ARA Asset Management Limited

Results for the half year ended 30 June 2016

ARA Asset Management Limited

An integrated real estate fund manager in Asia driven by a vision to be a best-of-class

investment manager, offering bespoke solutions and enduringvalue to investors and partners

ANCHORED BY OUR CORE VALUES

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1H2016

Highlights

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Group AUM of ~S$30

billion(1)

10% growth in total revenue

Recurrent management fees up 10%

to S$68.0 million

Adjusted Net Profit up 7% to S$36.5 million

Achieved ~S$1b of

new assets and capital

YTD

Notes:

(1) Based on exchange rates as at 30 June 2016 and after accounting for divestments.

1H2016 HIGHLIGHTSBusiness expansion initiatives to drive future growth

REITs: UNLOCKING VALUE WHILST SEEKING GROWTH ANDDIVERSIFICATION Amfirst REIT completed the acquisition of the Mydin HyperMall for RM250

million and the divestment of AmBank Group Leadership Centre for RM36million

Development of 177 Pacific Highway in North Sydney held by Suntec REIT isclose to completion and is expected to complete in August 2016

Established ARA-ShinYoung REIT No. 2 in July 2016, a new private KoreanREIT following the success of ARA-ShinYoung REIT

ARA PRIVATE FUNDS: NEW INVESTMENTS AND CAPITAL The SDF I made its second investment into a residential development in

Australia

The PIP completed its acquisition of two Australian office properties worthA$284 million.

On 1 July 2016, the CIP obtained additional capital commitment ofapproximately US$500 million, further enlarging the total capital of the fund tomore than US$1.3 billion to date

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1H2016 - GROUP AUM NET OF DIVESTMENTSAUM of ~S$30 billion; achieved S$1 billion increase in gross AUM YTD

Assets Under Management(1)(S$b) Jun 2016 Dec 2015 Change

REITs – Real Estate(2) 21.8 21.6 0.7%

Private Real Estate Funds – Real Estate 5.5 5.3 5.0%

Private Real Estate Funds – Capital(3) 1.5 1.1 39.3%

Real Estate Management Services(4) 0.9 0.9 -

Total 29.7 28.9 2.9%

Notes:

(1) Based on exchange rates as at 30 June 2016

(2) Comprises gross property value of REITs managed by subsidiaries, associates and joint venture

(3) Unutilised capital commitments including capital committed for projects pending completion

(4) Revenue base for real estate management services fee computation and gross property value of other properties under management

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0.6 3.5 5.6 6.4 9.7 11.9 13.2 17.1 20.3 22.7 25.6 25.8 28.9 29.70.6

3.55.6 6.4

9.711.9

13.2

17.1

21.0

24.0

28.8

32.4

37.5 38.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Dec 03 Dec 04 Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec-13 Dec-14 Dec-15 Jun-16

REITs - Real Estate

Private RE Funds - Real Estate

Private RE Funds - Capital

Real Estate Management Services

Total Adjusted AUM

S$b

36%

29%

18%

3%3%

3%8%

GROUP AUM UNDER MANAGEMENTBY COUNTRY

Singapore Hong KongChina MalaysiaAustralia South KoreaOthers

1H2016Total

S$29.7billion

93 properties under management across the Asia Pacific

50 million sq feet of office, retail, logistics and other assets

DIVERSIFIED ASSET MANAGEMENT PLATFORM Operational experience spanning the Asia Pacific

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22.1%

31.0%

28.5%

9.4%

5.8% 3.2%

Portfolio GFA

Singapore

China

Malaysia

Hong Kong

Australia

South Korea

1H2016Approx.49.8 m

sq ft

32.5%

32.5%

15.1%

19.9%

Portfolio GFA

Office

Retail

Logistics

Others

1H2016Approx.49.8 m

sq ft

Listing Venue SGX-ST & HKEx

SGX-ST HKEx Bursa SGX-ST HKEx Private REITs Private REITs

Listing Year 2003 2004 2005 2006 2010 2011 2007; 2010(1) 2015; 2016

Focus Suburban retail

properties in Hong Kong

Prime office & retail

properties in S’pore & Aust

Office & ind/ office

properties in Hong Kong

Commercial properties in

Malaysia

Logistics properties in

the Asia Pacific region

Commercial properties in

China

Office properties in South Korea

Residential properties in South Korea

Property Value(2) HK$36,188m S$8,846m HK$10,419m RM1,628m S$1,302m RMB40,804m KRW624,500m KRW107,000m

