Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — Q2 FY2018 Earnings Presentation
68 slides from Sunway Real Estate Investment Trust's earnings presentation, Feb 6, 2018
Slide 1: Sunway REIT Financial Results 2nd Quarter Ended 31 December 2017
Sunway REIT Financial Results 2nd Quarter Ended 31 December 2017 (FYE 30 June 2018) Announcement Date: 6 February 2018
Slide 2: 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 3: Table of Contents
Table of Contents 1. Financial Highlights 2. 2Q 2018 Financial Results 3. 2Q 2018 Portfolio Performance 4. 2Q 2018 Property Performance 5. Market Outlook 6. Investor Relations Driving values through sustainable growth 3
Slide 4: 1. Financial Highlights
1. Financial Highlights Driving values through sustainable growth 4
Slide 5: Dividend Distribution Details
Distribution Details Dividend Distribution Details Distribution Period 1 October 2017 - 31 December 2017 1 Distribution Per Unit (DPU) (sen) 2.38 Notice of Entitlement 6 February 2018 Ex-Dividend Date 20 February 2018 Book Closure Date 22 February 2018 Payment Date 8 March 2018 1 Proposed income dis
Slide 6: Financial Highlights
Financial Highlights Highlights 2Q 2018 2Q 2017 No. of Properties 15 14 Property Value (RM'billion) 6.796 6.503 No. of Units in Circulation 2,945,078,000 2,945,078,000 Unit Price as at 31 Dec (RM) 1.90 1.72 Market Capitalisation (RM'billion) 5.596 5.066 Net Asset Value (NAV) Per Unit (RM) 1.4078 1.3
Slide 7: Financial Highlights (Cont'd)
Financial Highlights (Cont’d) Gross Revenue (RM'm) Net Property Income (RM'm) 500.0 300.0 400.0 1 2 11.5% 9.9% 214.4 200.0 190.1 300.0 282.6 255.8 200.0 111.0 103.4 141.1 141.5 100.0 96.0 94.1 128.9 126.9 100.0 - - 1Q 2Q YTD 1Q 2Q YTD 2018 2017 2018 2017 1 Gross Revenue for 2Q2018 increased by 11.5%
Slide 8: Financial Highlights (Cont'd)
Financial Highlights (Cont’d) Profit Before Tax (Realised) (RM'm) DPU (sen) 300.0 10.00 1 8.00 2 4.5% 4.4% 200.0 6.00 148.8 5.05 133.9 4.55 4.00 100.0 2.67 78.7 70.1 2.38 66.8 67.1 2.27 2.28 2.00 - - 1Q 2Q YTD 1Q 2Q YTD 2018 2017 2018 2017 1 Profit Before Tax (Realised) for 2Q2018 increased by 4.5%
Slide 9: 2. 2Q 2018 Financial Results
2. 2Q 2018 Financial Results Driving values through sustainable growth 9
Slide 10: Statement of Comprehensive Income – Consolidated
Statement of Comprehensive Income – Consolidated 1Q 2018 1Q 2017 2Q 2018 2Q 2017 Change YTD 2018 YTD 2017 Change RM'000 RM'000 RM'000 RM'000 % RM'000 RM'000 % Gross revenue 141,169 128,879 141,470 126,880 11.5% 282,639 255,759 10.5% Less : Property operating expenses (30,183) (32,814) (38,103) (32,8
Slide 11: Statement of Comprehensive Income-Consolidated (Cont'd)
Statement of Comprehensive Income-Consolidated (Cont’d) Explanation: 1 Higher other income in 2Q2017 mainly attributable to recognition of Court award for Sunway Putra’s case of RM3.2 million. Excluding the Court award, other income would amount to RM1.9 million. 2 Included in other trust expenses f
