Investment Trust (WHART) Opportunity Day 10 June 2019 REIT Manager - - PowerPoint PPT Presentation

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Investment Trust (WHART) Opportunity Day 10 June 2019 REIT Manager - - PowerPoint PPT Presentation

WHA Premium Growth Real Estate Investment Trust (WHART) Opportunity Day 10 June 2019 REIT Manager Sponsor 1 Disclaimers This presentation has been prepared by WHA Real Estate Management Company Limited (WHAREM) exclusively for the


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SLIDE 1

WHA Premium Growth Real Estate Investment Trust (WHART)

Opportunity Day

10 June 2019

1 Sponsor REIT Manager

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SLIDE 2

As of Nov 2017

Disclaimers

This presentation has been prepared by WHA Real Estate Management Company Limited (‘WHAREM’) exclusively for the benefit and internal use of prospective clients in order to indicate, on a preliminary basis, the feasibility of possible transactions. Terms contained in this presentation are intended for discussion purposes only and are subject to a definitive agreement. All information contained in this presentation belongs to WHAREM and may not be copied, distributed or otherwise disseminated in whole or in part without the written consent of WHAREM. This presentation has been prepared on the basis of information that is believed to be correct at the time the presentation was prepared, but that may not have been independently verified. WHAREM makes no expression or implied warranty as to the accuracy or completeness of any such information. WHAREM is not acting as an advisor or agent to any person to whom this presentation is directed. Such persons must make their own independent assessment of the content of this presentation, should not treat such content as advice relating to legal, accounting, taxation or investment matters and should consult their own advisers. Neither WHAREM nor any of its directors, employees or representatives are to have any liability (including liability to any person by reason of negligence or negligent misstatement) from any statement, opinion, information or matter (express or implied) arising out of, contained in or derived from or any omission from the presentation, except liability under statute that cannot be excluded. Please study relevant information carefully before making any investment decision. Investors are encouraged to make an investment only when such decisions correspond with their own objectives and only after they have acknowledged all risks and have been informed that the returns may be more

  • r less than the initial sum.

2

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SLIDE 3

As of Nov 2017

Agenda

3

I. Portfolio Overview II. Q1 2019 Operation & Performance III. 2019 Outlook

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SLIDE 4

As of Nov 2017

4

Unitholders (2,248,454,220 units)

Others WHA Group (Approximately 15%)

Investment in the REIT Benefit Distribution & Redemption Trustee Fee Monitor the REIT Rents

REIT Manager Property Manager Trustee Lenders

REIT Manager Fee Property management fee Debt repayment and interest expense THB 9,519.6 mn THB 1,344.6 mn : 1st Capital Increase THB 1,675.0 mn : 3rd Capital Increase THB 6,500.0 mn : Bond Manager the REIT Manage operation of all assets Invest in freehold and leasehold assets

WHART’s Structure

Total leasable area of 1,128,113.16 sq.m. Total land area 1,210-0-67.55 Rai 24 Projects, with 52 Tenants

Bondholder's Representative

Protect benefits and monitors compliance

WHART

Bondholder's Representative Fee

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SLIDE 5

As of Nov 2017

WHART Key Performance

5

Q1 2019 Number of Properties 24 Properties Total Leasable Area 1,128,113.16 sq.m. Asset size 33,132.61 THB Million Freehold : Leasehold (30+30 Yrs) : Leasehold (<30 Yrs) 69 : 6 : 25 Built-to-suit : General Warehouse 62 : 38

Avg.Occupancy Rate before Undertake (Q1)

90.7%

Avg.Occupancy Rate after Undertake (Q1)

91.5% Total Interest-bearing Debt 9,519.6 THB Million Loan-to-Value 28.73% NAV per unit 9.9743

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SLIDE 6

As of Nov 2017

  • No. of Share

Percentage

  • No. of Share

Percentage

  • 1. Social Security Office

446,590,675 19.86% 450,822,375 20.05%

  • 2. WHA Corporation

337,284,043 15.00% 337,284,043 15.00%

  • 3. Government Pension Fund

128,503,852 5.72% 122,660,052 5.46%

  • 4. Muang Thai Life Assurance

96,394,222 4.29% 102,629,022 4.56%

  • 5. Krung Thai-Axa Life Insurance

96,235,506 4.28% 96,235,506 4.28%

  • 6. Government Savings Bank

70,473,029 3.13% 70,473,029 3.13%

  • 7. TMB Property Income Plus Fund

67,837,090 3.02% 66,962,090 2.98%

  • 8. Southeast Life Insurance

64,467,854 2.87% 64,467,854 2.87%

  • 9. Bangkok Life Assurance

62,472,155 2.78% 62,472,155 2.78%

  • 10. Thai Life Insurance

46,543,904 2.07% 46,543,904 2.07% Others 831,651,890 36.99% 827,904,190 36.82% Total 2,248,454,220 100.00% 2,248,454,220 100.00% Shareholders Q4 2018** Q1 2019*

