Investor Presentation September 2016 1 Agenda Overview of A-REIT - - PowerPoint PPT Presentation

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Investor Presentation

September 2016

One@Changi City 9 Andretti Court, Victoria

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Overview of A-REIT Key Highlights for 1Q FY16/17 Financial Performance Investment Management Capital Management Asset Management

Portfolio Update Portfolio Resilience

Market Outlook A-REIT’s Strengths

Agenda

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Logistics & Distribution Centres (S’pore & Australia)

Overview of Ascendas Real Estate Investment Trust

• First and largest business space and industrial REIT listed on the Singapore Exchange and a

constituent of the FTSE Straits Times Index effective 4 June 2014

• Total assets of about S$9.8bn (US$7.3bn)
• Issuer and senior unsecured rating of A3 by Moody’s

Business & Science Park Light Industrial / Flatted Factories High Specs Industrial / Data Centres Integrated Development, Amenities & Retail (“IDAR”)

Diversified portfolio – 102 properties in Singapore, 29 properties in Australia and 1 property in China; Tenant base

• f around 1,450 local and

international companies#

# As at 9 September 2016

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Sub-sector (as at 9 Sep 2016) Business Parks Science Parks

Portfolio GFA (sqm) 410,647 332,716 % of A-REIT

• by GFA
• by asset value

11% 18% 9% 15% Characteristics Zone is defined by Govt Master Plan. Suburban office and corporate HQ buildings. Manufacturing activities are not allowed. Zone is defined by Govt Master Plan. R&D space equipped with building specifications to facilitate R&D works. Manufacturing activities are not allowed. Typical tenants Regional corporate HQs of industrial companies and MNCs; backroom support office of financial institutions; IT firms, etc. Companies in research & development in various fields including life sciences, food and chemicals, data analysis and IT research and development, etc.

Singapore: Diversified Portfolio Positioned for Future Growth of the Singapore Economy

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Sub-sector (as at 9 Sep 2016) Integrated Development, Amenities & Retail (IDAR) Hi-Specs Industrial Data Centres

Portfolio GFA (sqm) 157,299 528,408 109,756 % of A-REIT

• by GFA
• by asset value

4% 7% 14% 15% 3% 6% Characteristics Two or more types of space within an integrated development such as business space, retail and warehousing facility. Typically larger scale developments. Possess infrastructure and amenities to meet business needs. Vertical corporate campus with higher office content combined with high specifications mixed-use industrial space. Building and M&E specifications (eg raised floor, high power capacity) to enable space to be used as data centres. Typical tenants MNCs and corporates that desire quality space with comprehensive range of amenities to house their HQ and conduct their businesses under one roof. Companies in IT, fast moving consumer goods, engineering, warehousing, retail. Multi-national industrial companies and large local companies that wish to co-locate their HQ functions with manufacturing services, engineering, R&D activities. Multi-national companies providing data centre services such as cloud computing and data storage.

Singapore: Diversified Portfolio Positioned for Future Growth of the Singapore Economy

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Sub-sector (as at 9 Sep 2016) Light Industrial Flatted Factories Logistics & Distribution Centres

Portfolio GFA (sqm) 393,740 197,143 835,825* % of A-REIT

• by GFA
• by asset value

10% 7% 5% 3% 23% 14% Characteristics Low office content combined with manufacturing space. Stacked-up manufacturing space used for general manufacturing. Ground floor space tends to command higher rental rate due to higher floor loading and better accessibility. Warehouses with high floor loading and floor height. Well located near major transport nodes e.g. airport, seaport &

• expressways. Majority are single
• r multi-storey facilities with

vehicular ramp access Typical tenants Large local companies which house their light manufacturing activities and HQ operations within a single facility. Higher manufacturing content compared to Hi-Specs Industrial buildings. Local small & medium-size enterprises engaged in various manufacturing activities. Some MNC manufacturers also house their manufacturing operations in such buildings. 3rd party logistics providers, manufacturers, distributors and trading companies *Excludes 297 Ahmad Ibrahim Road which has been decommissioned for asset enhancement works

Singapore: Diversified Portfolio Positioned for Future Growth of the Singapore Economy

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A-REIT’s Singapore Property Map

• Strategically located along major expressways
• Several properties e.g. Business Park, Science Park and some High-Specs Industrial properties are in close

proximity to MRT stations

• Light Industrial and Hi-Specs Industrial properties are primarily centrally located near major housing areas
• Logistics and Distribution Centres are located near airport and seaport

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1 10 11 7

Brisbane (155,966 sqm) Sydney (259,336 sqm) Melbourne (273,963 sqm) Perth (20,895 sqm) 19. 14-28 Ordish Road 20. 35-61 South Park Drive 21. 2-34 Aylesbury Drive 22. 81-89 Drake Boulevard 23. 676-698 Kororoit Creek Road 24. 700-718 Kororoit Creek Road 25. 9 Andretti Court 26. 31 Permas Way 27. 162 Australis Drive 28. Stage 4, Power Park Estate (under development) 12. 62 Sandstone Place 13. 92 Sandstone Place 14. 62 Stradbroke Street 15. 82 Noosa Street 16. 77 Logistics Place 17. 99 Radius Drive 18. 2-56 Australand Drive 29. 35 Baile Road 1. 1A & 1B Raffles Glade 2. 7 Grevillea Street 3. 5 Eucalyptus Pace 4. Lot 4 Honeycomb Drive 5. 1-15 Kellet Close 6. 94 Lenore Drive 7. 484-490 Great Western Highway 8. 494-500 Great Western Highway 9. 1 Distribution Place, Seven Hills 10. 6-20 Clunies Ross Street, Pemulwuy 11. 197-201 Coward Street, Mascot Portfolio GFA (sqm) 710,160 % of A-REIT

