Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — Q2 2022 Earnings Presentation
44 slides from Sunway Real Estate Investment Trust's earnings presentation, Aug 18, 2022
Slide 1: Financial Results Second Quarter Ended 30 June 2022
FINANCIAL RESULTS Second Quarter Ended 30 June 2022 (FYE 31 December 2022) Date: 18 August 2022 1
Slide 2: Table of Contents
Table of Contents 1. Financial Highlights (2Q2022) 2. Financial Results (2Q2022) 3. Segmental Financial Results (2Q2022 & YTD 2Q2022) 4. Property Development Activities 5. Market Outlook 6. Investor Relations Appendix I - Property Performance (YTD 2Q2022) Empowering Businesses • Curating Experiences
Slide 3: Financial Highlights (2Q2022)
FINANCIAL HIGHLIGHTS (2Q2022) Empowering Businesses • Curating Experiences • Enriching Lives 3
Slide 4: Distribution Per Unit (DPU)
Distribution Per Unit (“DPU”) DPU (sen) Details of Income Distribution Distribution Period 1 Jan 2022 - 30 June 2022 Distribution Per Unit (DPU) (sen) 4.22 4.22 Notice of Entitlement 18 August 2022 Ex-Dividend Date 2 September 2022 Book Closure Date 5 September 2022 Payment Date 15 September 2022 1.
Slide 5: 5-Year DPU
5-Year DPU 9.57 9.59 7.33 6.10 4.22 5-Year DPU CAGR Distribution Yield ^ -0.4% 6.0% (Based on unit price of RM1.49 as at 30 June 2022) ^ This is derived from annualised distributable income of 8.99 sen per unit (based on distributable income for YTD 2Q2022 of 4.46 sen per unit). Empowering Businesse
Slide 6: Financial Highlights – 2Q2022
Financial Highlights – 2Q2022 Highlights 2Q2022 2Q2021 * No. of Properties 19 18 Property Value (RM'billion) 8.959 8.718 Units in Circulation 3,424,807,700 3,424,807,700 Unit Price as at 30 June 2022/2021 (RM) 1.49 1.43 Market Capitalisation (RM'billion) 5.103 4.897 Net Asset Value ("NAV") Per Unit
Slide 7: Financial Highlights – 1H2022
Financial Highlights – 1H2022 Reported in RM’000 Revenue YTD 298,479 2022 153,970 1 4 4,509 Higher Revenue mainly contributed by the retail segment benefitting from pent-up demand, festive season and 1H YoY 2Q YoY 43.7% or opening of borders which boosted the recovery of retail 39.8% or RM41.1mil RM
Slide 8: Financial Results (2Q2022)
FINANCIAL RESULTS (2Q2022) Empowering Businesses • Curating Experiences • Enriching Lives 8
Slide 9: Statement of Comprehensive Income – Consolidated
Statement of Comprehensive Income – Consolidated 2Q2022 2Q2021 Change YTD 2022 YTD 2021 Change RM'000 RM'000 % RM'000 RM'000 % Rev enue 144,509 103,394 39.8% 298,479 207,660 43.7% Property operating expenses (37,619) (41,046) -8.3% (72,669) (78,295) -7.2% Net property income 106,890 62,348 71.4% 225
Slide 10: Statement of Comprehensive Income – Consolidated (Cont’d)
Statement of Comprehensive Income – Consolidated (Cont’d) 1. Interest income for 2Q2022 was lower compared to 2Q2021 due to lower deposits with financial institutions as progress payments were made for the refurbishment at Sunway Resort (formerly known as Sunway Resort Hotel) and expansion works at
Slide 11: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 30.06.2022 31.12.2021 30.06.2022 31.12.2021 (Unaudited) (Audited) (Unaudited) (Audited) RM'000 RM'000 RM'000 RM'000 ASSETS Non-current assets Units in circulation ('000 units) 3,424,808 3,424,808 Investment properties 8,922,515 1 8,701,745 Investment pr
Slide 12: Statement of Financial Position – Consolidated (Cont’d)
Statement of Financial Position – Consolidated (Cont’d) 1. Investment properties increased by RM220.8 million pursuant to the completion of the acquisition of Sunway Pier on 26 January 2022 as well as on-going capital expenditure mainly for the expansion of Sunway Carnival Mall and Sunway Resort ref
