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Unpre c e de nte d Cha lle ng e s Impa c ting Busine ss Pe rforma nc e 1H 20 F ina nc ia l Hig hlig hts Po sitive re nta l re ve rsio n fo r o ffic e po rtfo lio T otal R ental Inc ome Net Pr oper ty Inc ome F o o tfa ll a nd re


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SLIDE 1
slide-2
SLIDE 2

2

Unpre c e de nte d Cha lle ng e s Impa c ting Busine ss Pe rforma nc e

Distr ibutable Inc ome HK$mm

804

↓ 7.5% Y/ Y

Distr ibution per Unit HK$

0.1229

↓ 7.7% Y/ Y

T

  • tal R

ental Inc ome HK$mm

1,342

↓ 4.1% Y/ Y

Net Pr

  • per

ty Inc ome HK$mm

1,194

↓ 5.4% Y/ Y

1H 20 F ina nc ia l Hig hlig hts

  • Po sitive re nta l re ve rsio n fo r o ffic e po rtfo lio
  • F
  • o tfa ll a nd re ta il sa le s pe rfo rma nc e s a t

L a ng ha m Pla c e dro ppe d sig nific a ntly due to so c ia l dista nc ing me a sure s

  • Re nta l re lie f g ra nte d to te na nts o n a

c a se -b y-c a se b a sis

  • L

a unc he d o nline e Sto re pla tfo rm to se ll c o upo ns o f o ur te na nts to b o o st sa le s

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SLIDE 3

3

Re nta l Inc ome Dra g g e d by Sha rp De c line in T urnove r Re nt

738 770 185 194 477 378

1H 2019 1H 2020

T hre e Ga rde n Ro a d L a ng ha m Pla c e Offic e L a ng ha m Pla c e Ma ll

1,400 1,342

Re ntal Inc ome by Pr

  • pe r

ty (HK$mm) Re ntal Inc ome by Inc ome T ype (HK$mm)

+4.3% +4.8%

  • 20.6%

1,258 1,290 90 9 51 43

1H 2019 1H 2020

Ba se Re nt T urno ve r Re nt Ca rpa rk a nd Othe rs

T

  • tal: - 4.1%

+2.6%

  • 90.2%
  • 15.8%

T

  • tal: - 4.1%

1,400 1,342

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SLIDE 4
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SLIDE 5

5

T hre e Ga rde n Ro a d Offic e

Positive Re nta l Re ve rsion Ac hie ve d with L

  • ng e r L

e a se E xpirie s

107.8 109.5

De c - 2019 Jun- 2020

Passing Re nt as at 30 Jun 2020

E ffe c tive Re nt pe r sq . ft. (L e tta b le ) (HK $)

+1.6% 9.8%

4.7% 16.2% 16.3% 8.0% 3.9% 2.8% 9.5% 28.7%

Vac ant 2020 2021 2022 2023 2024 and afte r

Va c a nt L e a se s E xp iring Re nt Re vie w

L e ase E xpir y as at 30 Jun 2020

  • WAUL

T

  • f 3.4 ye a rs
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SLIDE 6

Ba nking 33% Asse t Ma na g e me nt 29% Co rpo ra te 6% F le xib le Wo rkspa c e 6% Me d ia 6% L e g a l 3% Me d ic a l 2% Co nsulta nc y 2% Othe rs 3% Va c a nt 10%

6

Offic e T e nant Pr

  • file as at

30 Jun 2020

T hre e Ga rde n Ro a d Offic e

Slig ht Drop in Oc c upa nc y on We a k Offic e De ma nd

93.0% 90.2%

De c - 2019 Jun- 2020

Oc c upanc y Rate as at 30 Jun 2020

T hr e e Gar de n Road Offic e Valuation Cap Rate

  • HK$42.3bn (~HK

$26,772 pe r sq . ft.)

