6 20 Pemulwuy, Sydney One@Changi City - Ascendas...

Investor Presentation January 2016

One@Changi City

A‐REIT is managed by Ascendas Funds Management (S) Ltd, a member of Ascendas‐Singbridge Group

6‐20 Clunies Ross Street, Pemulwuy, Sydney

2

Overview of A‐REIT

Key Highlights for 3Q FY15/16

Financial Performance

Investment Management

Capital Management

Asset Management

Portfolio Update

Portfolio Resilience

Market Outlook

A‐REIT’s Strengths

Agenda

3

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$9.4bn (US$6.6bn) as at 31 December 2015 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, 26 properties in Australia

and 2 business park properties in China; Tenant base of around 1,470 local and international companies

4

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

Sub‐sector Business Parks (BP) Science Parks (SP)

Portfolio GFA (sqm) 338,652 340,890

% of A‐REIT‐ by GFA‐ by asset value

9%14%

9%16%

Characteristics Zone is defined by Govt Master Plan.Suburban office and corporate HQbuildings. Manufacturing activities are notallowed.

Zone is defined by Govt Master Plan. R&Dspace equipped with building specificationsto facilitate R&D works. Manufacturingactivities are not allowed.

Typical tenants Regional corporate HQs of industrialcompanies and MNCs; backroom supportoffice of financial institutions; IT firms, etc.

Companies in research & development invarious fields including life sciences, foodand chemicals, data analysis and IT researchand development, etc.

5


Sub‐sector Integrated Development, Amenities & Retail (IDAR)

Hi‐Specs Industrial (Hi‐S) Data Centres (DC)

Portfolio GFA (sqm) 157,299 526,578 109,756


4%7%

15%16%

3%6%

Characteristics Two or more types of space within oneintegrated development such as businessspace, retail and warehousing facility.Typically larger scale developments.Possess requisite infrastructure andamenities to meet modern businessneeds.

Vertical corporate campus withhigher office content combined withhigh specifications mixed‐useindustrial space.

Building and M&Especifications (eg raised floor,high power capacity) toenable space to be used asdata centres.

Typical tenants MNCs and corporates that desire qualityspace at prominent location withcomprehensive range of amenities tohouse their corporate HQ and conducttheir businesses under one roof.Companies in the IT services, fast movingconsumer goods, engineering,warehousing and retail activities.

Multi‐national industrial companiesand large local companies that wishto co‐locate their HQ functions withmanufacturing services,engineering, R&D activities.

Multi‐national companiesproviding data centre servicessuch as cloud computing anddata storage.

6


Sub‐sector Light Industrial (LI) Flatted Factories (FF) Logistics & Distribution Centres (Log)

Portfolio GFA (sqm) 370,283 197,143 853,837


10%7%

5%4%

24%15%

Characteristics Low office content combined withmanufacturing space.

Stacked‐up manufacturing spaceused for general manufacturing.Ground floor space tends tocommand higher rental rate due tohigher floor loading and betteraccessibility.

Warehouses with high floorloading and floor height. Welllocated near major transportnodes e.g. airport, seaport &expressways. Majority are singleor multi‐storey facilities withvehicular ramp access

Typical tenants Large local companies whichhouse their light manufacturingactivities and HQ operationswithin a single facility. Highermanufacturing content comparedto Hi‐Specs Industrial buildings.

Local small & medium‐sizeenterprises engaged in variousmanufacturing activities. SomeMNC manufacturers also housetheir manufacturing operations insuch buildings.

3rd party logistics providers,manufacturers, distributors andtrading companies

7

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

8

Australia Portfolio – 26 Logistics Properties

Brisbane (155,966 sqm)

Sydney (198,129 sqm)

Melbourne (255,956 sqm)

Perth (20,895 sqm)

17. 14‐28 Ordish Road18. 35‐61 South Park Drive19. 2‐34 Aylesbury Drive20. 81‐89 Drake Boulevard21. 676‐698 Kororoit Creek Road

10. 62 Sandstone Place11. 92 Sandstone Place12. 62 Stradbroke Street13. 82 Noosa Street14. 77 Logistics Place15. 99 Radius Drive16. 2‐56 Australand Drive

26. 35 Baile Road

22. 700‐718 Kororoit Creek Road23. 9 Andretti Court24. 31 Permas Way25. 162 Australis Drive

1. 1A & 1B Raffles Glade 2. 7 Grevillea Street 3. 5 Eucalyptus Pace4. Lot 4 Honeycomb Drive 5. 1‐15 Kellet Close 6. 94 Lenore Drive 7. 484‐490 Great Western Highway8. 494‐500 Great Western Highway9. 1 Distribution Place, Seven Hills

By rental income

Note: The acquisition was completed on 18 November 2015.

Portfolio GFA (sqm) 630,947


18%12%

9

China: Suburban Business Park Properties to Cater to Growing DemandSub‐sector Business Park (China)

Number of Properties

2

Portfolio GFA (sqm) 111,307


3%3%

Location Tier 1 cities: e.g. Shanghai &Beijing

Characteristics Suburban office, corporateHQ buildings.

