Quill C

apita Trust

Annual R

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13

Quill Capita Management Sdn Bhd (Company No. 737252-X)(the Manager of Quill Capita Trust)

9-1, Wisma Mont’ Kiara,No. 1, Jalan Kiara,Mont’ Kiara,50480 Kuala Lumpur.Tel : 03 - 2788 8188Fax : 03 - 2788 8189 / 99

www.qct.com.my

annual reportannual report

20132013

Table of contentsCorporate InformationPortfolio OverviewFinancial HighlightsChairman’s Statement2013 Achievements – At a GlanceCorporate Highlights & EventsIn The NewsProfile of Directors of The ManagerThe Management TeamCorporate GovernanceStatement on Risk Management and Internal ControlStatement on Directors’ ResponsibilityThe Manager’s ReportStatement by Manager & Statutory DeclarationTrustee’s ReportIndependent Auditor’s ReportStatement of Comprehensive IncomeStatement of Financial PositionStatement of Changes In Net Asset ValueStatement of Cash FlowsNotes To The Financial StatementsUnitholdings and 30 Largest Unitholders As At 31 December 2013Notice of Second Annual General MeetingProxy Form

020414152021232935375255567879808183858687

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MANAGER

Quill Capita Management Sdn. Bhd.(Company No. 737252-X)(Incorporated in Malaysia)

REGISTERED ADDRESS OF THE MANAGER

Level 7, Quill 9112, Jalan Semangat46300 Petaling JayaSelangor Darul Ehsan Telephone No. : 603-7947 6333Facsimile No. : 603-7947 8363

PRINCIPAL PLACE OF BUSINESS

9-1, Wisma Mont’ Kiara1, Jalan Kiara, Mont’ Kiara50480 Kuala Lumpur, MalaysiaTelephone No. : 603-2788 8188Facsimile No. : 603-2788 8189/8199

BOARD OF DIRECTORS OF THE MANAGER

Dato' Mohammed Hussein bin Haji Che HusseinDato' Dr. Jennifer Low Moi Ling, J.P.Dato' Michael Ong Leng ChunWen Khai MengChong Lit Cheong Datuk Dr. Mohamed Arif bin NunYap Kim SweeFoong Soo HahAw Hong Boo (alternate to Dato' Dr. Jennifer Low Moi Ling, J.P.)

SECRETARY OF THE MANAGER

Dato’ Lee Fong Yong (MAICSA No: 7005956)Kan Loke Mooi (MAICSA No. 0872717)

BANKERS

Malayan Banking Berhad

STOCK EXCHANGE LISTING

Main Market of Bursa Malaysia Securities Berhad

WEBSITE

www.qct.com.my

TRUSTEE

Maybank Trustees Berhad 8th Floor, Menara Maybank100, Jalan Tun Perak 50050 Kuala Lumpur, Malaysia Telephone No. : 603-2078 8363Facsimile No. : 603-2070 9387

PROPERTY MANAGER

Knight Frank Malaysia Sdn. Bhd.Suite 9.01, 9th FloorMenara IGB, Mid Valley CityLingkaran Syed Putra59200 Kuala Lumpur, MalaysiaTelephone No. : 603-2289 9688Facsimile No. : 603-2289 9788

REGISTRAR

Symphony Share Registrars Sdn. Bhd.Level 6, Symphony HousePusat Dagangan Dana 1Jalan PJU 1A/4647301 Petaling JayaSelangor Darul Ehsan, MalaysiaTelephone No. : 603-7841 8000Facsimile No. : 603-7841 8151

AUDITOR

Ernst & YoungLevel 23A, Menara MileniumJalan DamanlelaPusat Bandar Damansara50490 Kuala Lumpur, MalaysiaTelephone No. : 603-7495 8000Facsimile No. : 603-2095 5332

TAX AGENT

KPMG Tax Services Sdn. Bhd.Level 10, KPMG Tower8, First AvenueBandar Utama47800 Petaling JayaSelangor Darul Ehsan, MalaysiaTelephone No. : 603-7721 3388Facsimile No. : 603-7721 7288

INTERNAL AUDITOR

BDO Governance Advisory Sdn. Bhd.12th Floor, Menara Uni.Asia1008, Jalan Sultan Ismail50250 Kuala Lumpur, MalaysiaTelephone No. : 603-2616 2888Facsimile No. : 603-2616 2829

Corporate Information

Quill C

apita Trust

Annual R

eport 2013

3

MANAGER

Quill Capita Management Sdn. Bhd.(Company No. 737252-X)(Incorporated in Malaysia)

REGISTERED ADDRESS OF THE MANAGER

Level 7, Quill 9112, Jalan Semangat46300 Petaling JayaSelangor Darul Ehsan Telephone No. : 603-7947 6333Facsimile No. : 603-7947 8363

PRINCIPAL PLACE OF BUSINESS

9-1, Wisma Mont’ Kiara1, Jalan Kiara, Mont’ Kiara50480 Kuala Lumpur, MalaysiaTelephone No. : 603-2788 8188Facsimile No. : 603-2788 8189/8199

BOARD OF DIRECTORS OF THE MANAGER

Dato' Mohammed Hussein bin Haji Che HusseinDato' Dr. Jennifer Low Moi Ling, J.P.Dato' Michael Ong Leng ChunWen Khai MengChong Lit Cheong Datuk Dr. Mohamed Arif bin NunYap Kim SweeFoong Soo HahAw Hong Boo (alternate to Dato' Dr. Jennifer Low Moi Ling, J.P.)

