AIM IM In Industri rial l Growth Freehold ld and Le Leasehold - - PowerPoint PPT Presentation

Opportunity Da Day Q1/ 1/2019

AIM IM In Industri rial l Growth Freehold ld and Le Leasehold ld Real l Estate In Investment Tru rust

1

28 May 2019

The material contained in this presentation is for information purposes only and does not constitute an offer invitation

• r recommendation to sell or solicitation of an offer or invitation to purchase or subscribe for units in AIM Industrial

Growth Freehold and Leasehold Real Estate Investment Trust (AIMIRT) in any jurisdiction. Neither this presentation nor anything in it shall form the basis of, or be relied upon in any connection with, any contract or commitment. This presentation has been prepared by AIM REIT Management Company Limited as the REIT Manager of AIMIRT. The information in this presentation has not been independently verified. No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. None of the REIT Manager or any of its advisers or representatives, shall have any liability for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. This presentation and any other information provided in connection therewith, shall not, either in whole or in part, be reproduced, redistributed, or made available to any other person, save in strict compliance with all applicable law.

Disclaimer

2

Content

3

AIMIRT Background & Milestones, Investment Highlights, Unitholders’ Structure

In Intr troduction

01

Asset Profile

Por

• rtf

tfolio Ov Overv rview

02

Occupancy Rate, Tenant Profile, Lease Expiry Profile

Op Operational l Hig Highlights

03

Financial Information, Distribution Payment

Fin Financia ial l Perf erformance

04

Investment Update

Potential Add dditional l Asse ssets ts In Investm tment

05

Opportunity Da Day Q1/ 1/2019

1

Introduction

Name of Trust (English) AIM Industrial Growth Freehold and Leasehold Real Estate Investment Trust Symbol AIMIRT Establishment 22 December 2017 Listed on SET 9 January 2018 REIT Manager AIM REIT Management Company Limited Trustee SCB Asset Management Company Limited Asset Type /1 Warehouse and Cold Storage Investment Type Freehold 100% Land Area 85-2-30 rai Leasable Area 61,267 sq.m. Occupancy Rate 100%

AIMIRT Overview

5 Note: Info as of March 2019

/1 For initial asset investment & additional investment in JWD Pacific Project (Expansion Area) on 21 December 2018

AIMIRT Structure

6

Trust Unitholders

Investment Distribution Appoint Property Management Fee REIT Management Fee Freehold : JWD Project Freehold : TIP 7 Project

Ngan Somboon Company Limited

Monitor and act on behalf

• f unitholders

Fee Lease Rental and Service Fee

Property Manager (for TIP Project) REIT Manager Leaseback Tenants JWD Project Multi-Tenants TIP 7 Project

Lease Rental and Service Fee

Pacific Cold Storage Project JWD Pacific Project Datasafe Project

Trustee

AIMIRT Background & Milestone

7

REIT Manager license was granted by Securities and Exchange Commission (SEC) on 26 January 2017 AIM REIT Management Co., Ltd. became Thailand’s first independent REIT manager AIM Industrial Growth Freehold and Leasehold Real Estate Investment Trust (AIMIRT) was established on 22 December 2017 AIMIRT was listed on the Stock Exchange

• f Thailand (SET)
• n 9 January 2018

Extraordinary General Meeting No. 1/2018 was held on 29 November 2018 The unitholders approved the investment in the additional assets No. 1

Jan 2017 Dec 2017 Jan 2018 Nov 2018

AIMIRT Investment Highlights

8

International-standard cold storage with innovative technology installed to increase efficiency and profitability Premium cold storage and warehouse with high standard construction, proven track record, and excellent capability to generate long-term sustainable income Located in Thailand's major logistics hub and distribution center

100% Occupancy Reputable tenants Long-term lease on average Transparent management

Invest in assets with 100% occupancy rate under reliable lease agreements Industry leaders with competitive advantages More than 90% of lease agreements are at least 3 years or longer Managed by independent REIT manager, approved by The Securities and Exchange Commission (SEC), Thailand

High-quality assets First REIT investing in cold storage High-quality assets Strategic locations

