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Frasers Property Thailand Industrial Freehold & Leasehold REIT
Opportunity Day
13 December 2019
FPIT Bangplee 1, SamutprakarnLaemchabang 2, Chonburi, Thailand (FPIT’s properties)
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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.
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Content
▪ FTREIT Overview
▪ Financial Review
▪ Investment in FY2019
▪ Portfolio Overview
FTREIT Overview
5
FTREIT Key Milestone
Listing of PFPOs - TFUND,
TLOGIS and TGROWTH on
the Stock Exchange of
Thailand (SET) in 2005,
2009 and 2013 respectively.
Conversion PFPO into
TREIT which made TREIT
become the largest
Industrial REIT in Thailand”
Listing of
TREIT in 2015
1990 2005 2009
Frasers Property become
TICON’s major shareholders
20172013 2015
TICON was established
in 1990 and was listed
on the SET in 2002
2019
Rebranding “TREIT” to Frasers Property
Thailand Industrial Freehold & Leasehold
REIT (“FTREIT”)
FTREIT is the largest industrial and logistics REIT in Thailand
Industrial PF Logistics PFIndustrial&Logistics
PF(LH)
Industrial&Logistics
REIT
6
FTREIT Structure
Frasers Property Thailand Industrial Freehold & Leasehold REIT
(“FTREIT”)
Unitholders
(2,602 Million
Units)
Freehold right/
Leasehold Right of
industrial properties
Invest
Property Manager
Frasers Property (Thailand) PCL
Frasers Property Industrial
(Thailand) Co.,Ltd
+
Properties
F W+
Factory Warehouses
= 554Units
FTREIT have industrial
properties has located in prime
industrial and logistics locations
Manage
Properties
REIT Manager
Frasers Property Industrial REIT
Management (Thailand) Co.,Ltd
(“FIRM”)
Set strategies
and Manage
REIT
REIT Manager fee
Property Manager Fee
Trustee
BBL Asset Management
(“BBLAM”)
Act on behalf
of UnitholdersTrustee fee
Property Manager FeeTenants
Rent Property
Rental Fee
Lender/
Bondholders
DPUInvest InterestLend
Sponsor
Third Party
FTREIT is managed and set direction by “FIRM”, Property manger are “FPT” and “FPIT”
Owner of
Properties
96.0% 4.0 %
7
Unitholders of FTREIT
Breakdown By type of Investors
23.1%
56.1%
20.8%
Institutions & Funds
SponsorsRetail
Investors
Note: Reference from closing book information from SET
1. FPT Group = Frasers Property Thailand (International) PTE. LTD. and Frasers Property (Thailand) PCL.
No Name Units
30 Sep 2019%
Units
30 Jun 2019% Units %
1 Frasers Property (Thailand) Group/1 601,693,700 23.1 601,693,700 23.1 - -
2 Social Security Office 388,875,662 14.9 432,094,662 16.6 - 43,219,000 - 1.7
3 Bangkok Life Assurance Plc. 160,299,453 6.2 160,299,453 6.2 - -
4 Bangkok Bank Plc. 104,947,981 4.0 104,947,981 4.0 - -
5 Muang Thai Life Assurance Plc. 45,408,242 1.7 48,362,942 1.9 - 2,954,700 - 0.2
6 Bangkok Insurance Plc. 37,359,673 1.4 37,359,673 1.4 - -
7 Mitsui & Co. (Asia Pacific) Pte. Ltd. 35,000,000 1.3 35,000,000 1.3 - -
8 SCB Income Plus Fund 33,733,933 1.3 29,917,333 1.2 + 3,816,600 + 0.1
9 MFC Property Dividend Fund 30,991,000 1.2 28,377,500 1.1 + 2,613,500 + 0.1
10 K Property Sector Fund (K-Prop) 30,161,500 1.2 21,971,500 0.8 + 8,190,000 + 0.4
11 Others 1,133,915,904 43.6 1,102,362,304 42.4 + 31,553,600 + 1.2
Total 2,602,387,048 100.0 2,602,387,048 100.0 - -
Foreign/Domestic Investors
Foreign
Investors
Domestic
Investors
8
Our Property Quality
9
Property Locations
1. Northern Bangkok area = Ayutthaya and Pathumthani, Eastern Bangkok = Samutprakarn and Prachinburi, EEC area = Chonburi, Rayong and Chachoengsao
Our assets are located in prime industrial and logistics area in Thailand
2. Including 2 unit of cold storage
Northern Bangkok area
(Ayutthaya and Pathumthani Province)▪ Bangpa-In Industrial Estate [BPI]
▪ Hi-Tech Industrial Estate [HITECH]
▪ Rojana Industrial Park [RJN]
▪ Rojana Ayutthaya [RJN]
▪ Navanakorn Industrial Promotion Zone [NVA]
▪ Wangnoi 1 & 2 [WN1&2]
▪ Wangnoi Cold Storage + CTD
Eastern Bangkok area
(Samutprakarn and Prachinburi Province)
▪ Bangpoo Industrial Estate [Bangpoo]
▪ Bangplee 1
▪ Bangplee 3
▪ Rojana Prachinburi [RJP]
EEC area
(Chonburi, Chachoengsao and Rayong Province)
▪ Amata City Chonburi [AMC]
▪ Amata City Rayong Industrial Estate [AMR]
▪ Hemaraj Chonburi Industrial Estate [BOWIN]
▪ Bowin warehouse
▪ Pinthong Industrial Estate project 1 – 3 [PT 1- 3]
▪ Eastern Seaboard 1(A) – 1(B) [ES1(A) – ES1(B)]
▪ Eastern Seaboard 2(A) [ES2(A)]
▪ Laemchabang 1 / Laemchabang 2
▪ Sriracha [SRI]
▪ Phan thong 1[PHAN]
▪ Bangna
10
FTREIT Strategy Framework
Deliver consistently growing and sustainable DPU and NAV per unit
to unitholders though FTREIT business framework
Expected outcome
Operation
Excellence
Operation
Excellence
Acquisition
Assets and
AEI
Efficient Capital
Management
Strategies to support the business framework
1
▪ Proactive leasing: Maintain high retention rate,
occupancy rate, and well- diversified tenant base.
