Bualuang K.E. Retail Leasehold Real Estate Investment Trust 4Q 2019 - - PowerPoint PPT Presentation

Bualuang K.E. Retail Leasehold Real Estate Investment Trust 4Q 2019 OPPORTUNITY DAY 25 March 2020

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Investment involves risk. Prospective should understand the characteristics of the Trust units and study information about Bualuang K.E. Retail Leasehold Real Estate Investment Trust (“BKER”) before making a decision to invest in the Trust units. This presentation is for information purposes only and is intended only for the initial direct attendee of the presentation. It may not be reproduced or redistributed to any other person. No part of this presentation, nor the fact of its existence, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. This presentation is not to be relied upon in any manner as legal, tax or any other advice and shall not be used in substitution for the exercise of independent judgment and each person made aware of the information set-forth hereof shall be responsible for conducting its own investigation and analysis of the information contained herein. Except where otherwise indicated, the information provided in this presentation is based on matters as they exist as of the date stated or, if no date is stated, as of the date of preparation and not as of any future date, and the information and opinions contained herein are subject to change without notice. None of the BKER nor any of its subsidiaries accepts any obligation to update or otherwise revise any such information to reflect information that subsequently becomes available or circumstances existing or changes occurring after the date hereof. None of the BKER or any of its subsidiaries or any of their respective directors,

• fficers, employees or agents shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its

contents or otherwise arising in connection with the presentation and any and all such liability is expressly disclaimed. Some statements made in this presentation are forward-looking statements, which are subject to various risks and uncertainties. These include statements with respect to strategies and beliefs and other statement that are not historical facts. These statement can be identified by the use of forward-looking terminology such as “may”, “will”, “expect” , “intend”, “estimate”, “continue”, “plan” or other similar words. The statements are based on the assumptions and beliefs of BKER management in light of the information currently available to BKER. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in this Presentation is, or should be relied on as promise or representation of BKER as to the future.

DISCLAIMER

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I BKER INTRODUCTION

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CDC The Crystal Ekamai-Ramindra The Crystal SB Ratchapruek Amorini Mall I’m Park Chula Plearnary Mall Sammakorn Place Ramkamhaeng Sammakorn Place Rangsit Sammakorn Place Ratchapruk The Scene

BKER is the Leading and Most Diversified Lifestyle Retail REIT in Thailand, with the first Co-REIT Management between BBL Asset Management (“BBLAM”) and KE REIT Management (“KERM”).

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Prime Lifestyle Retail Properties

11.3 bn

Total Asset Value

(THB)

OPERATING HIGHLIGHTS

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Management strategic actions since the IPO of BKER:

1.

Leasing: Focus on increasing occupancy; leasing to prime brand tenants at each property

2.

Cost Reduction: Utilizing economy of scale and efficient management to save costs

3.

COVID-19: Resilient neighborhood malls to withstand external impacts

4.

Acquisitions: Building pipeline of prime lifestyle retail assets in Thailand and internationally KEY UPDATES

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Stronger and Robust Cash Flows for the Long Term

I KEY HIGHLIGHTS

Page 6 Remark: 1. Rental Reversion Rate is based on renewal rate or new lease rate of expired NLA for the period 2. Traffic Growth Rate is based on Jan-20 and Feb-20 compared with Jan-19 and Feb-19 for CDC, TC, and TCR Projects

92.7%

Occupancy Rate (%)

+1.3%

Traffic Growth2 (Like-for-Like Jan-Feb)

+2.9%

Rental Reversion1 (% p.a.) (Rent Growth Per Contract)

I BKER GROWTH STRATEGY AND TARGET

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Organic Growth Inorganic Growth Operations and Tech Platform Balance Sheet Strength Portfolio Resilience

• Active leasing and tenant mix
• Synergy and cost efficiency
• Operational excellence
• High-quality prime acquisitions
• Diversification
• YARDI ERP system
• Streamline processes
• Crystal Rewards platform
• Smart capital management
• Strong financial structure
• COVID-19
• Economic slowdown
• Risk mitigation

3-4%

Organic Revenue Growth

STRATEGIC AREAS AND INITIATIVES 5Y GROWTH TARGETS

4-5%

Organic NOI Growth

15-20%

Inorganic TAV Growth

4-6%

DPU Growth

Average Per Annum Growth (Total Asset Value) (Distribution Per Unit)

I LEASING STRATEGY OF PRIME BRAND TENANTS

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Leasing Focus (% of NLA) CDC TC TCR AMR IMP PLN SRM SRS SRP TS

Necessity (20%)

Supermarket, Banks, Services etc.

