Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — Q2 2024 Earnings Presentation
40 slides from Sunway Real Estate Investment Trust's earnings presentation, Aug 15, 2024
Slide 1: Financial Results 2nd Quarter ended 30 June 2024
FINANCIAL RESULTS 2nd Quarter ended 30 June 2024 (FYE 31 December 2024) Date: 15 August 2024 0
Slide 2: Table of Contents
Table of Contents 1. Financial Highlights (Q2 2024) 2. Financial Results (Q2 2024) 3. Segmental Financial Results (Q2 2024) 4. Market Outlook (Q2 2024) 5. Investor Relations (Q2 2024) Appendix I – Property Performance Empowering Businesses • Curating Experiences • Enriching Lives 1
Slide 3: Financial Highlights (Q2 2024)
FINANCIAL HIGHLIGHTS (Q2 2024) Empowering Businesses • Curating Experiences • Enriching Lives 2
Slide 4: Distribution Per Unit (DPU)
Distribution Per Unit (“DPU”) DPU (sen) Details of Income Distribution Distribution Period 1 January 2024 - 30 June 2024 Distribution Per Unit (DPU) (sen) 4.66 Notice of Entitlement 15 August 2024 Ex-Dividend Date 5 September 2024 Book Closure Date 6 September 2024 Payment Date 4 October 2024 DPU fo
Slide 5: 6-Years DPU
6-Years DPU 5-Year DPU CAGR Distribution Yield -0.9% 6.1% (Based on CY 2019 DPU of 9.81 sen) (Based on unit price of RM1.55 as at 28 June 2024 with FY 2024 annualised DPU of 9.39 sen) Empowering Businesses • Curating Experiences • Enriching Lives 4
Slide 6: Financial Highlights – Q2 2024 vs Q2 2023
Financial Highlights – Q2 2024 vs Q2 2023 Highlights Q2 2024 Q2 2023 No. of Properties 25 20 Property Value (RM'billion) 9.663 9.165 @ Units in Circulation (Units) 3,424,807,700 3,424,807,700 Unit Price as at 30 June 2024/2023 (RM) 1.55 1.56 Market Capitalisation (RM'billion) 5.308 5.343 Net Asset V
Slide 7: Financial Highlights Q2 2024 vs Q2 2023 (QTD & YTD)
Financial Highlights Q2 2024 vs Q2 2023 (QTD & YTD) Reported in RM’000 Q2 YoY YTD Variance Variance YTD Q2 2024 vs YTD Q2 2023 The higher Revenue was mainly 1.4% RM4.8m contributed by the retail segment, YTD 354,155 partially offset by the absence of 5.4% or RM9.0m rental from SMC (Tower A & B) as e
Slide 8: Financial Results (Q2 2024)
FINANCIAL RESULTS (Q2 2024) Empowering Businesses • Curating Experiences • Enriching Lives 7
Slide 9: Statement of Comprehensive Income – Consolidated
Statement of Comprehensive Income – Consolidated Q2 2024 Q2 2023 Change YTD 2024 YTD 2023 Change 1. Interest income for YTD Q2 2024 was RM'000 RM'000 % RM'000 RM'000 % higher compared to YTD Q2 2023 Revenue 175,566 166,530 5.4% 354,155 349,333 1.4% contributed by higher cash balance. Property operat
Slide 10: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 30 June 2024 31 Dec 2023 30 June 2024 31 Dec 2023 (Unaudited) (Audited) (Unaudited) (Audited) RM'000 RM'000 RM'000 RM'000 Number of units in circulation ('000) 3,424,808 3,424,808 Assets Non-current assets Net Asset Value ('NAV') attributable to unithol
Slide 11: Statement of Cash Flows – Consolidated
Statement of Cash Flows – Consolidated Cumulative Quarter ended 30.06.2024 30.06.2023 1 Net cash from operating activities for YTD Q2 2024 of RM240.5 million compared to NPI less trust expense of RM'000 RM'000 RM235.1 million mainly comprise of cash receipt from lessees Cash flows from operating act
Slide 12: Financing Profile as at 30 June 2024
Financing Profile as at 30 June 2024 Facility Limit Utilised Amount RM'mil RM'mil Revolving loan (USD) 350.0 354.0 1 Revolving credit (USD) 283.1 1 330.0 Revolving credit (USD) 47.2 1 Commercial Paper 3,000.0 270.0 2 Unrated MTNs 310.0 Unrated MTNs 10,000.0 130.0 Unrated MTNs 300.0 2 Total Current 1
