Agenda Key Highlights for FY11/12 Financial Highlights - - PDF document

Review of FY11/12 Performance Annual General Meeting 2012

Business & Science Park Light Industrial Logistics and Distribution

Hi-Tech Industrial

Warehouse Retail Facilities

Managed by Ascendas Funds Management (S) Ltd.. 2

Agenda

• Key Highlights for FY11/12
• Financial Highlights
• Investment Highlights
• Capital & Risk Management
• Proactive Asset Management
• Outlook

Managed by Ascendas Funds Management (S) Ltd.. 3

Key Highlights for FY11/12

• Financial Performance

Gross revenue 12.4% y-o-y to S$503.3 million. NPI 8.5% y-o-y to S$368.3 million Total amount available for distribution 13.6% y-o-y to S$281.7 million DPU of 13.56 cents, 2.5% y-o-y despite 11.2% increase in number of units outstanding Net revaluation gain of about S$224.5 million. Total assets of about S$6.6 billion and NAV of S$1.878 per unit

• Yield accretive investments

Total investment volume of S$946.4 million S$545.4 million in acquisitions of income producing properties S$248.2 million in development projects S$152.8 million in asset enhancement projects Maiden investment in Beijing, China

Managed by Ascendas Funds Management (S) Ltd.. 4

Key Highlights

• Proactive Capital Management

Strong balance sheet: 32.1% aggregate leverage after equity fund raising in May 2012 to fund committed investments Extended tenure of debt to 4.6 years through issuance of 10-year and 12-year medium term note in 4QFY11/12 Continue to diversify sources of debt through issuance of Yen denominated notes but no FX risk exposure

• Positive Portfolio Performance

Diversified portfolio with 101 properties in Singapore and 1 business

park property in China

Healthy portfolio performance: Positive rental revision of between

5.2% and 15.7% across all segments of portfolio

• ccupancy y-o-y on a same store basis: about 0.4% pt and 0.7%

pt to 92.8% and 96.4% for multi-tenanted buildings and portfolio respectively

Managed by Ascendas Funds Management (S) Ltd.. 5

Agenda

• Key Highlights
• Financial Highlights
• Investment Highlights
• Capital & Risk Management
• Proactive Asset Management
• Outlook

Managed by Ascendas Funds Management (S) Ltd.. 6

A-REIT’s Steady Growth since 2002

• Portfolio : 8 properties at listing 102 properties as at 31 Mar 2012
• AUM from $0.6 bn $6.6 bn
• Steady increase in income available for distribution while maintaining aggregate

leverage at a healthy level

S$’m

• No. of Properties

Managed by Ascendas Funds Management (S) Ltd.. 7

DPU Performance since listing

DPU achieved a 6.6% CAGR despite the unit base grew 383% from 545,000 units at IPO to 2,085 m units as at 31 Mar 2012

545.0 702.2 1,160.6 1,227.2 1,321.6 1,325.6 1,683.5 1,871.2 1874.3 2,085.1 7.63 8.16 9.56 11.68 12.75 14.13 15.18 13.10 13.23 13.56 0.0 500.0 1,000.0 1,500.0 2,000.0 2,500.0

• 2.00

4.00 6.00 8.00 10.00 12.00 14.00 16.00 Units in issue ('m) Distribution per Unit (cents)

S$’000 cents Managed by Ascendas Funds Management (S) Ltd.. 8

FY11/12 vs FY10/11

(S$’000) FY11/12(1) FY10/11(1) % inc/(dec) Gross revenue(2) 503,304 447,634 12.4 Less: Property operating expenses(3) (134,967) (108,208) 24.7 Net property income 368,337 339,426 8.5 Income available for distribution 277,750 243,185 14.2 Distribution from capital (4) 3,993 4,768 (16.3) Total amount available for distribution 281,743 247,953 13.6

• No. of units in issue (m)

2,085.1 1,874.3 11.2 Distribution Per Unit (cents) 13.56 13.23 2.5

Notes: (1) Based on 102 properties as at 31 Mar 2012 and 93 properties as at 31 Mar 2011. (2) Gross revenue increase mainly due to completion of development projects and acquisitions since Mar 2011. (3) Property operating expenses are higher in FY11/12 due to increased number of properties from the completion of development projects and new acquisitions since Mar 2011, higher electricity charges and land rent. (4) This relates to a distribution which is classified as capital distribution from a tax perspective, equivalent to the amount of interest income (net of tax) from a finance lease with a tenant. Such distribution is not taxable in the hands of Unitholders, save for Unitholders who are holding the units as trading assets