Slide 13: Statement of Cash Flows – Consolidated
Statement of Cash Flows – Consolidated Cumulative Quarter ended 1 Net cash from operating activities for YTD 2Q2022 of 30.06.2022 30.06.2021* RM'000 RM'000 RM213.0 million mainly comprise of cash receipt from lessees and tenants as well as refundable deposits partially OPERATING ACTIVITIES Cash rece
Slide 14: Financing Profile as at 30 June 2022
Financing Profile as at 30 June 2022 Facility Limit Utilised Amt RM'mil RM'mil Revolving Loan (USD) USD 75 294.5 1 Commercial Paper 3,000 100.0 2 Unrated MTNs 10,000 1,300.0 3 Total Current 1,694.5 Revolving Loan (RM) 2,000 1,690.0 4 Unrated MTNs 10,000 10.0 3 Total Non Current 1,700.0 Total Gross B
Slide 15: Financing Profile as at 30 June 2022 (Cont’d)
Financing Profile as at 30 June 2022 (Cont’d) Sources of Debt Revolving Loan (USD) 9% MTN 38% CP/RL 53% Fixed vs Floating Fixed rate 32% Floating rate 68% Empowering Businesses • Curating Experiences • Enriching Lives 15
Slide 16: Segmental Financial Results (2Q2022 & YTD 2Q2022)
SEGMENTAL FINANCIAL RESULTS (2Q2022 & YTD 2Q2022) Empowering Businesses • Curating Experiences • Enriching Lives 16
Slide 17: Segmental Revenue – Retail
Segmental Revenue in 2Q2022 and YTD 2Q2022 – Realised Revenue (by Property) (RM'million) Total Retail Revenue 73% RM 101.4 million (2Q2022) Sunway 78.5 40.3 vs RM 58.6 million (2Q2021) Pyramid 156.0 Mall 78.8 RM 199.8 million (YTD 2Q2022) 9.3 78% Sunway 7.3 vs RM 112.2 million (YTD 2Q2021) Carnival
Slide 18: Segmental Revenue – Hotel
Segmental Revenue in 2Q2022 and YTD 2Q2022 – Realised (Cont’d) Revenue (by Property) (RM'million) 0.1 Total Hotel Revenue Sunway 0.0 Resort 1 -31% RM 6.0 million (2Q2022) 0.6 0.2 vs RM 8.7 million (2Q2021) 0.3 Sunway 0.1 RM 24.5 million (YTD 2Q2022) Pyramid Hotel 0.6 6% vs RM 23.1 million (YTD 2Q202
Slide 19: Segmental Revenue – Office
Segmental Revenue in 2Q2022 and YTD 2Q2022 – Realised (Cont’d) Total Office Revenue Revenue (by Property) (RM'million) 2% RM 19.7 million (2Q2022) 4.3 vs RM 19.3 million (2Q2021) Menara 4.3 Sunway 8.7 RM 39.2 million (YTD 2Q2022) 8.6 2% 0.8 vs RM 38.6 million (YTD 2Q2021) Sunway 1.1 Tower 1.6 2.3 2Q
Slide 20: Segmental Revenue – Services, Industrial & Others
Segmental Revenue in 2Q2022 and YTD 2Q2022 – Realised (Cont’d) Total Services Revenue Total Industrial & Others Revenue 3% RM 15.8 million (2Q2022) 10% RM 1.7 million (2Q2022) vs RM 15.3 million (2Q2021) vs RM 1.5 million (2Q2021) RM 31.6 million (YTD 2Q2022) RM 3.4 million (YTD 2Q2022) 3% 10% vs RM
Slide 21: Segmental NPI and NPI Margin – Retail
Segmental NPI and NPI Margin in 2Q2022 and YTD 2Q2022 – Realised Total Retail NPI NPI (by Property) (RM'million) 181% RM 71.6 million (2Q2022) 62.0 Sunway 18.3 vs RM 25.5 million (2Q2021) Pyramid Mall 122.0 37.3 RM 141.9 million (YTD 2Q2022) 187% 2.7 vs RM 49.5 million (YTD 2Q2021) Sunway 3.4 Carniv
Slide 22: Segmental NPI and NPI Margin – Hotel
Segmental NPI and NPI Margin in 2Q2022 and YTD 2Q2022 – Realised (Cont’d) NPI (by Property) (RM'million) (0.2) Total Hotel NPI (0.4) Sunway -28% RM 5.1 million (2Q2022) Resort 0.3 vs RM 7.0 million (0.6) (2Q2021) 0.2 RM 22.5 million Sunway (0.0) * (YTD 2Q2022) Pyramid 14% Hotel 0.3 vs RM 19.8 millio
Slide 23: Segmental NPI and NPI Margin – Office
Segmental NPI and NPI Margin in 2Q2022 and YTD 2Q2022 – Realised (Cont’d) Total Office NPI NPI (by Property) (RM'million) -2% RM 12.7 million (2Q2022) 2.8 vs RM 12.9 million (2Q2021) Menara 3.0 Sunway 5.5 RM 26.4 million 5.9 (YTD 2Q2022) 0.4% (0.2) vs RM 26.3 million (YTD 2Q2021) 0.1 Sunway Tower 0.
