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CPN Retail Growth Leasehold REIT
Investor Presentation FY2018
February 2019
Page 2Disclaimer
• 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.
Prepared by Investor Relations, CPN REIT Management Co., Ltd.
Disclaimer
Page 3Agenda
CPNREIT Overview
Prepared by Investor Relations, CPN REIT Management Co., Ltd.
Agenda
Business Updates
Key Financial Highlights
Page 4
CPNREIT Overview
Page 5CPNREIT Overview
2017Conversion of
CPNRF to
CPNREIT (2)
20091st Follow-on
Offering2005Initial Public
Offering of
CPNRF (1)
Acquisition ofCentralPlaza Rama 2
CentralPlaza Rama 3
20142nd Follow-on
Offering
Acquisition ofCentralPlaza Pinklao
Acquisition ofCentralPlaza Chiangmai Airport
Acquisition ofCentralFestival Pattaya Beach
Hilton Pattaya Hotel
A robust and diversified portfolio of high-quality assets
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
Shopping Centers
5Hotel
1
Prepared by Investor Relations, CPN REIT Management Co., Ltd.
Establishment and investment track record
Office Buildings
2
Page 6
CentralPlaza Chiangmai Airport
Year acq. 2014
Lease end Apr-2044
NLA (sqm) 37,803
Occ. rate 93%
Hilton Pattaya2
Year acq. 2017
Lease end Aug-2037
Rooms 302
Occ. rate 93%
CentralFestival Pattaya Beach
Year acq. 2017
Lease end Aug-2037
NLA (sqm) 29,404
Occ. rate 98%
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
NLA (sqm) 27,585 NLA (sqm) 34,320
Occ. rate 99% Occ. rate 90%
CentralPlaza Rama 2
Year acq. 2005
Lease end Aug-2025
NLA (sqm) 82,590
Occ. rate 96%
CentralPlaza Rama 3
Year acq. 2005
Lease end(1) Aug-2095
NLA (sqm) 37,122
Occ. rate 94%
Bangkok
Metropolitan
Area
Thailand
Chiangmai
Pattaya
CPNREIT Overview
Note: Asset information as 31 December 2018
(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
Prepared by Investor Relations, CPN REIT Management Co., Ltd.
Top-class assets at prime locations
Page 7CPNREIT Overview
249 95%
98% 93%
High occupancy levels across all properties
Outstanding performances of
newly acquired properties
Hilton PattayaCentralFestivalPattaya Beach
~maintainYoY
2.71
3.31 3.14 3.53 3.53
4.93
2013 2014 2015 2016 2017 2018
Healthy revenue generated from operations
Unit: THB bn
12.09 14.01 14.82 15.19
21.27 21.18
2013 2014 2015 2016 2017 2018
Growing TAV from higher property value and acquisition
Unit: THB / unit~13%
5Y CAGR ~12%5Y CAGR
Prepared by Investor Relations, CPN REIT Management Co., Ltd.
Solid operating performance track record
Note: Asset information as of December 31, 2018
Page 8CPNREIT Overview
17,827
27,690 29,242 29,993 29,462 29,995
19,780
30,99132,784 33,604
47,056 46,850
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
Borrowing and Gearing Limit
Borrowing NAV Liabilities % Gearing
Property FundGearing Limit
0.10x of NAV
REIT Gearing Limit (IG)
60% of TAV
REIT Gearing Limit (non-IG)
35% of TAV
CPNRF Rights
Offering
Conversion to
CPNREIT
Unit: THB mn
CPN
REIT
De
bt
Pro
file
Prepared by Investor Relations, CPN REIT Management Co., Ltd.
18%
51%
58%
42%Total
available
credit facilities
Unused
Used
Note: Debt profile as of 31 December 2018.
(1) All loans from financial institutions are under fixed rate with an average cost of debt at 2.43%
Flexible funding capacity for portfolio expansion
2%
31% of TAV
6% of NAV7% of NAVof NAV
2013 2014 2015 2016 2017 2Q18
7% of NAV
31% of TAV
31%
69%
Loans from FinancialInstitutions(1)
CorporateDebentures
3Y Tenure
10Y Tenure
14,499THB mn
2.51%avg. cost of bonds
Page 9CPNREIT Overview
6.7%
5.8%5.6%
5.9%
5.1%
6.3%
4.1%3.8%
4.7%4.8%
3.9%4.1%
1%
2%
3%
4%
5%
6%
7%
8%
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2013 2014 2015 2016 2017 2018
Distribution per Unit and Yield
1Q 2Q 3Q 4Q Sector Ave.
1.2283
1.3260
1.0081
1.15281.1371 (1)
THB/unit
CPNRF/CPNREITDistribution Yield
Sector Average (2)
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
(2) Sector average represents the SET Property Fund and REIT sector dividend yield as of the end of each period.
minimum payout of distributable income90%
times per year distribution to unitholders4
Dis
trib
utio
n
Po
licy
Prepared by Investor Relations, CPN REIT Management Co., Ltd.