• by GFA
• by asset value

19% 13%

Australia Portfolio – 29 Properties

(28 Logistics, 1 Business Park)

NSW 46% QLD 22% VIC 28% WA 4%

By rental income

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New Acquisition in 2Q FY16/17:

197-201 Coward Street, Mascot, Sydney

Purchase Consideration A$143.4m Acquisition Fee, Stamp Duty and Other transaction costs A$10.0m Total Acquisition Cost A$153.4m Vendor Frasers Property Australia Valuation A$144.0m by Knight Frank Land Area 6,714 sm Land Tenure Freehold Net Lettable Area 22,628 sm Occupancy 100% Weighted Average Lease to Expiry 5.2 years Key Tenants Leighton Contractors, TNT, Avis Initial NPI Yield 6.9% (or 6.5% post-cost yield)

Property: Comprises two 8-storey A-grade office park towers and a multi-storey carpark. Completed in 2003. Location: Established South Sydney commercial

• precinct. Well serviced by public transport.

Tenants: Attracts logistics and transportation sectors and those who value close proximity to CBD at discounted rents.

6-20 Clunies Ross Street – located within 6 km – 16km from A-REIT’s existing properties in Sydney

Acquired on 9 September 2016

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New Acquisition in 2Q FY16/17 :

Stage 4, Power Park Estate, Dandenong South, Melbourne

Purchase Consideration A$24.8m Acquisition Fee, Stamp Duty and Other transaction costs Approx A$0.8m Total Acquisition Cost A$25.6m Vendor Goodman Dandenong Trust Valuation A$24.8m by Urbis Land Area 33,107 sm Land Tenure Freehold Gross Lettable Area 18,007 sm (comprising of 2 warehouses of 12,200 sm and 5,807 sm) Occupancy 68% pre-commitment. The vendor will provide rental support for the remaining space. Weighted Average Lease Expiry 8 years upon completion, with 3 further terms of 3 years each Key Tenant Bunzl Outsourcing Service Initial NPI Yield 6.7% (6.5% post-cost yield)

Property: A prime single-storey modern logistics facility under development. Construction completion expected in 1Q 2017. Location: Power Park Industrial Estate in the industrial suburb of Dandenong South. Good connectivity to arterial roads and the proposed Port Shuttle intermodal terminal. Fast access to and from the Port of Melbourne in 45 min. Tenants: Logistics users

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China: Suburban Business Park Properties to Cater to Growing Demand

Sub-sector Business Park (China) Number of Properties 1 Portfolio GFA (sqm) 79,880 % of A-REIT

• by GFA
• by asset value

2% 2% Location Shanghai Characteristics Biz Parks: Suburban office, corporate HQ buildings. Well located and within easy access to public transportation networks. Typical tenants Biz Parks: Higher value-added industries such as IT and software companies as well as corporate HQs of multi-national companies and large local corporations.

A-REIT City @Jinqiao Entrance of A-REIT City @Jinqiao

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A-REIT’s Steady Growth since Listing

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Overview of A-REIT Key Highlights for 1Q FY16/17 Financial Performance Investment Management Capital Management Asset Management

Portfolio Update Portfolio Resilience

Market Outlook A-REIT’s Strengths

Agenda

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Key Highlights for 1Q FY16/17

• Total amount available for distribution rose by 15.5% y-o-y to

S$106.9m

• Estimated DPU grew 4.0% y-o-y to 3.996 cents from 3.841

cents in 1Q FY15/16.

• Key performance drivers were:
• Contributions from new acquisitions: Australian Portfolio and

ONE@Changi City

• Lower utilities expenses due to lower rates secured for certain

properties with effect from 1Q FY16/17

• Increase in Singapore portfolio occupancy and positive rental

reversion of 4.1% achieved over preceding contracted rental rates

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Key Highlights for 1Q FY16/17

• Total amount available for distribution rose by 19.9% q-o-q to

$106.9 million

• Estimated DPU grew 17.2% q-o-q to 3.996 cents from 3.410

cents

• Boosted by newly acquired ONE@Changi City
• Investment highlights
• S$24.6 million of asset enhancement works
• S$59.4 million of divestments
• Proactive Capital Management
• Moody’s re-affirmed A-REIT’s A3 credit rating
• Healthy aggregate leverage of 37.0% with debt maturity of 3.3 years
• 75.9% of borrowings is hedged for an average term of 3.8 years

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Overview of A-REIT Key Highlights for 1Q FY16/17 Financial Performance Investment Management Capital Management Asset Management

Portfolio Update Portfolio Resilience

Market Outlook A-REIT’s Strengths

Agenda

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(S$’000) 1Q FY16/17(1) 1Q FY15/16(1) % fav/ (unfav)

Gross revenue(2) 207,588 180,507 15.0 Net property income(2) 149,480 124,265 20.3 Total amount available for distribution 106,855 92,486 15.5 DPU(3)(4) 3.996 3.841 4.0

(1) The Group had 131 properties and 105 properties as at 30 June 2016 and 30 June 2015, respectively. (2) Higher revenue and NPI mainly due to (i) contributions from the acquisition of the Australian Portfolio and ONE@Changi City and (ii) lower utilities expenses as the Group had secured lower rates for certain properties with effect from 1Q FY16/17. (3) Includes taxable (1Q FY16/17: 3.817 cents, 1Q FY15/16: 3.777 cents), tax exempt (1Q FY16/17: 0.161 cents, 1Q FY15/16: 0.046 cents) and capital (1Q FY16/17: 0.018 cents, 1Q FY15/16: 0.018 cents) distributions. (4) The estimated DPU for 1Q FY16/17 have been computed on the basis that no ECS will be exchanged into Units before the next books closure date. Accordingly, the actual quantum of DPU may differ if A-REIT receives Exchange Notices before the next books closure date.

