Strategic Hospitality Extendable Freehold and Leasehold Real Estate - - PowerPoint PPT Presentation

Strategic Hospitality Extendable Freehold and Leasehold Real Estate Investment Trust

Monday, May 29th 2018

Strategic Property Investors Company Limited Proprietary Information

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Presenters

• Mr. Patan Somburanasin

Managing Director

• Mr. Deepong Sahachartsiri

Chief Financial Officer

This Presentation was made Exclusively for the SET Opportunity of the 29th of May 2019 External / Non-confidential / Strategic Property Investors Company Limited Proprietary Information

Agenda

Section 1 Strategic Property Investors at a Glance Section 2 Presentation of SHREIT Section 3 Financial Performance Section 4 Establishing a Regional Network in the ASEAN Section 5 ASEAN’ Expansion as Key Driver for Growth

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This Presentation was made Exclusively for the SET Opportunity of the 29th of May 2019 External / Non-confidential / Strategic Property Investors Company Limited Proprietary Information

Strategic Property Investors at a Glance

Section 1

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Snapshot of Strategic Property Investors

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1

Strategic Property Investors (“SPI”) is a unique and innovative REIT Management platform based in Thailand

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An independent REIT Manager with ability to acquire assets internationally

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A multi-sponsor REIT that leverages the strength of unique assets internationally through regulated vehicle for operational transparency

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It currently manages the first diversified international REIT listed on the Stock Exchange of Thailand: Strategic Hospitality REIT (“SHREIT”)

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Experienced Management Team with a Proven Track Record

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 Currently the Head of International

Business Development at Central Group

 Previously the Head of Issuer & Listing

Division at The Stock Exchange of Thailand

 Attended the Advanced Management

Program (AMP) at Harvard Business School and Graduated with a Master of Engineering Degree from Purdue University

Mr Chanitr Charnchainarong Chairman Independent Director

 Previously the Managing Director and

Head of Asia Pacific Real Estate, Gaming and Hospitality Investment Banking at Barclays. Held the same role at Lehman Brothers Asia and BNP Paribas

 Bachelor of Commerce (Accounting and

Finance) and Bachelor of Laws (with Honors), Monash University, Australia

Mr James Lim Executive Director

 Over 20 years of experience in Real

Estate and REIT/PFPO, including real estate investment, property development and management

 MBA in Finance from Southern Illinois

University at Carbondale, USA and B.Eng in Electronic Engineering from King Mongkut Institute of Technology Lardkrabang, Thailand

Mr Patan Somburanasin Managing Director Mr Deepong Sahachartsiri Chief Financial Officer

 Over 10 years of experience in Real

Estate and REIT, including property investment, development and management, transaction structuring and legal and finance

 MBA in Finance and Bachelor of

Accounting (Cost Accounting) from the University of Thai Chamber of Commerce, Thailand

Ms Warittha Lerttiwakorn Head of Capital Investments

 Founder, CEO and President of

Ananda Developments (main board listed company)

 Pioneer of the mass transit linked

residential strategy in Bangkok

 Bachelor of Economics at Berkeley

and Masters of Accounting and Finance at LSE

Mr Chanond Ruangkritya Non-Executive Director

 CEO of Hua Seng Heng Group

(Thailand’s largest gold trading company and one of the largest in ASEAN)

 Bachelor of Science at University of

Washington and MBA degree at Sasin Graduate Institute of Business Administration

Mr Tanarat Pasawongse Independent Director

 More than 10 years in Finance at top

positions including Group CFO of a listed

• company. International experience

across ASEAN

 Bachelor of Architecture from

Kingmongkut Institute of Technology (Thailand); Bachelor of Laws Sukhothai Thammathirat Open University (Thailand); MBA from Thammasat University (Thailand).

 Successfully founded and managed

companies in the ASEAN. Set up banks across Africa, Latin America and Asia. Held leadership roles at a publicly listed company

 Bachelor’s Degree in International

Business from Institut de Preparation a l’Administration et la Gestion (France); Master’s in Geopolitics and PhD courses taken from the University of Paris (France)

• Mr. Christophe

Forsinetti Executive Director

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Key Initiatives

Initial Focus on ASEAN Develop Strong Connectivity with Leading Regional and Global Vendors Identify Cross Border quality Assets Strategy to Grow the Portfolio Support Effort with International M&A and Capital Markets Expertise

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Presentation of SHREIT

Section 2

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Balanced portfolio of geographically diversified, premium and well-positioned hospitality assets