Slide 24: Segmental NPI – Services, Industrial & Others
Segmental NPI and NPI Margin in 2Q2022 and YTD 2Q2022 – Realised (Cont’d) Total Services NPI Total Industrial & Others NPI 3% RM 15.8 million (2Q2022) 10% RM 1.7 million (2Q2022) vs RM 15.3 million (2Q2021) vs RM 1.5 million (2Q2021) RM 31.6 million (YTD 2Q2022) RM 3.4 million (YTD 2Q2022) 3% 10% vs
Slide 25: Property Development Activities (2Q2022)
PROPERTY DEVELOPMENT ACTIVITIES (2Q2022) Empowering Businesses • Curating Experiences • Enriching Lives 25
Slide 26: Property Development Activities
Property Development Activities Sunway Resort Refurbishment Estimated total property development cost RM261.0 million Cummulative cost incurred from initiation RM180.7 million to 2Q2022 Expected completion 3Q2022 NLA (sq. ft.) / Room Additional 20 new guest rooms Property development activities agai
Slide 27: Market Outlook (2Q2022)
MARKET OUTLOOK (2Q2022) Empowering Businesses • Curating Experiences • Enriching Lives 27
Slide 28: General Outlook
General Outlook Indicator 2022 (F) 2Q2022 (A) 1Q2022 (A) 2021 (A) Gross Domestic Product (GDP) 5.3% - 6.3% 8.9% 1 5.0% 3.1% (y-o-y) Consumer Price 2.2% - 3.2% 2.8% 2 2.2% 2.5% Index (y-oy) Overnight Policy 2.50% 4 2.25% 3 1.75% 1.75% Rate (OPR) 1 GDP growth in 2Q2022 (Source: Bank Negara Malaysia) 2
Slide 29: Segmental Outlook
Segmental Outlook Retail Segment o The outlook for retail segment remains positive, underpinned by strong improvement in retail footfall and retail sales which have recovered to pre-pandemic level in 2019. The outlook is further supported by healthy economic growth, sustained domestic consumption, g
Slide 30: Segmental Outlook (cont’d)
Segmental Outlook (cont’d) Office Segment o The Manager expects the office segment to remain resilient as businesses are operating at full capacity in the endemic phase. The Corporate Suite@19, an 30,000 sq.ft. of newly completed office space at Sunway Resort, will further strengthen the income base
Slide 31: Investor Relations (2Q2022)
INVESTOR RELATIONS (2Q2022) Empowering Businesses • Curating Experiences • Enriching Lives 31
Slide 32: Unit Price Performance from IPO to 2Q FY2022
Unit Price Performance from IPO to 2Q FY2022 Unit Price Performance of Sunway REIT versus Benchmarks (8 July 2010 – 30 June 2022) 120% 100% 80% Sunway REIT +65.6% 60% 40% FBM Top 100 Index +12.1% 20% FBM KLCI 0% +9.7% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 June 2022 Performance
Slide 33: Unit Price YTD Performance for FY2022
Unit Price YTD Performance for FY2022 Unit Price Performance of Sunway REIT versus Benchmarks (1 Jan 2022 – 30 June 2022) 12% Sunway REIT 10% +5.7% 8% 6% 4% 2% 0% -2% Bursa Malaysia -4% REIT Index -6% +1.1% -8% -10% FBM KLCI Dec 2021 Mar 2022 -7.9% Jun 2022 Performance Statistics (1 Jan 2022 – 30 Ju
Slide 34: 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 35: Unitholders’ Composition (as at 30 June 2022)
