Corporate Presentation 1 st Quarter 2018 Financial Results 17 May - PowerPoint PPT Presentation

Corporate Presentation 1 st Quarter 2018 Financial Results 17 May 2018

Important Notice This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for units in MRCB-Quill REIT (formerly know as Quill Capita Trust) (“ MQReit ”) . The past performance of MQReit is not necessarily indicative of the future performance of MQReit. This presentation 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 limitations) 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 and occupancy, changes in operating expenses including employee wages, benefits and training, property expenses and governmental and public policy changes. You are cautioned not to place undue reliance on these forward-looking statements which are based on the manager’s current view of future events. The value of units in MQReit (Units”) and the income derived from them may fall as well as 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 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 Main Board of Bursa Malaysia Securities Berhad. Listing of the Units on the Bursa Securities does not guarantee a liquid market for the Units. The information in this Announcement must not be published outside Malaysia. 2 MRCB-Quill REIT Presentation *May 2018*

Contents Slide No. 4 • Financial Results 12 • Portfolio Update 16 • Conclusion 3 MRCB-Quill REIT Presentation *May 2018*

Financial Results Quill Building 5 - IBM MRCB-Quill REIT Presentation *May 2018*

Achieved 1Q 2018 Distributable Income Per Unit of 2.10 sen (Unaudited) (Unaudited) Variance (RM’000) 1Q 2017 1Q 2018 Gross Revenue 46,571 44,045 -4.9% Net Property Income -7.0% 37,135 34,536 Net Income 1 23,165 21,009 -9.3% Distributable Income 3 23,165 22,397 -3.3% EPU 2 2.17 sen 1.97 sen -9.3% Distributable Income 2.17 sen 2.10 sen -3.3% Per Unit 3 1 Net Income refers to realised income after taxation (exclude gain from re-measurement of derivatives and revaluation surplus) 2 EPU refers to Realised Earnings Per Unit 3 Distributable Income refers to realised income after taxation adjusted for Manager's management fee payable in units amounting to RM1.39 million. Distributable income per unit for the current quarter / period is computed based on the units in circulation of 1,068,000,000 units. MRCB-Quill REIT Presentation *May 2018* 5

Total Assets – RM2.27 billion NAV per unit – RM1.2750 (Unaudited) (Unaudited) (Audited) (Unaudited) as at as at as at as at 31 Jun 2017 30 Sept 2017 31 Dec 2017 31 Mar 2018 (RM’000) (RM’000) (RM’000) (RM’000) Non Current Assets 2,224,597 2,224,395 2,181,387 2,181,654 Non Current Asset held - - 25,000 25,000 for sale Current Assets 79,963 56,715 82,005 63,229 Total Assets 2,304,560 2,281,110 2,288,392 2,269,883 Current Liabilities 21,182 136,935 142,586 152,979 Non Current Liabilities 878,952 763,605 761,082 755,242 Net Assets 1,404,426 1,380,570 1,384,724 1,361,662 No of Units 1,068,000 1,068,000 1,068,000 1,068,000 NAV per Unit (RM) 1.3150 1.2927 1.2966 1.2750 6 MRCB-Quill REIT Presentation *May 2018*

Stable Financial Indicators Unaudited Unaudited Audited Unaudited as at as at as at as at 31 Jun 17 30 Sept 17 31 Dec 17 31 Mar 18 Total Debts (RM’000) 853,101 854,150 853,453 854,177 Gearing Ratio ¹ 0.37x 0.37x 0.37x 0.38x Interest Coverage 2 3.44x 3.38x 2.40x 3.27x Average Term to Maturity (year) 3 3.30 3.05 2.79 2.55 Average Cost of Debt (p.a.) 4 4.4% 4.4% 4.4% 4.4% Notes: 1.Gearing ratio refers to Gross Debt over Total Assets. 2.Interest coverage refers to year to date (YTD) EBITDA / YTD Interest Expense 3.Average Term to Maturity means weighted average time lapse to maturity 4.Average Cost of Debt is calculated based on YTD Interest Expense / Average Weighted Borrowing 7 MRCB-Quill REIT Presentation *May 2018*

Capital Management Prudent Capital Management 76%* of borrowings on Average cost of debt Gearing Ratio fixed rate 60% SC Limit 4.4% 50% Floating rate, 24% 40% Gearing level 38% CPs Fixed rate, MTN 30% RM118m 76% RM118m RM117m 38% CPs 20% 10% Below SC limit of 50% Total average borrowings : 0% RM861 mil 31-Mar 8 MRCB-Quill REIT Presentation *May 2018*