Health & Wellness (13%)

Fitness, Beauty & Health Clinics etc.

Food & Hangout (20%)

Café, Restaurants, etc.

Family & Education (14%)

Education, Toys, etc.

EVERY PROPERTY HAS PRIME-BRAND TENANTS IN ALL 4 KEY LEASING FOCUS AREAS

I LEASING UPDATE

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For Period Ended 31-Dec-19

Number of Leases Committed Sqm of Leases Committed Renewal Retention Rate1 Rental Reversion Rate2 Renewal Leases 53 3,246 sqm 97.2% 2.4% New Leases 15 2,162 sqm

• 3.7%

Total Portfolio 68 5,408 sqm

• 2.9%

STRONG LEASING PERFORMANCE AND COMMITMENT OF NEW MAJOR BRANDS

Remark: 1. Calculated by NLA 2. Calculated on a Per Annum basis

I HIGH AND IMPROVING OCCUPANCY

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Property Share of NLA (% of Total) Actual as at 31-Dec-19 Committed1 as at 31-Dec-19 New Brands 2020 Crystal Design Center 25.8% 90.6% 95.6% ▲▲

Sab Indy, Jas Sofa, Jacquar, SK Home

The Crystal Ekamai-Ramindra 22.1% 99.3% 99.3% ⎯

Oh Ka Jhu, Penguin Eat Shabu, Chong Charoen

The Crystal SB Ratchapruek 17.5% 93.7% 95.7% ▲

Mos Burger, Sod Aroi, Fresh Me, Tenjo

Amorini Mall 3.6% 96.3% 86.9% ▼

Nobicha

I’m Park Chula 4.7% 94.3% 94.3% ⎯

n/a

Plearnary Mall 8.1% 85.5% 85.7% ⎯

n/a

Sammakorn Place Ramkamhaeng 7.4% 92.1% 90.5% ▼

Salad Factory, Fresh Me

Sammakorn Place Rangsit 2.4% 92.5% 97.0% ▲▲

Nobicha

Sammakorn Place Ratchapruek 3.3% 79.3% 80.5% ▲

Starbucks, A.ta Bubble Tea

The Scene Town-in-Town 5.0% 87.3% 92.9% ▲

BBQ Plaza, Masaru Sushi

BKER Portfolio 139,539 sqm 92.7% 94.3% ▲

OCCUPANCY IS HIGH AND EXPECTED TO IMPROVE WITH NEW LEASES COMMITTED

Remark: 1. Committed Occupancy includes Tenants who have signed Offer Letter and/or Quotations with Paid Deposit (Committed Tenants may fill in over the course of up to next 12 months)

I OPERATION SYNERGY AND COST SAVINGS

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SYNERGY LEADS TO COST SAVINGS IN OUTSOURCE AND UTILITY EXPENSES

Outsource Contracts

• Increased bargaining power with vendors
• Headcount reduction by centralizing functions
• Synergy and integration with service vendors
• 20%

Identified1 Cost Savings

Utility Expenses

• Changes in operating and monitoring processes
• Energy efficiency management
• 5%

Targeted Cost Savings

Remark: 1. Identified cost reductions that has been agreed new terms and included in LOI and/or service agreement with vendors

I LARGE ACQUISITION PIPELINE

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TOTAL ACQUISITION PIPELINE Assets in Preliminary Discussions and Valuations Assets with or near MOU Agreement

(FY 2020)

• No. of Assets

40 Assets Gross Leasable Area 809,000 sqm Locations Bangkok 68%, Provincial 22%, Intl 10%

• No. of Assets

3 Assets Gross Leasable Area 28,000 sqm Locations Bangkok 75%, Provincial 25%

PIPELINE FACTS

I ASSET ENHANCEMENT: SOLAR ROOF INITIATIVE

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SIGNED MOU WITH IMPACT SOLAR TO CONDUCT PILOT PROJECT FOR SOLAR ROOF AT CDC