SECRETARY OF THE MANAGER

Dato’ Lee Fong Yong (MAICSA No: 7005956)Kan Loke Mooi (MAICSA No. 0872717)

BANKERS

Malayan Banking Berhad

STOCK EXCHANGE LISTING

Main Market of Bursa Malaysia Securities Berhad

WEBSITE

www.qct.com.my

TRUSTEE

Maybank Trustees Berhad 8th Floor, Menara Maybank100, Jalan Tun Perak 50050 Kuala Lumpur, Malaysia Telephone No. : 603-2078 8363Facsimile No. : 603-2070 9387

PROPERTY MANAGER

Knight Frank Malaysia Sdn. Bhd.Suite 9.01, 9th FloorMenara IGB, Mid Valley CityLingkaran Syed Putra59200 Kuala Lumpur, MalaysiaTelephone No. : 603-2289 9688Facsimile No. : 603-2289 9788

REGISTRAR

Symphony Share Registrars Sdn. Bhd.Level 6, Symphony HousePusat Dagangan Dana 1Jalan PJU 1A/4647301 Petaling JayaSelangor Darul Ehsan, MalaysiaTelephone No. : 603-7841 8000Facsimile No. : 603-7841 8151

AUDITOR

Ernst & YoungLevel 23A, Menara MileniumJalan DamanlelaPusat Bandar Damansara50490 Kuala Lumpur, MalaysiaTelephone No. : 603-7495 8000Facsimile No. : 603-2095 5332

TAX AGENT

KPMG Tax Services Sdn. Bhd.Level 10, KPMG Tower8, First AvenueBandar Utama47800 Petaling JayaSelangor Darul Ehsan, MalaysiaTelephone No. : 603-7721 3388Facsimile No. : 603-7721 7288

INTERNAL AUDITOR

BDO Governance Advisory Sdn. Bhd.12th Floor, Menara Uni.Asia1008, Jalan Sultan Ismail50250 Kuala Lumpur, MalaysiaTelephone No. : 603-2616 2888Facsimile No. : 603-2616 2829

Corporate Informationcont’d

Quill C

apita Trust

Annual R

eport 2013

4

QU

ILL

BUIL

DIN

G 1

– D

HL 1

QU

ILL

BUIL

DIN

G 4

– D

HL 2

As at 31 December 2013, QCT’s portfolio comprised of 10 properties. The details are as follows:

3509 & 3511, Jalan Teknokrat 563000 Cyberjaya, Selangor Darul Ehsan

Commercial Building

4-storey office building together with a sub-basement and a basement car park

Term in Perpetuity

20 November 2006

92,284 sq ft

RM52,100,000

RM125,000,000*

100%

Address / Location

Property Type

Description

Tenure

Date of Acquisition

Net Lettable Area

Purchase Price

Market Value*

Occupancy Rate

* On 14 August 2008, the respective pieces of land on which Quill Building 1 – DHL 1 and Quill Building 4 – DHL 2 are situated have been amalgamated pursuant to the condition imposed by the Securities Commission during the initial Public Offering of QCT. As such, the valuations of Quill Building 1 – DHL 1 and Quill Building 4 – DHL 2 have been carried out based on the amalgamated properties. The total valuation of the 2 properties amounted to RM125,000,000

3509 & 3511, Jalan Teknokrat 563000 Cyberjaya, Selangor Darul Ehsan

Commercial Building

4-storey office building together with a sub-basement and a basement car park

Term in Perpetuity

20 November 2006

99,183 sq ft

RM57,000,000

RM125,000,000*

100%

Address / Location

Property Type

Description

Tenure

Date of Acquisition

Net Lettable Area

Purchase Price

Market Value*

Occupancy Rate

* On 14 August 2008, the respective pieces of land on which Quill Building 1 – DHL 1 and Quill Building 4 – DHL 2 are situated have been amalgamated pursuant to the condition imposed by the Securities Commission during the initial Public Offering of QCT. As such, the valuations of Quill Building 1 – DHL 1 and Quill Building 4 – DHL 2 have been carried out based on the amalgamated properties. The total valuation of the 2 properties amounted to RM125,000,000

Portfolio Overview

Quill C

apita Trust

Annual R

eport 2013

5

QU

ILL

BUIL

DIN

G 1

– D

HL 1

QU

ILL

BUIL

DIN

G 4

– D

HL 2

As at 31 December 2013, QCT’s portfolio comprised of 10 properties. The details are as follows:

3509 & 3511, Jalan Teknokrat 563000 Cyberjaya, Selangor Darul Ehsan

Commercial Building

4-storey office building together with a sub-basement and a basement car park

Term in Perpetuity

20 November 2006

92,284 sq ft

RM52,100,000

RM125,000,000*

100%

Address / Location

Property Type

Description

Tenure

Date of Acquisition

Net Lettable Area

Purchase Price

Market Value*

Occupancy Rate

* On 14 August 2008, the respective pieces of land on which Quill Building 1 – DHL 1 and Quill Building 4 – DHL 2 are situated have been amalgamated pursuant to the condition imposed by the Securities Commission during the initial Public Offering of QCT. As such, the valuations of Quill Building 1 – DHL 1 and Quill Building 4 – DHL 2 have been carried out based on the amalgamated properties. The total valuation of the 2 properties amounted to RM125,000,000

