cpn retail growth leasehold...

CPN Retail Growth Leasehold REIT

Investor Presentation FY2018

February 2019

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.

Prepared by Investor Relations, CPN REIT Management Co., Ltd.

Disclaimer

Agenda

CPNREIT Overview


Agenda

Business Updates

Key Financial Highlights

CPNREIT Overview

CPNREIT 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


Establishment and investment track record

Office Buildings

2

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


Top-class assets at prime locations

CPNREIT 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


Solid operating performance track record

Note: Asset information as of December 31, 2018

CPNREIT 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


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

CPNREIT 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


Consistently high distribution yields

1.617

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

CPNREIT 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)


Why invest in CPNREIT?

Business Updates

Business UpdatesPrepared by Investor Relations, CPN REIT Management Co., Ltd.

Grand opening @ CentralPlaza Rama 3

Concept : “Where Nature Meets

Urban Living”

Date : 9 August 2018


Grand opening @ CentralPlaza Rama 3

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


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.


Key Financial Highlights

Financial 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)


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%


% 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


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

Financial 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


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

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


Q&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

@ [email protected]

http://www.cpnreit.com


End of presentation

Appendices

Appendices

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


CPNREIT transparent management structure

Property Management

Services

Appendice

Unitholders

REIT Manager

Property Manager

HotelManager

HiltonPattaya


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


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

Appendice

Unitholders

REIT Manager

HotelManager

HiltonPattaya

5 Shopping Centers & 2

Office Buildings


Trustee

REIT and its underlying assets are managed by professional leaders in the industry

SubleaseAgreement


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

Appendices

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


31 Dec 2024

Leasehold

tenure of 15

years ending22 Apr 2044

Leasehold

tenure of


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


Asset information

cpn retail growth leasehold...

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