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’) 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. WHA Industrial REIT Management Company Limited 2
Agenda Portfolio Overview Performance Financial Results WHA Industrial REIT Management Company Limited 3
HREIT’s Portfolio Overview
HREIT Investment Structure Portfolio Value Investors 332,505 Sq.m. of 85% 15% Ready Built Factory • Investment in the REIT Benefits Ready Built Warehouse 30-year Leasehold Rights (expiring in WHA LP4 2046) plus Option to Renew for 30 Trustee Fees ESIE 10% 18% years + Asset Mortgage Trustee Service WHA LP2 Trustee 9,691 Bt.m 15% Hemaraj Leasehold Fund Proceed As of Y2018 REIT Mgmt Fees WHA LP1 Real Estate Investment Trust Total Assets WHA ESIE1 5% Manage REIT REIT Manager 38% (“HREIT”) WHA SIL 9% WHA CIE1 5% PM Fees Property Management Service Appoint Manage Assets Property Manager WHA Industrial REIT Management Company Limited 5
HREIT Top 10 Unitholders Unitholders 22-Nov-18 No. Number of Name Percentage Unitholders by Type Trust Units 1 WHA Industrial Development Public Company Limited 105,395,609 15.00% Foreign Foreign Retail, 0.1% 2 South East Life Insurance Public Company Limited 31,308,261 4.46% Institution, 3 HRD, 15.0% TMB Property Income Plus Fund 25,850,500 3.68% 1.8% 4 Mr.Chanin Charisrapong 13,100,000 1.86% Local As of 5 Thanachart Property and Infrastructure Flexible Fund 11,916,052 1.70% Institution, 22 Nov, 2018 Local 6 Dhipaya Insurance Public Company Limited 11,300,000 1.61% 19.1% Retail, 7 Raffles Nominees (PTE) Limited 10,000,000 1.42% 63.9% 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 WHA Industrial REIT Management Company Limited 6
Key Performance HREIT Key Information as of 4Q2018 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 WHA Industrial REIT Management Company Limited 7
Assets on Strategic Location RBF with Total NLA of 230,984 sq.m. Total NLA = 332,505 sq.m. Unit H1 H2 H3 H1+H2+H3 - Total NLA H1 = 261,458 sq.m. 1 WHA CIE1 - Total NLA H2 = 55,131 sq.m. No. of Units Units 17 2 - 19 - Total NLA H3 = 15,916 sq.m. NLA Sq.m. 15,660 2,052 - 17,712 Roof Area Sq.m. 6,812 900 - 7,711 2 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 3 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 4 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 RBW with Total NLA of 101,521 sq.m. Unit H1 H2 H3 H1+H2+H3 1 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 2 No. of Units Units 11 - - 11 NLA Sq.m. 50,996 - - 50,996 Roof Area Sq.m.. 24,174 - - 24,174 3 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 WHA Industrial REIT Management Company Limited 8
Key Highlights Key Investment Highlights New Waves of Business A result of a rise on import tariff between USA and China potentially attracts to several Chinese investors 1. Opportunities from US- who intend to establish new manufacturing bases in Thailand and Export to USA China Trade War New Waves of Business Development of transportation infrastructure, promotion of 10 targeted industries and investment incentives 2. Opportunities from EEC 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 Limited Supply Particularly 3. factories. Meanwhile, the business opportunities arising from the EEC would be able to result in inflows of on Industrial Estate business operators requiring rental space, driving up demand in the Eastern Seaboard area. Investment assets in various location and more diversity in nationality and business type of lessees Increase in Diversity of possibly make amount of HREIT’s income increase and give impressive return in form of cash distribution 4. Total Portfolio per unit WHA Industrial REIT Management Company Limited 9
HREIT’s Performance
Performance of HREIT Occupancy Rate 86.9% 86.5% 87.2% 85.5% 84.4% 77.3% 77.5% 77.4% 80.5% 80.8% 79.6% 77.1% 72.9% 70.1% 69.3% 69.1% 67.3% 68.4% 67.6% 61.6% 52.6% 51.5% 47.5% 46.4% 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018 Ready Built Factory Ready Built Warehouse Total Asset WHA Industrial REIT Management Company Limited 11
Tenant Profile HREIT Tenant Profile Top 10 Tenants by Rental Area Unit: Sq.m. Total NLA: 268,504 sq.m. 27,692 25.03% Japan Nationality Mix 24.63% Asia 15,984 EU 23.06% 12,980 11,476 11,358 Australia 17.41% 9,828 9,508 8,550 8,456 7,800 America 9.87% Occupied Area: 268,504 sq.m. 31.24% Auto Industry Mix Logistics 22.89% Lease Expiry Profile /1 21.05% Consumer Electronics 9.67% 5.53% Packaging Others 9.62% after 2022 13.42% 2021 33.95% Total NLA: 332,505 sq.m. Chonburi 65.17% 2020 18.46% Location Mix Rayong 25.33% Saraburi 9.50% 2019 34.17% WHA Industrial REIT Management Company Limited Note : /1 shows percentage to total Occupied Area as of Dec’18 12
Sponsor’s Support Rate of Guaranteed Revenue (Bt/Sq.m./month) Sponsor H1 H2 H3 Ready Built Ready Built Ready Built 206 210 200 Factory - Detach Factory - Detach Factory - Detach Ready Built Ready Built Ready Built 193 185 190 Factory - Attach Factory - Attach Factory - Attach Ready Built Ready Built 147 155 Warehouse Warehouse Scheme I : Guaranteed Revenue for 23 Nov 2016 – 22 Nov 2019 4 Jan 2018 – 3 Jan 2021 24 Dec 2018 – 23 Dec 2021 Vacant Room /1 Scheme II : Top Up Guarantee for 4 Jan 2018 – 22 Nov 2019 4 Jan 2018 – 3 Jan 2021 24 Dec 2018 – 23 Dec 2021 Lower Rental Rate WHA Industrial REIT Management Company Limited Note : /1 Scheme II applys for new contract signed after 4 Jan 2018 13
HREIT’s Financial Results
Financial Results Revenue Breakdown Net Income Total revenue had been stabilized from H1 performance and Net Investment Income increased 23.88% mainly from increased 25.86% mainly from revenue generation of asset investment in asset acquisition on Jan 2018 and Dec 2018 acquisition on Jan 2018 (H2) and Dec 2018 (H3) Unit: Bt.m 650.12 123.21 576.83 726.04 526.91 425.36 5.83 6.66 123.78 200.03 (850.77) 447.23 519.35 (425.41) Y2017 Y2018 Y2017 Y2018 Increase/(Decrease) in Net Assets from Operation Rental & Service Income Compensated Income Other Revenue Adjust Gain/(Loss) from Accounting Net investment income WHA Industrial REIT Management Company Limited 15
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