2Q20 PERFORMANCE April – June 2020 Bualuang K.E. Retail Leasehold Real Estate Investment Trust
DISCLAIMER Investment involves risk. Prospective should understand the characteristics of the Trust units and study information about Bualuang K.E. Retail Leasehold Real Estate Investment Trust (“BKER”) before making a decision to invest in the Trust units. This presentation is for information purposes only and is intended only for the initial direct attendee of the presentation. It may not be reproduced or redistributed to any other person. No part of this presentation, nor the fact of its existence, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. This presentation is not to be relied upon in any manner as legal, tax or any other advice and shall not be used in substitution for the exercise of independent judgment and each person made aware of the information set-forth hereof shall be responsible for conducting its own investigation and analysis of the information contained herein. Except where otherwise indicated, the information provided in this presentation is based on matters as they exist as of the date stated or, if no date is stated, as of the date of preparation and not as of any future date, and the information and opinions contained herein are subject to change without notice. None of the BKER nor any of its subsidiaries accepts any obligation to update or otherwise revise any such information to reflect information that subsequently becomes available or circumstances existing or changes occurring after the date hereof. None of the BKER or any of its subsidiaries or any of their respective directors, officers, employees or agents shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation and any and all such liability is expressly disclaimed. Some statements made in this presentation are forward-looking statements, which are subject to various risks and uncertainties. These include statements with respect to strategies and beliefs and other statement that are not historical facts. These statement can be identified by the use of forward- looking terminology such as “may”, “will”, “expect” , “intend”, “estimate”, “continue”, “plan” or other similar words. T he statements are based on the assumptions and beliefs of BKER management in light of the information currently available to BKER. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in this Presentation is, or should be relied on as promise or representation of BKER as to the future.
B U S I N E S S U P D A T E 01 O P E R A T I O N A L H I G H L I G H T 02 Agenda 03 F I N A N C I A L H I G H L I G H T 04 B U S I N E S S O U T L O O K 05 A P P E N D I X
2Q20 OVERVIEW C O V I D 1 9 i m p a c t e d p e r f o r m a n c e t h r o u g h m a l l c l o s u r e a n d r e n t a l w a i v e r / d i s c o u n t s – r e v e n u e d e c l i n e d 5 1 . 4 % Q O Q H o w e v e r , u n d e r l y i n g p e r f o r m a n c e i s h e a l t h y w i t h h i g h o c c u p a n c y r a t e s a t 9 0 . 5 % , s t a b l e r e n t a l r e v e r s i o n s , a n d h i g h r e t e n t i o n r a t e M a n a g e d s i g n i f i c a n t r e n t a l a n d s e r v i c e c o s t r e d u c t i o n s o f 2 3 . 2 % Q O Q t o c u s h i o n r e v e n u e i m p a c t C o n t i n u i n g A s s e t E n h a n c e m e n t I n i t i a t i v e s ( A E I ) a t P l e a r n a r y M a l l i n c l u d i n g m o s t c o s m e t i c w o r k d o n e
BUSINESS UPDATE
Sammakorn Place Rangsit NLA: 3,413 Sqm. Rangsit Corridor Pop: 806,000 PRIME LIFESTYLE PROPERTIES Sammakorn Place Ratchapruk NLA: 4,585 Sqm. 1 0 p r i m e l o c a t i o n s w i t h w e l l - q u a l i f i e d t e n a n t s Ratchapruek Corridor H i g h - i n c o m e a n d Plearnary Mall NLA: 11,353 Sqm. Pop: 852,000 Praditmanutham Corridor h i g h - g r o w t h n e i g h b o r h o o d s Pop: 793,000 A v e r a g e l e a s e h o l d t e r m Amorini The Crystal Ekamai-Ramindra The Crystal SB Ratchapruek NLA: 30,778 Sqm. NLA: 5,092 Sqm. NLA: 24,426 Sqm. 2 8 y e a r s Crystal Design Center NLA: 36,021 Sqm. Sammakorn Place Ramkhamhaeng The Scene NLA: 10,340 Sqm. O r g a n i c g r o w t h p o t e n t i a l NLA: 6,931 Sqm. w i t h r e - t e n a n t i n g a n d Eastern Bangkok I’m Park c o s t m a n a g e m e n t NLA: 6,601 Sqm. Pop: 338,000 Chula-Samyan Pop: 97,000
