Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — 2Q FY2016 Earnings Presentation
67 slides from Sunway Real Estate Investment Trust's earnings presentation, Jan 27, 2016
Slide 1: Sunway REIT Financial Results 2nd Quarter Ended 31 December 2015
Sunway REIT Financial Results 2nd Quarter Ended 31 December 2015 (FYE 30 June 2016) Announcement Date: 27 January 2016
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 2016 Financial Results 3. 2Q 2016 Portfolio Performance 4. 2Q 2016 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 Oct 2015 - 31 Dec 2015 1 Distribution per Unit (DPU) (sen) 2.57 Notice of Entitlement 27 January 2016 Ex-Dividend Date 11 February 2016 Book Closure Date 15 February 2016 Payment Date 1 March 2016 1 Proposed income distribution
Slide 6: Financial Highlights
Financial Highlights Highlights 2Q 2016 2Q 2015 Change % No. of Properties 14 12 16.7% Property Value (RM'billion) 6.333 5.652 12.1% No. of Units in Circulation 2,941,335,300 2,933,242,500 0.3% Unit Price as at 31 Dec (RM) 1.46 1.52 -3.9% Market Capitalisation (RM'billion) 4.294 4.459 -3.7% Net Asse
Slide 7: Financial Highlights (Cont'd)
Financial Highlights (Cont’d) Gross Revenue (RM'm) Net Property Income (RM'm) 400.0 300.0 1 1 12.0% 15.7% 300.0 253.1 227.8 200.0 187.0 173.2 200.0 121.2 131.9 113.8 114.0 100.0 89.9 86.5 97.1 86.7 100.0 - - 1Q 2Q YTD 1Q 2Q YTD 2016 2015 2016 2015 1 Gross revenue increased 15.7% or RM17.9 million wh
Slide 8: Financial Highlights (Cont'd)
Financial Highlights (Cont’d) Profit Before Tax (Realised) (RM'm) DPU (sen) 200.0 6.00 5.0% 2 1 13.2% 16.8% 5.00 4.69 4.55 134.1 126.4 4.00 100.0 3.00 2.57 73.6 2.12 2.28 2.27 60.5 63.4 63.0 2.00 1.00 - - 1Q 2Q YTD 1Q 2Q YTD 2016 2015 2016 2015 1 Realised PBT increased by 16.8% or RM10.6 million due
Slide 9: 2. 2Q 2016 Financial Results
18.1% 2. 2Q 2016 Financial Results Driving values through sustainable growth 9
Slide 10: Statement of Comprehensive Income – Consolidated
Statement of Comprehensive Income – Consolidated 1Q 2016 1Q 2015 2Q 2016 2Q 2015 Change YTD 2016 YTD 2015 Change RM'000 RM'000 RM'000 RM'000 % RM'000 RM'000 % Gross revenue 121,216 113,812 131,867 113,996 15.7% 253,083 227,808 11.1% 1 Less : Property operating expenses (31,274) (27,320) (34,813) (27
Slide 11: Statement of Comprehensive Income-Consolidated (Cont'd)
Statement of Comprehensive Income-Consolidated (Cont’d) Explanation: 1 Property operating expenses was higher in 2Q 2016 compared to 2Q 2015 of RM7.5 million due to: - Lower assessment in 2Q 2015 as there were vacancy allowance granted by DBKL for KL properties. - Operating expenses incurred for Sun