▪ Enhance tenant quality and base by leveraging on
sponsor’s capabilities and networks.
Business Framework
Acquisition
Assets + AEI
2▪ Right of first refusal (“ROFR”) for industrial properties
from FPT’s Sponsor.
▪ Third-party asset acquisition.
▪ Search and propose AEI opportunity to target tenants
which required additional space in same property.
▪ Divest non-core assets and redeploy capital to
acquire/develop higher value-adding properties.
+Sustain
ability
Sustainability
3▪ Sustainability initiative project such as Solar Rooftop,
Initiative with tenants ecological activities.
▪ Initiatives for officers and employees of the asset
management company
Efficient
Capital
Management
4
▪ Optimize capital mix and prudent capital management
▪ Manage schedule of debt repayment matching with
asset portfolio performance
FIRM will implement business framework to enhance performance and achieve target DPU for unitholders of FTREIT and shareholders of FIRM
Financial Review
12
4QFY19 Highlights
13
Growth continues in FY2019
14
Distribution 4QFY19 and FY2019
15
Financial Performance for year-ended 30 September 2019
16
Balance Sheet
17
Capital Management
As at 30 September 2019
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.
4. Refinanced by issuance new units on Jan’20.
Investment in FY2019
Frasers logistic Bangna, Chachoengsao, Thailand
19
Growth from Acquisition in FY2019
• In FY2019, FTREIT has acquired assets from Sponsor and Third-party.
• Total investment value is THB 3,201 million(1) and Net leasable area (NLA) for new assets = 120,979 SQ.M (40 Units).
• Assets are located in 6 provinces (Chonburi, Rayong, Samutprakarn, Ayutthaya, Pathumthani and Prachinburi), 11
locations which are strategic locations for industrial and logistic hubs in Thailand.
Investment Highlight and asset performance as of 30 September 2019
NLA OCR% Quality tenants
120,979
SQ.M. 100%(2) 18Total Inv Value
THB
3,201
Million(1)
Located in
6 Provinces
11 Locations
Tenants
LogisticsElectronicsAutomotive Others
(1) FPIT properties value is THB 2,544 Million (Exclude acquisition expenses) and CTD cold storage value is THB 657 Million (Exclude acquisition expenses and Tax)
(Value of CTD property included VAT is THB 661 Million), CTD will transfer remaining equipment after CTD clearing VAT and documents with Customs, transfer schedule will not late than 31 January 2020
(Value of properties including VAT is THB 3,205 Million)
(2) Included guarantee rental and service income (occupancy rate excluded guarantee is around 95%)
100% Freehold
20
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
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
21
Divestment of factory and warehouse
• Divested 1 unit of factory at Amata City Chonburi province to MIC Industry/3 on 1 Nov 2018 and
• Divested 1 unit of warehouse at Rojana Industrial Park Prachinburi to Siam Nistrans/4 on 26 Nov 2018
• Sales price was above around 23% of initial purchase price/1
• Net gain from divestment of THB 52 million/2 over investment cost
• Asset had been vacant around 1 Year (for WH)
• Factory ages is around 22 years and warehouse ages is around 4 years (on divestment date)
1.Assets were original FTREIT properties, investment cost is THB 223 million
2.Excluding acquisition expense.
