CPN Retail Growth Leasehold REIT Invest ASEAN Singapore 2018 27 28 March 2018
Disclaimer 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. Disclaimer Page 2
Agenda CPNREIT Investment Proposition Growth Strategy Investment Updates Agenda Page 3
Why invest in CPNREIT? 1 The largest retail REIT in Thailand with over THB 44 billion worth of invested properties 44.3 Invested properties size of Thailand s retail PFs/REITs (1) Unit: THB bn 2 Top-class assets in prime locations diversified throughout Bangkok and major provinces in Thailand 30.2 3 Strong professional network comprising leaders in mixed-use property development and asset management industries 7.2 6.4 4.1 3.8 CPNREIT TLGF FUTUREPF LHSC CRYSTAL MJLF Solid performance track record in both financial and operating results 4 Flexible funding capacity for expansion investments through leveraged financing 5 Consistently high distribution yields and reward sustainable returns to unitholders 6 Note: (1) Based on announcements of latest financial results for Property Funds and REITs on the Stock Exchange of Thailand CPNREIT Proposition Page 4
Establishment and investment track record A robust and diversified portfolio of high-quality assets 5 Shopping Centers 2 Office Buildings 1 Hotel 2017 Conversion of CPNRF to CPNREIT (2) Acquisition of CentralPlaza Rama 2 CentralPlaza Rama 3 2005 Initial Public Offering of CPNRF (1) 2009 1 st Follow-on Offering Acquisition of CentralPlaza Pinklao Acquisition of CentralPlaza Chiangmai Airport 2014 2 nd Follow-on Offering Acquisition of CentralFestival Pattaya Beach Hilton Pattaya Hotel Note: (1) CPN Retail Growth Leasehold Property Fund (2) The conversion of CPNRF to CPNREIT, along with the two assets acquired, was completed on December 1, 2017 CPNREIT Overview Page 5
Top-class assets at prime locations Front-running properties in Greater Bangkok and major provinces for locals and tourists CentralPlaza Pinklao Pinklao Tower A & B Year acq. 2009 Year acq. 2009 Lease end Dec-2024 Lease end Dec-2024 CentralPlaza Chiangmai Airport Year acq. 2014 NLA (sqm) 27,611 NLA (sqm) 34,031 Lease end Apr-2044 Occ. rate 99% Occ. rate 85% NLA (sqm) 37,490 Occ. rate 93% CentralPlaza Rama 2 Year acq. 2005 Lease end Aug-2025 NLA (sqm) 82,746 Occ. rate 94% Chiangmai Thailand Pattaya CentralFestival Pattaya Beach Year acq. 2017 Bangkok Metropolitan Area Lease end Aug-2037 NLA (sqm) 29,404 Occ. rate 98% Hilton Pattaya 2 CentralPlaza Rama 3 Year acq. 2017 Lease end Aug-2037 Year acq. 2005 Rooms 302 Lease end (1) Aug-2095 Occ. rate 93% NLA (sqm) 36,285 Occ. rate 78% Note: Asset information as of December 31, 2017 (1) Includes option to extend lease 2 more times at 30 years each. (2) Property subleased to CPN Pattaya Hotel Co., Ltd.in which CPNREIT earns rental income CPNREIT Overview Page 6
Strong relationship with industry leaders REIT and its underlying assets are managed by professional leaders in the industry Unitholders Experienced REIT manager Trustee High caliber professionals with extensive experience in retail asset investment and management REIT Manager Regionally acclaimed property manager 5 Shopping Centers & 2 Office Buildings Hilton Pattaya Hotel Manager Over 30 years of experience and one of Southeast Asia s largest property developer and manager for 32 world class mixed-use development projects in Thailand Property Manager Sublease Agreement CPN Pattaya Hotel Co., Ltd. World-class hotel manager Nearly a century of hotel operatorship and one of the leading global hospitality brands CPNREIT Overview Page 7