AIMIRT Unitholders

9

Unitholders’ Structure Ra Rank Top

• p 10 Ma

Major Uni nithol

• lders

Uni nits %

1 JWD INFOLOGISTICS PCL 15,500,000 10.00 2 BANGKOK LIFE ASSURANCE PCL 12,006,700 7.75 3 FWD LIFE INSURANCE PCL 10,000,000 6.45 4 B SENIOR CITIZEN MIXED FUND 8,000,000 5.16 5 CIMB-PRINCIPAL PROPERTY INCOME FUND 6,597,100 4.26 6 BUALUANG INCOME FUND 4,100,000 2.65 7

• MRS. SOMSRI KRAISAKDAWAT /1

3,144,000 2.03 8

• MRS. PORNTIP PIBULNAKARINTR /1

3,100,000 2.00 9 THAI LIFE INSURANCE PCL 3,062,000 1.98 10

• MR. PORNSIN KRAISAKDAWAT /1

2,800,000 1.81

Well-balanced proportion of institutional and individual investors

Note:Info as of 4 April 2019

/1 The Kraisakdawat family members (TIP Holding)

JWD 10.00% TIP /1 7.46%

Institutions & Funds 36.02% Retail Investors 46.52% Sponsors 17.46%

2

Portfolio Overview

Proj

• ject

Pac acific Co Cold ld St Storage Proj

• ject

JW JWD Pac acific Proj

• ject /1

/1

Da Datasa safe Proj

• ject

TIP IP 7 7 Proj

• ject

Location Samut Sakhon Chachoengsao Chachoengsao Samut Prakan Property Type Cold Storage Cold Storage Warehouse Warehouse Investment Type Freehold Freehold Freehold Freehold Number of units 2 units 2 units 1 unit 5 units Leasable Area 17,562 sq.m. 12,766 sq.m. 9,288 sq.m. 21,651 sq.m. Lease Arrangement JWD Group Leaseback Multi-Tenants Occupancy Rate 100% 100% 100% 100%

AIMIRT Asset Profile (1)

11 Note: Info as of March 2019

/1 Including additional investment in JWD Pacific Project (Expansion Area) on 21 December 2018

AIMIRT Asset Profile (2)

12

Three strategic locations in Samut Sakhon, Chachoengsao, and Samut Prakan

AIMIRT Asset Profile (3)

13

Cold Storage JWD Project 49.50% Warehouse JWD Project 15.16% Warehouse TIP 7 Project 35.34% JWD Project 64.66% TIP 7 Project 35.34%

21,651 sq.m. 39,616 sq.m.

Property Typ ype

/1

In Investment Typ ype

/1 Note: Info as of March 2019

/1 Percentage of total leasable area of all projects

21,651 sq.m. 30,328 sq.m. 9,288 sq.m.

Warehouse 50.50% 30,939 sq.m. Cold Storage 49.50% 30,328 sq.m. Freehold 100% 61,267 sq.m.

3

Operational Highlights

100% Occupancy Rate

15

Leaseback to JWD Group /2 75.23% Multi-Tenants Lease 24.77%

Note: Info as of March 2019

/1 Percentage of total revenue from all projects’ lease contract /2 Leaseback to JWD Group to operate cold storage and logistics businesses for 10 years, in which AIMIRT will have an option to renew lease contract of PCS Project and JPAC Project for

2 times of 10 years each

Rental Str Structure

/1

Le Leasable Area & Occupancy Ra Rate

58,559 sq.m. 58,559 sq.m. 58,559 sq.m. 61,267 sq.m. 61,267 sq.m.

100% 100% 100% 100% 100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 10,000 20,000 30,000 40,000 50,000 60,000 70,000

Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019

Occupancy Rate (%) Leasable Area (sq.m.)

Leasable Area Occupancy Rate

Well-Established Tenants

16

Tenants’ Nationality

/1

Tenants’ Industry

/1 Note: Info as of March 2019

/1 Percentage of total revenue from all projects’ lease contract

JWD Cold Storage Customers

Thai (Leaseback Tenants) 75.23%

Thai (Multi- Tenants) 6.19%

Japanese (Multi- Tenants) 16.40% Singaporean 2.18%

Cold Storage & Logistics Providers (Leaseback Tenants) Logistics Office Equipment Aviation Parts Air Conditioning System 7.55% 6.48% 6.19% 4.55% 75.23%

13.74% 4.55% 0.00% 0.00% 0.00% 6.48% 75.23% Y2019 Y2020 Y2021 Y2022 Y2023 Y2024 After Y2024