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Operated and managed by highly reputable specialists and professionals from asset to REIT level Unparalleled platform for organic and inorganic growth Robust return and uncorrelated to Thailand tourism industry

SHREIT Snapshot: Thailand’s First International Hospitality REIT

Note: (1) As of 5/27/2017

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List of Major Shareholders

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No Name Number of Units % 1 Pt Agung Podomoro Land Tbk 100,139,500 28.4 2 Gic Private Limited 68,652,800 19.5 3 FWD Lile Insurance Public Company Limited 30,000,000 8.5 4

• Mr. Chanond Ruangkritya

16,000,000 4.5 5 Jpmorgan Thailand Fund 13,721,900 3.9 6 B Senior Citizen Mixed Fund 13,624,000 3.9 7 Six Sis Ltd 8,109,000 2.3 8

• Mrs. Darika Punnagun

8,000,000 2.4 9 Bualuang Income Fund 7,040,000 2 10

• Mr. Tanarat Pasawongse

6,800,000 1.9 Total 272,087,200 77.113

Financial Performance

Section 3

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159 M 153 M 150 M 152 M 154 M Q1'2018 Q2'2018 Q3'2018 YE'2018 Q1'2019 106 M 99 M 95 M 98 M 102 M Q1'2018 Q2'2018 Q3'2018 YE'2018 Q1'2019

264,684 (1,034,665) 1,251,777 3,839,407 2,048,740 (2,000,000) (1,000,000)

• 1,000,000

2,000,000 3,000,000 4,000,000 5,000,000 Q1'2018 Q2'2018 Q3'2018 YE'2018 Q1'2019

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Net Investment Income (in USD) Net Assets (in USD) Total Assets (in USD)

Financial Performance 1

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9.65 9.25 9.60 9.05 6.85 0.15 0.19 0.26 0.00 0.19 0.05 0.1 0.15 0.2 0.25 0.3 6.00 7.00 8.00 9.00 10.00 11.00 12.00 Q1'2018 Q2'2018 Q3'2018 YE'2018 Q1'2019 Unit Price (THB) Total Distribution (THB) 1.03 1.00 1.11 1.00 0.75 0.60 0.70 0.80 0.90 1.00 1.10 1.20 Q1'2018 Q2'2018 Q3'2018 YE'2018 Q1'2019

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Price per NAV in (THB) Unit price vs Distribution per unit (in THB)

Financial Performance 2

This Presentation was made Exclusively for the SET Opportunity of the 29th of May 2019 External / Non-confidential / Strategic Property Investors Company Limited Proprietary Information Source: Company Data

Establishing a Regional Network in ASEAN Region

Section 4

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Selection Criteria for Assets

Assets must have a competitive edge in regard to the market Quality asset with high longevity and low maintenance cost Contributes to the diversification of the portfolio of assets Located in an expanding markets with strong growth potential

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International Operators and Brands Regular and steady income from rents

2 3 4 5 6

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Strong Foothold in the ASEAN

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3

HOTELS

632

GUEST-ROOMS

26,080 sqm

FLOOR AREA

USD 130.7M(1)

ACQUISITION VALUE

USD 143.16M(2)

APPRAISAL VALUE

Map of South East Asia

Key Figures

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SHREIT Assets

Notes:(1)As of December 2017, (2)As of December 2018

Portfolio Overview

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Pullman Jakarta Central Park Capri by Fraser HCMC IBIS HCMC Location Jakarta, Indonesia Ho Chi Minh City, Vietnam Ho Chi Minh City, Vietnam Key Driver Strong cash flow underpinned by domestic consumption RevPAR optimization via long-term and short-term stay The only international branded 3- star hotel in District 7 with growing tourism Leasehold Tenure Freehold 25 Years 25 Years Operating Since 2012 2013 2012 Operator Accor Frasers Accor Star Rating 5 4 3 Rooms 317 175 140(1) Acquisition date 22-Dec-17 22-Dec-17 22-Dec-17 Acquisition price $94.7M $21.00M $15.00M Appraisal as of December 2018 $105.39M $23.40M $15.40M

This Presentation was made Exclusively for the SET Opportunity of the 29th of May 2019 External / Non-confidential / Strategic Property Investors Company Limited Proprietary Information Note:(1)Expansion to 160 rooms under consideration