Managed by Ascendas Funds Management (S) Ltd.. 9

Agenda

• Key Highlights
• Financial Highlights
• Investment Highlights
• Capital & Risk Management
• Proactive Asset Management
• Outlook

Managed by Ascendas Funds Management (S) Ltd.. 10

Investment Highlights

• Disciplined & Yield-accretive Investments

Total FY11/12 committed investments of S$946.4 million

S$545.4 million in acquisitions of seven income producing properties S$248.2 million in three development projects S$152.8 million in five asset enhancement projects Maiden investment in Beijing, China: Acquisition of a business park

facility in Zhongguncun (中关村)，within the Haidian district

Managed by Ascendas Funds Management (S) Ltd.. 11

Investment Highlights

Acquisition of income producing properties

Segment Acquisitions Value (S$m) Status Business Park Nordic European Centre 121.6 Completed in Jul 2011 Business Park Ascendas Z-Link in Beijing, China 61.8 Completed in Oct 2011 Business Park 3 Changi Business Park Vista 80.0 Completed in Dec 2011 Hi-Tech Industrial Corporation Place 99.0 Completed in Dec 2011 Business Park Cintech I to IV (3 properties) 183.0 Completed in Mar 2012 Total (Acquisitions) 545.4

• 7 properties totalling S$545.4 million

Managed by Ascendas Funds Management (S) Ltd.. 12

Acquisition Highlights

• Business Parks

Name Nordic European Centre Segment Business Park Address 3 International Business Park Description 7- storey business park building which is easily accessible via major expressways. Sited within the Jurong Lake District Masterplan area, this is A- REIT’s 6th property in the International Business Park Purchase Price S$121.6 million Revaluation S$122.0 million (as at 31 Mar 2012) Name 3 Changi Business Park Vista Segment Business Park Address 3 Changi Business Park Vista Description Easily accessible via major expressways, a 6- storey business park building with a 2-level basement carpark. This is A-REIT’s 6th property in Changi Business Park Purchase Price S$80.0 million Revaluation S$80.0 million (as at 31 Mar 2012)

Managed by Ascendas Funds Management (S) Ltd.. 13

Acquisition Highlights

Name Corporation Place Segment Hi-tech Industrial Address 2 Corporation Road Description Easily accessible via the Ayer Rajah Expressway. Located at the junction of Jalan Ahmad Ibrahim, Corporation Place is a 7-storey multi-tenanted hi- spec industrial building with amenities and a basement car park Purchase Price S$99.0 million Revaluation S$110.0 million Name Ascendas Z-Link Segment Business Park (China) Address Block 17, No 8 Dongbeiwang West Road, Zhongguancun, Beijing Description A-REIT’s first property in China. 3-storey multi- tenanted business park building (27,450 sqm) with 4 inter-connecting blocks and one level basement car park. 100% occupied by prominent tenants such as Baidu.com and Raisecom Purchase Price RMB300 million (approx S$61.8 million) Revaluation RMB308.6 million (Approx. S$61.8 million)

Managed by Ascendas Funds Management (S) Ltd.. 14

Acquisition Highlights:

Cintech I - IV

• Portfolio of four multi-tenanted properties on

three land titles for a purchase price of S$183.0 million

• Further

strengthen A-REIT’s market position in the Science Park segment

• Opportunity

for greater efficiency and economies of scale in operations

• NPI yield of 7.3%
• Completed on 29 March 2012

Cintech II Cintech II Cintech III Cintech IV A-REIT’s properties within Singapore Science Park 1

Managed by Ascendas Funds Management (S) Ltd.. 15

Acquisition Highlights:

Ascendas Z-Link in Z-Park

Ascendas Z-Link In Beijing, China

• Located in Zhongguancun Software Park (Z-Park) (中关村软件园)
• Z-Park has two construction zones, compriising over 292 hectares of land
• Over 180 resident companies with nearly 15,000 professionals.
• About five minutes’ drive to the 5th Ring Road and Badaling Expressway and about 15

minutes’ walk to the Metro Light Railway Xi Er Qi (西二旗) Station

Zhongguancun Software Park (Z-Park) Managed by Ascendas Funds Management (S) Ltd.. 16

A-REIT’s China Strategy

• Provide one-stop real estate services to A-REIT’s customers in

Singapore and China

• Provide access to real estate markets where Unitholders could not

access efficiently on their own

• Provide Unitholders with a geographically diversified portfolio and an
• pportunity to ride on growth of China
• Provide one-stop real estate services to A-REIT’s customers in

