Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — Q1 2023 Earnings Presentation
35 slides from Sunway Real Estate Investment Trust's earnings presentation, May 3, 2023
Slide 1: Financial Results First Quarter Ended 31 March 2023
FINANCIAL RESULTS First Quarter Ended 31 March 2023 (FYE 31 December 2023) Date: 3 May 2023
Slide 2: Table of Contents
Table of Contents 1. Financial Highlights (1Q2023) 2. Financial Results (1Q2023) 3. Segmental Financial Results (1Q2023) 4. Market Outlook (1Q2023) 5. Investor Relations (1Q2023) Appendix I – Property Performance Empowering Businesses • Curating Experiences • Enriching Lives 1
Slide 3: Financial Highlights (1Q2023)
FINANCIAL HIGHLIGHTS (1Q2023) Empowering Businesses • Curating Experiences • Enriching Lives 2
Slide 4: Financial Highlights – 1Q2023
Financial Highlights – 1Q2023 Highlights 1Q2023 1Q2022 No. of Properties 20 19 Property Value (RM'billion) 9.136 @ 8.879 Units in Circulation (Units) 3,424,807,700 3,424,807,700 Unit Price as at 31 March 2023/2022 (RM) 1.60 1.41 Market Capitalisation (RM'billion) 5.480 4.829 Net Asset Value ("NAV")
Slide 5: Financial Highlights – 1Q2023 (Cont'd)
Financial Highlights – 1Q2023 (Cont’d) Reported in RM’000 Higher Revenue mainly contributed by the retail 18.7% segment resulting from higher retail footfall and RM28.8m encouraging tenant sales. Tenant sales saw its highest recorded amount in January 2023. Higher Net Property Income was in line wit
Slide 6: Financial Results (1Q2023)
FINANCIAL RESULTS (1Q2023) Empowering Businesses • Curating Experiences • Enriching Lives 5
Slide 7: Statement of Comprehensive Income – Consolidated
Statement of Comprehensive Income – Consolidated 1Q2023 1Q2022 Change 1. Interest income for 1Q2023 was higher compared RM'000 RM'000 % to 1Q2022 resulting from higher placement rate with Revenue 182,803 153,970 18.7% 100bps OPR hike in FY 2022. Property operating expenses (44,497) (35,050) 27.0% Ne
Slide 8: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 31.03.2023 31.12.2022 31.03.2023 31.12.2022 (Unaudited) (Audited) (Unaudited) (Audited) RM'000 RM'000 Units in circulation ('000 units) 3,424,808 3,424,808 Assets Non-current assets Net Asset Value ("NAV") attributable to unitholders (RM'000): Investmen
Slide 9: Statement of Financial Position – Consolidated (Cont'd)
Statement of Financial Position – Consolidated (Cont’d) 1. Investment properties increased by RM34.6 million mainly resulting from the on-going capital expenditure for Sunway Carnival Mall and Sunway Resort Hotel. 2. Investment properties – accrued lease income is in relation to unbilled lease incom
Slide 10: Statement of Cash Flows – Consolidated
Statement of Cash Flows – Consolidated First Quarter ended 31.03.2023 31.03.2022 1 Net cash from operating activities for 1Q2023 of RM115.3 * million mainly comprise of cash receipt from lessees and tenants RM'000 RM'000 as well as refundable deposits partially net off by cash paid for Cash flows fr
Slide 11: Financing Profile as at 31 March 2023
Financing Profile as at 31 March 2023 Facility Limit Utilised Amt RM'mil RM'mil Revolving Loan (USD) USD 75 207.6 1 Unrated MTNs 10,000 1,450.0 2 Total Current 1,657.6 Revolving Loan (RM) 2,000 1,990.0 3 2 Unrated MTNs 10,000 10.0 Total Non Current 2,000.0 Total Gross Borrowings 3,657.6 Unamortised
