TICON Freehold and Leasehold Real Estate Investment Trust Annual - PowerPoint PPT Presentation

TICON Freehold and Leasehold Real Estate Investment Trust Annual General Meeting 2019 28 January 2019

Year in Review Key Highlights Distributable • 9MFY2018 Distributable Income ( “ DI ” ) of THB 1,249.14 million. • 9MFY2018 Distribution Per Unit ( “ DPU ” ) of THB 0.4800 per unit. Income • 516 units of Properties under management (Factory = 299 units, Warehouse = 217 units). Assets Under • Properties Value THB 33,987 mm. Management • TREIT is the largest industrial and logistic REIT in Thailand. • Assets As of 30 September 2018: Occupancy rate at 79.2% and WALE of 2.21 Years. • Net add (including new assets acquired in the period) is 69,331 SQ.M. Performance • Acquisition factories and warehouses of 27 units with Net Leasable area of 85,106 SQ.M. Acquisition & • Completed divestment of 1 factory unit which located at Pinthong Industrial Estate. • Divestment On Progress of Asset Enhancement Initiative project (AEI) for expansion factory lease area 1,700 SQ.M. Expected Investment Value of THB 28 mm (Currently invested THB 3 mm). • Gearing /1 of 19.57%. Capital • Cost of borrowing as of 30 September 2018 is 3.13% p.a. Management • 80% of borrowing at fixed interest rates /3 . 1.Gearing ratio = total Interest bearing debt (as of 30 Sep 2018) / total asset value (as of 30 Sep 2018). 3. IBD (ST-Loan) have step-up interest rate. 1 2.TICON 2 nd batch of assets value THB 1,907 Million was transferred to TREIT on 19 December 2018

Year in Review Key Results (1/2) Overall performance FY2019 growth came from asset acquisition and operation in period 9M ’ 17 9M ’ 18 Increased TOTAL +1,550/+384% 404 1,954 Revenue THB million % THB million THB million 9M ’ 17 9M ’ 18 Increased Net Property +1,263/+349% 362 1,625 Income % THB million THB million THB million 9M ’ 17 9M ’ 18 Increased Distributable +953/+322% Income to 296 1,249 unitholders THB million % THB million THB million Increased FY2017 FY2018 Distribution +0.0018 /+1.14% 0.1582 0.1600 Per Unit/ Quarter % THB Per Unit THB Per Unit/Quarter THB Per Unit/Quarter 2

Year in Review Key Results (2/2) With total asset value around THB 35,000, TREIT still largest industrial REIT in Thailand /1 Dec ’ 17 Sep ’ 18 Increased TOTAL +3,472/+11% 31,961 35,433 ASSETS THB million THB million % THB million Dec ’ 17 Sep ’ 18 Increased Interest Bearing +1,393/+25% 5,540 6,933 DEBT THB million THB million % THB million Dec ’ 17 Sep ’ 18 Increased NAV 9.7864 10.5141 +0.7277/+7.44% Per Unit % THB Per Unit THB Per Unit THB Per Unit 3 1.As of 30 Sep 2018

Investment and Divestment

ทางอุตสาหกรรมและโลจิสติคส์ของประเทศไทย Acquisition of assets from TICON • 9 months FY2018, TREIT has acquired assets /1 from TICON group (Sponsor).Total investment value is THB 1,693 million and Net leasable area (NLA) = 79,106 SQ.M. • Assets are located in 2 provinces (Chonburi and Samutprakarn), 3 locations which are strategic locations for logistic hubs in Thailand. Investment Highlight and asset performance as of 30 September 2018 THB 2 Provinces 79,106 1,693 100% 10 3 Locations SQ.M. Million OCR% /2 NLA /3 Located in Total Inv Value Quality tenants 1.Assets means new assets and conversion assets. 3.Not including conversion LH to FH at AMC (Chonburi) 35,250 Sq.m. 4 2. Without guarantee OCR = 81%, WALE 1.38 years

ทางอุตสาหกรรมและโลจิสติคส์ของประเทศไทย 1 st Acquisition of assets from Third-Party TREIT has acquired assets from Third party (Star Micronics Precision (Thailand) Co.,Ltd. (1 st time • third party asset investment ) Total investment value is THB 90 million which are 2 unit of factory and Net leasable area (NLA) = 6,000 SQ.M. • Sales and leaseback investment which guarantee 10 years of lease agreement and high rental rate. This investment generate high return to trust. Investment Highlight and asset performance as of 30 September 2018 THB 90 1 st investment 100% 10Y 90 in 3 rd part SQ.M. Million assets Total Inv Value NLA OCR% WALE 5 1.Star Micronics Precision (Thailand ) Co., Ltd is electronics applicant producer – printer and visual card reader

Divestment of factory at Pinthong (Chonburi) • Completed divestment 1 unit of factory at Pinthong Industrial Estate, Chonburi province to an unrelated third party for THB 55 million on 28 May 2018. • Sales price was above around 17% of initial purchase price /1 • Net gain from divestment of THB 8.3 million /2 over book value • Asset had been vacant around 0.5 Years and property ages is around 13 years (on the date of divest) • Divestment proceeds used to fund assets acquisition from TICON group Reduce THB 8.3 Million Expenses from or THB 55 million holding 17% from book of unoccupied value assets Sales Consideration Gain from Divestment 1.Asset was transferred from TFUND since conversion PFPOs into TREIT, purchased value is THB 46.7 million 6 2.Excluding acquisition expense. 3. Thai Sankyo (Buyer) is motorcycle part producer.