Well located and within easyaccess to publictransportation networks.

Typical tenants Higher value‐addedindustries such as IT andsoftware companies as wellas corporate HQs of multi‐national companies andlarge local corporations.

A‐REIT City @Jinqiao

Ascendas Z‐link

10

A‐REIT’s Steady Growth since ListingTo

tal U

nitholde

rs’

Fund

s (S$m)

Amou

nt Available

for D

istribution (S$m

)

11





Capital Management

Asset Management

Portfolio Update


Market Outlook


Agenda

12


Total amount available for distribution rose by 11.7% y‐o‐y toS$96.6m

DPU grew 9.9% y‐o‐y to 3.946 cents from 3.590 cents in 3QFY14/15

Key performance drivers were:• Contributions from new properties: The Kendall (acquired in March

2015) and the Australian portfolio (acquired in November 2015)• Contribution from DBS Asia Hub Phase 2 (completed in June 2015)• Improvement in occupancy at Aperia (92.7% from 53.6% in 3Q

FY14/15)• Positive rental reversion of 7.3% achieved over preceding contracted

rental rates

13


Investment highlights• About S$1.5 billion of acquisitions in Australia and Singapore

Completed acquisitions of 26 logistics properties in Australia for A$1,013m

Proposed acquisitions of

– One@Changi City in Singapore for S$420m

– 6‐20 Clunies Ross Street in Australia for A$76.6m

• S$35.7m of asset enhancement work at 40 Penjuru Lane

Proactive Capital Management

• Moody’s re‐affirmed A‐REIT’s A3 credit rating

• Healthy aggregate leverage of 37.3% with debt maturity of 3.5 years

• 73.8% of borrowings is hedged for an average term of 3.4 years

Note: Based on illustrative exchange rate of A$1.00 = SS$1.00

14





Capital Management

Asset Management

Portfolio Update


Market Outlook


Agenda

15

3Q FY15/16 vs 3Q FY14/15(S$’000) 3Q FY15/16(1) 3Q FY14/15(1)

% fav/ (unfav)

Gross revenue(2) 193,812 171,734 12.9

Net property income(2) 142,168 114,599 24.1

Total amount available for distribution 96,574 86,439 11.7

DPU (cents)(3)(4) 3.946 3.590 9.9

(1) 130 properties as at 31 December 2015 and 106 properties as at 31 December 2014, including 1 property which is classifiedunder finance lease as at both reporting dates.

(2) Higher revenue and NPI mainly due to contributions from (i) the acquisition of the Australian Portfolio and the Kendall, (ii)higher occupancy at certain properties, (iii) contributions from completed asset enhancement initiatives and (iv) positiverental reversion on certain renewals.

(3) Includes taxable (3Q FY15/16: 3.810 cents, 3Q FY14/15: 3.560 cents), tax exempt (3Q FY15/16: 0.045 cents, 3Q FY14/15:0.030 cents) and capital (3Q FY15/16: 0.091 cents, 3Q FY14/15: nil) distributions.

(4) The base for the computation of the DPU for 3Q FY15/16 included the Units issued pursuant to the preferential offering thatwas announced on 9 December 2015 on the basis of three new Units for every 80 existing Units held as at 30 December2015 at an issue price of S$2.218 per new Unit (the “Preferential Offering”) that was launched on 5 January 2016 and closedon 13 January 2016. The Units issued pursuant to the Preferential Offering were issued on 15 January 2016 and rank paripassu in all respects with the existing Units in issue on the day immediately prior to the date of issuance, including the rightto A‐REIT’s distributable income in respect of the period from 18 December 2015 to 31 March 2016, as well as alldistributions thereafter.

16

3Q FY15/16 vs 2Q FY15/16(S$’000) 3Q FY15/16(1) 2Q FY15/16(1)

% fav/ (unfav)

Gross revenue(2) 193,812 182,625 6.1

Net property income(2) 142,168 123,803 14.8

Total amount available for distribution(5) 96,574 100,159 3.6

DPU (cents)(3)(4)(5) 3.946 4.160 5.1

Normalised DPU (cents)(5) (for illustration only) 3.946 3.889 1.5

(1) 130 properties as at 31 December 2015 and 104 properties as at 30 September 2015, including 1 property which is classifiedunder finance lease as at both reporting dates.

(2) Higher revenue and NPI mainly due to from the Australian Portfolio that was acquired during the quarter.(3) Includes taxable (3Q FY15/16: 3.810 cents, 2Q FY15/16: 4.095 cents), tax exempt (3Q FY15/16: 0.045 cents, 2Q FY15/16:

0.046 cents) and capital (3Q FY15/16: 0.091 cents, 2Q FY15/16: 0.019) distributions.(4) The base for the computation of the DPU for 3Q FY15/16 included the Units issued pursuant to the Preferential Offering. The

Units issued pursuant to the Preferential Offering were issued on 15 January 2016 and rank pari passu in all respects with theexisting Units in issue on the day immediately prior to the date of issuance, including the right to A‐REIT’s distributableincome in respect of the period from 18 December 2015 to 31 March 2016, as well as all distributions thereafter.

