Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — Investor Day (December 2024)
34 slides from Sunway Real Estate Investment Trust's investor day presentation, Dec 2, 2024
Slide 1: Sunway REIT : Reimagining Growth
Sunway REIT : Reimagining Growth 2 December 2024 Empowering Businesses • Curating Experiences • Enriching Lives
Slide 2: Management of Sunway REIT
Management of Sunway REIT Clement Chen Kok Peng Ng Bee Lien Crystal Teh Lay Ling Angeline Sie Ing Swan Chief Executive Officer Chief Financial Officer Head of Investor Relations Head of Sustainability Empowering Businesses • Curating Experiences • Enriching Lives 2
Slide 3: Overview of Sunway REIT
Section A Overview of Sunway REIT Section B Strategy Section C Financial Section D Capital Management Section E Awards Section F Key Takeaways Empowering Businesses • Curating Experiences • Enriching Lives 3
Slide 4: Section A: Overview of Sunway REIT
Section A Overview of Sunway REIT Section B Strategy Section C Financial Section D Capital Management Section E Awards Section F Key Takeaways Empowering Businesses • Curating Experiences • Enriching Lives 4
Slide 5: 27 Assets: One Of The Largest Diversified REITs In Malaysia
One Of The Largest Diversified Real Estate Investment Trusts (REITs) In Malaysia Diversified portfolio across strategic locations Property Value at IPO in Malaysia RM3.5 billion 1. Penang Island 5. Sunway City Total Acquisition since IPO1 • Sunway Hotel Georgetown • RM3.5 billion Sunway Pyramid Mall
Slide 6: Portfolio At A Glance (FY2023)
Portfolio At A Glance (FY2023) Revenue Net Property Income Property Value 2% 1% 1% 8% 6% 11% 11% 12% 10% Portfolio by Portfolio by Portfolio by Revenue Net Property Income Property Value 12% RM705 million1 16% RM516 million1 21% RM9.0 billion2 60% 62% 67% Retail Hotel Office Services Industrial and
Slide 7: Section B: Strategy
Section A Overview of Sunway REIT Section B Strategy Section C Financial Section D Capital Management Section E Awards Section F Key Takeaways Empowering Businesses • Curating Experiences • Enriching Lives 7
Slide 8: Recalibrating Transcend 2027
Recalibrating Transcend 2027 Defining Targets Primary Targets: o Annual Total Return Focused Growth o Premium-to-NAV Core Sector Focus: o Refocusing on the Secondary Targets: core sectors o 5-year average o Leveraging on Growing Portfolio Size retail strength total return Growing property o DPU CAGR
Slide 9: Building a Diversified Retail Portfolio with Enhanced Income Resilience
Building a Diversified Retail Portfolio with Enhanced Income Resilience Super-Regional Malls Regional Malls Neighbourhood Malls Big-Box Retail Target market & Local & Population within Population within Population within net lettable area international tourists 50km 20km 10km NLA > 1 million sq.ft.
