Frasers Property Industrial REIT

Management (Thailand) Co.,Ltd

Opportunity Day2QFY19 Results Presentation 21 May 2019

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

▪ Highlight and financial review

▪ Completion of AEI in period

▪ Asset Performance and Capital Management

▪ REIT Strategy

Highlight and Financial Review

5

2QFY19 Highlights

82.9%Occupancy Rate

22.94%Aggregate Leverage

DPU

from 2QFY19

performance

• High Occupancy rate at 82.9%

• Weighted average lease expiry at around 2.06 years/1

• Retention rate 78.3%/2 and Reversion rate 1.05%/2

• Completion of AEI/3 1,700 sqm of factory at Amata City Rayong

❖ Asset Performance and AEI

❖ Financial Performance

❖ Capital Management

1. By GRI

2. In period 2QFY19

3. AEI = Asset Enhancement Initiative.

4. Gearing ratio = IBD/TAV as of 31 March 2019

5. Fixed = Debentures, Float = Short term loan.

• Higher net investment income of THB 463 Million for

2QFY19, up 10% from THB 420 Million a year ago

• Repayment short-term loan THB 300 Million

• Healthy balance sheet with gearing of 22.94%/4 and 87%/5 of

borrowings were at fixed rate

• Cost of borrowing is around 3.25% WAM 4.03Yrs

❖ Distribution for period 2QFY19

• DPU THB 0.1670 per unit for 2QFY2019

THB 0.1670

6

Financial Performance 2QFY19: 1 January 2019 – 31 March 2019

Overall performance 2QFY19 is better than 1QFY18 (Jan – Mar’18)/3

TOTAL

Revenue

2QFY19

718

1QFY18

640THB million

+78/+12%

Compare

with

Change

YoY :

9286 +6/+7%

Compare

with

YoY :OPEX

88Total

Fee

463420 +43/+10%YoY :

Net

Investment

Income

Finance

Cost 40

THB million THB million/%

ChangeTHB million/%

87 YoY :

70 +30/+75%YoY :

Compare

withChange

THB million/%

Rationale

Rationale

Rationale

▪ Revenue increased mainly came from new assets

value THB 3.6 bn which been transferred from

Sponsor on Aug’18 and Dec’18.

▪ OPEX increased from additional assets..

▪ Total fee slightly decreased from operation in period.

▪ Increased in IBD THB5.5bn > THB 8.5bn.Mar’18 Mar’19

▪ Increased in COD/2 2.87% > 3.25%/1

1. WAM 1.46 Yrs(Mar’18) , 4.03yrs(Mar’19)

2. COD = Cost of debt

3. FY2018 start from 1 January 2018 to 30 September 2018. FY2019 start from 1 October 2018 to 30 September 2019.

-1/-1%

Jan - Mar’18 Jan - Mar’19

1QFY18THB million

Jan - Mar’18

1QFY18THB million

Jan - Mar’18

2QFY19THB million

Jan - Mar’19

2QFY19THB million

Jan - Mar’19

▪ Net investment income increased from additional

assets.

7

Financial Performance HYFY19: 1 October 2018 – 31 March 2019

Overall performance for period (Oct’18 – Mar’19) is better than period (Oct’17 – Mar’18)/2

TOTAL

Revenue 1,395 YoY :

Oct’17 – Mar’18

THB million

+564/+68%

Compare

withChange

185

Compare

with

OPEX

Total

Fee

885Net

Investment

Income

Finance

Cost

THB million

THB million THB million

THB million/%

ChangeTHB million/%

179

127

Compare

withTHB million THB million Change

THB million/%

Rationale

Rationale

Rationale

831

103

538

120

59

Oct’18 – Mar’19

Oct’17 – Mar’18 Oct’18 – Mar’19

Oct’17 – Mar’18 Oct’18 – Mar’19

YoY : +82/+80%

YoY : +59/+49%

YoY : +68/+115%

YoY : +347/64%

1. WAM 1.46 Yrs(Mar’18) , 4.03yrs(Mar’19)

2. PFPO conversion to FTREIT completed on 20 December 2017

▪ Net investment income increased from additional

assets.

▪ Change policy to collect property tax (start FY18)

▪ Mainly from additional assets from PFPO and

investment in FY18 – 1QFY19

▪ Mainly from additional assets from PFPO and

investment in FY18 – 1QFY19

▪ Mainly from additional assets from PFPO and

investment in FY18 – 1QFY19

▪ Increased in IBD THB5.5bn > THB 8.5bn.Mar’18 Mar’19

▪ Increased in COD 2.87% > 3.25%/1

8

Healthy Balance sheet as of 31 March 2019

With total asset around THB 37 billion, FTREIT still the largest industrial and logistics REIT in Thailand.