(5) Lower total amount available for distribution and DPU mainly due to a one‐off distribution of taxable income from operationsof S$6.5 million (DPU impact of 0.271 cents) in 2Q FY15/16 in relation to a rollover adjustment from prior years arising froma ruling by IRAS on the non‐deductibility of certain upfront financing fees incurred in FY09/10 for certain credit facilities.Excluding the effects of the above total amount available for distribution and DPU would have increased by 3.1% and 1.5%respectively instead of negative 3.6% and 5.1% above.

17





Capital Management

Asset Management

Portfolio Update


Market Outlook


Agenda

18

Investment Highlights in 3Q FY15/16

CountryPurchase

Consideration/ Value (S$m)

Completion date/Estimatedcompleted date

Acquisitions 1,509.6

26 logistics properties in Sydney, Melbourne, Brisbane & Perth Australia 1,013.01

10 properties –23 Oct

16 properties –18 Nov

6‐20 Clunies Ross Street, Pemulwuy, Sydney Australia 76.61 Expected in 1Q 2016

One@Changi City, Changi Business Park Singapore 420.0 Expected in 1Q

20162

Asset Enhancements Completed 35.740 Penjuru Lane 35.7 Oct 2015

1 Based on illustrative exchange rate of A$1.00 = SS$1.002 Subject to Unitholders’ approval at the Extraordinary General Meeting

19

Acquisition Completed:26 properties in Australia

26 modern logisticsproperties located in keycities: Sydney, Melbourne,Brisbane and Perth

GFA 630,947 sqm ranks A‐REIT as 8th largest industriallandlord in Australia

Healthy occupancy (94.4%);Long WALE (5.6 years); Triplenet leases

A‐REIT Purchase Consideration

A$1,013m (S$1,013m)

Acquisition Fee to Manager

A$10.13m (S$10.13m) to be paid inunits

Other Transaction Costs A$54.7m (S$54.7m) includes stampduty, professional advisory fees etc.

Total Acquisition Cost A$1,077.8m (S$1,077.8m)

Vendors Real estate arm of GIC & Frasers Property Australia Pty Limited

Land Tenure Freehold

Total Gross Floor Area (“GFA”)

630,947 sqm

Weighted Average Lease Expiry (“WALE”)

5.6 years (as at 31 Dec 2015)

Occupancy Rate 94.4%

No. of leases 30

Lease structure Tenant pays all statutory outgoings & operating expenses

Note: Based on illustrative exchange rate of A$1.00 = SS$1.00

20

Proposed Acquisition: 6‐20 Clunies Ross Street, Pemulwuy, Sydney, Australia

Purchase Consideration A$76.6m (S$76.6m)

Acquisition fee to Manager

A$0.766m (S$0.766m)

Stamp Duty and Other transaction costs

Approximately A$4.596m (S$4.596m)

Total Acquisition Cost A$82.0m (S$82.0m)

Vendor Deka Australia One GmbH

Land Tenure Freehold

Gross Floor Area (“GFA”) 38,579 sqm

WALE 6.1 years

Occupancy Rate 100%

No. of leases 2

Lease structure Tenant pays all statutory outgoings & operating expenses

A modern high clearance warehouse and afreestanding two‐storey office/laboratoryfacility.

Strategically located within Sydney’spremium logistics and distribution hub(Holroyd Local Government Area and theGreystanes Industrial precinct) and is approx.28km west of Sydney CBD with good accessto major M4 and M7 motorways.

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

Note: Based on illustrative exchange rate of A$1.00 = S$1.00

21

Proposed Acquisition: One@Changi City, SingaporePurchase Consideration

S$420.0 million

Acquisition fee to Manager

S$4.2 million

Stamp Duty and Other transaction costs

Approximately S$14.7 million (including stamp duty of about S$12.6 m)

Total Acquisition Cost S$438.9 million

Vendor Ascendas Frasers Pte Ltd

Valuation S$436.6 million by DTZS$439.0 million by Knight FrankAverage = S$437.8 million

TOP Date 2 Nov 2012

Land Tenure 53 years remaining (no annual land rent payable)

GFA 71,158 sqm

NLA 63,106 sqm

WALE 4.36 years (as at 31 Dec 2015)

Occupancy Rate 97.9% (as at 31 Dec 2015)

One@Changi City is a 9‐storey, highquality multi‐tenanted business parkbuilding.

Located next to Expo MRT station.The property has been certifiedGreen Mark Gold Plus by theBuilding & Construction Authority(BCA).