Slide 12: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 31.12.17 30.06.17 RM'000 RM'000 ASSETS Non-current assets 1 Investment properties 6,796,012 6,689,200 Plant and equipment 9,201 9,063 6,805,213 6,698,263 Current assets Trade receivables 26,697 16,821 2 Other receivables 37,855 16,153 3 Derivatives - 4
Slide 13: Debt Profile
Debt Profile Facility Limit RM'milion Loan Maturity Profile (RM'm) RM'million 1 1,100.0 Term Loan 422.0 404.8 900.0 Commercial Papers (CP) / 650.0 Revolving Loan (RL) 1,100.0 2 1,100.0 3 700.0 Unrated MTNs 10,000.0 1,300.0 500.0 Total Gross Borrowings 2,804.8 300.0 4 450.0 404.8 400.0 400.0 Discount
Slide 14: 3. 2Q 2018 Portfolio Performance
3. 2Q 2018 Portfolio Performance Driving values through sustainable growth 14
Slide 15: 2Q 2018 Revenue Contribution by Segment
2Q 2018 Revenue Contribution 2Q 2018 (RM'million) 141.5 2Q 2017 (RM'million) 126.9 By segment (RM'm) 160.0 5.1% 140.0 120.0 103.8 98.8 100.0 80.0 54.1% 29.6% 60.0 40.0 22.8 14.8 20.0 7.9 7.9 7.0 5.4 - Retail Hotel Office Others 2Q 2018 2Q 2017 Note: Calculation of % of increase/decrease above varies
Slide 16: 2Q 2018 Revenue Contribution by Property
2Q 2018 Revenue Contribution (Cont’d) 2Q 2018 (RM'million) 141.5 2Q 2017 (RM'million) 126.9 Retail Hotel Office Others 120.0 By property (RM’m) 100.0 80.0 60.0 40.0 20.0 - Sun way Sun way Sun way SCI Sun way Sun way Sun way Sun way Sun way Industrial Sun way Sun way Resort Ho tel Ho tel Men ara Sun
Slide 17: 2Q 2018 Revenue Contribution (Cont'd)
2Q 2018 Revenue Contribution (Cont’d) Explanation: 1 Sunway Pyramid and Sunway Carnival – Higher revenue mainly due to higher average gross rent per sq. ft.. 2 Sunway Resort Hotel & Spa – Higher revenue contributed by higher F&B revenue (mainly from meetings and functions), but partially offset by l
Slide 18: 2Q 2018 Revenue Contribution (Cont'd)
2Q 2018 Revenue Contribution (Cont’d) By Property 2Q 2018 % By segment Others Sunwa y Pyra mi d 55.3% Office 5.0% Sunwa y Ca rni va l 8.2% 5.7% SCI Hyperma rket 0.8% Hotel Sunwa y Putra Ma l l 8.9% 16.1% Tota l Reta i l 73.2% Retail Sunwa y Res ort Hotel & Spa 8.4% 73.2% Sunwa y Pyra mi d Hotel 2.5%
Slide 19: YTD 2Q 2018 Revenue Contribution by Segment
YTD 2Q 2018 Revenue Contribution YTD 2Q 2018 (RM'million) 282.6 YTD 2Q 2017 (RM'million) 255.8 By segment (RM'm) 350.0 4.4% 300.0 250.0 207.3 198.5 200.0 150.0 47.1% 3.9% 25.0% 100.0 45.9 50.0 31.2 15.9 15.3 13.5 10.8 - Retail Hotel Office Others YTD 2Q 2018 YTD 2Q 2017 Note: Calculation of % of inc
Slide 20: YTD 2Q 2018 Revenue Contribution by Property
YTD 2Q 2018 Revenue Contribution (Cont’d) YTD 2Q 2018 (RM'million) 282.6 YTD 2Q 2017 (RM'million) 255.8 Retail Hotel Office Others 240.0 By property (RM’m) 200.0 160.0 120.0 80.0 40.0 - Sun way Sun way Sun way SCI Sun way Sun way Sun way Sun way Sun way Industri Sun way Sun way Resort Ho tel Ho tel
Slide 21: YTD 2Q 2018 Revenue Contribution (Cont'd)
YTD 2Q 2018 Revenue Contribution (Cont’d) Explanation: 1 Sunway Pyramid, Sunway Carnival, Sunway Pyramid Hotel and Sunway REIT Industrial – Shah Alam 1 – Explanations as per page 17. 2 Sunway Putra Mall – Higher revenue mainly due to lower rental rebates given. 3 Sunway Resort Hotel & Spa – Higher r