Diversified unitholder structure Strong support from retail and institutional unitholders, as well as from Central Pattana PCL (CPN) as the Sponsor Unitholders Unit: % of total units outstanding Trustee 26.7 13.0 Foreign Institutions 2,122.48 REIT Manager million units outstanding 30.7 Retail 5 Shopping Centers & 2 Office Buildings Hilton Pattaya Hotel Manager Local Institutions 29.6 Market Capitalization (THB mn) 48,896 Unit Price (THB/share) 22.10 Property Manager CPN Pattaya Hotel Co., Ltd. Source: SETSMART as of March 9, 2018 TSD booking record as of February 7, 2017 Experienced Trustee SCB Asset Management Co., Ltd. managed CPNRF for nearly 10 years and is one of the largest, most experienced and accomplished asset management companies in Thailand. CPNREIT Overview Page 8
Solid operating performance track record High occupancy levels across all properties ~maintain 248 YoY 91% Outstanding performances of newly acquired properties CentralFestival Pattaya Beach 98% 93% Hilton Pattaya Note: Asset information as of December 31, 2017 Healthy revenue generated from operations Unit: THB bn ~7% 4Y CAGR Growing TAV from higher property value and acquisition Unit: THB / unit ~15% 4Y CAGR 2.71 3.31 3.14 3.53 3.53 12.09 14.01 14.82 15.19 21.27 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 CPNREIT Overview Page 9
Flexible funding capacity for portfolio expansion Borrowing and Gearing Limit 50000 Unit: THB mn Borrowing NAV Liabilities % Gearing 47,056 45000 40000 35000 30000 25000 20000 15000 CPNRF Rights Offering 19,780 17,827 30,991 27,690 Conversion to CPNREIT 32,784 33,604 29,242 29,993 29,462 31% of TAV REIT Gearing Limit (IG) 60% of TAV REIT Gearing Limit (non-ig) 35% of TAV 10000 Property Fund 5000 Gearing Limit 0.10x of NAV 0 2% of NAV 7% of NAV 7% of NAV 6% of NAV 2013 2014 2015 2016 2017 CPNREIT Debt Profile Unused 42% Total available credit facilities 58% Used Fixed interest; Maturity < 1Y 13% 14,454 THB mn 87% Floating interest; Maturity > 1Y 2.39% Effective Annual Interest Rate 1.8Yrs Average Loan Life Note: Debt profile as of December 31, 2017 CPNREIT Overview Page 10
Consistently high distribution yields Distribution per Unit and Yield THB/unit 1Q 2Q 3Q 4Q 1.40 1.20 1.00 0.80 1.2283 6.7% 1.3260 5.8% 1.0081 5.6% 1.1528 1.1371 (1) 5.9% 5.1% 8% 7% 6% CPNRF/CPNREIT 5% Distribution Yield 0.60 4% Sector Average (2) 0.40 3% 0.20 2% 0.00 2013 2014 2015 2016 2017 1% Distribution Policy 90% minimum payout of distributable income 4 times per year distribution to unitholders Source: CPNRF and CPNREIT announcements; SETSMART Note: Yield on unit distribution based on last twelve months accumulated distribution and the pre-record date trade price (1) 4Q17 distribution was announced as a capital reduction due to the absorption of CPNRF s retained earnings into CPNREIT s unit capital CPNREIT Overview Page 11
Growth strategy and focus areas M&A Geographical expansion Asset diversification Continuous effort to identify, study, assess and review, jointly with the REIT Manager and Property Manager, new investment opportunities Provide long-term returns to unitholders Asset Enhancement Initiatives (AEI) Remerchandizong tenant mix and improve zoning of malls Optimize NLA and common area utilization Improve accessibility to increase shopper traffic Upgrade amenities for better convenience Organic Growth Maximize occupancy levels with minimal business interruption Steady rental rate growth with upside potential Secure new tenants and lease renewals Develop strong tenant relationships Optimize rental contract mix Prepared by Investor Relations, CPNREIT Management Co., Ltd. CPNREIT Strategy Page 12