Slide 12: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 31.12.15 30.09.15 30.06.15 RM'000 RM'000 RM'000 ASSETS Non-current assets Plant and equipment 7,568 7,040 5,268 Investment properties 6,333,412 6,341,438 6,324,000 6,340,980 6,348,478 6,329,268 Current assets Receivables, deposits and prepayments 26,646
Slide 13: Debt Profile
Debt Profile Facility Limit RM'mil RM'mil Loan Maturity Profile (RM'mil) 1 900.0 Term Loan 360.9 429.3 800.0 Commercial Papers (CP) / 700.0 2 312.4 Revolving Loans (RL) 1,100.0 812.4 600.0 Unrated MTNs 1,000.0 1,000.0 500.0 400.0 Total Gross Borrowings 2,241.7 300.0 3 Discount on Commercial Papers (
Slide 14: 3. 2Q 2016 Portfolio Performance
3. 2Q 2016 Portfolio Performance Driving values through sustainable growth 14
Slide 15: 2Q 2016 Revenue Contribution by Segment
2Q 2016 Revenue Contribution 2Q 2016 (RM'mil) 131.9 2Q 2015 (RM'mil) 114.0 By segment 19.9% 120.0 97.5 100.0 81.3 80.0 60.0 24.0% 26.5% 40.0 4.0% 21.7 17.5 20.0 7.5 10.2 5.2 5.0 - Retail Hotel Office Others 2Q 2016 2Q 2015 Driving values through sustainable growth 15
Slide 16: 2Q 2016 Revenue Contribution (Cont'd)
2Q 2016 Revenue Contribution (Cont’d) 2Q 2016 (RM'mil) 131.9 2Q 2015 (RM'mil) 114.0 Retail Hotel Office Others 80.0 72.4 69.8 70.0 60.0 50.0 40.0 30.0 20.0 13.1 11.5 9.6 10.8 10.3 10.0 5.7 5.1 4.3 4.5 5.2 5.0 2.5 1.4 3.2 1.2 1.2 - 0.9 1.4 1.1 - 0.6 0.9 2.5 1.7 - - Sunway Sunway SCI Sunway Sunway Pyr
Slide 17: 2Q 2016 Revenue Contribution (Cont'd)
2Q 2016 Revenue Contribution (Cont’d) Explanation: * 1 Sunway Pyramid – Recorded gross revenue growth of 3.7% or RM2.6 million for 2Q 2016 compared to 2Q 2015 mainly due to higher average net rent per sq. ft. 2 Sunway Carnival – Gross revenue was higher by 4.9% or RM0.5 million for 2Q 2016 compared
Slide 18: 2Q 2016 Revenue Contribution (Cont'd)
2Q 2016 Revenue Contribution (Cont’d) 2Q 2016 By segment By Property % Others Office 3.9% 5.7% Sunway Pyramid 54.9% Hotel 16.5% Sunway Carnival 8.2% SCI Hypermarket 0.9% Retail Sunway Putra Mall 9.9% 73.9% Sunway Resort Hotel & Spa 8.7% Pyramid Tower East* 4.3% Sunway Hotel Seberang Jaya 0.7% By loc
Slide 19: YTD 2Q 2016 Revenue Contribution
YTD 2Q 2016 Revenue Contribution YTD 2Q 2016 (RM'mil) 253.1 YTD 2Q 2015 (RM'mil) 227.8 By segment 250.0 13.5% 200.0 184.5 RM'million 162.5 150.0 23.0% 100.0 23.9% 4.0% 42.3 34.4 50.0 20.9 15.9 10.4 10.0 - Retail Hotel Office Others YTD 2Q 2016 YTD 2Q 2015 Driving values through sustainable growth 19
Slide 20: YTD 2Q 2016 Revenue Contribution (Cont'd)
YTD 2Q 2016 Revenue Contribution (Cont’d) YTD 2Q 2016 (RM'mil) 253.1 YTD 2Q 2015 (RM'mil) 227.8 Retail Hotel Office Others 160.0 144.4 138.9 140.0 120.0 100.0 80.0 60.0 40.0 21.3 20.9 22.9 16.4 18.7 20.0 11.8 10.6 10.4 10.0 8.7 9.0 6.8 2.4 2.4 0.3 1.8 2.6 3.9 2.5 1.9 - 2.0 1.8 5.1 3.4 - - Sunway Sun
Slide 21: YTD 2Q 2016 Revenue Contribution (Cont'd)