Slide 22: YTD 2Q 2018 Revenue Contribution (Cont'd)
YTD 2Q 2018 Revenue Contribution (Cont’d) YTD 2Q 2018 By Property % By segment Others Sunway Pyrami d 55.2% Office 4.8% Sunway Carni val 8.3% 5.6% SCI Hypermarket 0.8% Hotel Sunway Putra Mal l 9.2% 16.1% Total Retai l 73.5% Retail Sunway Res ort Hotel & Spa 8.2% 73.5% Sunway Pyrami d Hotel 2.9% Sunw
Slide 23: 2Q 2018 NPI Contribution by Segment
2Q 2018 NPI Contribution NPI Margin 2Q 2018 (RM'million) 103.4 73.1% 2Q 2017 (RM'million) 94.1 74.2% By Segment (RM'm) 100.0 0.1% 80.0 70.9 70.8 60.0 10.0% 57.6% -10.0% 29.6% 40.0 21.9 20.0 13.9 4.0 7.0 5.4 3.6 - Retail Hotel Office Others 2Q 2018 2Q 2017 Note: Calculation of % of increase/decrease
Slide 24: 2Q 2018 NPI Contribution by Property
2Q 2018 NPI Contribution (Cont’d) NPI Margin 2Q 2018 (RM'million) 103.4 73.1% 2Q 2017 (RM'million) 94.1 74.2% Retail Hotel Office Others 65.0 By property (RM’m) 55.0 45.0 35.0 25.0 15.0 5.0 (5.0) Sunway Sunway Sunway Sunway Sunway SCI Sunway Sunway Hotel Sunway Sunway Hotel Menara Sunway Sunway Wism
Slide 25: 2Q 2018 NPI Contribution (Cont'd)
2Q 2018 NPI Contribution (Cont’d) Explanation: 1 Sunway Pyramid – NPI increased by RM1.4 million despite higher revenue of RM4.2 million partially offset by higher maintenance cost of RM1.2 million and allowance for doubtful debts of RM0.5 million (as compared to a reversal of doubtful debts of RM0.
Slide 26: 2Q 2018 NPI Contribution (Cont'd)
2Q 2018 NPI Contribution (Cont’d) 2Q 2018 By Property % By segment Office 3.8% Others Sunway Pyrami d 54.3% 6.8% Sunway Carni val 6.8% SCI Hypermarket 1.0% Sunway Putra Mal l 6.1% Hotel 21.2% Total Retai l 68.2% Retail 68.2% Sunway Res ort Hotel & Spa 11.1% Sunway Pyrami d Hotel 3.4% Sunway Hotel Se
Slide 27: YTD 2Q 2018 NPI Contribution by Segment
YTD 2Q 2018 NPI Contribution NPI Margin YTD 2Q 2018 (RM'million) 214.4 75.9% YTD 2Q 2017 (RM'million) 190.1 74.3% By Segment (RM'm) 240.0 4.8% 200.0 160.0 149.2 142.3 120.0 7.2% 50.2% 25.0% 80.0 44.0 40.0 29.3 7.7 7.7 13.5 10.8 - Retail Hotel Office Others YTD 2Q 2018 YTD 2Q 2017 Note: Calculation o
Slide 28: YTD 2Q 2018 NPI Contribution by Property
YTD 2Q 2018 NPI Contribution (Cont’d) NPI Margin YTD 2Q 2018 (RM'million) 214.4 75.9% YTD 2Q 2017 (RM'million) 190.1 74.3% Retail Hotel Office Others 180.0 160.0 By property (RM’m) 140.0 120.0 100.0 80.0 60.0 40.0 20.0 - (20.0) Sunway SCI Sunway Sunway Sunway Sunway Sunway Sunway Sunway Hotel Sunway
Slide 29: YTD 2Q 2018 NPI Contribution (Cont'd)
YTD 2Q 2018 NPI Contribution (Cont’d) Explanation: 1 Sunway Pyramid, Sunway Pyramid Hotel and Sunway REIT Industrial – Shah Alam 1 – Higher NPI due to higher revenue as explained on page 17. 2 Sunway Resort Hotel & Spa and Sunway Putra Hotel – Higher NPI due to higher revenue as explained on page 21
Slide 30: YTD 2Q 2018 NPI Contribution (Cont'd)
YTD 2Q 2018 NPI Contribution (Cont’d) YTD 2Q 2018 By Property % By segment Office 3.8% Sunway Pyrami d 55.3% Others 6.3% Sunway Carni val 7.0% SCI Hypermarket 0.9% Hotel Sunway Putra Mal l 6.2% 20.5% Total Retai l 69.4% Retail 69.4% Sunway Res ort Hotel & Spa 10.5% Sunway Pyrami d Hotel 3.7% Sunway
