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ENSURING A ROBUST BUSINESS MODEL

OUR CAPITAL

  • icon-F
    FINANCIAL
  • icon-M
    MANUFACTURED
  • icon-I
    INTELLECTUAL
  • icon-H
    HUMAN
  • icon-S
    SOCIAL AND
    RELATIONSHIP
  • icon-N
    NATURAL

OUTPUTS

OUTCOMES

TRADE-OFFS

Our Competitive Advantages

01

Diversified
Asset
Portfolio

02

Prudent Risk
Management

03

Experienced
and Diverse
Backgrounds
& Skill Sets

04

Strong
Relationship
with Tenants

05

Sunway
Brand
Synergy

06

Responsible
& Sustainable
Business
Practices

07

Performance
Track
Record

08

Progressive
Mindset &
Innovative
Processes

VISION

To be a leading diversified REIT in Malaysia committed to enhancing stakeholder value – Sustainable Growth, Environmental Stewardship and Community Engagement

MISSION

To deliver sustainable income distribution over the long-term through responsible business strategies supported by adaptive innovation solutions, management and sustainability practices

Purpose

  • Empowering businesses
  • Curating experiences
  • Enriching lives

CORE VALUES

  • Integrity
  • Humility
  • Excellence

NATURAL CAPITAL

Sunway REIT seeks to efficiently utilise land, water and energy in the operation of our business. Given that energy is one of the largest components in the operation of Sunway REIT and contributor to GHG emissions, we make conscious efforts to contribute to energy savings and carbon emissions reduction.

  • Encourage the use of renewable energy, water-efficient fittings and energy efficient equipment
  • Committed to certify 100% of Sunway REIT’s properties as green buildings
  • Implementing waste management
    initiative to minimise wastage

OUTPUTS

  • 8% of electricity generated from
    renewable energy
  • 5 properties certified as Green
    Building
  • Diverted 8% of landfill waste
  • Converted 97.5% of borrowings to
    sustainability-linked loan

OUTCOMES

  • Lowered carbon footprint and
    efficient resource management
  • Progressively achieve the goal of Net
    Zero Carbon by 2050

TRADE-OFFS

Leveraging on renewable energy will
impact Financial Capital at the outset
but will certainly benefit Natural, Social
& Relationship and Portfolio Capitals
over the mid and long term.

Note: Data as at 31 December 2023

SOCIAL & RELATIONSHIP CAPITAL

Fostering strong relationships with stakeholders to actively understand and manage expectations and create shared value over the long term.

  • Regular stakeholder engagement
  • Effective, timely and transparent communication and disclosure
  • Implementation of Green Lease Partnership Programme

OUTPUTS

  • 1,344 tenancies
  • 97.6% tenancy renewal rate
  • 27 investor relations events initiated
  • 100% hotel master lessees and
    82% retail and office tenants
    participated in the Green Lease
    Partnership Programme

OUTCOMES

  • Highest amongst M-REITs:
    16 research coverage
  • Increased unitholders’ base to 31,554
    unitholders
  • Strong long-term relationships with
    business partners and stakeholders
    with high levels of integrity and
    fairness to all parties

TRADE-OFFS

Cultivating strong relationships with
the stakeholders while strictly adhering
to corporate governance requirements
will serve to improve all Capitals. Giving to support social and humanities programmes will also serve to improve Social & Relationship, Portfolio, Human
and Intellectual Capitals over the longer
term.

Note: Data as at 31 December 2023

HUMAN CAPITAL

All employees of the Manager and Trustee work together for the benefit of the unitholders. Outsourced parties such as the Property Manager and share registrar complete the human capital ecosystem.

  • Comprising 23 employees under the Manager
  • Investing in various training programs and workshops to upskill employees and prepare for a stronger workforce
  • Supported by professional and experienced Business Unit Management Teams
  • Number of employees under the Manager: 23

OUTPUTS

  • Employee retention rate: 74%
  • Total learning hours per employee:
    35 hours
  • Increased capability of employees
  • Employees engagement score: 68%

OUTCOMES

  • Optimum customer and tenant
    satisfaction achieved through excellent customer service delivered by a highly skilled workforce
  • Retail customer satisfaction: 80%
  • Hotel guest satisfaction: 89%
  • Office tenant satisfaction: 94%

TRADE-OFFS

Investing Financial Capital in the upskilling of employees broadens career prospects and empowers them with greater capabilities. Over the long term, this provides immense benefits to Human Capital and Intellectual Capital.

Note: Data as at 31 December 2023

INTELLECTUAL CAPITAL

Specialised asset management expertise and knowledge, business strategies, inherent experience and expertise spanning more than a decade alongside strong support from the Sponsor and Sunway REIT brand.

  • Deep industry knowledge of Board of Directors and the Manager
  • Strong brand reputation of Sponsor and Sunway REIT
  • Integrated risk management culture and framework

OUTPUTS

  • Prudent and balanced investment decisions
  • 5 awards and accolades
  • Optimum and low cost of financing

OUTCOMES

  • Robust corporate governance
    backed by board leadership and
    effectiveness
  • Continuous oversight of risk
    management and internal controls

TRADE-OFFS

Investments in Intellectual Capital may
reduce the Financial Capital over the short term, however it is also likely to increase the value of Human, Financial and Social & Relationship Capitals over the mid and long term while reaping the benefits of the improved domain knowledge.

Note: Data as at 31 December 2023

MANUFACTURED CAPITAL

Encompasses our diversified portfolio assets, which
consist of Retail, Hotel, Office, Services and Industrial &
Others segments.

  • 5 Retail malls
  • 6 Hotels
  • 5 Offices
  • 1 Education Asset
  • 2 Industrial Property

OUTPUTS

  • Retail: 3.1 million sq.ft.
    NLA
  • Hotel: 2,527 rooms
  • Office: 1.6 million sq.ft.
    NLA

OUTCOMES

Average Occupancy Rate

  • Retail: 97% 
  • Hotel: 64%
  • Office: 84%

TRADE-OFFS

The investments in green buildings
have certainly contributed to preserving
Natural Capital and will positively impact
Portfolio Capital in the mid and long term
through improvements in valuation and
brand equity.

Note: Data as at 31 December 2023

FINANCIAL CAPITAL

The pool of funds available to Sunway REIT, generated from rental income, property revaluation and financing through debt and equity.

  •  Total Unitholders’ funds: RM5.2 billion
  •  Total Borrowings: RM3.6 billion
  •  Total Assets: RM9.5 billion

OUTPUTS

  • Revenue:
    RM716 million

  • Net Property Income:
    RM527 million

  • Distribution Per Unit:
    9.30 sen


  • Payout Ratio:
    100% 

OUTCOMES

  • Ranked 2nd by Property value: RM9.0 billion
  • Ranked 3rd by Market Capitalisation:
    RM5.3 billion
  • 5-year Average Total Return: 2.6%

TRADE-OFFS

Property investments and allocation for capital expenditure on property
development and asset enhancement initiatives may affect Financial Capital in the short and mid term, however, it will contribute positively to Portfolio Capital in the longer term.

Note: Data as at 31 December 2023
  • © 2024 Sunway REIT. All Rights Reserved.

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