Presentation slides presented to investors in Johor

INTODUCTION
TO SUNWAY REIT:
The largest REIT in Malaysia
Dato’ Jeffrey Ng
CEO
Grand Paragon Hotel
Johor Bahru
23 October 2010
0
DISCLAIMER
This presentation may contain forward-looking statements that involve risks and
uncertainties. Actual future performance, outcomes and results may differ materially
from those expressed or implied in forward-looking statements as a result of a number of
risks, uncertainties and assumptions. Such as (without limitation) general industry and
economic conditions, interest rate trends, cost of capital and capital availability,
availability of real estate properties, competition from other companies and venues for
the sale/distribution of goods and services, shifts in customer demands, customers and
partners, changes in operating expenses, including employee wages, benefits and
training, governmental and public policy changes and the continued availability of
financing in the amounts and the terms necessary to support future business. You are
cautioned not to place undue reliance on these forward-looking statements, which are
based on current view of management on future events.
Please also note that past performances do not necessary reflect similar future trend.
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REIT/SPONSOR GROUP STRUCTURE
REIT / Sponsor group structure
Total appraised value: RM 3,729 mil
Tan Sri Dato’ Seri
Dr Jeffrey Cheah,
AO
44%
(1)
Government of
Singapore
Investment
Corporation
Pte Ltd
5%
21%
Sunway City
Berhad
100%
Sunway REIT
Management
Sdn Bhd
37%
REIT
management
services
Sunway REIT
(1) Knight Frank (3 Feb 2010).
2
STATISTICS
Facts
Average daily turnover1
Av. daily turnover as a % of M-REITs’ av. daily turnover1
Figures
7 million units
63.8%
Gross floor area
8 million sq. ft.
Forecast revenue (FY2011)
RM329 million
Forecast distributions (FY2011)
RM180 million
Distribution rate2
Distribution per unit (FY2011)3
Distribution yield (FY2011)4
100%
6.7sen
7.6%
Market capitalisation5
RM2,600 million
Appraised asset value6
RM3,729 million
Notes:
1.
These statistics are calculated from period from 8 July to 30 September 2010.
2.
This applies to Financial Years 2011 and 2012. Distribution rate from Financial Year 2013 onwards will be minimum
of 90%.
3.
This is based on the information provided in the Prospectus.
4.
This is calculated based on IPO’s retail price of RM0.88. Such yield will vary accordingly for investors who purchase
units in the secondary market at a market price that differs from the IPO’s retail price.
5.
Dated 30 September 2010 where closing price was RM0.97
6.
Appraised by Knight Frank in February 2010.
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INTRODUCTION TO SUNWAY REIT
Total Appraised Value: RM 3,729 mil
Bandar Sunway
Sunway Resort
Hotel & Spa
Pyramid Tower
Hotel
Pusat Bandar Seberang Jaya
Perlis
Sunway Carnival
Shopping Mall
Sunway Hotel
Seberang Jaya
NLA: 484,364 sq ft (retail)
(2)
Room: 202 guest rooms
Value: RM 250m
Value: RM 56m
Kedah
Penang
Kelantan
Terengganu
Perak
Pahang
Kuala Lumpur
Selangor
Negeri
Sembilan
Room: 439 guest rooms, 3
villas
Room: 549 guest rooms
Value: RM 480m
Value: RM 270m
Kuala Lumpur
Sunway Pyramid
Shopping Mall
Menara Sunway
Sunway Tower
SunCity Ipoh
Hypermarket
NLA: 1,685,568 sq ft
(retail) (1)
NLA: 268,978 sq ft
NLA: 268,412 sq ft
NLA: 181,216 sq ft
Value: RM 2,300m
Value: RM 138m
Value: RM 185m
Value: RM 50m
Malacca
Johor
Ipoh
Source: Sunway REIT management, Knight Frank (3 Feb 2010).(1) Includes convention centre of 143,467 sq. ft. of NLA. (2) Includes convention centre of 32,292 sq. ft. of NLA.