3509 & 3511, Jalan Teknokrat 563000 Cyberjaya, Selangor Darul Ehsan

Commercial Building

4-storey office building together with a sub-basement and a basement car park

Term in Perpetuity

20 November 2006

99,183 sq ft

RM57,000,000

RM125,000,000*

100%

Address / Location

Property Type

Description

Tenure

Date of Acquisition

Net Lettable Area

Purchase Price

Market Value*

Occupancy Rate

* On 14 August 2008, the respective pieces of land on which Quill Building 1 – DHL 1 and Quill Building 4 – DHL 2 are situated have been amalgamated pursuant to the condition imposed by the Securities Commission during the initial Public Offering of QCT. As such, the valuations of Quill Building 1 – DHL 1 and Quill Building 4 – DHL 2 have been carried out based on the amalgamated properties. The total valuation of the 2 properties amounted to RM125,000,000

Portfolio Overviewcont’d

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apita Trust

Annual R

eport 2013

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QU

ILL

BUIL

DIN

G 2

– HS

BC

QU

ILL

BUIL

DIN

G 3

- BM

W

3500, Jalan Teknokrat 363000 Cyberjaya, Selangor Darul Ehsan

Commercial Building

4-storey office building together with a sub-basement car park

Term in Perpetuity

20 November 2006

184,453 sq ft

RM107,500,000

RM119,000,000

100%

Address / Location

Property Type

Description

Tenure

Date of Acquisition

Net Lettable Area

Purchase Price

Market Value

Occupancy Rate

3501, Jalan Teknokrat 563000 Cyberjaya, Selangor Darul Ehsan

Commercial Building

4-storey office building together with a level of sub-basement and a level of basement car park

Term in Perpetuity

20 November 2006

117,198 sq ft

RM59,400,000

RM73,060,000 82%

Address / Location

Property Type

Description

Tenure

Date of Acquisition

Net Lettable Area

Purchase Price

Market Value

Occupancy Rate

Portfolio Overviewcont’d

Quill C

apita Trust

Annual R

eport 2013

7

QU

ILL

BUIL

DIN

G 2

– HS

BC

QU

ILL

BUIL

DIN

G 3

- BM

W

3500, Jalan Teknokrat 363000 Cyberjaya, Selangor Darul Ehsan

Commercial Building

4-storey office building together with a sub-basement car park

Term in Perpetuity

20 November 2006

184,453 sq ft

RM107,500,000

RM119,000,000

100%

Address / Location

Property Type

Description

Tenure

Date of Acquisition

Net Lettable Area

Purchase Price

Market Value

Occupancy Rate

3501, Jalan Teknokrat 563000 Cyberjaya, Selangor Darul Ehsan

Commercial Building

4-storey office building together with a level of sub-basement and a level of basement car park

Term in Perpetuity

20 November 2006

117,198 sq ft

RM59,400,000

RM73,060,000 82%

Address / Location

Property Type

Description

Tenure

Date of Acquisition

Net Lettable Area

Purchase Price

Market Value

Occupancy Rate

Portfolio Overviewcont’d

Quill C

apita Trust

Annual R

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WIS

MA

TECH

NIP

PART

OF

PLAZ

A M

ON

T’ K

IARA

241, Jalan Tun Razak50400 Kuala Lumpur

Office Building

12-storey office building with a mezzanine floor and three split-levels basement car park

Term in Perpetuity

3 September 2007

233,021 sq ft

RM125,000,000

RM161,100,000

100%

Address / Location

Property Type

Description

Tenure

Date of Acquisition

Net Lettable Area

Purchase Price

Market Value

Occupancy Rate

Plaza Mont’ Kiara, No. 2, Jalan KiaraMont’ Kiara, 50480 Kuala Lumpur

Commercial lots and car parks

An integrated retail/office commercial units located in Plaza Mont’ Kiara within the ground floors of Block A & B and Blocks C & D, and at the basement and ground floor of Block E. The car park lots are located in Blocks A, B, C, D and E

Term in Perpetuity

3 September 2007

73,408 sq ft (excluding 1,499 car park lots)

RM90,000,000

RM110,000,000

100%

Address / Location

Property Type

Description

Tenure

Date of Acquisition

Net Lettable Area

Purchase Price

Market Value

Occupancy Rate

Portfolio Overviewcont’d

Quill C

apita Trust

Annual R

eport 2013

9

WIS

MA

TECH

NIP

PART

OF

PLAZ

A M

ON

T’ K

IARA

241, Jalan Tun Razak50400 Kuala Lumpur

Office Building

12-storey office building with a mezzanine floor and three split-levels basement car park

Term in Perpetuity

3 September 2007

233,021 sq ft

RM125,000,000

RM161,100,000

100%

Address / Location

Property Type

Description

Tenure

Date of Acquisition

Net Lettable Area

Purchase Price

Market Value

Occupancy Rate

Plaza Mont’ Kiara, No. 2, Jalan KiaraMont’ Kiara, 50480 Kuala Lumpur

Commercial lots and car parks

An integrated retail/office commercial units located in Plaza Mont’ Kiara within the ground floors of Block A & B and Blocks C & D, and at the basement and ground floor of Block E. The car park lots are located in Blocks A, B, C, D and E

Term in Perpetuity

3 September 2007

73,408 sq ft (excluding 1,499 car park lots)

RM90,000,000

RM110,000,000

100%

Address / Location

Property Type

Description

Tenure

Date of Acquisition

Net Lettable Area

Purchase Price

Market Value

Occupancy Rate

Portfolio Overviewcont’d

Quill C

apita Trust

Annual R

eport 2013

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QU

ILL

BUIL

DIN

G 5

– IB

M

QU

ILL

BUIL

DIN

G 8

– D

HL X

PJ

3500, Jalan Teknokrat 363000 Cyberjaya, Selangor Darul Ehsan Commercial Building 5-storey office building together with one level of sub-basement and 1 ½ levels of basement car park Term in Perpetuity 14 March 2008 81,602 sq ft RM43,000,000 RM45,200,000 91%