YTD 2Q 2016 Revenue Contribution (Cont’d) Explanation: 1 Sunway Pyramid, Sunway Carnival, Sunway Putra Mall, Sunway Hotel Seberang Jaya, Sunway Putra Hotel, Sunway Hotel Georgetown, Menara Sunway, Sunway Tower, Sunway Putra Tower and Wisma Sunway – As per explanation on page 17. 2 Sunway Resort Hote
Slide 22: YTD 2Q 2016 Revenue Contribution (Cont'd)
YTD 2Q 2016 Revenue Contribution (Cont’d) YTD 2Q 2016 By segment By Property % Others Office 4.1% 6.3% Sunway Pyramid 57.2% Hotel 16.7% Sunway Carnival 8.4% SCI Hypermarket 0.9% Retail 72.9% Sunway Putra Mall 6.5% Sunway Resort Hotel & Spa 9.0% Pyramid Tower East* 4.7% Sunway Hotel Seberang Jaya 0.7
Slide 23: 2Q 2016 NPI Contribution
2Q 2016 NPI Contribution NPI Margin 2Q 2016 (RM'mil) 97.1 73.6% 2Q 2015 (RM'mil) 86.7 76.1% By Segment 15.4% 80.0 67.3 70.0 58.3 RM'million 60.0 50.0 40.0 24.6% 30.0 43.3% 20.8 4.0% 16.7 20.0 6.7 5.2 5.0 10.0 3.8 - Retail Hotel Office Others 2Q 2016 2Q 2015 Driving values through sustainable growth
Slide 24: 2Q 2016 NPI Contribution (Cont'd)
2Q 2016 NPI Contribution (Cont’d) NPI Margin 2Q 2016 (RM'mil) 97.1 73.6% 2Q 2015 (RM'mil) 86.7 76.1% Retail Hotel Office Others 60.0 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 Sunway Sunway Sunway Sunway Sunway SCI Sunway Pyramid Hotel Sunway Menara Sunway Sunway Wisma Reso
Slide 25: 2Q 2016 NPI Contribution (Cont'd)
2Q 2016 NPI Contribution (Cont’d) Explanation: 1 Sunway Pyramid – Net property income increased by RM0.5 million compared to preceding year same quarter due to higher revenue, partially offset by higher advertising and promotional expenses as well as staff costs. 2 Sunway Carnival – Slight decrease
Slide 26: 2Q 2016 NPI Contribution (Cont'd)
2Q 2016 NPI Contribution (Cont’d) By segment 2Q 2016 By Property % Office 3.9% Others 5.4% Hotel Sunway Pyramid 57.7% 21.4% Sunway Carnival 7.5% SCI Hypermarket 1.3% Retail 69.3% Sunway 0.0% Sunway Resort Hotel & Spa 12.4% Pyramid Tower East* 6.2% Sunway Hotel Seberang Jaya 1.0% By location Kuala Lu
Slide 27: YTD 2Q 2016 NPI Contribution
YTD 2Q 2016 NPI Contribution NPI Margin YTD 2Q 2016 (RM'mil) 187.0 73.9% YTD 2Q 2015 (RM'mil) 173.2 76.0% By Segment 10.8% 160.0 140.0 128.3 115.8 RM'million 120.0 100.0 80.0 20.6% 60.0 43.2% 40.4 4.0% 33.5 40.0 13.9 10.4 10.0 20.0 7.9 - Retail Hotel Office Others YTD 2Q 2016 YTD 2Q 2015 Driving val
Slide 28: YTD 2Q 2016 NPI Contribution (Cont'd)
YTD 2Q 2016 NPI Contribution (Cont’d) NPI Margin YTD 2Q 2016 (RM'mil) 187.0 73.9% YTD 2Q 2015 (RM'mil) 173.2 76.0% Retail Hotel Office Others 120.0 100.0 80.0 60.0 40.0 20.0 - (20.0) Sunway Sunway Sunway Sunway Sunway Sunway SCI Sunway Pyramid Hotel Sunway Menara Sunway Sunway Wisma Resort Hotel Hot
Slide 29: YTD 2Q 2016 NPI Contribution (Cont'd)
