CPN Retail Growth Leasehold REIT Investor Presentation Opportunity Day 28 February 2018
Importance Notice 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. 2
Content About CPNREIT Key Financial Highlights Operation Highlights Asset Enhancement Initiatives 3
ABOUT CPNREIT
CPNREIT History CPN Retail Growth Leasehold REIT is Thailand s largest retail-focused real estate investment trust listed on the Stock Exchange of Thailand. CPNREIT was established from the conversion of CPN Retail Growth Leasehold Property Fund which was set up and publicly traded on the SET since 2005. Upon conversion on 1 December 2017, CPNREIT acquired all CPNRF s quality portfolio, and invested in a new mix-used project consisting of CentralFestival Pattaya Beach shopping center and Hilton Pattaya. 2017 Conversion to CPNREIT Acquisition of CentralPlaza Rama 2 CentralPlaza Rama 3 2005 Initial Public Offering Acquisition of CentralPlaza Pinklao 2009 1 st Follow-on Offering Acquisition of CentralFestival Pattaya Beach Hilton Hotel 2014 2 nd Follow-on Offering Acquisition of CentralPlaza Chiangmai Airport 5
Trust Structure Investment in CPNREIT Distribution REIT Manager Management Services Represents Interest of Unitholders Trustee Management Fee Trustee Fee Property Manager Property Management Fee Invest in Assets Net Property Income Hotel Manager RAMA 2 RAMA 3 PINKLAO CHIANGMAI AIRPORT PATTAYA BEACH Subleases HILTON PATTAYA Rental Income CPN Pattaya Hotel Co., Ltd. 6
Summary of Asset Information Rama 2 Rama 3 Pinklao Chiangmai Airport Information as at 31 December 2017 Pattaya Beach Hilton Pattaya Location Bangkok Bangkok Bangkok Chiangmai Pattaya, Chonburi Pattaya, Chonburi Gross Floor Area incl. Parking (sqm) Leasable Area (sqm) Land Area (rai-ngan-sqw) 251,182 169,740 188,345 122,991 70,095 49,686 82,746 36,285 61,643 37,490 29,404 302 rooms 53-2-38.4 12-2-44.6 24-2-84 32-3-56.85 - - Land Tenure Leasehold tenure of 20 years ending 15 August 2025 Leasehold tenure of 30+30+30 years ending 15 August 2095 Leasehold tenure of approximately 15 years ending 31 December 2024 Leasehold tenure of 15 years ending 22 April 2044 - - Building & Utility Systems Leasehold tenure of 20 years ending 15 August 2025 Building Leasehold same tenure as land Utility Systems Ownership Leasehold tenure of approximately 15 years ending 31 December 2024 Leasehold tenure of 15 years ending 22 April 2044 Leasehold tenure of approximately 20 years ending 31 August 2037 Leasehold tenure of approximately 20 years ending 31 August 2037 Movable Assets Ownership Ownership Ownership Ownership Ownership Ownership Valuation As at 31 December 2017 (THB million) 7,186 9,179 5,543 10,494 8,154 3,754 7
KEY FINANCIAL HIGHLIGHTS
Key Financial Highlights Total Revenue THB 936.8 million 4Q 2017 FY 2017 THB3,525.9 million 2.8% YoY 12.4% QoQ Net Investment Income THB 662.4 million 8.3% YoY 0.1% YoY THB2,724.0 million 3.8% YoY 0.3% QoQ Distribution Per Unit THB 0.2879 THB 1.1371 1.7% YoY 1.4% YoY Same QoQ 9