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INTRODUCTION TO SUNWAY REIT (continue)
●
Malaysian-focused diversified REIT
●
Almost 70% of properties by value are in the
retail sector
●
85.5% of properties by value are located in
Bandar Sunway
●
The Sponsor is an award-winning developer
with a significant development pipeline
2011E NPI contribution by property
Asset breakdown by appraised value
Total appraised value: RM 3,729 mil
8.7%
21.6%
69.7%
Retail
Hospitality
Office
Source: Knight Frank (3 Feb 2010).
Year ending 30 June 2011 NPI: RM246.4m
4.4% 2.1% 1.5%
Sunway Pyramid Shopping Mall
5.2%
Sunway Resort Hotel & Spa
Total GFA: 8,147,025 sq. ft.
13.6%
Pyramid Tower Hotel
5.6%
Sunway Carnival Shopping Mall
8.6%
60.0%
12.6%
Asset breakdown by GFA
Sunway Tower
Menara Sunway
19.4%
Sunway Hotel Seberang Jaya
67.0%
SunCity Ipoh Hypermarket
Source: Sunway REIT management.
Retail
Hospitality
Office
Source: Sunway REIT management.
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1
INTEGRATED TOWNSHIP REIT
Synergies with the Sunway Integrated Resort
Sunway Medical Centre
335 beds
Menara Sunway
Valued at
RM138m with
269k NLA
Sunway University College
NLA > 600k sq. ft. with 9k
students
Sunway South Quay Precinct
123 acres with RM5.2b GDV
Sunway Resort
Hotel & Spa
Valued at
RM480m with
439 rooms
Corporate
Precinct
25-storey office
building with NLA
>500k sq ft and
1k car parks
4 out of 8 assets comprise 85.5% of total asset value
Monash University
NLA > 700k sq. ft. with
4kstudents
Sunway Lagoon
80 acres
SP3 (28-storey commercial
development) with NLA of 250k sq.
ft. and 1k car parks
& SP4 developments
Pyramid Tower Hotel
Valued at RM270m with
549 rooms
Sunway Pyramid Shopping Mall
Valued at RM2.3b with1.69m NLA
Sunway REIT
Properties
Existing SunCity
developments
Future SunCity
developments
Drivers of the success of the properties located in Bandar Sunway (unique “Resort living within the City”):
●
800 acre master-planned township, 18km from Kuala Lumpur
●
Large residential catchment of over 600,000
●
●
(1)
●
High degree of interconnectivity between
properties
Sunway Lagoon theme park of approximately 900,000 visitors
per year (1)
●
Announced future developments
●
Accessible by five expressways
Major student population of approximately 13,000 and
expected to grow to over 18,800 within three years (1)
●
8 synergistic components: Commercial,
residential, hospitality, leisure, theme park,
medical, convention properties and
education institutions
Jones Lang Wootton Market Overview Report dated 27 May 2010
(1)
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2
DOMINANT REIT IN MALAYSIA
Sunway REIT is the largest Malaysian REIT by total asset values…
(RM millions)
3,729
1,619
156
182
A manah Harta A trium REIT
Tanah P NB
519
599
748
777
818
866
908
1,011
UOA REIT
To wer REIT
A manahRaya
REIT
Hektar REIT
Quill Capita
Trust
A l-Hadharah
B o ustead
REIT
A xis REIT
A l-A qar KP J
REIT
2,185
1,044
A mFirst REIT Starhill REIT
Capitamall
M alaysia
Trust
Sunway REIT
Source: Asset value of Sunway REIT was appraised by Knight Frank on 3 Feb 2010 while total asset values of other M-REITs were obtained from Bloomberg as at 30 September
2010.
