CPN Retail Growth Leasehold REIT Investor Presentation FY2018 February 2019
Disclaimer The information contained in this presentation is for information purposes only and does not constitute an offer • or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for units in CPN Retail Growth Leasehold REIT (CPNREIT and units in CPNREIT, “Units”) in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever. This presentation may include information which is forward-looking in nature. Forward-looking information • involve known and unknown risks, uncertainties and other factors which may impact on the actual outcomes, including economic conditions in the markets in which CPNREIT operates and general achievement of CPNREIT business forecasts, which will cause the actual results, performance or achievements of CPNREIT to differ, perhaps materially, from the results, performance or achievements expressed or implied in this presentation. This presentation has been prepared by the CPN REIT Management Company Limited as the REIT Manager of • CPNREIT. The information in this presentation has not been independently verified. No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. None of the REIT Manager or Property Manager or any of its agents or advisers, or any of their respective affiliates, advisers or representatives, shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. This presentation is made, furnished and distributed for information purposes only. No part of this presentation • shall be relied upon directly or indirectly for any investment decision-making or for any other purposes. This presentation and all other information, materials or documents provided in connection therewith, shall not, • either in whole or in part, be reproduced, redistributed or made available to any other person, save in strict compliance with all applicable laws. Prepared by Investor Relations, CPN REIT Management Co., Ltd. Disclaimer Page 2
Agenda CPNREIT Overview Business Updates Key Financial Highlights Prepared by Investor Relations, CPN REIT Management Co., Ltd. Agenda Page 3
CPNREIT Overview Page 4
Establishment and investment track record A robust and diversified portfolio of high-quality assets 2017 5 2 1 Conversion of Hotel Shopping Centers Office Buildings CPNRF to CPNREIT (2) Acquisition of Acquisition of CentralPlaza Rama 2 CentralPlaza Chiangmai Airport CentralPlaza Rama 3 2009 Acquisition of CentralFestival Pattaya Beach 1 st Follow-on Hilton Pattaya Hotel 2005 Offering Initial Public 2014 Offering of 2 nd Follow-on CPNRF (1) Offering Acquisition of CentralPlaza Pinklao Note: (1) CPN Retail Growth Leasehold Property Fund (2) The conversion of CPNRF to CPNREIT, along with the two assets acquired, was completed on December 1, 2017 Prepared by Investor Relations, CPN REIT Management Co., Ltd. CPNREIT Overview Page 5
Top-class assets at prime locations Front-running properties in Greater Bangkok and major provinces for locals and tourists CentralPlaza Pinklao Pinklao Tower A & B CentralPlaza Chiangmai Airport Year acq. 2009 Year acq. 2009 Lease end Dec-2024 Lease end Dec-2024 Year acq. 2014 NLA (sqm) 27,585 NLA (sqm) 34,320 Lease end Apr-2044 Occ. rate 99% Occ. rate 90% NLA (sqm) 37,803 Occ. rate 93% CentralPlaza Rama 2 Chiangmai Year acq. 2005 Lease end Aug-2025 Thailand NLA (sqm) 82,590 CentralFestival Pattaya Beach Occ. rate 96% Pattaya Year acq. 2017 Lease end Aug-2037 Bangkok NLA (sqm) 29,404 Metropolitan Area Occ. rate 98% Hilton Pattaya 2 Year acq. 2017 CentralPlaza Rama 3 Lease end Aug-2037 Rooms 302 Year acq. 2005 Lease end (1) Aug-2095 Occ. rate 93% NLA (sqm) 37,122 Occ. rate 94% Note: Asset information as 31 December 2018 (1) Includes option to extend lease 2 more times at 30 years each. (2) Property subleased to CPN Pattaya Hotel Co., Ltd.in which CPNREIT earns rental income Prepared by Investor Relations, CPN REIT Management Co., Ltd. CPNREIT Overview Page 6
Solid operating performance track record 249 95 % ~maintain High occupancy levels across YoY all properties Outstanding 98 % 93 % performances of newly acquired properties CentralFestival Hilton Pattaya Pattaya Beach Note: Asset information as of December 31, 2018 Growing TAV from higher property value Healthy revenue generated from operations and acquisition ~13% Unit: THB bn Unit: THB / unit ~12% 5Y CAGR 5Y CAGR 21.27 21.18 4.93 3.53 3.53 15.19 14.82 3.31 14.01 3.14 12.09 2.71 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 Prepared by Investor Relations, CPN REIT Management Co., Ltd. CPNREIT Overview Page 7
