Frasers Property Thailand Industrial Freehold & Leasehold REIT

3QFY19 Results Presentation

14 August 2019

FPIT Bangplee 1, Samutprakarn

2

Important noticeThis presentation is for information purposes only and does not constitute or form part of an offer, solicitation, recommendation or invitation for the sale or purchase

or subscription of securities, including units in Frasers Property Thailand Industrial Freehold & Leasehold REIT (“FTREIT”, and the units in FTREIT, the “Units”) or

any other securities of FTREIT. No part of it nor the fact of its presentation shall form the basis of or be relied upon connection with any investment decision,

contract or commitment whatsoever. The past performance of FTREIT and Frasers Property Industrial REIT Management (Thailand) Company Limited, as the

REIT manger of FTREIT (the “Manager”), is not necessarily indicative of the future performance of FTREIT and the Manager.

This presentation may contains “forward-looking statements”, including forward-looking financial information, that involve assumptions, known and unknown risks,

uncertainties and other factors which may cause the actual results, performance, outcomes or achievements of FTREIT or the Manger, or industry results, to be

materially different from those expressed in such forward-looking statements and financial information. Such forward-looking statements and financial information

are based on certain assumptions and expectations of future events regarding FTREIT’s present and future business strategies and the environment in which

FTREIT will operate. The Manager does not guarantee that these assumptions and expectations are accurate or will be realized. The Manager does not assume

any responsibilities to amend, modify or revise any forward-looking statement, on the basis of any subsequent developments, information or events, or otherwise,

subject to compliance with all applicable laws and regulations and/or the rules of the Securities and Exchange Commission, Thailand (“SEC”) and the Stock

Exchange of Thailand (“SET”) and/or any other regulatory or supervisory body or agency

The information and opinions in this presentation are subject to change without notice, its accuracy is not guaranteed and it may not contain all material information

concerning FTREIT. None of FPT, FTREIT, the Manager, or any of their respective holding companies, subsidiaries, affiliates, associated undertaking or controlling

persons, or any of their respective directors, officers, partners, employees, agents, representatives, advisers or legal advisers makes any representation or

warranty, express or implied, as to the accuracy, completeness or correctness of the information contained in this presentation or otherwise made available or as to

the reasonableness of any assumption contained herein or therein, and any liability whatsoever (in negligence or otherwise) for any loss howsoever arising,

whether directly or indirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in connection with this presentation is

expressly disclaimed. Further, nothing in this presentation should be construed as constitution legal, business, tax or financial advice.

The value of Units and the income derived from them, if any, may fall or rise. Unit are not obligations of deposits of, deposits in, or guaranteed by, the Manager or

any of its affiliates. An investment in the Units is subject to investment risks, including the possible loss of the principal amount invested. Investors should note that

they have no right to request the Manager to redeem their Units are listed. It is intended that holders of Units may only deal in their Units through trading on SET.

Listing of the Units on the SET does not guarantee a liquid market for the Units.

Please study relevant information carefully before making any investment decision. Investors are encouraged to make an investment only when such decision

correspond with their own objective and only after they have acknowledged all risks and have been informed that the returns may be more or less than initial sum.

3

Content

▪ 3QFY19 Highlight

▪ Financial Review

▪ Portfolio Overview

▪ REIT Strategy and Objective

3QFY19 Highlights

FPIT BangnaFPT Properties Chonburi

5

3QFY19 Highlights

82.0%Occupancy Rate

22.97%Aggregate Leverage

DPU

from 3QFY19

performance

• High Occupancy rate at 82.0%

• Weighted average lease expiry at around 2.18 years(3)

• 123,466 sq m of forward renewals, representing 7.6% of

portfolio net leasable area, renewal rate is around 81%

• Reversion rate is around +1.73%(4)

❖ Portfolio Management

❖ Financial Performance

❖ Capital Management

• Higher net investment income of THB 446 Million for

3QFY19, up 11.7% from THB 399 Million a year ago

• Healthy balance sheet with gearing of 22.97%(1) and 87% of

borrowings were at fixed rate as at 30 June 2019

• Weighted average cost of debt is around 3.3%(2)

