CPN Retail Growth Leasehold REIT Opportunity Day 28 Nov 2019 - PowerPoint PPT Presentation

CPN Retail Growth Leasehold REIT Opportunity Day 28 Nov 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 Operation Highlights Key Financial Highlights Acquisition of New Assets Prepared by Investor Relations, CPN REIT Management Co., Ltd. Agenda Page 3

Operation Highlights Prepared by Investor Relations, CPN REIT Management Co., Ltd. Agenda Page 4

6Y (2014-2019) NLA and Occupancy Rates CentralFestival ‘000 sqm NLA (1) Pattaya Beach CentralPlaza 300 Chiangmai Airport 248 224 249 218 224 225 Acquired Projects 200 218 181 Existing Projects 100 0 3Q19 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 Occ. Rate (1) (%) 100 97 95 95 Rama 2 92 91 91 90 Rama 3 Pinklao (Retail) 80 Pinklao (A&B) 70 Chiangmai Airport Pattaya Beach 60 (2) Hilton Pattaya 98 93 89 97 94 98 96 99 96 92 67 97 97 87 90 96 90 97 94 78 99 85 93 98 93 96 94 99 90 93 96 96 99 89 94 98 50 Total (Excl.Hilton) 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 3Q19 Major Renovation Major Renovation @ CentralPlaza @ CentralPlaza Pinklao Rama 3 Note: (1) Anchor and in-line tenants only (2) Average full year occupancy rate Prepared by Investor Relations, CPN REIT Management Co., Ltd. Operation Highlights Page 5

New and Renewed Leases From 1 January to 30 September 2019 Project Renewals and New Leases /1 No. of Leases Area (sqm) % of Total /2 CentralPlaza Rama 2 61 4,058 5% CentralPlaza Rama 3 19 3,186 9% CentralPlaza Pinklao (Retail) 20 6,169 22% Pinklao Tower A and B 36 7,048 23% CentralPlaza Chiangmai Airport 48 6,818 19% CentralFestival Pattaya Beach 21 13,019 45% Total/Average 205 40,298 17% Note: /1 Exclude rental agreements < 1 year /2 Percentage of leasable area as of 30 September 2019 Prepared by Investor Relations, CPN REIT Management Co., Ltd. Operation Highlights Page 6

Lease Expiry Profile % of occupied area and expiry by year CDS Y2025 18% 11% 17% 21% 14% 29% 28% 28% 29% 42% 13% 29% 38% 44% 37% 25% 34% 26% 17% 16% 12% 10% 42% 21% 39% 22% 4% 3% 9% 2% 9% 9% 4Q19 Y2020 Y2021 Y2022 BEYOND Y2022 CentralPlaza Rama 2 CentralPlaza Rama 3 CentralPlaza Pinklao (Retail) Pinklao Tower A&B CentralPlaza Chiangmai Airport CentralFestival Pattaya Beach CPNREIT Note:Information as of 30 September 2019 Lease expiry excludes rental agreements < 1 year Prepared by Investor Relations, CPN REIT Management Co., Ltd. Operation Highlights Page 7

Rental Structure % of occupied area 40 Total 38 42 Portfolio CentralPlaza CentralPlaza Rama 2 Rama 3 60 58 62 Fixed Rent % of Tenant Sales 1 36 Central 39 CentralPlaza CentralPlaza Festival Pinklao 49 51 Chiangmai Pinklao Pattaya Tower A&B 61 Airport 64 Beach 99 Note: Information as of 30 June 2019 Prepared by Investor Relations, CPN REIT Management Co., Ltd. Operation Highlights Page 8

Key Financial Highlights Prepared by Investor Relations, CPN REIT Management Co., Ltd. Agenda Page 9

Change of Accounting Policy in 2019 (Unit : Baht Million) Revenue FY Fixed Rental Straight-line Adjustment increase (decrease) The Thai Accounting Standard 2018 210.00 241.93 31.93 - No. 17: Lease , stated that 2019 217.35 241.93 24.58 56.51 2020 224.96 241.93 16.97 16.97 “lease income from operating 2021 232.83 241.93 9.10 9.10 leases is recognized by the 2022 240.98 241.93 0.95 0.95 lessor on a straight-line basis 2023 249.41 241.93 (7.48) (7.48) over the lease term” 2024 258.14 241.93 (16.21) (16.21) 2025 267.18 241.93 (25.25) (25.25) 2026 276.53 241.93 (34.60) (34.60) 2,177.38 2,177.38 - Baht Million Adjustment 40 30 20 10 0 -10 Impact to P&L -20 -30 -40 2018 2019 2020 2021 2022 2023 2024 2025 2026 Year Prepared by Investor Relations, CPN REIT Management Co., Ltd. Key Financial Highlights Page 10