1Q FY16/17 vs 1Q FY15/16

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(S$’000) 1Q FY16/17(1) 4Q FY15/16(1) % fav/ (unfav)

Gross revenue(2) 207,588 204,044 1.7 Net property income(2) 149,480 143,465 4.2 Total amount available for distribution 106,855 89,102 19.9 DPU before performance fee (cents)(4) 3.996 3.759 6.3 DPU after performance fee (cents)(3)(4) 3.996 3.410 17.2

(1) The Group had 131 properties and 133 properties as at 30 June 2016 and 31 March 2016, respectively. (2) Higher revenue and NPI mainly due to (i) the full quarter contribution from the acquisition of ONE@Changi City and (ii) lower utilities expenses as the Group had secured lower rates for certain properties with effect from 1Q FY16/17. (3) Includes taxable (1Q FY16/17: 3.817 cents, 4Q FY15/16: 3.247 cents), tax exempt (1Q FY16/17: 0.161 cents, 4Q FY15/16: 0.146 cents) and capital (1Q FY16/17: 0.018 cents, 4Q FY15/16: 0.017 cents) distributions. (4) The estimated DPU for 1Q FY16/17 have been computed on the basis that no ECS will be exchanged into Units before the next books closure date. Accordingly, the actual quantum of DPU may differ if A-REIT receives Exchange Notices before the next books closure date.

1Q FY16/17 vs 4Q FY15/16

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Overview of A-REIT Key Highlights for 1Q FY16/17 Financial Performance Investment Management Capital Management Asset Management

Portfolio Update Portfolio Resilience

Market Outlook A-REIT’s Strengths

Agenda

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Country Purchase Consideration / Value (S$m) Completion date Asset Enhancements 24.6 2 Senoko South Road Singapore 12.3 Apr-16 The Kendall Singapore 1.6 May-16 Acer Building Singapore 10.7 May-16 Divestments 59.4 Four Acres Singapore Singapore 34.0 29-Apr-16 A-REIT Jiashan Logistics Centre Shanghai, China 25.4

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17-Jun-16 Divestments in 2Q FY16/17 Ascendas Z-link Beijing, China 154.7

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11-Jul-16

1 Based on end Jun 16 exchange rate of RMB1.00 = SGD 0.2035

Investment Highlights in 1Q FY16/17

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New cargo lift lobby Completed façade painting Description To convert the property into a multi-tenanted food factory. Reconfiguration of floor layouts, construction of new loading bays, addition of cargo lifts, toilets and M&E installations. AEI Cost

• Approx. S$12.3 million

Valuation as at 31 Mar 16 S$37.8 million Completion (TOP Date) 8 April 2016 Land Tenure 40 years remaining GFA 23,457 sqm NLA 17,840 sqm WALE 5.8 years Occupancy Rate 31.6% as at 30 Jun 2016 42.9% (Another ~11.3% pre-committed )

Asset Enhancement in 1Q FY16/17:

2 Senoko South Road

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Completed façade cladding Description Cladding and repainting of the property’s façade. Upgrading of toilets. AEI Cost

• Approx. S$1.6 million

Valuation as at 31 Mar 16 S$127.7 million Completion (TOP Date) 30 May 2016 Land Tenure 63 years remaining GFA 20,190 sqm NLA 16,870 sqm WALE 2.8 years Occupancy Rate 93.9% (Another ~0.8% under offer ) Painting & façade cladding

Asset Enhancement in 1Q FY16/17:

The Kendall

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Completed drop off point Description Rejuvenation of the property. Works include constructing a new central drop off and entrance foyer, upgrading lift lobbies, corridors, restrooms, lift interiors etc. AEI Cost

• Approx. S$10.7 million

Valuation as at 31 Mar 16 S$83.0 million Completion (TOP Date) 23 May 2016 Land Tenure 40 years remaining GFA 29,185 sqm NLA 22,373 sqm WALE 1.2 years Occupancy Rate 72.1% (Another ~2.7% pre-committed ) Upgraded lift lobby

Asset Enhancement in 1Q FY16/17:

Acer Building

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Description Built-to-suit global development & training centre for Unilever Single-storey logsitics facility in Shanghai, China Remaining Land Tenure 25 years 49 years NLA 9,170 sqm 35,206 sqm Acquisition Year / Price 2013/ S$30.8 m 2016/ S$20.6 m Book Value (as at 31 Mar 2016) Finance lease S$33.4m S$24.4m (RMB 120.0m) Sales Price* S$34.0m S$25.4m (RMB 125.0m) NPI Impact

• S$4.2m

Nil Buyer Unilever Asia Pacific Pte Ltd Goodman Developments Asia GCLP Developments No. 3 (BVI) Ltd Capital gains over original costs S$0.6m ~ S$3.2m (~ RMB 15.7m) Completion Date 29 April 2016 17 June 2016 A-REIT Jiashan Logistics Centre Four Acres Singapore

Note: Based on end Jun 16 exchange rate of RMB$1.00 = SS$0.2035

* In accordance to A-REIT’s Trust Deed, the Manager is entitled to a divestment fee of 0.5% of the sale price of the Property.