Singapore and China

• Provide access to real estate markets where Unitholders could not

access efficiently on their own

• Provide Unitholders with a geographically diversified portfolio and an
• pportunity to ride on growth of China
• Investments with good property fundamentals and/or potential asset

enhancement opportunities

• Business & science parks, logistics and distribution centres, warehouse

retail facilities

• Complement A-REIT’s existing portfolio to further enhance its footprint

in the business space and industrial property arena

• Investments with good property fundamentals and/or potential asset

enhancement opportunities

• Business & science parks, logistics and distribution centres, warehouse

retail facilities

• Complement A-REIT’s existing portfolio to further enhance its footprint

in the business space and industrial property arena

• Initial focus on major tier one cities such as Shanghai & Beijing
• Initial focus on major tier one cities such as Shanghai & Beijing

Why What Where

Managed by Ascendas Funds Management (S) Ltd.. 17

Investment Highlights

Development projects

• Completed built-to-suit logistics facility for FedEx Singapore
• New projects to enhance A-REIT’s footprint in one-north region

Segment Development Project Est. Cost (S$ m) Revaluation as at Mar 2012 (S$ m) Expected Commence ment Expected Completion

Logistics 90 Alps Avenue (Fedex) 37.9 48.5 Completed Business Park Unilever Four Acres Singapore 32.3 n.a. Started 1Q 2013 Business Park Business Park facility at Fusionopolis 178.0 n.a. Started 3Q 2013 Total (Development) 248.2

Managed by Ascendas Funds Management (S) Ltd.. 18

Leveraging Development Capabilities:

Cumulative S$273.5 m capital gains

A-REIT Development Capabilities Sector Development Cost (S$m) Revaluation as at 31 Mar 2012 (S$’m) Completion 1 Courts Megastore Warehouse Retail Facility 46.0 65.0 Nov 2006 2 Giant Hypermart Warehouse Retail Facility 65.4 88.0 Feb 2007 3 HansaPoint @ CBP Business Park 26.1 83.5 Feb 2008 4 15 Changi North Way Logistics 36.2 46.5 Jul 2008 5 Pioneer Hub Logistics 79.3 107.5 Aug 2008 6 1,3 and 5 Changi Business Park Crescent Business Park 200.9 304.4 Feb 2009, Sep 2009, Dec 2010 7 71 Alps Avenue Logistics 25.6 29.0 Sept 2009 8 38A Kim Chuan Road Hi-Tech Industrial (Data Centres) 170.0 174.3 Dec 2009 9 90 Alps Avenue Logistics 37.9 48.5 Jan 2012 10 FoodAxis @ Senoko Light Industrial 57.8 72.0 Feb 2012 Total 745.2 1,018.7

Managed by Ascendas Funds Management (S) Ltd.. 19

• Located at the eastern part of Singapore, in

close proximity to the Airport Logistics Park of Singapore

• A part 1-storey, part 2-storey air cargo express

facility

• GFA: 26,277 sqm
• 100% committed by FedEx for 10 years with

annual rental reversion and option to renew for another 2 terms of 5 years each

• Commenced in Oct 2010
• Completed in Jan 2012

Artist impression Completed Development :Jan 2012

Development Highlights:

FedEx Singapore Regional Hub at 90 Alps Avenue

Managed by Ascendas Funds Management (S) Ltd.. 20

• Built-to-suit

facility for Unilever Asia Private Limited

• Unilever’s

first global leadership development centre in Asia and second in the world

• Land area of 22,950 sqm
• Total

GFA

• f

about 9,180 sqm comprising a 3-storey training block, a 1-storey business and recreational centre and 10 black-and-white bungalows

• Expected completion in 1Q 2013

Development Highlights:

Unilever Four Acres Singapore

Dec 2011

Mar 2012

Managed by Ascendas Funds Management (S) Ltd.. 21

Development Highlights:

Business Park development at Fusionopolis

• Located within the one-north masterplan area in

the central part of Singapore. Easily accessible via major expressways and proximity to the one- north Mass Rapid Transit station

• Development of 2 blocks of 6-storey business

park and

• ffice-mix

use development with basement car parks, a landscape skybridge at 3rd storey and a central landscape plaza at 1st storey

• GFA of 25,510 sqm
• Expected completion: 3Q 2013

Artist Impression Dec 2011: Construction in progress Location map of business park land site at Fusionopolis