Consistently high distribution yields
1.617
Page 10
Geographical expansion
CPNREIT StrategyPrepared by Investor Relations, CPNREIT Management Co., Ltd.
Organic
Growth
M&A
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
Secure new tenants and lease renewals
Develop strong tenant relationships
Optimize rental contract mix
Maximize
occupancy levels
with minimal
business interruption
Steady rental rate growth
with upside potential
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)
Growth strategy and focus areas
Page 11CPNREIT Proposition
The largest retail REIT in Thailand
with over THB 44 billion worth of invested properties1
Top-class assets in prime locations
diversified throughout Bangkok and major provinces in Thailand
2
Strong professional network
comprising leaders in mixed-use property development and asset management industries
3
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
60.3
45.1
12.4 8.0 3.7 4.2
CPNREIT TLGF FUTUREPF LHSC CRYSTAL MJLF
Invested properties size
of Thailand’s retail PFs/REITs (1)
Unit: THB bn
Note: (1) Based on announcements of latest financial results for Property Funds and REITs on the Stock Exchange of Thailand (as of 1 Mar 19)
Prepared by Investor Relations, CPN REIT Management Co., Ltd.
Why invest in CPNREIT?
Page 12
Business Updates
Page 13Business UpdatesPrepared by Investor Relations, CPN REIT Management Co., Ltd.
Grand opening @ CentralPlaza Rama 3
Concept : “Where Nature Meets
Urban Living”
Date : 9 August 2018
Page 14Business UpdatesPrepared by Investor Relations, CPN REIT Management Co., Ltd.
Grand opening @ CentralPlaza Rama 3
Page 15
Debentures
• CPNREIT was given rated “AA” with “stable” outlook for both company and debenture ratings by Tris Rating on 25 May 2018 and 29 June 2018.
• CPNREIT issued 4 tranches of debentures since August 2018. The objective of
issuance of debentures was for bank loans repayment, details are as follows;
BondAmount
Issue Date Maturity DateTenor Coupon
(MB) (Year) (%)
CPNREIT218A 2,650 17-Aug-18 17-Aug-21 3 2.70
CPNREIT288A 7,390 17-Aug-18 17-Aug-28 10 3.80
CPNREIT212A 2,700 8-Feb-19 8-Feb-21 2 2.54
CPNREIT232A 1,795 8-Feb-19 8-Feb-23 4 3.30
Total 14,535 3.30
Business UpdatesPrepared by Investor Relations, CPN REIT Management Co., Ltd.
Page 16
Debentures
• CPNREIT won the award “Deal of the Year” from The Best Bond Award 2018
organized by ThaiBMA on 21 February 2019, from the issuance of bond in
2018.
Business UpdatesPrepared by Investor Relations, CPN REIT Management Co., Ltd.
Page 17
Key Financial Highlights
Page 18Financial HighlightsPrepared by Investor Relations, CPN REIT Management Co., Ltd.
6Y (2013-2018) NLA and occupancy rates
Note: (1) Anchor and in-line tenants only
(2) Average full year occupancy rate
181218
249
0
100
200
300
2013 2014 2015 2016 2017 2018
180218 224 224
247
‘000 sqm NLA (1)
96 97 96 87 94 96 98 94 92 90 78 94 100 98 67 96 99 99 98 96 97 90 85 90 99 97 97 93 93 98 93
97 97 92 91 91
95
50
60
70
80
90
100
2013 2014 2015 2016 2017 2018
Rama 2
Rama 3
Pinklao (Retail)
Pinklao (A&B)
Chiangmai Airport
Pattaya Beach
Hilton Pattaya
Total (Excl.Hilton)98 93
Occ. Rate (1) (%)
Existing Projects
Acquired Projects
CentralPlazaChiangmai Airport
CentralFestivalPattaya Beach
Major Renovation @ CentralPlaza
Pinklao
Major Renovation @ CentralPlaza
Rama 3
(2)
Page 19Financial HighlightsPrepared by Investor Relations, CPN REIT Management Co., Ltd.
New and renewed leases
Note:
/1 Exclude rental agreements < 1 year
/2 Percentage of leasable area exclude Anchor area as at 31 December 2018
Project
From 1 January to 31 December 2018
Renewals and New Leases /1
No. of Leases Area (sqm) % of Total /2
CentralPlaza Rama 2 181 15,778 20.0%
CentralPlaza Rama 3 124 12,518 35.8%
CentralPlaza Pinklao (Retail) 67 9,808 36.0%
Pinklao Tower A and B 91 17,701 57.3%
CentralPlaza Chiangmai Airport 260 18,669 53.3%
CentralFestival Pattaya Beach 127 11,635 40.2%
Total/Average 850 86,110 36.5%
Page 20Financial HighlightsPrepared by Investor Relations, CPN REIT Management Co., Ltd.