Solar Roof Initiative

• Drive for greater energy efficiency
• Sustainability and renewable energy source for mall
• Sequestered CO2 more than 1,300 ton per year
• Plan to roll out across all 10 properties under BKER portfolio
• 25%

Cost Reduction Per Unit Rate vs. Government Rate (kWh)

I ASSET ENHANCEMENT: PLEARNARY MALL REBRANDING

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NEW MODERN LOOK FOR PLEARNARY MALL AHEAD OF ASSET REPOSITIONING

Plearnary Mall Rebranding

• Appeal to growing customer target group of working people

and new families

• First phase of repositioning ahead of tenant rezoning for

banking, fashion, and big box tenant zones

Higher traffic and increase dwell time of customers

I LIMITED IMPACT FROM COVID-19 AS SHORT-TERM RISK

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BKER HAS GOOD RISK MITIGATIONS FOR COVID-19 OUTBREAK

Traffic Resilience Rental Discounts Essential Tenants Open

So far customers choose to visit neighborhood malls instead of enclosed malls to avoid virus Use Thai Shopping Center Association Policy (TSCA) of best-effort measure for tenants during shutdown period

+1.3%

Like-for-Like Traffic Growth (Jan-Feb 2020) Supermarket, pharmacies, banks,

• ffice, and F&B delivery tenants are

critical shops that stay open

30%

Of Tenant Mix Still Open (%) Other period discount is considered on case-by-case basis for each tenant

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Opportunity to lay down long-term strategic actions in leasing and cost management

1.

Leasing Revenues: Strong long-term foundation with Committed Occupancy of 94%

2.

Cost Reduction: Achieved significant Cost Savings of 20% on outsource expenses

3.

COVID-19: Temporary short-term impact of around 12% of Rental Discount Expense

4.

Acquisitions: High Certainty of new properties to be added within FY2020 OUTLOOK FOR 2020

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Stronger and Robust Cash Flows for the Long Term

FINANCIAL PERFORMANCE

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I BKER DEC-19 PERFORMANCE AT A GLANCE

Page 18 Remark: Total Net Leasable Area as per Filing dated 11-Dec-19 was 139,557 sqm, a deviation in NLA was due to change in use of leasable area Rental Reversion Rate is based on renewal rate of expired NLA for the period WALE = Weighted Average Lease Expiry

Rental Reversion Rate (%)

2.9%

Total Net Leasable Area (sqm)

139,539

Average Rental Rate (THB/sqm/month)

576

Weighted Avg Lease Expiry (WALE) (Years)

1.66

Occupancy rate (%)

92.7%

Proportion of Anchor Tenant NLA (%)

30.8%

613 649 601 383 601 366 446 543 517 646 ‖ 87.3% ‖ 79.3% ‖ 92.5% ‖ 92.1% ‖ 85.5% ‖ 94.3% ‖ 96.3% ‖ 93.7% ‖ 99.3% ‖ 90.6% 500 1,000 500 1,000 CDC TC TCR AMR IMP PLN SRM SRS SRP TS Average Rental Rate (THB/sqm) ‖ Occupancy rate (%)

Average monthly rental rate & Occupancy rate for Dec-19

I INCOME STATEMENT AND BALANCE SHEET

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(Amounts in THB m) 2019(1) Revenues Rental income(3) 45.59 Services and utilities income(3) 62.46 Interest income 0.62 Other income 9.25 Total incomes 117.92 Expenses Costs of rental and services 36.83 Fees and expenses for property management 16.05 Administration expense 0.82 Amortization of deferred expenses 1.49 Finance costs 8.43 Total expenses 63.62 Net investment income 54.30 Total unrealized gain loss on investment 0.00 Increase in net assets from operations 54.30 (Amounts in THB m) 2019(1) Assets Investment in leasehold properties at fair value 11,171.14 Investment in securities and cash at financial institutions 778.35 Rental and services receivables 53.85 Other assets 185.94 Total Assets 12,189.29 Liabilities Trade accounts payable 11.79 Accrued expenses, and rental and services income received in advance(4) 430.50 Deposits from rental and service 351.74 Long-term loan(2) 2,758.64 Other liabilities 1.79 Total Liabilities 3,554.47 Net asset value 8,634.82 Capital from unitholders 8,897.99 Discount on trust units (317.47) Retained earnings 54.30 Net asset value 8,634.82 Net asset value per unit (THB) 9.8785