Slide 12: Financing Profile as at 31 March 2023 (Cont'd)
Financing Profile as at 31 March 2023 (Cont’d) Empowering Businesses • Curating Experiences • Enriching Lives 11
Slide 13: Segmental Financial Results (1Q2023)
SEGMENTAL FINANCIAL RESULTS (1Q2023) Empowering Businesses • Curating Experiences • Enriching Lives 12
Slide 14: Retail Segment: 1Q2023
Retail Segment : 1Q2023 Retail Revenue Retail NPI 28% RM 126.3 million (1Q2023) 28% RM 90.0 million (1Q2023) vs RM 98.4 million (1Q2022) vs RM 70.3 million (1Q2022) 1Q2023 revenue of retail segment increased by RM27.9 million due to the overall improved performance across retail properties, primaril
Slide 15: Hotel Segment: 1Q2023
Hotel Segment : 1Q2023 Hotel Revenue Hotel NPI 0% RM 18.5 million (1Q2023) 1% RM 17.5 million (1Q2023) vs RM 18.5 million (1Q2022) vs RM 17.4 million (1Q2022) 1Q2023 revenue of hotel segment maintained the same level at RM18.5 million, underpinned by the improved performance from Sunway Resort Hotel
Slide 16: Office Segment: 1Q2023
Office Segment : 1Q2023 Office Revenue Office NPI 5% RM 20.4 million (1Q2023) -1% RM 13.5 million (1Q2023) vs RM 19.5 million (1Q2022) vs RM 13.7 million (1Q2022) 1Q2023 revenue of office segment improved marginally by RM0.9 million, supported by the stable occupancy rate. The marginal drop of reven
Slide 17: Services and Industrial & Others Segments: 1Q2023
Services and Industrial & Others Segments : 1Q2023 Services Revenue Industrial & Others Revenue 1% RM 16.0 million (1Q2023) 0% RM 1.7 million (1Q2023) vs RM 15.8 million (1Q2022) vs RM 1.7 million (1Q2022) Services NPI Industrial & Others NPI 1% RM 16.0 million (1Q2023) -20% RM 1.4 million (1Q2023)
Slide 18: Market Outlook (1Q2023)
MARKET OUTLOOK (1Q2023) Empowering Businesses • Curating Experiences • Enriching Lives 17
Slide 19: General Outlook
General Outlook Indicator 2023 (F) 1Q2023 2022 2021 Gross Domestic Product (GDP) 4.5% N/A 8.7% 1 3.1% 1 (y-o-y) Consumer Price Index (y-o-y) 2.8% to 3.8% 4 N/A 3.3% 2 2.5% 2 Overnight Policy Rate (OPR) 3.0% to 3.25% 3 2.75% 2.75% 1.75% 1 GDP growth (Source: Bank Negara Malaysia) 2 Source: Department
Slide 20: 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 1Q2023 as all three malls recorded the highest tenant sales in January 2023 following Chinese New Year festivity shopping. Sunway Car
Slide 21: Segmental Outlook (Cont'd)
Segmental Outlook (Cont’d) Office Segment The Office segment is expected to experience excess with incoming supply. Together with the ongoing trend of supply outstripping demand, it is projected that rental rates and occupancy levels for office buildings will continue to remain challenging. However,
Slide 22: Investor Relations (1Q2023)
INVESTOR RELATIONS (1Q2023) Empowering Businesses • Curating Experiences • Enriching Lives 21
Slide 23: Unit Price Performance from IPO to 1Q2023
Unit Price Performance from IPO to 1Q2023 Unit Price Performance of Sunway REIT versus Benchmarks (8 July 2010 – 31 March 2023) Sunway REIT +77.8% FBM Top 100 Index +16.8% FBM KLCI +8.1% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Mar 2023 Performance Statistics Listing to 1Q202