Address / Location

Property Type Description

Tenure Date of Acquisition Net Lettable Area Purchase Price Market Value Occupancy Rate

8, Jalan Pemaju U1/5, Section U140150 Shah Alam, Selangor Darul Ehsan

Industrial Building

3-storey office building with an annexed single storey detached warehouse

Term in Perpetuity

25 March 2008

65,205 sq ft

RM28,800,000

RM26,200,000 92%

Address / Location

Property Type

Description

Tenure

Date of Acquisition

Net Lettable Area

Purchase Price

Market Value

Occupancy Rate

Portfolio Overviewcont’d

Quill C

apita Trust

Annual R

eport 2013

11

QU

ILL

BUIL

DIN

G 5

– IB

M

QU

ILL

BUIL

DIN

G 8

– D

HL X

PJ

3500, Jalan Teknokrat 363000 Cyberjaya, Selangor Darul Ehsan Commercial Building 5-storey office building together with one level of sub-basement and 1 ½ levels of basement car park Term in Perpetuity 14 March 2008 81,602 sq ft RM43,000,000 RM45,200,000 91%

Address / Location

Property Type Description

Tenure Date of Acquisition Net Lettable Area Purchase Price Market Value Occupancy Rate

8, Jalan Pemaju U1/5, Section U140150 Shah Alam, Selangor Darul Ehsan

Industrial Building

3-storey office building with an annexed single storey detached warehouse

Term in Perpetuity

25 March 2008

65,205 sq ft

RM28,800,000

RM26,200,000 92%

Address / Location

Property Type

Description

Tenure

Date of Acquisition

Net Lettable Area

Purchase Price

Market Value

Occupancy Rate

Portfolio Overviewcont’d

Quill C

apita Trust

Annual R

eport 2013

12

QU

ILL

BUIL

DIN

G 1

0 –

SECT

ION

13

TESC

O B

UIL

DIN

G, P

ENAN

G

2A, Lorong 13/6A, Section 1346200 Petaling Jaya, Selangor Darul Ehsan

Commercial Building

5-storey office building with basement car park

Leasehold for 99 years expiring 27 January 2063 (unexpired term of 49 years)

25 March 2008

68,377 sq ft

RM22,740,000

RM26,500,000

Vacant

Address / Location

Property Type

Description

Tenure

Date of Acquisition

Net Lettable Area

Purchase Price

Market Value

Occupancy Rate

1, Lebuh Tengku Kudin 1, 11700 Penang

Commercial Building

3-storey building

Term in Perpetuity

7 November 2008

275,020 sq ft

RM132,000,000

RM139,500,000 100%

Address / Location

Property Type

Description

Tenure

Date of Acquisition

Net Lettable Area

Purchase Price

Market Value

Occupancy Rate

Portfolio Overviewcont’d

Quill C

apita Trust

Annual R

eport 2013

13

QU

ILL

BUIL

DIN

G 1

0 –

SECT

ION

13

TESC

O B

UIL

DIN

G, P

ENAN

G

2A, Lorong 13/6A, Section 1346200 Petaling Jaya, Selangor Darul Ehsan

Commercial Building

5-storey office building with basement car park

Leasehold for 99 years expiring 27 January 2063 (unexpired term of 49 years)

25 March 2008

68,377 sq ft

RM22,740,000

RM26,500,000

Vacant

Address / Location

Property Type

Description

Tenure

Date of Acquisition

Net Lettable Area

Purchase Price

Market Value

Occupancy Rate

1, Lebuh Tengku Kudin 1, 11700 Penang

Commercial Building

3-storey building

Term in Perpetuity

7 November 2008

275,020 sq ft

RM132,000,000

RM139,500,000 100%

Address / Location

Property Type

Description

Tenure

Date of Acquisition

Net Lettable Area

Purchase Price

Market Value

Occupancy Rate

Portfolio Overviewcont’d

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apita Trust

Annual R

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14

Financial Highlights

Fund Performance 2013 2012 2011 2010 2009

Total Asset Value (RM) 860,120,193 860,214,521 853,821,353 843,556,310 818,165,733

Net Asset Value (“NAV”) (RM) 533,459,956 528,848,973 521,890,610(restated)

497,977,269 474,989,296

Units in circulation 390,131,000 390,131,000 390,131,000 390,131,000 390,131,000

NAV per unit (RM) 1.3674 1.3556 1.3377(restated)

1.2764 1.2175

Highest NAV per unit (RM) 1.3726 1.3556 1.3377 1.2764 1.2175

Lowest NAV per unit (RM) 1.3202 1.2924 1.2762 1.2081 1.2094

Highest traded price per unit (RM) 1.25 1.24 1.14 1.11 1.10

Lowest traded price per unit (RM) 1.12 1.09 0.99 0.99 0.80

Distribution Per Unit (“DPU”) (sen) 8.38 8.38 8.30 8.03 7.68

Dates of Distribution

- Interim 9-Sep-13 29-Aug-12 29-Aug-11 30-Aug-10 28-Aug-09

- Final 10-Mar-14 12-Mar-13 28-Feb-12 28-Feb-11 25-Feb-10

Effect of Income Distribution on NAV per unit

- Before Distribution (RM) 1.3674 1.3556 1.3377 1.3182 1.2565

- After Distribution (RM) 1.3246 1.3128 1.2947 1.2764 1.2175

Distribution yield (per annum) (a) 7.10% 6.81% 7.69% 7.23% 7.11%

MER (b) 1.10% 1.28% 1.19% 1.46% 1.24%

Average Total Returns (c)

- for one year 8.39% 8.37% 8.34% 7.91% 7.87%

- since listing of QCT (Annualised) 7.90% 7.82% 7.71% 7.55% 7.43%

Annual Total Returns (d) (RM) 34,536,806 34,460,704 34,321,017 32,574,952 32,415,995

(a) Based on the closing price on the last trading day of the respective financial years.