1 Changi Business Park Central 1

22

Completed new block

Warehouse space in new block

Asset Enhancement Completed:40 Penjuru Lane

Completion October 2015

Description Located in close proximity to JurongPort, PSA ports and Jurong Island, andeasily accessible via AYE

AEI: Increased the plot ratio from 2.0xto 2.34x by building a new 4‐storeywarehouse block

GFA 24,062 sqm of additional GFA

Total GFA: 162,421 sqm

Occupancy Rate

66.9% for entire property (as at 31 Dec2015)• Existing block: 78.7%• New block: 0% (53% of space under

negotiations)

Cost S$35.7 million

23





Capital Management

Asset Management

Portfolio Update


Market Outlook


Agenda

24

Healthy Balance Sheet Aggregate leverage increased to 37.3% and is expected to maintain at around this

level after the preferential offering and funding of proposed acquisitions Strengthened balance sheet with equity funds raised:

• S$300.0m fixed‐rate perpetual securities (4.75% pa)• S$200.1m private placement (@$2.223 per unit)• S$144.8m preferential offering; Units issued on 21 Jan 16 (@$2.218 per unit)

(1) Excludes fair value changes and amortised costs. Borrowings denominated in foreign currencies are translated at the prevailing exchange ratesexcept 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(3) 2,569 m units if units issued on 21 Jan 2016 under preferential offering are included

(S$m) As at 31 Dec 15

As at 30 Sep 15

Total debt (1) 3,491 2,868

Total assets 9,354 8,285

Aggregate leverage 37.3% 34.6%

Unitholders' funds 5,161 5,053

Net asset value per Unit 206 cents 210 cents

Adjusted net asset value per Unit (2) 202 cents 202 cents

Units in issue (m) 2,504 (3) 2,408

25

367

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

165*

‐200

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

150*

75

293

400 428

‐ ‐ ‐ ‐ ‐ ‐

‐

‐

248

95 100

62

350

‐154

‐103

‐

300

‐

‐‐

‐

‐

‐

‐

‐

‐

0

100

200

300

400

500

600

700

800

2016 2017 2018 2019 2020 2021 2022 2023 2024 2029Revolving Credit Facilities Committed Revolving Credit FacilitiesTerm Loan Facilities Medium Term NotesExchangeable Collateralised Securities

Well‐spread Debt Maturity Profile

Diversified Financial

Resources

SGD (m

illion)

Well‐spread debt maturity with the longest debt maturing in 2029

Completed syndicated secured term facility in Nov 2015 to partfinance the acquisition of 26 logistics properties in Australia

Average debt maturity: 3.5 years

10%

10%

39%

32%

9%

* S$150m term loan facility and S$165m committed revolving credit facility will expire in August and November 2016

26

As at 31 Dec 15

As at 30 Sept 15

Aggregate Leverage 37.3% 34.6%

Unencumbered properties as % of total investment properties(1) 75.7% 86.2%

Interest cover ratio 5.9 x(2) 6.2 x(3)

Total debt / EBITDA 7.6 x(2) 6.4 x(3)

Weighted average tenure of debt outstanding (years) 3.5 3.6

YTD weighted average all‐in borrowing cost 2.72%(2) 2.73%(3)

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

Moody’s re‐affirmed A‐REIT credit rating of A3 Robust indicators enable A‐REIT to borrow at competitive costs

(1) Total investment properties exclude properties reported as finance lease receivable(2) Based on 9 months period ended 31 December(3) Based on 6 months period ended 30 September

Key Funding Indicators

27

Prudent Interest Rate Risk Management

Increase in interest rates

Decrease in distribution

(S$m)

Change as % of FY14/15 distribution

Pro forma DPU impact (cents)(1)

50 bps 4.6 1.3% 0.18

100 bps 9.2 2.6% 0.37

150 bps 13.7 3.9% 0.55

200 bps 18.3 5.2% 0.73

73.8% of borrowings is hedged for an average term of 3.4 years 50 bps increase in interest rate is expected to have an annualised pro

forma impact of S$4.6 million decline in distribution or 0.18 cent in DPU

(1) Based on number of units in issue as at 31 December 2015

28

Foreign Exchange Risk Management Overall 83% of overseas investment costs FX exposure is naturally hedged

Australia, 84%

China, 16%

60%

23%

17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Cost of investments ofoverseas portfolio

Funding for overseas portfolio

via SGD fundingvia Perpetual Securities (swapped to AUD)via A$/RMB debt

83%

29





Capital Management

Asset Management

Portfolio Update


Market Outlook


Agenda

30

Overview of Portfolio Occupancy

88.9%94.4%

67.6%

89.2%89.8%

70.6%

89.0%88.1%

59.5%

86.8%

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

Dec‐15 Sep‐15 Dec‐14

N.A.

Gross Floor Area (sqm)

2,894,439 630,947 111,307 3,636,693

Note: The Australia properties were acquired in 3Q FY15/16 (2 phases in Oct 2015 and Nov 2015)

N.A.