Description Property managementservices provider

Operations, sales and marketing services provider & consultant for convention, exhibition, meeting and

event facilities

Description Flagship strategic and opportunistic private real estate fund investing in Singapore, Hong Kong,

China, Malaysia and

other emerging

economies in Asia

2nd strategic &

opportunistic private real estate fund investing in Singapore, Hong Kong,

China, Malaysia and other emerging

economies in Asia

Core-plus private real estate fund investing in high quality office and

commercial properties

in key cities in China

Value-add private real estate fund investing in high quality office and

commercial properties primarily in Singapore and Hong

Kong

Core-plus private real estate fund investing in real estate

assets across Asia

including Australia,

Singapore,Hong Kong, China and

Japan

Separate account to manage the real estate

portfolio belonging

to The Straits Trading

Company Limited

Single-asset private real estate fund which owns the Suntec Singapore Convention & Exhibition

Centre

Private real estate fund

which owns a

portfolio of retail

properties in Malaysia

Private real estate fund established

for the redevt of Park Mall

Mandated to invest in real estate

devtsprimarily in Southeast Asia and Australia

Fund Size US$1,133m(Committed

Capital)

US$441m (Committed

Capital)

US$1,318m(3)

(Committed Capital)

US$240m(Committed

Capital)

US$325m (Committed

Capital)

S$340m(GAV)

S$668m (GAV)

RM1,773m (GAV)

S$384m (Committed

Capital)

US$80m(Committed

Capital)

Real Estate MgmtServices

Notes:(1) Two closed-end privately-held REITs with finite term of 10 years(2) As at 30 June 2016, based on publicly announced valuations. In

the case of ARA-ShinYoung REITs, value refers to estimated total development costs

(3) Received capital commitment of US$317.6 million with effect from 1 July 2015 and US$532.4 million with effect from 1 July 2016

Private Real Estate Funds

REITs ARA-NPS REITs

A RESILIENT PORTFOLIO OF FUNDS & SERVICESNine REITs and 10 private real estate funds under management

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ARA-ShinYoungREITs

1H2016

Results highlights

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1H2016 FINANCIAL HIGHLIGHTS10% growth in recurrent management fees; 7% growth in Adjusted Net Profit

Recurrent management fees as a % of total revenue at 83% in 1H2016

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61,776

67,940

58,000

60,00062,00064,000

66,00068,00070,000

1H2015 1H2016Recurrent Management Fees

S$ '000

10%

34,111

36,508

32,000

33,000

34,000

35,000

36,000

37,000

1H2015 1H2016Adjusted Net Profit

S$ '000

7%

56.7%

12.4%

14.0%

10.1%6.8%

1H2015Total

S$74.3million

53.5%

15.5%

14.2%

2.8%

13.9%REIT management fees

Portfolio management fees

Real estate managementservices

Acquisition, divestmentand performance fees

Finance income and otherincome

1H2016Total

S$81.6million

• REIT management fees of S$43.7 million driven by improved asset performance and fee contributions from new acquisitions, namelySuntec REIT’s acquisition of three floors of strata office space at Suntec Tower Two and Cache’s acquisition of three Australianproperties in the last quarter of 2015

• 38% increase in portfolio management fees to S$12.6 million arising from (i) the CIP’s acquisition of two commercial properties inChina in September and December 2015; (ii) the establishment of the Harmony III and Harmony V in August and December 2015respectively; and (iii) contribution from the PIP