Balance Sheet Unit: Million Baht CPNRF CPNREIT 31 Dec 16 31 Mar 17 30 Jun 17 30 Sep 17 31 Dec 17 Investments in properties at fair value 32,309.0 31,820.0 32,402.0 32,402.0 44,310.0 Rama 2 6,705.0 6,520.0 7,184.0 7,186.0 7,186.0 Rama 3 9,156.0 9,540.0 9,192.0 9,179.0 9,179.0 Pink lao 5,495.0 5,180.0 5,495.0 5,543.0 5,543.0 Chiangmai Airport 10,953.0 10,580.0 10,531.0 10,494.0 10,494.0 Pattaya Beach 0.0 0.0 0.0 0.0 8,153.8 Hilton Pattaya 0.0 0.0 0.0 0.0 3,754.2 Investment in securities at fair value 662.9 796.8 897.0 941.0 990.0 Cash on hand and at banks 464.6 339.7 236.5 273.4 1,052.4 Rental and service receivables 88.6 113.6 107.7 92.6 188.6 Accrued interest income 0.3 0.5 0.2 0.4 0.1 Other assets 78.4 39.7 54.3 63.1 514.5 Total assets 33,603.8 33,110.2 33,697.6 33,772.4 47,055.6 Account payable and accrued expenses 386.6 356.0 370.1 266.5 1,465.8 Deposits received from customers 1,138.0 1,130.9 1,142.4 1,184.3 1,424.1 Unearned lease and service income 48.3 80.9 73.2 73.0 51.5 Borrowing 1,874.6 1,852.9 1,831.3 1,917.8 14,453.7 Other liabilities 163.7 168.3 176.2 191.4 198.4 Total liabilities 3,611.2 3,588.9 3,593.2 3,632.9 17,593.4 Net assets 29,992.6 29,521.3 30,104.4 30,139.5 29,462.1 Capital received from unitholders 24,406.2 24,406.2 24,406.2 24,406.2 29,653.4 Equalisation account 0.0 0.0 0.0 0.0 216.1 Retained Earnings 5,586.4 5,115.1 5,698.2 5,733.3 (407.3) NAV per unit (in Baht) 13.5561 13.3431 13.6066 13.6225 13.3164 10
Profit and Loss Unit: Million Baht CPNREIT CPNRF FY2017 /1 CPNRF Chg CPNREIT CPNRF 4Q17 /2 3Q17 Chg CPNRF Chg 29 Nov 1 Jan FY2016 YoY 29 Nov 1 Oct QoQ 4Q16 YoY - 31 Dec - 4 Dec - 31 Dec - 4 Dec (1) (2) (1)+(2) (3) (4) (3)+(4) Investment income Rental and service income 369.5 3,040.7 3,410.1 3,425.2 (0%) 369.5 539.5 908.9 804.8 13% 887.5 2% Other income 8.4 103.3 111.7 99.5 12% 8.4 18.1 26.5 27.5 (4%) 22.4 18% Interest income 0.5 3.6 4.1 6.1 (33%) 0.5 0.8 1.4 1.2 18% 1.5 (5%) Total income 378.4 3,147.6 3,525.9 3,530.7 (0%) 378.4 558.4 936.8 833.4 12% 911.4 3% Expenses Cost of rental and services 16.5 125.3 141.8 119.6 19% 16.5 26.3 42.8 32.7 31% 32.0 34% Selling and administrative expenses 23.1 59.8 82.9 64.8 28% 23.1 8.2 31.3 17.1 83% 22.2 41% Property management fee 68.9 358.0 426.9 399.4 7% 68.9 65.8 134.7 91.0 48% 105.4 28% Other expenses 0.0 0.0 0.0 0.0 2% 0.0 0.0 0.0 0.0 185% 0.0 426% Other management fees and expenses 15.9 39.5 55.4 43.8 27% 15.9 7.4 23.3 10.7 117% 11.1 110% Finance costs 30.1 64.8 94.9 72.4 31% 30.1 12.1 42.2 17.5 141% 18.0 134% Total expense 154.6 647.3 802.0 699.9 15% 154.6 119.8 274.4 169.1 62% 188.7 45% Net investment income 223.7 2,500.2 2,724.0 2,830.8 (4%) 223.7 438.6 662.4 664.3 (0%) 722.7 (8%) Net realised gain (loss) on investments (25.3) (3.7) (25.3) 0.2 (0.6) Net unrealised gain (loss) investments (605.8) 335.6 (605.8) (35.8) (32.8) Net increase in net assets (407.3) 3,162.7 (407.3) 628.7 689.3 Note: /1 Full year performance by combining performance of CPNREIT (29 November 2017 1 December 2017) and CPNRF (1 January 2017 4 December 2017) /2 4Q2017 performance by combining performance of CPNREIT (29 November 2017 1 December 2017) and CPNRF (1 October 2017 4 December 2017) 11
