Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — Q4 2023 Earnings Presentation
38 slides from Sunway Real Estate Investment Trust's earnings presentation, Jan 30, 2024
Slide 1: Financial Results 4th Quarter ended 31 December 2023
FINANCIAL RESULTS 4th Quarter ended 31 December 2023 (FYE 31 December 2023) Date: 30 January 2024 0
Slide 2: Table of Contents
Table of Contents 1. Financial Highlights (Q4 2023) 2. Financial Results (Q4 2023) 3. Segmental Financial Results (Q4 2023) 4. Market Outlook (Q4 2023) 5. Investor Relations (Q4 2023) Appendix I – Property Performance Empowering Businesses • Curating Experiences • Enriching Lives 1
Slide 3: Financial Highlights (Q4 2023)
FINANCIAL HIGHLIGHTS (Q4 2023) 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 July 2023 - 31 December 2023 Distribution Per Unit (DPU) (sen) 4.68 Notice of Entitlement 30 January 2024 Ex-Dividend Date 15 February 2024 Book Closure Date 16 February 2024 Payment Date 29 February 2024 DP
Slide 5: 6-Years DPU
6-Years DPU 5-Year DPU CAGR Distribution Yield 0.11% 6.0% (Based on CY 2018 DPU of 9.25 sen) (Based on unit price of RM1.54 as at 29 Dec 2023) Empowering Businesses • Curating Experiences • Enriching Lives 4
Slide 6: Financial Highlights – Q4 2023
Financial Highlights – Q4 2023 Highlights Q4 2023 Q4 2022 No. of Properties 19 20 Property Value (RM'billion) 8.972 9.101 @ Units in Circulation (Units) 3,424,807,700 3,424,807,700 Unit Price as at 31 Dec 2023/2022 (RM) 1.54 1.46 Market Capitalisation (RM'billion) 5.274 5.000 Net Asset Value ("NAV")
Slide 7: Financial Highlights Q4 2023 vs Q4 2022 (QTD & YTD)
Financial Highlights Q4 2023 vs Q4 2022 (QTD & YTD) Reported in RM’000 Q4 YoY YTD Q4 2023 vs Q4 2022 Variance Variance The higher Revenue was contributed by the retail segment which was supported by robust YTD RM715,689 9.9% footfall and tenants sales as well 2.0% or RM3.8m RM64.2m as the hotel segm
Slide 8: Financial Results (Q4 2023)
FINANCIAL RESULTS (Q4 2023) Empowering Businesses • Curating Experiences • Enriching Lives 7
Slide 9: Statement of Comprehensive Income – Consolidated
Statement of Comprehensive Income – Consolidated Q4 2023 Q4 2022 Change YTD 2023 YTD 2022 Change RM'000 RM'000 % RM'000 RM'000 % Rev enue 190,521 * 186,732 * 2.0% 715,689 651,446 9.9% Property operating expenses (54,864) (40,544) 35.3% (188,792) (151,208) 24.9% Net property income 135,657 146,188 -7
Slide 10: Statement of Comprehensive Income – Consolidated (cont’d)
Statement of Comprehensive Income – Consolidated (cont’d) 1. Interest income for Q4 2023 was higher compared to Q4 2022 resulting from higher cash balance and higher placement rate (3.80% vs 2.97%) with 100bps OPR hike in FY 2022 and 25bps in May 2023. 2. Manager’s fees was higher in YTD Q4 2023 com
Slide 11: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 31 Dec 2023 31 Dec 2022 31 Dec 2023 31 Dec 2022 (Unaudited) (Audited) (Unaudited) (Audited) RM'000 RM'000 RM'000 RM'000 Assets Number of units in circulation ('000) 3,424,808 3,424,808 Non-current assets Net Asset Value ('NAV') attributable to unitholde
Slide 12: Statement of Cash Flows – Consolidated
Statement of Cash Flows – Consolidated Cumulative Quarter ended 31.12.2023 31.12.2022 1 Net cash from operating activities for Q4 2023 of RM445.6 * million mainly comprise of cash receipt from lessees and RM'000 RM'000 tenants, partially offset by cash paid for operating expenses. Cash flows from op
Slide 13: Financing Profile as at 31 December 2023
Financing Profile as at 31 December 2023 Facility Limit Utilised Amount RM'mil RM'mil Revolving loan (USD) USD 75 347.3 Commercial Paper 3,000.0 90.0 Unrated MTNs 900.0 10,000.0 Unrated MTNs 300.0 Total Current 1,637.3 Revolving Loan (RM) 2,000.0 2,000.0 Total Non Current 2,000.0 Amortization of CP