(b) Management Expense Ratio (MER) is computed based on total fees including Manager’s fee, Trustee’s fee, valuation fees and administration expenses charged to QCT divided by the average net asset value during the year.

Since the average net asset value of the Trust is calculated on a monthly basis, the MER of QCT may not be comparable to

the MER of other real estate investment trust/unit trusts which may use a different basis of calculation.

(c) Average Total Returns is computed based on Annual Total Returns for the respective financial years/periods divided by the weighted average unitholders capital for the respective financial years/periods.

(d) Annual Total Returns is defined as the Net Realised Income for the respective financial years.

Warning statement - The past performance is not necessarily indicative of future performances and that unit prices and investment returns may fluctuate.

Quill C

apita Trust

Annual R

eport 2013

15

Fund Performance

Total Asset Value (RM)

Net Asset Value (“NAV”) (RM)

Units in circulation

NAV per unit (RM)

Highest NAV per unit (RM)

Lowest NAV per unit (RM)

Highest traded price per unit (RM)

Lowest traded price per unit (RM)

Distribution Per Unit (“DPU”) (sen)

Dates of Distribution

• Interim

• Final

Effect of Income Distribution on NAV per unit

• Before Distribution (RM)

• After Distribution (RM)

Distribution yield (per annum) (a)

MER (b)

Average Total Returns (c)

• for one year

• since listing of QCT (Annualised)

Annual Total Returns (d) (RM)

2012

860,214,521

528,848,973

390,131,000

1.3556

1.3556

1.2924

1.24

1.09

8.38

29-Aug-12

12-Mar-13

1.3556

1.3128

6.81%

1.28%

8.37%

7.82%

34,460,704

2011

860,214,521

528,848,973

390,131,000

1.3556

1.3556

1.2924

1.24

1.09

8.38

29-Aug-12

12-Mar-13

1.3556

1.3128

6.81%

1.28%

8.37%

7.82%

34,460,704

2010

860,214,521

528,848,973

390,131,000

1.3556

1.3556

1.2924

1.24

1.09

8.38

29-Aug-12

12-Mar-13

1.3556

1.3128

6.81%

1.28%

8.37%

7.82%

34,460,704

2009

860,214,521

528,848,973

390,131,000

1.3556

1.3556

1.2924

1.24

1.09

8.38

29-Aug-12

12-Mar-13

1.3556

1.3128

6.81%

1.28%

8.37%

7.82%

34,460,704

2008

860,214,521

528,848,973

390,131,000

1.3556

1.3556

1.2924

1.24

1.09

8.38

29-Aug-12

12-Mar-13

1.3556

1.3128

6.81%

1.28%

8.37%

7.82%

34,460,704

(a) Based on the closing price on the last trading day of the respective financial years.(b) Management Expense Ratio (MER) is computed based on total fees including Manager’s fee, Trustee’s fee, valuation fees and

administration expenses charged to QCT divided by the average net asset value during the year. Since the average net asset value of the Trust is calculated on monthly basis, the MER of QCT may not be comparable to the MER of other real estate investment trust/unit trust which may use a different basis of calculation.

(c) Average Total Returns is computed based on Annual Total Returns for the respective financial years/periods divided by the weighted average unitholders capital for the respective financial years/periods.

(d) Annual Total Returns is defined as the Net Realised Income for the respective financial years.

Warning statement - The past performance is not necessarily indicative of future performances and that unit prices and investment returns may fluctuate.

DATO’ MOHAMMED HUSSEINCHAIRMAN & NON-INDEPENDENT NON-EXECUTIVE DIRECTOR, QCM

Dear Unitholders,

It is my pleasure to present to you the Annual Report of Quill Capita Trust (“QCT”) for the financial year ended 31 December 2013 (“FY 2013”), on behalf of the Board of Directors and management of Quill Capita Management Sdn Bhd (“QCM”), the manager of QCT (“the Manager“).

Financial Highlights -31 December 2013

Turnover

RM68.94 milNet Property Income

RM53.19 milTotal Realised Income

RM34.54 milTotal Assets

RM860.12 milGearing Ratio

35%Distribution Per Unit

8.38 sen

Chairman’s Statement

Quill C

apita Trust

Annual R

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16

Chairman’s Statementcont’d

OVERVIEW

The global economy grew modestly at a rate of 2.5% for the first half of 2013 on the back of moderating growth by the emerging and developing economies, while the advanced economies showed signs of gradual strengthening. However, uncertainties in the global environment persist as the strength of China’s economy and the tapering of the quantitative easing programme in the United States, continues to be a lingering concern.

The Malaysian Real Gross Domestic Product (“GDP”) remained positive thus far despite the challenging external environments. Malaysia’s macroeconomic management continues to focus on supporting growth and accelerating the national transformation process with the Malaysian Government firmly committed to ensuring sustainability of public finances. The 2014 Budget has set a clear fiscal roadmap, including the implementation of a 6% goods and service tax (GST) in April 2015 and subsidy rationalisation, to keep the country’s deficit and debt levels on a firm downward trajectory. Growth has become more diversified with the private sector playing a greater role in the economy and strong domestic demand cushioning the negative impact from the external sector.

On 12 February 2014, Bank Negara Malaysia announced that the Malaysian economy expanded by 5.1% in the fourth quarter of 2013, supported by private sector demand and improvement in exports. For the full year, Malaysia registered a growth of 4.7%, meeting market expectations.