Remark (1) For the period 26 November (incorporation date) o 31 December 2019 (2) Loan outstanding of THB 2,764m (amortization of finance cost of THB 5.4m) (3) Based on reclassification of the statement, rental and services income and Utilities income accounted for 71.8% and 14.3% of total incomes, respectively (4) Accrued WHT of THB 341.81m Due to rounding, numbers presented throughout this document may not add up precisely to the total

I REVENUE & NLA BREAKDOWN

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NLA BY PROJECT RENTAL & SERVICES REVENUE BY PROJECT

CDC 26% TC 22% TCR 18% AMR 4% IMP 5% PLN 8% SRM 7% SRS 2% SRP 3% TS 5% CDC 31% TC 28% TCR 16% AMR 2% IMP 4% PLN 5% SRM 4% SRS 2% SRP 2% TS 5%

65% 35% 75% 25%

I TENANT MIX & CONTRACT EXPIRATION

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CONTRACT EXPIRATION TENANT MIX

Remark: Information as of 31-Dec-19 10.5% 6.5% 14.3% 1.9% 31.4% 16.4% 18.0% 1.0% 41.9% 22.9% 32.3% 2.9% 2020 2021 2022 >2022 Anchor tenant Other tenant Based on occupied NLA

I DISTRIBUTION OF TENANTS BY ARR AND WALE

Page 22 5,000 10,000 15,000 20,000 25,000 30,000 500 1,000 1,500 2,000 2,500 NLA (sqm) Average Rental Rate (THB/sqm/month) Mean ARR of THB 576

1.78

WALE (Years)

62.7%

% to total occupied NLA

1.41

WALE (Years)

31.3%

% to total occupied NLA

1.22

WALE (Years)

5.7%

% to total occupied NLA

1.06

WALE (Years)

0.4%

% to total occupied NLA

Remark Due to rounding, numbers presented throughout this document may not add up precisely to the total WALE = Weighted Average Lease Expiry

PERFORMANCE BY ASSET

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Electronics/IT 3.5% Fashion 0.6% Financial 1.3% Food & Beverage 6.8% Health & Beauty 5.0% Home Decoration 59.4% Lifestyle 1.3% Office 6.8% Service 0.3% Supermarket 5.5% Vacant 9.4%

CRYSTAL DESIGN CENTER (CDC)

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CONTRACT EXPIRATION TENANT MIX OCCUPANCY & AVERAGE MONTHLY RENTAL RATES PROJECT HIGHLIGHT

572 604 621 613 546 558 584 556 95.5% 92.3% 94.1% 90.6% 50.0% 75.0% 100.0% 250 500 750 1,000 2017 2018 6M2019 Dec-19 Average Rental Rate (THB/sqm) Rental Revenue per NLA (THB/sqm) Occupancy rate (%) - RHS

Rental Revenue per NLA = Occupancy rate X Average Rental Rate

LOCATION 1420/1 Praditmanutham road, Bangkapi, Bangkok INVESTED AREA ▪ GFA: 52,583 sqm ▪ NLA: 36,021 sqm INVESTMENT RIGHT (on investment date) ▪ 30-year leasehold OPERATING HIGHTLIGHT

▪ In Dec-19, there was additional newly-built NLA of 1,209 sqm (in discussion with potential tenant) ▪ Rental reversion rate in Dec-19 was 1.9%

0.0% 5.8% 15.6% 4.5% 32.4% 21.4% 17.9% 2.3% 32.4% 27.2% 33.5% 6.9% 2020 2021 2022 >2022 Anchor tenant Other tenant

I THE CRYSTAL EKAMAI – RAMINDRA (TC)

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Education 11.0% Electronics/IT 1.0% Fashion 11.1% Financial 4.8% Food & Beverage 20.2% Health & Beauty 22.5% Lifestyle 3.2% Service 0.7% Supermarket 7.5% Cinema 17.1% Vacant 0.7%