% of occupied area and expiry by year
Note: Information as of 31 December 2018
Lease expiry includes contracts of anchors and in-line tenants
Lease expiry profile
Page 21Financial HighlightsPrepared by Investor Relations, CPN REIT Management Co., Ltd.
60
40Total
Portfolio42
5862
38
5248
65
35
100
66
34
CentralPlazaRama 2
CentralPlazaRama 3
CentralFestival
Pattaya
Beach
CentralPlazaPinklao
PinklaoTower A&B
CentralPlazaChiangmai
Airport
% of occupied area
Fixed Rent % of Tenant Sales
Note: Information as of 31 December 2018
Rental structure
Page 22Financial HighlightssPrepared by Investor Relations, CPN REIT Management Co., Ltd.
Balance Sheet
31 Dec 17 31 Mar 18 30 Jun 18 30 Sep 18 31 Dec 18
Investments in properties at fair value 44,310 44,301 44,675 44,677 44,750
CentralPlaza Rama 2 7,186 6,997 6,997 6,900 6,962
CentralPlaza Rama 3 9,179 10,151 10,525 10,662 10,698
CentralPlaza Pinklao 5,543 5,778 5,778 5,721 5,678
CentralPlaza Chiangmai Airport 10,494 10,653 10,653 10,658 10,658
CentralFestival Pattaya Beach 8,154 7,272 7,272 7,283 7,289
Hilton Pattaya 3,754 3,450 3,450 3,453 3,465
Investment in securities at fair value 990 992 994 997 999
Cash on hand and at banks 1,052 482 510 610 342
Other assets 703 729 733 751 759
Total assets 47,056 46,504 46,913 47,034 46,850
Account payable and accrued expenses 1,466 657 592 644 528
Deposits received from customers 1,424 1,461 1,489 1,529 1,544
Unearned lease and service income 51 62 84 73 53
Borrowing 14,454 14,456 14,459 4,466 4,469
Debentures - - - 10,030 10,030
Other liabilities 198 212 219 224 231
Total liabilities 17,593 16,848 16,842 16,966 16,855
Net assets 29,462 29,656 30,071 30,068 29,995
Capital received from unitholders 29,653 29,016 29,016 29,016 29,016
Equalisation account 216 216 216 216 216
Retained earning (deficit) (407) 423 839 835 763
NAV per unit (in Baht) 13.3164 13.4040 13.5917 13.5902 13.5573
CPNREITUnit: Baht Million
Page 23Financial HighlightsPrepared by Investor Relations, CPN REIT Management Co., Ltd.
Statement of income
/1&/2 Financial Statements from 29 November (date of incorporation) to 31 December 2017 and Independent Auditor’s Report of CPNREIT and Financial Statements from 1 January to
4 December 2017 and Financial Statements for the three-month and nine-month periods ended 30 September 2017 of CPNRF
CPNREIT CPNRF Change Change CPNREIT CPNRF Change
29 Nov -
31 Dec
1 Jan -
4 DecYoY QoQ
29 Nov -
31 Dec
1 Oct -
4 DecYoY
Property income 4,923 3,522 378 3,144 40% 1,257 1,253 0.3% 935 378 558 34%
Rental and service income 4,739 3,410 369 3,041 39% 1,214 1,212 0.2% 909 369 539 34%
Other income 184 112 8 103 65% 42 41 3.2% 26 8 18 60%
Interest income 4 4 1 4 (5%) 1 1 (9.1%) 1 1 1 (37%)
Total income 4,927 3,526 378 3,148 40% 1,258 1,254 0.3% 937 378 558 34%
Property expenses 772 652 109 543 18% 205 184 11.4% 209 109 100 (2%)
Cost of rental and service 141 142 17 125 (0%) 38 36 5.0% 43 17 26 (12%)
Selling and administrative expenses 117 83 23 60 41% 39 26 52.2% 31 23 8 25%
Property management fee 513 427 69 358 20% 129 123 4.7% 135 69 66 (5%)
Finance costs 401 95 30 65 322% 121 104 15.5% 42 30 12 186%
Other management fees and expenses 177 55 16 39 220% 45 45 (0.4%) 23 16 7 93%
Total expense 1,350 802 155 647 68% 371 334 11.1% 274 155 120 35%
Net investment income 3,578 2,724 224 2,500 31% 886 920 (3.6%) 662 224 439 34%
(3) (25) (25) 2,138 87% (0) (1) 98.6% (25) (25) n.a. n.a.
252 (606) (606) (3,884) 142% (40) (25) (59.0%) (606) (606) n.a. n.a.
3,827 2,093 (407) 754 83% 847 894 (5.2%) 31 (407) n.a. n.a.