Slide 31: Resilient Income Stream
Resilient Income Stream WALE 1 as at 31 December 2017 – 1.90 years Top 10 tenants contribute approximately 13.6% of total revenue Projected tenancy expiry of portfolio 2 Top 10 tenants 4 Total Top 10 Tenants 13.6% 60.0% Parkson Corporation Sdn Bhd 1.9% 51.8% (Parkson, Origin) 50.0% GCH Retail (Malay
Slide 32: 4. 2Q 2018 Property Performance
4. 2Q 2018 Property Performance Driving values through sustainable growth 32
Slide 33: Retail Properties: Sunway Pyramid Shopping Mall
RETAIL PROPERTIES SUNWAY PYRAMID SHOPPING MALL Historical occupancy rates Projected lease expiry schedule Average occupancy rate 50.0% 40.0% 100.0% 98.1% 98.3% 98.0% 98.4% 97.8% 97.7% 30.0% 95.0% 90.0% 20.0% 85.0% 10.0% 80.0% 10.7% 17.4% 55.3% 10.4% 4.6% 0.0% FY2018 FY2019 FY2020 FY2021 Monthly 75.0
Slide 34: Sunway Pyramid Shopping Mall (Cont'd)
RETAIL PROPERTIES SUNWAY PYRAMID SHOPPING MALL (Cont’d) Tenant mix 1 Top 10 tenants 1 14.7% Total Top 10 Tenants Amorepacific Malaysia Sdn Bhd 2.3% (Innisfree, Etude House, Laneige, Sulwhasoo) 24.1% 34.1% Aeon Co. (M) Bhd 2.1% (Aeon) Parkson Corporation Sdn Bhd 1.6% (Parkson, Origin) 7.0% Padini Dot
Slide 35: Retail Properties: Sunway Carnival Shopping Mall
RETAIL PROPERTIES SUNWAY CARNIVAL SHOPPING MALL Historical occupancy rates Projected lease expiry schedule Average occupancy rate 50.0% 40.0% 100.0% 97.3% 97.6% 97.1% 96.2% 94.4% 30.0% 95.0% 92.0% 90.0% 20.0% 85.0% 10.0% 80.0% 23.8% 20.8% 48.8% 3.6% 0.5% 0.0% FY2018 FY2019 FY2020 FY2021 Monthly 75.0
Slide 36: Sunway Carnival Shopping Mall (Cont'd)
RETAIL PROPERTIES SUNWAY CARNIVAL SHOPPING MALL (Cont’d) Tenant mix 1 Top 10 tenants 1 Total Top 10 Tenants 23.0% Parkson Corporation Sdn Bhd 8.9% (Parkson) 24.4% 22.1% Sam's Groceria Sdn Bhd 2.4% (Sam's Groceria) PECC Sdn Bhd 2.0% (Prai Exhibition Convention Centre) Life Habitat Sdn Bhd 1.8% 9.6% (
Slide 37: Retail Properties: Suncity Ipoh Hypermarket
RETAIL PROPERTIES SUNCITY IPOH HYPERMARKET Historical occupancy rates Average occupancy rate 100% 100% 100% 100% 100% 100% 100% 95% 90% 85% 80% 75% Jun-14 Jun-15 Jun-16 Jun-17 YTD 2Q YTD 2Q 2018 2017 Suncity Ipoh Hypermarket is tenanted to a single tenant, a major hypermarket and retailer chain oper
Slide 38: Retail Properties: Sunway Putra Mall
RETAIL PROPERTIES SUNWAY PUTRA MALL Historical occupancy rates Projected lease expiry schedule Average occupancy rate 50.0% 40.0% 100.0% 89.4% 2 86.3% 85.5% 82.4% 30.0% 80.0% 74.9% 60.0% 20.0% 40.0% 10.0% 41.7% 22.8% 5.2% 23.2% 0.5% 20.0% 0.0% 1 FY2018 FY2019 FY2020 FY2021 Monthly 0.0% tenancy 0.0%
Slide 39: Sunway Putra Mall (Cont'd)
RETAIL PROPERTIES SUNWAY PUTRA MALL (Cont’d) Tenant mix 1 Top 10 tenants 1 Total Top 10 Tenants 21.0% TGV Cinemas Sdn Bhd 21.6% 4.1% (TGV Cinemas) H & M Retail Sdn Bhd 3.2% (H & M, Monki) 39.1% Padini Dot Com Sdn Bhd 2.0% (Padini Concept Store) 2.6% 3.1% Parenthood Venture Sdn Bhd 2.3% 4.9% (The Par
Slide 40: Hospitality Properties: Sunway Resort Hotel & Spa