Divestments in 1Q FY16/17

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Overview of A-REIT Key Highlights for 1Q FY16/17 Financial Performance Investment Management Capital Management Asset Management

Portfolio Update Portfolio Resilience

Market Outlook A-REIT’s Strengths

Agenda

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• Aggregate leverage would further improve to 36.2% with

divestment of Ascendas Z-link property

(1) Excludes fair value changes and amortised costs. Borrowings denominated in foreign currencies are translated at the prevailing exchange rates except for JPY/HKD-denominated debt issues, which are translated at the cross-currency swap rates that A-REIT has committed to (2) Excludes the amount to be distributed for the relevant period after the reporting date

As at 30 Jun 2016 As at 31 Mar 16 Total debt (S$m) (1) 3,625 3,678 Total assets (S$m) 9,797 9,870 Aggregate leverage 37.0% 37.3% Unitholders' funds (S$m) 5,449 5,481 Net asset value (NAV) per Unit 204 cents 206 cents Adjusted NAV per Unit (2) 200 cents 202 cents Units in issue (m) 2,674 2,666

Healthy Balance Sheet

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306

• 150
• 200
• 158*

75 283 400 433

• 248

95 100 192 350

• 154
• 195
• 286
• 100

200 300 400 500 600 700 800 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 and beyond Revolving Credit Facilities Committed Revolving Credit Facilities Term Loan Facilities Medium Term Notes Exchangeable Collateralised Securities

Diversified Financial Resources SGD (million)

• Maintain a balanced debt maturity profile with no more

than 20% debt maturing in a single year

• Average debt maturity: 3.3 years
• S$14m ECS was converted into Units in May 2016

* S$158m term loan facilities have been repaid after 30 June 2016 20% of total debt

8% 10% 37% 37% 8%

Well-spread Debt Maturity Profile

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• Robust indicators enable A-REIT to borrow at competitive costs

As at 30 Jun 16 As at 31 Mar 16 Aggregate Leverage 37.0% (2) 37.3% Unencumbered properties as % of total investment properties(1) 78.2% 77.2% Interest cover ratio 5.2 x 5.5 x Total debt / EBITDA 6.7 x 7.9 x Weighted average tenure of debt (years) 3.3 3.4 YTD weighted average all-in debt cost 2.99% 2.79%

A-REIT’s issuer rating by Moody’s A3 stable

(1) Total investment properties exclude properties reported as finance lease receivable (2) Aggregate leverage would further improve to 36.2% after divestment of Ascendas Z-link property

Key Funding Indicators

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Increase in interest rates Decrease in distribution (S$m) Change as % of FY15/16 distribution Pro forma DPU impact (cents)(1) 50 bps 4.4 1.2% 0.16 100 bps 8.7 2.3% 0.33 150 bps 13.1 3.5% 0.49 200 bps 17.4 4.6% 0.65

• 75.9% of borrowings is hedged for an average term of 3.8 years
• 50 bps increase in interest rate is expected to have a pro forma impact of

S$4.4 million decline in distribution or 0.16 cent in DPU

(1) Based on number of units in issue of 2,674 million

Prudent Interest Rate Risk Management

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Overview of A-REIT Key Highlights for 1Q FY16/17 Financial Performance Investment Management Capital Management Asset Management

Portfolio Update Portfolio Resilience

Market Outlook A-REIT’s Strengths

Agenda

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88.3% 90.9% 70.0% 88.2% 87.9% 94.7% 51.2% 87.6% 89.8% 68.6% 88.8%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% Singapore Australia China Total

Jun-16 Mar-16 Jun-15

Overview of Portfolio Occupancy

Gross Floor Area (sqm)

2,965,535* 669,525 111,307 3,746,367*

Note:

• The Australia properties were acquired in 3Q FY15/16 and 4Q FY15/16.

* Gross Floor Area excludes 297 Jalan Ahmad Ibrahim (formerly known as IDS Logistics Corporate HQ) which has been decommissioned for AEI.

N. A.

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• Singapore occupancy improved to 88.3% mainly due to new take up at 40

Penjuru Lane and 5 Toh Guan Road East

As at 30 Jun 2016 31 Mar 2016 30 Jun 2015 Total Singapore Portfolio GFA (sqm) 2,965,535(1)(2) 2,967,777(3) 2,876,878 Singapore Portfolio occupancy (same store) (4) 89.1% 89.8% 90.7% Singapore MTB occupancy (same store) (4) 84.6% 85.4% 85.7% Occupancy of Singapore investments completed in the last 12 months 84.9% 76.4%

• Overall Singapore portfolio occupancy

88.3% 87.9% 89.8% Singapore MTB occupancy 84.1% 83.4% 85.5%

(1) Excludes 297 Jalan Ahmad Ibrahim (formerly known as IDS Logistics Corporate HQ) which has been decommissioned for asset enhancement works. (2) Excludes Four Acres Singapore which was divested on 29 April 2016. (3) Excludes 2 Senoko South which was previously decommissioned for asset enhancement works. Works were completed on 8 April 2016. (4) Same store occupancy rates for previous quarters are computed with the same list of properties as at 31 Jun 2016, excluding new investments completed in the last 12 months, divestments and changes in classification of certain buildings from single-tenant to multi-tenant buildings or vice- versa.