Managed by Ascendas Funds Management (S) Ltd.. 22

Investment Highlights

Asset Enhancement projects

• Maximising plot ratio
• Repositioning for higher value usage
• Enhancing attactiveness & marketability

Building Value (S$ m) Status Techview 4.3 Completed Food Axis @ Senoko 57.8 Completed Phase 1, 10 Toh Guan Road 20.2 Completed Phase 2, 10 Toh Guan Road 13.5 Started 2H 2012 9 Changi South Street 3 14.6 Started 1Q 2013 TechPlace II (new block) 42.4 Started 4Q 2013 Total (Asset Enhancement) 152.8

Managed by Ascendas Funds Management (S) Ltd.. 23

Completed Asset Enhancement:

Techview

• Reconfigured floor plates to create an

internal courtyard on upper levels of the building to its enhance attractiveness and value

• Property will benefit from the planned

DTL3 MRT Station exit within its compound when the station is

• perational in 2017

After asset enhancement: Creation of internal courtyard to allow natural lighting

Managed by Ascendas Funds Management (S) Ltd.. 24

Completed Asset Enhancement:

FoodAxis @ Senoko

Artist Impression

• Redevelop to maximise plot ratio from 0.6x to maximum of

2.5x, creating an additional GFA of 34,519 sqm; Total GFA of 43,362 sqm

• Located at the

northern part

• f Singapore and easily

accessible by major expressways

• Currently 32.6% occupied with another 40.2% under different

stages of negotiation

Before redevelopment

Managed by Ascendas Funds Management (S) Ltd.. 25

Asset Enhancement:

10 Toh Guan Road

• Sited within the new Jurong Lake District regional

centre; within walking distance to Jurong East MRT station and major retail malls

• Reposition property for higher value usage over

two phases

• Phase

1 completed and showroom is fully

• ccupied
• Phase 2: creation of hi-spec industrial space,

more parking space and enhancement

• f

external façade

• Expected completion: 2H 2012

Phase 1 completed: Conversion of ASRS space to showroom Phase 2 in progress: Conversion of ASRS space to

• ffice space and enhancement of facade

Artist impression Managed by Ascendas Funds Management (S) Ltd.. 26

Asset Enhancement:

9 Changi South Street 3

Location map Source: onemap.com.sg 9 Changi South Street 3.

• Strategically

located in Changi International LogisPark and is easily accessible via the East Coast Park Expressway

• Decommissioned about 3,007 sqm by

removal of automated storage & retrieval system

• Maximise plot ratio from 1.6x to 1.98x

creating additional GFA of 5,200 sqm to 25,270 sqm

• Est cost: S$14.6 million
• Expected completion in 1Q 2013

Mar 2012: Work in progress

Managed by Ascendas Funds Management (S) Ltd.. 27

Asset Enhancement:

Techplace II

• Strategically located in Ang Mo Kio and

easily accessible to the Central Expressway and MRT station

• Property currently comprises a total of 6

blocks of flatted factory buildings and a canteen block

• Developing a new factory block of about

24,016 sqm with ancillary F&B space through the maximisation of plot ratio from existing 2.05x to 2.5x

• Enhancement
• f

external façade to increase marketability

• Est cost: S$42.4 million
• Est completion: 4Q2013

Mar 2012: Work in progress Artist impression of new block Location map Source: onemap.com.sg Techplace II Managed by Ascendas Funds Management (S) Ltd.. 28

Acquisition Highlights:

Forward purchase of business park property in China

Details Forward purchase

• f

business park property at Jinqiao within JEPZ, Pudong New District, Shanghai, China Specifications 8 blocks with total GFA of 79,880 sqm Location Located in North Jinqiao and within the Jinqiao Export and Processing Zone Near the Waihuan (External Ring) Expressway and 30km from Pudong International Airport. In close proximity to a Line 9 subway station Targeted tenants MNCs and large local enterprises Leasable Area 79,880 sqm Purchase Price S$117.6 million Expected completion 1H 2013

Artist impression of the Business Park Property

Managed by Ascendas Funds Management (S) Ltd.. 29

Proposed Divestment:

Goldin Logistics Hub

• Located at 6 Pioneer Walk within the Jurong Industrial Estate
• 2-storey warehouse with a ramp-up driveway and a 4-storey ancillary
• ffice as well as a single storey workshop and a container yard
• Gross floor area of 20,094 sqm
• Remaining land tenure of about 24 years
• Sale price of S$32.0 million