3.MIC Industry is electronics parts producer (air conditioner, electronics panel)
4.Siam Nistrans is Ground/Air/Maritime logistics provider
THB
275
million
A1.75
W1 RP1
AMN
Sales Considerations Investment cost
THB
223
million
Gain/5
THB
52
million
-
[Gain over investment
cost = 23%]
5.Gain from divestment in PL= Sales considerations – investment cost
Gain
from divestment
Reduce Expenses
from holding
of unoccupied
assets
=
22
FTREIT Growth Story
Portfolio Value (THB Billion)
4.1
At IPO
37.0
Current
(Nov’19)
Assets Value
Since listing in Jan
2015, FTREIT’s
portfolio value has
grown by 10x with
geographical
diversification
FTREIT Investment Properties Value Movement (THB Billion)(1)
(1) Reference from audited financial statement
+New
Assets+New
Assets
IPO
In Jan 2015
• 44 Properties
• NLA 204,503 sqm
• Occupancy 100%
1st Additional Capital
In Dec 2015
• 53 Properties
• NLA 155,182 sqm
• Occupancy 100%
Conversion PFPO
In Dec 2017
• 390 Properties
• NLA 1,112,705 sqm
• Occupancy 100%
Invest in Sponsor
Assets
In Aug and Dec 2018
• 58 Properties
• NLA 151,881 sqm
• Occupancy 100%
1st Third Party Assets
In Aug and Dec 2018
• 2 Properties
• NLA 6,000 sqm
• Occupancy 100%
Sponsor and third
Assets
In Sep – Oct 2019
• 7 Properties
• NLA 48,204 sqm
• Occupancy 100%
1
BP1 Unit W4 BP3 Unit W5 FPIT Bangna AMC Unit M2.5 Star Micronics
2 3 4 5 6
FTREIT Historical Asset Acquisition since IPO
Portfolio Overview
FPIT BangnaFPT Properties Chonburi
24
FTREIT Portfolio Snapshot as of 30 September 2019
25
FTREIT Tenant Base end of FY2019
✓ An extensive tenant base of 264 clients creates a network that reduces overall exposure to any one particular sector
Logistics Electronics
Retails E-Commerce Others
Automotive
26
Well-diversified Tenant BaseHigh quality, diversified tenant base underpinned by primary industries including Automotive, logistics
services, electronics, retails and e-commerce.
27
Summary Performance of FY2019Overall performance of FTREIT FY2019 is improve from last fiscal year that came from tenants of existing assets and new assets
1.Vacant unit in this area has already been occupied by new tenant
28
FY2019 Key Take Away
Subsequent EventAssets Acquisition in 1QFY2020
FPIT BangnaFPT Properties ChonburiLaemchabang 3, Chonburi, Thailand
30
Strategically Located Across Logistic and Industrial area
LCB1
LCB2
LCB Area
Post-acquisition, FTREIT will be a key logistic space provider in
Laemchabang area which close to LCB deep sea port
Strategic holding assets around LCB Deep Seaport
18 Units
LCB3+24 units
LCB1
21 Units
Sriracha
8 Units
Borwin
9 Units(1)
ES1A
7 Units
= New Properties
Existing Properties
W
LCB Port
63Units
87Units
+3+24
Note: Map reference from Google Map
(1) WHA Hemraj Industrial Estate (Bowin) consisted of factory 3 units and warehouse 9 units
(2) Wangnoi area is main cold storage hub in Thailand since many food producers set up production facilities in around Ayutthaya, Food producer will send their food
products to stock in cold storage in Wangnoi area before distribute to Bangkok and Airport.
(3) Properties in Laemchabang Industrial Estate is new location to FTREIT’s portfolio and these location is the first location which properties closely located to Deep sea port
80%
16%
4%
Percentage of total trade by port [million TEU]
LaemChabang
Bangkok
Others(1)
Automation system in Phase3
AModern loading & unloading B
Autonomous container transportation
C Autonomous yard managing device
LCB Deep sea port Phase3
LCB Phase 3 can service larger ship dimension
Increase capacity from 10,000 TEU to 15,000 TEU
Laemchabang deep sea port phase 3 will enhance
logistics/Industrial activity and services in around LCB area
Expansion Highlight:
➢ Increase container throughput from
7.7 million containers per year to
18.1 million containers per year.
➢ LCB port will be largest port in
Indochina and largest domestic port
after completion of Phase 3
31
New Properties – Sahathai Property (K9) Project (3rd Party)
K9 (LCB3) 24 Units 80,216 Sq. m.
Investment Highlight
✓ One of the biggest warehouse in free zone area
that not far from LCB port
✓ Connected to Highway no 7 and Motorway which
easily to deliver goods and products to LCB port
and Bangkok.
✓ High standard warehouse in LCB area with floor
loading around 3.5 – 5.0 tons and height around
10.5 – 12 meters
Land Area 125 Rais or 50,000 Sq. w.
Net Leasable Area 80,216 Sq. m.(1)
Asset Type Freehold
Occupancy Rate 100%
Weighted Average
Lease Expiry (WALE)1.80 Years(1)
Property Ages ~4.3 years
Note : WALE, property ages and occupancy rate is information as of 30 November 2019
1. included Customs office 204 sq. m. which cannot be leased to tenants
Tenants
Pacific Sugar
Co., ltd
Suzuyo Distribution
Center
ALPS Logistics
Co., Ltd
Michelin Siam
Co., Ltd
Acquired in 1QFY2020