FINANCIAL RESULTS Third Quarter Ended 31 March 2019 (FYE 30 June 2019) 2 May 2019
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 connection with, any contract, commitment or investment decision whatsoever. The information contained in this presentation is strictly private and confidential and is being provided to you solely for your information. This presentation may not be distributed or disclosed to any other person and may not be reproduced in any form, whole or in part. This presentation is not intended for distribution, publication or use in the United States. Neither this document nor any part or copy of it may be taken or transmitted into the United States or distributed, directly or indirectly, in the United States. Sunway REIT has not registered and does not intend to register any securities under the U.S. Securities Act of 1933 (the “Securities Act”) . Accordingly, any offer of securities of Sunway REIT is being made only outside the United States pursuant to Regulation S under the Securities Act. You represent and agree that you are located outside the United States and you are permitted under the laws of your jurisdiction to participate in any offering of securities of Sunway REIT. This presentation may contain forward looking statements which are not subject to change due to a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions; interest rate trends; cost of capital and capital availability including availability of financing in the amounts and on the terms necessary to support future business; availability of real estate properties; competition from other companies; changes in operating expenses including employee wages, benefits and training and property expenses; and regulatory and public policy changes. You are cautioned not to place undue reliance on these forward looking statements which are based on Management’s current view of future events. These forward looking statements speak only as at the date of which they are made and none of Sunway REIT, its trustee, any of its or their respective agents, employees or advisors intends or has any duty or obligation to supplement, amend, update or revise any forward looking statement contained herein to reflect any change in circumstances, conditions, events or expectations upon which any such forward looking statement is based. Past performance is not necessarily indicative of its future performance. This presentation does not constitute an offering circular or a prospectus in while or in part. The information contained in this presentation is provided as at the date of this presentation and is subject to change without notice. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the accuracy, completeness or correctness of any information, including any projections, estimates, targets and opinions, contained herein. Accordingly, none of Sunway REIT, its trustee, officers or employees accept any liability, in negligence or otherwise, whatsoever arising directly or indirectly from the use of this presentation. Empowering Businesses Curating Experiences Enriching Lives 2
Table of Contents 1. Financial Highlights (3Q2019) 2. Financial Results (3Q2019) 3. Portfolio Performance (3Q2019) 4. Property Development Activities & Assets Enhancement Initiatives 5. Market Outlook 6. Investor Relations Appendix - Property Performance (3Q2019) Empowering Businesses Curating Experiences Enriching Lives 3
FINANCIAL HIGHLIGHTS (3Q2019) Empowering Businesses Curating Experiences Enriching Lives 4
Quarterly Distribution Per Unit (“DPU”) Quarterly DPU (sen) Distribution Details Distribution Period 1 January 2019 - 31 March 2019 2.38 2.25 2.58 Distribution Per Unit (DPU) (sen) 2.58 2.37 Notice of Entitlement 2 May 2019 Ex-Dividend Date 15 May 2019 Book Closure Date 17 May 2019 Payment Date 30 May 2019 3Q2019 3Q2018 2Q2019 2Q2018 3Q2019 DPU DPU for 3Q2019 is higher by 0.21 sen mainly contributed by better performance of all business segments, including the income guarantee (as defined below) for Sunway Clio 8.9% y-o-y Property of RM4.4 million. Income guarantee = the difference between total annual net property income and guaranteed net property income of RM20.23 million. Empowering Businesses Curating Experiences Enriching Lives 5