(Sources: Malaysian Ministry of Finance Economic Report 2013/2014, Bank Negara Malaysia updates) The Malaysian Real Estate Investment Trust (“M-REIT”) sector continues to gain traction as it continues to attract entry of new and large players. In 2013, the listing of another two REITs in Malaysia with aggregate asset size of approximately RM14.5 billion has increased the market capitalization of the M-REIT to approximately RM33 billion as at 31 December 2013. Although the sentiment for the broader market remains cautious and despite the compression of distribution yields as a result of rallying of M-REIT unit prices during the first half of the year, the sector has remained an attractive investment option for investors.

The overall Klang Valley^ office market occupancy rates as at the third quarter of 2013 have remained stable at 79% (2Q 2013: 79%)* despite the increasing supply of office space. It is expected that from the fourth quarter of 2013 to 2015, there will be 8.9 million sq ft* of future office space being added into the office stock in Klang Valley. With the new office supply that is expected to come on stream, the office market is expected to be a tenant’s market and may experience some downside pressure on rental rates as there will be more choices available to tenants. Notwithstanding the above, QCT is pleased to report stable financial performance in FY 2013. This performance is due to the underlying strength of QCT’s portfolio, and the result of our proactive asset management and prudent cost management.

^ Klang Valley refers to Kuala Lumpur city (“KLC”) and commercial town centres outside of KLC such as Petaling Jaya, Shah Alam, Subang Jaya, Klang Town, Puchong and Kajang

* Source: Jones Lang Wootton, The Malaysian Quarterly – Klang Valley, 3Q 2013

OPERATIONS REVIEW

QCT has ten (10) commercial properties, sited across Malaysia, including Cyberjaya, Kuala Lumpur, Shah Alam, Petaling Jaya and Penang.

Despite the challenging office market environment, our active asset management strategy carried out in 2013 have ensured successful renewals for the majority of leases due in 2013. We will continue to work hard on our active leasing and marketing programmes to ensure a high portfolio occupancy rate. QCT’s average portfolio occupancy rate as at 31 December 2013 was 92%.

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Chairman’s Statementcont’d

We have carried out asset enhancement work to selected properties within the portfolio. Notably, we have implemented the improvement works for Quill Building 2-HSBC, Quill Building 3-BMW, Quill Building 5-IBM, Quill Building 8-DHL XPJ and Wisma Technip. The asset enhancement work for Wisma Technip is expected to be completed in 2015. These works have further enhanced the quality and physical condition of the buildings ensuring that we remain competitive and be able to retain existing tenants as well as attract new ones.

An annual valuation of QCT’s portfolio of properties was conducted at the close of FY 2013. Total portfolio value of RM825.56 million was registered compared to RM820.50 million recorded in the financial year ended December 2012 (“FY 2012”).

 FINANCIAL PERFORMANCE QCT recorded a total realised income of RM34.54 million for FY 2013, an increase of 0.2% from its total realised income of RM34.46 million in FY 2012. The satisfactory result for FY 2013 was due to prudent cost management which was reflected in lower finance and administrative cost incurred for the year.

DISTRIBUTION TO UNITHOLDERS

On 28 January 2014, the Board of Directors of QCM has declared a final distribution per unit (“DPU”) of 4.28 sen for the period 1 July 2013 to 31 December 2013, to be paid to unitholders of QCT (“Unitholders”) on Monday, 10 March 2014.

This final DPU of 4.28 sen, together with the interim distribution of 4.10 sen per unit which has been paid on 9 September 2013, amounted to a DPU of 8.38 sen for FY 2013. On a year-on-year comparison, the DPU was stable as FY 2012 DPU was also 8.38 sen. QCT’s distribution yield is 7.1% based on FY 2013 DPU of 8.38 sen and the closing price of RM1.18 per unit on 31 December 2013.

INVESTMENTS

On 29 January 2014, QCT announced that it had entered into a Heads of Agreement with MRCB Sentral Properties Sdn Bhd (“MSP”), a wholly-owned subsidiary of Malaysia Resources Corporation Berhad (“MRCB”) for the proposed acquisition of Platinum Sentral at a purchase consideration of RM750 million. Platinum Sentral is a freehold commercial development in Kuala Lumpur Sentral consisting of five low rise blocks of office buildings and a retail podium space with a total net lettable area (“NLA”) of 520,449 sq. ft. Upon completion of this acquisition, QCT’s portfolio would increase to approximately RM1.6 billion. The proposed acquisition of Platinum Sentral is conditional upon, among others, approvals being obtained from the shareholders of MSP and/or its holding company, the board of directors of QCM, Unitholders, Securities Commission Malaysia and Bursa Malaysia Securities Berhad.

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This acquisition is consistent with the key investment objective of QCT which is to acquire and invest in commercial properties primarily in Malaysia with a view to provide long-term growth and sustainable DPU to Unitholders and to achieve long-term growth in the net asset value per unit of QCT.

ANNUAL UNITHOLDERS’ MEETING

On 9 May 2013, QCT held its inaugural Annual General Meeting (“AGM”) to seek Unitholders’ approvals for the proposed authorisation and issuance of new units pursuant of Clause 14.03 of the Guidelines on Real Estate Investment Trusts issued by the Securities Commission Malaysia and proposed amendments to the Deed of Trust constituting QCT, as well as to brief Unitholders about QCT’s financial results for FY 2012.

We are pleased to report that we have received unanimous support from Unitholders’ for both proposals.