31

Singapore occupancy and Multi‐tenant building (MTB) occupancy declined to88.9% and 84.5% mainly due to the addition of a newly completed block at 40Penjuru Lane

Singapore Occupancy

As at 31 Dec 2015 30 Sep 2015 31 Dec 2014

Total Singapore Portfolio GFA (sqm) 2,894,439(1)(2) 2,870,377(1)(2) 2,884,146(1)

Singapore Portfolio occupancy (same store) (3) 90.3% 90.6% 89.2%

Singapore MTB occupancy (same store) (3) 86.1% 86.7% 85.7%

Occupancy of Singapore investments completed in the last 12 months

76.7% 92.0% ‐

Overall Singapore portfolio occupancy 88.9% 89.8% 88.1%

Singapore MTB occupancy 84.5% 85.8% 84.4%

(1) Excludes 2 Senoko South Road which has been decommissioned for asset enhancement works. (2) Excludes BBR Building which was divested in September 2015. (3) Same store occupancy rates for previous quarters are computed with the same list of properties as at 31 Dec 2015, excluding new investments

completed in the last 12 months, divestments and changes in classification of certain buildings from single‐tenant buildings to MTB.

32

30.5%

29.5%

9.8%

7.2%

6.0%

4.1%4.1%

3.7%3.5%1.6%

Others Transport and Storage Precision Engineering

Biomedical Food Products & Beverages Lifestyle and Services

Structural Engineering IT Electronics

General Manufacturing

22.2%

21.2%

15.1%

14.2%

7.1%

6.4%

5.0%3.3%

3.0%2.5%

Singapore: Sources of New Demand Continues to attract demand from a wide spectrum of industries

By NLA

By GrossIncome

Note: There were no new lease in Australia in 3Q FY15/16

33

Singapore: Achieved Positive Rental Reversion

Multi‐tenant properties (1) Net lettable area (sqm)

Vacant space (sqm)

3Q FY15/16 increase in renewal

rates (2)As at 31 Dec 2015

Business & Science Parks 451,443 64,124 8.4%

Hi‐Specs Industrial 332,120 57,718 4.8%

Light Industrial 325,492 31,063 8.6%

Logistics & Distribution Centres ‐ Singapore 528,160 105,841 6.1%

Weighted Average 7.3%

Achieved +7.3% rental reversion for leases renewed in 3Q FY15/16 Positive rental reversion was registered across all segments

(1) A‐REIT’s Singapore portfolio only. There were no renewals in Australia in 3Q FY15/16. (2) Increase in renewal rental rates for leases renewed in 3Q FY15/16 versus previous contracted rates

34

China: Update on Properties

Location Located within ZhongguncunSoftware Park in Haidian District,Beijing

Tenants Higher value‐added industriessuch as IT and softwarecompanies e.g. Baidu, Lite‐On (aTaiwan‐listed electronics co.)

GFA 31,427 sqm

Occupancy 100% (as at 31 Dec 2015)

Other information

Revalued at ~RMB15,300 psm(+11%)

Ascendas Z‐link A‐REIT City @Jinqiao

Location Located in north Jinqiao within theJinqiao Economic and TechnologicalZone, in Shanghai

Tenants Higher value‐added industries suchas IT and software companies aswell as corporate HQs of multi‐national companies and large localcorporations

GFA 79,880 sqm

Occupancy 56.7% (as at 31 Dec 2015) Pre‐commitment: 3.2%

Other information

Revalued at ~RMB 11,300 psm(+2%)

35

Weighted Average Lease Expiry (By gross revenue)

WALE (years) 31 Dec 2015 30 Sep 2015 31 Dec 2014

Singapore 3.5 3.7 3.9

Australia 5.6 ‐ ‐

China 2.5 2.7 3.4

Portfolio 3.7 3.6 3.9

Weighted Average Lease Expiry (WALE) improves to 3.7 years with the addition of longer leases from the Australia

36

2.0% 4.4% 2.0% 1.7% 2.1% 5.2%1.1% 0.8% 1.6% 1.6%

0.5%

4.2%

15.7%18.0%

13.2%

7.0%

4.6%

1.8% 3.4%0.3%

2.7%

0.1%

6.2%

20.1% 20.0%

14.9%

9.1%9.8%

2.9%4.2%

1.9%

4.3%

0.4% 0.9% 0.6%1.1%

3.4%

0%

5%

10%

15%

20%

25%

% of A

‐REIT Gross Reven

ue

Multi‐tenanted Buildings

Single‐tenanted Buildings

Breakdown of expiring leases for FY15/16 and

FY16/17

Portfolio Lease Expiry Profile (as at 31 December 2015)

Portfolio weighted average lease to expiry (WALE) of 3.7 years Lease expiry is well‐spread, extending beyond 2029 About 6.2% of gross revenue is due for renewal in balance of FY15/16

as at 31 December 2015 Weighted average lease term of new leases signed in 3Q FY15/16 was