• Weighted average debt maturity is around 3.78(2) Years

❖ Distribution for period 3QFY19• DPU THB 0.1670 per unit for 3QFY2019

THB 0.1670

(1) Gearing ratio = IBD/TAV as of 30 June 2019

(2) Only Debentures cost = 3.35% WAM is around 4.32 Years

(3) By Gross Rental income

(4) Retention and reversion that incurred in 3QFY2019

Financial review

FPT Properties Chonburi

7

Financial Performance Quarter ended 30 June 2019

Unit: (THB Million)Apr’19 – Jun’19

(3QFY19)

Apr’18 – Jun’18

(2QFY18)(1)

Change

%Remarks

Revenue 694.5 665.4 4

• Contribution from the FY2018/2019 Sponsor asset acquisition

value THB 3,600 Million and the third party asset acquisition

value THB 90 Million.

Cost of rental and

Operating Expense84.7(6) 142.2(6) (40)

• Cost of rental and operating expense in Apr’18 – Jun’18 was

higher than Apr’19 – Jun’19 came from property tax for period

1QFY18 (Jan – Mar’18) which recorded in 2QFY18 (Apr –

Jun’18) since FTREIT required tenants paid property tax via

trust.

Trust Management fee 85.9 77.4 11 • Additional trust management fee came from new assets.

Finance Costs 70.6 39.7 78

• Higher borrowing drawn to finance acquisition in FY2018 and

FY2019.

• The weighted average interest rate for 3QFY2019 was 3.25%

per annum and Weighted average debt maturity is around 3.78

years

Net Investment Income 446.3 399.2 12 • Came from better performance in period

Net Investment Income

+ Net realized gain(5)

+ Net unrealized gain

447.6 404.5 11

• The fair value adjustments made based on independent

valuations for the expansion area 1,700 sq m of factory which

located at Amata City Rayong; and

• No divestment asset in 3QFY2019 when compare to 2QFY18

Distributable income to

Unitholders(2) 447.7 404.5(4) 11

• Contributions from the FY2018 and FY2019 acquisition

deducted by:

• Higher finance costs; and

• Higher trust management fee

DPU

(THB per Unit)0.1670 0.1600(3) 4.4

• Higher distribution per unit came from better performance of

3QFY2019 compared to 2QFY2018

(1) FY2019 period start from 1 October 2018 to 30 September 2019, FY2018 start from 1 January 2018 to 30 September 2018.

(2) Distributable income to unitholders = Net investment income adjusted by non cash item

(3) Included capital reduction

(4) DPU of 2QFY18, FTREIT paid from retained earning and capital reduction.

Overall performance 3QFY19 is better than performance in the same period of last year

(5) In 2QFY18 (Apr’18 – Jun’18), FTREIT divested factory 1 at Pinthong Industrial Estate.

(6) Property tax of 1QFY18 and some portion of FY2017 recorded in 2QFY18 was around THB 40 Million.

8

Financial Performance 1 October 2018 – 30 June 2019

Unit: (THB Million) Oct’18–Jun’19 Oct’17–Jun’18(1)Change

%Remarks

Revenue 2,089.2 1,496.6 40 • Contribution from 3PFPO’s assets which transfer to FTREIT on

Dec’18

• Contribution from the FY2018/2019 Sponsor asset acquisition

value THB 3,600 Million and the third party asset acquisition

value THB 90 Million.

Cost of rental and

Operating Expense269.2 245.7 10

Trust Management fee 264.6 196.9 34 • Additional trust management fee came from new assets.

Finance Costs 197.5 98.8 100

• Higher borrowing drawn to finance PFPOs assets and

acquisition in FY2018 and FY2019.

• The weighted average interest rate for 3QFY2019 was 3.25%

per annum and Weighted average debt maturity is around 3.78

years

Net Investment Income 1,334.8 937.4 42• Came from contribution from new assets and better performance

in period

Net Investment Income

+ Net realized gain(5)

- Net unrealized losses(6)

1,429.2 850.1 68• Contribution from conversion assets and acquisition in FY2018

and FY2019.