Lease Structure

17 Note: Info as of March 2019

/1 Percentage of total revenue from all projects’ lease contract

• f all lease contracts

More than

80%

will be expired in year 2024 onwards

Le Lease Expiry ry

/1

Le Lease Term

/1

< 3 years 7.55% 3 – 6 years 10.74% >= 6 years 81.71%

4

Financial Performance

Tot

• tal Inc

ncome

Financial Highlights

19

• Stable net investment income generated from

100% occupancy rate

• Q1/2019 total income increased mainly due to

cold storage acquired in Dec 2018 (100%

• ccupancy rate)
• Higher expenses were mostly from operating

expenses (from scheduled assets maintenance) and finance cost (from new asset acquisition)

19

Unit: Million Baht 43.6 44.3 46.6 Q1/2018 Q4/2018 Q1/2019

5.2% QoQ 6.9% YoY

Ne Net Investment Income

Unit: Million Baht 31.9 31.2 31.5 Q1/2018 Q4/2018 Q1/2019

1.0% QoQ 1.3% YoY

Tot

• tal As

Assets

Unit: Million Baht 2,247.3 2,517.1 2,519.7 Q1/2018 Q4/2018 Q1/2019

0.1% QoQ 12.1% YoY

Distribution Payment

Dis Distrib ibution Per er Unit it (DP (DPU)

Note: /1 Total distribution of Baht 0.1926 per unit are from operating result of Q1/2018 (from 1 Jan 2018 to 31 Mar 2018) at the rate of Baht 0.1852 per unit and from operating result from 22 Dec 2017 (date of incorporation) to 31 Dec 2017 at the rate of Baht 0.0074 per unit.

/2 Based on IPO subscription price of Baht 10.00 per unit.

20

Q1/2018

Unit: Baht/Unit

0.1926 0.1861 0.1902 0.1985 Q2/2018 Q3/2018 Q4/2018

Total dividend payment in 2018 Baht 0.7674 per unit

7.7%

Yield

Distribution Period 1 January – 31 March 2019

/1 /2

Q1/2019 0.1822

5

Potential Additional Assets Investment

New Acquisition Summary

22

Note: /1 The land is being owned by AIMIRT from the initial investment

/2 Successfully invested on 21 December 2018

Siam Chemicals (SCC) TIP 8 Bangkadi Industrial Park (BIP) JWD/2

Asset Type Chemical & Petroleum Storage and Warehouse Warehouse & Factory Warehouse Cold Storage Investment Type 30-Year Leasehold Freehold 30-Year Leasehold Freehold Location Suk Sawat Bangplee Pathumthani Chachoengsao Land Size 27-3-77 Rai 35-3-21.1 Rai 15-0-61 Rai

• /1

Number of Units 61 Tanks & 3 Warehouse Buildings 4 Warehouse Buildings 1 Warehouse Building 1 Cold Storage Building Leasable Area 85,380 kl. & 16,726 sq.m. 34,692.6 sq.m 14,600 sq.m. 2,708.4 sq.m. Occupancy Rate 100% 100% 100% 100% Source of Fund Public Offering & Debt Debt

AIMIRT Investment Structure

23

Trustee Services Management Management Fee Trustee Fee Trustee

Equity 1,550 MB Debt 590 MB

100% Unitholders

Unitholders Public Offering ≤ 3,000 MB Debt ≤ 1,300 MB

Acquisition Proceed Acquisition Proceed Freehold Right and 30-Year Leasehold Right Property Manager Fee Management Appoint Management

New Acquisition Leasable area 85,380 kl and 68,727 sq.m.

• 61 Tanks with 85,380 kl in Siam Chemicals, Suk Sawat
• Warehouse 66,019 sq.m.
• 1. 3 warehouses in Siam Chemicals Project, Suk Sawat
• 2. 4 warehouses in TIP 8 Project, Bangplee
• 3. 1 warehouse in Bangkradi Industrial Park Project, Pathumthani
• Cold Storage 2,708 sq.m. in JWD Pacific Project (Expansion Area), Chachoengsao

Freehold Right Property Managers 100% REIT Manager

New Acquisition

Total Asset Investment ≤ 4,300 MB

Asset ≤ 6,440 mm Debt ≤ 1,890 mm Equity ≤ 4,550 mm Debt/Asset ≤ 30% FH/LH 45%/55%

Asset Diversification

AIM Industrial Growth Freehold and Leasehold Real Estates Investment Trust (“AIMIRT”)

Existing Assets Leasable area 58,559 sq.m.