CONTRACT EXPIRATION OCCUPANCY & AVERAGE MONTHLY RENTAL RATES PROJECT HIGHLIGHT TENANT MIX

596 642 661 649 575 622 646 644 96.5% 96.9% 97.7% 99.3% 50.0% 75.0% 100.0% 250 500 750 1,000 2017 2018 6M2019 Dec-19 Average Rental Rate (THB/sqm) Rental Revenue per NLA (THB/sqm) Occupancy rate (%) - RHS

Rental Revenue per NLA = Occupancy rate X Average Rental Rate

LOCATION 215 Praditmanutham road, Ladprao, Bangkok INVESTED AREA ▪ GFA: 69,341 sqm ▪ NLA: 30,778 sqm INVESTMENT RIGHT (on investment date) ▪ 30-year leasehold OPERATING HIGHTLIGHT

▪ Occupancy rate improved due to an increase in leasing activity of Health & Beauty segment ▪ A Japanese restaurant took up another 195.6 sqm in Jan-20 boosting the

• ccupancy rate further

0.7% 4.6% 30.1% 0.0% 25.1% 16.1% 23.3% 0.0% 25.8% 20.7% 53.4% 0.0% 2020 2021 2022 >2022 Anchor tenant Other tenant

I THE CRYSTAL RATCHAPRUEK (TCR)

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Education 11.4% Electronics/IT 3.2% Fashion 3.6% Financial 4.1% Food & Beverage 20.9% Health & Beauty 14.5% Home Decoration 4.1% Lifestyle 2.7% Service 0.5% Supermarket 7.8% Cinema 21.0% Vacant 6.3%

CONTRACT EXPIRATION OCCUPANCY & AVERAGE MONTHLY RENTAL RATES PROJECT HIGHLIGHT TENANT MIX

548 549 574 601 511 508 548 563 93.3% 92.6% 95.4% 93.7% 50.0% 75.0% 100.0% 250 500 750 1,000 2017 2018 6M2019 Dec-19 Average Rental Rate (THB/sqm) Rental Revenue per NLA (THB/sqm) Occupancy rate (%) - RHS

Rental Revenue per NLA = Occupancy rate X Average Rental Rate

LOCATION 555/9 Ratchapruek road, Bang Kruai, Nonthaburi INVESTED AREA ▪ GFA: 51,635 sqm ▪ NLA: 24,426 sqm INVESTMENT RIGHT (on investment date) ▪ 23.2-year leasehold OPERATING HIGHTLIGHT

▪ Some Food & Beverage tenants relinquished the lease prior to investment date causing a decrease in occupancy rate ▪ New restaurants, Ootoya and The Pizza Company, moved in offering variety of choices to customers

32.4% 7.1% 0.0% 0.0% 36.2% 14.6% 9.7% 0.0% 68.6% 21.7% 9.7% 0.0% 2020 2021 2022 >2022 Anchor tenant Other tenant

I AMORINI MALL (AMR)

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Education 4.4% Fashion 3.3% Financial 2.1% Food & Beverage 41.6% Health & Beauty 6.4% Lifestyle 6.1% Service 2.7% Supermarket 29.5% Vacant 3.7%

CONTRACT EXPIRATION OCCUPANCY & AVERAGE MONTHLY RENTAL RATES PROJECT HIGHLIGHT TENANT MIX

369 355 354 383 360 353 342 368 97.6% 99.4% 96.6% 96.3% 50.0% 75.0% 100.0% 250 500 750 1,000 2017 2018 6M2019 Dec-19 Average Rental Rate (THB/sqm) Rental Revenue per NLA (THB/sqm) Occupancy rate (%) - RHS

Rental Revenue per NLA = Occupancy rate X Average Rental Rate

LOCATION 1 Suan Siam road, Khan Na Yao, Bangkok INVESTED AREA ▪ GFA: 10,331 sqm ▪ NLA: 5,092 sqm INVESTMENT RIGHT (on investment date) ▪ 30-year leasehold OPERATING HIGHTLIGHT

▪ Occupancy rate remained stable with one unit switching in Health & Beauty segment from Aesthetic to Physiotherapy ▪ Rental rate edged up due to an organic step rate growth and the new tenant

30.7% 0.0% 4.0% 0.0% 41.5% 10.6% 4.4% 8.8% 72.1% 10.6% 8.5% 8.8% 2020 2021 2022 >2022 Anchor tenant Other tenant

I I’M PARK CHULA (IMP)