Slide 14: Financing Profile as at 31 December 2023 (Cont’d)
Financing Profile as at 31 December 2023 (Cont’d) Empowering Businesses • Curating Experiences • Enriching Lives 13
Slide 15: Segmental Financial Results (Q4 2023)
SEGMENTAL FINANCIAL RESULTS (Q4 2023) Empowering Businesses • Curating Experiences • Enriching Lives 14
Slide 16: Retail Segment : Q4 2023
Retail Segment : Q4 2023 Retail Revenue Retail NPI 6% RM 123.9 million (Q4 2023) -6% RM 79.6 million (Q4 2023) vs RM 116.7 million (Q4 2022) vs RM 84.7 million (Q4 2022) 11% RM 472.9 million (YTD Q4 2023) 4% RM 320.8 million (YTD Q4 2023) vs RM 426.9 million (YTD Q4 2022) vs RM 307.1 million (YTD Q4
Slide 17: Hotel Segment : Q4 2023
Hotel Segment : Q4 2023 Hotel Revenue Hotel NPI 0.275 14% RM 23.3 million (Q4 2023) 10% RM 21.4 million (Q4 2023) vs RM 20.4 million (Q4 2022) vs RM 19.4 million (Q4 2022) 38% RM 87.1 million (YTD Q4 2023) 39% RM 82.4 million (YTD Q4 2023) vs RM 63.3 million (YTD Q4 2022) vs RM 59.4 million (YTD Q4
Slide 18: Office Segment : Q4 2023
Office Segment : Q4 2023 Office Revenue Office NPI 5% RM 21.0 million (Q4 2023) 3% RM 13.0 million (Q4 2023) vs RM 20.1 million (Q4 2022) vs RM 12.6 million (Q4 2022) 4% RM 82.6 million (YTD Q4 2023) 1% RM 52.2 million (YTD Q4 2023) vs RM 79.3 million (YTD Q4 2022) vs RM 51.8 million (YTD Q4 2022) R
Slide 19: Services Segment : Q4 2023
Services Segment : Q4 2023 Services Revenue Services NPI -40% RM 9.4 million (Q4 2023) -40% RM 9.4 million (Q4 2023) vs RM 15.8 million (Q4 2022) vs RM 15.8 million (Q4 2022) -13% RM 55.2 million (YTD Q4 2023) -13% RM 55.2 million (YTD Q4 2023) vs RM 63.2 million (YTD Q4 2022) vs RM 63.2 million (YT
Slide 20: Industrial & Others Segment : Q4 2023
Industrial & Others Segment : Q4 2023 Industrial & Others Revenue Industrial & Others NPI 0% RM 1.7 million (Q4 2023) -33% RM 1.1 million (Q4 2023) vs RM 1.7 million (Q4 2022) vs RM 1.7 million (Q4 2022) 0% RM 6.8 million (YTD Q4 2023) -22% RM 5.3 million (YTD Q4 2023) vs RM 6.8 million (YTD Q4 2022
Slide 21: Market Outlook (Q4 2023)
MARKET OUTLOOK (Q4 2023) Empowering Businesses • Curating Experiences • Enriching Lives 20
Slide 22: General Outlook
General Outlook Indicator 2024 (F) Q4 2023 Q3 2023 Q2 2023 Q1 2023 2022 2021 Gross Domestic Product 3.4% 5 4.0% - 5.0% 4 3.3% 1 2.9% 1 5.6% 1 8.7% 1 3.1% 1 (GDP) (yoy) (FY2023: 3.8%) 1.5% 2 Consumer Price Index (yoy) 2.1% - 3.6% 4 (FY2023: 2.5%) 1.9% 2 2.8% 2 3.6% 2 3.3% 2 2.5% 2 Overnight Policy Ra
Slide 23: Segmental Outlook – Retail
Segmental Outlook 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 landscape
Slide 24: Segmental Outlook – Hotel
Segmental Outlook 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 improved flight connectivity and resumption of flights to Northeast Asia destinations. Addition
Slide 25: Segmental Outlook – Office
Segmental Outlook Office Segment The office sector in Malaysia is anticipated to see an 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 entice
Slide 26: Investor Relations (Q4 2023)
INVESTOR RELATIONS (Q4 2023) Empowering Businesses • Curating Experiences • Enriching Lives 25
Slide 27: Unit Price Performance from IPO to Q4 2023
Unit Price Performance from IPO to Q4 2023 Unit Price Performance of Sunway REIT versus Benchmarks (8 July 2010 – 31 December 2023) Sunway REIT + 71.1% FBM Top 100 Index + 21.1% FBM KLCI + 10.5% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Performance Statistics IPO to Q4 23
Slide 28: Unitholders’ Composition (as at 31 December 2023)
Unitholders’ Composition (as at 31 December 2023) Foreign 6.9% Retail 7.6% Sunway Berhad 40.9% Institutions & Corporates 51.5% Domestic 93.1% December 2023 September 2023 Q-o-Q Change No of unitholders 31,554 31,864 - 310 (-1.0%) Retail unitholders 7.6% 7.7% - 0.1% Foreign unitholders 6.9% 7.2% - 0.