Slide 13: Financing Profile as at 30 June 2024 (Cont'd)
Financing Profile as at 30 June 2024 (Cont’d) Empowering Businesses • Curating Experiences • Enriching Lives 12
Slide 14: Segmental Financial Results (Q2 2024)
SEGMENTAL FINANCIAL RESULTS (Q2 2024) Empowering Businesses • Curating Experiences • Enriching Lives 13
Slide 15: Retail Segment : Q2 2024
Retail Segment : Q2 2024 The revenue of retail segment for Q2 2024 improved compared to Q2 2023 mainly contributed by • strong performance from Sunway Carnival Mall despite its ongoing AEI which is expected to be completed in June 2025; and • inclusion of six Sunway REIT Hypermarkets on 30 April 202
Slide 16: Retail Segment
Retail Segment Regional Malls Neighbourhood Super-Regional Malls Big-Box Retail Malls Local & Population within 50km Population within 20km Population within 10km Target market & international tourists net lettable area NLA > 1 million sq.ft. NLA > 500,000 sq.ft. NLA > 250,000 sq.ft. NLA c. 250,000
Slide 17: Hotel Segment : Q2 2024
Hotel Segment : Q2 2024 Hotel Revenue Hotel NPI 0.275 RM 19.2 million (Q2 2024) RM 18.5 million (Q2 2024) 10% vs RM 17.5 million (Q2 2023) 12% vs RM 16.5 million (Q2 2023) RM 1.8 million Variance RM 2.0 million Variance The Hotel segment’s revenue recorded healthy improvement attributable to the ove
Slide 18: Office Segment : Q2 2024
Office Segment : Q2 2024 Office Revenue Office NPI 2% RM 20.8 million (Q2 2024) 1% RM 13.0 million (Q2 2024) vs RM 20.5 million (Q2 2023) vs RM 12.9 million (Q2 2023) RM 0.3 million Variance RM 0.1 million Variance The slight improvement in both revenue and NPI for the office segment was supported b
Slide 19: Services Segment : Q2 2024
Services Segment : Q2 2024 Services Revenue Services NPI -40% RM 9.6 million (Q2 2024) -40% RM 9.6 million (Q2 2024) vs RM 16.0 million (Q2 2023) vs RM 16.0 million (Q2 2023) RM -6.4 million Variance RM -6.4 million Variance The revenue and NPI for services segment in Q2 2024 were lower by RM6.4 mil
Slide 20: Industrial & Others Segment : Q2 2024
Industrial & Others Segment : Q2 2024 The Industrial & Others segment recorded a sharp increase in revenue and NPI in Q2 2024, supported by an average occupancy rate of 31% for Sunway REIT Industrial – Petaling Jaya 1 in Q2 2024. By 2H 2024, the occupancy for Sunway REIT N/A Industrial – Petaling Ja
Slide 21: Market Outlook (Q2 2024)
MARKET OUTLOOK (Q2 2024) Empowering Businesses • Curating Experiences • Enriching Lives 20
Slide 22: General Outlook – Key Economic Indicators
General Outlook – Key Economic Indicators Indicator 2024 (F) Q2 2024 Q1 2024 2023 2022 2021 Gross Domestic 4.0% - 5.0% 4 5.8% 5 4.2% 3.7% 8.7% 3.1% Product (GDP) (yoy) Consumer Price 2.1% - 3.6% 4 1.9% 2 1.7% 2.5% 3.3% 2.5% Index (yoy) Overnight Policy 3.0% 3 3.0% 1 3.0% 3.0% 2.75% 1.75% Rate (OPR)
Slide 23: General Outlook
General Outlook General Outlook Malaysia started 2024 with stronger growth momentum. Advance estimates for Malaysia’s GDP accelerated to 5.8% in Q2 2024, up from 4.2% in Q1 2024. The Manager approaches the year ahead with optimism. A more stable domestic political landscape will be favourable for th
Slide 24: Segmental Outlook - Retail
Segmental Outlook - Retail 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
Slide 25: Segmental Outlook - Hotel
Segmental Outlook - Hotel 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 the improved flight connectivity and resumption of flights to Northeast Asia destinatio
Slide 26: Segmental Outlook - Office
Segmental Outlook - Office 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
Slide 27: Investor Relations (Q2 2024)