• Cold storage 27,620 sq.m.
• 1. 2 cold storage buildings in Pacific Cold Storage Project (PCS), Samut Sakhon
• 2. 1 cold storage building in JWD Pacific Project (JPAC), Chachoengsao
• Warehouse 30,939 sq.m.
• 1. 1 warehouse in Datasafe Project, Chachoengsao
• 2. 5 warehouses in TIP 7 Project, Bangplee

Tank 44% Cold Storage 22% Warehouse 34%

Financial Advisor Legal Advisor Auditor Appraisers REIT Manager

Existing Assets Combined Portfolio

Pre and Post Acquisition

24 Asset Debt Equity 2,140 mm 590 mm 1,550 mm ≤ 4,300 mm ≤ 1,300 mm ≤ 3,000 mm ≤ 1,890 mm ≤ 4,550 mm Existing Portfolio /1 New Acquisition Combined Portfolio

JWD

• Freehold right of land

and 2 cold storage buildings in Pacific Cold Storage Project (PCS), Samut Sakhon

• Freehold right of land

and 1 cold storage building in JWD Pacific Project (JPAC), Chachoengsao

• Freehold right of land

and 1 warehouse building in Datasafe Project, Chachoengsao Siam Chemicals 30-year leasehold right

• f land, 61 tanks and 3

warehouse buildings, Suk Sawat TIP 8 Freehold right of land and 4 warehouse buildings, Bangplee Bangkadi Industrial Park 30-year leasehold right

• f land and 1

warehouse building, Pathumthani JWD /2 Freehold right of 1 cold storage building, Chachoengsao TIP 7 Freehold right of land and 5 warehouse buildings, Bangplee Existing Assets

New Acquisition

Debt/Asset 28% 30% ≤ 30% ≤ 6,440 mm Freehold/Leasehold 100%/0% 21%/79% 45%/55% Net Leasable Area 58,559 sq.m. 68,727 sq.m. and 85,380 kl 127,286 sq.m. and 85,380 kl Asset Debt Equity Debt/Asset Freehold/Leasehold Net Leasable Area Asset Debt Equity Debt/Asset Freehold/Leasehold Net Leasable Area

Note: /1 For initial investment

/2 Successfully invested on 21 December 2018

Diversified Portfolio

25 Industry Diversification /1 Diversified Tenants /1 Expiry Profile /1 Geographical Diversification

Pre-Transaction Post-Transaction Pre-Transaction Post-Transaction Pre-Transaction Post-Transaction

Lower risk of single tenant dependency

Increase ability to increase rental rate

Lower risk of single industry dependency

Increase geographical exposure to further reduce risk

PCS

JWD

BIP SCC

Datasafe

TIP 7 TIP 8

JPAC

New Acquisition Existing Assets

Note: Information estimated as of 1 January 2019

/1 Based on percentage of total revenue

Logistics 12.3%

Cold Storage & Logistics Provider 74% PCS 42% JPAC 24%

<1y 14% 1-3y 12%

>3y 74%

<1y 3%

1-3y 34% >3y 63%

Cold Storage & Logistics Service Provider 24% Manufacture of Other Petroleum Products 22% Manufacture

• f Refined

Petroleum Products 18% Logistics 12% SFC 21% PCS 12% ESSO 10% JPAC 9% I.C.P. 7% Ceva 7%

Diversification of Sectors and Locations

26

Locations

Bangplee / Bang Na-Trad

✔

Eastern Seaboard

✔

Pathumthani

✔

Samut Sakhon

✔

Suk Sawat

✔

✔: Existing Assets ✔: Additional Assets

Tenant / End User’s Sectors

Automotive

✔

Chemicals

✔

Consumer Products

✔

Electronics

✔

Food

✔

Logistics

✔

Machine Parts

✔

Manufacturing

✔

Packaging

✔

REI REIT Manager

AIM REIT Management Company Limited 62 The Millennia Tower Unit 1601, 16th Floor Soi Langsuan, Lumpini, Pathumwan, Bangkok +66 2254 0441-2 www.aimirt.com

27

ir@aimreit.com SCB Asset Management Company Limited 7-8th Floor. SCB Park Plaza1 18 Ratchadapisek Road, Chatuchak, Bangkok +66 2949 1500 www.scbam.com

Trustee