Singapore Occupancy

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0.3% 0.6% 0.8% 1.0% 1.4% 2.6% 4.5% 5.4% 8.4% 10.5% 13.3% 51.2%

General Manufacturing Lifestyle and Services Structural Engineering Telecommunication & Datacentre Biomedical Electronics Precision Engineering IT Financial Service Food Products & Beverages Others Transport and Storage

By Gross Income

0.3% 0.6% 1.4% 2.0% 2.3% 4.4% 8.4% 8.4% 10.9% 14.3% 17.0% 30.0%

By NLA

• Continues to attract demand from a wide spectrum of industries

Singapore: Sources of New Demand

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Multi-tenant properties (1) 1Q FY16/17 increase in renewal rates (1)# 1Q FY15/16 increase in renewal rates (2)# 4Q FY15/16 increase in renewal rates (3)# Business & Science Parks 4.7% 8.3% 6.6% Hi-Specs Industrial 3.5% 4.6% 5.2% Light Industrial 0.5% 6.6% 2.1% Logistics & Distribution Centres – Singapore 9.4% 6.8% 7.4% Singapore: Weighted Average 4.1% 6.6% 5.1% Logistics & Distribution Centres – Australia 0.5%

• Achieved +4.1% rental reversion for leases renewed in 1Q FY16/17
• Positive rental reversion was registered across all segments

(1) Increase in renewal rental rates for leases renewed in 1Q FY16/17 versus previous contracted rates. (2) Increase in renewal rental rates for leases renewed in 1Q 15/16 versus previous contracted rates. (3) Increase in renewal rental rates for leases renewed in 4Q 15/16 versus previous contracted rates. # Based on average gross rents

Achieved Positive Rental Reversions

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WALE (years) 30 June 2016 Singapore 3.5 Australia 5.2 China 2.3 Portfolio 3.6

• Portfolio Weighted Average Lease Expiry (WALE) at 3.6 years

Weighted Average Lease Expiry (By Gross Revenue)

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• Portfolio weighted average lease to expiry (WALE) of 3.6 years
• Lease expiry is well-spread, extending beyond 2031
• About 14.9% of gross revenue is due for renewal in balance of FY16/17

as at 30 June 2016

• Weighted average lease term of new leases signed in 1Q FY16/17 was

4.1 years accounting for about 2.5% of total gross revenue for 1Q FY16/17

Breakdown of expiring leases for FY16/17 and FY17/18

2.3% 2.0% 1.7% 2.1% 5.5% 1.1% 0.8% 1.6% 2.4% 12.6% 18.5% 14.9% 11.5% 5.1% 3.2% 3.4% 1.6% 2.5%

14.9% 20.5% 16.6% 13.6% 10.6% 4.3% 4.2% 3.2% 4.9% 0.6% 2.5% 0.1% 1.1% 1.8% 1.1%

0% 5% 10% 15% 20% 25%

% of A-REIT Gross Revenue

Multi-tenant Buildings Single-tenant Buildings

22% 15% 13% 13% 7% 19% 4% 6%

FY17/18

14% 29% 14% 15% 6.7% 19% 1% 0.7%

FY16/17

Science Parks Business Parks Hi-Specs Industrial Light Industrial IDAR Logistics Logistics (Australia) Business Park (China)

Portfolio Lease Expiry Profile (as at June 2016)

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• Singapore portfolio weighted average lease to expiry (WALE) of

3.5 years

• Lease expiry is well-spread, extending beyond 2030
• 16.6% of Singapore’s gross revenue is due for renewal in

balance of FY16/17 as at 30 June 2016

Breakdown of expiring leases for FY16/17 and FY17/18

2.4% 1.5% 0.8% 1.6% 5.2% 0.8% 0.9% 14.2% 19.4% 16.1% 12.2% 5.4% 2.7% 3.8% 2.7%

16.6% 20.9% 16.9% 13.8% 10.6% 3.5% 4.8% 1.5% 4.8% 0.2% 1.9% 0.1% 1.3% 2.0% 1.2%

0% 5% 10% 15% 20% 25%

% of A-REIT Gross Revenue

Multi-tenant Buildings - SG Single-tenant Buildings - SG

15% 30% 14% 15% 6.8% 19%

FY16/17

Science Parks Business Parks Hi-Specs Industrial Light Industrial IDAR Logistics

25% 17% 15% 14% 7.9% 21%

FY17/18

Singapore: Lease Expiry Profile (as at June 2016)

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• Australia portfolio weighted average lease to expiry (WALE) of

5.2 years

• Lease expiry is well-spread, extending beyond 2027
• 2.2% of Australia’s gross revenue is due for renewal in balance
• f FY16/17 as at 30 June 2016

Breakdown of expiring leases for FY16/17 and FY17/18

7.3% 10.6% 7.5% 9.4% 4.5% 17.7% 6.8% 4.1% 9.7% 2.7% 1.8% 3.6% 2.5% 8.2% 1.2%

2.2% 10.0% 12.4% 11.2% 11.9% 12.8% 17.7% 8.0% 4.1% 9.7%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