Distributable income to

Unitholders(2) 1,386.5 942.8(4) 47

• Contributions from the PFPO assets and FY2018 and FY2019

acquisition

deducted by:

• Higher finance costs; and

• Higher trust management fee

DPU

(THB per Unit)0.5010 0.4781(3) 4.8

• Higher distribution per unit came from better performance of

3QFY2019 compared to 2QFY2018

(1) FY2019 period start from 1 October 2018 to 30 September 2019, FY2018 start from 1 January 2018 to 30 September 2018.

(2) Distributable income to unitholders = Net investment income adjusted by non cash item.

(3) DPU Oct’17 performance was THB 0.0481 per unit, Dividend + Capital reduction of Nov’17 – Jun’18 = 0.4300.

(4) For period Oct’17 to 20 Dec’17 is period before conversion thus dividend is for only FTREIT unitholders and period from 21 December 2017 to 30 June 2018 is dividend for unitholders after conversion

(5) In 2QFY18 (Apr’18 – Jun’18), FTREIT divested factory 1 at Pinthong Industrial Estate. (6) Net Unrealized losses from revaluation in period.

Information in Income Statement for period Oct’17 – Dec’17 was performance before converted 3PFPO into FTREIT

▪ In line with SEC regulations, FTREIT’s policy is to distribute at least 90% of adjusted net investment income

▪ Distributions will be made on a quarterly basis or every calendar quarter. The actual level of distribution above

90% is to be determined by Board of Directors of REIT manager.

0.1600

0.1670

2QFY18 3QFY19

Distribution 3QFY19

Unit : THB per Unit

1. Distribution = Dividend + Capital Reduction2. FY2019 period start from 1 October 2018 to 30 September 2019, FY2018 start from 1 January 2018 to 30 September 2018. 9

▪ The higher DPU of THB 0.5010 by 4.8% as compared to THB 0.4781 for 9 months (Oct’17 – Jun’18), and

higher DPU of THB 0.1670 by 4.4% as compared to THB 0.1600 for 2QFY18 (Apr’18 – Jun’18) was mainly to

contribution from new assets.

▪ Expected distribution date is 12 September 2019

Distribution per Units(2)

0.47810.5010

Oct'17 - Jun'18 Oct'18 - Jun'199 Months 9 Months

Distribution Policy

(1) (1)

Balance Sheet

10

Unit: (THB Million) As of 30 Jun 19 As of 30 Sep 18 Change %

Investment Properties 35,737.1 33,987.4 5

Investment in Securities at fair value and cash 1,136.7 1,137.9 -

Other Assets 304.3 307.9 (1)

Total Assets 37,178.1 35,433.3 5

Interest Bearing Debt 8,540.0 6,933.0 23

Other liabilities 1,132.5 1,138.3 (1)

Total Liabilities 9,672.5 8,071.3 20

Net Asset Value per Unit (THB) 10.5693 10.5141 1

▪ The value of investment properties increased 5% from THB 33,987 Million as at 30 September 2018 to THB 35,737 Million

at 30 June 2019, due mainly to:

✓ Completion of the FY2019 Sponsor asset acquisition on 19 December 2018;

✓ Completion of expansion net leasable area and fair value adjustment on factory at Amata City Rayong;

Deducted Divestment in period

✓ Completion of 1 unit of factory at Amata City Chonburi on 1 November 2018

✓ Completion of 1 unit of warehouse at Rojana Industrial Park Prachinburi on 26 November 2018

▪ Interest bearing debt increased THB 1,607 Million came from short term loan for asset acquisition in period(1).

1. FTREIT borrow short term loan THB 1,907 Million and repaid loan THB 300 Million by using cash from divestment properties.

