Frasers Property Thailand Industrial Freehold & Leasehold REIT
Opportunity Day
13 December 2019
FPIT Bangplee 1, Samutprakarn Laemchabang 2, Chonburi, Thailand (FPIT’s properties)
Frasers Property Thailand Industrial Freehold & Leasehold REIT - - PowerPoint PPT Presentation
Frasers Property Thailand Industrial Freehold & Leasehold REIT Opportunity Day 13 December 2019 Laemchabang 2, Chonburi, Thailand (FPITs properties) FPIT Bangplee 1, Samutprakarn Important notice This presentation is for information
13 December 2019
FPIT Bangplee 1, Samutprakarn Laemchabang 2, Chonburi, Thailand (FPIT’s properties)
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This presentation is for information purposes only and does not constitute or form part of an offer, solicitation, recommendation or invitation for the sale or purchase
any other securities of FTREIT. No part of it nor the fact of its presentation shall form the basis of or be relied upon connection with any investment decision, contract or commitment whatsoever. The past performance of FTREIT and Frasers Property Industrial REIT Management (Thailand) Company Limited, as the REIT manger of FTREIT (the “Manager”), is not necessarily indicative of the future performance of FTREIT and the Manager. This presentation may contains “forward-looking statements”, including forward-looking financial information, that involve assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance, outcomes or achievements of FTREIT or the Manger, or industry results, to be materially different from those expressed in such forward-looking statements and financial information. Such forward-looking statements and financial information are based on certain assumptions and expectations of future events regarding FTREIT’s present and future business strategies and the environment in which FTREIT will operate. The Manager does not guarantee that these assumptions and expectations are accurate or will be realized. The Manager does not assume any responsibilities to amend, modify or revise any forward-looking statement, on the basis of any subsequent developments, information or events, or otherwise, subject to compliance with all applicable laws and regulations and/or the rules of the Securities and Exchange Commission, Thailand (“SEC”) and the Stock Exchange of Thailand (“SET”) and/or any other regulatory or supervisory body or agency The information and opinions in this presentation are subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning FTREIT. None of FPT, FTREIT, the Manager, or any of their respective holding companies, subsidiaries, affiliates, associated undertaking or controlling persons, or any of their respective directors, officers, partners, employees, agents, representatives, advisers or legal advisers makes any representation or warranty, express or implied, as to the accuracy, completeness or correctness of the information contained in this presentation or otherwise made available or as to the reasonableness of any assumption contained herein or therein, and any liability whatsoever (in negligence or otherwise) for any loss howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in connection with this presentation is expressly disclaimed. Further, nothing in this presentation should be construed as constitution legal, business, tax or financial advice. The value of Units and the income derived from them, if any, may fall or rise. Unit are not obligations of deposits of, deposits in, or guaranteed by, 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. Investors should note that they have no right to request the Manager to redeem their Units are listed. It is intended that holders of Units may only deal in their Units through trading on SET. Listing of the Units on the SET does not guarantee a liquid market for the Units. Please study relevant information carefully before making any investment decision. Investors are encouraged to make an investment only when such decision correspond with their own objective and only after they have acknowledged all risks and have been informed that the returns may be more or less than initial sum.
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Listing of PFPOs - TFUND, TLOGIS and TGROWTH on the Stock Exchange of Thailand (SET) in 2005, 2009 and 2013 respectively.
Conversion PFPO into TREIT which made TREIT become the largest Industrial REIT in Thailand”
Listing of TREIT in 2015
1990 2005 2009
Frasers Property become TICON’s major shareholders
2017
2013 2015 TICON was established in 1990 and was listed
2019
Rebranding “TREIT” to Frasers Property Thailand Industrial Freehold & Leasehold REIT (“FTREIT”)
FTREIT is the largest industrial and logistics REIT in Thailand
Industrial PF Logistics PF Industrial&Logistics PF(LH) Industrial&Logistics REIT
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Frasers Property Thailand Industrial Freehold & Leasehold REIT (“FTREIT”) Unitholders (2,602 Million Units)
Freehold right/ Leasehold Right of industrial properties