The forthcoming AGM is scheduled on Wednesday, 30 April 2014. The AGM of Unitholders will serve as a good platform for the Manager to share the highlights of the Trust’s financial results for the fiscal year. In turn, Unitholders can to ask questions, clarify facts and provide feedback to the Manager about the Trust’s performance and strategies.

OUTLOOK

The Malaysian economy is expected to remain in its current trajectory and expand further by 5.0% - 5.5% in 2014. This is supported by favourable domestic demand which will be driven by the private sector and an improving external environment which is in tandem with the continued recovery of growth across advanced economies as well as stronger regional trade activities.

(Sources: Malaysian Ministry of Finance Economic Report 2013/2014, Bank Negara Malaysia updates)

The challenging office market condition is expected to persist as supply continues to outstrip current demands. However, this may be mitigated by the Government’s continuous efforts to attract large multinationals to base their operations in Malaysia. In addition, the completion of the Mass Rapid Transit (“MRT”) and the light Rapid Transit (“LRT”) will improve accessibility and connectivity between the city centre and suburbs, which could benefit commercial buildings strategically located in close proximity and connected to these transport hubs.

Notwithstanding, we believe the outlook for QCT remains stable in view of its prudent gearing level and capital management, as well as proactive asset management strategies. Progressing into the next financial year, QCT will continue to maximise return of its properties by focusing on tenant retention, capital management and cost efficiency measures, while pursuing growth by actively exploring acquisition opportunities. These measures will enhance the quality of QCT’s portfolio and deliver sustainable income distribution for Unitholders.

CORPORATE SOCIAL RESPONSIBILITY (“CSR”)

The Manager believes that effective corporate social responsibility will benefit its business and in turn, deliver sustainable value to society at large. In QCM, every employee is expected to maintain the highest standard of integrity in their conduct of all their business relationships and QCT holds the same standard in its compliance with all applicable legal and regulatory requirements.

In line with QCT’s focus in supporting the welfare of needy children, the Manager has in 2013 made contributions to Agathians Shelter.

Donation to Agathians Shelter

In November 2013, the Manager donated RM96,300 in cash to the Agathians Shelter, a registered voluntary welfare organisation that helps abused, abandoned, neglected, orphaned or at-risk children of all races between the ages of 3 to 17 years old. This donation will contribute to the purchase of a van used to chauffeur the children to school and for curriculum activities.

In conjunction with this event, all staff of QCM also participated in the company’s CSR programme by collectively donating food and other daily necessities to the shelter and organizing a get-together luncheon with the shelter’s children.

AWARDS AND RECOGNITION

Malaysian Investor Relations Association (MIRA) Awards 2013

Quill Capita Trust was awarded the prestigious “Best IR Website” award for small cap companies listed on Bursa Malaysia Securities Berhad (“Bursa Malaysia”), at the Malaysian Investor Relations Association (MIRA) Awards 2013 held on 3 July 2013. This accolade is judged based

Chairman’s Statementcont’d

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on evaluations of companies listed on Bursa Malaysia, and responses are collated via the Malaysia IR Survey, jointly organized by Thomson Reuters Extel and MIRA. This year, more than 800 investment professionals from both the buy and sell-side were invited to take part in the survey. Winning this prestigious award is a testimony of our continuous efforts to engage with our shareholders, the investment community and other stakeholders as part of our good corporate governance practice.

Also of worthy mention is Ms. Yong Su-Lin’s nomination for “Best CEO for IR” for small cap companies. In this category, she eventually out ranked three other nominees to emerge as the first runner-up in the category.

Asia Pacific Real Estate Association (“APREA”) Corporate Governance Index for REITs in Malaysia

We recognise that good corporate governance practices are essential to protect the interest of the Unitholders and would ultimately boost investor’s confidence in QCT. Accordingly, I am pleased to note that in the June 2013 release of APREA’s corporate governance index for REITs in Asia, QCT emerged in the top quartile for Malaysia Corporate Governance Index 2011. QCT has been in the top quartile of this index since it was first introduced in 2011.

ENVIRONMENT

As part of our corporate social responsibility policy on promoting a greener and sustainable environment, QCM continues with its current practice of reducing paper usage and intensifying recycling initiatives.

Further, as a support to address climate change and global environment issues, QCM endeavors to reduce energy usage and carbon footprint. Specifically for QCT’s operations, QCM continuously manages QCT’s operations with the target to reduce waste and consumption of resources. Examples of such initiatives include installation of energy saving lights in place of conventional fluorescent lights.

In addition, QCM and the tenants from several of QCT’s properties namely, Quill Building 1 - DHL & Quill Building 4 – DHL, Quill Building 2 – HSBC, Quill Building 3 – BMW, Quill Building 5 – IBM and Wisma Technip had pledged support and participated in Earth Hour 2013, a global campaign to increase the awareness of global warming, by switching off their building façade and non-essential lights for 10 hours from 23 March 2013, 8.30 pm to 24 March 2013, 6.30 am.

ACKNOWLEDGEMENT

On behalf of the Board, I wish to extend our thanks and appreciation to Datuk Hj Abdul Karim bin Abu Bakar for his contributions during his service tenure since September 2006. He had retired from his position as an Independent Non-Executive Director of QCM in April 2013. In his place, we welcome Mr. Foong Soo Hah, who joined the Board on 11 April 2013.

In addition, I would like to express my earnest gratitude to the management of QCM for their dedication and commitment in managing QCT. To my colleagues on the Board, I extend my sincere appreciation for their continued support. Their vast experiences, depth of knowledge, critical insight, and business acumen have provided valuable advice and guidance to the management, the Board and other committees. To the regulators, analysts, bankers, advisers, and consultants, we thank you for your continued invaluable support and assistance during the year. Finally to our Unitholders and tenants, your loyalty and belief in us will undoubtedly spur us to work harder and we look forward to your continued support.

