Corporate Presentation 2 nd Quarter 2018 Financial Results 8 August - PowerPoint PPT Presentation

Corporate Presentation 2 nd Quarter 2018 Financial Results 8 August 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 The information in this Announcement must not be published outside Malaysia. 2 MRCB-Quill REIT Presentation *August 2018*

Contents Slide No. 4 • Financial Results 9 • Portfolio Update 15 • Conclusion 3 MRCB-Quill REIT Presentation *August 2018*

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

Delivers Stable DPU of 4.23 sen for 1H 2018 (Unaudited) (Unaudited) Variance (RM’000) 2Q 2017 2Q 2018 43,609 43,691 0.2% Gross Revenue 0.6% Net Property Income 33,444 33,647 Net Income 1 22,043 23,486 6.5% Distributable Income 3 24,179 24,486 1.3% EPU 2 2.06 sen 2.19 sen 6.2% Distributable Income 2.26 sen 2.28 sen 0.9% Per Unit 1H 2017 1H 2018 DPU 4 4.23 sen 4.23 sen - 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 and income previously not distributed. 4 DPU refers to Distribution Per Unit MRCB-Quill REIT Presentation *August 2018* 5

Total Assets – RM2.29 billion NAV per unit – RM1.2537 (Unaudited) (Audited) (Unaudited) (Unaudited) as at as at as at as at 30 Sept 2017 31 Dec 2017 31 Mar 2018 30 Jun 2018 (RM’000) (RM’000) (RM’000) (RM’000) Non Current Assets 2,224,395 2,181,387 2,181,654 2,183,285 Non Current Asset held - 25,000 25,000 - for sale Current Assets 56,715 82,005 63,229 107,752 Total Assets 2,281,110 2,288,392 2,269,883 2,291,037 Current Liabilities 136,935 142,586 152,979 148,458 Non Current Liabilities 763,605 761,082 755,242 753,515 Net Assets 1,380,570 1,384,724 1,361,662 1,389,064 No of Units 1,068,000 1,068,000 1,068,000 1,071,783 NAV per Unit (RM) 1.2927 1.2966 1.2750 1.2537 6 MRCB-Quill REIT Presentation *August 2018*

Prudent Capital Management Next refinancing due in September 2018  Stable financial indicators  Majority Fixed Rate Gearing Ratio Average Cost of Borrowings Debt Floating rate, Gearing Ratio 4.4% pa 24% 60% Fixed rate, SC Limit CPs 76% 50% RM118m RM118m Maintained 40% CPs (1Q 2018: 4.4% pa) 37% 30% Total Debt: RM853.42 mil 20% (1Q 2018: RM854.18 mil ) Average Debt to 10% Maturity 0% Interest Coverage 2.30 years 30-Jun 3.38 x Below SC limit of 50% Maintained Maintained (1Q 2018: 3.27x) (1Q 2018: 2.55 years) (1Q 2018 : 38%) 7 MRCB-Quill REIT Presentation *August 2018*

Debt Maturity Profile  Next Refinancing Due in September 2018 Average debt to maturity : 2.30 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 8 MRCB-Quill REIT Presentation *August 2018* 3. TL – Term Loan

Portfolio Update @ 30 June 2018 Quill Building 3 - BMW MRCB-Quill REIT Presentation *August 2018*

Portfolio of Quality Assets @ 30 June 2018 Market Value of 10 Properties: RM2.18 bil (c) Quill Building 1 Quill Building 4 Platinum Sentral - DHL 1 (a) - DHL 2 (a) - KL Sentral (b) Total NLA: 2.19 mil sq ft *Excluding car park area Portfolio Quill Building 2 Quill Building 3 Quill Building 5 Occupancy - HSBC (a) - BMW (a) - IBM (a) Rate: 96.0% Weighted Average Term to Expiry: 4.9 years Part of Plaza Wisma Technip (b) TESCO Building Menara Shell (b) 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) All properties were based on valuation as at 31 December 2017. 10 MRCB-Quill REIT Presentation *August 2018*

Geographical Diversification By Valuation Mont' Kiara 6% Cyberjaya Penang 17% 6% ¹ Kuala Lumpur City Centre 8% Klang 77% Valley Cyberjaya 17% KL Sentral Penang 6% 63% 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. 11 MRCB-Quill REIT Presentation *August 2018*

Diversified Segmental Contributions Car Park Retail 2% Assets By Valuation 9% Office 89% 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) 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 *August 2018*

Tenant Mix Well Balanced Tenancy Mix By Net Lettable Area FMCG, 0.3% Insurance 6.7% Manufacturing, 0.2% Services 0.7% Government Linked Office 14.6% IT/ Electronics 5.5% Retail 19.4% Oil & Gas, 31.3% Education 0.8% Banking 8.8% Automotive Logistics 2.5% 9.2% 13 MRCB-Quill REIT Presentation *August 2018*

Lease Expiry Profile - 28% of Total NLA due in 2018 Lease Up for Renewal by NLA - 30 June 2018 sq ft 900,000 800,000 Lease Expiring Renewed 700,000 Not Renewed 600,000 Disposed 3% 500,000 39% 400,000 300,000 3% 24% 200,000 17% 12% 100,000 1% 1% - 2018 2019 2020 2021 2022 - 2032 % of net lettable area that are due for renewal MRCB-Quill REIT Presentation *August 2018*

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

In Summary 1H 2018 : Stable DPU of 4.23 sen  Achieved Distributable Income Per Unit of 2.28 sen in 2Q 2018, which is 1.0% higher compared to 2Q 2017  Declares DPU of 4.23 sen in 1H 2018 (being 96.7% of the distributable income for 1H 2018). 1H 2018 of 4.23 sen is similar to the distribution in 1H 2017  Successfully renewed approximately 70% of the leases due in 1H 2018 Year 2018 Prospects – Ongoing Strategies  Proactive asset management strategies to focus on tenant relations and continuous building improvements  Prudent capital management strategies  Continue to explore yield accretive acquisition opportunities 16 MRCB-Quill REIT Presentation *August 2018*

Thank you For enquires, please contact: Ms Joyce Loh (General Line: 603-2786 8080) (Fax : 603-2780 0098)