3.1 years accounting for about 2.7% of total gross revenue for 3QFY15/16

7%

31%

38%

6%

18%

FY15/16

15%

22%

18%18%

5%

16%3%2%

FY16/17

Science ParksBusiness ParksHi‐Specs IndustrialLight IndustrialIDARLogisticsLogistics (Australia)Business Park (China)

37

Singapore: In‐place rent for space due for renewalin FY15/16 and FY16/17 Current market rental rate is above the weighted average passing rental for most

of the multi‐tenant space due for renewal in FY15/16 and FY16/17 Expect moderate positive rental reversion of around mid‐single digit for FY15/16

Left Axis: Right Axis:

** *

* Rates for ground floor space

38

Ongoing Projects: Improve portfolio quality

Value (S$m) Estimated Completion

Development 23.7

Jiashan Logistics Facility 23.7 1Q 2016

Asset Enhancements (AEI) 37.1

The Kendall (New) 1.6 2Q 2016

Acer Building 10.7 2Q 2016

Cintech I to IV 12.7 2Q 2016

2 Senoko South Road 12.1 1Q 2016

Total Development + AEIs 60.8

39

Asset Enhancement (New):The Kendall

Estimated Completion

3Q 2016

Description The Kendall is a 6‐storey buildinglocated within Singapore Science ParkII.

AEI: The enhancement work includesfacade upgrading and improvementworks to the restrooms to enhancemarketabiity.

GFA 20,190 sqm

Occupancy 96.7% (as at 31 Dec 2015)

Cost S$1.6 million

Artist impression of facade

40





Capital Management

Asset Management

Portfolio Update


Market Outlook


Agenda

41

Well Diversified Portfolio By value of Investment Properties

Single‐tenant buildings

Multi‐tenant buildings Notes:• Multi‐tenant buildings account for 70.7% of A‐REIT’s portfolio by asset value as at 31

December 2015• About 59% 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.

Business Park, 14%

Science Park, 16%Hi‐Specs

Industrial, 16%

Data Centres, 6%

Light Industrial, 7%

Flatted Factories, 4%

Integrated Development, Amenities & Retail, 7%

Logistics & Distribution Centres, 15%

Logistics and Distribution Centres

Australia, 12%

AREIT Beijing, 1%AREIT

Shanghai, 2%

Singapore, 85%

Australia, 12%

China, 3%

88.1%

11.9%

Business Park

77.1%

22.9%

Hi‐Specs Industrial

56.5%

43.5%Light

Industrial

70.6%

29.4%Logistics

& Distribution

‐SG

13.0%

87.0%

Logistics &

Distribution ‐AUS

76.7%

23.3%

Integrated Development, Amenities &

Retail

90.5%

9.5%

Science Park

42

Tenants’ Industry DiversificationBy Monthly Gross Revenue

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

More than20 industries

16.0%0.6%0.8%0.8%0.9%1.5%1.5%1.5%1.5%1.6%

2.4%2.7%

5.3%6.8%

7.4%7.9%

9.1%9.2%

10.8%11.7%

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

Others

Rubber and Plastic Products

Fabricated Metal Products

Printing & Reproduction of Recorded Media

Repair and Servicing of vehicles

Construction

Textiles & Wearing Apparels

Hotels and restaurants

Chemical

Medical, Precision & Optical Instruments, Clocks

Healthcare Products

Food Products & Beverages

Life Science

Financial

Electronics

Telecommunication & Datacentre

M&E and Machinery and Equipment

Information Technology

Distributors, trading company

3rd Party Logistics, Freight Forwarding

43

Low Exposure to Manufacturing

10.7% of NLA occupied by tenants engagedin 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 consultancyservices as well as transport & storage

Tenants’ businessactivities by

NLA

As at 31 December 2015

10.7%

89.3%

Manufacturing area Non‐manufacturing area

44

Quality and Diversified Customer Base Total customer base of around 1,470 tenants Top 10 customers (as at 31 December 2015) account for about 18.8% of

portfolio gross rental income Security deposits for single‐tenant properties range from 5 to 11 months of

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

rental income5.0%

2.2% 2.1%1.8%

1.6%1.3% 1.3% 1.2% 1.2% 1.1%

SingaporeTelecomm‐unications

Ltd

DBS BankLtd

Citibank,N.A

WestfarmersGroup

CevaLogistics

SiemensPte Ltd

Hydrochem(S) Pte Ltd

BiomedicalSciencesInstitutes(A*Star)