% of A-REIT Gross Revenue

Multi-tenant building - AUS Single-tenant building - AUS

100%

FY16/17

Sydney Melbourne Brisbane Perth

26% 1% 73%

FY17/18

Australia: Lease Expiry Profile (as at June 2016)

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• Current market rental rate is slightly above the weighted average passing rental for

most of the multi-tenant space due for renewal in FY16/17

• Expect modest rental reversion in the low-single digit or flat for FY16/17

Left Axis: Right Axis:

* * *

* Rates for ground floor space

*

Singapore: In-place rent for space due for renewal in FY16/17 and FY17/18

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Estimated Value (S$m) Estimated Completion AzkoNobel House 6.5 4Q 2016 The Aries 4.7 4Q 2016 279 Jalan Ahmad Ibrahim (New) (formerly known as IDS Logistics Corporate HQ) 61.4 1Q 2018 Total Asset Enhancements (AEI) 72.6

Ongoing Projects: Improve portfolio quality

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On-going works at site Illustration for completed building Description To maximize plot ratio of the existing site and develop a ramp-up 3-storey warehouse block equipped with 10m clear height, loading bays with docklevellers at doorsteps etc. AEI Cost $61.4 m Estimated Completion 1Q 2018 Land Tenure 40 years remaining GFA 44,103 sqm

Asset Enhancement (New): 279 Ahmad Ibrahim

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Overview of A-REIT Key Highlights for 1Q FY16/17 Financial Performance Investment Management Capital Management Asset Management

Portfolio Update Portfolio Resilience

Market Outlook A-REIT’s Strengths

Agenda

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Well Diversified Portfolio

By value of Investment Properties

Single-tenant buildings Multi-tenant buildings Notes:

• Multi-tenant buildings account for 73.7% of A-REIT’s portfolio by asset value
• About 58.3% of Logistics & Distribution Centres in Singapore (by gross floor area) are multi-storey

facilities with vehicular ramp access.

• A-REIT has three data centres of which, two are single-tenant.
• Flatted factories are multi-tenant properties.

69.9% 30.1%

Hi-Specs Industrial

67.9% 32.1%

Light Industrial

19.6% 80.4%

Logistics & Distribution

• AUS

73.4% 26.6%

Logistics & Distribution

• SIN

78.7% 21.3%

Integrated Development, Amenities & Retail Australia, 13% China, 2% Singapore , 85% Business Park Australia, 2% Business Park China, 2% Business and Science Park, 33% Hi-Specs Industrial, 15% Data Centres, 6% Light Industrial, 7% Flatted Factories, 3% Integrated Development, Amenities & Retail, 7% Logistics & Distribution Centres, 14% Logistics and Distribution Centres Australia, 11%

92% 7.9%

Business & Science Park

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Tenants’ Industry Diversification

By Monthly Gross Revenue

Note: Others include research & development, manufacturing, technical service and support industries for aerospace, oil and gas, multi-media products etc.

More than 20 industries

17.0% 0.6% 0.8% 0.8% 0.9% 1.3% 1.4% 1.4% 1.6% 1.6% 2.3% 2.8% 5.2% 6.9% 8.0% 8.3% 8.8% 9.8% 10.1% 10.4% 0% 5% 10% 15% 20% Others Rubber and Plastic Products Fabricated Metal Products Printing & Reproduction of Recorded Media Repair and Servicing of vehicles Chemical Textiles & Wearing Apparels Construction Medical, Precision & Optical Instruments, Clocks Hotels and restaurants Healthcare Products Food Products & Beverages Life Science Electronics Telecommunication & Datacentre Information Technology M&E and Machinery & Equipment Financial Distributors, trading company 3rd Party Logistics, Freight Forwarding

45

Low exposure to Manufacturing

10.1% 89.9% Manufacturing area Non-manufacturing area

• 10.1% of NLA occupied by tenants engaged

in manufacturing activities

• Manufacturing activities include food &

beverages, aeronautical auxiliary equipment, precision engineering etc.

• Non-manufacturing activities include R&D,

backroom offices, telecommunications & data centre, software and media consultancy services as well as transport & storage

Tenants’ business activities by NLA

As at 30 June 2016

46

Quality and Diversified Customer Base

• Total customer base of around 1,450 tenants
• Top 10 customers (as at 30 June 2016) account for about 18.7% of portfolio

gross rental income

• Security deposits for single-tenant properties range from 4 to 11 months of

rental income

• On a portfolio basis, weighted average security deposit is about 4 months of

rental income

4.8% 2.1% 2.1% 1.7% 1.5% 1.5% 1.3% 1.2% 1.2% 1.1%

Singapore Telecommunications Ltd DBS Bank Ltd Citibank, N.A Wesfarmers Group JPMorgan Chase Bank, N.A Ceva Logistics S Pte Ltd Siemens Pte Ltd Biomedical Sciences Institutes (A*Star) Hydrochem (S) Pte Ltd Credit Suisse AG