Slide 29: Analysts Recommendation (as at December 2023)
Analysts Recommendation (as at 31 December 2023) Average Consensus Target Price = RM1.69 22.7 20.8 Target Price as at 31 Dec 2023 (RM) 16.9 Upside / Downside to unit price as at 31 Dec 2023 (%) 13.6 13.0 11.7 10.4 10.4 9.1 7.1 5.8 3.9 3.9 1.89 1.86 1.80 1.75 1.74 1.72 1.70 1.70 1.63 1.60 1.68 1.65 1
Slide 30: Comparative Yields for Various Assets
Comparative Yields for Various Assets (as at 31 December 2023) 6.22%2 6.04%1 5.35%5 3.74%3 3.00%6 2.80%4 Sunway REIT M-REITs 10-Year MGS Fixed Deposit EPF Yield OPR Note: 1 Distribution yield is computed based on actual FY 2023 DPU of 9.30 sen and unit price of RM1.54 as of 31 Dec 2023 (Source: Sunw
Slide 31: Appendix I: Property Performance (YTD Q4 2023 YoY Analysis)
APPENDIX I: PROPERTY PERFORMANCE (YTD Q4 2023 YoY Analysis) Empowering Businesses • Curating Experiences • Enriching Lives 30
Slide 32: Average Occupancy Rate (YTD Q4 2023) – Retail
Average Occupancy Rate (YTD Q4 2023) RETAIL The Retail segment recorded an improved average occupancy rate stood at 97% in YTD Q4 2023, which was supported by the commencement of new tenants and replacement of tenants across our retail malls. SunCity Ipoh Hypermarket is occupied by single tenant, TF
Slide 33: Projected Lease Expiry Schedule – Retail
Projected Lease Expiry Schedule RETAIL WALE = 1.35 years Sunway Pyramid Mall Sunway Carnival Mall SunCity Ipoh Sunway Putra Mall Based on the total net Based on the total NLA of 154,784 Hypermarket Based on the total NLA of lettable area (NLA) of sq. ft. due for renewal in 2023, a Occupied by single
Slide 34: Average Occupancy Rate (YTD Q4 2023) – Hotel
Average Occupancy Rate (YTD Q4 2023) HOTEL WALE = 6.05 years The Hotel segment recorded 10% growth in YTD Q4 2023 as compared to YTD Q4 2022, mainly contributed by improved performance across all hotel properties driven by stronger pick up in tourism activity, demand from corporate and MICE activiti
Slide 35: Average Occupancy Rate (YTD Q4 2023) – Office
Average Occupancy Rate (YTD Q4 2023) OFFICE The Office segment recorded a marginal improvement in average occupancy rate in YTD Q4 2023, primarily supported by the commencement of new tenants in Sunway Tower and Sunway Pinnacle. Empowering Businesses • Curating Experiences • Enriching Lives 34
Slide 36: Projected Lease Expiry Schedule – Office
Projected Lease Expiry Schedule OFFICE WALE = 1.38 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 73,615 sq. ft. due 14,462 sq. ft. due for 151,258 sq. ft.
Slide 37: 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 38: Thank You
Thank You Empowering Businesses • Curating Experiences • Enriching Lives 37
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