.......as well as with the largest market capitalisation…
(RM millions)
2,600
1,485
96
122
A manah Harta A trium REIT
Tanah P NB
352
339
UOA REIT
To wer REIT
516
403
390
A manahRaya
REIT
Hektar REIT
Quill Capita
Trust
752
812
A l-Hadharah
B o ustead
REIT
A xis REIT
667
A l-A qar KP J
REIT
1,020
511
A mFirst REIT Starhill REIT
Capitamall
M alaysia
Trust
Sunway REIT
Source: Bloomberg as at 30 September 2010
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2
DOMINANT REIT IN MALAYSIA (continue)
...dominates in terms of av. daily trading volume (for September 2010)…
68.7% of M-REITs’ average
daily volume
5,288,625
107,443
36,156
75,341
164,642
77,860
214,370
68,521
54,037
175,626
A manah Harta A trium REIT
Tanah P NB
UOA REIT
To wer REIT
A manahRaya
REIT
Hektar REIT
Quill Capita
Trust
A l-Hadharah
B o ustead
REIT
A xis REIT
A l-A qar KP J
REIT
15,847
213,335
260,560
A mFirst REIT Starhill REIT
943,690
Capitamall
M alaysia
Trust
Sunway REIT
Source: Bloomberg as at 30 September 2010
… and has one of largest free float of any Malaysian REIT/property company
(RM millions)
Malaysian REITs
Selected listed Malaysian property developers
52
78
116
116
141
1,438
(1)
165
159
266
272
284
337
Amanah Hart aAt rium REIT Al-Hadharah Hekt ar REIT UOA REIT Al-Aqar KPJ Quill Capit a Amanahraya Tower REIT AmFirst REIT St arhill REIT
Tanah PNB
Boust ead REIT
REIT
Trust
REIT
566
Sunrise
652
596
Axis REIT
Mah Sing
Group
691
East ern &
737
879
Capit amall Bandar Raya
1,649
1,849
1,064
KLCC
IGB Corp
Sunway REIT
SP Set ia
Orient al Malaysia Trust
Development s Propert y
Holdings
Source: Bloomberg and Sunway REIT Management as at 17 October 2010.
Note:
(1) Malaysian developers with market capitalisations in excess of RM700 million.
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3
RESEARCH ANALYSTS’ COVERAGE
Date of
report
Target
Price (RM)
Header
Malaysia’s largest & most liquid
1.15
REIT
Credit Suisse
21-Sept-10
JP Morgan
16-Aug-10
1.1
A new dawn for M-REIT
Maybank IB
21-Sep-10
1.15
Treasures of the Pyramid
RHB IB
23-Sep-10
1.05
Goliath of M-REITs
Source: Research analysts’ coverage from various investment banks
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STRONG SPONSOR via FIRST RIGHT OF REFUSAL
4
Sponsor has a large and diversified portfolio and pipeline of planned developments
Existing assets
Medical
●
Sunway Medical Centre, a private medical centre with 335
beds, 100 consultation suites and 12 operating theatres
Education
●
●
Developments – at Bandar Sunway
●
Monash University, Sunway Campus, a private university
campus with approximately 4,000 students with more than
700,000 sq. ft. NLA
Sunway University College, a university college campus with
approximately 9,000 students with more than 600,000 sq ft.
NLA
●
Sunway Giza Shopping Mall, shopping mall with approximately
98,000 sq. ft. of NLA
●
Sunway Hotel Georgetown, Penang, a hotel with 240 rooms
Sunway Hotel Phnom Penh, a hotel with 138 rooms
Sunway Hotel Hanoi, a hotel with 145 rooms
●
Retail
●
Future Developments
●
Hospitality
●
●
●
Sunway Giza Shopping
Mall
Sunway VeloCity
Sunway South Quay, a mixed use development within Bandar
Sunway (123 acres of land with GDV of RM 5.2bn)
28-storey commercial development (NLA of 250,000 sq. ft. and
approximately 1,000 car parks) adjacent to Sunway Pyramid
Shopping Mall
25-storey office building (NLA of 530,000 sq. ft., approximately
1,000 car parks) between Menara Sunway and Sunway Resort Hotel
& Spa
Monash University residential units for students (approximately
2,000 beds, NLA slightly less than 1,000,000 sq. ft. and more than
1,200 car parks)
Sunway Medical Cancer centre with more than 100,000 sq. ft. and
more than 500 car parks
Developments – outside of Bandar Sunway
●
●
Sunway VeloCity (Shopping Mall with NLA of more than 800,000 sq.