6

Unit Holders

* As of 20 March 2019 ** As of 28 December 2018

2.67% of total unitholders are foreign investors which are categorized in the institution and retail sector

Institution, 48.0% Retail, 37.0% Sponsor, 15.0%

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SLIDE 7

As of Nov 2017

Overview of Leasable Area

7 + 104.7% + 46.0% + 94.6% 167,107 1,128,113 174,936 157,215 387,385 156,535 84,935

  • 100,000

200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 1,100,000 1,200,000

2014 2015 2016 2017 2018

sq.m.

IPO 1st Capital Increase 2nd Capital Increase WHAPF Conversion + 3rd Asset Acquisition 3rd Capital Increase Total Leasable

+ 16.1%

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SLIDE 8

As of Nov 2017

8

The Assets are located in Prime Strategic Locations

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SLIDE 9

As of Nov 2017

The Assets are located in Prime Strategic Locations

9

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SLIDE 10

As of Nov 2017

Agenda

10

I. Portfolio Overview II. Q1 2019 Operation & Performance III. 2019 Outlook

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SLIDE 11

As of Nov 2017

Thai 30.6% Europe 21.7% Japan 20.0% Asia* 14.4% USA 13.3%

No. Tenants Area (sqm.) (%) 1 DKSH (Thailand) Limited 187,582.63 18.25% 2 DSG International (Thailand) Pcl 80,547.40 7.83% 3 Power Buy Co., Ltd. 57,690.61 5.61% 4 Sino-Pacific Trading (Thailand) Co., Ltd. 45,569.25 4.43% 5 LF Logistics (Thailand) Limited 39,284.97 3.82% 6 Central Department Store Limited 38,826.00 3.78% 7 Kao Commercial (Thailand) Co.,Ltd. 36,522.44 3.55% 8 Thai Beverage Logistics Co., Ltd. 33,450.00 3.25% 9 Logitem (Thailand) Co., Ltd. 29,705.00 2.89% 10 Kuehne + Nagel (Thailand) Limited 28,645.00 2.79% 11 Other Tenants 450,232.08 43.79%

Well Known Tenants Profile

Top 10 Tenants by Area

Well-diversified nationality Well-diversified business

  • peration

* Excluded Thai and Japan

Lease Area by Type of Building Lease Area by Properties Type 11

Third- Party Logistics, 45.1% Fast- Moving Consumer Goods, 31.3% Manufacturer, 11.6% Home Supplies, 9.9% Digital business, 1.2% E-Commerce, 0.9% Built-to-Suit 61.2% Reay-Built 38.8% Warehouse, 89.17% Factory, 10.83%

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SLIDE 12

As of Nov 2017

Occupancy Rate

Occupancy Rate Before and After WHA Undertaking

12

97.4% 97.4% 97.4% 94.9% 92.4% 93.8% 93.1% 94.0% 91.8% 91.9% 90.2% 93.5% 94.7% 89.8% 89.1% 89.2% 90.7% 100.0% 100.0% 100.0% 99.4% 98.7% 100.0% 100.0% 100.0% 96.5% 96.7% 94.9% 97.0% 97.4% 92.2% 90.9% 90.5% 91.5% 70% 75% 80% 85% 90% 95% 100% Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Occupancy Rate Before WHA Undertaking Occupancy Rate After WHA Undertaking

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SLIDE 13

As of Nov 2017

Lease Expiry (Cont’d)

13

Remaining lease period of WHART’s assets

*The overall vacancy rate ended first quarter 2019 at 9%. 22% 25% 20% 24% 20% 23% 20% 28% 0% 5% 10% 15% 20% 25% 30% ≤ 1 Year > 1 -3 Years > 3 -5 Years > 5 Years Lease Expiry Lease Expiry (Include Option to Renew)