35,433TOTALASSETS

30 Sep 18THB million

Compare

with

37,231

31 Mar 19THB million

ChangeTHB million/%

+1,798/+5%

6,933

Interest

Bearing

Debt

30 Sep 18THB million

Compare

with

8,540

31 Mar 19THB million

ChangeTHB million/%

+1,607/+23%

10.5141NAV

Per Unit

30 Sep 18THB per Unit

Compare

with

10.5643

31 Mar 19THB Per Unit

ChangeTHB Per Unit/%

+0.0502/+0.5%

▪ MK Price▪ Premium

13.7011.80

12.23% 29.68% +17.45%

+1.9/+16%

Rationale

Rationale

Rationale

1. New assets + AEI = THB 1,947 Million.

2. Additional unrealized gain from new assets.

3. Divested 1 factory and 1 warehouse, gain from divested THB 52 million.

▪ Leveraged for asset acquisition

▪ COD = 3.25%, WAM = 4.03 Yrs

▪ Fixed/Float : 87%:13%

▪ Increased from cash and receivables that

came from operation in period.

▪ Increased in investment property value

which came from investment and AEI

▪ Acquired assets from sponsor and value

increased from AEI/1.▪ Unrealized gain from new assets/2.

▪ Divested 1 FAC and 1WH/3

▪ Tenants paid property tax which accrued to

FTREIT

▪ Repaid ST-Loan 300MB

0.1600 0.1600 0.1600

0.1670 0.1670

1QFY2018 2QFY2018 3QFY2018 1QFY2019 2QFY2019

Distribution 2QFY19

Unit : THB per Unit

/1

Note : 1. Distribution = Dividend + Capital Reduction

9

• The higher DPU in 1QFY19 and 2QFY19 at THB 0.1670 per unit by 4.4% as compared to THB 0.1600 per

unit for FY2018 due to better overall performance and additional income from new assets acquisition.

Completion of AEI in period 2QFY19

11

Completion of Asset Enhancement Initiative

Project Completed on 16 January 2019

WALE for

AEI Area

+1,700 sqm

14,250 sqm

Internal

External

Height

Floor

Loading

AEI Specification

3 Tons

7 Meters

AEI Area 1,700 sqm

Total Area After AEI

15,950 sqm

7 Years

• Board of REIT Manager has approved/1 for the expansion area

1,700 SQ.M of factory unit AAA14.2 at Amata City Rayong/2.

• This investment shall increase rental income generated from the

expansion area

• long WALE of expansion area by contract will be start on

1 February 2019 and will be ended on 31 January 2026

(7 years).

1. Board approved on 14 May 2018

2. Start rent extension area on 1 Feb 2019, NLA increased from 14,250 SQ.M to 15,950 SQ.M), WALE 7 Years

3. NOI Yield% = Net operating income / Investment value.

Utilized

Area of

Assets

NOI

Yield

10.17%/3

12

Summary Investment Properties Growth in 2QFY19

Total Investment Property Value over THB 35,700 million with net growth by THB 39.7 million in 2QFY19

Investment in

properties at

fair value31 Dec 2018 35,696

THB million/1

547Units

Investment

AEI 16 Jan 2019 +40THB million /1

- Units

Investment in

properties at

fair value31 Mar 2019 35,736

THB million /1

547Units

[Beginning Balance]

[Ending Balance]

+AEI

1,629,471 sqm

+1,700 sqm

1,631,171 sqm

1. Round up value to integer

Freehold 73%

Leasehold 27%

Factory 48%

Warehouse 52%

13

FTREIT Portfolio Snapshot

Quality portfolio

within prime

Industrial and

logistics locations

547Properties/1

WALE/42.06 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

82.9%

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

logistics locations in Thailand.

Remaining LH Years

~ 26 YearsNo of Tenants

265

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 790,560 sq.m (48%) and area of warehouse 840,611 sq.m (52%) – total 1,631,171 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 March 2019.

Excludes straight lining rental adjustments.

5. Factory avg ages 12 years and Warehouse avg ages 6.7 years

The Largest

Industrial & Logistics REIT

in Thailand

Breakdown

By Right on

assets

Asset Performance and Capital Management

15

Occupancy rate by area as of Mar’19

OCR%

Dec’18

84.2%Mar’19

WALEDec’18

2.09YMar’19

Weighted average by GRI

Renewal

Rate 78.3%

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

OCR% Trend OCR% Trend OCR% Trend

▪ Demand came from Automotive and Electronics

▪ HDD producer expand their production capacity in

Northern Bangkok area.