42.2% premium

• ver

the

• riginal

purchase price

• f

S$22.5 million in 2007

• Divestment is in-line with the

Manager’s proactive asset management strategy

Managed by Ascendas Funds Management (S) Ltd.. 30

Agenda

• Key Highlights
• Financial Highlights
• Investment Highlights
• Capital & Risk Management
• Proactive Asset Management
• Outlook

Managed by Ascendas Funds Management (S) Ltd.. 31

Healthy Capital Structure

• Strong balance sheet with 32.1%

aggregate leverage after equity fund raising in March 2011

Issue price of S$1.99 (6.0% above NAV) Aggregate leverage expected to increase to 34.5% after funding committed investments

• Diversified sources of funding

Issuance of 10-year and 12-year note in Feb & April 2012 respectively About 58.6%

• f

A-REIT’s total investment properties are unencumbered Bank loans are mainly from committed facilities

• Moody’s

Investor Services Corporate Family Rating of A3

Highest rating amongst industrial S- REITs

$395

$300

$125 $200

$148 $154

$3 $132 $150 $375

$19

$104

50 100 150 200 250 300 350 400 450 2012 2013 2014 2015 2016 2017 2018 2022 2024

Committed Revolving Credit Facility Term Loan Facility (RMB) Term Loan Facility Medium Term Note (JPY) Medium Term Note Exchangeable Collateralised Securities Commercial Mortgage Backed Securities

S$’m Immediately swapped into S$ upon issuance to eliminate forex exposure

Managed by Ascendas Funds Management (S) Ltd.. 32

Agenda

• Key Highlights
• Financial Highlights
• Investment Highlights
• Capital & Risk Management
• Proactive Asset Management
• Outlook

Managed by Ascendas Funds Management (S) Ltd.. 33

Well Diversified Portfolio

• by Lease Tenure

Mix of Single-tenanted vs Multi-tenanted Buildings

Long term leases typically with periodic rental escalation,

• f

which 32.2% of these leases are pegged to CPI by asset value Typically 3-year rolling leases Multi- tenanted Buildings 62% Single- tenanted Buildings 38%

Managed by Ascendas Funds Management (S) Ltd.. 34

Well Diversified Portfolio

• by value of Investment Properties

Single-tenanted buildings Multi-tenanted buildings

• About 60% of Logistics & Distribution Centres (by gross floor area) are single storey / multi-storey facilities with vehicular ramp access.
• Hi-Tech Industrial (Data Centres) and Warehouse Retail Facilities are single-tenanted properties while flatted factories are multi-

tenanted properties

92% 8%

73% 27% 31% 69% 44% 56%

73% 27%

Managed by Ascendas Funds Management (S) Ltd.. 35

Occupancy History: Stable through the cycles

Notes: Singapore GDP Growth numbers are based on calendar year. A-REIT’s occupancy for FY11/12 is based on a same-store basis for comparison with FY10/11 Source: Singapore Purchasing Manager’s Index (PMI), Singapore Department of Statistics, Singapore Ministry of Trade & Industry and A-REIT

82.5% 88.8% 94.1% 95.0% 96.6% 98.4% 97.8% 95.7% 96.0% 96.4% 82.5% 85.1% 89.0% 91.4% 93.7% 96.4% 95.3% 91.2% 92.1% 92.8% 4.2% 4.6% 9.2% 7.4% 8.7% 8.8% 1.5%

• 0.8%

14.5% 4.9% 49.7 53.4 50.8 49.6 51.1 49.4 47.1 51.1 50.1 50.2 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0

• 20.0%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 Singapore Puchasing Manager's Index (PMI)

Portfolio Occupancy Multi-Tenanted Building Occupancy Singapore GDP Growth PMI (RHS) Managed by Ascendas Funds Management (S) Ltd.. 36

Sources of New Demand

By net lettable area

Continue to attract demand from a wide spectrum of industries

Financial Service Biomedical Telecommunication & Datacentre Precision Engineering IT Electronics Structural Engineering Others General Manufacturing Lifestyle and Services Food Products & Beverages Transport and Storage 1% 5% 4% 11% 6% 5% 7% 10% 4% 7% 7% 33% 1% 1% 2% 3% 6% 7% 7% 10% 11% 24% 28% 4QFY11/12 FY11/12 0%

