Financial Statements and Related Announcement::First Quarter Results - PDF document

Financial Statements and Related Announcement::First Quarter Results Page 1 of 1 Financial Statements and Related Announcement::First Quarter Results Issuer & Securities Issuer/ Manager SPH REIT MANAGEMENT PTE. LTD. Securities SPH REIT - SG2G02994595 - SK6U Stapled Security No Announcement Details Announcement Title Financial Statements and Related Announcement Date & Time of Broadcast 05-Jan-2016 18:43:12 Status New Announcement Sub Title First Quarter Results Announcement Reference SG160105OTHRAZIK Submitted By (Co./ Ind. Name) Lim Wai Pun Designation Company Secretary Description (Please provide a detailed The Announcement, Press Release and Results Presentation are description of the event in the box below - attached. Refer to the Online help for the format) Additional Details For Financial Period Ended 30/11/2015 Attachments SPH REIT - SGX Announcement Q1FY16.pdf SPH REIT - Press Release Q1FY16.pdf SPH REIT - Results Presentation Slides Q1FY2016.pdf Total size =5897K 0 Like 0 Tweet http://infopub.sgx.com/Apps?A=COW_CorpAnnouncement_Content&B=Announce... 05/01/2016

SPH REIT FINANCIAL STATEMENT ANNOUNCEMENT * FOR THE FIRST QUARTER ENDED 30 NOVEMBER 2015 Constituted in the Republic of Singapore pursuant to a Trust Deed dated 9 July 2013. Introduction The investment strategy of SPH REIT is to invest, directly or indirectly, in a portfolio of income- producing real estate which is used primarily for retail purposes in Asia Pacific, as well as real estate- related assets. The portfolio of SPH REIT comprises the following two high quality and well located commercial properties in Singapore:  Paragon, a premier upscale retail mall and medical suite/office property, well known for its upscale mall housing many luxury brands, located in the heart of Orchard Road; and  The Clementi Mall, a mid-market suburban mall located in the centre of Clementi town, an established residential estate in the west of Singapore. Review by auditors The financial information as set out in this announcement for the first quarter ended 30 November 2015 has been extracted from the interim financial information for the first quarter ended 30 November 2015, which has been reviewed by our auditors, KPMG LLP*, in accordance with the Singapore Standard on Review Engagement 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. * Please refer to the attached review report.

For The First Quarter ended 30 November 2015 TABLE OF CONTENTS Item No. Description Page No. 1 Statement of Total Return and Distribution Statement 3 - 4 Balance Sheet 5 Borrowing 6 Statement of Cash Flows 7 Statement of Changes in Unitholders’ Funds 8 Details of Changes in Issued and Issuable Units 8 - 9 2 & 3 Audit Statement 9 4 & 5 Changes in Accounting Policies 9 Earnings (“EPU”) and Distribution (“DPU”) 6 10 Net Asset Value (“NAV”) 7 10 8 Review of Performance 11 9 Variance from Prospect Statement 12 10 Outlook and Prospects 12 11 - 12 Distribution 13 - 14 13 Segment Results 15 14 General mandate relating to Interested Person Transactions 15 15 Confirmation Pursuant to Rule 705(5) of the Listing Manual 16 2

For The First Quarter ended 30 November 2015 1(a) An income statement together with a comparative statement for the corresponding period of the immediately preceding financial year 1(a)(i) Statement of Total Return 1Q 1Q Change 2016 2015 S$'000 S$'000 % Gross revenue 52,095 50,635 2.9 Property operating expenses (11,991) (12,762) (6.0) Net property income 40,104 37,873 5.9 Income support 1 745 868 (14.2) Amortisation of intangible asset (745) (868) (14.2) Manager's management fees (4,059) (3,930) 3.3 Trust expenses 2 (470) (469) 0.2 Finance income 3 241 92 162.0 Finance costs (5,987) (4,965) 20.6 Total return before taxes and 29,829 28,601 4.3 distribution Less: income tax - - NM Total return after taxes and before 29,829 28,601 4.3 distribution Notes: 1. Income support relates to the top-up payment from the vendors of The Clementi Mall pursuant to the Deed of Income Support. Includes recurring trust expenses such as trustee’s fees, listing fees, valuation fees, audit and tax adviser’s 2. fees, cost associated with the preparation of annual reports, and investor communication costs. 3. Finance income represent the interest income from bank deposits. NM Not Meaningful 3