1,100

800

2,100

1,300

1,000

380

1,260

600

FY2019 FY2020 FY2021 FY2022 FY2024 FY2025 FY2028 FY2029

11

Capital Management

As at 30 June 2019

Leverage ratio (5) 22.97%

Total Gross Borrowings THB 8,540 million

Weighted Average Cost of Borrowings ~3.3%

Average Weighted Debt Maturity 3.78 Years

Interest Rate Exposure Fixed 87%

Interest Coverage Ratio for 3QFY19/9MFY19 7.42 times/ 7.85 times/1

Credit Rating A (Stable Outlook)/2

Debt Maturity Profile/3

Bridging Loan Debentures

Interest Fixed/Float

87%

13%Unit: THB Million

Fixed Float1. Interest Coverage ratio = EBITDA (excluded gain from divestment)/Interest Expense.

2. Official announcement rating by TRIS on 3 May 2019.

3. Fiscal year ending 30 September.

4. Refinanced by debentures on Aug’19.

5. IBD/total asset Value

(4)

Portfolio Overview

FPIT Bangna

Freehold 73%

Leasehold 27%

Factory48%

Warehouse 52%

13

FTREIT Portfolio Snapshot as of 30 June 2019

Quality portfolio

concentrated

within major

industrial and

logistics markets

547Properties/1

WALE/42.18 Yrs

~THB 35.7 bn Portfolio Value/2

Avg Property Ages/5

10 Years

~1.63 million sq m

Net Leasable Area/3

Occupancy Rate

82.0%

Frasers Property Thailand Industrial Freehold & Leasehold REITFTREIT listed real-estate investment trust with a quality portfolio concentrated within prime

industrial and logistics market in Thailand.

Remaining LH Years

~ 25.3 YearsNo of Tenants

266

Geographically

diversified, Type

of assets and

predominantly

freehold or long

leasehold

North 26%

East 14%

EEC 60%

Type

of Assets

Breakdown

By Area

1. Factory 315 units and Warehouse 232 units

2. Value of Factory THB 19,221 million (54%) and value of warehouse THB 16,515 million (46%)3. Area of Factory 789,660 sq.m (48%) and area of warehouse 840,611 sq.m (52%) – total 1,630,271 sq.m

4. WALE refers to the weighted average lease expiry based on gross rental income (GRI), being the

contracted rental income and estimated recoverable outgoings for the month of June 2019.

Excludes straight lining rental adjustments.

5. Factory avg ages around 12 years and Warehouse around ages 7 years

The Largest

Industrial & Logistics REIT

in Thailand

Breakdown

By Right on

assets

14

Occupancy rate by area as of Jun’19

OCR

%

Mar’19

WALE

Jun’19

Weighted average by GRI

Renewal

Rate 81.0%

Northern Bangkok Area/1 Eastern Bangkok Area /1 EEC Area /1

OCR% Trend OCR% Trend OCR% Trend

▪ Overall occupancy rate decreased mainly due

to logistics providers were not continue lease

warehouse since they have completed project

with their customers.

▪ Eastern Bangkok is the location hub for Logistics.

This area is the best performance of TREIT.

▪ Most of logistics and E-Commerce choose to

settle their business in this location.

▪ Fully occupied 100%

▪ Overall tenants looking for factories and

warehouses in EEC area due to tax benefit from

government.

▪ Performance increased from Automotive and

logistics tenants .

67% 67% 68% 69%77%

75%69%

0%

20%

40%

60%

80%

100%

2017 Mar'18 Jun'18 Sep'18 Dec'18 Mar'19 Jun'19

Total Unit = 151 Units Total Unit = 59 Units

88%92% 92% 96% 99% 100%

0%

20%

40%

60%

80%

100%

2017 Mar'18 Jun'18 Sep'18 Dec'18 Mar'19 Jun'19

Total Unit = 337 Units

81% 82% 80% 80%84% 82% 83%

0%

20%

40%

60%

80%

100%

2017 Mar'18 Jun'18 Sep'18 Dec'18 Mar'19 Jun'19

(-0.9%)

[Apr’19 – Jun’19]

FTREIT maintain high OCR at average 82% with WALE around 2 Years

100%

1. Northern Bangkok area = Ayutthaya and Pathumthani, Eastern Bangkok = Samutprakarn and Prachinburi, EEC area = Chonburi, Rayong and Chachoengsao

82.9% 2.18YReversion

Rate+1.73%

[Apr’19 – Jun’19]