AEI @ CentralPlaza Rama 3 PHASE 1 Completed in December 2017 RETAIL JUNGLE Connect Every Lifestyle with Welcoming of Natural Charm Start Jun 2017 Completion Phase 1: Dec 2017 Phase 2: Q2 2018 Budget THB 675 mn 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 Investment Updates Page 13
AEI: minor renovations 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 Investment Updates Page 14
End of presentation For more information, please contact: Investor Relations CPN Retail Growth Leasehold REIT (CPNREIT) CPN REIT Management Company Limited 31st Fl, the Offices at CentralWorld 999-9 Rama I Rd., Patumwan District Bangkok 10330 Thailand @ ir_cpnreit@cpn.co.th +662 667 5555 ext. 1660 http://www.cpnreit.com Q&A Page 15
Appendices
REIT vs. Property Fund Enables higher gearing ratio and leverage base Better accessibility to money and capital markets Property Fund - 10% of NAV REIT - 35% of Total Asset Value for unrated debenture and 60% of Total Asset Value for investment grade-rated debenture Property Fund - No longer allowed to issue new capital for investments REIT - Allowed to issue new capital for investments as well as debt financing at IPO Can invest in multitudes of asset type and location Growth in NAV and dividend to compensate higher tax on dividend for some types of unitholders Property Fund - Limited to certain domestic income-generating assets (retail, warehouse, office, hotel and service apartment) - Can only invest in properties at >80% completion REIT - Can invest in domestic and offshore projects with total value higher than THB 500 mn - Can invest in assets under development with amount needed for completion not more than 10% of NAV Property Fund - Listed co: 0% if hold 3 months pre and post book closing date - Non-listed co: half of Corporate Income Tax rate if hold 3 months pre and post book closing date - Non-resident: 0% - Individual: 10% Withholding Tax REIT - Listed co: Corporate Income Tax rate - Non-listed co: Corporate Income Tax rate - Non-resident: 10% Withholding Tax - Individual: 10% Withholding Tax Source: Regulations on property fund and REIT as outlined by the Stock Exchange of Thailand (SET) and the Securities and Exchange Commission of Thailand (SEC) Appendices Page 17
CPNREIT transparent management structure Investment in CPNREIT Distribution REIT Manager Management Fee Trustee Fee Trustee Property Management Services Management Services Invest in Assets Net Property Income Represents Interest of Unitholders Property Manager Property Management Fee Hotel Manager HILTON PATTAYA Subleases Rental Income CPN Pattaya Hotel Co., Ltd. Appendices Page 18
Asset information Rama 2 Rama 3 Pinklao Chiangmai Airport Pattaya Beach Hilton Pattaya Location Bangkok Bangkok Bangkok Chiangmai Pattaya, Chonburi Gross Floor Area incl. Parking (sqm) Net Leasable Area (sqm) Land Area (rai-ngan-sqw) Land Tenure Building & Utility Systems Pattaya, Chonburi 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 - - Leasehold tenure of 20 years ending 15 Aug 2025 Leasehold tenure of 20 years ending 15 Aug 2025 Leasehold tenure of 30+30+30 years ending 15 Aug 2095 Building Leasehold same tenure as land Utility Systems Ownership Leasehold tenure of approximately 15 years ending 31 Dec 2024 Leasehold tenure of approximately 15 years ending 31 Dec 2024 Leasehold tenure of 15 years ending 22 Apr 2044 Leasehold tenure of 15 years ending 22 Apr 2044 - - Leasehold tenure of approximately 20 years ending 31 Aug 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 Note: Asset information as of December 31, 2017 Appendices Page 19
