2007 Financial Results 1 February 2008 partnership / determination / ingenuity Allco Commercial REIT
Disclaimer This presentation is focused on comparing actual results versus forecasts for the Allco REIT properties. All references to Forecast in this presentation are defined as follows: The forecast for 4Q2007 is based on management’s forecast for 2H2007 shown in the Circular dated 26 June 2007, pro-rated for the period from 1 October 2007 to 31 December 2007. The forecast for FY2007 is based on: (a) management’s projection for the period 1 January 2007 to 31 December 2007 shown in the Prospectus dated 23 March 2006, pro-rated for the period 1 January 2007 to 30 June 2007, and (b) the forecast for 2H2007 shown in the Circular dated 26 June 2007. Comparative amounts for FY2006 relate only to the period from 30 March 2006 to 31 December 2006, as the IPO was not completed until 30 March 2006. This presentation must be read in conjunction with the Allco Commercial Real Estate Investment Trust Full Year Financial Statements Announcement for the financial year ended 31 December 2007. This document may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of 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, competition from similar developments, shifts in expected levels of property rental income, changes in operating expenses, (including employee wages, benefits and training costs), property expenses and governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. Investors are cautioned not to place undue reliance on these forward-looking statements, which are based on the Manager’s current view on future events. The value of Allco REIT units (“ Units ”) and the income derived from them, if any, may fall or rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Investors should note that they have no right to request the Manager to redeem their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on the Singapore Exchange Securities Trading Limited (“ SGX-ST ”). Listing of the Units on the SGX- ST does not guarantee a liquid market for the Units. This document is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for the Units. The past performance of Allco REIT and the Manager is not necessarily indicative of the future performance of Allco REIT and the Manager. 1 February 2008 Allco Commercial REIT 2
2H2007 Distribution Record DPU: 3.74 cents per Unit for 2H2007, up 25.1% on 1H2007 6.73 cents per Unit for FY2007, up 13.3% on FY2007 forecast Distribution Period 1 July 2007 to 31 December 2007 Distribution of 3.74 cents per Unit comprising: a) taxable income distribution of 1.93 cents; Distribution Rate b) tax exempt income distribution of 1.69 cents; and c) capital distribution of 0.12 cents Notice of Books Closure Date Friday, 1 February 2008 Last day of Trading on “cum” basis Thursday, 14 February 2008 Friday, 15 February 2008 Ex-Date Distribution Books Closure Date Thursday, 14 February 2008 Payment of Distribution Friday, 29 February 2008 1 February 2008 Allco Commercial REIT 3
FY2007 in review “Year of growth” � Strategic acquisitions and markets diversification – six new properties acquired through entry into three new sub-markets in FY2007 � 27.4% increase in Net Asset Value per Unit driven by strong asset revaluations � Excellent leasing and rent review outcomes – capitalising on favourable market fundamentals; exceeding leasing targets for 55 Market Street and rental revenue forecast for Central Park � Net changes of fair value of investment properties of S$271.9 million � Total return after income tax, before distribution, up by 174.6% � 46.9% growth in DPU year-on-year, delivering record quarter, half year and annual DPU � Measured increase in Gearing to 43.6% to fund new acquisitions, well within the regulatory limit of 60.0% Creation of a solid base for asset plan execution and strategic portfolio management in FY2008 1 February 2008 Allco Commercial REIT 4