YTD 2Q 2016 NPI Contribution (Cont’d) Explanation: 1 Sunway Pyramid and Sunway Carnival – As per explanation on page 25. 2 Sunway Putra Mall, Sunway Resort Hotel & Spa, Pyramid Tower East, Sunway Hotel Seberang Jaya, Sunway Putra Hotel, Sunway Hotel Georgetown, Menara Sunway, Sunway Tower, Sunway Pu
Slide 30: YTD 2Q 2016 NPI Contribution (Cont'd)
YTD 2Q 2016 NPI Contribution (Cont’d) By segment YTD 2Q 2016 % Office Others By Property 4.2% 5.6% Hotel Sunway Pyramid 58.6% 21.6% Sunway Carnival 7.5% Retail SCI Hypermarket 1.3% 68.6% Sunway 0.0% Sunway Resort Hotel & Spa 12.3% Pyramid Tower East* 6.4% Sunway Hotel Seberang Jaya 0.9% By location
Slide 31: Resilient Income Stream
Resilient Income Stream Well spread-out lease expiry profile and diverse tenant base WALE 1 as at 31 December 2015 – 2.15 years Top 10 tenants contribute approximately 12.3% of total revenue Projected tenancy expiry of portfolio 2 Top 10 tenants ³ Total Top 10 Tenants 12.3% 60.0% GCH Retail (M) Sdn
Slide 32: 4. 2Q 2016 Property Performance
4. 2Q 2016 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 100.0% 98.6% 60.0% 98.5% 98.3% 98.1% 98.2% 97.8% 97.9% 50.0% 95.0% 40.0% 90.0% 30.0% 85.0% 20.0% 80.0% 10.0% 6.9% 56.9% 24.2% 8.1% 1.4% 75.0% 0.0% Jun-11 Jun-12 Jun-13 Jun
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 12.1% 21.9% Aeon Co (M) Bhd 2.1% 36.8% Parkson Corporation Sdn Bhd 1.6% TGV Cinemas Sdn Bhd 1.5% 6.6% Padini Dot Com Sdn Bhd 1.3% 4.4% Sunway Resort Hotel Sdn Bhd 5.1% 1.1% (Convention Centre)
Slide 35: Retail Properties: Sunway Carnival Shopping Mall
RETAIL PROPERTIES SUNWAY CARNIVAL SHOPPING MALL Historical occupancy rates Projected lease expiry schedule Average occupancy rate 100.0% 60.0% 98.4% 97.4% 97.3% 94.0% 50.0% 95.0% 92.0% 91.2% 90.6% 40.0% 90.0% 30.0% 85.0% 20.0% 80.0% 10.0% 23.5% 50.9% 12.7% 6.0% 1.0% 75.0% 0.0% Jun-11 Jun-12 Jun-13 J
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 9.0% 23.2% 26.3% Sam's Groceria Sdn Bhd 2.4% Sunway Hotel (Seberang Jaya) Sdn Bhd 2.2% (Convention Centre) 9.5% Life Habitat Sdn Bhd (Studio) 1.6% C.H.I. Fitn
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-11 Jun-12 Jun-13 Jun-14 Jun-15 YTD 2Q YTD 2Q 2016 2015 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 100.0% 60.0% # # 84.9% 82.4% 79.8% 50.0% 80.0% 69.8% 40.0% 60.0% 30.0% 40.0% 20.0% 20.0% 17.6% 10.0% 0.0%* 0.0%* 3.1% 57.7% 21.7% 2.4% 0.0% 0.0% Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 YT
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 20.6% TGV Cinemas Sdn Bhd 4.7% 23.0% GCH Retail (M) Sdn Bhd (Cold Storage) 2.6% 38.2% H&M Retail Sdn Bhd 2.3% 3.7% Padini Dot Com Sdn Bhd 2.1% 3.7% 4.7% Parenthood Venture Sdn Bhd 1.8% 2.6% Jerasia Fashio
Slide 40: Hospitality Properties: Sunway Resort Hotel & Spa
