Ascott Residence Trust A Leading Global Serviced Residence REIT 3Q - PowerPoint PPT Presentation

Ascott Residence Trust A Leading Global Serviced Residence REIT 3Q 2018 Financial Results 1 November 2018 1

Important Notice The value of units in Ascott Residence Trust (“Ascott REIT”) (the “Units”) and the income derived from them may fall as well as rise. The Units are not obligations of, deposits in, or guaranteed by Ascott Residence Trust Management Limited, the Manager of Ascott REIT (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. The past performance of Ascott REIT is not necessarily indicative of its future performance. This presentation may contain forward-looking statements that involve risks and uncertainties. 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, competition from similar developments, shifts in expected levels of property rental income, changes in operating expenses, including employee wages, benefits and training, property expenses and governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. Prospective investors and Unitholders are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of the Manager on future events. Unitholders of Ascott REIT (the “Unitholders”) have no right to request the Manager to redeem their units in Ascott REIT while the units in Ascott REIT are listed. It is intended that Unitholders may only deal in their Units through trading on Singapore Exchange Securities Trading Limited (the “SGX - ST”). Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. 2

Content ▪ Key Highlights of 3Q 2018 and YTD Sep 2018 ▪ Portfolio Performance ▪ Key Country Updates ▪ Outlook ▪ Value Creation Strategies ▪ Conclusion ▪ Other Information 3

Key Highlights of 3Q 2018 and YTD Sep 2018 Ascott Orchard Singapore 4

Key Takeaways – 3Q 2018 6% 9% 8% 8% Y-o-Y Y-o-Y Y-o-Y Y-o-Y Gross Profit Revenue RevPAU DPU 8 Key Markets 1 Contributed 85% Total Gross Profit Better Overall Performance Achieved Acquisition of BBB Balanced Prime Site to Income develop first coliving (Outlook Stable) Proportion of property 44% : 56% lyf one-north Ratings reaffirmed as Investment Stable Growth Singapore Grade by Fitch Notes: Figures above as at 30 September 2018 1. Refers to Australia, China, France, Japan, Singapore, United Kingdom, United States and Vietnam 5

Financial Highlights (3Q 2018 vs 3Q 2017) Higher contributions from properties acquired in FY 2017 and better performance of existing properties Revenue Gross Profit Revenue Per Available Unit (S$m) (S$m) (S$) 6% 9% 8% 134.5 158 Y-o-Y 126.9 Y-o-Y 146 Y-o-Y 64.2 58.8 3Q 2018 3Q 2017 3Q 2018 3Q 2017 3Q 2018 3Q 2017 Distribution Per Unit Unitholders’ Distribution (S cents) (S$m) 8% 8% Y-o-Y Y-o-Y 1.82 39.4 1.69 36.3 3Q 2018 3Q 2017 3Q 2018 3Q 2017 6

Financial Highlights (YTD Sep 2018 vs YTD Sep 2017) Revenue and Gross Profit grew 4% and 7% y-o-y respectively boosted by enlarged portfolio from acquisitions Revenue Gross Profit Revenue Per Available Unit (S$m) (S$m) (S$) 5% 7% 4% Y-o-Y Y-o-Y Y-o-Y 377.8 361.8 176.0 165.1 147 140 YTD Sep 2018 YTD Sep 2017 YTD Sep 2018 YTD Sep 2017 YTD Sep 2018 YTD Sep 2017 Unitholders’ Distribution Distribution Per Unit Adjusted Distribution Per Unit (S$m) (S cents) (S cents) maintained 10% 1% (Excluding one-off, Y-o-Y Y-o-Y 11%) 108.3 108.3 106.7 1 96.4 2 5.01 5.04 4.94 1 4.49 2 YTD Sep 2018 YTD Sep 2017 YTD Sep 2018 YTD Sep 2017 YTD Sep 2018 YTD Sep 2017 Notes: 1. Excluding one-off realised foreign exchange gain of S$1.6m arising from the receipt of divestment proceeds and repayment of foreign currency bank loans with the divestment proceeds 2. Excluding one-off realised foreign exchange gain of S$11.9m arising from repayment of foreign currency bank loans with proceeds from Rights Issue and divestments 7