Distribution Summary Distribution Period 29 November 31 December 2017 (including the performance of CPNRF for the period of 1 October 2017 to 4 December 2017) Distribution Per Unit via profit distribution via capital reduction THB 0.2879 THB THB 0.2879 XN (excluding capital return) 6 March 2018 Record Date 9 March 2018 Payment Date 22 March 2018 12
OPERATION HIGHLIGHTS
Area and Occupancy Project Area (sqm) Occupancy Rate /1 Gross Floor Area Leasable Area /1 31 Mar 17 30 Jun 17 30 Sep 17 31 Dec 17 CentralPlaza Rama 2 251,182 82,746 84.8% 89.9% 91.8% 93.6% CentralPlaza Rama 3 169,740 36,285 86.9% 62.7% 58.6% 77.7% CentralPlaza Pinklao (Retail) 137,692 27,611 95.7% 95.7% 97.6% 99.2% Pinklao Tower A and B 50,653 34,031 90.3% 90.0% 84.5% 84.6% CentralPlaza Chiangmai Airport 122,991 37,490 94.0% 94.1% 93.1% 92.9% Total/Average 732,258 218,163 88.9% 86.8% 86.0% 90.1% CentralFestival Pattaya Beach 70,095 29,404 97.6% Total/Average 802,353 247,567 91.0% Hilton Pattaya 49,686 302 rooms 94.7% 91.6% 93.3% 93.4% Note: /1 Anchor and in-line tenants only 14
New and Renewed Lease Project From 1 October to 31 December 2017 Renewed and New Leases /1 No. of Leases Area (sqm) % of Total /2 CentralPlaza Rama 2 89 12,122 33.7% CentralPlaza Rama 3 38 3,999 24.2% CentralPlaza Pinklao (Retail) 7 869 4.5% Pinklao Tower A and B 14 4,633 16.1% CentralPlaza Chiangmai Airport 46 1,998 8.2% CentralFestival Pattaya Beach /3 17 2,168 12.0% Total/Average 211 25,788 18.1% Note: /1 Exclude rental agreements < 1 year /2 Percentage of leasable area as at 31 December 2017 /3 Renewals and new leases from period of 1 December 2017 31 December 2017 15
Lease Expiry Profile 16
Rental Structure 17
ASSET ENHANCEMENT INITIATIVES
Major Renovation at CentralPlaza Rama 3 PHASE 1 Completed in December 2017 RAMA 3 RETAIL JUNGLE Connect Every Lifestyle with Welcoming of Natural Charm Start Jun 2017 Completion Phase 1: Dec 2017 Phase 2: Q1 2018 Budget THB 675 miillion Improvement of common area Improvement of decoration New façade design Re-merchandising mix Improvement of traffic circulation by installing more escalators Increasing rest area and interior garden Improvement of parking area and landscape to avoid traffic problem and accommodate customers 19
Asset Enhancement Initiatives RAMA 2 CHIANGMAI AIRPORT Completed in 2017 Completed in 2017 Improvement of Kad Laung local foods and souvenir zone Conversion of vacant space to bank zone and Fashion Plus zone Improvement of Fashion Plus zone 20
Contact Us CPN REIT Management Company Limited 31 st Floor, The Offices at CentralWorld, 999/9 Rama1 Road Patumwan, Bangkok 10330 +66 (0) 2-667-5555 Ext. 1660 http://www.cpnreit.com Investor Relations : ir_cpnreit@cpn.co.th Independent Director : idcpnreit@cpn.co.th Compliance : compliancecpnreit@cpn.co.th 21