For The First Quarter ended 30 November 2015 1(a)(ii) Distribution Statement 1Q 1Q Change 2016 2015 S$'000 S$'000 % Total return before taxes and 29,829 28,601 4.3 distribution Add: Non-tax deductible items 1 5,479 5,430 0.9 Income available for distribution 35,308 34,031 3.8 Distribution to Unitholders 2 33,696 33,489 0.6 Notes: Non-tax deductible items refer to the M anager’s management fees paid /payable in units, trustee ’s fees, 1. amortisation of income support and amortisation of debt issuance costs. For 1Q 2016, the distribution to unitholders was 95.4% of taxable income available for distribution. 2. 4

For The First Quarter ended 30 November 2015 1(b)(i) A balance sheet together with a comparative statement as at the end of the immediately preceding financial year Balance Sheet As at As at 30 Nov 15 31 Aug 15 S$'000 S$'000 Non-current assets Plant and equipment 1,022 1,044 Investment properties 1 3,214,592 3,212,500 Intangible asset 2 8,656 9,400 Derivative financial instruments 3 953 3,949 3,225,223 3,226,893 Current assets Trade and other receivables 5,440 5,008 Derivative financial instruments 3 220 365 Cash and cash equivalents 72,911 77,355 78,571 82,728 Total assets 3,303,794 3,309,621 Non-current liabilities Borrowing 595,887 595,565 Trade and other payables 38,077 36,685 633,964 632,250 Current liabilities Borrowing 249,517 249,330 Trade and other payables 4 26,914 30,231 276,431 279,561 Total liabilities 910,395 911,811 Net assets attributable to Unitholders 2,393,399 2,397,810 Notes: 1. The fair value of Paragon and The Clementi Mall as at 31 August 2015 was S$2,641.0 million and S$571.5 million respectively. The fair value of the investment properties were based on independent valuations conducted by DTZ Debenham Tie Leung (SEA) Pte Ltd (“DTZ”). 2. Intangible asset relates to income support provided by the vendors of The Clementi Mall. 3. Derivative financial instruments represent the fair value as at balance sheet date of the interest rate swap contracts to swap floating rates for fixed interest rates. Trade and other payables comprised mainly rental deposits, accrued interest and other payables. 4. 5

For The First Quarter ended 30 November 2015 1(b)(ii) Borrowing Secured borrowing As at 30 Nov 15 As at 31 Aug 15 S$’000 S$’000 Amount repayable within one year 249,517 249,330 Amount repayable after one year 595,887 595,565 Total 845,404 844,895 Details of collateral On 24 July 2013, SPH REIT established a term loan facility available for drawdown up to the amount of S$975 million. As at the balance sheet date, the amount drawn down was S$850 million. The amount of S$845.4 million represented the loan stated at amortised cost. The loan has repayment terms ranging from three to seven years, of which S$250 million is repayable on 25 July 2016, S$135 million on 26 March 2018, S$185 million on 24 July 2018 and S$280 million on 24 July 2020. Management is currently reviewing the refinancing options for the S$250 million tranche. The term loan is secured by way of a first legal mortgage on Paragon, first legal charge over the tenancy account and sales proceeds account for Paragon, and an assignment of certain insurances taken in relation to Paragon. 6

For The First Quarter ended 30 November 2015 1(c) A cash flow statement together with a comparative statement for the corresponding period of the immediately preceding financial year Statement of Cash Flows 1Q 1Q 2016 2015 S$'000 S$'000 Cash flows from operating activities Total return for the quarter 29,829 28,601 Adjustments for: Manager's fee paid/payable in units 4,059 3,930 Depreciation of plant and equipment 47 34 Finance income (241) (92) Finance costs 5,987 4,965 Amortisation of intangible asset 745 868 Operating cash flow before working capital changes 40,426 38,306 Trade and other receivables (448) 554 Trade and other payables (2,189) (593) Net cash from operating activities 37,789 38,267 Cash flows from investing activities Additions to investment properties (1,302) (1,151) Purchase of plant and equipment (10) - Interest received 252 82 Net cash used in investing activities (1,060) (1,069) Cash flows from financing activities Distribution to unitholders (35,158) (34,948) Interest paid (6,015) (4,523) Net cash used in financing activities (41,173) (39,471) Net decrease in cash and cash equivalents (4,444) (2,273) Cash and cash equivalents at beginning of the 77,355 90,658 period Cash and cash equivalents at end of the period 72,911 88,385 7