HOSPITALITY PROPERTIES SUNWAY RESORT HOTEL & SPA Historical occupancy rate Average occupancy rate Average occupancy rate (%) 90.0% 90.0% 87.4% 84.6% 85.0% 78.8% 85.0% 78.0% 80.0% 76.0% 81.8% 80.9% 81.1% 75.0% 71.3% 69.4% 80.0% 70.0% 66.7% 65.0% 75.6% 75.0% 74.0% 60.0% 55.0% 50.0% 70.0% Jun-10 Jun-11
Slide 41: Hospitality Properties: Pyramid Tower East
HOSPITALITY PROPERTIES PYRAMID TOWER EAST (formerly known as PYRAMID TOWER HOTEL) Historical occupancy rate Average occupancy rate Average occupancy rate (%) 85.0% 83.1% 95.0% 82.4% 80.9% 81.4% 92.0% 80.0% 78.7% 80.0% 90.0% 75.0% 85.0% 83.7% 70.0% 79.8% 80.3% 80.0% 65.0% 75.3% 60.0% 75.0% 73.8% 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% 80.0% 80.0% 77.6% 70.2% 69.6% 75.7% 67.8% 70.0% 62.1% 69.7% 70.0% 60.0% 64.1% 51.6% 60.2% 50.0% 60.0% 55.2% 40.0% 50.0% Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Y
Slide 43: Hospitality Properties: Sunway Hotel Georgetown
HOSPITALITY PROPERTIES SUNWAY HOTEL GEORGETOWN Historical occupancy rate Average occupancy rate Average occupancy rate (%) 90.0% 80.0% # 76.2% 80.0% 76.0% 75.0% 74.1% 70.5% 70.4% 71.4% 69.1% 70.0% 68.8% # 70.2% 70.0% 68.7% * 67.4% 60.0% 54.7% 65.0% 50.0% 40.0% 60.0% Jun-15 * # # # # Jun-11 Jun-12 Ju
Slide 44: Hospitality Properties: Sunway Putra Hotel
HOSPITALITY PROPERTIES SUNWAY PUTRA HOTEL Historical occupancy rate Average occupancy rate Average occupancy rate (%) 70.0% 50.0% 59.0% 60.2% 45.0% 60.0% 45.0% 50.0% 42.6% 40.0% 36.5% 36.4% 40.5% 40.0% 35.0% 31.6% 28.8% 30.0% 30.0% 25.2% 20.0% 25.0% 22.3% 10.0% 20.0% 0.0% 15.0% Jun-12 * Jun-13 Jun-1
Slide 45: Office Properties: Menara Sunway
OFFICE PROPERTIES MENARA SUNWAY Historical occupancy rates Projected lease expiry schedule Average occupancy rate 99.7% 100.0% 98.5% 98.9% 98.8% 75.0% 97.1% 97.4% 95.1% 95.0% 60.0% 90.0% 45.0% 85.0% 30.0% 80.0% 15.0% 0.7% 3.7% 7.1% 67.5% 16.1%* 75.0% 0.0% Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 YTD 2Q YT
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 79.5% 8.6% 2.0% 3.2% Sunway Management Sdn Bhd 17.0% 3.2% 29.4% Sunway Integrated Properties Sdn 16.7% Bhd (IH) 7.1% Sunway Construction Sdn Bhd 10.3% Sunway Shared Services Sdn Bhd 7.9% 7.3% Merck Sdn B
Slide 47: Office Properties: Sunway Tower
OFFICE PROPERTIES SUNWAY TOWER Historical occupancy rates Projected lease expiry schedule Average occupancy rate 100.0% 97.0% 5.0% 93.5% 83.0% 84.3% 80.0% 4.0% 69.8% 66.9% 60.0% 3.0% 40.0% 2.0% 20.9% 20.0% 1.0% 2.6% 3.3% 4.0% 0.5% 0.0% 0.0% Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 YTD 2Q YTD 2Q FY2016 FY2
Slide 48: Sunway Tower (Cont'd)
OFFICE PROPERTIES SUNWAY TOWER (Cont’d) Tenant mix 1 Top 10 tenants 1 Total Top 10 Tenants 100.0% Royal Danish Embassy 23.2% 23.2% 27.4% ACCA Malaysia Sdn Bhd 22.3% R1 International Sdn Bhd 13.9% Zhuojian Associates S/B 13.1% 13.1% WPP Business Services Sdn Bhd 12.4% 22.4% San Francisco Coffee Sdn B