Balance Sheet Unit: Baht Million CPNREIT 30 Sep 18 31 Dec 18 31 Mar 19 30 Jun 19 30 Sep 19 Investment at fair value Central Rama 2 6,900 6,962 6,962 6,962 6,962 Central Rama 3 10,662 10,698 10,698 10,698 10,698 Central Pinklao 5,721 5,678 5,678 5,678 5,678 Chiangmai Airport 10,658 10,658 10,658 10,658 10,658 CentralFestival Pattaya Beach 7,283 7,289 7,289 7,289 7,289 Hilton Pattaya 3,453 3,465 3,465 3,465 3,465 Total investment in properties 44,677 44,750 44,750 44,750 44,750 Investment in securities 997 999 1,002 1,006 1,850 Cash on hand and at banks 610 342 423 428 228 Other assets 750 759 748 771 785 Total assets 47,034 46,850 46,923 46,955 47,613 Deposits received from customers 1,529 1,544 1,545 1,557 1,572 Borrowings 4,466 4,469 - - 726 Debentures 10,030 10,030 14,521 14,522 14,523 Other liabilities 941 812 850 853 763 Total liabilities 16,966 16,855 16,916 16,932 17,584 Net Asset 30,068 29,995 30,007 30,023 30,029 Capital received from unitholders 29,016 29,016 29,016 29,016 29,016 Equalisation account 216 216 216 216 216 Retained earning (deficit) 835 763 775 790 796 NAV per unit (in Baht) 13.5902 13.5573 13.5627 13.5697 13.5725 Prepared by Investor Relations, CPN REIT Management Co., Ltd. Key Financial Highlights Page 11

Profit and Loss Change Change Change Unit: Baht Million 3Q19 3Q18 2Q19 9M19 9M18 YoY QoQ YoY Property income 1,280.8 1,252.9 2.2% 1,274.6 0.5% 3,867.6 3,666.8 5.5% Rental and service income 1,278.6 1,212.0 5.5% 1,228.7 4.1% 3,855.3 3,660.1 5.3% Other income 2.2 40.9 (94.6%) 45.9 (95.2%) 12.3 6.7 83.6% Interest income 4.4 0.9 359.8% 1.0 326.1% 6.0 3.0 99.4% Total income 1,285.2 1,253.9 2.5% 1,275.6 0.7% 3,873.6 3,669.8 5.6% Property expenses 165.2 184.3 (10.4%) 173.9 (5.0%) 519.4 568.5 (8.6%) Cost of rental and service 34.4 35.9 (4.2%) 32.6 5.4% 98.1 103.8 (5.5%) Selling and administrative expenses 23.4 25.6 (8.7%) 27.2 (14.0%) 76.3 80.3 (4.9%) Property management fee 107.4 122.8 (12.5%) 114.0 (5.8%) 344.9 384.4 (10.3%) Interest expense 126.8 104.5 21.4% 122.4 3.6% 377.9 280.1 34.9% Other management fees and expenses 45.0 45.2 (0.5%) 44.1 2.0% 132.7 130.1 2.0% Total expense 337.0 334.0 0.9% 340.3 (1.0%) 1,029.9 978.6 5.2% Net investment income 948.2 919.9 3.1% 935.3 1.4% 2,843.7 2,691.2 5.7% Net realised gain (loss) from changes in 7.4 (1.3) (515.0%) (8.2) 625.9% (0.8) (3.3) 256.5% investment value Net unrealised gain (loss) from changes in (52.3) (24.9) (110.4%) (14.6) 1,717.2% (93.8) 291.7 132.2% investment value Net increase in net assets from operations 903.3 893.7 1.1% 912.5 (1.0%) 2,749.0 2,979.6 (7.7%) 898.3 919.7 (2.3%) 897.2 0.1% 2,692.6 2,656.5 1.4% Distribution Distribution per unit (in Baht) 0.4060 0.4157 (2.3%) 0.4055 0.1% 1.2170 1.2007 1.4% Net property income margin 87.1% 85.3% 1.8% 86.4% 0.7% 86.6% 84.5% 2.1% Net investment income margin 74.0% 73.4% 0.6% 73.4% 0.6% 73.5% 73.4% 0.1% Prepared by Investor Relations, CPN REIT Management Co., Ltd. Key Financial Highlights Page 12