Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — Q1 2024 Earnings Presentation
36 slides from Sunway Real Estate Investment Trust's earnings presentation, May 16, 2024
Slide 1: Financial Results 1st Quarter ended 31 March 2024
FINANCIAL RESULTS 1st Quarter ended 31 March 2024 (FYE 31 December 2024) Date: 16 May 2024 0
Slide 2: Table of Contents
Table of Contents 1. Financial Highlights (Q1 2024) 2. Financial Results (Q1 2024) 3. Segmental Financial Results (Q1 2024) 4. Market Outlook (Q1 2024) 5. Investor Relations (Q1 2024) Appendix I – Property Performance Empowering Businesses • Curating Experiences • Enriching Lives 1
Slide 3: Financial Highlights (Q1 2024)
FINANCIAL HIGHLIGHTS (Q1 2024) Empowering Businesses • Curating Experiences • Enriching Lives 2
Slide 4: Financial Highlights – Q1 2024 vs Q1 2023
Financial Highlights – Q1 2024 vs Q1 2023 Highlights Q1 2024 Q1 2023 No. of Properties 19 20 @ Property Value (RM'billion) 9.016 9.136 Units in Circulation (Units) 3,424,807,700 3,424,807,700 Unit Price as at 31 Mar 2024/2023 (RM) 1.52 1.60 Market Capitalisation (RM'billion) 5.206 5.480 Net Asset Va
Slide 5: Financial Highlights Q1 2024 vs Q1 2023 (QTD & YTD)
Financial Highlights Q1 2024 vs Q1 2023 (QTD & YTD) Reported in RM’000 Quarter Variance Q1 2024 vs Q1 2023 The lower Revenue was mainly resulting from the services segment with 2.3% absence of rental income from Sunway RM4.2m Medical Centre (Tower A & B) of RM6.6 million following the completion of
Slide 6: Financial Results (Q1 2024)
FINANCIAL RESULTS (Q1 2024) Empowering Businesses • Curating Experiences • Enriching Lives 5
Slide 7: Statement of Comprehensive Income – Consolidated
Statement of Comprehensive Income – Consolidated Q1 2024 Q1 2023 Change 1. Interest income for Q1 2024 was higher compared RM'000 RM'000 % to Q1 2023 resulting from higher cash balance and Revenue 178,589 182,803 -2.3% higher placement interest rate with the 25bps OPR Property operating expenses (48
Slide 8: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 31 Mar 2024 31 Dec 2023 31 Mar 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 1 Net cash from operating activities for Q1 2024 of RM123.8 31.03.2024 31.03.2023 * million mainly comprise of cash receipt from lessees and RM'000 RM'000 tenants, partially offset by cash paid for operating expenses. Cash flows from op
Slide 10: Financing Profile as at 31 March 2024
Financing Profile as at 31 March 2024 Facility Limit Utilised Amount RM'mil RM'mil Commercial Paper 3,000.0 390.0 Unrated MTNs 600.0 10,000.0 1 Unrated MTNs 300.0 Total Current 1,290.0 Revolving Loan (RM) 2,000.0 2 1,950.0 Unrated MTNs 10,000.0 1 630.0 Total Non Current 2,580.0 Amortization of CP ex
Slide 11: Financing Profile as at 31 March 2024 (Cont’d)
Financing Profile as at 31 March 2024 (Cont’d) Empowering Businesses • Curating Experiences • Enriching Lives 10
Slide 12: Segmental Financial Results (Q1 2024)
SEGMENTAL FINANCIAL RESULTS (Q1 2024) Empowering Businesses • Curating Experiences • Enriching Lives 11
Slide 13: Retail Segment : Q1 2024
Retail Segment : Q1 2024 Retail Revenue Retail NPI RM 126.3 million (Q1 2024) -3% RM 86.9 million (Q1 2024) vs RM 126.3 million (Q1 2023) vs RM 90.0 million (Q1 2023) The revenue of retail segment for Q1 2024 maintained the same compared to Q1 2023 despite the on-going AEIs in Sunway Pyramid Mall an
Slide 14: Hotel Segment : Q1 2024
Hotel Segment : Q1 2024 Hotel Revenue Hotel NPI 0.275 RM 19.1 million (Q1 2024) RM 18.1 million (Q1 2024) 3% vs RM 18.5 million (Q1 2023) 3% vs RM 17.5 million (Q1 2023) The Hotel segment’s revenue recorded 3% increase attributable to the overall improvement 1 in tourism activity. 1 Closed for refur
Slide 15: Office Segment : Q1 2024
Office Segment : Q1 2024 Office Revenue Office NPI 4% RM 21.3 million (Q1 2024) 3% RM 13.9 million (Q1 2024) vs RM 20.4 million (Q1 2023) vs RM 13.5 million (Q1 2023) The revenue for office segment improved by 4% in Q1 2024, supported by a stable average occupancy rate of 86%. Q1 2024 NPI increased
Slide 16: Services Segment : Q1 2024
Services Segment : Q1 2024 Services Revenue Services NPI -40% RM 9.6 million (Q1 2024) -40% RM 9.6 million (Q1 2024) vs RM 16.0 m (Q1 2023) vs RM 16.0 million (Q1 2023) The revenue and NPI for services segment in Q1 2024 were lower by RM6.4 million or 40% due to the disposal of Sunway Medical Centre
Slide 17: Industrial & Others Segment : Q1 2024
Industrial & Others Segment : Q1 2024 Industrial & Others Revenue Industrial & Others NPI 35% RM 2.3 million (Q1 2024) 48% RM 2.0 million (Q1 2024) vs RM 1.7 million (Q1 2023) vs RM 1.4 million (Q1 2023) The Industrial & others segment recorded a sharp increase in revenue and NPI in Q1 2024, support