Slide 49: Office Properties: Sunway Putra Tower
OFFICE PROPERTIES SUNWAY PUTRA TOWER Historical occupancy rates Projected lease expiry schedule Average occupancy rate 98.7% 100.0% 16.0% 85.2% 78.0% 76.1% 80.0% 74.2% 12.0% 60.0% 52.8% 8.0% 40.0% 26.7% 4.0% 20.0% 8.6% 15.7% 0.5% 1.9% 0.0% 0.0% Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 YTD 2Q YTD 2Q FY2016
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% Kementerian Perdagangan Dalam 2.0% Negeri Koperasi Dan 58.4% 5.2% 4.3% Kepenggunaan Malaysia Jabatan Perdana Menteri (I.C.U) 14.1% Jabatan Pengairan & Saliran 13.9% Malaysia (JPS) Chini Enterprise Sdn B
Slide 51: Office Properties: Wisma Sunway
OFFICE PROPERTIES WISMA SUNWAY Historical occupancy rates Projected lease expiry schedule Average occupancy rate 100.0% 40.0% 91.3% 89.8% 88.9% 90.0% 88.7% 86.9% 85.1% 30.0% 80.9% 80.0% 20.0% 70.0% 10.0% 60.0% 31.2% 25.8% 32.7% 3.0% 50.0% 0.0% Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 YTD 2Q YTD 2Q FY2016
Slide 52: Wisma Sunway (Cont'd)
OFFICE PROPERTIES WISMA SUNWAY (Cont’d) Tenant mix 1 Top tenants 1 Total Top Tenants 100.0% Jabatan Kesihatan Negeri Selangor 34.1% 3.4% 2.6% Jabatan Alam Sekitar 29.4% Lembaga Hasil Dalam Negeri 14.7% Yayasan Penyelidikan Transformasi 5.6% Pejabat Tindakan Pelancongan 5.1% Negeri Selangor S/jaya Ko
Slide 53: 5. Market Outlook
5. Market Outlook Driving values through sustainable growth 53
Slide 54: General Outlook
General Outlook o The global economy expanded at a moderate pace in the third quarter of CY2015, reflecting a modest growth in the US and further slowdown in the emerging economies. Downside risks to global growth remain elevated arising from moderation of growth momentum, volatile commodity prices
Slide 55: General Outlook
General Outlook o Inflationary pressure trended lower since its recent peak in July 2015 to 2.6% in November 2015, bringing the first eleven months of CY2015 consumer price index (“CPI”) to 2.0%. The increase was primarily led by higher food, electricity and fuel costs but mitigated by lower commodi
Slide 56: Retail
Retail o Retail Group Malaysia (“RGM”) has trimmed its forecast for CY2015 retail sales for the 5th consecutive time due to lacklustre retail figures achieved in the 2Q and 3Q of CY2015. RGM anticipates retail sales growth of 2.0% for CY2015, down from an earlier estimate of 3.1%. The downward revis
Slide 57: Retail (Cont'd)
Retail (Cont’d) o The average occupancy rate for Sunway Carnival Shopping Mall was largely unchanged at 94.0% for YTD 2QFY2016 (1QFY2016: 94.3%) due to remodeling of 2nd floor area of approximately 21,000 sq.ft. (equivalent to 4% of total NLA) into food and beverage (“F&B”) area which is targeted to
Slide 58: Hotel