Slide 24: 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 25: Unitholders' Composition (as at 31 March 2023)
Unitholders’ Composition (as at 31 March 2023) Retail Foreign 6.6% 9.5% Sunway Berhad Institutions 40.9% & Domestic Corporates 90.5% 52.5% March 2023 December 2022 Q-o-Q Change No of unitholders 29,274 29,761 -487 (-1.6%) Retail unitholders 6.6% 6.9% -0.3% Foreign unitholders 9.5% 9.5% Unchanged Sun
Slide 26: Analysts Recommendation (as at March 2023)
Analysts Recommendation (as at 31 March 2023) Average Consensus Target Price = RM1.67 28.1 Target Price as at 31 Mar 2023 (RM) Upside / Downside to unit price as at 31 Mar 2023 (%) 23.3 20.5 19.9 19.2 18.5 16.4 13.7 13.7 9.6 9.6 9.6 9.6 6.2 5.5 3.4 1.87 1.80 1.76 1.74 1.73 1.70 1.60 1.60 1.60 1.75 1
Slide 27: Comparative Yields for Various Assets
Comparative Yields for Various Assets (as at 31 March 2023) 6.81%2 6.06%1 5.35%5 3.89%3 2.70%4 2.75%6 Sunway REIT M-REITs 10-Year MGS Fixed Deposit EPF Yield OPR Note: 1 Distribution yield is computed based on consensus FY 2023 DPU of 9.70 sen and unit price of RM1.60 as at 31 March 2023 (Source: Bl
Slide 28: Appendix I: Property Performance (YTD 1Q2023 YoY Analysis)
APPENDIX I: PROPERTY PERFORMANCE (YTD 1Q2023 YoY Analysis) Empowering Businesses • Curating Experiences • Enriching Lives 27
Slide 29: Average Occupancy Rate (1Q2023) – Retail
Average Occupancy Rate (1Q2023) RETAIL 1% 100% 100% 99% 98% 98% 1% 97% 96% -4% 94% -1% 92% 91% S U N W AY S U N W AY SU N C ITY IPOH S U N W AY R E T AI L S E G ME N T P YR AMI D MAL L C AR N I VAL MAL L H YP E R MAR K E T P U T R A MAL L YTD 1Q2023 YTD 1Q2022 The Retail segment recorded a stable
Slide 30: Projected Lease Expiry Schedule – Retail
Projected Lease Expiry Schedule RETAIL WALE = 1.33 years 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 1,205,858 sq. ft. 362,778 sq. ft. due for renewal Occupied by
Slide 31: Average Occupancy Rate (1Q2023) – Hotel
Average Occupancy Rate (1Q2023) HOTEL WALE = 6.94 years 47% 24% 82% 12% 69% 19% 17% 65% 61% 59% 13% 53% 50% 45% 42% 42% 38% 37% 35% N/A S UNW AY S UNW AY S UNW AY S UNW AY S UNW AY S UNW AY HO T E L R E S O R T HO T E L P YR AMID L AGO O N HO T E L P UT R A HO T E L HO T E L S E GME NT HO T E L HO T
Slide 32: Average Occupancy Rate (1Q2023) – Office
Average Occupancy Rate (1Q2023) OFFICE -1% -8% 100% 100% 98%99% 89%97% -7% -2% 80%87% 82%84% 9% 34% 25% ME N AR A S U N W AY S U N W AY W I S MA S U N W AY 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 YTD 1Q2023 YTD 1Q2022 The Office segment recorded a stable occup
Slide 33: Projected Lease Expiry Schedule – Office
Projected Lease Expiry Schedule OFFICE WALE = 1.47 years Menara Sunway Sunway Putra Wisma Sunway Sunway Tower Tower Sunway Pinnacle Based on the total Based on the total Based on the total Based on the total Based on the total NLA of 73,615 sq. ft. NLA of 14,462 sq. ft. NLA of 151,258 sq. NLA of 134
Slide 34: 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 35: Thank You
Thank You Empowering Businesses • Curating Experiences • Enriching Lives 34
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