ft. and more than 2,000 car parks), an integrated mixed-use
development project (22.6 acres of land with GDV of RM 3.0bn)
Sunway Damansara, an integrated development township (400 acres
with GDV of RM 2.7bn)
Source: Sunway City Berhad
Monash University, Sunway Campus
Sunway University College
Sunway Medical Centre
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5
RESILIENT PORTFOLIO
Case study: Historical rental rates at Sunway Pyramid Shopping Mall (1.7m sq. ft. NLA)
Historical rental rates at Sunway Pyramid Shopping Mall
(RM per sq. ft. per month)
(Calendar year basis)
SARS outbreak and war on
terrorism
Sept 11 attacks
Expansion of
mall
Tsunami
10.0
SP2 opened
in Sep 2007
Global economic
recession,
H1N1 outbreak
Accelerating growth in rentals postSP2 opening
9.0
8.0
7.0
Continued growth during
financial crisis
6.0
5.0
4.0
Average annual growth rate of 6.2% from 1999 to 2009
3.0
2.0
1.0
0.0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Source: Jones Lang Wootton Market Overview Report dated 27 May 2010
Note:
Data is shown on a December year-end basis. Gross rentals inclusive of the
convention centre but excluding the car park, the ice skating rink, and promotion.
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6
STRONG SPONSORSHIP AND GOVERNANCE
Sunway City Berhad is one of Malaysia’s leading developers
●
Award-winning developer of innovative and high-quality properties
●
Fully integrated master planned property developer involved in property development, investment,
ownership and operation of diverse real estate asset classes
●
Established strong brand recognition with the “Sunway” name, associated with high-profile and
quality real estate developments
●
The Sponsor has granted to Sunway REIT a Right of First Refusal for any property the Sponsor and
its wholly-owned subsidiaries wish to sell
Recent major awards won by the Sponsor
Year
Top Property Developers Award - The Edge Malaysia
2003 - 2010
National Annual Corporate Report Award (Industry Excellence Award in the Properties, Hotels and Trusts
category and Silver Award in Best Annual Report for Bahasa Malaysia) - Bursa Malaysia Berhad, Malaysian
2007 – 2009
Institute of Accountants (MIA) and The Malaysian Institute of Certified Public Accountants (MICPA)
Malaysia's Most Valuable Brands Award – Association of Accredited Advertising Agents Malaysia and
sanctioned by Interbrand
CNBC's Asia Pacific Property Award (Best High Rise Residential Development in Malaysia) – Consumer News
and Business Channel (CNBC) Television
Asia's Best Attraction Award (Medium Attraction Category) – AXN Channel and International Association of
Amusement Parks & Attractions
Hospitality Asia Platinum Award (Best 5-Star MICE Hotel) - World Asia Publishing
2007 – 2009
2009
2007 – 2009
2005 and 2007
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STRONG SPONSORSHIP AND GOVERNANCE
Experienced Board of Directors and senior management
Board of Directors
Tan Sri Dato’ Seri Dr Cheah Fook Ling, AO
Chairman and Non-Independent NonExecutive Director
Elvin A/L Berty Luke
Fernandez
Independent NonExecutive Director
Tan Sri Ahmad Bin Mohd
Don
Independent Non-Executive
Director
Willy Shee Ping Yah @
Shee Ping Yan
Independent NonExecutive Director
Ngeow Voon Yean
Non-Independent NonExecutive Director
Dato’ Jeffrey Ng Tiong Lip
Chief Executive Officer &
Non-Independent Executive
Director
Sarena Cheah Yean Tih
Non-Independent NonExecutive Director
Management team
Dato’ Ng Tiong Lip
Chief Executive Officer &
Non-Independent Executive Director
Cheah Wing Choong
Investment/ Business Development
Manager
Nicholas Lum Yew Choe
Investor Relations Manager
Wai Sow Fun
Chief Financial Officer
Goh Hai Thun @ Ng Hai Thun
Commercial Asset Manager
Desmond Chin Soon Yenn
Compliance Officer
Chow Pooi Onn
Finance Manager
Chan Hoi Choy
Retail Asset Manager
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For further information on this presentation kit, please kindly contact:
Investor Relations
Sunway REIT Management Sdn. Bhd.
(The Manager of Sunway REIT)
Email: [email protected]
Website of Sunway REIT: www.sunwayreit.com
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