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Education 18.1% Fashion 0.6% Food & Beverage 41.9% Health & Beauty 11.2% Lifestyle 6.7% Office 14.1% Supermarket 3.4% Vacant 3.9%

CONTRACT EXPIRATION OCCUPANCY & AVERAGE MONTHLY RENTAL RATES PROJECT HIGHLIGHT TENANT MIX

692 637 666 601 619 586 627 566 89.4% 92.0% 94.2% 94.3% 50.0% 75.0% 100.0% 250 500 750 1,000 2017 2018 6M2019 Dec-19 Average Rental Rate (THB/sqm) Rental Revenue per NLA (THB/sqm) Occupancy rate (%) - RHS

Rental Revenue per NLA = Occupancy rate X Average Rental Rate

LOCATION 353 Charoen Muang road, Pathum Wan, Bangkok INVESTED AREA ▪ GFA: 14,165 sqm ▪ NLA: 6,601 sqm INVESTMENT RIGHT (on investment date) ▪ 14.7-year leasehold OPERATING HIGHTLIGHT

▪ ARR was weighted down from an additional 290 sqm occupied as an office for Grand Uniland and a modification of ARR structure of some tenants ▪ New medium-size office construction of a major commercial bank adjacent to the project helps encouraging leasing activity

9.3% 4.7% 0.0% 0.0% 43.8% 17.1% 25.3% 0.0% 53.0% 21.7% 25.3% 0.0% 2020 2021 2022 >2022 Anchor tenant Other tenant

I PLEARNARY MALL (PLN)

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Education 8.9% Electronics/IT 0.2% Fashion 1.5% Financial 3.4% Food & Beverage 22.1% Health & Beauty 16.3% Lifestyle 14.1% Office 8.9% Service 0.8% Supermarket 9.1% Vacant 14.7%

CONTRACT EXPIRATION OCCUPANCY & AVERAGE MONTHLY RENTAL RATES PROJECT HIGHLIGHT TENANT MIX

438 434 394 366 389 373 325 313 88.9% 86.0% 82.6% 85.5% 50.0% 75.0% 100.0% 250 500 750 1,000 2017 2018 6M2019 Dec-19 Average Rental Rate (THB/sqm) Rental Revenue per NLA (THB/sqm) Occupancy rate (%) - RHS

Rental Revenue per NLA = Occupancy rate X Average Rental Rate

LOCATION 242, 244, 246 Watcharapol road, Bang Khen, Bangkok INVESTED AREA ▪ GFA: 25,527 sqm ▪ NLA: 11,353 sqm INVESTMENT RIGHT (on investment date) ▪ 30-year leasehold OPERATING HIGHTLIGHT

▪ Net increase in occupied area came from an additional 1,006 sqm office area of Prinsiri PCL offsetting a decrease in occupied area of some tenants ▪ ARR was weighted down by additional office area of Prinsiri PCL

23.1% 8.4% 0.0% 10.4% 44.8% 5.3% 8.1% 0.0% 67.8% 13.7% 8.1% 10.4% 2020 2021 2022 >2022 Anchor tenant Other tenant

I SAMMAKORN PLACE RAMKUMHAENG (SRM)

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Fashion 1.3% Financial 6.6% Food & Beverage 12.1% Health & Beauty 16.3% Home Decoration 8.5% Lifestyle 3.3% Office 26.2% Service 2.9% Supermarket 14.9% Vacant 7.9%

CONTRACT EXPIRATION OCCUPANCY & AVERAGE MONTHLY RENTAL RATES PROJECT HIGHLIGHT TENANT MIX

471 477 443 446 397 401 399 411 84.3% 84.1% 90.0% 92.1% 50.0% 75.0% 100.0% 250 500 750 1,000 2017 2018 6M2019 Dec-19 Average Rental Rate (THB/sqm) Rental Revenue per NLA (THB/sqm) Occupancy rate (%) - RHS

Rental Revenue per NLA = Occupancy rate X Average Rental Rate

LOCATION Ramkamhaeng 110 road, Saphan Sung, Bangkok INVESTED AREA ▪ GFA: 22,050 sqm ▪ NLA: 10,340 sqm INVESTMENT RIGHT (on investment date) ▪ 30-year leasehold OPERATING HIGHTLIGHT

