Corporate Presentation 2 nd Quarter 2016 Financial Results 2 August - - PowerPoint PPT Presentation

Corporate Presentation 2nd Quarter 2016 Financial Results

2 August 2016

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 The information in this Announcement must not be published outside Malaysia.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 *August 2016* 2

Contents

MRCB-Quill REIT Presentation *August 2016*

• Financial Results
• Portfolio Update
• Conclusion

Slide No. 4 10 16

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MRCB-Quill REIT Presentation *August 2016*

Quill Building 5 - IBM

Financial Results

Delivers DPU of 4.23 sen for 1H 2016

(RM’000)

(Unaudited) 2Q 2015 1H 2015 (Unaudited) 2Q 2016 1H 2016 32,565 25,700 15,387 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 DPU refers to Distribution Per Unit

2.33 sen

4

Variance +1.2% +5.7% +12.9% +5.9%

MRCB-Quill REIT Presentation *August 2016*

32,175 24,314 13,632 2.20 sen

5

DPU 3 4.10 sen 4.23 sen +3.2%

(Unaudited) (Audited) (Unaudited) (Unaudited) as at as at as at as at 30 Sept 15 (RM’000) 31 Dec 2015 (RM’000) 31 Mar 2016 (RM’000) 30 Jun 2016 (RM’000) Non Current Assets 1,569,724 1,573,632 1,571,915 1,571,797 Current Assets 37,956 51,608 33,238 54,407 Total Assets 1,607,680 1,625,240 1,605,153 1,626,204 Current Liabilities 20,133 205,001 199,420 205,424 Non Current Liabilities 703,150 516,384 519,506 519,893 Net Assets 884,397 903,855 886,227 900,887 No of Units 661,381 661,381 661,381 661,381 NAV per Unit (RM) 1.3372 1.3666 1.3400 1.3621

Total Assets – RM1.63 billion NAV per unit – RM1.3621

MRCB-Quill REIT Presentation *August 2016* 6

Unaudited Audited Unaudited Unaudited as at as at as at as at 30 Sept 15 31 Dec 15 31 Mar 16 31 Jun 16 Total Debts (RM’000) 688,170 689,722 688,607 690,180 Gearing Ratio ¹ 0.43x 0.42x 0.43x 0.42x Interest Coverage 2 2.96x 3.02x 3.05x 3.05x Average Term to Maturity (year) 3 3.35 3.09 2.84 2.60 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 *August 2016* 7

42% 0% 10% 20% 30% 40% 50% 60%

30-Jun

Gearing Ratio

Capital Management

MRCB-Quill REIT Presentation *August 2016*

CPs RM118m MTN RM117m

RM118m CPs

Prudent Capital Management

Average cost of debt

4.4%

100%* of borrowings on fixed rate Total average borrowings : RM696 mil Gearing level

42%

Below SC limit of 50%

SC Limit

Fixed rate 100%

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50 100 150 200 250 300 350 400 450 2015 2016 2017 2018 2019 2020

Next Refinancing Due in September 2016

Debt Maturity Profile

MRCB-Quill REIT Presentation *August 2016*

CPs RM118m TL RM72.2m

RM118m CPs

RM(mil)

17%

Average debt to maturity : 2.60 years

27%

Note;

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

MTN RM60m 56% CP RM279mil TL RM110mil CP RM130mil MTN RM60 mil TL RM117m

The Manager has commenced the refinancing exercise for the borrowings due in September 2016.

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MRCB-Quill REIT Presentation *August 2016*

Quill Building 3 - BMW

Portfolio Update

Portfolio of Quality Assets

a) The Properties were valued by DTZ 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.

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)

10 Properties valued at RM1.57 bil

MRCB-Quill REIT Presentation *August 2016*

Platinum Sentral

• KL Sentral (b)

Wisma Technip (b) Quill Building 8

• DHL (XPJ) (a)

Total NLA of 1.70 mil sq ft

*Excluding car park area

Portfolio Occupancy Rate 97.2%

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Geographical Diversification

By Valuation

¹

Notes: (1) Other Klang Valley Area refers to Klang Valley generally excluding KL city centre 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 DTZ Nawawi Tie Leung Property Consultants Sdn Bhd, an independent firm of professional valuer registered with the Board of Valuers, Appraisers & Estate Agents Malaysia. (3) 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.

Klang Valley 68% Cyberjaya 23% Penang 9%

MRCB-Quill REIT Presentation *August 2016*

Cyberjaya 23% Kuala Lumpur City Centre 11% KL Sentral 48% Penang 9% Mont' Kiara 7% Other Klang Valley Area 2%

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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 and Wisma Technip (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 DTZ 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 *August 2016*

Office 82% Retail Assets 13% Car Park 3% Other Commercial Building 2%

13

Tenant Mix

By Net Lettable Area

MRCB-Quill REIT Presentation *April 2016*

Well Balanced Tenancy Mix

Government Linked Office 18% Retail 24% Education 1% Banking 11% Automotive 2% Logistics 15% Oil & Gas 21% IT/ Electronics 7%

14

Lease Expiry Profile

% of net lettable area that are due for renewal

sq ft

MRCB-Quill REIT Presentation *April 2016*

Lease Expiring Renewed Not Renewed

15

0.6% 2.7% 4% 13% 26% 11% 43%

• 100,000

200,000 300,000 400,000 500,000 600,000 700,000 800,000 2016 2017 2018 2019 2020 - 2032

Lease Up for Renewal by NLA - 30 June 2016

MRCB-Quill REIT Presentation *August 2016*

Conclusion

Quill Building 1 – DHL 1

In Summary

MRCB-Quill REIT Presentation *August 2016*

• Proactive asset management strategies to focus on tenant relations and continuous

building improvements

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

2Q 2016 : Deliver DPU of 4.23 sen for 1H 2016

• Achieved Realised EPU of 2.33 sen in 2Q 2016, 5.9% higher than 2.20 sen achieved on 2Q

2015

• Delivers DPU of 4.23 sen in 1H 2016, which is 3.2% higher than 4.10 sen distributed in 1H

2015

• Successfully renewed 87% of the leases due in 1H 2016
• On 30 June 2016 MQREIT entered into a conditional sale and purchase agreement with

348 Sentral Sdn Bhd, a wholly-owned subsidiary of MRCB, for the proposed acquisition of Menara Shell together with a five (5)-storey podium and a four (4)-storey basement car park for a purchase consideration of RM640,000,000 which shall be satisfied entirely in cash (“Proposed Acquisition”)

Year 2016 Prospects – Ongoing Strategies

17

Thank you

For enquires, please contact: Ms Yong Su Lin Ms Joyce Loh Mr Victor Wong (General Line: 603-2786 8080) (Fax : 603-2780 0098)