5-Year Quarterly DPU 1Q 2Q 3Q 4Q 9.57 9.19 9.18 8.73 2.15 2.12 7.31 2.27 2.05 2.37 2.58 2.37 2.37 2.13 2.38 2.25 2.27 2.57 2.28 2.67 2.48 2.28 2.27 2.12 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 5-Year DPU CAGR Annualised Distribution Yield 2.8% 5.4% (FY2019 based on annualised DPU) (Based on unit price of RM 1.80 as at 31 March 2019) Empowering Businesses Curating Experiences Enriching Lives 6
Financial Highlights – 3Q2019 Highlights 3Q 2019 3Q 2018 No. of Properties 16 16 Property Value (RM'billion) 7.367 7.143 Units in Circulation 2,945,078,000 2,945,078,000 Unit Price as at 31 March (RM) 1.80 1.60 Market Capitalisation (RM'billion) 5.301 4.712 Net Asset Value ("NAV") Per Unit (RM) 1.4544 1.4077 (After income distribution) Premium to NAV 23.8% 13.7% Realised Earnings Per Unit ("EPU") (sen) 2.58 2.37 Management Expense Ratio 0.93% 0.92% (After income distribution) Gearing 38.4% 38.3% % of Fixed Rate Borrowings 48% 41% Empowering Businesses Curating Experiences Enriching Lives 7
Financial Highlights – 3Q2019 (Cont’d) Reported in RM’000 Gross revenue 3Q Gross Revenue for 3Q2019 increased by 7.1% 151,499 2019 7.1% or RM10.0 million compared to 3Q2018 mainly attributable to better performance of all business segments, including the income guarantee for 3Q Sunway Clio Property of RM4.4 million. 141,515 2018 Net Property Income for 3Q2019 was higher by Net property income 8.0% or RM8.5 million compared to 3Q2018 in 3Q 113,774 2019 line with higher revenue, partially reduced by 8.0% higher assessment of RM1.2 million in 3Q2019 due to vacancy allowance for assessment received by Sunway Tower and Sunway Putra 3Q 105,303 2018 Tower in 3Q2018. Profit before tax (realised) 3Q Profit Before Tax (Realised) for 3Q2019 was 75,762 2019 8.5% higher by 8.5% or RM5.9 million compared to 3Q2018 in line with higher NPI, partially offset by lower interest income of RM1.0 million and 3Q higher finance costs of RM1.4 million. 69,852 2018 Empowering Businesses Curating Experiences Enriching Lives 8
Financial Highlights – YTD 3Q2019 Reported in RM’000 Gross revenue YTD 434,740 143,741 139,500 151,499 Gross Revenue for YTD 3Q2019 increased by 3Q2019 2.8% 2.5% 2.5% or RM10.6 million compared to YTD 3Q2018 mainly contributed by overall better performance of all business segments. YTD 424,154 141,169 141,470 141,515 3Q2018 1Q 2Q 3Q Net property income YTD 110,514 104,225 113,774 328,513 3Q2019 Net Property Income for YTD 3Q2019 2.8% increased by 2.8% or RM8.9 million in line with 0.2% higher revenue, partially offset by higher YTD operating expenses. 110,986 103,367 105,303 319,656 3Q2018 1Q 2Q 3Q Profit before tax (realised) YTD 215,172 Profit Before Tax (Realised) for YTD 3Q2019 72,984 66,426 75,762 3Q2019 was lower by 1.6% or RM3.5 million compared to YTD 3Q2018 mainly attributable to higher 1.6% finance costs of RM11.1 million despite higher YTD NPI. 218,633 78,736 70,045 69,852 3Q2018 1Q 2Q 3Q Empowering Businesses Curating Experiences Enriching Lives 9
FINANCIAL RESULTS (3Q2019) Empowering Businesses Curating Experiences Enriching Lives 10
Statement of Comprehensive Income – Consolidated 3Q 2019 3Q 2018 Change YTD 2019 YTD 2018 Change RM'000 RM'000 % RM'000 RM'000 % Gross revenue 151,499 141,515 7.1% 434,740 424,154 2.5% Property operating expenses (37,725) (36,212) 4.2% (106,227) (104,498) 1.7% Net property income 113,774 105,303 8.0% 328,513 319,656 2.8% Interest income 681 1,672 -59.3% 4,340 4,398 -1.3% 1 Other income 59 2 500 -88.2% 101 1,969 -94.9% 2 Manager's fees (8,994) (8,548) 5.2% (26,852) (25,826) 4.0% Trustee's fees (161) (353) -54.4% (493) (995) -50.5% 3 Other trust expenses (752) (826) -9.0% (2,616) (1,983) 31.9% Finance costs (28,798) (27,396) 5.1% (87,730) (76,641) 14.5% 4 Profit before tax 75,809 70,352 7.8% 215,263 220,578 -2.4% 5 Income tax expense (6,895) - N/A (6,895) - N/A Profit for the period 68,914 70,352 -2.0% 208,368 220,578 -5.5% Profit for the period comprises the following: Realised 75,762 69,852 8.5% 215,172 218,633 -1.6% Unrealised (6,848) 500 > -100% (6,804) 1,945 > -100% 68,914 70,352 -2.0% 208,368 220,578 -5.5% Units in circulation (million units) 2,945 2,945 0.0% 2,945 2,945 0.0% Basic EPU (sen): Realised 2.58 2.37 8.9% 7.31 7.41 -1.3% Unrealised (0.24) 0.01 > -100 (0.24) 0.06 > -100 2.34 2.38 -1.7% 7.07 7.47 -5.4% Proposed/declared income distribution 75,983 69,798 8.9% 215,285 218,525 -1.5% Proposed/declared DPU (sen) 2.58 2.37 8.9% 7.31 7.42 -1.5% Empowering Businesses Curating Experiences Enriching Lives 11
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