▪ Positive net take up rate driven by new tenants in Food & Beverage and Service segments ▪ Additional 1,667 sqm was occupied as office for Sammakorn PCL

17.5% 0.0% 26.6% 0.0% 14.4% 5.8% 35.7% 0.0% 32.0% 5.8% 62.3% 0.0% 2020 2021 2022 >2022 Anchor tenant Other tenant

I SAMMAKORN PLACE RANGSIT (SRS)

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Education 5.1% Fashion 2.2% Financial 8.7% Food & Beverage 17.0% Health & Beauty 3.8% Home Decoration 0.7% Lifestyle 16.5% Office 0.7% Service 10.1% Supermarket 27.6% Vacant 7.5%

CONTRACT EXPIRATION OCCUPANCY & AVERAGE MONTHLY RENTAL RATES PROJECT HIGHLIGHT TENANT MIX

515 511 515 543 437 448 463 502 84.9% 87.7% 89.9% 92.5% 50.0% 75.0% 100.0% 250 500 750 1,000 2017 2018 6M2019 Dec-19 Average Rental Rate (THB/sqm) Rental Revenue per NLA (THB/sqm) Occupancy rate (%) - RHS

Rental Revenue per NLA = Occupancy rate X Average Rental Rate

LOCATION Rangsit-Klong 2 road, Pathum Thani INVESTED AREA ▪ GFA: 5,112 sqm ▪ NLA: 3,413 sqm INVESTMENT RIGHT (on investment date) ▪ 30-year leasehold OPERATING HIGHTLIGHT

▪ The improvement in occupancy rate and ARR came from new tenants in Food & Beverage and Service segments ▪ Occupancy rate was strengthened further with new tenants, in Health & Beauty segment, commencing in Jan-20

0.0% 0.0% 29.9% 0.0% 31.2% 12.0% 25.3% 1.6% 31.2% 12.0% 55.2% 1.6% 2020 2021 2022 >2022 Anchor tenant Other tenant

I SAMMAKORN PLACE RATCHAPRUEK (SRP)

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Education 2.5% Fashion 3.0% Financial 10.5% Food & Beverage 23.3% Health & Beauty 4.7% Lifestyle 2.8% Service 1.1% Supermarket 31.4% Vacant 20.7%

CONTRACT EXPIRATION OCCUPANCY & AVERAGE MONTHLY RENTAL RATES PROJECT HIGHLIGHT TENANT MIX

483 481 479 517 440 446 451 410 91.1% 92.7% 94.2% 79.3% 50.0% 75.0% 100.0% 250 500 750 1,000 2017 2018 6M2019 Dec-19 Average Rental Rate (THB/sqm) Rental Revenue per NLA (THB/sqm) Occupancy rate (%) - RHS

Rental Revenue per NLA = Occupancy rate X Average Rental Rate

LOCATION 62/26-32 Ratchapruek road, Pak Kret, Bangkok INVESTED AREA ▪ GFA: 7,037 sqm ▪ NLA: 4,585 sqm INVESTMENT RIGHT (on investment date) ▪ 30-year leasehold OPERATING HIGHTLIGHT

▪ Occupancy rate plunged as some tenants gave up the lease prior to the investment transaction ▪ Significant effort dedicated to attract new tenants such as fitness center and major Food and Beverage brand

0.0% 39.6% 0.0% 0.0% 25.2% 25.2% 10.1% 0.0% 25.2% 64.8% 10.1% 0.0% 2020 2021 2022 >2022 Anchor tenant Other tenant

I THE SCENE TOWN IN TOWN (TS)

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Education 1.8% Fashion 5.6% Financial 4.3% Food & Beverage 38.0% Health & Beauty 17.5% Lifestyle 6.9% Office 2.3% Service 3.7% Supermarket 7.1% Vacant 12.7%

CONTRACT EXPIRATION OCCUPANCY & AVERAGE MONTHLY RENTAL RATES PROJECT HIGHLIGHT TENANT MIX

618 617 645 646 601 603 560 564 97.3% 97.7% 86.8% 87.3% 50.0% 75.0% 100.0% 250 500 750 1,000 2017 2018 6M2019 Dec-19 Average Rental Rate (THB/sqm) Rental Revenue per NLA (THB/sqm) Occupancy rate (%) - RHS