4Q17/2
Net realised gain (loss) from changes in
investment value
Net unrealised gain (loss) from changes in
investment value
Net increase (decrease) in net assets from
operation
Unit: Baht Million FY2018 FY2017/1 4Q18 3Q18
Page 24
0.3795
0.4055
0.4157 0.4163
0.3600
0.3700
0.3800
0.3900
0.4000
0.4100
0.4200
1Q 2Q 3Q 4Q
Distribution of returns
Distribution Summary
Distribution Period 1 October 2018 – 31 December 2018
Distribution Per Unit THB 0.4163
XD 8 March 2019
Book Closing Date 12 March 2019
Payment Date 25 March 2019
Bt/Unit
Financial HighlightsPrepared by Investor Relations, CPN REIT Management Co., Ltd.
Page 25Q&A
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
+662 667 5555 ext. 1660
@ ir_cpnreit@cpn.co.th
http://www.cpnreit.com
Prepared by Investor Relations, CPN REIT Management Co., Ltd.
End of presentation
Page 26
Appendices
Page 27Appendices
REIT Manager Trustee
Property Manager
Investment in CPNREIT
Invest in Assets
HILTON PATTAYA
Hotel Manager
Management Fee
Management Services
Distribution
Net Property Income
Trustee Fee
Represents Interest of
Unitholders
CPN Pattaya Hotel Co., Ltd.
Subleases Rental Income
Property Management Fee
Prepared by Investor Relations, CPN REIT Management Co., Ltd.
CPNREIT transparent management structure
Property Management
Services
Page 28Appendice
Unitholders
REIT Manager
Property Manager
HotelManager
HiltonPattaya
CPN Pattaya Hotel Co., Ltd.
Trustee
Strong support from retail and institutional unitholders, as well as from Central Pattana
PCL (CPN) as the Sponsor
ExperiencedTrustee
SCB Asset Management Co., Ltd.managed CPNRF for nearly 10 yearsand is one of the largest, mostexperienced and accomplished assetmanagement companies in Thailand.
32.1
31.2
26.7 10.1
Unit: % of total units outstanding
million units outstanding
2,212.48
Foreign
Retail
Local
Institutions
Prepared by Investor Relations, CPN REIT Management Co., Ltd.
Market Capitalization (THB mn) 60,290
Unit Price (THB/share) 27.25
Source: SETSMART as of March 1, 2019
TSD booking record as of December 28, 2018
Diversified unitholder structure
5 Shopping Centers & 2
Office Buildings
Page 29Appendice
Unitholders
REIT Manager
HotelManager
HiltonPattaya
5 Shopping Centers & 2
Office Buildings
CPN Pattaya Hotel Co., Ltd.
Trustee
REIT and its underlying assets are managed by professional leaders in the industry
SubleaseAgreement
Prepared by Investor Relations, CPN REIT Management Co., Ltd.
Regionally acclaimed
property manager
Experienced
REIT manager
World-class hotel
manager
High caliber professionals with extensive experience
in retail asset investment and management
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
Nearly a century of hotel operatorship and one of the
leading global hospitality brands
Property Manager
Strong relationship with industry leaders
Page 30Appendices
Rama 2 Rama 3 Pinklao ChiangmaiAirport
PattayaBeach
HiltonPattaya
Location Bangkok Bangkok Bangkok Chiangmai Pattaya, Chonburi
Pattaya, Chonburi
Gross Floor Area incl. Parking (sqm)
251,182 169,740 188,345 122,991 70,095 49,686
Net LeasableArea (sqm)
82,590 37,122 61,905 37,803 29,404 302 rooms
Land Area(rai-ngan-sqw)
53-2-38.4 12-2-44.6 24-2-84 32-3-56.85 - -
Land Tenure Leasehold
tenure of 20
years ending 15 Aug 2025
Leasehold
tenure of
30+30+30years ending 15 Aug 2095
Leasehold
tenure of
approximately15 years ending
31 Dec 2024
Leasehold
tenure of 15
years ending 22 Apr 2044
- -
Building & Utility Systems
Leasehold
tenure of 20
years ending 15 Aug 2025
• Building –
Leasehold
same tenure as land
• Utility Systems – Ownership
Leasehold
tenure of
approximately15 years ending
31 Dec 2024
Leasehold
tenure of 15
years ending22 Apr 2044
Leasehold
tenure of
approximately20 years ending
31 Aug 2037
Leasehold
tenure of
approximately20 years ending 31 August 2037
Movable Assets Ownership Ownership Ownership Ownership Ownership Ownership
ValuationAs at 31
December 2018(THB million)
6,962 10,698 5,678 10,658 7,289 3,465
Note: Fair value as of 31 December 2018
Prepared by Investor Relations, CPN REIT Management Co., Ltd.
Asset information
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