WALE = 4.18 WALE (Include Option to Renew) = 4.70

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SLIDE 14

As of Nov 2017

52.40 17.41 117.19 289.90 349.47 96.78 51.16 29.46 280.73

100 200 300 400 500 600 700 3M/2015 3M/2016 3M/2017 3M/2018 3M/2019

3-Month Net Profit Profit before Net Gain (Loss) from Valuation Net Profit 52.40 114.19 168.36 319.36* 630.20*

Financial Overview

14 Million Baht

80.71 169.02 246.37 505.35 550.79

  • 100

200 300 400 500 600 3M/2015 3M/2016 3M/2017 3M/2018 3M/2019

3-Month Revenue

Million Baht + 105.1% + 45.8% + 109.4% + 117.9% + 47.4% + 89.7%

* Net profit from valuation increased

+ 9.0% + 97.3%

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SLIDE 15

As of Nov 2017

  • 5,000

10,000 15,000 20,000 25,000 30,000 35,000

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019

Total Assets

Financial Overview

15 Million Baht

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SLIDE 16

As of Nov 2017 0.1812 0.06700.0565 0.0292 0.17330.16960.1671 0.1205 0.17050.1705 0.1482 0.1245 0.17450.17750.16250.1460 0.1860 0.1807 0.0052 0.1610 0.02170.02490.0124

0.0740 0.02400.0240 0.0115 0.07 0.02 0.017 0.01250.0455 0.00 0.05 0.10 0.15 0.20 0.25 0.30 Q1 2015 Q2 2015 Q3 2015 * Q4 2015 ** Q1 2016 Q2 2016 Q3 2016 Q4 2016 *** Q1 2017 Q2 2017 Q3 2017 Q4 2017 **** Q1 2018 Q2 2018 Q3 2018 Q4 2018 ***** Q1 2019 Dividend Decreasing paid-up capital

Distribution Payment

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* Performance from July to October 2015 ** Performance from November to December 2015, in consequence of 1st capital increase. *** Performance from 1 October to 15 November 2016, in consequence of 2nd capital increase. **** Performance from 1 October to 31 October 2017, in consequence of WHAPF conversion and 3rd asset acquisition. ***** Performance from 1 October to 15 November 2018, in consequence of 3rd capital increase. 0.2477 0.0617 0.1902 0.1950 0.1860 0.1812 0.1945 0.1795 0.1945 0.1945 0.1945 0.1597 0.1945 0.1945 0.1945

(As of Q1 2019)

0.1750

Distribution payment

Payment Date

1/2015 29-May-15 2/2015 25-Aug-15 3/2015* 18-Dec-15 4/2015** 15-Mar-16 1/2016 27-May-16 2/2016 25-Aug-16 3/2016 25-Nov-16 4/2016*** 20-Dec-16 4/2016 22-Mar-17 1/2017 23-May-17 2/2017 23-Aug-17 3/2017 22-Nov-17 4/2017**** 12-Dec-17 4/2017 23-Mar-18 1/2018 25-May-18 2/2018 23-Aug-18 3/2018 23-Nov-18 4/2018***** 18-Dec-18 4/2018 25-Mar-19 1/2019 22-May-19

0.1915

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SLIDE 17

As of Nov 2017 2.7 1,675.0 11.1 14.6 23.5 37.8 1,254.8

  • 3,500.0

950.0

  • 850.0

1,200.0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

2019 2020 2021 2022 2023 2024 2025

Maturity Ladder

Loan Bond

* 6,500 Million Bond & 3,019.6 Million Bank Loan

Financial Status & Repayment Schedule

Loan-to-Value 28.73% Total Interest-bearing debt THB 9,519.6 million * Average Remaining Maturity 3.55 years Loan Repayment of WHART

Million Baht 3,511.1 2,454.8

A

Stable Outlook by TRIS Rating Loan 31.7% Bond 68.3%

9,519.6 THB Mn

964.6 887.8 17

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SLIDE 18

As of Nov 2017 11.93 10.48 8.04 6.01 3.77 3.55 4.44% 4.19% 3.75% 3.46% 2.90% 2.87% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 2 4 6 8 10 12 14 YE 2014 YE 2015 YE 2016 YE 2017 YE 2018 Q1 2019 Average Remaining Maturity Effective Annual Interest Rate