Revenue and Gross Profit by Contract Type (3Q 2018 vs 3Q 2017) Higher contributions across all contract types Higher Revenue and Gross Profit achieved on same store basis Revenue ( S$‘mil ) Gross Profit ( S$‘mil ) RevPAU (S$) 3Q 3Q % 3Q 3Q % 3Q 3Q % 2018 2017 Change 2018 2017 Change 2018 2017 Change Income Master Leases 20.8 18.7 11 18.7 16.9 11 n.a. n.a. n.a. Stable MCMGI 1 20.8 19.7 6 9.4 8.9 6 198 189 5 Income Growth Management 92.9 88.5 5 36.1 33.0 9 150 138 9 Contracts Total Total 134.5 126.9 6 64.2 58.8 9 158 146 8 73 Properties 2 73 Properties 2 Master Leases: Revenue and Gross Profit grew 11% y-o-y driven by acquisition of Ascott Orchard Singapore o in 4Q 2017 and better contribution from existing properties MCMGI: Revenue and Gross Profit grew 6% y-o-y underpinned by strong demand in United Kingdom and o Belgium Management Contracts: Higher contribution from better performance and reconstitution of portfolio o (reclassification of Infini Garden from Master Lease to Management Contract category; acquisition of DoubleTree by Hilton Hotel New York – Times Square South, partially offset by divestment of Citadines Biyun Shanghai and Citadines Gaoxin Xi’an Notes: 1. MGMGI refers to Management Contracts with Minimum Guaranteed Income 8 2. Excludes lyf one-north Singapore (under development)

Strong Performance 3Q 2018 Gross Profit comprised by 44% Stable Income and 56% Growth Income ▪ Stable Income : Gross Profit from Stable Income (S$m) Refers to Master Leases and Management Contracts o with Minimum Guaranteed Income. Weighted 9% average tenure of contracts ~ 5 Years Y-o-Y 9% increase Y-o-Y due to better performance and o 28.1 25.8 acquisition of Ascott Orchard Singapore in 4Q 2017 On same store basis, better operating performance o 3Q 2018 3Q 2017 in Singapore, Belgium and United Kingdom which saw higher RevPAU with stronger demand Growth Income : Gross Profit from Growth Income (S$m) Y-o-Y 9% increase due to better performance in most o countries and acquisition of US property in mid 3Q 2017 9% Y-o-Y On same store basis, better operating performance o 36.1 33.0 in Key Markets of Singapore, China, Japan and United States 3Q 2018 3Q 2017 Generated Unitholders’ Distribution of S$39.4m in 3Q 2018, to be paid out together with ▪ 4Q 2018 distribution in 1Q 2019 9

Resilient Portfolio ▪ Valuable ▪ Stable freehold land lease portfolio length of stay 16% 19% >50% Average 5% Freehold ~3 months 1 Tenure by Average Property 9% Length of 53% Value 2 Stay 58% 28% 12% 1 week or less Freehold Less than 1 month 1 to 6 months 51 to 100 Years 6 to 12 months Up to 50 Years More than 12 months Inorganic and Organic Growth Strategies Acquired site to develop maiden coliving property, lyf one-north Singapore catering ▪ to millennial-minded executives Access to ~20 pipeline properties from Sponsor via ROFR ▪ AEI completion of Ascott Makati ▪ Proactive yield management and marketing strategies to capture rising global ▪ travelling trends in both business and leisure segments Notes: As at 30 September 2018 (unless otherwise indicated) 1. Average length of stay computed based on rental income, excluding properties on Master Leases 10 2. Proportion based on last valuation of Property Value as of 30 June 2018

Disciplined Capital and Risk Management Prudent Capital and Debt Management Gearing: 36.4% ▪ (debt headroom 1 of ~S$810m) Interest Cover: 4.7 times ▪ Total Debt S$1,886m Effective Borrowing Cost: 2.3% ▪ 82% Debt Debt Maturity 2020 and beyond: 88% ▪ Fixed Successfully refinanced JPY5 billion Medium Term Note at a lower rate of 0.97% 2 p.a. for 7 years Risk Management – Forex Hedging 47% Assets 48% Distributable Income derived in EUR, GBP, JPY ▪ Hedged and USD has been hedged Total Assets Impact of foreign exchange fluctuation on YTD ▪ S$5,273m Sep 2018 Gross Profit was positive at 0.2% Historical impact of exchange rate movement on gross profit largely kept within the threshold of +/-1.4% for the past 5 years Notes: As at or for the period ending 30 September 2018 1. to reach aggregate leverage limit of 45% set by MAS 11 2. Prior to re-financing, the original cost of borrowing was 2.01% p.a.

Performance Driven by Balanced and Diversified Asset Allocation 60% Asia Pacific 40% Europe/Americas Asia Pacific 59.9% Europe 27.7% Singapore 18.8% France 10.6% Japan 13.1% UK 9.5% China 10.3% Germany 5.0% Total Assets S$5,273m Vietnam 5.9% Spain 1.4% Australia 5.5% Belgium 1.2% Philippines 3.1% Indonesia 2.1% The Americas 12.4% Malaysia 1.1% USA 12.4% Notes: 12 As at 30 September 2018

Portfolio Performance Citadines St Georges Terrace Perth 13