Unitholders’ Composition (as at 30 June 2022) Retail Foreign 6.6% 8.6% Sunway Berhad 40.9% Institutions & Corporates 52.5% Domestic 91.4% June 2022 March 2022 Q-o-Q Change No of unitholders 29,116 30,043 -927 (-3.1%) Retail unitholders 6.6% 6.8% -0.2% Foreign unitholders 8.6% 7.5% +1.1% Sunway Berha
Slide 36: Analysts Recommendation (as at June 2022)
Analysts Recommendation (as at 30 June 2022) Average Consensus 24.8 Target Price = RM1.57 20.6 19.9 Target Price as at 30 Jun 2022 (RM) 18.4 17.7 Upside / Downside to unit price as at 30 Jun 2022 (%) 12.8 9.9 8.5 7.1 7.1 6.4 6.4 6.4 3.5 3.5 2.8 1.76 1.70 1.69 1.67 1.66 1.59 1.55 1.53 1.51 1.51 1.50
Slide 37: Comparative Yields for Various Assets
Comparative Yields for Various Assets (as at 30 June 2022) 6.34%2 6.10%5 5.37%1 4.30%3 2.25%6 1.95%4 Sunway REIT M-REITs 10-Year MGS Fixed Deposit EPF Yield OPR Note: 1 Distribution yield is computed based on consensus FY2022 DPU of 8.00 sen and unit price of RM1.49 as at 30 June 2022 (Source: Bloom
Slide 38: Appendix I: Property Performance (YTD 2Q2022 YoY Analysis)
APPENDIX I: PROPERTY PERFORMANCE (YTD 2Q2022 YoY Analysis) Empowering Businesses • Curating Experiences • Enriching Lives 38
Slide 39: Average Occupancy Rate – Retail
Average Occupancy Rate (YTD 2Q2022) RETAIL WALE = 1.0 year 100% 100% 99% -2% 97% 97% 97% 97% -3% 94% 94% -2% 92% 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 2Q2022 YTD 2Q2021 The Retail segmen
Slide 40: Projected Lease Expiry Schedule – Retail
Projected Lease Expiry Schedule RETAIL * 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 1,404,081 sq. ft. 411,585 sq. ft. due for renewal Occupied by single 197,105
Slide 41: Average Occupancy Rate – Hotel
Average Occupancy Rate (YTD 2Q2022) HOTEL WALE = 7.8 years 22% 33% 56% 50% 39% 24% 19% 47% 45%* 44% 45% 17% 39% 34% 25% 22% 21% 17% 8% N/A S UNW AY S UNW AY S UNW AY C L IO S UNW AY HO T E L S UNW AY P UT R A S UNW AY HO T E L HO T E L RESORT P YR AMID HO T E L S E B E R ANG HO T E L GE O R GE T O W
Slide 42: Average Occupancy Rate – Office
Average Occupancy Rate (YTD 2Q2022) OFFICE WALE = 1.4 years -3% 100% 100% 95% 97% 4% 98% 98% 87% 84% 84% 83% -9% 33% 25% ME NAR A S UNW AY S UNW AY W IS MA T HE O F F IC E S UNW AY TOW ER P UT R A S UNW AY P INNAC L E S E GME NT TO W ER S UNW AY YTD 2Q2022 YTD 2Q2021 The Office segment recorde
Slide 43: Projected Lease Expiry Schedule – Office
Projected Lease Expiry Schedule OFFICE Menara Sunway Sunway Putra Wisma The Pinnacle Sunway Tower Tower Sunway Sunway Based on the total NLA Based on the total Based on the total Based on the total Based on the total NLA of 34,024 sq. ft. due NLA of 43,058 sq. ft. NLA of 112,144 sq. NLA of 31,984 sq
Slide 44: 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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