Sincerely,

ChairmanDato’ Mohammed HusseinFebruary 2014

Chairman’s Statementcont’d

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DIVERSIFIED SEGMENTAL CONTRIBUTIONS (By Valuation)

Office

Retail Assets

Car Park

Other Commercial BuildingNotes:(1) Office comprises Quill Buildings (excluding

Quill Building 8-DHL (XPJ) at Glenmarie, Shah Alam) and Wisma Technip

(2) Retail Assets refers to retail portion of Plaza Mont’ Kiara & TESCO Building Penang

(3) Car Park refers to car parking bays in Plaza Mont’ Kiara

(4) Other commercial building refers to Quill- Building 8-DHL (XPJ) at Glenmarie, Shah Alam

(5) Based on valuation dated 31 December 2013

6%6%

25%63%

As at 31 December 2013

NET ASSET VALUE(Before distribution of income)(RM)

increasedby

1.72%

1.37

89

1.35

56

FY‘12

FY‘13

WELL BALANCED TENANCY MIX (By Net Lettable Area)

Goverment Linked Office

Retail

Banking

Automotive

Logistics

Property / Construction

Oil & Gas

IT / Electronics

1.5%

23.1%

15.5%

2.6%21.2%

6.2%

19.6%

10.2%

As at 31 December 2013

REALISED NET INCOME(RM million)

Increasedby

0.22%

34.5

4

34.4

6

FY‘12

FY‘13

GEOGRAPHICAL DIVERSIFICATION (By Valuation)10 properties well spread over Cyberjaya, Kuala Lumpur, Selangor and Penang

Cyberjaya

Kuala Lumpur City Center

Penang

Mont’ Kiara

Other Klang Valley Area

44%

20%

17%

13%

6%

DISTRIBUTION PER UNIT(sen)

Maintained

8.38

8.38

FY‘12

FY‘13

As at 31 December 2013

Klang Valley 39%44%17%

CyberjayaPenang

2013 AchievementsAt a Glance

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DIVERSIFIED SEGMENTAL CONTRIBUTIONS (By Valuation)

Office

Retail Assets

Car Park

Other Commercial BuildingNotes:(1) Office comprises Quill Buildings (excluding

Quill Building 8-DHL (XPJ) at Glenmarie, Shah Alam) and Wisma Technip

(2) Retail Assets refers to retail portion of Plaza Mont’ Kiara & TESCO Building Penang

(3) Car Park refers to car parking bays in Plaza Mont’ Kiara

(4) Other commercial building refers to Quill- Building 8-DHL (XPJ) at Glenmarie, Shah Alam

(5) Based on valuation dated 31 December 2013

6%6%

25%63%

As at 31 December 2013

NET ASSET VALUE(Before distribution of income)(RM)

increasedby

1.72%

1.37

89

1.35

56

FY‘12

FY‘13

WELL BALANCED TENANCY MIX (By Net Lettable Area)

Goverment Linked Office

Retail

Banking

Automotive

Logistics

Property / Construction

Oil & Gas

IT / Electronics

1.5%

23.1%

15.5%

2.6%21.2%

6.2%

19.6%

10.2%

As at 31 December 2013

REALISED NET INCOME(RM million)

Increasedby

0.22%

34.5

4

34.4

6

FY‘12

FY‘13

GEOGRAPHICAL DIVERSIFICATION (By Valuation)10 properties well spread over Cyberjaya, Kuala Lumpur, Selangor and Penang

Cyberjaya

Kuala Lumpur City Center

Penang

Mont’ Kiara

Other Klang Valley Area

44%

20%

17%

13%

6%

DISTRIBUTION PER UNIT(sen)

Maintained

8.38

8.38

FY‘12

FY‘13

As at 31 December 2013

Klang Valley 39%44%17%

CyberjayaPenang

Corporate Highlights & Events

RM96,300 CASH DONATION TO AGATHIAN SHELTER

On 29 November 2013, Quill Capita Management Sdn Bhd (“QCM”), the manager of Quill Capita Trust (“QCT”), donated RM96,300 in cash to Agathians Shelter. This contribution is in line with QCM’s focus in supporting the welfare of needy children and this contribution will be for the purchase of a van used to chauffeur its children to school and for curriculum activities.

A cheque presentation ceremony was held on Saturday, 29 November 2013 at Agathians Shelter’s premise in Petaling Jaya. Ms. Yong Su Lin, Interim Chief Executive Officer of QCM presented the cheque to Agathian Shelter’s Management Committee Treasurer, Mr. Sivabalan.

QCT INAUGURAL ANNUAL GENERAL MEETING

On 9 May 2013, QCT held its inaugural Annual General Meeting (“AGM”) at One World Hotel, Petaling Jaya to seek unitholders’ approval for the following proposals beside the normal business of an AGM:-

• Authority to allot and issue new units pursuant to Clause 14.03 of the Securities Commission Malaysia’s Guidelines on Real Estate Investment Trusts; and

• Amendments to the Deed of Trust constituting QCT.

We have received unanimous support from unitholders’ for both the proposals.

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Corporate Highlights & Eventscont’d

HEADS OF AGREEMENT SIGNING CEREMONY

On 29 January 2014, QCT announced that it had entered into a Heads of Agreement (“HOA”) with MRCB Sentral Properties Sdn Bhd, a wholly owned subsidiary of Malaysia Resources Corporation Berhad (“MRCB”) for the proposed acquisition of Platinum Sentral. The HOA signing ceremony was held at MRCB’s headquarter in KL Sentral.