Financial Results 3 rd Quarter Ended 31 March 2018 (FYE 30 June - PowerPoint PPT Presentation

Sunway REIT Financial Results 3 rd Quarter Ended 31 March 2018 (FYE 30 June 2018) Announcement Date: 3 May 2018

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. Driving values through sustainable growth 2

Table of Contents 1. Financial Highlights 2. 3Q 2018 Financial Results 3. 3Q 2018 Portfolio Performance 4. 3Q 2018 Property Performance 5. Property Development Activities 6. Market Outlook 7. Investor Relations Driving values through sustainable growth 3

1. Financial Highlights Driving values through sustainable growth 4

Distribution Details Dividend Distribution Details Distribution Period 1 January 2018 - 31 March 2018 Distribution Per Unit (DPU) (sen) 2.37 1 Notice of Entitlement 3 May 2018 Ex-Dividend Date 16 May 2018 Book Closure Date 18 May 2018 Payment Date 5 June 2018 1 Proposed income distribution for 3Q2018 of 2.37 sen per unit (comprising taxable amount and non-taxable/tax exempt amount of 1.78 sen per unit and 0.59 sen per unit respectively). Driving values through sustainable growth 5

Financial Highlights Highlights 3Q 2018 3Q 2017 No. of Properties 16 14 Property Value (RM'billion) 7.143 6.514 No. of Units in Circulation 2,945,078,000 2,945,078,000 Unit Price as at 31 March (RM) 1.60 1.72 Market Capitalisation (RM'billion) 4.712 5.066 Net Asset Value (NAV) Per Unit (RM) 1.4077 1.3556 (After income distribution) Premium to NAV 13.7% 26.9% Realised Earnings Per Unit (EPU) (sen) 2.37 2.37 Distribution Per Unit (DPU) (sen) 2.37 2.37 Annualised Distribution Yield 6.2% 5.4% (Based on market price as at 31 March) Management Expense Ratio 0.92% 0.86% (After income distribution) YTD Total Return -3.9% 9.0% Gearing 38.3% 34.9% % of Fixed Rate Borrowings 41.3% 90.1% Driving values through sustainable growth 6

Financial Highlights (Cont’d) Gross Revenue (RM'm) Net Property Income (RM'm) 500.0 400.0 424.2 1 2 390.3 5.2% 319.7 400.0 5.1% 290.3 300.0 300.0 200.0 200.0 141.2 141.5 141.5 111.0 105.3 134.6 103.4 128.8 126.9 100.2 100.0 96.0 94.1 100.0 - - 1Q 2Q 3Q YTD 1Q 2Q 3Q YTD 2018 2017 2018 2017 1 Gross Revenue for 3Q2018 increased by 5.2% or RM6.9 million compared to 3Q2017 mainly due to better performance by all segments and new contribution from Sunway Clio Property. 2 Net Property Income for 3Q2018 increased by 5.1% or RM5.1 million compared to 3Q2017 mainly attributable to higher Gross Revenue, partially offset by higher operating expenses from Sunway Pyramid. Driving values through sustainable growth 7

Financial Highlights (Cont’d) Profit Before Tax (Realised) (RM'm) DPU (sen) 10.00 300.0 8.00 7.42 218.6 6.92 203.8 200.0 6.00 4.00 100.0 2.67 2 1 78.6 2.38 2.37 70.1 69.9 2.37 69.9 2.27 2.28 66.8 67.1 2.00 - - 1Q 2Q 3Q YTD 1Q 2Q 3Q YTD 2018 2017 2018 2017 1 Profit Before Tax (Realised) for 3Q2018 is comparable with 3Q2017 despite increase in NPI of RM5.1 million mainly due to higher finance costs. 2 DPU for 3Q2018 is comparable to 3Q2017 in line with Profit Before Tax (Realised). Driving values through sustainable growth 8

2. 3Q 2018 Financial Results Driving values through sustainable growth 9

Statement of Comprehensive Income – Consolidated 1Q 2018 1Q 2017 2Q 2018 2Q 2017 3Q 2018 3Q 2017 Change YTD 2018 YTD 2017 Change RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 % RM'000 RM'000 % Gross revenue 141,169 128,879 141,470 126,880 141,515 134,573 5.2% 424,154 390,332 8.7% Less : Property operating expenses (30,183) (32,814) (38,103) (32,825) (36,212) (34,392) 5.3% (104,498) (100,031) 4.5% Net property income 110,986 96,065 103,367 94,055 105,303 100,181 5.1% 319,656 290,301 10.1% Changes in fair value of investment properties - - - - - - - - 0.0% Interest income 1,135 903 1,591 596 1,672 824 102.9% 4,398 2,323 89.3% 1 Other income 491 18 978 4,595 500 454 10.1% 1,969 5,067 -61.1% Manager's fee (8,644) (7,845) (8,634) (7,805) (8,548) (7,938) 7.7% (25,826) (23,588) 9.5% Trustee's fee (321) (307) (321) (308) (353) (342) 3.2% (995) (957) 4.0% Other trust expenses (265) (2,934) (892) 2,086 (826) (316) 161.4% (1,983) (1,164) 70.4% 2 Finance costs (24,153) (21,757) (25,092) (22,076) (27,396) (22,507) 21.7% (76,641) (66,340) 15.5% 3 Profit before tax 79,229 64,143 70,997 71,143 70,352 70,356 0.0% 220,578 205,642 7.3% Income tax expense - - - - - - - - 0.0% Profit for the period 79,229 64,143 70,997 71,143 70,352 70,356 0.0% 220,578 205,642 7.3% Profit for the period comprises the following: Realised 78,736 66,732 70,045 67,130 69,852 69,906 -0.1% 218,633 203,768 7.3% Unrealised 493 (2,589) 952 4,013 500 450 11.1% 1,945 1,874 3.8% 79,229 64,143 70,997 71,143 70,352 70,356 0.0% 220,578 205,642 7.3% No. of units in circulation (million units) 2,945 2,945 2,945 2,945 2,945 2,945 0.0% 2,945 2,945 0.0% EPU (sen) - Realised 2.67 2.24 2.37 2.31 2.37 2.37 0.0% 7.41 6.92 7.1% - Unrealised 0.02 (0.09) 0.03 0.14 0.01 0.01 0.0% 0.06 0.06 0.0% 2.69 2.15 2.40 2.45 2.38 2.38 0.0% 7.47 6.98 7.0% Proposed/declared income distribution 78,634 66,853 70,093 67,148 69,798 69,798 0.0% 218,525 203,799 7.2% Proposed/declared DPU (sen) 2.67 2.27 2.38 2.28 2.37 2.37 0.0% 7.42 6.92 7.2% Please refer to next page for explanatory notes. Driving values through sustainable growth 10

Statement of Comprehensive Income- Consolidated (Cont’d) Explanation: 1 Higher interest income in 3Q2018 compared to 3Q2017 mainly contributed by interest income from investment in money market instrument commencing from September 2017 amounting to RM0.4 million and higher interest income from financial institutions of RM0.4 million. 2 Higher other trust expenses in 3Q2018 compared to 3Q2017 mainly due to incurrence of professional fees in relation to the acquisition of Sunway Clio Property. 3 Higher finance costs for 3Q2018 due to higher borrowings drawndown for the acquisition of Sunway Clio Property as well as higher average cost of debt following the increase in Overnight Policy Rate (OPR) by 25bps in line with BNM’s announcement on 25 January 2018. Driving values through sustainable growth 11