47

Diversified Portfolio

No single property accounts for more than 5.6% of A-REIT’s monthly gross revenue

Aperia, 5.6% One@Changi City, 4.3% 1, 3, 5 Changi Business Park Crescent, 2.8% Kim Chuan Telecommunication Complex , 2.7% Neuros & Immunos, 2.6% 31 International Business Park, 2.5% 40 Penjuru Lane, 2.4% TelePark, 2.4% Hyflux Innovation Centre, 2.1% TechPlace II, 1.9% TechPoint, 1.8% Techview, 1.8% Nexus@One North, 1.7% TechPlace I, 1.6% 10 Toh Guan Road, 1.6% The Galen, 1.6% Corporation Place, 1.6% DBS Asia Hub (Phase I & II), 1.5% The Kendall, 1.5% Pioneer Hub , 1.5% Techlink, 1.5% The Gemini, 1.4% Nordic European Centre, 1.3% The Capricorn, 1.3% Siemens Centre, 1.3% HansaPoint @ CBP, 1.2% Ascendas - Z-Link, 1.2% FoodAxis @ Senoko, 1.2% Changi Logistics Centre, 1.1% 138 Depot Road, 1.1% Senkee Logistics Hub (Phase I & II), 1.1% The Alpha, 1.1% Giant Hypermart, 1% AREIT City @ JinQiao, 1% Infineon Building, 0.9% Acer Building, 0.9% Cintech IV, 0.9% 7 Grevillia Street, 0.9% Honeywell Building, 0.9% 6-20 Clunies Ross Street, 0.7% Others, 32.3%

48

Change in MTB

• ccupancy

Expected change in annualised MTB NPI (S$m) Change in portfolio NPI (%) Impact on full FY DPU (cents)* +500 bps 27.8 4.7% 1.04 +300 bps 16.7 2.8% 0.62 +100 bps 5.6 0.9% 0.21

• 100 bps
• 6.6
• 1.1%
• 0.25
• 300 bps
• 19.8
• 3.3%
• 0.74
• 500 bps
• 33.1
• 5.5%
• 1.24
• 100 bps increase in MTB occupancy is expected to result in a 0.9% increase

in portfolio net property income or about 0.21 cents increase in DPU

* Based on number of units in issue as at 30 June 2016 Note: Estimates for increase in MTB occupancy takes into account corresponding increases in variable costs. Estimates for a decline in MTB occupancy, assumes no reduction in variable costs to be conservative.

MTB Occupancy: NPI/DPU Sensitivity

49

Overview of A-REIT Key Highlights for 1Q FY16/17 Financial Performance Investment Management Capital Management Asset Management

Portfolio Update Portfolio Resilience

Market Outlook A-REIT’s Strengths

Agenda

50

• Singapore’s 2Q 2016 economy grew 2.2% y-o-y, in line with the Ministry of Trade and

Industry’s (MTI) earlier estimates of between 1.0% to 3.0%

• JTC industrial property price and rental index declined by 2.5% and 2.7% q-o-q

respectively in 1Q 2016

• According to the Reserve Bank of Australia, Australia’s GDP growth is forecast to be

2.5% to 3.5% in 2016 and 3% to 4% from 2017 onwards to 2018.

• Approximately 14.9% of A-REIT’s revenue is due for renewal in FY16/17. Expect

modest rental reversion in the low-single digit or flat for FY16/17

• With 11.8% vacancy in the portfolio, there could be potential upside in net property

income when some of these spaces are leased, the speed of which will largely depend on prevailing market conditions

• The business environment remains challenging due to ongoing economic

restructuring, government regulations on manpower and industrial land use policies, rising operating costs as well as anemic global growth

• Barring any unforeseen event and any weakening of the economic environment, the

Manager expects A-REIT to maintain a stable performance for the financial year ending 31 March 2017

Market Outlook

51

Overview of A-REIT Key Highlights for 1Q FY16/17 Financial Performance Investment Management Capital Management Asset Management

Portfolio Update Portfolio Resilience

Market Outlook A-REIT’s Strengths

Agenda

52

A-REIT's Strengths

Diversity and Depth

• Solid and well diversified portfolio

 Five main property segments  Well-located quality properties  Balance of long term vs. short term leases provides stability with potential for positive rental reversions  No single property accounts for more than 5.6% of revenue  High predictability and sustainability in income

Strong Sponsor

• Sponsor Ascendas Group (a member of Ascendas-Singbridge Group) has

a track record of more than 30 years in this sector

• Committed sponsor and alignment of interest with A-REIT Unitholders

Dedicated Manager

• One of eight S-REITs where performance fee is linked to DPU growth
• Performance fees are payable to the Manager only if there is a y-o-y

growth of at least 2.5% in the DPU

53

A-REIT's Strengths

• Downside protection in earnings
• Stable portfolio with 85.1% of portfolio revenue committed for

FY16/17 and a portfolio average lease to expiry of about 3.6 years

• Mix of long term and short term leases provide earnings stability
• Long term leases have a weighted average lease to expiry of about

6.2 years and are backed by an average of 6 months’ rent in security deposits

• Long term leases have built-in rental escalation
• Diversified portfolio capable of serving the needs of users in diverse

sectors

• Hedge against Inflation
• 26.3% of leases are long term with periodic rental escalation, of which

about 26.6% have CPI-based adjustment and 73.4% incorporate fixed- rate adjustment

54

• Development capability
• Has capability and capacity to create own assets which could be more yield

accretive than acquisitions of income producing properties

• Operational platform (Property Manager, Ascendas Services Pte Ltd)
• Dedicated

asset management, sales/marketing, leasing and property management team of over 100 people

