Corporate Presentation 4 th Quarter 2016 Financial Results 25 - PowerPoint PPT Presentation

Corporate Presentation 4 th Quarter 2016 Financial Results 25 January 2017

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 The information in this Announcement must not be published outside Malaysia. MRCB-Quill REIT Presentation *January 2017*

Contents Slide No. 4 • Financial Results 12 • Portfolio Update  KLCA & Cyberjaya Office Market Outlook  Penang Retail Market Outlook 24 • Conclusion MRCB-Quill REIT Presentation *January 2017*

Financial Results Quill Building 5 - IBM MRCB-Quill REIT Presentation *January 2017*

Achieved 4Q 2016 EPU of 1.89 sen (Audited) (Unaudited) Variance (RM’000) 4Q 2015 4Q 2016 Gross Revenue 37,694 38,929 +3.3% Net Property Income 31,909 30,479 -4.5% Net Income 1 16,375 13,304 -18.8% EPU 2 2.48 sen 1.89 sen -23.8% 4 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 MRCB-Quill REIT Presentation *January 2017*

FY 2016 DPU Stable Year-on-Year (Unaudited) (Unaudited) Variance (RM’000) FY 2015 FY 2016 Gross Revenue 120,291 136,648 +13.6% Net Property Income 95,388 107,155 +12.3% Total Income for 54,021 59,156 +9.5% Distribution 1 EPU 2 9.06 sen 8.80 sen -3.0% Normalised EPU 2 8.96 sen 8.80 sen -1.8% DPU 3,4 8.47 sen 8.38 sen -1.1% 1 Total Income for Distributions refers to realised income after taxation (exclude gain from re-measurement of derivatives and revaluation surplus) 2 EPU refers to Realised Earnings Per Unit. FY 2015 normalized EPU excludes one-off gains on divestment of properties of 0.10 sen 3 DPU refers to Distribution Per Unit. DPU of 8.47 sen is 93.4% of realised EPU of 9.06 sen for FY 2015 and DPU of 8.38 sen is 95.2% of realised EPU of 8.80 sen for FY 2016 4 Excluding distribution of a one-off gain on divestment of properties of 0.09 sen per unit, the normalized DPU for FY 2015 was 8.38 sen MRCB-Quill REIT Presentation *January 2017*

Total Assets – RM2.3 billion NAV per unit – RM1.2988 (Unaudited) (Unaudited) (Unaudited) (Unaudited) as at as at as at as at 31 Mar 2016 30 Jun 2016 30 Sept 2016 31 Dec 2016 (RM’000) (RM’000) (RM’000) (RM’000) Non Current Assets 1,571,915 1,571,797 1,571,680 2,224,972 Current Assets 33,238 54,407 38,052 72,370 Total Assets 1,605,153 1,626,204 1,609,732 2,297,342 Current Liabilities 199,420 205,424 201,344 252,238 Non Current Liabilities 519,506 519,893 521,774 685,405 Net Assets 886,227 900,887 886,614 1,359,699 No of Units 661,381 661,381 661,381 1,068,000 NAV per Unit (RM) 1.3400 1.3621 1.3406 1.2988 MRCB-Quill REIT Presentation *January 2017*

Market Valuation as at 31 December 2016 Name of Properties Net Book Value as Market Surplus % at 31 Dec 2016 (a) Valuation at as /(Deficit) increase (prior to Proposed 31 Dec 2016 incorporated / Revaluation) (’000) into fund (decrease) (’000) (’000) Quill Building 1- DHL1 & Quill Building 4- DHL 2 (b) RM126,821 RM126,500 (RM321) (0.25) Quill Building 2- HSBC (b) RM120,724 RM121,700 RM976 0.81 Quill Building 3- BMW (b) RM 75,550 RM 76,500 RM950 1.26 Wisma Technip (c) RM172,351 RM173,000 RM649 0.38 Part of Plaza Mont’ Kiara (c) RM114,000 RM116,000 RM2,000 1.75 Quill Building 5 – IBM (b) RM 45,200 RM 45,300 RM100 0.22 Quill Building 8 – DHL (XPJ) (b) RM 26,400 RM 25,000 (RM1,400) (5.30) Tesco Building, Penang (b) RM140,000 RM140,000 - - Platinum Sentral (c) RM750,000 RM750,000 - - Menara Shell (c) RM647,411 RM648,000 RM589 0.09 Total RM2,218,457 RM2,222,000 RM3,543 0.16 (a) The Net Book Value of investment properties as at 31 December 2016 (prior to the Proposed Revaluation) comprise of the brought forward net book value as at 31 December 2015 together with asset enhancement related costs incurred during the year. (b) 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. (c) 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. Quill Capita Trust Presentation*January 2015*

Stable Financial Indicators Unaudited Unaudited Unaudited Unaudited as at as at as at as at 31 Mar 16 30 Jun 16 30 Sept 16 31 Dec 16 Total Debts (RM’000) 688,607 690,180 689,366 851,567 Gearing Ratio ¹ 0.43x 0.42x 0.43x 0.37x Interest Coverage 2 3.05x 3.05x 3.02x 3.20x Average Term to Maturity (year) 3 2.84 2.60 2.40 2.69 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 MRCB-Quill REIT Presentation *January 2017*

Capital Management Prudent Capital Management 68%* of borrowings on Average cost of debt Gearing Ratio fixed rate 60% SC Limit 4.4% 50% Floating rate, 40% 32% Gearing level 37% CPs Fixed rate, MTN RM118m 30% RM118m 68% RM117m 37% CPs 20% 10% Below SC limit of 50% Total average borrowings : 0% RM860 mil 31-Dec MRCB-Quill REIT Presentation *January 2017*

Debt Maturity Profile Next Refinancing Due in March 2017 RM(mil) Average debt to maturity : 2.69 years 450 45% 400 CP RM279mil 350 TL RM110mil 300 CPs RM118m RM118m 250 CPs 22% 200 19% CP CP RM130mil RM130mil CP 150 MTN MTN MTN 14% TL RM144mil RM60m RM60 mil RM60 mil RM72.2m MTN TL 100 RM20mil RM117m 50 0 2015 2016 2017 2018 2019 2020 2021 Note; 1. MTN - Medium Term Notes 2. CP – Commercial Papers MRCB-Quill REIT Presentation *January 2017* 3. TL – Term Loan

Portfolio Update Quill Building 3 - BMW MRCB-Quill REIT Presentation *January 2017*

Portfolio of Quality Assets Market Value of 11 Properties: RM2.22 bil Quill Building 1 Quill Building 4 Quill Building 2 - DHL 1 (a) - DHL 2 (a) - HSBC (a) Total NLA: 2.25 mil sq ft Platinum Sentral - 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) Rate: 98% Weighted Average Term to Expiry: Part of Plaza Wisma Technip (b) Menara Shell (b) 5.8 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. MRCB-Quill REIT Presentation *January 2017*

Geographical Diversification Other Klang By Valuation Valley Area Mont' Kiara 1% 5% Penang Cyberjaya 6% 17% 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. MRCB-Quill REIT Presentation *January 2017*