  • 3.70%
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SLIDE 7
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SLIDE 8

8

L a ng ha m Pla c e Offic e

E xte nde d L e a se Profile with Slig ht Inc re a se in Re nta l L e ve l

46.5 47.1

De c - 2019 Jun- 2020

Passing Re nt as at 30 Jun 2020

E ffe c tive Re nt pe r sq . ft. (Gro ss) (HK $)

+1.3%

2.2% 12.6% 12.2% 17.7% 34.0% 18.9% 2.5%

Vac ant 2020 2021 2022 2023 2024 and afte r

Va c a nt L e a se s E xp iring Re nt Re vie w

L e ase E xpir y as at 30 Jun 2020

  • WAUL

T

  • f 2.4 ye a rs
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SLIDE 9

Co rpo ra te & Sa le s Se rvic e s 30% He a lthc a re & Me d ic a l 27% Be a uty 23% F itne ss Ce ntre 10% F le xib le Wo rkspa c e 6% Othe rs 2% Va c a nt 2%

9

Offic e T e nant Pr

  • file as at

30 Jun 2020

L a ng ha m Pla c e Offic e

Hig h Oc c upa nc y Ma inta ine d with Upc oming He a dwind

97.7% 97.8%

De c - 2019 Jun- 2020

Oc c upanc y Rate as at 30 Jun 2020

L ife style -re la te d te na nts: 60%

L angham Plac e Offic e Valuation Cap Rate

  • HK$9.6bn (~HK

$13,623 pe r sq . ft.)

  • 4.10%
  • F
  • rme d stra te g ic pa rtne rship with o ur

ma jo r te na nt, Unio n Me dic a l He a lthc a re

  • Pro vide d pro mo tio n suppo rt fo r life style

te na nts

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SLIDE 10
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SLIDE 11

11

L a ng ha m Pla c e Ma ll

Soc ia l Dista nc ing a nd Borde r Control Se ve re ly Impa c te d F

  • otfa ll

a nd Sa le s Pe rforma nc e s

Unde r pe r for me d Hong Kong Re tail Sale s

  • T

he impro ve d fo o tfa ll a nd sa le s pe rfo rma nc e s to wa rds e nd o f se c o nd q ua rte r wa s sub se q ue ntly impa c te d b y ne w wa ve o f COVI D-19 in July

L angham Plac e Mall F

  • otfall

Re tail sale s y/ y by se gme nt Hong Kong Re tail L angham Plac e

Me d ic ine s & Co sme tic s

  • 55%
  • 72%

Clo thing & F

  • o twe a r
  • 51%
  • 58%

F &B

  • 29%
  • 40%

Supe rma rke ts +11%

  • 22%

(25%) (55%) (40%) (44%) (29%) (20%) (35%) (40%)

Jan F e b Mar Apr May Jun 1H Jul

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SLIDE 12

12

L a ng ha m Pla c e Ma ll

Re nta l Inc ome Droppe d Sha rply with Minima l T urnove r Re nt

Br e akdown of Base Re nt and T ur nove r Re nt

(HK $mm)

80%

  • Minima l turno ve r re nt re c e ive d in 1H 2020, a nd

e xpe c te d to sta y lo w in 2H 2020

  • Ba se re nt will c o ntinue to de c line in 2H 2020

356 347 90 9

1H 2019 1H 2020

Ba se Re nt T urno ve r Re nt

447 356

2% 20%

  • 20.4%

190.5 178.9

De c - 2019 Jun- 2020

  • 6.1%

Passing Re nt as at 30 Jun 2020

Ba se Re nt pe r sq . ft. (L e tta b le ) (HK $)

  • L
  • we r pa ssing b a se re nt due to ne g a tive

re ve rsio n, le a se re struc turing a nd re nta l c o nc e ssio n g ra nte d

98%

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SLIDE 13

13

L a ng ha m Pla c e Ma ll

Ma inta ine d F ull Oc c upa nc y by E nte ring into Short- te rm L e a se s

100% 100%

De c - 2019 Jun- 2020

7.2% 28.4% 30.0% 9.8% 24.6%

2H 2020 2021 2022 2023 2024

L e ase E xpir y as at 30 Jun 2020

11.8% 26.0% 29.2% 9.2% 23.8%

2020 2021 2022 2023 2024

  • E

nte re d into sho rt-te rm le a se s in o rde r to ma inta in 100% o c c upa nc y fo r the ma ll

  • Ma jo rity o f the re ma ining 7.2% le a se s due in 2H 2020 will b e re ne we d o n sho rt-te rm b a sis
  • 6.0% o f le a se s we re re struc ture d to turno ve r re nt o nly, a c c o unting fo r 6.9% o f a re a