HOSPITALITY PROPERTIES SUNWAY RESORT HOTEL & SPA Historical occupancy rate Average occupancy rate Average occupancy rate (%) 87.3% 100.0% 90.0% 85.0% 81.2% 81.5% 82.1% 94.3% 78.8% 95.0% 78.0% 80.0% 90.4% 75.0% 90.0% 70.0% 85.0% 65.0% 80.3% 79.5% 60.0% 80.0% 55.0% 50.0% 75.0% 73.7% 71.7% Jun-14 Jun-1
Slide 41: Hospitality Properties: Sunway Pyramid Hotel
HOSPITALITY PROPERTIES SUNWAY PYRAMID HOTEL Historical occupancy rate Average occupancy rate Average occupancy rate (%) 90.0% 90.0% 82.4% 81.4% 78.2% 4 80.0% 78.2% 80.0% 73.2% 75.5% 71.8% 71.0% 70.0% 70.0% 56.8% 62.0% 60.0% 60.0% 50.0% 50.0% 4 40.0% 43.0% 1 2 Jun-14 Jun-15 Jun-16 Jun-17 YTD 2Q YTD 2
Slide 42: Hospitality Properties: Sunway Hotel Seberang Jaya
HOSPITALITY PROPERTIES SUNWAY HOTEL SEBERANG JAYA Historical occupancy rate Average occupancy rate Average occupancy rate (%) 90.0% 90.0% 76.7% 80.0% 72.0% 69.6% 71.1% 67.8% 70.0% 65.5% 80.0% 78.1% 75.3% 76.3% 73.9% 60.0% 70.2% 50.0% 70.0% 40.0% 63.9% Jun-14 Jun-15 Jun-16 Jun-17 YTD 2Q YTD 2Q 2018 2
Slide 43: Hospitality Properties: Sunway Putra Hotel
HOSPITALITY PROPERTIES SUNWAY PUTRA HOTEL Historical occupancy rate Average occupancy rate Average occupancy rate (%) 75.3% 90.0% 80.0% 68.2% 70.6% 85.0% 60.0% 50.2% 42.6% 80.0% 78.6% 40.0% 28.8% 75.0% 72.0% 71.7% 20.0% 69.0% 70.0% 67.0% 64.5% 0.0% 65.0% Jun-14 Jun-15 Jun-16 Jun-17 YTD 2Q YTD 2Q 60.
Slide 44: Hospitality Properties: Sunway Hotel Georgetown
HOSPITALITY PROPERTIES SUNWAY HOTEL GEORGETOWN Historical occupancy rate Average occupancy rate Average occupancy rate (%) 100.0% 100.0% 92.4% 87.7% 88.0% 95.0% 93.3% 91.4% 90.0% 90.0% 88.7% 88.6% 87.3% 86.4% 80.0% 76.0% 74.0% 85.0% 69.1% 70.0% 80.0% 60.0% 75.0% 70.0% 50.0% # Jun-14 Jun-15 * Jun-16
Slide 45: Office Properties: Menara Sunway
OFFICE PROPERTIES MENARA SUNWAY Historical occupancy rates Projected lease expiry schedule Average occupancy rate 100.0% 100.0% 98.8% 80.0% 97.1% 95.0% 93.6% 60.0% 92.1% 89.3% 89.8% 90.0% 40.0% 85.0% 20.0% 80.0% 6.1% 81.6% 6.3% 0.0% 75.0% FY2018 FY2019 FY2020 Jun-14 Jun-15 Jun-16 Jun-17 YTD 2Q YTD 2
Slide 46: Menara Sunway (Cont'd)
OFFICE PROPERTIES MENARA SUNWAY (Cont’d) Tenant mix 1 Top 10 tenants 1 1.9% Total Top 10 Tenants 75.0% 12.5% 2.0% Sunway Management Sdn Bhd 20.8% 2.7% 31.5% Sunway Integrated Properties Sdn Bhd 17.8% 4.6% Sunway Construction Group Berhad 8.6% 5.9% Merck Sdn Bhd 7.1% 7.1% Sunway Shared Service Sdn Bh
Slide 47: Office Properties: Sunway Tower
OFFICE PROPERTIES SUNWAY TOWER Historical occupancy rates Projected lease expiry schedule Average occupancy rate 12.0% 100.0% 9.0% 84.3% 80.0% 66.9% 6.0% 60.0% 3.0% 40.0% 19.6% 20.7% 21.2% 20.7% 20.0% 6.9% 11.7% 2.1% 0.5% 0.0% FY2018 FY2019 FYE2020 Monthly 0.0% tenancy Jun-14 Jun-15 Jun-16 Jun-17 YT
Slide 48: Sunway Tower (Cont'd)
OFFICE PROPERTIES SUNWAY TOWER (Cont’d) Tenant mix 1 Top 10 tenants 1 Total Top 10 Tenants 99.3% 5.0% 8.1% WPP Business Services Sdn Bhd 20.2% VPO Services Sdn Bhd 19.2% 14.4% ZJ Advisory Sdn Bhd 15.8% 52.3% Royal Danish Embassy 14.4% Bexcel Shared Services Malaysia Sdn Bhd 11.5% 20.2% R1 Internatio
