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CPN Retail Growth Leasehold REITInvestor Presentation
Opportunity Day
28 February 2018
Importance Notice
• The information contained in this presentation is for information purposes only and does not constitute an offer orinvitation to sell or the solicitation of an offer or invitation to purchase or subscribe for units in CPN Retail GrowthLeasehold REIT (CPNREIT and units in CPNREIT, “Units”) in any jurisdiction nor should it or any part of it form the basisof, 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 knownand unknown risks, uncertainties and other factors which may impact on the actual outcomes, including economicconditions in the markets in which CPNREIT operates and general achievement of CPNREIT business forecasts, whichwill 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 ofCPNREIT. The information in this presentation has not been independently verified. No representation, warranty, expressor implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness ofthe information and opinions in this presentation. None of the REIT Manager or Property Manager or any of its agents oradvisers, or any of their respective affiliates, advisers or representatives, shall have any liability (in negligence orotherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising inconnection with this presentation.
• This presentation is made, furnished and distributed for information purposes only. No part of this presentation shall berelied 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 inwhole or in part, be reproduced, redistributed or made available to any other person, save in strict compliance with allapplicable laws.
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Content
About CPNREIT
Key Financial Highlights
Operation Highlights
Asset Enhancement Initiatives
3
ABOUT CPNREIT
CPNREIT History
5
2017Conversion to
CPNREIT
20091st Follow-on
Offering2005Initial Public
Offering
Acquisition ofCentralPlaza Rama 2CentralPlaza Rama 3
20142nd Follow-on
Offering
Acquisition ofCentralPlaza Pinklao
Acquisition ofCentralPlaza Chiangmai Airport
Acquisition ofCentralFestival Pattaya BeachHilton Hotel
CPN Retail Growth Leasehold REIT is Thailand’s largest retail-focused realestate investment trust listed on the Stock Exchange of Thailand. CPNREITwas established from the conversion of CPN Retail Growth Leasehold PropertyFund which was set up and publicly traded on the SET since 2005. Uponconversion on 1 December 2017, CPNREIT acquired all CPNRF’s qualityportfolio, and invested in a new mix-used project consisting of CentralFestivalPattaya Beach shopping center and Hilton Pattaya.
RAMA 2 RAMA 3 PINKLAO CHIANGMAI AIRPORT PATTAYA BEACH
Trust Structure
6
REIT Manager Trustee
Property Manager
Investment in CPNREIT
Invest in Assets
HILTON PATTAYA
Hotel Manager
Management Services
Management Fee
Distribution
Net Property Income
Represents Interest of
Unitholders
Trustee Fee
CPN Pattaya Hotel Co., Ltd.
Subleases Rental Income
Property Management Fee
Summary of Asset Information
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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
Leasable Area (sqm)
82,746 36,285 61,643 37,490 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 Leaseholdtenure of 20years ending 15 August 2025
Leaseholdtenure of 30+30+30years ending 15 August 2095
Leaseholdtenure of approximately15 years ending 31 December 2024
Leaseholdtenure of 15years ending 22
April 2044
- -
Building & Utility Systems
Leaseholdtenure of 20years ending 15 August 2025
• Building –Leaseholdsame tenure as land
