Frasers Property Industrial REIT Management (Thailand) Co.,Ltd 2QFY19 Results Presentation 14 May 2019
Important notice This presentation is for information purposes only and does not constitute or form part of an offer, solicitation, recommendation or invitation for the sale or purchase or subscription of securities, including units in Frasers Property Thailand Industrial Freehold & Leasehold REIT (“ FTREIT ”, and the units in FTREIT, the “ Units ”) or any other securities of FTREIT. No part of it nor the fact of its presentation shall form the basis of or be relied upon connection with any investment decision, contract or commitment whatsoever. The past performance of FTREIT and Frasers Property Industrial REIT Management (Thailand) Company Limited, as the REIT manger of FTREIT (the “ Manager ”), is not necessarily indicative of the future performance of FTREIT and the Manager. This presentation may contains “forward -looking statements”, including forward-looking financial information, that involve assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance, outcomes or achievements of FTREIT or the Manger, or industry results, to be materially different from those expressed in such forward-looking statements and financial information. Such forward-looking statements and financial information are based on certain assumptions and expectations of future events regarding FTREIT’s present and future business strategies and the environment in which FTREIT will operate. The Manager does not guarantee that these assumptions and expectations are accurate or will be realized. The Manager does not assume any responsibilities to amend, modify or revise any forward-looking statement, on the basis of any subsequent developments, information or events, or otherwise, subject to compliance with all applicable laws and regulations and/or the rules of the Securities and Exchange Commission, Thailand (“ SEC ”) and the Stock Exchange of Thailand (“ SET ”) and/or any other regulatory or supervisory body or agency The information and opinions in this presentation are subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning FTREIT. None of FPT, FTREIT, the Manager, or any of their respective holding companies, subsidiaries, affiliates, associated undertaking or controlling persons, or any of their respective directors, officers, partners, employees, agents, representatives, advisers or legal advisers makes any representation or warranty, express or implied, as to the accuracy, completeness or correctness of the information contained in this presentation or otherwise made available or as to the reasonableness of any assumption contained herein or therein, and any liability whatsoever (in negligence or otherwise) for any loss howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in connection with this presentation is expressly disclaimed. Further, nothing in this presentation should be construed as constitution legal, business, tax or financial advice. The value of Units and the income derived from them, if any, may fall or rise. Unit are not obligations of deposits of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in the Units is subject to investment risks, including the possible loss of the principal amount invested. Investors should note that they have no right to request the Manager to redeem their Units are listed. It is intended that holders of Units may only deal in their Units through trading on SET. Listing of the Units on the SET does not guarantee a liquid market for the Units. Please study relevant information carefully before making any investment decision. Investors are encouraged to make an investment only when such decision correspond with their own objective and only after they have acknowledged all risks and have been informed that the returns may be more or less than initial sum. 2
Content ▪ Highlight and financial review ▪ Completion of AEI in period ▪ Asset Performance and Capital Management ▪ REIT Strategy 3
Highlight and Financial Review
2QFY19 Highlights ❖ Asset Performance and AEI • High Occupancy rate at 82.9% 82.9% • Weighted average lease expiry at around 2.06 years /1 • Retention rate 78.3% /2 and Reversion rate 1.05% /2 Occupancy Rate • Completion of AEI /3 1,700 sqm of factory at Amata City Rayong ❖ Financial Performance • Higher net investment income of THB 463 Million for THB 0.1670 2QFY19, up 10% from THB 420 Million a year ago DPU ❖ Distribution for period 2QFY19 from 2QFY19 performance • DPU THB 0.1670 per unit for 2QFY2019 ❖ Capital Management • Repayment short-term loan THB 300 Million 22.94% • Healthy balance sheet with gearing of 22.94% /4 and 87% /5 of borrowings were at fixed rate Aggregate Leverage • Cost of borrowing is around 3.25% WAM 4.03Yrs 1. By GRI 4. Gearing ratio = IBD/TAV as of 31 March 2019 2. In period 2QFY19 5. Fixed = Debentures, Float = Short term loan. 5 3. AEI = Asset Enhancement Initiative.