15M 19M 20M 21M 23M 24M 26M 10 20 30 40 2013 2014 2015 2016 2017F 2018F 2019F

Diversified Customer Mix Of Business, MICE and Leisure

Notes : (1) Based on 7M ‘ 2018 metrics, (2) Majority of Neo Soho Mall retail space is rented by Central Department Store Source: (3) Colliers industry report

• Domestic visitors of up to 39% with a prospect growth of 10% p.a.
• 2nd largest ballroom in Jakarta hosting over 40 weddings per year and with

total ballroom facilities measuring over 8,500 sqm and accommodating up to 8,000 guests

Domestic visitors into Jakarta 2013-2019F (2)

Pullman Jakarta Central Park

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This Presentation was made Exclusively for the SET Opportunity of the 29th of May 2019 External / Non-confidential / Strategic Property Investors Company Limited Proprietary Information

Gross Operating Revenue (GOR)

$17,053,421

Gross Operating Profit (GOP)

$7,397,062

Average Daily Rate (ADR)

$110.3

Occupancy

78.40%

Revenue Per Available Room (RevPar)

$86.5

5-star Hotel in West Jakarta A Growing Customer-base Financial Highlights for 2018

Pullman Jakarta Central Park Neo Soho Mall(3)

Map of the Jakarta Map of the Area

• Adjacent to Podomoro City Super Block (Integrated apartments, Central Park

Mall, Neo Soho Mall and Offices)

• Approximately 30 minutes away from the Central Business District
• Approximately 25 minutes away from Soekarno-Hatta International Airport
• Awarded “Best City Hotel” and “Best Wedding Hotel” -

Indonesia by International Hotel Awards

• Future MRT station to be located within 500m

Collage Restaurant Outside View of the Hotel Deluxe Room with One Queen Bed Main Conference Room

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Pullman Jakarta Central Park

Map of Ho Chi Minh City

Airport/ Business District/Convention Centers Property Location Attraction/Shopping Area ❖ Note : Time displays as approximate driving time

Map of Ho Chi Minh City

CBD Major Shopping Outlet Ibis & Capri SECC

M M M M M B B S S

• 1. The

e one e and d only 4-st star inter erna nation

• nal bran

ande ded d hotel el in Dist strict 7, new urba ban n dist strict of HCMC

Customer Breakdown Hotel Profile

Capri by Fraser, Ho Chi Minh City

Financial Performance in 2018

Gross Operating Revenue (GOR)

$3,337,169

Gross Operating Profit (GOP)

$1,742,493

Average Daily Rate (ADR)

$64.9

Occupancy

73.50%

Revenue Per Available Room (RevPar)

$47.7

▪ Accommodate long-stay residents, providing captive MICE and Business clientele together with customer diversification ▪ Capri’s long stay is dominated by Korean and Japanese clientele from

• ffices nearby

▪ Short stays are driven by SECC activity

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▪ In front of the Saigon Exhibition and Convention Centre (SECC), the dominant exhibition & convention center in HCMC ▪ Surrounded by multi-national offices including Manulife, 3M, IKEA, Unilever, KPMG and Syngenta VN ▪ In-room facilities is fit for long-stay and short-stay (e.g. kitchen, counter bar, living area)

Corporate 86% Leisure 14% S.Korea 38% Japan 22% Asia (Excl. S.Korea, Japan & Taiwan) 19% Taiwan 8% Europe 3% Others 10%

Purpose of Stay Country of Origin

Outside View of the Hotel Standard Bedroom Standard Living Room Kitchen Area with Bar

Asia (excl. China, S.Korea & Vietnam) 50% S.Korea 17% China 13% Vietnam 9% Europe 6% America 4% Others 1% Corporate 31% Leisure 69%

Purpose of Stay

▪ Benefits from the increasing groups and international travelers from China, Hong Kong, Korea, Europe for convention visits ▪ Captures mainly the short-stay tourists ▪ Room rate is lower than Capri ▪ In-room facilities is tailored for short-stays

Customer Breakdown Financial Performance in 2018

Ibis, Ho Chi Minh City

Gross Operating Revenue (GOR)

$1,936,604

Gross Operating Profit (GOP)

$932,839

Average Daily Rate (ADR)

$48.6

Occupancy

64.60%

Revenue Per Available Room (RevPar)

$31.4 Country of Origin

▪ The first international branded budget hotel in HCMC and the only international branded 3 star hotel in District 7 ▪ Within walking distance to global corporate offices, hospitals, and shopping malls ▪ Approximately 15 minutes away from the CBD and 25 minutes away from Saigon Square 22