Slide 49: Office Properties: Sunway Putra Tower
OFFICE PROPERTIES SUNWAY PUTRA TOWER Historical occupancy rates Projected lease expiry schedule Average occupancy rate 25.0% 20.0% 100.0% 80.0% 74.2% 15.0% 60.0% 52.8% 10.0% 43.1% 40.0% 36.6% 31.2% 5.0% 26.4% 20.0% 3.8% 18.2% 20.8% 3.2% 0.0% FY2018 FY2019 FY2020 FY2021 0.0% Jun-14 Jun-15 Jun-16 Jun-
Slide 50: Sunway Putra Tower (Cont'd)
OFFICE PROPERTIES SUNWAY PUTRA TOWER (Cont’d) Tenant mix 1 Top tenants 1 Total Top Tenants 100.0% 2.6% 1.1% Kementerian Perdagangan Dalam Negeri Koperasi 36.0% Dan Kepenggunaan Malaysia 2.9% Lembaga Pembangunan Industri Pembinaan Malaysia 33.0% (CIDB) Jabatan Perdana Menteri (I.C.U) 8.8% Cradle Fund
Slide 51: Office Properties: Wisma Sunway
OFFICE PROPERTIES WISMA SUNWAY Historical occupancy rates Projected lease expiry schedule Average occupancy rate 40.0% 100.0% 30.0% 89.8%1 90.1% 90.0% 2 86.9% 87.6% 85.1% 20.0% 80.3% 80.0% 70.0% 10.0% 60.0% 30.9% 26.9% 18.6% 0.0% FY2018 FY2019 FY2020 50.0% Jun-14 Jun-15 Jun-16 Jun-17 YTD 2Q YTD 2Q 2
Slide 52: Wisma Sunway (Cont'd)
OFFICE PROPERTIES WISMA SUNWAY (Cont’d) Tenant mix 1 Top tenants 1 Total Top Tenants 100.0% 4.2% Jabatan Kesihatan Negeri Selangor 42.2% Jabatan Alam Sekitar 27.9% Lembaga Hasil Dalam Negeri 19.3% 95.8% Pejabat Tindakan Pelancongan Negeri Selangor 6.4% Government Agency Consultancy SM Centre (MYS) S
Slide 53: 5. Market Outlook
5. Market Outlook Driving values through sustainable growth 53
Slide 54: General Outlook
General Outlook o The global economy saw sustained growth momentum in the third quarter of CY2017 (3Q CY2017), supported by private consumption and investment. Moving into CY2018, the International Monetary Fund (IMF) expects a more synchronized global growth anchored by consumption with additional
Slide 55: General Outlook
General Outlook o On 25 January 2018, the Monetary Policy Committee (MPC) of BNM hiked the Overnight Policy Rate (OPR) by 25bps to 3.25%. The MPC has decided to normalise the degree of accommodation in view of the steady economic growth and recognises the need to pre-emptively ensure that the moneta
Slide 56: Retail Segment
Retail Segment o After recording an encouraging growth of 4.9% in 2Q CY2017, the Retail Group Malaysia (RGM) reported that Malaysia’s retail sale contracted by 1.1% y-o-y in the 3Q CY2017. The softer growth was in line with the softening of the consumer sentiment index (CSI) in 3Q CY2017. The CSI wa
Slide 57: Retail Segment (Cont'd)
Retail Segment (Cont’d) o The average occupancy rate for Sunway Carnival Shopping Mall inched higher from 95.1% in 1Q FY2018 to 96.2% for YTD 2Q FY2018 following the commencement of new tenancy at the convention centre in August 2017. Based on the total NLA of 149,787 sq.ft. which was due for renewa
Slide 58: Hotel Segment
Hotel Segment o Tourism activities in the country remained subdued despite the ambitious target of 31.8 million tourist arrivals and tourist receipts of RM118 billion in CY2017. For the 8M CY2017, Malaysia has received 15.0 million tourists versus 17.6 million for the same period in the preceding ye