• Higher real estate management fees of S$11.6 million arising mainly from higher property management fees received

• Total recurrent management fees increased 10% to S$68.0 million• Lower acquisition, divestment and performance fees as 1H2015 had included Fortune REIT’s acquisition of Laguna Plaza. Acquisition

fees received in 1H2016 were mainly in relation to AmFIRST REIT’s acquisition of Mydin HyperMall and Suntec REIT’s progressivedevelopment of 177 Pacific Highway in Australia

• Lower share of profit of associates and joint venture, net of tax as 1H2015 had included the acquisition fee recorded by Hui Xian AssetManagement Limited in relation to Hui Xian REIT’s acquisition of Metropolitan Oriental Plaza in Chongqing, China

• 7% growth in Adjusted Net Profit

Financial Highlights 1H2016 1H2015 ChangeRevenue Management fees(1) (S$’000) 67,940 61,776 10%Acquisition, divestment and performance fees(2) (S$’000) 2,318 7,529 -69%Finance income(3) (S$’000) 10,669 4,877 119%Other income (S$’000) 673 146 361%Total Revenue (S$’000) 81,600 74,328 10%Results from operating activities (S$’000) 45,618 37,907 20%Share of profit of associates and joint venture, net of tax (S$’000) 2,308 5,588 -59%Profit attributable to equity holders of the Company (S$’000) 38,678 35,412 9%Adjusted Net Profit (4) (S$’000) 36,508 34,111 7%

Notes:(1) Recurrent management fees from REIT, ARA Private Funds and real estate management services divisions(2) Primarily REIT acquisition/divestment fees and project management and consultancy fees(3) Comprises mainly distribution income, interest income, net gain on fair valuation / disposal of financial assets and net foreign exchange gain. (4) Net Profit excluding one-off adjustments comprising: (i) gain / (loss) on fair valuation / disposal of financial assets; (ii) acquisition, divestment and performance fees; (iii) bargain purchase arising from acquisition; (iv)

impairment on available for sale financial assets; (v) gain / (loss) on disposal of investments and (vi) performance-based bonuses

1H2016 FINANCIAL HIGHLIGHTS10% growth in recurrent management fees; 7% growth in Adjusted Net Profit

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Group balance sheet as at 30 June 2016S$’000 S$’000

Plant and equipment 2,590 Loan and borrowings 53,240 Intangible assets 1,218 Other payables 1,771 Associates and joint venture 15,406 Deferred tax liabilities 115 Financial assets 485,524 Deferred tax assets 703 Other receivables 4,928

Non-current assets 510,369 Non-current liabilities 55,126

Financial assets 34,882 Trade and other payables 24,861 Trade and other receivables 53,873 Loan and borrowings 25,146 Cash and cash equivalents 74,073 Current tax payable 12,945

Current assets 162,828 Current liabilities 62,952

Total liabilities 118,078

Shareholders’ equity 555,119

Total assets 673,197 Total liabilities & shareholders’ equity 673,197

1H2016 FINANCIAL HIGHLIGHTSGroup balance sheet as at 30 June 2016

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Robust balance sheet Gearing of approximately 14%

2.17 2.24 2.302.50

2.302.50

2.302.70

2.30

2.702.30

2.702.30

2.70

2.30

2.70

2.30

0.0

0.5

1.0

1.5

2.0

2.5

3.0

1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16

S cents

SUSTAINED DIVIDEND POLICY

• Sustainable dividend payout of 5.0 Singapore cents per share annually barring any unforeseen circumstances

• Based on a stock price of S$1.32 (29 July 2016), dividend yield is approximately 3.8%

1-for-5 bonus issue 1-for-10 bonus issue 1-for-10 bonus issue

Interim Dividend

FY2016 Interim Dividend (S Cents) 2.30

1H2016 EPS (S Cents) 3.88

Payout Ratio (%) 59.3%

Timeline

Ex-dividend date 8 Aug 2016

Books closure date 11 Aug 2016

Payment date 23 Aug 2016

18-for-100 rights issue

TRADING PERFORMANCEOutperformed broader market index since listing

Source : Bloomberg (as at 30 June 2016)

