OPPORTUNITY DAY Hemaraj Leasehold Real Estate Investment Trust 22 - - PowerPoint PPT Presentation

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OPPORTUNITY DAY Hemaraj Leasehold Real Estate Investment Trust 22 - - PowerPoint PPT Presentation

OPPORTUNITY DAY Hemaraj Leasehold Real Estate Investment Trust 22 February 2019 WHA Industrial REIT Management Company Limited 1 Disclaimer This presentation has been prepared by WHA Industrial REIT Management Company Limited (WHAIRM)


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WHA Industrial REIT Management Company Limited

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Hemaraj Leasehold Real Estate Investment Trust 22 February 2019

OPPORTUNITY DAY

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WHA Industrial REIT Management Company Limited

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Disclaimer

This presentation has been prepared by WHA Industrial REIT Management Company Limited (‘WHAIRM’) 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 WHAIRM and may not be copied, distributed or otherwise disseminated in whole or in part without the written consent of WHAIRM. 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. WHAIRM makes no expression or implied warranty as to the accuracy or completeness of any such information. WHAIRM 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 shouldconsult their own advisers. Neither WHAIRM 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 or less than the initial sum.

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WHA Industrial REIT Management Company Limited

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  • Portfolio Overview
  • Performance
  • Financial Results

Agenda

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HREIT’s Portfolio Overview

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WHA Industrial REIT Management Company Limited

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ESIE 18% WHA ESIE1 38% WHA CIE1 5% WHA SIL 9% WHA LP1 5% WHA LP2 15% WHA LP4 10%

15% 85% Investors Property Manager Manage REIT REIT Mgmt Fees Trustee Fees REIT Manager Trustee Fund Proceed 30-year Leasehold Rights (expiring in 2046) plus Option to Renew for 30 years + Asset Mortgage Manage Assets Appoint PM Fees Property Management Service Portfolio Value 9,691 Bt.m As of Y2018 Total Assets

HREIT Investment Structure

Trustee Service

Hemaraj Leasehold Real Estate Investment Trust (“HREIT”)

332,505 Sq.m. of

  • Ready Built Factory

Ready Built Warehouse Investment in the REIT Benefits

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WHA Industrial REIT Management Company Limited

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As of 22 Nov, 2018 Unitholders by Type

HREIT Top 10 Unitholders

Unitholders Name Number of Trust Units Percentage

1 WHA Industrial Development Public Company Limited 105,395,609 15.00% 2 South East Life Insurance Public Company Limited 31,308,261 4.46% 3 TMB Property Income Plus Fund 25,850,500 3.68% 4 Mr.Chanin Charisrapong 13,100,000 1.86% 5 Thanachart Property and Infrastructure Flexible Fund 11,916,052 1.70% 6 Dhipaya Insurance Public Company Limited 11,300,000 1.61% 7 Raffles Nominees (PTE) Limited 10,000,000 1.42% 8 Thanachart Property Sector Fund 8,563,372 1.22% 9 Muang Thai Insurance Public Company Limited 7,642,500 1.09% 10 South East Insurance Public Company Limited 6,901,412 0.98%

Top Ten Unitholders 231,977,706 33.02% Others 470,656,410 66.98% Total Unitholders 702,634,116 22-Nov-18 No.

HRD, 15.0% Local Institution, 19.1% Local Retail, 63.9% Foreign Institution, 1.8% Foreign Retail, 0.1%

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WHA Industrial REIT Management Company Limited

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Key Performance

Total Building Net Leasable Area (NLA) 332,505 Sq.m 131 Units

  • Ready Built Factory

230,984 Sq.m. 108 Units

  • Ready Built Warehouse

101,521 Sq.m. 23 Units Total Roof Top Area for Rent 179,649 Sq.m. Asset Size Bt 9,691 m Investment Type 100% Leasehold (30+30 years) Occupancy Rate Before Undertake 80.8% Occupancy Rate After Undertake 100% Total Interest Bearing Debt Bt 3,320 m Loan to Value 33.87% NAV per Unit Bt 8.7966 per unit

HREIT Key Information as of 4Q2018

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WHA Industrial REIT Management Company Limited

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Assets on Strategic Location

Total NLA = 332,505 sq.m.

  • Total NLA H1 = 261,458 sq.m.
  • Total NLA H2 = 55,131 sq.m.
  • Total NLA H3 = 15,916 sq.m.

Unit H1 H2 H3 H1+H2+H3 WHA CIE1

  • No. of Units

Units 17 2

  • 19

NLA Sq.m. 15,660 2,052

  • 17,712

Roof Area Sq.m. 6,812 900

  • 7,711

ESIE

  • No. of Units

Units 34 7

  • 41

NLA Sq.m. 41,980 15,772

  • 57,752

Roof Area Sq.m. 18,513 7,056

  • 25,569

WHA ESIE1

  • No. of Units

Units 29 3

  • 32

NLA Sq.m. 109,876 17,632

  • 127,508

Roof Area Sq.m. 49,776 8,380

  • 58,156

WHA SIL

  • No. of Units

Units

  • 7

9 16 NLA Sq.m.

  • 12,096

15,916 28,012 Roof Area Sq.m.

  • 5,435

8,467 13,902

RBF with Total NLA of 230,984 sq.m.