Financial Performance 2QFY19: 1 January 2019 – 31 March 2019 Overall performance 2QFY19 is better than 1QFY18 (Jan – Mar’18) /3 Jan - Mar’18 Jan - Mar’19 Change Rationale 1QFY18 2QFY19 Compare THB million/% THB million THB million with ▪ Revenue increased mainly came from new assets TOTAL 640 718 YoY : +78/+12% value THB 3.6 bn which been transferred from Revenue Sponsor on Aug’ 18 and Dec’ 18. Jan - Mar’18 Jan - Mar’19 Change Compare Rationale 1QFY18 2QFY19 with THB million/% THB million THB million 86 92 OPEX YoY : ▪ +6/+7% OPEX increased from additional assets.. Total 88 87 YoY : -1/-1% ▪ Total fee slightly decreased from operation in period. Fee Mar’18 Mar’19 Finance 40 70 ▪ Increased in IBD THB5.5bn > THB 8.5bn. YoY : +30/+75% Cost ▪ Increased in COD /2 2.87% > 3.25% /1 Jan - Mar’18 Jan - Mar’19 Change Compare Rationale 1QFY18 2QFY19 with THB million/% THB million THB million Net Investment 420 463 ▪ YoY : Net investment income increased from additional +43/+10% Income assets. WAM 1.46 Yrs (Mar’18) , 4.03yrs(Mar’19) 1. 2. COD = Cost of debt 6 3. FY2018 start from 1 January 2018 to 30 September 2018. FY2019 start from 1 October 2018 to 30 September 2019.
Financial Performance HYFY19: 1 October 2018 – 31 March 2019 Overall performance for period (Oct’18 – Mar’19) is better than period (Oct’17 – Mar’18) /2 Oct’17 – Mar’18 Oct’18 – Mar’19 Rationale Compare Change with THB million THB million THB million/% ▪ TOTAL Mainly from additional assets from PFPO and 831 1,395 YoY : +564/+68% investment in FY18 – 1QFY19 Revenue ▪ Change policy to collect property tax (start FY18) Oct’17 – Mar’18 Oct’18 – Mar’19 Change Compare Rationale with THB million THB million THB million/% 103 185 ▪ Mainly from additional assets from PFPO and OPEX YoY : +82/+80% investment in FY18 – 1QFY19 Total 120 179 ▪ YoY : Mainly from additional assets from PFPO and +59/+49% Fee investment in FY18 – 1QFY19 Mar’18 Mar’19 Finance 59 127 ▪ Increased in IBD THB5.5bn > THB 8.5bn. YoY : +68/+115% Cost ▪ Increased in COD 2.87% > 3.25% /1 Oct’17 – Mar’18 Oct’18 – Mar’19 Change Compare Rationale with THB million THB million THB million/% Net Investment 538 885 ▪ YoY : +347/64% Net investment income increased from additional Income assets. WAM 1.46 Yrs (Mar’18) , 4.03yrs(Mar’19) 1. 7 2. PFPO conversion to FTREIT completed on 20 December 2017
Healthy Balance sheet as of 31 March 2019 With total asset around THB 37 billion, FTREIT still the largest industrial and logistics REIT in Thailand. Change 30 Sep 18 31 Mar 19 Compare Rationale with THB million/% ▪ THB million THB million Acquired assets from sponsor and value increased from AEI /1 . ▪ Unrealized gain from new assets /2 . TOTAL 35,433 37,231 ▪ +1,798/+5% Divested 1 FAC and 1WH /3 ASSETS ▪ Tenants paid property tax which accrued to FTREIT 30 Sep 18 31 Mar 19 Change Compare Rationale with THB million/% THB million THB million Interest ▪ Leveraged for asset acquisition ▪ Repaid ST-Loan 300MB Bearing 6,933 8,540 +1,607/+23% ▪ COD = 3.25%, WAM = 4.03 Yrs Debt ▪ Fixed/Float : 87%:13% Change 30 Sep 18 31 Mar 19 Compare Rationale with THB per Unit THB Per Unit THB Per Unit/% NAV ▪ Increased from cash and receivables that 10.5141 10.5643 +0.0502/+0.5% Per Unit came from operation in period. ▪ Increased in investment property value ▪ MK Price 11.80 13.70 + 1.9/+16% which came from investment and AEI ▪ Premium 12.23% 29.68% +17.45% 1. New assets + AEI = THB 1,947 Million. 2. Additional unrealized gain from new assets. 3. Divested 1 factory and 1 warehouse, gain from divested THB 52 million. 8
Distribution 2QFY19 • The higher DPU in 1QFY19 and 2QFY19 at THB 0.1670 per unit by 4.4% as compared to THB 0.1600 per unit for FY2018 due to better overall performance and additional income from new assets acquisition. Unit : THB per Unit 0.1670 0.1670 0.1600 0.1600 0.1600 / 1 1QFY2018 2QFY2018 3QFY2018 1QFY2019 2QFY2019 Note : 1. Distribution = Dividend + Capital Reduction 9
Completion of AEI in period 2QFY19
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