• Utility Systems – Ownership
Leaseholdtenure of approximately15 years ending 31 December 2024
Leaseholdtenure of 15years ending 22
April 2044
Leaseholdtenure of approximately20 years ending 31 August 2037
Leaseholdtenure of approximately20 years ending 31 August 2037
Movable Assets Ownership Ownership Ownership Ownership Ownership Ownership
ValuationAs at 31 December 2017(THB million)
7,186 9,179 5,543 10,494 8,154 3,754
Information as at 31 December 2017
KEY FINANCIAL HIGHLIGHTS
Key Financial Highlights
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4Q 2017 FY 2017
Total Revenue THB 936.8million
THB 3,525.9 million
�2.8% YoY
�12.4% QoQ
�0.1% YoY
Net Investment Income THB 662.4million
THB 2,724.0 million
�8.3% YoY
�0.3% QoQ
�3.8% YoY
Distribution Per Unit THB 0.2879 THB 1.1371
�1.7% YoY
Same QoQ
�1.4% YoY
Balance Sheet
10
Unit: Million Baht
CPNREIT
31 Dec 16 31 Mar 17 30 Jun 17 30 Sep 17 31 Dec 17
Investments in properties at fair value 32,309.0 31,820.0 32,402.0 32,402.0 44,310.0
Rama 2 6,705.0 6,520.0 7,184.0 7,186.0 7,186.0
Rama 3 9,156.0 9,540.0 9,192.0 9,179.0 9,179.0
Pink lao 5,495.0 5,180.0 5,495.0 5,543.0 5,543.0
Chiangmai Airport 10,953.0 10,580.0 10,531.0 10,494.0 10,494.0
Pattaya Beach 0.0 0.0 0.0 0.0 8,153.8
Hilton Pattaya 0.0 0.0 0.0 0.0 3,754.2
Investment in securities at fair value 662.9 796.8 897.0 941.0 990.0
Cash on hand and at banks 464.6 339.7 236.5 273.4 1,052.4
Rental and service receivables 88.6 113.6 107.7 92.6 188.6
Accrued interest income 0.3 0.5 0.2 0.4 0.1
Other assets 78.4 39.7 54.3 63.1 514.5
Total assets 33,603.8 33,110.2 33,697.6 33,772.4 47,055. 6
Account payable and accrued expenses 386.6 356.0 370.1 266.5 1,465.8
Deposits received from customers 1,138.0 1,130.9 1,142.4 1,184.3 1,424.1
Unearned lease and service income 48.3 80.9 73.2 73.0 51.5
Borrowing 1,874.6 1,852.9 1,831.3 1,917.8 14,453.7
Other liabilities 163.7 168.3 176.2 191.4 198.4
Total liabilities 3,611.2 3,588.9 3,593.2 3,632.9 17,593 .4
Net assets 29,992.6 29,521.3 30,104.4 30,139.5 29,462.1
Capital received from unitholders 24,406.2 24,406.2 24,406.2 24,406.2 29,653.4
Equalisation account 0.0 0.0 0.0 0.0 216.1
Retained Earnings 5,586.4 5,115.1 5,698.2 5,733.3 (407.3)
NAV per unit (in Baht) 13.5561 13.3431 13.6066 13.6225 1 3.3164
CPNRF
Profit and Loss
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Note:/1 Full year performance by combining performance of CPNREIT (29 November 2017 – 1 December 2017) and CPNRF (1 January 2017 – 4 December 2017)/2 4Q2017 performance by combining performance of CPNREIT (29 November 2017 – 1 December 2017) and CPNRF (1 October 2017 – 4 December 2017)
Unit: Million Baht
CPNREIT CPNRF FY2017 /1 CPNRF Chg CPNREIT CPNRF 4Q17 /2 3Q17 Chg CPNRF Chg
29 Nov 1 Jan FY2016 YoY 29 Nov 1 Oct QoQ 4Q16 YoY
- 31 Dec - 4 Dec - 31 Dec - 4 Dec
(1) (2) (1)+(2) (3) (4) (3)+(4)
Investment income
Rental and service income 369.5 3,040.7 3,410.1 3,425.2 (0%) 369.5 539.5 908.9 804.8 13% 887.5 2%
Other income 8.4 103.3 111.7 99.5 12% 8.4 18.1 26.5 27.5 (4%) 22.4 18%
Interest income 0.5 3.6 4.1 6.1 (33%) 0.5 0.8 1.4 1.2 18% 1.5 (5%)
Total income 378.4 3,147.6 3,525.9 3,530.7 (0%) 378.4 558.4 936.8 833.4 12% 911.4 3%
Expenses
Cost of rental and services 16.5 125.3 141.8 119.6 19% 16.5 26.3 42.8 32.7 31% 32.0 34%
Selling and administrative expenses 23.1 59.8 82.9 64.8 28% 23.1 8.2 31.3 17.1 83% 22.2 41%
Property management fee 68.9 358.0 426.9 399.4 7% 68.9 65.8 134.7 91.0 48% 105.4 28%
Other expenses 0.0 0.0 0.0 0.0 2% 0.0 0.0 0.0 0.0 185% 0.0 426%
Other management fees and expenses 15.9 39.5 55.4 43.8 27% 15.9 7.4 23.3 10.7 117% 11.1 110%