Unit H1 H2 H3 H1+H2+H3 WHA LP1

  • No. of Units

Units 2

  • 2

NLA Sq.m. 16,820

  • 16,820

Roof Area Sq.m.. 8,446

  • 8,446

WHA LP2

  • No. of Units

Units 11

  • 11

NLA Sq.m. 50,996

  • 50,996

Roof Area Sq.m.. 24,174

  • 24,174

WHA LP4

  • No. of Units

Units 8 2

  • 10

NLA Sq.m. 26,126 7,579

  • 33,705

Roof Area Sq.m.. 12,385 3,628

  • 16,013

RBW with Total NLA of 101,521 sq.m.

2 3 4 1 2 3 1

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WHA Industrial REIT Management Company Limited

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Key Highlights

New Waves of Business Opportunities from EEC

Development of transportation infrastructure, promotion of 10 targeted industries and investment incentives from EEC potentially strengthen tenants’ businesses and hence, positive to HREIT’s performance Large players in the ready-built market have limited their new supply of ready-built warehouses and

  • factories. Meanwhile, the business opportunities arising from the EEC would be able to result in inflows of

business operators requiring rental space, driving up demand in the Eastern Seaboard area.

Limited Supply Particularly

  • n Industrial Estate

Increase in Diversity of Total Portfolio

Investment assets in various location and more diversity in nationality and business type of lessees possibly make amount of HREIT’s income increase and give impressive return in form of cash distribution per unit

2. 4. 3. Key Investment Highlights 1.

New Waves of Business Opportunities from US- China Trade War

A result of a rise on import tariff between USA and China potentially attracts to several Chinese investors who intend to establish new manufacturing bases in Thailand and Export to USA

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HREIT’s Performance

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WHA Industrial REIT Management Company Limited

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Performance of HREIT

Occupancy Rate

86.5% 86.9%

87.2%

77.3% 77.5% 77.4% 84.4% 85.5%

67.3% 69.3% 47.5% 52.6% 46.4% 51.5% 61.6% 70.1%

79.6% 80.5% 72.9% 68.4% 67.6% 69.1% 77.1% 80.8%

1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018

Ready Built Factory Ready Built Warehouse Total Asset

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WHA Industrial REIT Management Company Limited

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Nationality Mix Industry Mix Location Mix HREIT Tenant Profile Top 10 Tenants by Rental Area Lease Expiry Profile

Tenant Profile

Unit: Sq.m.

/1 Note : /1 shows percentage to total Occupied Area as of Dec’18

Total NLA: 332,505 sq.m. Occupied Area: 268,504 sq.m. Total NLA: 268,504 sq.m. EU 23.06% Japan 25.03% Australia 17.41% Asia 24.63% America 9.87% Auto 31.24% Consumer 21.05% Logistics 22.89% Electronics 9.67% Packaging 5.53% Others 9.62% Chonburi 65.17% Rayong 25.33% Saraburi 9.50% 34.17% 18.46% 33.95% 13.42% 2019 2020 2021 after 2022

27,692 15,984 12,980 11,476 11,358 9,828 9,508 8,550 8,456 7,800

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WHA Industrial REIT Management Company Limited

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210 193

Ready Built Factory - Detach Ready Built Factory - Attach

200 190 155

Ready Built Factory - Detach Ready Built Factory - Attach Ready Built Warehouse

206 185 147

Ready Built Factory - Detach Ready Built Factory - Attach Ready Built Warehouse

Sponsor’s Support

Rate of Guaranteed Revenue (Bt/Sq.m./month) Scheme II :

Top Up Guarantee for Lower Rental Rate

Scheme I :

Guaranteed Revenue for Vacant Room

23 Nov 2016 – 22 Nov 2019

/1

Note : /1 Scheme II applys for new contract signed after 4 Jan 2018

H2 H1 H3 Sponsor

4 Jan 2018 – 22 Nov 2019 4 Jan 2018 – 3 Jan 2021 4 Jan 2018 – 3 Jan 2021 24 Dec 2018 – 23 Dec 2021 24 Dec 2018 – 23 Dec 2021

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HREIT’s Financial Results

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WHA Industrial REIT Management Company Limited

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Total revenue had been stabilized from H1 performance and increased 25.86% mainly from revenue generation of asset acquisition on Jan 2018 (H2) and Dec 2018 (H3)

Financial Results

Unit: Bt.m

447.23 519.35 123.78 200.03 5.83 6.66 576.83 726.04 Y2017 Y2018 Rental & Service Income Compensated Income Other Revenue

Revenue Breakdown Net Income

Net Investment Income increased 23.88% mainly from investment in asset acquisition on Jan 2018 and Dec 2018

425.36 526.91 (850.77) 123.21 (425.41) 650.12

Y2017 Y2018 Increase/(Decrease) in Net Assets from Operation Adjust Gain/(Loss) from Accounting Net investment income

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WHA Industrial REIT Management Company Limited

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Historical Distribution Payment

Note : /1 Dividend payment for 4Q2016 with 41 operating days /2 4Q2017 distribution has divided into 2 capital reductions rounds due to closing book for unitholder’s right in increase in capital for H2 investment /3 4Q2018 will be paid in dividend form 0.1684 Bt/Unit and in capital reduction form 0.0226 Bt/Unit to unitholders on 26 Mar 2019

0.0779 0.1868 0.1684 0.1862 0.1903 0.1727 0.1890 0.1910 0.1910 0.0226 0.3730 0.5633 0.7360 0.3800 0.5710 0.7620 0.0000 0.2000 0.4000 0.6000 0.8000 1.0000 1.2000 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018

Dividend Capital Reduction

Distribution to Unitholders

Unit: Bt/Unit

/2 /1 /3

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Q&A