Slide 59: Hotel Segment (Cont'd)
Hotel Segment (Cont’d) o The average occupancy rates for Sunway Putra Hotel remained resilient in 2Q FY2018. For the quarter ended 31 December 2017, Sunway Putra Hotel recorded a marginally higher average occupancy rate of 72.0% (2Q FY2017: 71.7%) benefitting from higher corporate demand due to ongo
Slide 60: Office Segment
Office Segment o The outlook for the office sub-sector in Klang Valley remained challenging on the back of supply glut and to be worsened by expected incoming supply of 11.9 million sq.ft. over the next 2 to 3 years. o Menara Sunway reported a marginally lower average occupancy rate of 93.6% for YTD
Slide 61: 6. Investor Relations
6. Investor Relations Driving values through sustainable growth 61
Slide 62: Unit Price Performance from IPO to YTD 2QFY2018
Unit Price Performance from IPO to YTD 2QFY2018 Unit Price Performance of Sunway REIT versus Benchmarks (8 July 2010 – 31 December 2017) 160.0% GPR APREA Composite REIT Index - Malaysia 147.9% 120.0% Sunway REIT 111.1% 80.0% FBM KLCI 40.0% 36.5% 0.0% Jun 2010 Jun 2011 Jun 2012 Jun 2013 Jun 2014 Jun
Slide 63: Unit Price Performance for YTD 2QFY2018
Unit Price Performance for YTD 2QFY2018 Unit Price Performance of Sunway REIT versus Benchmarks (30 June 2017 – 31 December 2017) 8.0% Sunway REIT 6.7% Bursa Malaysia REIT Index 4.0% 3.5% FBM KLCI 1.9% 0.0% Jun 2017 Sep 2017 Dec 2017 -4.0% -8.0% Performance Statistics (30 June 2017 – 31 December 201
Slide 64: Indices Representation (as at 31 December 2017)
Indices Representation (as at 31 December 2017) o FTSE Bursa Malaysia Mid 70 Index o Bursa Malaysia REIT Index1 o FTSE4Good Bursa Malaysia Index o FTSE EPRA NAREIT Global REIT Index o FTSE EPRA NAREIT Global Index o FTSE EPRA NAREIT Asia ex Japan Index o FTSE EPRA NAREIT Asia Pacific Index o FTSE EP
Slide 65: Unitholders' Composition (as at 31 December 2017)
Unitholders’ Composition (as at 31 December 2017) Foreign Retail 9.2% 8.3% Sunway Berhad 39.3% Institutions & Corporate Domestic 52.4% 90.8% December 2017 September 2017 Q-o-Q Change No of unitholders 11,133 10,608 525 (+4.9%) Retail unitholders 8.3% 10.0% -1.7% Foreign unitholders 9.2% 9.2% Unchang
Slide 66: Analysts Recommendation (as at December 2017)
Analysts Recommendation (as at 31 December 2017) 7.9 12M Trailing Target Price (RM) Upside / Downside to unit price as at 31 December 2017 (%) 2.05 1.91 1.90 1.89 1.87 1.84 1.87 1.86 1.85 1.85 1.79 1.77 1.75 1.73 0.5 0.0 (0.5) (1.6) (1.6) (2.1) (2.6) (2.6) (3.2) (5.8) (6.8) (7.9) (8.9) UOB Kay Hian
Slide 67: Comparative Yields for Various Assets
Comparative Yields for Various Assets 7.0% 6.0% 5.84%2 5.70%5 5.05%1 5.0% 3.91%3 4.0% 3.25%6 3.10%4 3.0% 2.0% 1.0% 0.0% Sunway REIT M-REITs 10-Year MGS Fixed Deposit EPF Yield OPR Note: 1 Distribution yield is computed based on consensus FY2018 proposed DPU of 9.60 sen and unit price as at 31 Decemb
Slide 68: Thank You
THANK YOU Driving values through sustainable growth
Sunway Real Estate Investment Trust — Q2 FY2018 Earnings Presentation on 6ix