Oc c upanc y Rate as at 30 Jun 2020 L e ase E xpir y as at 31 De c 2019

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SLIDE 14

14

L a ng ha m Pla c e Ma ll

Ong oing Ac tive T e na nt Ma na g e me nt

Continuous E ffor ts in Br inging Ne w T e nants F &B and Confe c tionar y He alth & Be auty

F a shio n & Ac c e sso rie s 38% F

  • o d &

Be ve ra g e 22% He a lth & Be a uty 12% Othe rs 13% E nte rta inme nt 15%

Re tail T e nant Pr

  • file as at 30 Jun 2020

L angham Plac e Mall Valuation Cap Rate

  • HK$18.0bn (~HK

$30,539 pe r sq . ft.)

  • 4.00%
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SLIDE 15

15

L a ng ha m Pla c e Ma ll

Optimiza tion of T e na nt Mix for L

  • w Zone
  • Be a uty te na nts inc re a se d to 12% fro m 10% in June 2019
  • Ne w b e a uty / skinc a re sto re s e xte nde d to b a se me nt flo o rs
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SLIDE 16

16

L a ng ha m Pla c e Ma ll

Ne w T e na nts a nd Ne w Offe ring s by T e na nts Attra c te d F

  • otfa ll

L 4 Isaac T

  • ast & Soul F
  • od T

r uc k

  • L
  • ng line s q ue ue ing o utside the ne w

K

  • re a n re sta ura nt a t fo o d c o urt

L 12 L e go Stor e

  • L
  • ng q ue ue s o utside L

E GO Sto re a t the la unc h o f L E GO Gra nd Pia no Se t a nd Supe r Ma rio Se rie s

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SLIDE 17

17

L a ng ha m Pla c e Ma ll

Ma rke ting E fforts to Comba t with Cha lle ng ing Se ntime nt

Sale s- dr ive n Pr

  • motion Offe r

s to Attr ac t Shoppe r s F r e e Par king Offe r s

  • E

njo y up to 5 ho urs fre e pa rking upo n de sig na te d spe nding

Cr

  • ss- se lling Offe r

s

  • Cro sso ve r-se lling o f

ma ll c o upo ns to c usto me rs a t o ffic e b e a uty te na nts upo n de sig na te d spe nding

  • F

irst O2O e Sto re pla tfo rm la unc he d in July

  • Se lling c a sh c o upo ns o f o ve r 50 me rc ha nts
  • f L

a ng ha m Pla c e Ma ll a nd Offic e

Pop Up E

  • stor

e for Coupon Se lling

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SLIDE 18

18

Re sponse s to COVID- 19 – Susta ina bility

Ope r ation Soc ial Hygie nic and Disinfe c tion Me asur e s

  • Auto ma tic disinfe c tio n fo r e sc a la to rs
  • Ha nds-fre e fo o tste p tha t a llo ws pe o ple to
  • pe n do o rs using fo o t inste a d o f ha nds

Digital Solution – Offic e Vir tual T

  • ur
  • Pio ne e ring 360 de g re e s with live c ha t func tio n
  • Addre ss te na nts’ ne e ds a mid so c ia l-dista nc ing

Giving bac k to the Community

  • Do na tio n o f ha nd sa nitise rs to kinde rg a rte n
  • E

ntre pre ne ur summe r pro g ra mme to pro vide te rtia ry stude nts pra c tic a l le a rning e xpe rie nc e

F

  • ste r

We ll- be ing among our E mploye e s

  • Ha ndma de Alc o ho l Sa nitise r a nd

Ze nta ng le Wo rksho p

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SLIDE 19

19

Ma inta ining Prude nt F ina nc ia l Position

De bt Matur ity Pr

  • file as at 30 Jun 2020

(HK $mm)

3,685 5,814 200 643 2,998 200 1,225 275 2,325

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Ba nk L

  • a n (Se c ure d)

Ba nk L

  • a n (Unse c ure d )

MT N

(1)

  • T
  • ta l de b t o f HK

$17,365mm

  • I

ssue d a USD300mm MT N 10-ye a r b o nd a t a c o upo n ra te o f 2.95%

  • 1H 20 e ffe c tive inte re st ra te : 2.9%
  • Curre nt fixe d-ra te po rtio n a t 77.0%

(De c -2019: 64.2%)