Managed by Ascendas Funds Management (S) Ltd.. 37

Lease Expiry Profile as at 31 May 2012

1.2% 8.4% 5.8% 3.4% 4.2% 0.9% 0.8% 1.3% 3.3% 1.4% 1.0% 1.9% 2.8% 9.9% 17.5% 15.9% 8.3% 3.1% 2.6% 2.2% 1.0% 3.0% 11.0% 25.9% 21.8% 11.6% 7.3% 3.5% 2.9% 1.3% 4.3% 1.4% 1.2% 5.0% 2.8% 0% 10% 20% 30%

% of A-REIT Property Income

Single-tenanted Buildings Multi-tenanted Buildings

• Weighted average lease to expiry of 3.9 years
• About 11.0% due for renewal in the balance of FY12/13. Lease expiry is well

spread, extending beyond 2025

Science Parks, 19.3% Business Parks, 24.0% Hi-Tech Industrial, 14.2% Logistics, 20.9% Light Industrial, 19.3% A-REIT China, 2.2%

Managed by Ascendas Funds Management (S) Ltd.. 38

Tenants’ Industry Diversification

By gross revenue

* Note: Others include shipping, technology support industries, testing & certification and technical centre for systems and repair as well as tenants in the warehouse retail facilities

> 20 industries

13.0% 0.8% 1.0% 1.0% 1.0% 1.2% 1.3% 1.3% 1.4% 1.5% 1.9% 2.2% 5.7% 5.8% 6.6% 9.4% 9.7% 9.9% 10.9% 14.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% Others Repair and Servicing of vehicles Construction Hotels and restaurants Printing & Reproduction of Recorded Media Fabricated Metal Products Healthcare Products Medical, Precision & Optical Instruments, Clocks Chemical Rubber and Plastic Products Textiles & Wearing Apparels Food Products & Beverages Distributors, trading company Life Science Financial Information Technology M&E and Machinery & Equipment Telecommunication & Datacentre Electronics 3rd Party Logistics, Freight Forwarding

Managed by Ascendas Funds Management (S) Ltd.. 39

Low exposure to conventional manufacturing

Tenants’ business activities by net lettable area

• 20.3% of NLA occupied by tenants

engaged in conventional manufacturing activities

• Manufacturing activities include food

& beverages, aeronautical auxiliary equipment, precision engineering etc.

• Non-manufacturing activities include

R&D, backroom

• ffices,

telecommunications & data centre, software and media consultancy services as well as transport & storage

Manufacturing 19.6% Non- Manufacturing 79.7% Manufacturing 20.3%

As at 31 March 2012 Managed by Ascendas Funds Management (S) Ltd.. 40

Quality and Diversified Tenant Base

• Total tenant base of over 1,100 tenants
• Top 10 tenants account for 25.5% of total portfolio income

6.0% 3.7% 2.8% 2.8% 2.0% 1.7% 1.7% 1.6% 1.6% 1.6% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% SingTel C&P Holdings Pte Ltd Citibank, N.A Creative Technologies DBS Bank Federal Express Corporation Biomedical Sciences Institutes Siemens SENKEE Logistics Cold Storage

Managed by Ascendas Funds Management (S) Ltd.. 41

Diversified Portfolio

No single property accounts for more than 4.5% of A-REIT’s monthly gross revenue

1, 3, 5 Changi Business Park Crescent, 4.5% C&P Logistic Hub, 3.7% TelePark, 3.4% Neuros, 3.5% Corporation Place, 3.3% Kim Chuan Telecommunication Complex , 3.1% TechPoint, 2.9% 31 International Business Park, 2.8% TechPlace II, 2.8% Techlink, 2.6% TechPlace I, 2.2% Pioneer Hub , 2.2% The Alpha, 2.0% The Capricorn, 2.0% The Gemini, 2.0% Siemens Centre, 1.9% DBS Asia Hub, 1.9% Changi Logistics Centre, 1.8% HansaPoint@CBP, 1.8% Techview, 1.8% Acer, 1.8% Nordic, 1.8% CBP Vista, 1.7% Senkee Logistics , 1.6% Giant, 1.5% HP , 1.4% Courts Megastore, 1.3% Infineon Building, 1.3% Pacific Tech Centre, 1.2% Honeywell Bldg, 1.1% Others, 33.1% Managed by Ascendas Funds Management (S) Ltd.. 42

Segmental Rental Performance

Multi-tenanted properties (1) Net lettable area (sqm) Vacant space (sqm) FY11/12 increase in renewal rates (2) 4Q FY11/12 Increase in renewal rates (3) Increase / (decrease) in new take up rates (4) As at 31 Mar 2012 Business & Science Park 357,687 25,151

