CPN Retail Growth Property Fund Opportunity Day 2 nd Quarter Results - - PowerPoint PPT Presentation

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Opportunity Day – 2nd Quarter Results 28 August 2006

CPN Retail Growth Property Fund

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Important Notice

• The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation
• f an offer or invitation to purchase or subscribe for units in CPN Retail Growth Property Fund (“CPNRF and units in CPNRF, “Units”) in any

jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever.

• This presentation may include information which is forward-looking in nature. Forward-looking information involve known and unknown risks,

uncertainties and other factors which may impact on the actual outcomes, including economic conditions in the markets in which CPNRF operates and general achievement of CPNRF business forecasts, which will cause the actual results, performance or achievements of CPNRF to differ, perhaps materially, from the results, performance or achievements expressed or implied in this presentation.

• This presentation has been prepared by the CPNRF Property Manager. The information in this presentation has not been independently verified.

No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. None of the CPNRF Property Manager or CPNRF Fund Manager or any of its agents or advisers, or any of their respective affiliates, advisers or representatives, shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.

• This presentation is made, furnished and distributed for information purposes only. No part of this presentation shall be relied upon directly or

indirectly for any investment decision-making or for any other purposes.

• This presentation and all other information, materials or documents provided in connection therewith, shall not, either in whole or in part, be

reproduced, redistributed or made available to any other person, save in strict compliance with all applicable laws.

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Contents

13 Operations and Developments 3. 9 Financial Highlights 2. 4 Fund Overview 1. Page

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• 1. Fund Overview

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CPNRF Fund Information

Note : 1 The trustee and custodian will be changed to Kasikorn Bank Plc. The change will be effective from 1 September 2006 onward.

Name Property Manager Fund Manager Trustee Registrar Assets Type Total Fund Size Fund Registered Date Fund Investing Date Fund Listed Date Secondary Market CPN Retail Growth Property Fund (“CPNRF”) Central Pattana PCL TMB Asset Management Co. Ltd. Citi Bank, Bangkok (1) TMB Asset Management Co. Ltd. Central Plaza Rama II, Central Plaza Rama III Property Fund Type I (Indefinite Life) THB 10,915 million 11 August 2005 15 August 2005 for Central Plaza Rama II 16 August 2005 for Central Plaza Rama III 23 August 2005 Stock Exchange of Thailand (“SET”)

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CPNRF Fund Structure

Lease of land: 90-2-9.3 Rai (Principle Leasing Contract)

Central Pattana Rama II Co., Ltd

CPN Retail Growth Property Fund (CPNRF)

(1) Property Manager (2) Undertaking: CP2 and CP3 performance Sublease of land: 53-2-39.4 Rai 20 years Lease of building and parking 20 years

Land Owner Central Pattana Rama III Co., Ltd

Owner of land and building Lease of land and building 30 + 30 + 30 years

Central Pattana Plc.

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CPNRF Dividend Payment

1 April 2006 to 30 June 2006 : Bt 0.2058 per unit approximately 7.88% Annualized Yield(1) 1 January 2006 to 31 March 2006 : Bt 0.1886 per unit Distribution Period & Rate

30 August 2006

Book Closure Date

25 August 2006

XD Date 13 September 2006 Payment Date

Distribution Time Table

Note1 : Based on par value Bt 10 per unit.

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Attractive Trading Yield

5.51 7.48 0.75 3.25 4.24 5.38

2 4 6 8

CPNRF Annualized Yield 10 yr Govt Bond Yield 5 yr Govt Bond Yield SET Dividend Yield 3 mth Fixed Deposit Saving Deposit

Yield (%)

/1

197 bps spread

Note: 1. Calculated from 2006 dividend projection (from IPO prospectus) and the closing unit price as at 28 July 2006 at Bt 10.10 Source: Bloomberg as at 28 July 2006

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• 2. Financial Highlights

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2Q 2006 Financial Highlights

24.95% 24.97% 23.97% % of actual to projection 10.42 0.189 204,718 288,136 Actual 1Q06 52.19% 52.32% 49.05% % of actual to projection 27.23% 27.36% 25.08% % of actual to projection 10.14 0.394 /1 429,030 589,627 Actual 1H06 819,992 224,312 Net Investment Income 0.756 0.206 /1 Dividend per Unit (Bt) 10.00 10.14 NAV per Unit (Bt) 1,202,176 301,491 Gross Revenue Projection (IPO Prospectus) Actual 2Q06

(‘000 Baht)

Delivered as projected since IPO

Note:

• 1. Indicative Dividend per Unit based on actual distributable income and 95% payout assumption

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Income Statement

9.57% (7.48%) 1.10% 7.12% (10.16%) 4.63% 192.23% 2.71%

Q-o-Q

429,030 160,597 24,084 10,625 125,888 589,627 11,508 578,119

Actual 1H06

72.76% 27.24% 4.08% 1.80% 21.35% 100.00% 1.95% 98.05%

%

74.40% 25.60% 4.02% 1.83% 19.76% 100.00% 2.84% 97.16%

%

224,312 77,179 12,108 5,495 59,576 301,491 8,574 292,917

Actual 2Q06 /1

68.21% 819,992 71.05% 204,718 Net Investment Income 31.79% 382,184 28.95% 83,418 Total Expenses 4.01% 48,208 4.16% 11,976 Amortization of deferred expenses 1.90% 22,812 1.78% 5,130 Management fee and

• ther management

expenses 25.88% 311,164 23.01% 66,312 Property related expenses 100.00% 1,202,176 100.00% 288,136 Total Income 0.89% 10,656 1.02% 2,934 Interest income 99.11% 1,191,520 98.98% 285,202 Property income

% Projection for 2006 /2 % Actual 1Q06 /1 (‘000 Baht)

Note: 1. Based on unaudited financial statements

• 2. Based on CPNRF IPO prospectus

Financial year end: 31 December

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Balance Sheet

500,000 Promissary notes 11,071,522 11,053,334 Net Assets Value 1,091,500 156,522 10.915,000 11,071,522 446,140 59,607 406,533 11,537,662 170,620 10,707,000 160,042 As at 30 Jun 06 /1 1,091,500 138,334 10,915,000 11,053,334 479,515 72,711 406,804 11,532,849 172,446 10,707,000 653,403 As at 31 Mar 06 /1 Units in Issue (000 units) Retained Earnings Capital Received from Unitholder Net Assets Less Total Liabilities Other Liabilities Deposits Total Assets Other Assets Investment Cash (‘000 Baht)

Note: 1. Based on unaudited financial statements Cash decreased mainly given by investments in promissory notes of Bt 500 mil and dividend payment of Bt 205.9 mil, representing Bt 0.1886 per unit.

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• 3. Operations and Developments

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Occupancy Rate

CPNRF Portfolio Rama3 Rama2 98.7% 98.0% 99.0% 31 Mar 06 99.0% 99.0% 132,209 420,922 98.0% 99.0% 38,846 169,740 99.4% 99.0% 93,363 251,182 30 Jun 06 31 Dec 05 Leasable Area Gross Area Occupancy Rate /1 Area (sqm)

Note: 1. Include tenants with short-term lease agreements (such as kiosks, carts, ATMs, and coin machines).

Consistently high occupancy rates achieved

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New and Renewed Lease Profile

• No. of leases

From 1 January to 30 June 2006 /1 11.7% 13.7% 9.2% Actual Increase / (Decrease) in Rental Rates 5,862 3,271 2,591 Area (sqm) 48 24 24 Renewals and New Leases CPNRF Portfolio Rama3 Rama2 Property 5.0% 4.4% 5.0% 8.4% 5.0% 2.8% IPO Projection /3 % of Total /2

Rental rate improved significantly due to strong demand of rental space and a result of higher traffic into the properties

Note: 1. Excludes tenants with rental agreement < 6 months and rental agreement with revenue sharing clause.

• 2. % of total leasable area as at 30 June 2006.
• 3. Based on prospectus projected rental growth rate for 2006.

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Lease Expiry Profile

29% 0% 20% 37% 21% 7% 5% 40% 15% 22% 22% 38% 20% 12% 10%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Jul- Dec 2007 2008 2009- 2024 CDS 2025

% of total occupied area

Rama 2 Rama 3 Total Portfolio

Well balanced lease expiry profile

Central Department Store lease expiring 2025

Leasable Area CPNRF Portfolio Rama3 Rama2 13,704 8,730 4,974 Area (sqm) 10.4% 157 6.6% 66 3.8% 91 % of Total /1 No.of Leases

Portfolio Lease Expiry Profile for Jul - Dec 2006 by Property

Note: 1. % of total leasable area as at 30 June 2006. Exclude rental agreements < 1 year, such as kiosks, carts, ATMs, and coin machines.