  • L

e ng the ne d a ve ra g e de b t ma turity pro file to 3.8 ye a rs

  • Ne t Asse t Va lue pe r Unit a t HK

$9.44

6.0 6.5

De c - 2019 Jun- 2020

18.0 22.7

De c - 2019 Jun- 2020

Ne t De bt / E BIT DA (x) Ge ar ing Ratio (% )

No te (1): I nc luding HK$850 millio n c o mmitte d re vo lve r with final maturity in June 2024

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SLIDE 20

20

L

  • ok at Global Investment

Oppor tunities Ver y Pr udently

  • Suffic ie nt war

c he st to we athe r the upc o ming unc e r taintie s afte r the U SD300mm MT N issuanc e

  • Co ntinue to mo nito r

mar ke t mo ve me nts and aim to impr

  • ve

c r e dit pr

  • file ho listic ally
  • Offic e – U

nc e r tain o utlo o k fo r bo th Ce ntr al and Mo ngko k o ffic e s

  • Re tail – Challe nging e nvir
  • nme nt to

c o ntinue due to glo bal e c o no mic slo wdo wn and po litic al te nsio ns

  • Pr
  • lo nge d impac t fr
  • m wo r

ldwide pande mic will lo we r DPU in 2H 2020

Guida nc e

Por tfolio Outlook L iabilities Management

  • Cautio usly e xplo r

e ac c r e tive inve stme nts unde r an unc e r tain mac r

slide-21
SLIDE 21

21

T his pre se nta tio n ma y c o nta in info rma tio n whic h is pro prie ta ry, c o nfide ntia l a nd/ o r le g a lly privile g e d a nd ha s b e e n pre pa re d b y E a g le Asse t Ma na g e me nt (CP) L imite d, in its c a pa c ity a s the ma na g e r (the “RE I T Ma na g e r”) o f Cha mpio n Re a l E sta te I nve stme nt T rust (the “T rust”). T his pre se nta tio n is b e ing c o mmunic a te d fo r info rma tio n purp o se s o nly a nd its inte nde d re c ipie nts a re pro fe ssio na l inve sto rs in Ho ng K

  • ng (a s de fine d

b y Pa rt 1 o f Sc he d ule 1 to the Se c uritie s a nd F uture s Ordina nc e (Ca p .571)) a nd pro fe ssio na l inve sto rs o utside o f Ho ng K

  • ng to who m it is la wful to

c o mmunic a te the pre se nta tio n. Any o the r pe rso ns sho uld no t re ly o r a c t upo n this pre se nta tio n o r a ny o f its c o nte nts. T he info rma tio n c o nta ine d in this do c ume nt, inc luding a ny o b ta ine d fro m e xte rna l da ta so urc e s, ha s no t b e e n ve rifie d . T he info rma tio n a nd

  • pinio ns in this pre se nta tio n a re sub je c t to c ha ng e witho ut no tic e a nd the RE

I T Ma na g e r is unde r no o b lig a tio n to upda te o r ke e p c urre nt the info rma tio n c o nta ine d in this pre se nta tio n. No re pre se nta tio n o r wa rra nty, e xpre ss o r implie d is ma de a s to , a nd no re lia nc e sho uld b e pla c e d o n, the fa irne ss, a c c ura c y, c o mple te ne ss o r c o rre c tne ss o f the info rma tio n o r o pinio ns c o nta ine d he re in. I t is no t the inte ntio n to pro vide , a nd yo u ma y no t re ly o n this do c ume nt a s pro viding , a c o mple te o r c o mpre he nsive a na lysis o f the T rust’ s fina nc ia l o r o pe ra tio na l po sitio n. Furthe rmo re , this pre se nta tio n sho uld no t b e c o nstrue d a s le g a l, ta x, inve stme nt, o r o the r a dvic e . No ne o f the RE I T Ma na g e r, the T rust, no r a ny o f the ir re spe c tive a ffilia te s, a dviso rs o r re pre se nta tive s sha ll b e he ld lia b le fo r a ny d a ma g e s, lo sse s o r e xpe nse s o f a ny kind, whe the r dire c t, indire c t, spe c ia l, c o nse q ue ntia l o r inc ide nta l, a rising o ut o f o r in c o nne c tio n with the pre se nta tio n. I n this re g a rd , a ll wa rra ntie s o r re pre se nta tio ns o f a ny kind, whe the r e xpre sse d o r implie d b y la w, e q uity o r sta tute s, a re e xc lude d to the e xte nt pe rmissib le und e r the a pplic a b le la w. All lia b ilitie s wha tso e ve r a rising fro m o r inc ide nta l to the do c ume nt a re he re b y e xpre ssly disc la ime d. Ce rta in info rma tio n a nd sta te me nts ma de in this pre se nta tio n c o nta in fo rwa rd-lo o king sta te me nts. All fo rwa rd-lo o king sta te me nts a re b a se d o n c urre nt e xpe c ta tio n o f future e ve nts a nd a re sub je c t to a numb e r o f fa c to rs tha t c o uld c a use a c tua l re sults to diffe r ma te ria lly fro m tho se de sc rib e d in the fo rwa rd-lo o king sta te me nts. Ca utio n sho uld b e ta ke n with re spe c t to suc h sta te me nts a nd yo u sho uld no t pla c e und ue re lia nc e