Finance costs 30.1 64.8 94.9 72.4 31% 30.1 12.1 42.2 17.5 141% 18.0 134%
Total expense 154.6 647.3 802.0 699.9 15% 154.6 119.8 274.4 169.1 62% 188.7 45%
Net investment income 223.7 2,500.2 2,724.0 2,830.8 (4%) 223.7 438.6 662.4 664.3 (0%) 722.7 (8%)
Net realised gain (loss) on investments (25.3) (3.7) (25.3) 0.2 (0.6)
Net unrealised gain (loss) investments (605.8) 335.6 (605.8) (35.8) (32.8)
Net increase in net assets (407.3) 3,162.7 (407.3) 628.7 689.3
Distribution Summary
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Distribution Period 29 November – 31 December 2017(including the performance of CPNRF for the period of 1 October 2017 to 4 December 2017)
Distribution Per Unit• via profit distribution• via capital reduction
THB 0.2879THB –THB 0.2879
XN (excluding capital return) 6 March 2018
Record Date 9 March 2018
Payment Date 22 March 2018
OPERATION HIGHLIGHTS
Area and Occupancy
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Note: /1 Anchor and in-line tenants only
Project
Gross Floor Area Leasable Area /1 31 Mar 17 30 Jun 17 30 Sep 17 31 Dec 17
CentralPlaza Rama 2 251,182 82,746 84.8% 89.9% 91.8% 93.6%
CentralPlaza Rama 3 169,740 36,285 86.9% 62.7% 58.6% 77.7%
CentralPlaza Pinklao (Retail) 137,692 27,611 95.7% 95.7% 97.6% 99.2%
Pinklao Tower A and B 50,653 34,031 90.3% 90.0% 84.5% 84.6%
CentralPlaza Chiangmai Airport 122,991 37,490 94.0% 94.1% 93.1% 92.9%
Total/Average 732,258 218,163 88.9% 86.8% 86.0% 90.1%
CentralFestival Pattaya Beach 70,095 29,404 97.6%
Total/Average 802,353 247,567 91.0%
Hilton Pattaya 49,686 302 rooms 94.7% 91.6% 93.3% 93.4%
Area (sqm) Occupancy Rate /1
New and Renewed Lease
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Note: /1 Exclude rental agreements < 1 year/2 Percentage of leasable area as at 31 December 2017/3 Renewals and new leases from period of 1 December 2017 – 31 December 2017
Project
No. of Leases Area (sqm) % of Total /2
CentralPlaza Rama 2 89 12,122 33.7%
CentralPlaza Rama 3 38 3,999 24.2%
CentralPlaza Pinklao (Retail) 7 869 4.5%
Pinklao Tower A and B 14 4,633 16.1%
CentralPlaza Chiangmai Airport 46 1,998 8.2%
CentralFestival Pattaya Beach/3 17 2,168 12.0%
Total/Average 211 25,788 18.1%
From 1 October to 31 December 2017
Renewed and New Leases /1
Lease Expiry Profile
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Rental Structure
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ASSET ENHANCEMENT INITIATIVES
RETAIL JUNGLEConnect Every Lifestyle with Welcoming of Natural Charm
Major Renovation at CentralPlaza Rama 3
RAMA 3
Start Jun 2017
Completion Phase 1: Dec 2017Phase 2: Q1 2018
Budget THB 675 miillion
PHASE 1 Completed in December 2017
• Improvement of common area
• Improvement of decoration
• New façade design
• Re-merchandising mix
• Improvement of traffic circulation by installing more escalators
• Increasing rest area and interior garden
• Improvement of parking area and landscape to avoid traffic problem and accommodate customers
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Asset Enhancement Initiatives
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CHIANGMAI AIRPORTRAMA 2
Conversion of vacant space to bank zone and Fashion Plus zone
Improvement of “Kad Laung” – local foods and souvenir zone
Improvement of Fashion Plus zone
Completed in 2017 Completed in 2017
Contact Us
CPN REIT Management Company Limited
31st Floor, The Offices at CentralWorld, 999/9 Rama1 Road
Patumwan, Bangkok 10330
+66 (0) 2-667-5555 Ext. 1660
http://www.cpnreit.com
Investor Relations : [email protected]
Independent Director : [email protected]
Compliance : [email protected]
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