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Rental Structure Profile

38.8% 61.2% 38.5% 61.5% 0% 10% 20% 30% 40% 50% 60% 70% Fixed Rental structure Variable rental structure

% of occupied area

31-Dec-05 30-Jun-06

Rental structure by tenants /2 Rental structure by Occupied Area /1

128,415 49,825 78,590 31 Dec 05 130,074 Total Area 50,097 79,977 30 Jun 06 Percentage of Sales Fixed Rent Occupied Area (sqm)

15.9% 84.1% 7.2% 92.8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Fixed rental structure Variable rental structure

% of tenants

31-Dec-05 30-Jun-06

862 137 725 31 Dec 05 845 Total Tenants 61 784 30 Jun 06 Percentage of Sales Fixed Rent

• No. of Tenants

Note: 1. % of total occupied area under short-term rental contract as at 30 June 2006 and 31 December 2005.

• 2. % of total tenants under short-term rental contract as at 30 June 2006 and 31 December 2005.

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Well Diversified Tenant Trade Mix

CPNRF Portfolio: Tenant Trade Mix

Food & Beverage 14% Department Store 20% Vacant 1% Others 11% Electronics & Furnishings 17% Entertaint ment, 14% Fashion Health & Beauty 23%

Rama 2: Tenant Trade Mix Rama 3: Tenant Trade Mix

Note : Based on leasable area as of 30 June 2006

Food & Beverage, 15% Department Store, 29% Vacant, 1% Others, 10% Electronics & Furnishings, 16% Enter- tainment, 11% Fashion Health & Beauty, 18% Electronics & Furnishings, 20% Food & Beverage, 13% Vacant, 2% Entertainment, 20% Fashion / Health & Beauty, 33% Others, 12%

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High Quality Tenants

Note: 1. Based on leasable area as at 30 June 2006

• 2. The Fund does not invest in the leasable areas which are the location of CDS and Major Bowl at Central Plaza

Ratchada-Rama III since those areas are owned by Ratchada Nonsi Department Store Co., Ltd 100.0% 132,209 38,846 93,363 Total Leasable Area 45.9% 60,638 10,973 49,665 Total Top 10 Tenants 0.5% 672 323 349 Mar 2007, Dec 2008 Educational Inlingua Education 0.8% 1,026 1,026 Aug 2006 Computer IT City 0.8% 1,045 1,045 Mar 2013 Specialties Office Depot 0.9% 1,200 1,200 Oct 2006, Nov 2006, Dec 2007, Apr 2008, Feb 2009 Furnishing Index Furniture 1.4% 1,894 1,894 Apr 2009 Sports & Fitness Fitness First 2.2% 2,893 2,893 Apr 2012, Dec 2012 Entertainment Major Bowl 3.8% 4,961 4,961 Dec 2017 Supermarket TOPS Supermarket % of Total Leasable Area /1 Area (sqm) Expiry Year Trade Sector Top 10 Tenants 7,765 12,182 27,000 Total Dec 2012 Apr 2012, Dec 2012 Mar 2013 Furnishing Entertainment Department Store Homework Major Cineplex /2 Central Department Store /2 5.9% 7,765 9.2% 20.4% 6,530 Rama 3 5,652 27,000 Rama 2

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Traffic Performance

Average Traffic Per Day By Property

52,068 64,797 56,645 63,614 120,415 93,672 75,413 54,517 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 2003 2004 2005 1H2006 Persons per day

28% 13%

• Traffic decreased in 1H2006 mainly due to construction of overpasses on Rama

3 road in front of Rama 3 center

Rama 3

• Traffic increased in 1H2006 due to the completion of a pedestrian bridge linking

BIGC to shopping center and also due to increased promotional activities

Rama 2

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Asset Enhancement Initiatives

Rama 2: New salable area & parking space

Project Scope:

Conversion of a portion of 4th floor parking (110 cars) to rental space for new anchor (approximately 2,700 sqm). Construction of new plate floor for additional parking (80 cars).

Investment:

~ Bt 70 million ~ IRR 15%

Impact:

Increase rental space and potential to increase traffic flow. Completion: 2Q 2007 (Tentative).

New Salable Area for new Anchor New Parking

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Asset Enhancement Initiatives

Rama 3: Minor Renovation

CDS (Extension) New Food Court Reduce from 1,300 to 852.91 sq.m. New Escalator Up-down 6th to 7th New Salable Area

Project Scope:

Reduction and relocation of Food Court area. Increase leasable area for Central Department Store expansion. Relocation of escalator.

Investment:

~ Bt 30 million ~ IRR 15%

Impact:

Potential to increase rental rate and traffic flow. Completion: 1Q 2007 (Tentative).