6.0% 4.4% 2.3%

Hi-Tech Industrial 259,933 39,414

5.2% 14.9% (9.1)%(5)

Light Industrial 271,791 43,725

11.0% 15.8% 3.7%

Logistics & Distribution Centres 297,489 18,847

15.7% 12.5% 21.1%(6)

Notes : (1) A-REIT’s Singapore portfolio only (2) FY11/12 renewal rental rates versus previous contracted rates (3) 4QFY11/12 renewal rental rates versus previous contracted rates (4) Rental rates for new take up (including expansion by existing tenants) in 4QFY11/12 versus new take-up rental rates achieved in 3QFY11/12 (5) New take up rate in the Hi-Tech Industrial segment declined by 9.1% due to quantity discount given to a new large space user (6) New take up rate in the Logistics & Distribution Centres segment increased by 21.1% due to ground floor warehouse space leased in the eastern part of Singapore which typically commands a higher rental rate

Positive rental reversions registered across all segments

A-REIT China Increase in renewal rates Ascendas Z-Link 42.9%

Managed by Ascendas Funds Management (S) Ltd.. 43 Left Axis Right Axis

In-place rent for space due for renewal

in FY12/13 & FY13/14

• Current market rental rate is between 16% and 32% higher than the weighted average

passing rental for the area due for renewal in FY12/13

Managed by Ascendas Funds Management (S) Ltd.. 44

Agenda

• Key Highlights
• Financial Highlights
• Investment Highlights
• Capital & Risk Management
• Proactive Asset Management
• Outlook

Managed by Ascendas Funds Management (S) Ltd.. 45

Market Outlook

• According to Ministry of Trade & Industry’s (MTI), Singapore’s

economy expanded by 1.6% y-o-y in 1Q 2012 largely due to an upturn in the manufacturing sector, posting an expansion of 14.7% compared to the 11.1% contraction in the prior quarter. GDP forecast is maintained at between 1% and 3%

• The Urban Redevelopment Authority 4Q 2011 statistics showed

that both the industrial rental and price indices grew at a slower pace of 0.4% and 4.0% respectively compared to a growth of 7.0% and 2.4% respectively in 3Q 2011.

• In the new financial year ending 31 March 2013, A-REIT has about

13.8% of its revenue due for renewal. Current market rental rate is between 16% and 32% higher than the weighted average passing rental for the space due for renewal in FY12/13.

• Full year income contribution from acquisitions and developments

completed in FY11/12 is expected in the new financial year.

Managed by Ascendas Funds Management (S) Ltd.. 46

A-REIT's strengths

Diversity and Depth

• Largest business and industrial REIT in Singapore
• Solid and well diversified portfolio

Six property segments Well-located quality properties Balance of long term vs short term leases provides stability with potential for positive rental reversions No single property accounts for more than 4.5% of revenue High predictability and sustainability in income

Strong Sponsor

• Sponsor Ascendas has a track record of more than 20 years in this

sector

• Committed sponsor and alignment of interest with A-REIT unitholders

Managed by Ascendas Funds Management (S) Ltd.. 47

A-REIT's strengths

• Downside protection in earnings
• Stable portfolio with 86.2% of portfolio revenue committed for the FY

and a portfolio average lease to expiry of about 4 years.

• Mix of long term and short term leases provide earnings stability

Long term leases have a weighted average lease to expiry of about 6 years and are backed by an average of 10 months’ rent in security deposits Long term leases have built-in rental escalation

• Diversified portfolio capable of serving the needs of users in diverse

sectors

• Hedge against Inflation
• 38% of leases are long term with periodic rental escalation, of which

about 32.2% have CPI-based adjustment

Managed by Ascendas Funds Management (S) Ltd.. 48

A-REIT's strengths

Development capability

• Has capability and capacity to create own assets which could be more

yield accretive than acquisitions of income producing properties Operational platform (Property Manager, Ascendas Services Pte Ltd)

• Dedicated asset management, sales/marketing, leasing and property

management team of over 100 people

• Possess in-depth understanding of the property sector

Customer focus

• Over 1,100 tenants (international and local companies)
• Track record of customers growing with us

Size advantages

• Accounts for 9.5% of S-REIT market capitalization
• Accounts for 10.3% of S-REIT total trading volume in FY11/12
• Included in major indices (e.g. MSCI, FTSE ST Mid Cap Index)

