Corporate Presentation 1 st Quarter 2018 Financial Results 17 May - - PowerPoint PPT Presentation

Corporate Presentation 1st Quarter 2018 Financial Results

17 May 2018

Important Notice

This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for units in MRCB-Quill REIT (formerly know as Quill Capita Trust) (“MQReit”). The past performance of MQReit is not necessarily indicative of the future performance of MQReit. 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 limitations) 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 and

• ccupancy, changes in operating expenses including employee wages, benefits and

training, property expenses and governmental and public policy changes. You are cautioned not to place undue reliance on these forward-looking statements which are based on the manager’s current view of future events. The value of units in MQReit (Units”) and the income derived from them may fall as well as

• rise. Units are not obligations of, deposits in, or guaranteed by, the manager or any of its
• affiliates. An investment in Units is subject to investment risks, including the possible loss of the

principal amount invested. Investors have no right to request the manager to redeem their Units while the Units are listed. It is intended that unitholders may only deal in their Units through trading on the Main Board of Bursa Malaysia Securities Berhad. Listing of the Units on the Bursa Securities does not guarantee a liquid market for the Units. The information in this Announcement must not be published outside Malaysia.

MRCB-Quill REIT Presentation *May 2018* 2

Contents

MRCB-Quill REIT Presentation *May 2018*

• Financial Results
• Portfolio Update
• Conclusion

Slide No. 4 12 16

3

MRCB-Quill REIT Presentation *May 2018*

Quill Building 5 - IBM

Financial Results

Achieved 1Q 2018 Distributable Income Per Unit of 2.10 sen

(RM’000)

(Unaudited) 1Q 2017 Net Income 1 EPU 2 Net Property Income Gross Revenue

1 Net Income refers to realised income after taxation (exclude gain from re-measurement of derivatives and revaluation surplus) 2 EPU refers to Realised Earnings Per Unit 3 Distributable Income refers to realised income after taxation adjusted for Manager's management fee payable in units amounting to RM1.39 million. Distributable income per unit for the current quarter / period is computed based on the units in circulation of 1,068,000,000 units.

Variance

• 4.9%
• 9.3%
• 9.3%

MRCB-Quill REIT Presentation *May 2018*

(Unaudited) 1Q 2018 44,045 34,536 21,009 1.97 sen 46,571 37,135 23,165 2.17 sen

• 7.0%
• 3.3%

2.10 sen 2.17 sen Distributable Income Per Unit 3

• 3.3%

22,397 23,165 Distributable Income 3

5

(Unaudited) (Unaudited) (Audited) (Unaudited) as at as at as at as at 31 Jun 2017 (RM’000) 30 Sept 2017 (RM’000) 31 Dec 2017 (RM’000) 31 Mar 2018 (RM’000) Non Current Assets 2,224,597 2,224,395 2,181,387 2,181,654 Non Current Asset held for sale

• 25,000

25,000 Current Assets 79,963 56,715 82,005 63,229 Total Assets 2,304,560 2,281,110 2,288,392 2,269,883 Current Liabilities 21,182 136,935 142,586 152,979 Non Current Liabilities 878,952 763,605 761,082 755,242 Net Assets 1,404,426 1,380,570 1,384,724 1,361,662 No of Units 1,068,000 1,068,000 1,068,000 1,068,000 NAV per Unit (RM) 1.3150 1.2927 1.2966 1.2750

Total Assets – RM2.27 billion NAV per unit – RM1.2750

MRCB-Quill REIT Presentation *May 2018* 6

Unaudited Unaudited Audited Unaudited as at as at as at as at 31 Jun 17 30 Sept 17 31 Dec 17 31 Mar 18 Total Debts (RM’000) 853,101 854,150 853,453 854,177 Gearing Ratio ¹ 0.37x 0.37x 0.37x 0.38x Interest Coverage 2 3.44x 3.38x 2.40x 3.27x Average Term to Maturity (year) 3 3.30 3.05 2.79 2.55 Average Cost of Debt (p.a.) 4 4.4% 4.4% 4.4% 4.4%

Stable Financial Indicators

Notes: 1.Gearing ratio refers to Gross Debt over Total Assets. 2.Interest coverage refers to year to date (YTD) EBITDA / YTD Interest Expense 3.Average Term to Maturity means weighted average time lapse to maturity 4.Average Cost of Debt is calculated based on YTD Interest Expense / Average Weighted Borrowing

MRCB-Quill REIT Presentation *May 2018* 7

38%

0% 10% 20% 30% 40% 50% 60%

31-Mar

Gearing Ratio

Capital Management

MRCB-Quill REIT Presentation *May 2018*

CPs RM118m MTN RM117m

RM118m CPs

Prudent Capital Management

Average cost of debt

4.4%

76%* of borrowings on fixed rate Total average borrowings : RM861 mil Gearing level

38%

Below SC limit of 50%

SC Limit Floating rate, 24% Fixed rate, 76%

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50 100 150 200 250 300 350 400 450

2017 2018 2019 2020 2021 2022

 Next Refinancing Due in September 2018

Debt Maturity Profile

MRCB-Quill REIT Presentation *May 2018*

CPs RM118m

RM118m CPs

RM(mil) 22%

Average debt to maturity : 2.55 years

14%

Note;

• 1. MTN - Medium Term Notes
• 2. CP – Commercial Papers
• 3. TL – Term Loan

45%

CP RM130mil MTN RM60 mil TL RM117m CP RM279mil TL RM110mil

19%

TL RM117m MTN RM130mil CP RM61 mil CP RM279mil TL RM110mil CP RM144mil MTN RM20mil