Jun’19

82.0%

Mar’19

2.06Y

Tenants Industry % of GRI(1) Nationality

Siam Makro Retail 4.6%

Leschaco Logistics 2.65%

Lazada E-Commerce 1.99%

BJC

LogisticsLogistics 1.94%

DTS Automotive 1.57%

Kintetsu Logistics 1.48%

Samsung Electronics 1.42%

DHL Logistics 1.41%

Denso Automotive 1.40%

Mitsubishi Automotive 1.24%

15

Well-diversified Tenant BaseHigh quality, diversified tenant base underpinned by primary industries including Automotive, logistics

services, electronics, retails and e-commerce.

Top 10 Tenants (GRI 20%(2) / WALE 3.15Years(1)) Breakdown of Tenants1 2

By

Industry

Automotive

28%

Logistics

22%

Electronics

23%

Others

16%

Retails 8%

E-Commerce 3%

By

NationalityJapan

47%

EU 20%

Thais 15%

Other

Asian 13%

US 4%Other 1%

1. WALE refers to the weighted average lease expiry based on gross rental income (GRI), being the contracted rental income and

estimated recoverable outgoings for the month of June 2019. Excludes straight lining rental adjustments.

2. Concentration risk has stable at around 20%.

16

Key Summary for 9MFY19 (Oct’18 – Jun’19)

THB 1,387 million/1

Distributable Income

1. Distributable income = adjusted net investment income.

2. Divested 1 factory at Amata City Chonburi and 1 Warehouse at Rojana Industrial Park Prachinburi.

3. As of 30 June 2019

82%/2.18 Yrs/3

Occupancy and WALE

Higher occupancy rate

THB 1,947 million

Investment in period

Portfolio value increased to

approximately THB 36 bn

THB 275 million

Divestment value

At significant premium to

book value/2

3.78 Years

Weighted Avg Debt

Maturity

87%

Proportion of Fixed

Debt

[As of 30 June 2019] [As of 30 June 2019]

22.97%

Aggregate leverage

[As of 30 June 2019]

Retention/Reversion

79%/+1.20%[Oct’18 – Jun’19]

17

Proposed Acquisition of Sponsor Properties in 4QFY19

FPIT Properties29,850 sqm

22,500 sqm 4,900 sqm

2,450 sqm

LCB2 Unit W3/1 – W3/3 Sriracha Unit W2/3

Sriracha Unit W2/1 – W2/2

LCB IE Unit B1.9 6 prime logistics properties located in key logistics hubs

and centralized in industrial estate

100% Freehold portfolio(1)

Net Leasable Area (“NLA”): 29,850 sqm

100% occupancy Rate

3.6 Years Weighted Average Lease Expiry (“WALE”)/(2)

Property age: Average 6.2 Years/(3)

Note: Use property information as of 30 June 2019

(1) Freehold on land and building

(2) WALE refers to the weighted average lease expiry based on gross rental income (GRI), being the contracted rental

income and estimated recoverable outgoings for the month of June 2019. Excludes straight lining rental adjustments.,

(3) Based on Property document and weighted from NLA of each asset.

(4) Excluding transfer fee, advisor fee and other transaction cost

19 July 2019: Announced the proposed acquisition of 6

prime logistics properties at a purchase consideration not

over than THB 637 Million(4).

Subsequent Event

6 Units

Target transfer properties within Sep’19

FTREIT Strategy

19

Principal Objective and Strategy

Active Asset

Management

Active Asset

Management

Strategies to support the Principal Objective

1

Investment

Growth

2

▪ Proactive leasing: Maintain high retention rate,

occupancy rate, and well- diversified tenant base.

▪ Asset Enhancement Initiative (AEI): Assess and

undertake AEI on the FTREIT portfolio to unlock

further value.

▪ ROFR/1 for industrial properties from FPT’s Sponsor.

▪ Third-party asset acquisition.

1. Right of first refusal

Capital

Management

3

▪ Optimize capital mix and prudent capital

management.

▪ Manage schedule of debt repayment matching with

asset portfolio performance

Deliver

Consistent

growth and

sustainable

distributions to

unitholders