Financial position Unit: THB mn 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 Pinklao 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 expen 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 Appendices Page 20
Profit and loss Unit: THB mn 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 expens 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 investmen (25.3) (3.7) (25.3) 0.2 (0.6) Net unrealised gain (loss) investment (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 Appendices Page 21
5Y (2013-2017) NLA and occupancy rates 000 sqm NLA (1) 300 200 180 100 CentralPlaza Chiangmai Airport 218 224 224 181 CentralFestival Pattaya Beach 247 218 Acquired Projects Existing Projects 0 2013 2014 2015 2016 2017 Occ. Rate (1) (%) 100 90 97 97 92 91 91 100 90 Rama 2 Rama 3 80 80 Pinklao (Retail) 70 70 Pinklao (A&B) 60 50 96 98 100 98 97 94 98 96 99 96 92 67 97 97 87 90 96 90 97 94 78 99 85 93 98 2013 2014 2015 2016 2017 60 50 Chiangmai Airport Pattaya Beach Total Major Renovation @ CentralPlaza Pinklao Major Renovation @ CentralPlaza Rama 3 Note: (1) Anchor and in-line tenants only Appendices Page 22
New and renewed leases Project From 1 January to 31 December 2017 New and renewed leases (1) # of leases Area (sqm) % of NLA (2) CentralPlaza Rama 2 144 15,863 19.2% CentralPlaza Rama 3 131 12,004 33.1% CentralPlaza Pinklao 7 869 3.1% Pinklao Tower A&B 59 14,385 42.3% CentralPlaza Chiangmai Airport 88 6,629 17.7% CentralFestival Pattaya Beach (3) 17 2,168 7.4% Total 446 51,918 21.0% 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 Appendices Page 23
Lease expiry profile % of occupied area and expiry by year 13 29 Total Portfolio 34 37 19 CentralPlaza Rama 2 11 35 1 CentralPlaza Rama 3 49 24 33 15 Expire in 2018 Expire in 2019 Expire in 2020 Expire after 2020 23 CentralPlaza Pinklao 38 39 25 29 Pinklao Tower A&B 46 36 CentralPlaza Chiangmai Airport 24 40 47 14 Central Festival Pattaya Beach 39 Note: Information as of December 31, 2017 Lease expiry includes contracts of anchors and in-line tenants Appendices Page 24
Rental structure % of occupied area 40 Total Portfolio 60 CentralPlaza 43 42 CentralPlaza 57 Rama 2 Rama 3 58 Fixed Rent % of Tenant Sales 32 CentralPlaza Pinklao 68 Pinklao Tower A&B 34 CentralPlaza Chiangmai Airport 66 48 Central Festival Pattaya Beach 52 100 Note: Information as of December 31, 2017 Appendices Page 25
Stock information Recent Key Trading Statistics Distribution History (1) Key Metrics THB Key Metrics 2017 2016 2015 2014 2013 Par Value 13.4028 Unit Price (THB) 22.10 Net Asset Value per Unit (THB) 13.3164 P/NAV (x) 1.66 Distribution Yield (3) (%) 5.1% Par Value (THB) 13.4028 (2) 10.00 10.00 10.00 10.00 Distribution (THB/unit) 1.1371 (3) 1.1528 1.0081 1.3260 1.2283 Total Distribution (THB mn) 2,516 2,551 2,230 2,934 2,718 Net Investment Income (THB mn) 2,724 2,831 2,422 2,684 2,152 Payout Ratio 92% 90% 92% >100% >100% Market Capitalization (THB bn) 48,896 Units Outstanding (mn units) 2,122.48 Source: SETSMART (except P/E and P/BV ratios, calculated based on the latest financial results), company announcements on SET Note: (1) Data as of 2013-2016 are based on CPNRF performances. For 2017, data are based on CPNRF performances from January 1 to December 4 and CPNREIT performances from November 29 to December 31 (2) Par value of CPNREIT is based on 1:1 unit conversion of CPNRF s capital and retained earnings effective on December 1, 2017 (3) Distributions in 1Q17-3Q17 are paid from CPNRF. Distribution in 4Q17 was paid from CPNREIT as a capital reduction Appendices Page 26