▪ 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.

▪ Some of producers relocate their production to their

built factory since business is operating-well.

66% 67% 67% 68% 69%77% 75%

0%

20%

40%

60%

80%

100%

2016 2017 Mar'18 Jun'18 Sep'18 Dec'18 Mar'19

Total Unit = 151 Units Total Unit = 59 Units

92%88%

92% 92% 96% 100%

0%

20%

40%

60%

80%

100%

2016 2017 Mar'18 Jun'18 Sep'18 Dec'18 Mar'19

Total Unit = 337 Units

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

0%

20%

40%

60%

80%

100%

2016 2017 Mar'18 Jun'18 Sep'18 Dec'18 Mar'19

(-1.3%)

[Jan’19 – Mar’19]

FTREIT can maintain high OCR at average 83% with WALE around 2 Years

99%

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

82.9% 2.06Y Reverson

Rate+1.05%

[Jan’19 – Mar’19]

Tenants Industry % of GRI(1)

Siam Makro Retail 4.84%

Leschaco Logistics 2.65%

Lazada E-Commerce 1.99%

BJC Logistics Logistics 1.94%

DTS Automotive 1.57%

Kintetsu Logistics 1.48%

Samsung Electronics 1.42%

DHL Logistics 1.41%

Denso Automotive 1.40%

Trancy Logistics 1.24%

16

Well-diversified Tenant Base

Top 10 tenants of FTREIT have low concentration risk and longer WALE

Top 10 Tenants1 (GRI 19.96%/2/WALE 3.23 Yrs)

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 March 2019. Excludes straight lining rental adjustments.

2. Concentration risk has stable at around 20%.

Breakdown of Tenants1 2

By Industry GRI%

Automotive

28%

Logistics

22%

Electronics

23%

Others

16%

Retails 8%E-Commerce 3%

By Nationality GRI%

Japan

47%

EU 20%

Thais 15%

Other

Asian 13%

US 4% Other 1%

Automotive sector tenants Logistics sector tenants

Electronics sector tenants Retails sector tenants

17

Capital Management

As at 31 March 2019

Aggregate level 22.94%

Total Gross Borrowings THB 8,540 million

Weighted Average Cost of Borrowings 3.25%

Average Weighted Debt Maturity 4.03 Years

Interest Rate Exposure Fixed 87%

Interest Coverage Ratio for 2Q19/HY19 7.73 times/ 8.10 times/1

Credit Rating A (Stable Outlook)/2

Debt Maturity Profile/3

Bridging Loan Debentures

Interest Fixed/Float

87%

13%Unit: THB Million

Fixed Float

1. 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.

Summary Distribution

Incl. sales Yield* Excl. sales Yield*

(FS)

Adjusted net distributable income (THB mn) 474 426

12.30

DPU (THB/unit) 100% 0.1823 5.9% 0.1638 5.3%

Option I 98% 0.1786 5.8% 0.1605 5.2%

Option II 95% 0.1732 5.6% 0.1556 5.1%

Option III 90% 0.1641 5.3% 0.1474 4.8%

Total units: 2,602,387,048 units

* Based on market price THB 12.3

DPU 1QFY2019 Payment Timeline

DPU Announcement

14 May 2019

XD

27 May 2019

Record Date

28 May 2019

Book Closing

Not required

Distribution Date

7 June 2019

0.1600 0.1600 0.1600

0.2028

0.1100

0.1600 0.1600 0.1600 0.1670 0.1670

4QFY2016 1QFY2017 2QFY2017 3Q and Oct'17 Nov'17 -Dec'17

1QFY2018 2QFY2018 3QFY2018 1QFY2019 2QFY2019

Sustainable Distribution Per Unit

Unit : THB per Unit

/1

Distribution Policy

• 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.

Note : 1. Distribution = Dividend + Capital Reduction

/1

18

19

Key Summary for HYFY19 (Oct’18 – Mar’19)

THB 938 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 31 March 2019

83%/2.06 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

4.03 Years

Weighted Avg Debt

Maturity

87%

Proportion of Fixed

Debt

[As of 31 March 2019] [As of 31 March 2019]

22.94%

Aggregate leverage

[As of 31 March 2019]

Retention/Reversion

77%/+1.07%[Oct’18 – Mar’19]

REIT Strategy

21

Principal Objective and Strategy

Active Asset

Management

Deliver

consistently

growing and

sustainable

distributions to

unitholders

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