Cold StorageSingapore(1983)Pte Ltd

EquinixSingaporePte Ltd

45

Aperia, 5.7%1, 3, 5 Changi Business Park Crescent, 3.4%Kim Chuan Telecommunication Complex , 2.8%Neuros & Immunos, 2.6%31 International Business Park, 2.5%TelePark, 2.5%40 Penjuru Lane, 2.4%Hyflux Innovation Centre, 2.3%TechPlace II, 2.1%TechPoint, 2.0%Nexus@One North, 1.9%The Galen, 1.9%Pioneer Hub , 1.9%Corporation Place, 1.8%TechPlace I, 1.7%10 Toh Guan Road, 1.7%The Kendall, 1.7%DBS Asia Hub (Phase I & II), 1.6%Techview, 1.6%Techlink, 1.6%The Gemini, 1.5%Siemens Centre, 1.5%The Capricorn, 1.4%AREIT City @ JinQiao, 1.4%Nordic European Centre, 1.4%Ascendas ‐ Z‐Link, 1.3%Changi Logistics Centre, 1.2%FoodAxis @ Senoko, 1.2%Senkee Logistics Hub (Phase I & II), 1.1%The Alpha, 1.1%HansaPoint @ CBP, 1.0%Giant Hypermart, 1.0%Infineon Building, 1.0%Acer Building, 0.9%Honeywell Building, 0.9%Cintech IV, 0.9%138 Depot Road, 0.9%Pacific Tech Centre, 0.9%Others, 33.9%

Diversified Portfolio

No single property accounts for more than

5.7% of A‐REIT’s monthly gross

revenue

46

MTB Occupancy: NPI / DPU Sensitivity

Change in MTB occupancy

Expected change in annualised MTB NPI

(S$m)

Change in portfolio NPI (%)

Impact on full FY DPU (cents)*

+500 bps 26.0 5.0% 1.04+300 bps 15.6 3.0% 0.62+100 bps 5.2 1.0% 0.21‐100 bps ‐6.3 ‐1.2% ‐0.25

‐300 bps ‐18.8 ‐3.6% ‐0.75

‐500 bps ‐31.4 ‐6.0% ‐1.25

100 bps increase in MTB occupancy is expected to result in a 1.0% increase in portfolio net property income or about 0.21 cents increase in DPU

* Based on number of units in issue as at 31 December 2015

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.

47





Capital Management

Asset Management

Portfolio Update


Market Outlook


Agenda

48

Market Outlook According to Ministry of Trade and Industry's advance estimates, Singapore’s

economy grew 2.0% y‐o‐y in 4Q 2015 and 2.1% y‐o‐y in 2015. 2016 GDP growthforecast is expected to be between 1.0% to 3.0%

JTC industrial property price and rental index declined by 0.3% and 0.8% q‐o‐qrespectively in 3Q 2015

According to the Reserve Bank of Australia, Australia’s GDP growth is forecast to be2% to 3% in 2016

Approximately 6.2% of A‐REIT’s revenue is due for renewal in the balance ofFY15/16 and moderate positive rental reversion can be expected

With 10.8% vacancy in the portfolio, there could be potential upside in netproperty income when some of these spaces are leased, the speed of which willlargely depend on prevailing market conditions

The business environment remains challenging due to ongoing economicrestructuring, government regulations on manpower and industrial land usepolicies, 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 financialyear ending 31 March 2016

49





Capital Management

Asset Management

Portfolio Update


Market Outlook


Agenda

50

A‐REIT's StrengthsDiversity 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 5.7% 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

51

A‐REIT's Strengths

Downside protection in earnings• Stable portfolio with 93.8% of portfolio revenue committed for

FY15/16 and a portfolio average lease to expiry of about 3.7 years• Mix of long term and short term leases provide earnings stabilityLong term leases have a weighted average lease to expiry of about5.9 years and are backed by an average of 7 months’ rent in securitydeposits

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

sectors

Hedge against Inflation• 29.3% of leases are long term with periodic rental escalation, of which

about 24.1% have CPI‐based adjustment and 73.4% incorporate fixed‐rate adjustment

52

A‐REIT's Strengths Development capability

• Has capability and capacity to create own assets which could be more yieldaccretive 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 1,470 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 31 December 2015• Accounts for 15% of S‐REIT total trading volume in 3Q FY15/16• 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)

53

PrudentCapital & RiskManagement

Value‐Adding Investments

Proactive Asset

Management

StabilityStability GrowthGrowth

Predictable incomePredictable income Capital stabilityCapital stabilityTotal

Returns

A‐REIT's Strategies

Proactive and

dedicated manager with track record

Fund Manager:Ascendas Funds

Management(S) Ltd

Property Manager: AscendasServices Pte Ltd

Fund Manager: Ascendas Funds

Management(S) Ltd

Performance Drivers

Outcome

Strategies

54

Additional Information(1) Quarterly Results

(2) A‐REIT Singapore Occupancy vs Industrial Average(3) Lease Expiry Profile – Singapore & Australia

(4) Singapore Industrial Property Market

55

Quarterly Results(For illustrative purpose)* FY14/15 FY15/16

Summary (S$ million) 1Q 2Q 3Q 4Q 1Q 2Q 3Q

Gross Revenue 163 165 172 174 181 183 194

Net Property Income 116 115 115 117 124 124 142

Total amount available for distribution

89* 87* 87* 88* 92 94# 97

No. of units in issue (m) 2,404 2,404 2,406 2,406 2,408 2,408 2,504

Normalised Distribution Per Unit (cents)

3.680* 3.620* 3.630* 3.670* 3.841 3.889# 3.946

For illustrative purpose only, the “Total amount available for distribution” and the “Distribution Per Unit”includes proforma adjustments as follows:* Adjusted on the assumption that China’s net income was recognised on a quarterly basis (instead of

semi‐annually).# Adjusted for 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 rulingby IRAS on the non‐deductibility of certain upfront financing fees incurred in FY09/10 for certain creditfacilities.