Invest
Property Manager
Frasers Property (Thailand) PCL Frasers Property Industrial (Thailand) Co.,Ltd +
Properties
F W
+
Factory Warehouses = 554
Units
FTREIT have industrial properties has located in prime industrial and logistics locations
Manage Properties REIT Manager
Frasers Property Industrial REIT Management (Thailand) Co.,Ltd (“FIRM”)
Set strategies and Manage REIT REIT Manager fee Property Manager Fee Trustee
BBL Asset Management (“BBLAM”) Act on behalf
Trustee fee Property Manager Fee Tenants
Rent Property Rental Fee
Lender/ Bondholders
DPU Invest Interest Lend
Sponsor Third Party
FTREIT is managed and set direction by “FIRM”, Property manger are “FPT” and “FPIT”
Owner of Properties
96.0% 4.0 %
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Breakdown By type of Investors 23.1% 56.1% 20.8%
Institutions & Funds Sponsors Retail Investors
Note: Reference from closing book information from SET 1. FPT Group = Frasers Property Thailand (International) PTE. LTD. and Frasers Property (Thailand) PCL. No
Name Units 30 Sep 2019 % Units 30 Jun 2019 % Units % 1 Frasers Property (Thailand) Group/1 601,693,700 23.1 601,693,700 23.1
Social Security Office 388,875,662 14.9 432,094,662 16.6
3 Bangkok Life Assurance Plc. 160,299,453 6.2 160,299,453 6.2
Bangkok Bank Plc. 104,947,981 4.0 104,947,981 4.0
Muang Thai Life Assurance Plc. 45,408,242 1.7 48,362,942 1.9
6 Bangkok Insurance Plc. 37,359,673 1.4 37,359,673 1.4
Mitsui & Co. (Asia Pacific) Pte. Ltd. 35,000,000 1.3 35,000,000 1.3
SCB Income Plus Fund 33,733,933 1.3 29,917,333 1.2 + 3,816,600 + 0.1 9 MFC Property Dividend Fund 30,991,000 1.2 28,377,500 1.1 + 2,613,500 + 0.1 10 K Property Sector Fund (K-Prop) 30,161,500 1.2 21,971,500 0.8 + 8,190,000 + 0.4 11 Others 1,133,915,904 43.6 1,102,362,304 42.4 + 31,553,600 + 1.2 Total 2,602,387,048 100.0 2,602,387,048 100.0
Foreign Investors Domestic Investors
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Our assets are located in prime industrial and logistics area in Thailand
Northern Bangkok area
(Ayutthaya and Pathumthani Province) ▪ Bangpa-In Industrial Estate [BPI] ▪ Hi-Tech Industrial Estate [HITECH] ▪ Rojana Industrial Park [RJN] ▪ Rojana Ayutthaya [RJN] ▪ Navanakorn Industrial Promotion Zone [NVA] ▪ Wangnoi 1 & 2 [WN1&2] ▪ Wangnoi Cold Storage + CTD
Eastern Bangkok area
(Samutprakarn and Prachinburi Province) ▪ Bangpoo Industrial Estate [Bangpoo] ▪ Bangplee 1 ▪ Bangplee 3 ▪ Rojana Prachinburi [RJP]
EEC area
(Chonburi, Chachoengsao and Rayong Province) ▪ Amata City Chonburi [AMC] ▪ Amata City Rayong Industrial Estate [AMR] ▪ Hemaraj Chonburi Industrial Estate [BOWIN] ▪ Bowin warehouse ▪ Pinthong Industrial Estate project 1 – 3 [PT 1- 3] ▪ Eastern Seaboard 1(A) – 1(B) [ES1(A) – ES1(B)] ▪ Eastern Seaboard 2(A) [ES2(A)] ▪ Laemchabang 1 / Laemchabang 2 ▪ Sriracha [SRI] ▪ Phan thong 1[PHAN] ▪ Bangna
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Deliver consistently growing and sustainable DPU and NAV per unit to unitholders though FTREIT business framework
Expected outcome
Operation Excellence
Operation Excellence Acquisition Assets and AEI Efficient Capital Management
Strategies to support the business framework
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▪ Proactive leasing: Maintain high retention rate,
▪ Enhance tenant quality and base by leveraging on sponsor’s capabilities and networks.
Business Framework
Acquisition Assets + AEI
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▪ Right of first refusal (“ROFR”) for industrial properties from FPT’s Sponsor. ▪ Third-party asset acquisition. ▪ Search and propose AEI opportunity to target tenants which required additional space in same property. ▪ Divest non-core assets and redeploy capital to acquire/develop higher value-adding properties.
+Sustain ability
Sustainability
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▪ Sustainability initiative project such as Solar Rooftop, Initiative with tenants ecological activities. ▪ Initiatives for officers and employees of the asset management company Efficient Capital Management
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▪ Optimize capital mix and prudent capital management ▪ Manage schedule of debt repayment matching with asset portfolio performance
FIRM will implement business framework to enhance performance and achieve target DPU for unitholders of FTREIT and shareholders of FIRM
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As at 30 September 2019
1. Interest Coverage ratio = EBITDA (excluded gain from divestment)/Interest Expense. 2. Official announcement rating by TRIS on 3 May 2019. 3. Fiscal year ending 30 September. 4. Refinanced by issuance new units on Jan’20.
Frasers logistic Bangna, Chachoengsao, Thailand
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locations which are strategic locations for industrial and logistic hubs in Thailand.
Investment Highlight and asset performance as of 30 September 2019
NLA OCR% Quality tenants
120,979 SQ.M.