Managed by Ascendas Funds Management (S) Ltd.. 49

A-REIT's strategies

Prudent Capital & Risk Management Prudent Capital & Risk Management Value-Adding Investments Value-Adding Investments Proactive Asset Management Proactive Asset Management Stability Stability Growth Growth Predictable income Predictable income Capital stability Capital stability

Total returns Outcome Strategies Strategies

Proactive and dedicated manager with track record

Fund Manager: Ascendas Funds Management (S) Ltd Property Manager: Ascendas Services Pte Ltd Fund Manager: Ascendas Funds Management (S) Ltd

Perfor- mance Drivers Managed by Ascendas Funds Management (S) Ltd.. 50

Annual General Meeting 28 June 2012

Business & Science Park Light Industrial Logistics and Distribution

Hi-Tech Industrial

Warehouse Retail Facilities

Managed by Ascendas Funds Management (S) Ltd.. 51

1.

• Mr. Koh Soo Keong (Chairman, Independent Director)

2. Ms Chong Siak Ching (Vice Chairman, Non-executive Director) 3.

• Mr. Joseph Chen, (Independent Director, Chairman of Audit Committee)

4.

• Mr. Chia Kim Huat (Independent Director)

5.

• Mr. Henry Tan (Independent Director)

6.

• Mrs. Monica Tomlin (Independent Director)

7.

• Mr. Teo Eng Cheong (Independent Director)

8.

• Mr. Tan Ser Ping (Executive Director, Chief Executive Officer)

9. Ms Tan Shu Lin (Head of Capital Markets and Singapore Operations) 10. Ms Esther Fong (SVP, Trustee Services, HSBC Institutional Trust Services (Singapore) Ltd, Trustee of A-REIT) 11. Mr Brandon Goh (Director, Corporate Finance, DMG & Partners Securities Pte Ltd)

Members of the Panel

11 10 9 8 5 1 2 3 4 6 7 Seating arrangement: Managed by Ascendas Funds Management (S) Ltd.. 52

Resolutions

Managed by Ascendas Funds Management (S) Ltd.. 53

Resolution 1 (Ordinary Resolution)

Ordinary Business To receive and adopt:

• the

Report

• f

HSBC Institutional Trust Services (Singapore) Limited (as Trustee of A-REIT),

• the Statement by Ascendas Funds Management (S)

Limited (as Manager of A-REIT), and

• the Audited Financial Statements of A-REIT for the

financial year ended 31 March 2012 and the Auditors’ Report thereon

Managed by Ascendas Funds Management (S) Ltd.. 54

Resolution 2 (Ordinary Resolution)

Ordinary Business To re-appoint KPMG LLP as Auditors of A-REIT to hold office until the conclusion of the next AGM of A-REIT, and to authorise the Manager to fix their remuneration KPMG LLP has expressed its willingness to continue in office

Managed by Ascendas Funds Management (S) Ltd.. 55

Resolution 3 (Ordinary Resolution)

Special Business To authorise the Manager or, as the case may be, the Trustee, to issue Units and to make or grant instruments convertible into Units and issue Units pursuant to such instruments Such units must not, in aggregate, exceed 50% of the total number of issued units in A-REIT (excluding treasury Units), with a sub-limit of 20% for issues other than on a pro-rata basis to Unitholders, subject to such manner of calculation as may be prescribed by Singapore Exchange Securities Trading Limited

Managed by Ascendas Funds Management (S) Ltd.. 56

Q&A

Managed by Ascendas Funds Management (S) Ltd.. 57

Important Notice This presentation has been prepared by Ascendas Funds Management (S) Limited as Manager for Ascendas Real Estate Investment Trust. The details in this presentation provide general information only. It is not intended as investment or financial advice and must not be relied upon as such. You should obtain independent professional advice prior to making any decision. This presentation is not an offer or invitation for subscription or purchase of securities or other financial products. Past performance is no indication

• f future performance. All values are expressed in Singaporean currency unless otherwise stated.

The value of units in A-REIT (“Units”) and the income derived from them, if any, may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager

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

no right to request the Manager to redeem or purchase their Units for so long as the Units are listed on the SGX-ST. It is intended that unitholders of A-REIT may only deal in their Units through trading on the SGX-ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. The past performance of A-REIT is not necessarily indicative of the future performance of A-REIT.

Thank you

Managed by Ascendas Funds Management (S) Ltd.. 58

Annual General Meeting & Extraordinary General Meeting 28 June 2012

Business & Science Park Light Industrial Logistics and Distribution

Hi-Tech Industrial

Warehouse Retail Facilities