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MRCB-Quill REIT Presentation *May 2018*

Quill Building 3 - BMW

Portfolio Update @ 31 March 2018

Portfolio of Quality Assets @31 March 2018

a) The Properties were valued by Nawawi Tie Leung Property Consultants Sdn. Bhd, an independent firm of professional valuer registered with the Board of Valuers, Appraisers & Estate Agents Malaysia. b) The Properties were valued by CH Williams Talhar & Wong Sdn. Bhd, an independent firm of professional valuer, registered with the Board of Valuers, Appraisers & Estate Agents Malaysia. c) Save for Quill Building 8 – DHK (XPJ), all properties were based on valuation as at 31 December 2017. Quill Building 8 – DHK (XPJ) was based on valuation dated 17 October 2017. d) Proposed disposal of Quill Building 8 – DHL (XPJ) was announced on 8 January 2018 and completed on 12 April 2018.

Quill Building 4

• DHL 2(a)

Quill Building 2

• HSBC (a)

Quill Building 3

• BMW(a)

Quill Building 5

• IBM(a)

Part of Plaza Mon’t Kiara(b) Quill Building 1

• DHL 1(a)

TESCO Building Penang(a)

Market Value

• f

11 Properties: RM2.20 bil(c)

MRCB-Quill REIT Presentation *May 2018*

Platinum Sentral

• KL Sentral (b)

Wisma Technip (b) Quill Building 8

• DHL (XPJ) (a) (d)

Total NLA: 2.25 mil sq ft

*Excluding car park area

Portfolio Occupancy Rate: 96.2%

Menara Shell (b)

Weighted Average Term to Expiry: 5.1 years

11

Disposal completed

• n 12 April 2018

Geographical Diversification

By Valuation

¹

Notes: (1) Other Klang Valley Area refers to Klang Valley generally excluding KL city centre, KL Sentral and Mont’ Kiara. Klang Valley refers to Kuala Lumpur and Selangor State excluding Kuala Selangor, Sepang and Sabak Bernam. (2) The Properties were valued by Nawawi Tie Leung Property Consultants Sdn Bhd and CH Williams Talhar & Wong Sdn Bhd, independent firm of professional valuers registered with the Board of Valuers, Appraisers & Estate Agents Malaysia.

Klang Valley 77% Cyberjaya 17% Penang 6%

MRCB-Quill REIT Presentation *May 2018*

Cyberjaya 17% Kuala Lumpur City Centre 8% KL Sentral 62% Penang 6% Mont' Kiara 5% Other Klang Valley Area 1%

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Diversified Segmental Contributions

Notes: (1) Office comprises Quill Buildings (excluding Quill Building 8-DHL (XPJ) at Glenmarie, Shah Alam), Platinum Sentral, Wisma Technip and Menara Shell (2) Retail refers to retail portion of Plaza Mont’ Kiara & TESCO Building Penang (3) Car Park refers to car parking bays in Plaza Mont’ Kiara (4) Other commercial building refers to Quill- Building 8- DHL (XPJ) at Glenmarie, Shah Alam (5) The Properties were valued by Nawawi Tie Leung Property Consultants Sdn Bhd and CH Williams Talhar & Wong Sdn Bhd, independent firm of professional valuers registered with the Board of Valuers, Appraisers & Estate Agents Malaysia.

By Valuation

MRCB-Quill REIT Presentation *May 2018*

Office 88% Retail Assets 9% Car Park 2% Other Commercial Building 1%

13

Tenant Mix

By Net Lettable Area

MRCB-Quill REIT Presentation *May 2018*

Well Balanced Tenancy Mix

14

Government Linked Office 14.4% Retail 18.8% Education 0.8% Banking 8.5% Automotive 2.4% Logistics 11.6% Oil & Gas, 30.9% IT/ Electronics 4.2% Services 0.7% Insurance 7.2% FMCG, 0.3% Manufacturing, 0.2%

Lease Expiry Profile

• 28% of Total NLA due in 2018

% of net lettable area that are due for renewal

sq ft

MRCB-Quill REIT Presentation *May 2018* 15

1% 23% 4% 15% 17% 1% 39%

• 100,000

200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 2018 2019 2020 2021 2022 - 2032

Lease Up for Renewal by NLA - 31 Mar 2018

Lease Expiring Renewed Not Renewed

MRCB-Quill REIT Presentation *May 2018*

Conclusion

Quill Building 1 – DHL 1

In Summary

MRCB-Quill REIT Presentation *May 2018*

• Proactive asset management strategies to focus on tenant relations and

continuous building improvements

• Prudent capital management strategies
• Continue to explore yield accretive acquisition opportunities

Distributable Income Per Unit of 2.10 sen for 1Q 2018

• Achieved 1Q 2018 EPU and Distributable Income Per Unit of 1.97 sen and

2.10 sen respectively

• Completed renewals due in 1Q 2018 with 81% renewals successfully in

place

• MQREIT’s portfolio occupancy rate as at 31 March 2018 was 96.2%
• Completed the disposal of Quill Building 8 – DHL(XPJ) on 12 April 2018

Year 2018 Prospects – Ongoing Strategies

17

Thank you

For enquires, please contact: Ms Joyce Loh (General Line: 603-2786 8080) (Fax : 603-2780 0098)