Total Inv Value
THB 3,201 Million(1)
Located in
6 Provinces 11 Locations
Tenants
Logistics Electronics Automotive Others
(1) FPIT properties value is THB 2,544 Million (Exclude acquisition expenses) and CTD cold storage value is THB 657 Million (Exclude acquisition expenses and Tax) (Value of CTD property included VAT is THB 661 Million), CTD will transfer remaining equipment after CTD clearing VAT and documents with Customs, transfer schedule will not late than 31 January 2020 (Value of properties including VAT is THB 3,205 Million) (2) Included guarantee rental and service income (occupancy rate excluded guarantee is around 95%)
100% Freehold
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Project Completed on 16 January 2019
+1,700 sqm 14,250 sqm
Internal External
Height Floor Loading
AEI Specification
3 Tons 7 Meters
AEI Area
1,700 sqm
Total Area After AEI 15,950 sqm
1,700 SQ.M of factory unit AAA14.2 at Amata City Rayong/2.
expansion area
1. Board approved on 14 May 2018 2. Start rent extension area on 1 Feb 2019, NLA increased from 14,250 SQ.M to 15,950 SQ.M), WALE 7 Years
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1.Assets were original FTREIT properties, investment cost is THB 223 million 2.Excluding acquisition expense. 3.MIC Industry is electronics parts producer (air conditioner, electronics panel) 4.Siam Nistrans is Ground/Air/Maritime logistics provider
A1.75 W1 RP1 AMN
Sales Considerations Investment cost
Gain/5
cost = 23%]
5.Gain from divestment in PL= Sales considerations – investment cost
Gain from divestment Reduce Expenses from holding
assets
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Portfolio Value (THB Billion)
4.1
At IPO
37.0
Current (Nov’19)
Assets Value Since listing in Jan 2015, FTREIT’s portfolio value has grown by 10x with geographical diversification
FTREIT Investment Properties Value Movement (THB Billion)(1)
(1) Reference from audited financial statement
+New Assets +New Assets IPO In Jan 2015
1st Additional Capital In Dec 2015
Conversion PFPO In Dec 2017
Invest in Sponsor Assets In Aug and Dec 2018
1st Third Party Assets In Aug and Dec 2018
Sponsor and third Assets In Sep – Oct 2019
1 BP1 Unit W4 BP3 Unit W5 FPIT Bangna AMC Unit M2.5 Star Micronics 2 3 4 5 6
FTREIT Historical Asset Acquisition since IPO
FPIT Bangna FPT Properties Chonburi
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✓ An extensive tenant base of 264 clients creates a network that reduces overall exposure to any one particular sector Logistics Electronics Retails E-Commerce Others Automotive
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High quality, diversified tenant base underpinned by primary industries including Automotive, logistics services, electronics, retails and e-commerce.
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Overall performance of FTREIT FY2019 is improve from last fiscal year that came from tenants of existing assets and new assets
1.Vacant unit in this area has already been occupied by new tenant
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FPIT Bangna FPT Properties Chonburi Laemchabang 3, Chonburi, Thailand
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LCB1 LCB2
LCB Area
Post-acquisition, FTREIT will be a key logistic space provider in Laemchabang area which close to LCB deep sea port
Strategic holding assets around LCB Deep Seaport
18 Units
LCB3
+24 units
LCB1
21 Units
Sriracha
8 Units
Borwin
9 Units(1)
ES1A
7 Units
= New Properties Existing Properties
W
LCB Port
63
Units
87
Units
+3 +24
Note: Map reference from Google Map (1) WHA Hemraj Industrial Estate (Bowin) consisted of factory 3 units and warehouse 9 units (2) Wangnoi area is main cold storage hub in Thailand since many food producers set up production facilities in around Ayutthaya, Food producer will send their food products to stock in cold storage in Wangnoi area before distribute to Bangkok and Airport. (3) Properties in Laemchabang Industrial Estate is new location to FTREIT’s portfolio and these location is the first location which properties closely located to Deep sea port
80% 16% 4%
Percentage of total trade by port [million TEU]
Laem Chabang Bangkok Others(1)
Automation system in Phase3
A
Modern loading & unloading
B
Autonomous container transportation
C Autonomous yard managing device
LCB Deep sea port Phase3
LCB Phase 3 can service larger ship dimension
Increase capacity from 10,000 TEU to 15,000 TEU
Laemchabang deep sea port phase 3 will enhance logistics/Industrial activity and services in around LCB area
Expansion Highlight:
➢ Increase container throughput from 7.7 million containers per year to 18.1 million containers per year. ➢ LCB port will be largest port in Indochina and largest domestic port after completion of Phase 3
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K9 (LCB3)
24 Units 80,216 Sq. m.
Investment Highlight
✓ One of the biggest warehouse in free zone area that not far from LCB port ✓ Connected to Highway no 7 and Motorway which easily to deliver goods and products to LCB port and Bangkok. ✓ High standard warehouse in LCB area with floor loading around 3.5 – 5.0 tons and height around 10.5 – 12 meters
Land Area 125 Rais or 50,000 Sq. w. Net Leasable Area 80,216 Sq. m.(1) Asset Type Freehold Occupancy Rate 100% Weighted Average Lease Expiry (WALE) 1.80 Years(1) Property Ages ~4.3 years
Note : WALE, property ages and occupancy rate is information as of 30 November 2019
Tenants
Pacific Sugar Co., ltd Suzuyo Distribution Center ALPS Logistics Co., Ltd Michelin Siam Co., Ltd