C O V I D 1 9 I M P A C T Closure P e r i o d : A p r i l – M a y 1 6 , 2 0 2 0 Except: Supermarket Bank Pet food shop Pharmacy Convenience store Take away & Delivery F&B E a s i n g l o c k d o w n C O N D I T I O N Phase 1 Phase 2 Phase 3 Phase 4 (May 3) (May 17) (June 1) (June 15) - F&B Sections (Restaurant, - Spa - Playground - Salon & Barber Food court, Café) - Fitness - Game arcade - Pet salon - Cinema - Shopping Mall - Beauty Clinic - Learning Center
C O V I D 1 9 I M P A C T S afety measures Screening Point Alcohol Gel Supplement Safety Signage Mask Wearing Requirement C O U R S E O F A C T I O N Deep Cleaning Social Distancing
C O V I D 1 9 I M P A C T Tenant allev iation measures Waive/Discount rental & service fee Tenant category % NLA April May June Education 11% Cinema 100% 100% 100% C O U R S E Fitness O F A C T I O N IT shop 6% 100% 70% 70% Salon F&B 14% 100% 70% 50% (without takeaway/delivery) Furniture Fashion 25% 100% 50% 50% Service Average Portfolio 70% 64% 40%
C O V I D 1 9 I M P A C T Resilient performance during COVID19 Compared to K ey measure pre -COVID 1 9 C O N S E Q U E N C E S Traffic 80% Sale % N LA # Supermarket 28 99%* F&B 21 77% Fashion 7 Fully recovered in June * Supermarket sales spiked up to 115% of average level in 1Q20 due to hoarding behavior pre-shutdown. # Net leasable area of revenue sharing tenants only
Marketing & Event Campaign BKER 2020 MID YEAR SALE P eriod : June 1 6 – July 1 4 , 2 0 2 0 Join w it h 5 B ank :
PLEARNARY REVAMP Period: April 2020 B UDGE T: 4 MB Signage Landscape Guardhouse Reception Counter Interior area Paint Lighting B e f o r e B e f o r e B e f o r e B e f o r e B e f o r e B e f o r e B e f o r e A f t e r A f t e r A f t e r A f t e r A f t e r A f t e r A f t e r
FTSE INDEX On June 22, 2020 : BKER is honored to be included in FTSE Global Equity Index Series (FTSE GEIS)
OPERATIONAL HIGHLIGHT
KEY OPERATING INDICATORS Average 1Q20 2Q20 1Q20 2Q20 139,539 Rental Occupancy Net Rate Leasable Rate sqm. 92.8% 90.5% 551 540 (Baht/sqm) Area Weighted Rental 1Q20 2Q20 1Q20 2Q20 1Q20 2Q20 Retention Average Reversion Rate Lease Rate 1.73 1.61 1.80% 1.70% 81% 74% Expiry (yrs.)
PORTFOLIO PERFORMANCE Portfolio remains healthy in the face of COVID19 600 580 100% 551 540 crisis 95% 93.3% 92.70% 90% 92.8% Occupancy Rate declines 90.5% slightly to 90.5% due to non- 85% 400 renewals of mainly SME tenants. 80% 75% ARR decreases by 2%QOQ because of the closure and 70% lower sales amount of 200 Net waive/discount rental rate 65% revenue-sharing tenants. = 200 Baht/sqm 60% Net ARR is 200 Baht/Sqm 55% reflecting average discounts of 63% in 2Q20. 0 50% COMMITTED 4Q19 1Q20 2Q20 COMMITTED (As of June (As of June 30,2020) 30,2020) Average rental rate (Baht/ Sqm.) Occupancy rate
LEASING PERFORMANCE Leasing activity is steady QOQ 97% 100% 3.50% Reversion Rates remains 90% similar as tenants maintain 81% 3.00% 80% long-term outlook when 74% 2.90% R e n t a l r e v e r s i o n r a t e renewing rental rates 2.50% 70% R e t e n t i o n R a t e 60% Retention declines slightly 2.00% as impact of COVID-19 50% 1.80% 1.70% 1.50% 40% Leases Number Sqm. 30% 1.00% 6,590 Renewal 128 600 New 10 20% 7,189 Total Portfolio 13 8 0.50% 10% 0% 0.00% 4Q19 1Q20 2Q20 Retention rate Rental Reversion Rate
PORTFOLIO PROFILE Well-diversified Tenant Mix focused on Weighted Average lease Expiry = 1.61 yrs. “Necessity” and “Experiential” tenants 40.0% 29.6% 35.0% Supermarket Other Service Other Tenants Cinema 8.33% 0.50% Office 1.90% 5.75% 17.6% 7.31% Anchor Tenants 30.0% Lifestyle Fitness 5.70% 4.48% 25.0% 19.2% Financial 3.25% 20.0% Beauty & Health 7.98% 15.0% 14.3% Education 10.0% 11.3% 5.62% Home & Construction 27.93% 6.7% 5.0% Fashion & Accessories Food & Beverage 4.34% 1.2% 16.91% 0.0% <= 12 12-24 24-36 >36 M o n t h 2Q20
FINANCIAL HIGHLIGHT
KEY FINANCIAL INDICATORS – Income Statement 1Q20 2Q20 Total 1Q20 2Q20 Distribution Revenue Income (MB) 139.86 - 350.8 (MB) 170.4 (Capital reduction) Distribution 1Q20 2Q20 1Q20 2Q20 Net investment per Unit Income (MB) (Baht) 0.16 - 148.6 14.6
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