INVESTOR RELATIONS (Q2 2024) Empowering Businesses • Curating Experiences • Enriching Lives 26
Slide 28: Unit Price Performance from IPO to Q2 2024
Unit Price Performance from IPO to Q2 2024 Unit Price Performance of Sunway REIT versus Benchmarks (8 July 2010 – 30 June 2024) Sunway REIT + 72.2% FBM Top 100 Index + 36.2% FBM KLCI + 20.8% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Performance Statistics IPO to Q2 2
Slide 29: Unitholders' Composition (as at 30 June 2024)
Unitholders’ Composition (as at 30 June 2024) Foreign Retail 6.8% 8.0% Sunway Berhad 40.9% Institutions & Corporates 51.1% Domestic 93.2% June 2024 March 2024 Q-o-Q Change No. of unitholders 33,243 32,892 + 1.1% (+ 351) Retail unitholdings 8.0% 7.9% + 0.1% Foreign unitholdings 6.8% 6.8% Unchanged Su
Slide 30: Analysts Recommendation (as at June 2024)
Analysts Recommendation (as at 30 June 2024) 25.2 Average Consensus Target Price = RM1.72 22.6 21.3 (Q1 2024: RM1.71) 20.6 Target Price as at 30 June 2024 (RM) Upside / Downside to unit price as at 30 June 2024 (%) 14.2 14.2 12.3 11.0 10.3 9.7 6.5 5.2 3.2 3.2 1.94 1.90 1.88 1.87 1.77 1.77 1.74 1.72
Slide 31: Comparative Yields for Various Assets
Comparative Yields for Various Assets (as at 30 June 2024) 6.32%1 6.20%2 5.50%5 3.86%3 3.00%6 2.60%4 Sunway REIT M-REITs 10-Year MGS Fixed Deposit EPF Yield OPR Note: 1 Distribution yield is computed based on Consensus DPU of 9.80 sen and unit price of RM1.55 as of 30 June 2024 (Source: Sunway REIT)
Slide 32: Appendix I: Property Performance (YTD Q2 2024 YoY Analysis)
APPENDIX I: PROPERTY PERFORMANCE (YTD Q2 2024 YoY Analysis) Empowering Businesses • Curating Experiences • Enriching Lives 31
Slide 33: Average Occupancy Rate (YTD Q2 2024) Retail
Average Occupancy Rate (YTD Q2 2024) RETAIL The Retail segment's average occupancy rate remained stable at 97% in YTD Q2 2024, mainly supported by the full occupancy from six Sunway REIT hypermarkets, partially offset by the progressive closure and fit-out period for ongoing refurbishment in the two
Slide 34: Projected Lease Expiry Schedule Retail
Projected Lease Expiry Schedule RETAIL WALE = 0.83 year Sunway Pyramid Sunway Carnival Sunway Putra SunCity Ipoh Sunway REIT Mall Mall Mall Hypermarket Hypermarkets Based on the total net Based on the total NLA Based on the total Occupied by Occupied by single lettable area (NLA) of of 116,464 sq. f
Slide 35: Average Occupancy Rate (YTD Q2 2024) Hotel
Average Occupancy Rate (YTD Q2 2024) HOTEL WALE = 5.67 years The Hotel segment’s average occupancy rate recorded a marginal growth in YTD Q2 2024, mainly driven by the improvement of tourism activity, demand from leisure demand and MICE activities, alongside the arrival of domestic and international
Slide 36: Average Occupancy Rate (YTD Q2 2024) Office
Average Occupancy Rate (YTD Q2 2024) OFFICE The Office segment recorded a marginal improvement in the average occupancy rate in YTD Q2 2024, primarily supported by the commencement of new tenants across the office properties, partially offset by the termination of tenants at Sunway Putra Tower. Empo
Slide 37: Projected Lease Expiry Schedule Office
Projected Lease Expiry Schedule OFFICE WALE = 1.25 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 38: Average Occupancy Rate (YTD Q2 2024) Services, Industrial & Others
Average Occupancy Rate (YTD Q2 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
Slide 39: 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 40: Thank You
Thank You Empowering Businesses • Curating Experiences • Enriching Lives 39
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