Frasers Property Thailand Industrial Freehold & Leasehold REIT - PowerPoint PPT Presentation

Frasers Property Thailand Industrial Freehold & Leasehold REIT 1QFY19 Results Presentation 14 February 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 ▪ Investment and divestment Asset Performance and Capital Management ▪ ▪ REIT Strategy 3

Highlight and Financial Review

1QFY19 Highlights ❖ Asset Performance • Occupancy rate improve to 84% 84% • Weighted average lease expiry at around 2.09 years /1 • Retention rate 76% /2 Occupancy Rate • Net add of around 130,000 SQ.M /3 ❖ Portfolio value increased to THB 35.7 billion Completed • Completed THB 1.9 billion of assets acquisition from the Sponsor. THB 1.9 bn • On-going assets enhancement initiative. Asset Acquisition • Divested one factory in Amata City Chonburi and one warehouse in Rojana Industrial Park Prachinburi at 1Q19 premium to investment cost. ❖ Capital Management • Issued THB 1.9 billion Debentures and drawdown 23.6% bridge loan for assets acquisition. • Healthy balance sheet with gearing of 23.61% /4 and Aggregate Leverage 84% /5 of borrowings at fixed rate • Cost of borrowing is around 3.19% WAM 4.15Yrs 5 1. By GRI 3. New lease – terminate 5. Fixed = Debentures, Float = Short term loan 2. In period 1QFY19 4. Gearing ratio = IBD/TAV as of 31 Dec 2018

Strong Financial Performance 1 October 2018 – 31 December 2018 Overall performance 1QFY19 (Oct – Dec’18) is better than 4QFY17 (Oct – Dec’17) [Oct – Dec’17] [Oct – Dec’18] Rationale Change Compare 4QFY17 1QFY19 with Dec’17 Dec’18 THB million/% THB million THB million ▪ Occupancy improve from 78%>84.% ▪ Additional leased area came from assets TOTAL 191 677 YoY : +486/254% acquisition from sponsor in period. Revenue ▪ Change policy to collect property tax(start FY18) [Oct – Dec’18] [Oct – Dec’17] Change Compare Rationale 4QFY17 1QFY19 with THB million/% THB million THB million 18 92 ▪ Mainly from additional assets from PFPO and OPEX YoY : +74/411% investment in FY18 – 1QFY19 Total 32 92 YoY : +60/188% ▪ Mainly from additional assets from PFPO and Fee investment in FY18 – 1QFY19 Dec’17 Dec’18 Finance 20 57 ▪ Increased in IBD THB5.5bn>THB 8.8bn. YoY : +37/185% Cost ▪ Increased in COD 2.87 > 3.19% /1 Change [Oct – Dec’17] Compare [Oct – Dec’18] Rationale 1QFY19 4QFY17 with THB million/% THB million THB million Net Investment 118 422 ▪ Net investment income increased from additional YoY : +304/258% Income assets. 1. WAM 1.71Yrs(Dec’17)>4.15yrs(Dec’18) 6

Healthy Balance sheet as of 31 December 2018 With total asset around THB 37 billion, FTREIT still the largest industrial and logistics REIT in Thailand. 30 Sep 18 31 Dec 18 Change Compare Rationale with THB million/% THB million THB million ▪ Acquired THB 1.9 billion assets from sponsor /1 . TOTAL 35,433 37,437 +2,004/6% ▪ Unrealized gain from new assets /2 . ASSETS ▪ Divested 1 FAC and 1WH Change 30 Sep 18 31 Dec 18 Compare Rationale with THB million/% THB million THB million Interest Bearing 6,933 8,840 +1,907/28% ▪ COD = 3.19%, WAM = 4.15 Yrs Debt ▪ Fixed/Float : 84%:16% Change 30 Sep 18 31 Dec 18 Compare Rationale with THB Per Unit/% THB Per Unit THB Per Unit NAV 10.5141 10.5403 +0.0262/0.2% ▪ Increased from operation in period. Per Unit ▪ Increased from asset acquisition and cash in - 0.30/-2.5% ▪ MK Price 11.80 11.50 period. ▪ Premium 12.23% 9.11% -3.12% 1. Investment value THB 1,907 million 7 2. Additional unrealized gain from conversion assets.

Distribution 1QFY19 • The higher DPU at THB 0.1670 per unit by 4.4% as compared to THB 0.1600 per unit for 3QFY2018 due to better overall performance and additional income from new assets acquisition. Unit : THB per Unit 0.1670 0.1600 0.1600 0.1600 / 1 1QFY2018 2QFY2018 3QFY2018 1QFY2019 Note : 1. Distribution = Dividend + Capital Reduction 8

Investment & Divestment

Acquisition of assets from FPT (2 nd Batches) • In 1QFY2019, FTREIT has acquired assets /1 from FPT /5 (Sponsor). • Total investment value is THB1,907 million /3 and Net leasable area (NLA) for new assets = 72,775 SQ.M (33 Units). • Assets are located in 5 provinces (Chonburi, Samutprakarn, Ayutthaya, Pathumthani and Prachinburi), 8 locations which are strategic locations for logistic hubs in Thailand. Investment Highlight and asset performance as of 30 September 2018 THB 5 Provinces 72,775 100% 14 1,907 8 Locations SQ.M. Million Kuehne+Nage W1 OCR% /2 Located in Total Inv Value NLA /1 Quality tenants MPM Technology Tenants S1.5 S1.5 Automotive Electronics Logistics Others M2.5/1 Seat Metal Parts 3.Total asset value THB 1,907 million (including conversion assets) 1. Not including conversion LH to FH at AMC (Chonburi) 28,100 Sq.m (10 Units). 4.As of Dec’18 (with guarantee)= OCR 100% 2. Without guarantee OCR = 92%, 10 5.Frasers Property (Thailand) PCL.