Hotel o Following a 9.4% decline in tourists arrivals in 1HCY2015, we believe that Tourism Malaysia is behind its targets of achieving 29 million tourist arrivals for CY2015. The Malaysian government has further forecasted that tourist arrivals will reach 30.5 million in CY2016 contributing RM103 bi
Slide 59: Hotel (Cont'd)
Hotel (Cont’d) o The average occupancy rate for Sunway Putra Hotel rebounded to 45.0% in 2QFY2016, from 31.6% in 2QFY2015 upon completion of refurbishment of the hotel in December 2015 and boosted by seasonal demand during the quarter. Following the completion of the 3-in-1 mixed use Sunway Putra, t
Slide 60: Office
Office o The office segment in the Klang Valley continued to be swamped by new supply of office space despite the oversupply environment. In 3QCY2015, Klang Valley’s office stock increased marginally from 108.47 million sq.ft. in 2QCY2015 to 108.97 million sq.ft. Office stock is expected to increase
Slide 61: Office (Cont'd)
Office (Cont’d) o The average occupancy rate for Sunway Putra Tower was maintained at 26.7% in 2QFY2016 compared to 1QFY2016. The asset manager continues to proactively seek new tenants in order to improve the occupancy of the office tower. o Wisma Sunway continued to demonstrate improvement in 2QFY
Slide 62: 6. Investor Relations
6. Investor Relations Driving values through sustainable growth 62
Slide 63: Unit Price Performance - IPO to 2Q2016
Unit Price Performance - IPO to 2Q2016 Unit Price Performance of Sunway REIT versus Benchmarks (8 July 2010 – 31 December 2015) 100.0% TR/GPR/APREA Composite REIT Index Malaysia 87.8% 80.0% 60.0% Sunway REIT 62.2% 40.0% 20.0% FBM KLCI 28.6% 0.0% Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 1
Slide 64: Unit Price Performance – Year-to-date 2Q2016
Unit Price Performance – Year-to-date 2Q2016 Unit Price Performance of Sunway REIT versus Benchmarks (30 June 2015 – 31 December 2015) 8.0% TR/GPR/APREA Composite REIT 4.0% Index Malaysia 1.9% 0.0% Jun 2015 Dec 2015 -4.0% FBM KLCI -0.8% -8.0% Sunway REIT -5.2% -12.0% Performance Statistics (30 June
Slide 65: Unitholders' Composition
Unitholders’ Composition (as at 31 December 2015) Retail Foreign 11.4% 12.6% Sunway Berhad 37.3% Institutions 51.3% Domestic 87.4% December 2015 September 2015 Q-o-Q Change No of unitholders 9,665 8,974 +691 (+7.7%) Retail unitholders 11.4% 11.0% +0.4% Foreign unitholders 12.6% 14.3% -1.7% Sunway Be
Slide 66: Comparative Yields for Various Assets
Comparative Yields for Various Assets 8.0% 7.24%2 7.0% 6.75%5 6.30%1 6.0% 5.0% 4.17%3 4.0% 3.31%4 3.25%3 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 FY2016 DPU forecast of 9.2 sen (Source: Bloomberg) 2 Information base
Slide 67: Thank You
THANK YOU Driving values through sustainable growth
Sunway Real Estate Investment Trust — 2Q FY2016 Earnings Presentation on 6ix