Flexible funding capacity for portfolio expansion Borrowing and Gearing Limit Borrowing NAV Liabilities % Gearing Unit: THB mn 46,850 50000 47,056 Conversion to 45000 CPNREIT 40000 CPNRF Rights 33,604 32,784 Offering 30,991 35000 REIT Gearing Limit (IG) 30000 29,993 29,995 29,462 29,242 60% of TAV 27,690 25000 19,780 REIT Gearing 20000 Limit (non-IG) 17,827 31% of TAV 31% of TAV 15000 35% of TAV 10000 Property Fund Gearing Limit 5000 7% 7% 6% of NAV of NAV 2% of NAV 0.10x of NAV of NAV 0 2015 2014 2017 2Q18 2016 2013 Loans from 3Y Tenure Financial Institutions (1) Unused 18% Debt Profile 31% Total CPNREIT 2.51% 42% available 14,499 avg. cost credit THB mn 58% of bonds facilities 69% Used 51% Corporate 10Y Tenure Debentures Note: Debt profile as of 31 December 2018. (1) All loans from financial institutions are under fixed rate with an average cost of debt at 2.43% Prepared by Investor Relations, CPN REIT Management Co., Ltd. CPNREIT Overview Page 8
Consistently high distribution yields Distribution per Unit and Yield 1Q 2Q 3Q 4Q Sector Ave. THB/unit 1.80 1.3260 8% 1.617 1.2283 1.60 1.1528 CPNRF/CPNREIT 1.1371 (1) 7% 6.7% Distribution Yield 1.40 1.0081 6.3% 5.9% 6% 5.8% 1.20 5.6% 5.1% 1.00 5% 4.8% 4.7% 0.80 4.1% 4.1% Sector Average (2) 4% 3.8% 3.9% 0.60 3% 0.40 2% 0.20 0.00 1% 2013 2014 2015 2016 2017 2018 Distribution 4 90 % Policy times per year minimum payout of distribution to unitholders distributable income Source: CPNRF and CPNREIT announcements; SETSMART Note: Yield on unit distribution based on last twelve months’ accumulated distribution and the pre-record date trade price (1) 4Q17 distribution was announced as a capital reduction due to the absorption of CPNRF’s retained earnings into CPNREIT’s unit capital (2) Sector average represents the SET Property Fund and REIT sector dividend yield as of the end of each period. Prepared by Investor Relations, CPN REIT Management Co., Ltd. CPNREIT Overview Page 9
Growth strategy and focus areas Continuous effort to identify, study, Geographical expansion assess and review, jointly with the REIT Manager and Property Manager, new investment opportunities M&A Asset diversification Provide long-term returns to unitholders Remerchandizong tenant mix and improve zoning of malls Asset Optimize NLA and common area utilization Enhancement Initiatives (AEI) Improve accessibility to increase shopper traffic Upgrade amenities for better convenience Maximize Secure new tenants and lease renewals occupancy levels Organic with minimal Develop strong tenant relationships business interruption Growth Steady rental rate growth Optimize rental contract mix with upside potential Prepared by Investor Relations, CPNREIT Management Co., Ltd. CPNREIT Strategy Page 10
Why invest in CPNREIT? Invested properties size The largest retail REIT in Thailand 1 of Thailand’s retail PFs/REITs (1) Unit: THB bn with over THB 44 billion worth of invested properties 60.3 45.1 Top-class assets in prime locations 2 diversified throughout Bangkok and major provinces in Thailand 12.4 8.0 3.7 4.2 Strong professional network 3 CPNREIT TLGF FUTUREPF LHSC CRYSTAL MJLF comprising leaders in mixed-use property development and asset management industries Solid performance track record 4 in both financial and operating results Flexible funding capacity for expansion 5 investments through leveraged financing Consistently high distribution yields 6 and reward sustainable returns to unitholders Note: (1) Based on announcements of latest financial results for Property Funds and REITs on the Stock Exchange of Thailand (as of 1 Mar 19) Prepared by Investor Relations, CPN REIT Management Co., Ltd. CPNREIT Proposition Page 11
Business Updates Page 12
Grand opening @ CentralPlaza Rama 3 Concept : “Where Nature Meets Urban Living” Date : 9 August 2018 Prepared by Investor Relations, CPN REIT Management Co., Ltd. Business Updates Page 13
Grand opening @ CentralPlaza Rama 3 Prepared by Investor Relations, CPN REIT Management Co., Ltd. Business Updates Page 14
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