Slide 10: Key Strategies
Key Strategies Diversified REIT Leverage on unique Organic Growth / strengths across Asset Enhancement retail sector Initiatives Key Strategies Embrace sustainability Opportunistic yield (Environment, Social, accretive acquisitions Governance) Sponsor Pipeline Assets Empowering Businesses • Curating
Slide 11: Organic Growth via Rental Reversion & Increasing Occupancy
Organic Growth via Rental Reversion & Increasing Occupancy Average Rental Reversion & Average Occupancy Rates Weighted Average Lease Expiry (WALE) ¹ Increase in three years including step-up rent Empowering Businesses • Curating Experiences • Enriching Lives 11
Slide 12: Enhancing Portfolio's Existing Assets Through AEIs
Enhancing Portfolio’s Existing Assets Through AEIs (RM0.9 bil since mid-2023) Sunway Hotel Sunway Putra Sunway Resort Hotel Ballroom and Sunway Carnival Mall Sunway Resort Hotel New Wing Refurbishment Sunway Pyramid Mall Seberang Jaya Function Rooms Refurbishment Oasis RM17 mil RM460 mil RM55 mil RM
Slide 13: Enhancing Value Through Active Asset Enhancement Initiatives
Enhancing Value Through Active Asset Enhancement Initiatives Asset Enhancement Initiatives (AEI) / Project period Capital Expenditure Property Development (PD) Space Reconfiguration at Sunway Pyramid Mall - Q4 2023 – Q4 2024 RM190 million Oasis Refreshing Sunway Carnival Mall Q3 2023 – Q3 2025 RM360
Slide 14: AEI success – Transformation and Rebranding for Sunway Resort Hotel
AEI success – Transformation and Rebranding for Sunway Resort Hotel First GreenRE Platinum hotel in Malaysia A transformed ARR per night doubled from RM300 to RM600 5-star hotel located in the heart of More room options introduced, coupled with world-class facilities Sunway City Kuala Lumpur Sustain
Slide 15: Sunway Carnival Mall – Green Field Development Capability Unlocked
Sunway Carnival Mall – Green Field Development Capability Unlocked NLA Sales/sqf Car count increased Parking Bays increased by improved by from approx. >3,000 2x 455,000 sqf to (from 1,000) (dedicated 770,000 sqf 50% ramp) 269 5-year GreenMark tenants ARR Gold Plus & (2023) improved GreenRE from 198
Slide 16: New "Oasis" of Income – Optimising a Low-Yielding Precinct
New “Oasis” of Income – Optimising a Low-Yielding Precinct Average Rental Rate Completion Date > RM16 psf 1 November 2024 Pre-reconfiguration: RM6 psf Committed Occupancy NLA (After): Oasis Exterior 260,000 sq.ft. > 99% NLA (Before): 320,000 sq.ft. Invigorating Tenancy Mix Oasis Interior Oasis Ent
Slide 17: Accelerating Growth with External Acquisitions (RM1.0 bil since mid-2023)
Accelerating Growth with External Acquisitions (RM1.0 bil since mid-2023) Sunway Medical Wisma Sunway REIT Sunway Sunway Sunway Medical IPO Centre Sunway Industrial – university and Pier Centre Sunway 163 (Tower A & B) Shah Alam 1 college campus (Tower A & B) Mall 8 Assets RM313 mil RM62 mil RM92 mi
Slide 18: A Giant Acquisition: Case Study
A Giant Acquisition: Case Study 1) Immediate fair value gain RM73 million ➢ Confirmed lease extensions to 2039 (Kinrara and Putra Heights) and removal of break options to 2030 for Ulu Kelang, Klang and Plentong Purchase Consideration: RM520 million ➢ Securing commitment to stay at USJ1 till 2028 Mar
Slide 19: Pursuing Opportunistic Acquisitions Across Sectors
Pursuing Opportunistic Acquisitions Across Sectors (Proposed Acquisitions) Prai Industrial Sunway 163 Mall Sunway Kluang Mall Bukit Tengah Industrial Park, Location Prai, Penang Location Mont Kiara, Kuala Lumpur Location Kluang, Johor Purchase Purchase Purchase RM66.8 million RM215 million RM158 mil
Slide 20: Section C: Financial
Section A Overview of Sunway REIT Section B Strategy Section C Financial Section D Capital Management Section E Awards Section F Key Takeaways Empowering Businesses • Curating Experiences • Enriching Lives 20
Slide 21: Portfolio Value Creation - Financial Historical Performance