This Presentation was made Exclusively for the SET Opportunity of the 29th of May 2019 External / Non-confidential / Strategic Property Investors Company Limited Proprietary Information

Hotel Profile

Outside View of the Hotel Standard Room with Two Single Beds Standard Room with One Queen Bed Ibis Restaurant and Bar

ASEAN’ Expansion as Key Driver for Growth

Section 5

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This Presentation was made Exclusively for the SET Opportunity of the 29th of May 2019 External / Non-confidential / Strategic Property Investors Company Limited Proprietary Information

202,776 216,675 237,111 256,739 277,661 332,000 370,000 420,000 508,000

100,000 200,000 300,000 400,000 500,000 600,000

59.9% 56.9% 58.3% 59.7% 58.8% 69.0% 55.0% 57.0% 56.5%

0% 10% 20% 30% 40% 50% 60% 70% 80% 2008 2009 2010 2011 2012 2014 2015 2016 2017

Source: (1) World Bank, (2) Pacific Asia Travel Association Vietnam Chapter.

4,236,000 3,747,000 6,014,000 7,572,000 7,944,000 10,013,000 12,922,000

2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000

Outlook – Tourism in Vietnam

375 381 441 442 490 159 187 215 230 261 64 72 91 107 118

100 200 300 400 500 600 2013 2014 2015 2016 2017 3-star 4-star 5-star

International Tourist Arrivals (1) Number of Rooms (2) Average Occupancy Rate(3) Number of Hotels by Hotel Segment(2) 24

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5,506,000 6,324,000 7,650,000 8,802,000 10,407,000 11,519,000

2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000

49.7% 48.8% 50.6% 52.8% 53.1% 52.7% 52.7% 53.0% 53.7%

46% 47% 48% 49% 50% 51% 52% 53% 54% 55% 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: (1) World Bank; (2) Statistics Indonesia, (3) CEIC

272,939 285,530 325,218 353,138 405,778 469,277 507,201 527,176

200,000 250,000 300,000 350,000 400,000 450,000 500,000 550,000

13,751 13,932 14,587 15,283 15,998 16,685 17,484 18,353 18,829

10,000 12,000 14,000 16,000 18,000 20,000 2008 2009 2010 2011 2012 2013 2014 2015 2016

Outlook – Tourism in Indonesia

Average Occupancy Rate(3) Number of 4-star Hotels(2) Number of Rooms (2) International Tourist Arrivals(1)

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Outlook – Tourism in ASEAN

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ASEAN, 45.2% China, 12.4% European Union, 8.5% Republic of Korea, 4.8% Japan, 4.6% Australia, 4.2% Rest of the world, 20.4%

Top ten country/regional sources of visitors to ASEAN(1)

16 18 19 17 22 23 25 27 30 32 35 38 40 46 49 46 47 48 10 20 30 40 50 60 70 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Millions

Number of Intra-ASEAN Tourists(2)

Note: (1) 2015 Source: (2) ASEAN

▪ Commitment by the ASEAN to be by 2025, a quality tourism destination offering a unique, diverse experience through: (2)

▪

Intensification of Promotion and Marketing

▪

Diversification of Tourism Product

▪

Tourism Investments

▪

Implementation and Expansion of Connectivity and Destination Infrastructure

▪

Implementing and Expanding ASEAN Tourism Standards for Facilities, Services and Destinations

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THANK YOU

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28 Contact

• Mr. Deepong Sahachartsiri

Chief Financial Officer deepong.s@sp-investors.com Headquarters Strategic Property Investors Unit 2401, Empire Tower Sathorn Bangkok Thailand 10120 www.sh-reit.com www.sp-investors.com

• Mr. Anis Landie

Research Analyst anis.l@sp-investors.com

Disclaimer

These slides may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of uncertainties, risks and assumptions. Representative examples of these factors include but are not limited to general market and economic conditions, interest rate trends, competition from other real estate investors, changes in operating expenses including employee wages and benefits, changes in government policies, and the continued availability of financing in the amounts and terms necessary to support future business. You are cautioned not to place undue reliance on the forward-looking statements in these slides, which are based on the current view of management on future events. Information from external sources in these slides has not been independently verified by us nor have the external sources quoted consented to the inclusion of the information.

This Presentation was made Exclusively for the SET Opportunity of the 29th of May 2019 External / Non-confidential / Strategic Property Investors Company Limited Proprietary Information