Rental Revenue per NLA = Occupancy rate X Average Rental Rate

LOCATION 1323 Ladprao 94, Wang Thongland, Bangkok INVESTED AREA ▪ GFA: 10,797 sqm ▪ NLA: 6,931 sqm INVESTMENT RIGHT (on investment date) ▪ 25.2-year leasehold OPERATING HIGHTLIGHT

▪ Leasing activity remained stable with some changes in tenant mix ▪ New Food & Beverage tenant recently took up the space and about to start the decoration

0.0% 15.7% 7.6% 0.0% 27.5% 33.2% 16.0% 0.0% 27.5% 49.0% 23.6% 0.0% 2020 2021 2022 >2022 Anchor tenant Other tenant

BKER GENERAL OVERVIEW

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I BKER VISION

Page 35

INVESTMENT THESIS VISION

STRATEGIC INVESTMENT

Invest in prime, well-performing assets located in strong submarkets across the region that are occupied by top tier tenants

OPERATIONAL EXCELLENCE

Increase REIT’s value through pro-active management,

• perational synergies, and economies of scale.

CREATIVE ASSET REPOSITIONING

Deliver superior returns through intelligent capital investments, asset repositioning, re-tenanting, and

• perations.

BALANCE SHEET STRENGTH

Maintain a strong balance sheet and financial flexibility

TO BE THE LEADING LIFESTYLE RETAIL REIT IN ASIA, BY CREATING ATTRACTIVE AND ENGAGING PLACES FOR PEOPLE AND THE COMMUNITY. “The FIRST CO-REIT Manager with the most diversified assets”

I

Crystal Design Center The Crystal Ekkamai- Ramintra The Crystal SB Ratchapruek Amorini Plearnary Mall The Scene Town-in-Town I’m Park Sammakorn Place Ramkamhaeng (West) Sammakorn Place Rangsit Sammakorn Place Ratchapruek Future Acquisitions K.E.REIT Management Co,Ltd. (REIT Manager)

BKER STRUCTURE

Page 36

Leasehold Right Operating Income Distributions Trustee fee Services Management fee Management services Principal & Interest Loan Institutioal & Retail Investors Project Owners

(At least 10% of acquisition value for 3 yrs)

Investors Bualuang K.E. Retail Leasehold Real Estate Investment Trust Co-REIT Manager Lender Commercial Bank Funds from Offering BKER INVESTMENT PORTFOLIO

TBD

Property Management Fund flow Services Trustee Property Management Fee

I PORTFOLIO PROPERTY TYPES AND NET LEASABLE AREA

Page 37

36,021 sqm

Crystal Design Center

30,778 sqm

The Crystal Ekkamai-Ramintra

24,426 sqm

The Crystal Ratchapruek

5,092 sqm

Amorini Ramintra

6,601 sqm

I’m Park Chula

11,353 sqm

Plearnary Mall Watcharapol

10,340 sqm

Sammakorn Place Ramkamhaeng (West)

3,413 sqm

Sammakorn Place Rangsit

4,585 sqm

Sammakorn Place Ratchapruek

6,931 sqm

The Scene Town-in-Town

TOTAL NET LEASABLE AREA

139,333

sqm

Remark: Information as of 30 June 2019

COMMUNITY MALL

is a 6,001-20,000 NLA sqm property with a supermarket and a fitness gym as two anchor tenants along with day-to-day product, specialty stores, F&B, and service

• fferings in an attractive setting.

NEIGHBORHOOD MALL

is a 3,001-6,000 NLA sqm property with a supermarket as an anchor tenant along with day-to-day product, specialty stores, F&B, and service offerings.

SHOPPING CENTER

is a large-scale >20,001 NLA sqm property with more than 2 anchor tenants and specialty stores such as cinema, fashion, lifestyle, F&B concepts, etc.

SPECIALTY MALL

is a property that has product

• fferings that is geared to a specific

target market, such as furniture and construction materials, family and education, sports and athletics, etc.

26% 22% 18% 8% 7% 5% 5% 4% 3% 2%

BKER has diversified its portfolio property types by investing in 40% Shopping Mall, 26% Specialty Mall, 25% Community Mall and 9% in Neighborhood Mall. Consequently, this diversification helps reduce the economic volatility to BKER