• With its resilient business model, ARA continues to outperform the broader

market index since listing with total return of approximately 82%

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0%

50%

100%

150%

200%

250%

300%

Nov-07 Nov-08 Nov-09 Nov-10 Nov-11 Nov-12 Nov-13 Nov-14 Nov-15

Rel

ativ

e Pr

ice

(1 N

ov 2

007

= 1

00%

) ARA FSSTI

-24%

+82%

TODAY

Regional network of strategic partnerships 

and  1,207 employees across 18 cities

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Cheung Kong 

Property Holdings

The Straits Trading Company

CalPERSTeachers Retirement System of Texas

CWT

New York State 

Common Retirement 

Fund

Am‐InvestmtGroup Berhad

Citic Bank

Anchor Investor of PIP

NPS South Korea

Strategic Partnerships

ESTABLISHED REGIONAL NETWORKExpanding regional footprint across Asia Pacific

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PROVEN LEADERSHIPExperienced team with a proven track record

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JOHN LIMGROUP CEO

NG BENG TIONG

ASSISTANT GROUP CEO CUM CEO, PRIVATE FUNDS

Suntec REIT

YEO SEE KIATCEO

Fortune REIT

CHIU YU JUSTINACEO

Prosperity REIT

MAVIS WONGCEO

Cache Logistics Trust

DANIEL CERFCEO

AmFIRST REIT

WONG KHIM CHONCEO

Hui Xian REIT

TOM CHEUNGCEO

China Desk

NG BENG TIONGCOUNTRY HEAD

ADF I / ADF II / CIP

NG BENG TIONGCEO

Harmony II (SSCEC)

SIEW SIEW HOONCEO

MIP / PIP

DAVID KIMCEO

ARA Private Funds

HAZEL CHEWCFO

ARA Private Funds

DAVID KIMHEAD, INVESTMENTS

HEAD, PORTFOLIO MGT

ARA Private Funds

SIEW SIEW HOONHEAD, ASSET MGT

ARA Private Funds

YAP CHEW FERNHEAD, LEGAL &

COMPLIANCE

APM Singapore

ANTHONY YIPDEPUTY CHAIRMAN

APM China

MUN HON PHENGCEO

APM Malaysia

JUNE LIMCEO

Suntec Singapore

ARUN MADHOKCEO

Suntec International

ARUN MADHOKCEO

REIT DivisionJOHN LIM

CEO

Private Funds Division

NG BENG TIONGCEO

ARA-NPS REIT

ANTHONY D. KANGCEO

ARA-NPS REIT 2ANTHONY D. KANG

CEO

Real Estate MgtServices Division

Corporate Divisions

Finance & Compliance

CHERYL SEOWGROUP CFO

Corporate Office

NG BENG TIONGASSISTANT GROUP

CEO

Group HR & Corp Devt

PAULINE LIMDIRECTOR

Group Risk Mgt & IA

TANG BOON KANGDIRECTOR

Group Office Admin

SERENE YEOASSISTANT DIRECTOR

Harmony III (M’sianMalls) / SIP / SDF ITHOMAS KONG,

CEO

ARA-ShinYoungREIT

ANTHONY D. KANGCEO

Harmony V (Park Mall)

DAVID TENGFUND DIRECTOR

MOSES K. SONG

ASSISTANT GROUP CEO CUM GROUP CIO

ARA Financial

LOW POH CHOOSENIOR DIRECTOR

Group Business Devt

ALVIN LOODIRECTOR

Grp Investment Office

MOSES K. SONGGRP CIO

ARA Korea

ANTHONY D. KANGCEO

ARA Australia

DAVID BLIGHTCEO

Japan Desk

MOSES K. SONGCOUNTRY HEAD

Malaysia Desk

JUNE LIMCOUNTRY HEAD

India / GCC Desk

ALVIN LOODIRECTOR

ARA-ShinYoungREIT No. 2

ANTHONY D. KANGCEO

STRATEGIES

Driving sustainable growth…

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Product Development

Capital Raising

Investment & Capital 

Management

Asset Management

Property Management

Strategic partnershipswith stakeholders

In-house Property Management subsidiary APM

Asset Management team with capabilities across various property types and geographical regions

