CPN Retail Growth Leasehold REIT Investor Presentation March 2020 - PowerPoint PPT Presentation

CPN Retail Growth Leasehold REIT Investor Presentation March 2020

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 Acquisition of New Assets Business Updates Key Financial Highlights Prepared by Investor Relations, CPN REIT Management Co., Ltd. Agenda Page 3

CPNREIT Overview Prepared by Investor Relations, CPN REIT Management Co., Ltd. Agenda Page 4

Establishment and investment track record A robust and diversified portfolio of high-quality assets 2020 5 Hotel 1 2 3 rd Follow-on Offering Shopping Centers Office Buildings 2017 Conversion of Acquisition of CPNRF to CentralPlaza Pinklao CPNREIT (2) Acquisition of 6 potential Acquisition of CentralMarina CentralPlaza Rama 2 CentralPlaza Lampang Acquisition of CentralPlaza Rama 3 CentralPlaza Suratthani 2009 CentralPlaza CentralPlaza Chiangmai Airport Ubonratchathani Acquisition of 1 st Follow-on The Ninth Tower Office CentralFestival Offering 2005 Unilver House Office Pattaya Beach CentralPlaza Rama 2 Hilton Pattaya (Renewal Period) Initial Public Offering of CPNRF (1) 2014 2 nd Follow-on Offering 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) 27,656 NLA (sqm) 34,3 07 Lease end Apr-2044 Occ. rate 99% Occ. rate 90% NLA (sqm) 37,806 Occ. rate 97% CentralPlaza Rama 2 Chiangmai Year acq. 2005 Lease end Aug-2025 Thailand NLA (sqm) 82,930 CentralFestival Pattaya Beach Occ. rate 95% 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 Year acq. 2005 Rooms 302 Lease end (1) Aug-2095 Occ. rate 89% NLA (sqm) 36,495 Occ. rate 97% Note: Asset information as 31 Dec 2019 (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 96 % 248 ~maintain High occupancy levels across YoY all properties Note: Asset information as of 31 December 2019 Growing TAV from higher property value Healthy revenue generated from operations and acquisition ~11% Unit: THB / unit Unit: THB bn ~10% 6Y CAGR 6Y CAGR 5.14 4.93 21.27 21.18 21.10 15.19 14.82 3.53 3.53 14.01 3.31 3.14 12.09 2.71 2013 2013 2014 2014 2015 2016 2017 2018 2019 2018 2015 2016 2017 2013 2014 2015 2013 2014 2015 2016 2016 2017 2017 2018 2018 2019 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 46,687 47,056 50000 Conversion to 45000 CPNREIT 40000 CPNRF Rights 33,604 32,784 Offering 30,991 35000 REIT Gearing 30000 Limit (IG) 29,993 29,995 29,701 29,462 29,242 60% of TAV 27,690 25000 19,780 20000 17,827 31% of TAV 31% of TAV 15000 10000 Property Fund Gearing Limit 5000 7% 7% 6% of NAV 2% of NAV of NAV of NAV 0.10x of NAV 0 2019 2016 2018 2015 2017 2014 2013 2Y Tenure 19% Debt Profile CPNREIT 100% 3.3% 14,524 51% avg. cost THB mn 18% of bonds 3Y Tenure 10Y Tenure 12% 4Y Tenure Corporate Debentures Note: Debt profile as of 31 December 2019. (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

Debentures CPNREIT issued 4 tranches of debentures since August 2018. The objective of • issuance of debentures was for bank loans repayment, details are as follows; Amount Tenor Coupon Bond Issue Date Maturity Date (MB) (Year) (%) CPNREIT218A 2,650 17-Aug-18 17 - Aug-21 3 2.70 CPNREIT288A 7,390 17-Aug-18 17 - Aug-28 10 3.80 CPNREIT212A 2,700 8-Feb-19 8-Feb-21 2 2.54 CPNREIT232A 1,795 8-Feb-19 8-Feb-23 4 3.30 Total 14,535 3.30 CPNREIT won the award “ Deal of the Year ” from The Best Bond • Award 2018 organized by ThaiBMA on 21 February 2019, from the issuance of bond in 2018. On 25 June 2019, TRIS Rating affirmed the company rating • on CPNREIT and the rating on CPNREIT’s senior unsecured debentures at “ AA ” with “ Stable ” outlook Prepared by Investor Relations, CPN REIT Management Co., Ltd. CPNREIT Overview Page 9

Consistently high distribution yields Distribution per Unit and Yield 1Q 2Q 3Q 4Q Sector Ave. THB/unit 1.80 8% 1.6230 1.6170 1.2283 1.60 6.6% 7% 1.1528 6.7% 1.3260 1.40 1.0081 6.3% 1.1371 (1) 5.9% 6% 5.8% CPNRF/CPNREIT 1.20 5.6% Distribution Yield (3) 5.1% 1.00 5% 4.8% Sector Average (2) 4.7% 4.5% 0.80 4.1% 4.1% 4% 3.8% 3.9% 0.60 3% 0.40 2% 0.20 0.00 1% 2014 2016 2017 2018 2013 2015 2013 2014 2015 2016 2017 2018 2019 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. (3) Market price at THB 32.75 per unit; as of 27 December 2019 Prepared by Investor Relations, CPN REIT Management Co., Ltd. CPNREIT Overview Page 10

Acquisition of New Assets Remarks: The disclosed information in this section is based on the effective filing approved by the SEC on 26 February 2020, and the Pro-forma Financial Statements for the period of 1 April 2020 – 31 March 2021, based on the assumed offering price at 35 baht/unit. Prepared by Investor Relations, CPN REIT Management Co., Ltd. Agenda Page 11