Debt Maturity Profile  Next Refinancing Due in September 2018 Average debt to maturity : 2.55 years RM(mil) 450 45% CP 400 RM279mil CP TL 350 RM279mil RM110mil TL RM110mil CPs 300 RM118m RM118m 250 CPs 22% 200 CP 19% RM130mil MTN MTN 150 RM130mil CP RM60 mil 14% CP TL RM144mil RM61 mil RM117m MTN 100 TL RM20mil RM117m 50 0 2017 2018 2019 2020 2021 2022 Note; 1. MTN - Medium Term Notes 2. CP – Commercial Papers 9 MRCB-Quill REIT Presentation *May 2018* 3. TL – Term Loan

Portfolio Update @ 31 March 2018 Quill Building 3 - BMW MRCB-Quill REIT Presentation *May 2018*

Portfolio of Quality Assets @31 March 2018 Market Value of 11 Properties: RM2.20 bil (c) Quill Building 1 Quill Building 4 Quill Building 2 - DHL 1 (a) - DHL 2 (a) - HSBC (a) Total NLA: Disposal completed 2.25 mil sq ft Platinum Sentral on 12 April 2018 - KL Sentral (b) *Excluding car park area Portfolio Quill Building 3 Quill Building 5 Quill Building 8 Occupancy - BMW (a) - IBM (a) - DHL (XPJ) (a) (d) Rate: 96.2% Weighted Average Term to Expiry: Part of Plaza Wisma Technip (b) Menara Shell (b) 5.1 years TESCO Building Mon’t Kiara (b) Penang (a) a) The Properties were valued by Nawawi Tie Leung Property Consultants Sdn. Bhd, an independent firm of professional valuer registered with the Board of Valuers, Appraisers & Estate Agents Malaysia. b) The Properties were valued by CH Williams Talhar & Wong Sdn. Bhd, an independent firm of professional valuer, registered with the Board of Valuers, Appraisers & Estate Agents Malaysia. c) Save for Quill Building 8 – DHK (XPJ), all properties were based on valuation as at 31 December 2017. Quill Building 8 – DHK (XPJ) was based on valuation dated 17 October 2017. d) Proposed disposal of Quill Building 8 – DHL (XPJ) was announced on 8 January 2018 and completed on 12 April 2018. 11 MRCB-Quill REIT Presentation *May 2018*

Geographical Diversification Other Klang By Valuation Valley Area Mont' Kiara 1% 5% Cyberjaya Penang 17% 6% ¹ Kuala Lumpur City Centre 8% Klang 77% Valley Cyberjaya 17% KL Sentral Penang 6% 62% Notes: (1) Other Klang Valley Area refers to Klang Valley generally excluding KL city centre, KL Sentral and Mont’ Kiara. Klang Valley refers to Kuala Lumpur and Selangor State excluding Kuala Selangor, Sepang and Sabak Bernam. (2) The Properties were valued by Nawawi Tie Leung Property Consultants Sdn Bhd and CH Williams Talhar & Wong Sdn Bhd, independent firm of professional valuers registered with the Board of Valuers, Appraisers & Estate Agents Malaysia. 12 MRCB-Quill REIT Presentation *May 2018*

Diversified Segmental Contributions Car Park 2% Retail Assets 9% By Valuation Other Commercial Building 1% Office 88% Notes: (1) Office comprises Quill Buildings (excluding Quill Building 8-DHL (XPJ) at Glenmarie, Shah Alam), Platinum Sentral, Wisma Technip and Menara Shell (2) Retail refers to retail portion of Plaza Mont’ Kiara & TESCO Building Penang (3) Car Park refers to car parking bays in Plaza Mont’ Kiara (4) Other commercial building refers to Quill- Building 8- DHL (XPJ) at Glenmarie, Shah Alam (5) The Properties were valued by Nawawi Tie Leung Property Consultants Sdn Bhd and CH Williams Talhar & Wong Sdn Bhd, independent firm of professional valuers registered with the Board of Valuers, Appraisers & Estate Agents Malaysia. 13 MRCB-Quill REIT Presentation *May 2018*

Tenant Mix Well Balanced Tenancy Mix FMCG, 0.3% By Net Lettable Area Manufacturing, Insurance 0.2% 7.2% Services Government Linked Office 0.7% 14.4% IT/ Electronics 4.2% Retail 18.8% Oil & Gas, 30.9% Education 0.8% Banking 8.5% Automotive 2.4% Logistics 11.6% 14 MRCB-Quill REIT Presentation *May 2018*

Lease Expiry Profile - 28% of Total NLA due in 2018 sq ft Lease Up for Renewal by NLA - 31 Mar 2018 900,000 800,000 Lease Expiring Renewed 700,000 Not Renewed 600,000 4% 500,000 39% 400,000 300,000 23% 200,000 17% 15% 100,000 1% 1% - 2018 2019 2020 2021 2022 - 2032 % of net lettable area that are due for renewal 15 MRCB-Quill REIT Presentation *May 2018*

Conclusion Quill Building 1 – DHL 1 MRCB-Quill REIT Presentation *May 2018*