Years

Well Diversified Debt Profile

Million Baht

Issue bonds to refinance Well Managed LTV% Issue Bond to Reduce Cost of Debt

1,370.0 2,720.0 3,970.0 7,794.4 9,466.7 9,519.6 29.7% 30.0% 28.5% 27.7% 29.0% 28.7% 0% 5% 10% 15% 20% 25% 30% 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 YE 2014 YE 2015 YE 2016 YE 2017 YE 2018 Q1 2019 Interest-bearing Debt LTV

18

1st 2nd

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SLIDE 19

As of Nov 2017

Agenda

19

I. Portfolio Overview II. Q1 2019 Operation & Performance III. 2019 Outlook

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SLIDE 20

As of Nov 2017

WHART Assets Acquisition in 2019

20

Key activities through the 4th Capital increase of Asset Acquisition I. 17 June 2019: EGM meeting to approve the resolution to acquire assets from WHA Group for the value not exceeding THB 4,880 million. Assets will have leasable area

  • f apporx. 160,000 sqm on leasable area.

II. June – October 2019: Filing process III. October – December 2019: Marketing & Placement and Subscription process IV. December 2019: Complete the acquisition within Q4 2019

1 2 3 4

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SLIDE 21

As of Nov 2017

21

WHART Assets Acquisition in 2019

New assets to be acquired

Pre-Transaction Post-Transaction

(65%) (11%)

Draxlmaier

1 3 2

+(Ph.2)

Roechling

4

+(Ph.2)

5 2 5 3 4

(23%)

1

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SLIDE 22

As of Nov 2017

WHART Assets Acquisition in 2019

พื้นที่บางนา-ตราด

  • โครงการ WHA Mega Logistics Center (ชลหารพิจิตร กม. 3 เฟส 1) (โครงการ Unilever)
  • โครงการ WHA Mega Logistics Center (ชลหารพิจิตร กม. 3 เฟส 2) (“โครงการ WHA DAIWA”)
  • โครงการ WHA KPN Mega Logistics Center (ถนนบางนา-ตราด กม.23 เฟส 2) (โครงการ WHA KPN)

(WHA KPN) (Unilever) (WHA Daiwa)

2 1 5 1 2 5 22

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SLIDE 23

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SLIDE 24

24

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SLIDE 25

25

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SLIDE 26

As of Nov 2017

26

Q&A

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SLIDE 27

As of Nov 2017

27

Appendix

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SLIDE 28

As of Nov 2017

80.71 82.84 83.26 85.66 169.02 171.91 171.69 197.13 246.37 249.55 246.70 337.59 505.35 487.68 479.96 506.94 550.79 100 200 300 400 500 600 Q1 Q2 Q3 Q4

Total Revenue by Quarter

2015 2016 2017 2018 2019

Financial Overview

28

Million Baht

+ 105.1% + 45.8% + 109.4% + 45.2% + 107.5% + 43.7% + 95.4% + 106.2% + 130.1% + 71.3% + 94.6% + 9.0% + 50.2%

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SLIDE 29

As of Nov 2017 52.40 (44.09)

54.95 55.60

  • 98.37
  • 17.41

115.98 117.41 129.00 96.78 117.19 167.22 166.90 227.20 51.16 3.00 289.90 348.57 333.74 337.47 29.46 125.53 349.47 280.73 (50) 50 150 250 350 450 550 650 750 Q1 Q2 Q3 Q4

Net Profit 2015 2016 2017 2018 2019

52.40 114.19 630.20* 54.13 115.98 170.22 54.95 117.41 116.90 55.60 129.00 168.36

Financial Overview

29 Million Baht Profit before Gain (Loss) from Valuation Net Profit of

* Net profit from valuation increased 227.20 319.36* 474.10* 333.74 337.47

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SLIDE 30

As of Nov 2017

80.71 82.84 83.26 85.66 169.02 171.91 171.69 197.13 246.37 249.55 246.70 337.59 505.35 487.68 479.96 506.94 550.79 12.54 13.27 12.98 14.72 25.00 26.95 25.82 35.99 38.41 39.83 40.19 57.81 76.06 76.77 84.77 98.21 84.90 52.40 54.13 54.90 55.21 113.79 115.79 116.88 128.73 167.35 168.79 165.45 226.09 287.40 348.57 332.09 341.62 343.69 100 200 300 400 500 600 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019

Financial Summary

Total Revenue Total Expense Profit before Net Gain (Loss) from Investment

Financial Overview

30 Million Baht