Portfolio Value Creation - Financial Historical Performance 7% CAGR since IPO 7% CAGR since IPO 3% CAGR since IPO 1 2 1 Sunway REIT was established on 20 May 2010 and the acquisition of the initial eight properties was completed on listing date, 8 July 2010. The financial results reported refers to
Slide 22: Total Unitholder's Return since IPO
Total Unitholder’s Return since IPO Total Unitholder’s Return Sunway REIT 100% 226% (July 2010 – October 2024) FBM Emas 40% FBM KLCI 18% July 2010 FP2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FP2021 FY2022 FY2023 31 October 2024 31 Oct IPO FY2011 FY2012 FY2013 FY2014 FY2015
Slide 23: Clear Visibility of Earnings Growth
Clear Visibility of Earnings Growth Property Value Accretion NPI Accretion (RM million) (RM million) 14% 11% 5 599 11 0.1 10.0 14 0.2 42 0.2 0.5 527 9.0 Net DPU impact after 4% interest = 1.14 sen Property Value Giant Portfolio 163 Retail Park Kluang Mall Prai Industrial Property Value NPI Giant Por
Slide 24: Robust Financial Performance YTD Q3 2024
Robust Financial Performance YTD Q3 2024 Q3 2024 Q3 2023 Variance YTD Q3 2024 YTD Q3 2023 Variance YTD Q3 2024 NPI (RM’mil) (RM’mil) (RM’mil) (RM’mil) Revenue 192.1 175.8 9.3% 546.3 525.2 4.0% Retail RM264.9 million ↑ 10% y-o-y Net Property Income 144.3 136.8 5.5% 404.2 391.2 3.3% PBT (realised) to
Slide 25: Section D: Capital Management
Section A Overview of Sunway REIT Section B Strategy Section C Financial Section D Capital Management Section E Awards Section F Key Takeaways Empowering Businesses • Curating Experiences • Enriching Lives 25
Slide 26: Proactive Capital Management
Proactive Capital Management Total Borrowings, Average Cost of Debt and OPR 4.54 4.45 3.93 3.93 3.95 3.98 4.02 3.77 3.85 3.80 3.66 2.98 2.79 3.25 3.25 3.25 3.00 3.00 3.00 3.00 3.00 3.00 3.00 2.75 1.75 1.75 3,445 3,405 3,537 3,636 2,903 3,091 2,142 2,176 2,344 1,573 1,568 1,633 1,742 FP2011 FY2012 FY
Slide 27: Diversified and Strengthened Financing Profile (September 2024)
Diversified and Strengthened Financing Profile (September 2024) Debt Maturity Profile (RM'million) Floating rate Fixed rate 439.1 800.0 240.0 240.0 370.0 300.0 330.0 200.0 240.0 240.0 250.0 240.0 113.2 151.1 100.0 150.0 Oct-24 Nov-24 Mar-25 Apr-25 Sep-25 Feb-26 Mar-26 Apr-26 Jul-27 Jul-28 Jul-29 Jul
Slide 28: Robust Credit Profile backed by Independent Ratings
Robust Credit Profile backed by Independent Ratings RM10.0 billion Medium Term Notes (MTN) AA1(s) Programme – Secured 1 Issuance of the first-in-the-industry Rated Sustainability-linked MTN in July 2024 Issued at 25 – 30 bps RM10.0 billion MTN Programme – 5-year RM250mil @ 3.97% (coupon rate) AA2(s)
Slide 29: Section E: Awards
Section A Overview of Sunway REIT Section B Strategy Section C Financial Section D Capital Management Section E Awards Section F Key Takeaways Empowering Businesses • Curating Experiences • Enriching Lives 29
Slide 30: Awards
Awards The 9th Annual REITS and Real Estate Investment Summit Asia Pacific 2024 PLATINUM AWARD – Best Retail REIT (Malaysia, USD 1 Billion and Above) Minority Shareholder Watchdog Group’s National Corporate Governance & Sustainability Awards 2024 REITs Excellence Award Australasian Reporting Awards
Slide 31: Section F: Key Takeaways
Section A Overview of Sunway REIT Section B Strategy Section C Financial Section D Capital Management Section E Awards Section F Key Takeaways Empowering Businesses • Curating Experiences • Enriching Lives 31
Slide 32: Key Takeaways
Key Takeaways 4 Strong Strong growth 2Revenue financials 3 trajectory RM0.9 billion AEI RM6.2 billion RM546.3 million (as at 31 Oct 2024) RM1.0 billion new NPI acquisition Property Value RM404.2 million > RM10.0 billion GRESB 4-star rating Recovery in hotel segment (as at 31 Oct 2024) DPU (1H 2024)
Slide 33: Thank You
Thank You For further information on this presentation kit, please kindly contact: Sunway REIT Management Sdn Bhd (Manager of Sunway REIT) Email: irsunreit@sunway.com.my Contact: (603) 5639 9645 Website: http://www.sunwayreit.com Empowering Businesses • Curating Experiences • Enriching Lives 33
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
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