Ascott Residence Trust 4Q/FY 2019 Financial Results 30 January 2020 - PowerPoint PPT Presentation

Ascott Residence Trust 4Q/FY 2019 Financial Results 30 January 2020

Important Notice This presentation may contain forward-looking statements. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, availability of real estate properties, competition from other developments or companies, shifts in customer demands, shifts in expected levels of occupancy rate, property rental income, charge out collections, changes in operating expenses (including employee wages, benefits and training, property operating expenses), governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management regarding future events. No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Neither Ascott Residence Trust Management Limited and Ascott Business Trust Management Pte. Ltd. (“Managers”) nor any of their affiliates, advisers or representatives shall have 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. The past performance of Ascott Residence Trust (“ART”) is not indicative of future performance. The listing of the stapled securities in the ART (“Stapled Securities”) on the Singapore Exchange Securities Trading Limited (the “SGX - ST”) does not guarantee a liquid market for the Stapled Securities. The value of the Stapled Securities and the income derived from them may fall as well as rise. Stapled Securities are not obligations of, deposits in, or guaranteed by, the Managers. An investment in the Stapled Securities is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request that the Managers redeem or purchase their Stapled Securities while the Stapled Securities are listed on the SGX-ST. It is intended that holders of Stapled Securities may only deal in their Stapled Securities through trading on the SGX-ST. This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for the Stapled Securities.

Content ▪ Year in Review ▪ Key Highlights of 4Q/FY 2019 ▪ Capital and Risk Management ▪ Distribution Details ▪ Key Country Updates ▪ Looking Forward ▪ Appendix - Value Creation Strategies - Other Information 3

Year in Review Ascott Orchard Singapore

Ascott Residence Trust – A leading global hospitality trust S$3.9b 1 S$7.4b >16,000 2 87 2 39 Apartment Units Market Capitalisation Total Assets Properties Cities in 15 Countries United Kingdom 4 properties China 7 properties Belgium South Korea 2 properties The United States of America 2 properties 3 properties Spain Germany Japan 1 property 5 properties 20 properties France The Philippines 17 properties 2 properties Singapore Vietnam 5 properties 2 4 properties Malaysia Australia 1 property 12 properties Indonesia Notes: 2 properties Figures above as at 31 December 2019 and includes the Ascendas Hospitality Trust portfolio (unless otherwise indicated) 5 1. Based on closing price of S$1.27 as at 29 January 2020 2. Including lyf one-north Singapore (currently under development)

FY 2019 – A banner year for ART Distribution per Stapled Security up 6 % in FY 2019 on stable operating performance and divestment gains Revenue stable Gross profit +6% RevPAU +1% Unitholders’ distribution +7% Acquiring quality properties, Unlocking > S$200 mil in net gains adding S$1.9b in asset value Divestments include: Acquisitions include: Ascott Raffles Place Singapore • Milestone combination with Ascendas Hospitality Trust • Somerset Liang Court Singapore • (“A - HTRUST”) Citadines Xinghai Suzhou and Citadines Zhuankou Wuhan • Citadines Connect Sydney Airport • Commitment to Sustainability Lowering finance costs Corporate governance: Green buildings: Refinanced perpetual securities at • Ranked 3rd in Singapore Governance and lyf one-north Singapore obtained • • lower rate of 3.88% p.a., resulting in Transparency Index 2018 & 2019 BCA Green Mark Goldplus in annual savings of S$1.7 million Runner-up for Singapore Corporate Governance January 2020 • Refinanced debt at lower rates • Award and Most Transparent Company Award at Somerset Grand Hanoi awarded EDGE • SIAS Investors’ Choice Awards 2019 Green Certification in January 2020 Delivering total unitholder returns of c. 30 % through capital gains and distributions 6