56

Source : A‐REIT’s Singapore portfolio as at 31 December 2015. Market: JTC 3Q 2015 JTC statistics do not breakdown Hi‐Specs Industrial and Light Industrial, ie they are treated as one category with occupancy of 90.7%

A‐REIT Singapore Occupancy vs Industrial Average

87.7% 88.3%

93.3%

85.9%84.4%

90.7% 90.7%92.5%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

Business and SciencePark

Hi‐Specs Industrial Light Industrial Logistics

A‐REIT JTC

Occup

ancy Rate

57

Singapore: Lease expiry profile(as at 31 December 2015) Singapore portfolio weighted average lease to expiry (WALE) of

3.5 years Lease expiry is well‐spread, extending beyond 2029 About 7.0% of Singapore gross revenue is due for renewal in

balance of FY15/16 as at 31 December 2015

Breakdown of expiring leases for FY15/16 and

FY16/17

7%

31%

38%

6%

18%

FY15/16

Science ParksBusiness ParksHi‐Specs IndustrialLight IndustrialIDARLogistics

16%

23%

19%

19%

5.4%

17%

FY16/172.3%4.3%

1.5% 0.8% 1.6%5.0%

0.8% 0.9% 1.7%

4.7%

17.3%

18.7%

14.1%

7.5%

4.7%

1.8%3.9% 3.1%

7.0%

21.6%20.2%

15.0%

9.1% 9.7%

2.6%

4.8% 4.8%

0.1%1.3%

3.9%

0%

5%

10%

15%

20%

25%

% o

f Sin

gapo

re G

ross

Rev

enue

Multi‐tenant Buildings ‐ SG

Single‐tenant Buildings ‐ SG

58

Australia: Lease expiry profile(as at 31 December 2015) Australia portfolio weighted average lease to expiry (WALE) of 5.6 years Lease expiry is well‐spread, extending beyond 2027 No leases due for renewal in balance of FY15/16

Breakdown of expiring leases for FY16/17

70.5%

29.5%

FY16/17

Sydney Melbourne

6.4%7.7%

10.8%

7.7%9.8%

4.8%

18.4%

1.8%

4.3%

10.3%

5.3%

1.3%

2.8%

1.8%

2.6%

2.7%

1.5%

7.7%

10.5%

12.6%

10.2%

12.5%

6.3%

18.4%

1.8%

4.3%

10.3%

5.3%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

% o

f Aus

tral

ia G

ross

Rev

enue

Multi‐tenant building ‐ AUS

Single‐tenant building ‐ AUS

59

0

20

40

60

80

100

120

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1Q15 2Q15 3Q15

Industrial Rental Index

Average Market Rents by Segment (Singapore)

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)

$5.40

$4.29

$3.65 $3.15

$1.80 $1.80

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

60

Singapore Industrial Property Market: New Supply Total stock (net) : 44.0 million sqm, of which

• Business & Science Parks account for 1.8 million sqm (4.2%)• Logistics & Distribution Centres account for 8.7 million sqm (19.8%)• Remaining stock are factory space

Potential new supply (gross) of about 3.3 million sqm (~6.1% of existing stock) overnext 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 208 208 0 0

% of Pre‐committed (est) 34% 34% 0% 0%

Hi‐Specifications Industrial 198 174 23 0

% of Pre‐committed (est) 88% 100% 0% 0%

Light Industrial 1,832 1,144 378 310% of Pre‐committed (est) 31% 39% 28% 3%Logistics & Distribution Centres 1,104 618 486 0% of Pre‐committed (est) 33% 58% 0% 0%Total Pre‐commitment 35%

61

Singapore Business & Science Parks: New Supply

Expected Completion Location Developer GFA (sqm)

% Pre‐committed

(est)

2016 Ayer Rajah (One‐north)SHINE Systems Assets Pte Ltd 21,430 100%

2016 Science Park Ascendas Land (S) Pte Ltd. 47,310 8%

2016 Alexandra Terrace Mapletree Business City Pte Ltd 124,880 24%

2016 Vista Exchange Green BP – VISTA LLP (New) 14,350 100%

Total (2016) 207, 970 33%

Source: JTC & A-REIT internal research

There are currently no Business & Science Park supply after 2016

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.

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6 20 Pemulwuy, Sydney One@Changi City - Ascendas...

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