  • n a ny suc h fo rwa rd-lo o king sta te me nts.

T his do c ume nt do e s no t c o nstitute a pro spe c tus, no tic e , c irc ula r, b ro c hure o r a dve rtise me nt o ffe ring to se ll o r inviting o ffe rs to a c q uire , p urc ha se

  • r sub sc riptio n fo r a ny units (“Units”) o r o the r se c uritie s o f the T
  • rust. T

he va lue o f Units a nd the inc o me fro m the m, if a ny, ma y fa ll a s we ll a s rise fro m time to time . Units a re no t o b lig a tio ns o f, d e po sits in, o r g ua ra nte e d b y the RE I T Ma na g e r, the T rust, no r a ny o f the ir re spe c tive a ffilia te s, a dviso rs o r re pre se nta tive s. An inve stme nt in Units o r o the r se c uritie s o f the T rust is sub je c t to inve stme nt risks, inc luding the po ssib le lo ss o f the princ ipa l a mo unt inve ste d. I t is inte nde d tha t ho lde rs o f Units ma y o nly d e a l in the ir Units thro ug h tra ding o n the Sto c k E xc ha ng e o f Ho ng K

  • ng

a nd inve sto rs ha ve no rig ht to re q ue st the RE I TMa na g e r to re de e m the ir Units. L isting sta tus do e s no t g ua ra nte e a liq uid ma rke t fo r the Units. All c o p yrig ht, pa te nt, inte lle c tua l a nd o the r pro pe rty rig hts in info rma tio n c o nta ine d he re in is o wne d b y the RE I TMa na g e r o r o the r third pa rtie s. No rig hts o f a ny kind a re lic e nse d o r a ssig ne d o r sha ll o the rwise pa ss to pe rso ns a c c e ssing suc h info rma tio n. Witho ut the e xpre sse d writte n pe rmissio n o f the RE I T Ma na g e r unde r no c irc umsta nc e s sho uld info rma tio n c o nta ine d he re in o r a ny pa rt o f it b e q uo te d , re pro d uc e d , re distrib ute d o r tra nsmitte d in a ny fo rm, b y a ny me a ns, e le c tro nic o r o the rwise .

Importa nt Notic e

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SLIDE 22

22

Appe ndix: Impa c ts from COVID- 19 Affe c te d Ope ra tions

Var ious Gove r nme nt Re gulations on Soc ial Distanc ing

  • Re nta l c o nc e ssio n a nd o the r re lie f we re g ra nte d o n a c a se -b y-c a se b a sis

I nc luding re nt re duc tio n, re nt de fe rra l, le a se re struc turing , pro mo tio n c o upo ns e tc .

  • Stra te g ic pa rtne rship with Unio n Me dic a l He a lthc a re e nha nc ing syne rg y with te na nts

Re sta ura nt c a pa c ity / re stric tio ns Ba r c lo sure F itne ss c e ntre c lo sure Be a uty c e ntre c lo sure Ma r 28 Apr Cine ma / Ga me c e ntre c lo sure Ma y

July – Aug Apr – May Mar – May Mar – Jun Mar – May Apr – May

Wor king Shoulde r to Shoulde r with T e nants

July – Aug

S

  • urc e :

Ho ng Ko ng Go ve rnme nt, RT HK

Jul

July – Aug July – Aug July – Aug

Jun Aug