (%) 7.6 7.6 7.0 6.4 4.7 3.5 1.95 1.92 1.88 1.85 1.85 1.83 1.80 1.84 1.75 1.7 1.74 1.2 1.70 1.66 1.49 1.78 (1.2) (3.5) (13.4) UOB Kay Hian TA Research AmInvestment B
Slide 68: Comparative Yields for Various Assets
Comparative Yields for Various Assets 7.0% 6.28% 2 6.40% 5 6.0% 5.29% 1 5.0% 4.22% 3 4.0% 3.07% 4 3.00% 6 3.0% 2.0% 1.0% 0.0% Sunway REIT M-REITs 10-Year MGS Fixed Deposit EPF Yield OPR Note: 1 Distribution yield based on consensus FY2017 DPU of 9.1 sen and unit price as at 31 December 2016 (Source:
Slide 69: Thank You
THANK YOU Driving values through sustainable growth
Sunway Real Estate Investment Trust — 2Q FY2017 Earnings Presentation on 6ix