Asset Enhancement Initiative in FY2018 Progress as of 30 Sep 2018 • Asset Enhancement Initiative (AEI) increases NLA of assets and/or building improvement which lead to extend useful life and/or increased building efficiency. • Board of REIT Manager has approved for the expansion area 1,700 SQ.M of factory at Amata City Rayong /1 . • This investment shall increase rental income generated from the expansion and guarantee long WALE of expansion area. Expected completion end of Jan ’ 18 Progress as of 31 Dec 2018 Criteria to do AEI Boost Utilized Long Revenue of Area of WALE /2 assets /2 Assets /2 +DPU to Unitholders 1.Current size of building is around 14,250 SQ.M 2.Start rent extension area on 1 Feb 2019, NLA increased to 15,950 SQ.M), WALE 7 Years 7

Summary Investment Properties Growth in FY2018 Total Investment Property Value over THB 33,000 million with net growth by THB 3.53 bn in FY2018 FY2018 Unit : THB million TREIT Assets 1 st Third Party Asset Unrealized gains + 3,537(12%) Sponsor Assets acquisition on revaluation In period 3 rd Party Assets acquisition In period Invest Star AEI Project Divestment in period Micronics +1,798 TICON 1 st AEI in Period Batch /1 Unrealized gain on Revaluation 2 30 Sep 18 30 Sep 18 +90 Under development Divest Factory (Expected total Unit M1.6/2 at Project Value 27 Sep 18 THB 28 million) Pinthong 33,987 +1,693 516 Units PFPO Conversion to TREIT + Revalue Assets (47) 516 Units 28 May 18 30 Aug 18 +23,149 30,451 490 Units 7,302 98 Units Dec ’ 17 Sep ’ 17 Sep ’ 18 THB 7.30 bn THB 30.5 bn THB 33.9 bn (USD 0.22 bn) (USD 0.92 bn) (USD 1.03 bn) Note : Exchange rate 1 USD = THB 33 8 1.TICON Batch 2 of assets value 1,907 MB was transferred to TREIT on 19 December 2018

Portfolio snapshot as of Sep’18 TREIT is the largest industrial REIT in Thailand, with high quality assets in prime location Total Investment No of Remaining Occupancy Rate LH/FH/ 2 NLA WALE (As of Sep’18) Property Value Property LH year THB 33,987 mm 1.57 Million 2.21 26 Years /3 516 30%/70% 79.2% (USD 1,030 mm) /1 SQ.M Years Factory THB 17,964 mm Asset Value Occupancy Rate 79.1% (USD 544 mm) No of Property 299 Units WALE 2.00 Years NLA 750,485 SQ.M No of Tenant 177 110,500 / 639,985 LH / FH SQ.M. Picture is reference from TICON Warehouse THB 16,024 mm Asset Value Occupancy Rate 79.2% (USD 486 mm) No of Property 217 Units WALE 2.45 Years NLA 818,231 SQ.M No of Tenant 80 360,254 / 457,977 LH / FH SQ.M. Picture is reference from TPARK Note : 1. Exchange rate USD 1 = THB 33 9 2. Total area of LH and FH are 470,754 SQ.M (30%) and 1,097,962 SQ.M (70%), respectively. 3. Remaining LH is 25.95 years weighted by net leasable area

Enlarged and Diversified TREIT Portfolio Increased Proportion of Freehold Assets Dec 2017 Sep 2018 Northern BKK /1 Eastern BKK /1 EEC /1 Sep’18 Dec’17 490 Units 516 Units Leasehold Leasehold 30% 31% Rojana Ayutthaya FAC 54 units WH 3 units 1,484,660 1,568,716 HITECH SQ.M SQ.M Wangnoi 1 and 2 FAC 36 units WH 17 units 69% 70% Bangpa-In FAC 13 units Navanakorn FAC 17 units Rojana Prachinburi Freehold Freehold WH 1units Enhanced Geographical Diversification Eastern Eastern Bangplee3 Bangplee1 BKK WH 28 units WH 10 units BKK 12% 15% Bangpoo FAC 11 units Dec ’ 17 Sep’18 Amata City Chonburi 26% FAC 94 units WH 7 units 25% 60% 62% Northern Bangna EEC Phan Thong WH 81 units BKK Northern WH 5 units BKK EEC ES2(A) Hemaraj Chonburi WH 4 units FAC 3 units WH 9 units Proportion of Factory and Warehouse Pinthong Phase 1 - 3 Sriracha FAC 41 units WH 5 units Factory Factory Laem Chabang 1 and 2 ES1(A)&(B) WH 36 units WH 11 units Amata City Rayong 48% Dec’17 Sep ’ 18 FAC 30 units 50% 50% 52% Warehouse Warehouse 10 1. .Northern Bangkok area = Ayutthaya and Pathumthani, Eastern Bangkok = Samutprakarn and Prachinburi, EEC area = Chonburi, Rayong and Chachoengsao

Asset Performance Capital Management