Investment, portfolio management and fund structuring expertise

Customisedproducts to cater to investors’ needs

Country DesksARA Private FundsREITs

DRIVING SUSTAINABLE GROWTHIntegrated business model

Inherent capabilities to… …maximise value across the value chain

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• Track record of establishing, listing and managing listed REITs with 12% market share of the key Singapore and Hong Kong REIT markets

REAL ESTATE INVESTMENT TRUSTSStrong Multi-product, Multi-jurisdiction REIT Platform

REIT Development  REIT Management

Investment and Capital Management

Asset and Property Management

In‐house Property ManagementDiversify

Public Listed Private

Bespoke solutions

Acquire & Grow AUM AEI

Value Creation

Growth via new REITs, and acquisitions for existing REITs

Value creation through proactive asset management initiatives

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• Investor-cum-operator philosophy

ARA PRIVATE FUNDSExpanding Suite of Private Real Estate Funds

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Capital Raising and Platform Development  Private Real Estate Funds Management

Investment and Capital Management

Asset and Property Management

In‐house Property Management

Capital Structuring

ARA Asia Dragon Funds

ARA Investment Partners

Acquisitions Repositioning and AEI

ARA Harmony Funds Development Funds

Pan-Asian opportunistic “blind pool” funds

Separate accounts for select investors

Single-asset or portfolio club deals

Pan-Asian development funds

Extensive Industry Relationships

Divestments Property Development

Strategic Partnerships

Value Creation

Growth via capital raising and platform development

Value creation through proactive asset management initiatives

New Product Development

Country Desks (China, Korea, Australia)

Onshore Products

Onshore Capital

Raising capital

onshore

Australia

South KoreaChina

Hong Kong

SingaporeDeploy capital for

outbound investments

Deploy capital

onshore

COUNTRY DESKSScaling the Business Model

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Replicate ARA’s business model:ARA China, ARA Korea, ARA Australia 

Target raise of onshore capital to deploy onshore or offshore

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Office35%

Retail43%

Industrial 1%

Hospitality10%

Others11%

Over 22 million sq ft of AEI work completed successfully for our properties in different countries and asset classes

Information provided as at 31 December 2015

Singapore19%

China54%

Malaysia16%

Hong Kong10%

South Korea1%

Before AEI

After AEI

Total GFA 22 msq ft

Total GFA 22 m sq ft

Strategic Differentiator: Value-Adding to our Assets Asset Enhancement Capabilities of our Real Estate Management Services Division

VISION

To be the premier real estate fund manager 

in Asia

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Thank You

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DISCLAIMER

These slides may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes andresults may differ materially from those expressed in forward-looking statements as a result of a number of uncertainties, risks andassumptions. Representative examples of these factors include but are not limited to general market and economic conditions, interestrate trends, competition from other real estate investors, changes in operating expenses including employee wages and benefits,changes in government policies, and the continued availability of financing in the amounts and terms necessary to support futurebusiness. You are cautioned not to place undue reliance on the forward-looking statements in these slides, which are based on thecurrent view of management on future events. Information from external sources in these slides has not been independently verified byus nor have the external sources quoted consented to the inclusion of the information.

Global Headquarters:6 Temasek BoulevardSuntec Tower Four, #16-02Singapore 038986

Tel: (65) 6835 9232Fax: (65) 6835 9672

Website: www.ara-asia.com

ContactCheryl SeowGroup Chief Financial OfficerGroup Financecherylseow@ara.com.hk

Marilyn TanAssistant DirectorGroup Financemarilyntan@ara.com.hk

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