Key Highlights Actual Forecast Actual FY2007 FY2007 FY2006* Gross Revenue (S$000) 75,247 54,864 37.2% 34,891 115.7% Net Property Income (S$000) 61,422 46,377 32.4% 28,757 113.6% Net Income (S$000) 34,947 29,383 18.9% 19,116 82.8% Distributable income (S$000) 47,526 35,871 32.5% 22,687 109.5% DPU (cents per Unit) 6.73 5.95 13.3% 4.58 46.9% Total Assets (S$ million) 2,038 - - 914 122.9% Net Assets attributable to Unitholders (S$ million) 1,052 - - 579 81.5% NAV (S$ per Unit) S$1.49 - - S$1.17 27.4% Gearing** 43.6% - - 33.3% Portfolio Occupancy (by net lettable area) 97.5% - - 89.2% * Comparative amounts for FY2006 relate only to the period from 30 March 2006 to 31 December 2006. ** Gearing is calculated as gross borrowings as a percentage of total assets. 1 February 2008 Allco Commercial REIT 5
Total Gross Revenue Total Gross Revenue: 37.2% up on FY2007 forecast, 115.7% up on FY2006 � Outperformed forecast and grew with asset acquisitions, higher rental income and full year contributions from existing assets Actuals Year-on-Year FY2007 Forecast to Actual + 115.7% + 37.2% S$'000 S$'000 $80,000 $80,000 $60,000 $60,000 + 125.8% + 66.6% $40,000 $40,000 75,247 75,247 54,864 $20,000 $20,000 34,891 26,635 26,635 15,992 11,798 $0 $0 4Q FY 4Q 2007 FY2007 2006 2007 Forecast Actual 1 February 2008 Allco Commercial REIT 6
Net Property Income Net Property Income: 32.4% up on FY2007 forecast, 113.6% up on FY2006 � Q4 boosted by S$7.276 million, of which S$6.626 million of NPI came from new assets in Japan and Singapore – representing 91.1% of the out-performance over Q4 forecast � Central Park’s increased NPI accounted for 22.0% of FY2007’s positive variance to forecast Actuals Year-on-Year FY2007 Forecast to Actual + 113.6% + 32.4% S$'000 S$'000 $60,000 $60,000 $40,000 $40,000 + 54.6% + 112.8% 61,422 61,422 46,377 $20,000 $20,000 28,757 20,614 20,614 13,338 9,686 $0 $0 4Q 2007 FY 2007 4Q FY Forecast Actual 2006 2007 1 February 2008 Allco Commercial REIT 7
Net Property Income by asset NPI exceeds FY2007 forecast by 32.4%, strongly driven by existing assets � NPI up on forecast by S$15.045 million or 32.4%, with more than half the increase attributable to out-performance of assets held before new acquisitions made in 2H2007 Assets in the Circular forecast contributed to S$8.4m Assets acquired post 30 June 2007 added S$6.6m to NPI (56.0%) of the out-performance of NPI that forecast for FY2007 S$(000) 22,450 19,135 $20,000 16,959 16,942 $10,000 7,319 5,200 5,117 3,200 2,951 2,861 1,900 1,985 1,028 491 261 0 0 0 0 0 $0 China Square 55 Market Central Park Centrelink AWPF Cosmo Plaza Azabu Aco Ebara Galleria KeyPoint Central Street Headquarters Techno-Serve Otemae Forecast FY2007 Actual FY2007 1 February 2008 Allco Commercial REIT 8
Distributable Income Distributable Income: 109.5% up on FY2006 � Resulting from strong gross revenue growth of 115.7%, partially diluted by higher property operating, trust and finance expenses incurred through new acquisitions and full year contribution of existing assets Actuals Year-on-Year FY2007 Forecast to Actual + 109.5% S$'000 + 32.5% S$'000 $40,000 $40,000 + 46.9% 47,526 + 106.1% 47,526 $20,000 $20,000 35,871 22,687 15,567 15,567 10,600 7,552 $0 $0 4Q 2007 FY 2007 4Q FY Forecast Actual 2006 2007 1 February 2008 Allco Commercial REIT 9
Distribution statement DPU: strong growth year-on-year, out-performance of FY2007 forecast 2007 Actual 2007 Forecast 2006 Actual* (S$000) (S$000) (S$000) Gross Revenue 75,247 54,864 34,891 Less property operating expenses (13,825) (8,487) (6,134) Net property Income 61,422 46,377 28,757 Interest income 3,635 102 292 Other income 714 - 223 Trust expenses (11,312) (7,439) (2,657) Finance costs (19,512) (9,657) (7,499) Net gain/(loss) on investment properties, other investment and derivative financial instruments 287,197 (3,407) 118,961 Total return before income tax and distribution 322,144 25,976 138,077 Income tax expense (31,088) (2,315) (32,016) Total return after income tax, before distribution 291,056 23,661 106,061 Net effect of non-tax deductible/(non taxable items) and other (243,530) 12,210 (83,374) adjustments Amount for distribution to Unitholders 47,526 35,871 22,687 Number of Units issued and issuable at end of period (‘000) 705,963 602,874 495,588 Distribution per Unit (cents) 6.73 5.95 4.58 * For the period 30 March 2006 to 30 June 2006. 1 February 2008 Allco Commercial REIT 10
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