Successfully completed the combination with A-HTRUST Cementing position as the largest hospitality trust in Asia Pacific with enlarged asset size of S$7.4 billion USA, 9% Higher freehold Strengthened 30% increase in component Europe, Asia Pacific asset size to 20% Asia By portfolio presence valuation 59% : 41% Pacific, S$7.4 billion by 11% 71% Freehold : Leasehold Well positioned for inclusion in Augmented financial flexibility for future growth FTSE EPRA Nareit Developed Index Larger debt headroom of S$1.5 billion >75% EBITDA 4 from Increased free float and developed markets 5 market capitalisation 4.1 • Greater access to growth 1.36x 2.9 Index opportunities inclusion 1.6 • Increased capacity for more threshold 1.3 development / conversion 1.5 Approx. S$1.63bn (3) 1.1 2.5 projects 1.6 (2) Pre-combination (1) Post-combination Pre-combination Post-combination Free float Non-free float Notes: Unless otherwise stated, pre- combination statistics refer to ART’s financial position/portfolio as at 31 December 2019, e xcluding the A-HTRUST portfolio. Post-combination statistics include the A-HTRUST portfolio. 1. Based on the number of units and closing price as at 26 December 2019 2. Based on the number of stapled securities and closing price as at 2 January 2020 3. Based on the FTSE Russell threshold as at December 2019 7 4. Earnings before interest, taxes, depreciation and amortisation (excluding corporate costs) 5. Based on FTSE EPRA Nareit classification

Key Highlights of 4Q/FY 2019 Novotel Sydney Central

4Q 2019 - Distribution per Stapled Security increased 6% on the back of a resilient portfolio and divestment gains, enabled by strong financial position 2% 2% 6% 3% 1 Y-o-Y Y-o-Y Y-o-Y Y-o-Y Revenue RevPAU DPS Gross Profit Diversified portfolio for income resilience Lower revenue mainly due to the divestment of Ascott Raffles Place Singapore and Somerset West • Lake Hanoi Stronger performance from Belgium, Philippines, Singapore and Vietnam • Softer performance in Australia, China, Japan and USA • Excluding effects of foreign exchange and on a same-store basis, revenue and RevPAU were stable • Active portfolio reconstitution to create value Fair value gains of S$106.2 million, mainly from Somerset Liang Court Singapore • Debt headroom of S$1.5 billion 2 for yield-accretive acquisitions • Enhanced returns to Stapled Securityholders 4Q 2019 distribution per Stapled Security (“DPS”) of 2.27 cents, 6% higher y -o-y • S$13.5 million capital distribution to replace loss of income and share divestment gains with unitholders • Lower financing costs • Notes: 9 1. Includes FRS 116 adjustments. On a same-store basis and excluding the FRS 116 adjustments, gross profit decreased by S$1.7 million. 2. Refers to the amount of additional debt before reaching an aggregate leverage of 45%.

Generating gains through portfolio reconstitution Rejuvenating an aged asset Divesting properties which have reached their optimal stage of life cycle Divestment of Divestment of Divestment of partial GFA of 1 2 3 Somerset Citadines Xinghai Suzhou and Somerset Liang Court Singapore West Lake Hanoi Citadines Zhuankou Wuhan • Divest at 44% above book value 1 ; total net gains of S$84.3 million 2 Divest at >30% above combined property • Divest at 39% above • book values 5 ; represents net gains of property book value 3 by • Net proceeds to fund redevelopment into a brand new serviced c. S$5 million 4 c. S$21.2 million residence with hotel licence and refreshed lease of 99 years Exit cap rate of c.3.7% • Completed on • • Rejuvenate property as part of an iconic waterfront integrated 31 October 2019 development in the heart of Clarke Quay Sale and purchase agreements signed in • December 2019; with completion expected • Divestment expected to complete in April 2020; redeveloped by 1H 2020 new serviced residence expected to open in 2H 2024 Notes: 1. Book value as at 30 September 2019 of S$211.0 million 2. Includes realised net divestment gain of S$40.9 million and S$43.4 million fair value gain on retained GFA 3. Book value as at 30 June 2019 of S$13.3 million 4. Based on 100% stake. ART has an effective 70% stake in the property 10 5. Book value as at 30 June 2019 of S$75.1 million