Slide 18: Market Outlook (Q1 2024)
MARKET OUTLOOK (Q1 2024) Empowering Businesses • Curating Experiences • Enriching Lives 17
Slide 19: General Outlook
General Outlook Indicator 2024 (F) Q1 2024 2023 2022 2021 Gross Domestic Product (GDP) 4.0% - 5.0% 4 3.9% 5 3.7% 8.7% 3.1% (yoy) Consumer Price Index (yoy) 2.1% - 3.6% 4 1.8% 2 2.5% 3.3% 2.5% Overnight Policy Rate (OPR) 3.0% 3 3.0% 1 3.0% 2.75% 1.75% 1 Source: Bank Negara Malaysia 4 Federal Budget 2
Slide 20: Segmental Outlook – Retail
Segmental Outlook 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 landscape
Slide 21: Segmental Outlook – Hotel
Segmental Outlook 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 improved flight connectivity and resumption of flights to Northeast Asia destinations. Addition
Slide 22: Segmental Outlook – Office
Segmental Outlook 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 entice r
Slide 23: Investor Relations (Q1 2024)
INVESTOR RELATIONS (Q1 2024) Empowering Businesses • Curating Experiences • Enriching Lives 22
Slide 24: Unit Price Performance from IPO to Q1 2024
Unit Price Performance from IPO to Q1 2024 Unit Price Performance of Sunway REIT versus Benchmarks (8 July 2010 – 31 March 2024) Sunway REIT + 68.9% FBM Top 100 Index + 29.5% FBM KLCI + 16.7% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Performance Statistics IPO to Q1 24 Q1
Slide 25: Unitholders’ Composition (as at 31 March 2024)
Unitholders’ Composition (as at 31 March 2024) Foreign Retail 6.8% 7.9% Sunway Berhad 40.9% Institutions & Corporates 51.2% Domestic 93.2% March 2024 December 2023 Q-o-Q Change No. of unitholders 32,892 31,554 +1,338 (+ 4.2%) Retail unitholdings 7.9% 7.6% + 0.3% Foreign unitholdings 6.8% 6.9% - 0.1%
Slide 26: Analysts Recommendation (as at March 2024)
Analysts Recommendation (as at 31 March 2024) 25.0 Average Consensus 23.0 Target Price = 1.71 (Q4 2023: RM1.69) 19.1 18.4 Target Price as at 31 Mar 2024 (RM) 15.8 Upside / Downside to unit price as at 31 Mar 2024 (%) 14.5 13.2 13.2 12.5 11.8 8.6 7.2 5.3 5.3 1.90 1.87 1.81 1.80 1.76 1.74 1.72 1.72 1.
Slide 27: Comparative Yields for Various Assets
Comparative Yields for Various Assets (as at 31 March 2024) 6.58%1 6.20%2 5.50%5 3.87%3 3.00%6 2.70%4 Sunway REIT M-REITs 10-Year MGS Fixed Deposit EPF Yield OPR Note: 1 Distribution yield is computed based on DPU Consensus of 10.0 sen and unit price of RM1.52 as of 31 March 2024 (Source: Sunway REI
Slide 28: Appendix I: Property Performance (Q1 2024 YoY Analysis)
APPENDIX I: PROPERTY PERFORMANCE (Q1 2024 YoY Analysis) Empowering Businesses • Curating Experiences • Enriching Lives 27
Slide 29: Average Occupancy Rate (Q1 2024) – Retail
Average Occupancy Rate (Q1 2024) RETAIL The Retail segment's average occupancy rate dropped marginally from 97% to 95% in Q1 2024, mainly due to progressive closure and fit-out period for ongoing refurbishment in the two major malls, Sunway Pyramid Mall and Sunway Carnival Mall. SunCity Ipoh Hyperma
Slide 30: Projected Lease Expiry Schedule – Retail
Projected Lease Expiry Schedule RETAIL WALE = 1.34 years Sunway Pyramid Mall Sunway Carnival Mall SunCity Ipoh Sunway Putra Mall Based on the total net Based on the total NLA of Hypermarket Based on the total NLA of lettable area (NLA) of 116,464 sq. ft. due for Occupied by single tenant, 237,941 sq
Slide 31: Average Occupancy Rate (Q1 2024) – Hotel
Average Occupancy Rate (Q1 2024) HOTEL WALE = 5.82 years The Hotel segment’s average occupancy rate recorded a marginal growth in Q1 2024, mainly driven by the improvement of tourism activity, demand from corporate and MICE activities, alongside the arrival of domestic and international tourists. Em
Slide 32: Average Occupancy Rate (Q1 2024) – Office
Average Occupancy Rate (Q1 2024) OFFICE The Office segment recorded 4% improvement in the average occupancy rate in Q1 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 Businesse
Slide 33: Projected Lease Expiry Schedule – Office
Projected Lease Expiry Schedule OFFICE WALE = 1.17 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. 14,658 sq. ft. due for 64,783 sq. ft. due
Slide 34: Average Occupancy Rate (Q1 2024) – Services, Industrial & Others
Average Occupancy Rate (Q1 2024) SERVICES, INDUSTRIAL & OTHERS Sunway university & college campus and Sunway REIT Industrial – Shah Alam 1 are occupied by single tenants, in accordance with triple net lease arrangements. Sunway REIT Industrial – Petaling Jaya 1 recorded an average occupancy rate of
Slide 35: 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 36: Thank You
Thank You Empowering Businesses • Curating Experiences • Enriching Lives 35
Sunway Real Estate Investment Trust — Q1 2024 Earnings Presentation on 6ix