• Possess in-depth understanding of the property sector
• Customer focus
• Around 1,450 tenants (international and local companies)
• Track record of customers growing with us
• Size advantages
• Largest business and industrial REIT in Singapore
• 3rd largest industrial REIT in the Asia (ex-Japan) by market capitalisation
• Accounts for 9% of S-REIT market capitalisation and 5% of Asia (ex-Japan) REITs as

at 30 June 2016

• Accounts for 14% of S-REIT total trading volume in 1Q FY16/17
• Included as one of the 30 FTSE Straits Times Index constituents effective from 4

June 2014, and also in other major indices (e.g. MSCI, S&P)

A-REIT's Strengths

55

Prudent Capital & Risk Management Value-Adding Investments Proactive Asset Management Stability Growth Predictable income Capital stability

Total Returns

Proactive and dedicated manager with track record

Fund Manager: Ascendas Funds Management (S) Ltd Property Manager: Ascendas Services Pte Ltd Fund Manager: Ascendas Funds Management (S) Ltd

Performance Drivers Outcome Strategies

A-REIT's Strategies

56

Additional Information (1) Quarterly Results (2) A-REIT Singapore Occupancy vs Industrial Average (3) Lease Expiry Profile – Singapore & Australia

57

(For illustrative purpose)* FY15/16 FY16/17 Summary (S$ million) 1Q 2Q 3Q 4Q Total 1Q Gross Revenue

181 183 193 204 761 208

Net Property Income

124 124 142 144 534 149

Total amount available for distribution

92 94# 97 89 372# 107

• No. of units in issue (m)

2,408 2,408 2,504 2,666 2,666 2,674

Normalised Distribution Per Unit (cents)

3.841 3.889# 3.946 3.410 15.086# 3.996

For illustrative purpose only, the “Total amount available for distribution” and the “Distribution Per Unit” includes proforma adjustments for (i) a one-off distribution of taxable income from operations of S$6.5 million (DPU impact of 0.271 cents) for 2Q FY15/16 in relation to a rollover adjustment from prior years arising from a ruling by IRAS on the non-deductibility of certain upfront financing fees incurred in FY09/10 for certain credit facilities.

Quarterly Results

58

Source : A-REIT’s Singapore portfolio as at 30 june 2016. Market: JTC 1Q 2016 (JTC 2Q 2016 data to be released on 28 July 2016) JTC statistics do not breakdown Hi-Specs Industrial and Light Industrial, ie they are treated as one category with occupancy of 90.5%

A-REIT Singapore Occupancy vs Industrial Average

88.0% 86.8% 91.2% 86.0% 81.7% 90.5% 90.5% 90.4% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% Business and Science Park Hi-Specs Industrial Light Industrial Logistics

A-REIT JTC

Occupancy Rate

59

$5.40 $4.10 $3.70 $3.10 $1.71

0.5 1.5 2.5 3.5 4.5 5.5 6.5

Business Park (City Fringe) Business & Science Parks (Median Rents) Business Park (Rest of Island) Hi-Specs Light Industrial Logistics

20 40 60 80 100 120

Industrial Rental Index Source : JTC

Source : CBRE for Business Park (City Fringe)*, Business Park (Rest of Island)*, Hi,Specs, Light Industrial and Logistics* JTC for Business Parks (Median Rents) * Based on 1Q 2016 data, 2Q 2016 is not yet available

$1.73

Average Market Rents by Segment (Singapore)

60

• Total stock (net) : 44.9 million sqm, of which
• Business & Science Parks account for 2.1 million sqm (4.6%)
• Logistics & Distribution Centres account for 9.1 million sqm (20.2%)
• Remaining stock are factory space
• Potential new supply (net) of about 2.5 million sqm (~5.5% of existing stock) over next

3 years

* Excludes projects under 7,000 sqm. Based on gross floor area Source: JTC, A-REIT internal research

Sector ('000 sqm) New Supply (Total) 2016 2017 2018 Business & Science Park 112 112 % of Pre-committed (est) 53% 53% 0% 0% Hi-Specifications Industrial 116 91 25 % of Pre-committed (est) 67% 86% 0% 0% Light Industrial 1,396 683 432 282 % of Pre-committed (est) 30% 43% 27% 3% Logistics & Distribution Centres 834 285 549 % of Pre-committed (est) 17% 49% 0% 0% Total Pre-commitment 28%

Singapore Industrial Property Market: New Supply

61

Singapore Business & Science Parks: New Supply

Expected Completion Location Developer NLA (sqm)* % Pre- committed (est) 2016 Ayer Rajah (One-north) SHINE Systems Assets Pte Ltd 17,144 87% 2016 Science Park Ascendas Land (S) Pte Ltd. 40,500 70% 2016 Alexandra Terrace Mapletree Business City Pte Ltd 83,008 40% 2016 Vista Exchange Green BP – VISTA LLP (New) 11,480 100% Total (2016) 152,132 58%

Source: JTC & A-REIT internal research

• There are currently no Business & Science Park supply after 2016

* NLA based on 80% efficiency ratio

62 Important Notice

This presentation has been prepared by Ascendas Funds Management (S) Limited as Manager for Ascendas Real Estate Investment Trust. The details in this presentation provide general information only. It is not intended as investment or financial advice and must not be relied upon as such. You should obtain independent professional advice prior to making any decision. This presentation is not an offer or invitation for subscription or purchase of securities or other financial products. Past performance is no indication of future performance. All values are expressed in Singaporean currency unless otherwise stated.

The End