MISCELLANEOUS

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Name of Announcer * CAPITAMALLS ASIA LIMITED

Company Registration No. 200413169H

Announcement submitted on

behalf of CAPITAMALLS ASIA LIMITED

Announcement is submitted with

respect to *CAPITAMALLS ASIA LIMITED

Announcement is submitted by * Tan Lee Nah

Designation * Company Secretary

Date & Time of Broadcast 24-Aug-2012 17:30:02

Announcement No. 00065

>> ANNOUNCEMENT DETAILS

The details of the announcement start here ...

Announcement Title * CapitaMall Trust - "Presentation Slides for Singapore Investment Week:

Understanding REITs - 25 August 2012"

Description CapitaMalls Asia Limited's subsidiary, CapitaMall Trust Management Limited, the

manager of CapitaMall Trust, has today issued an announcement on the above

matter, as attached for information.

AttachmentsTotal size = 1287K

(2048K size limit recommended)

CMTSlideSporeInvtWk.pdf

Page 1 of 1MISCELLANEOUS

24-08-12http://info.sgx.com/webcorannc.nsf/AnnouncementTodayByCompanyNameAndCategory/38...

CAPITAMALL TRUST Singapore’s First & Largest REIT

Singapore Investment Week:

Understanding REITs

25 August 2012

This presentation may contain forward-looking statements that involve assumptions, 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 risks, uncertainties and assumptions. Representative examples of these factors include (without

limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability,

competition from other developments or companies, shifts in expected levels of occupancy rate, property rental income,

charge out collections, changes in operating expenses (including employee wages, benefits and training costs),

governmental and public policy changes and the continued availability of financing in the amounts and the terms

necessary to support future business. You are cautioned not to place undue reliance on these forward-looking

statements, which are based on the current view of management on future events.

The information contained in this presentation has not been independently verified. No representation or warranty

expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or

correctness of the information or opinions contained in this presentation. Neither CapitaMall Trust Management Limited

(the “Manager”) or any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or

otherwise) for any loss howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this

presentation or its contents or otherwise arising in connection with this presentation.

The past performance of CapitaMall Trust (“CMT”) is not indicative of the future performance of CMT. Similarly, the past

performance of the Manager is not indicative of the future performance of the Manager.

The value of units in CMT (“Units”) and the income derived from them may fall as well as rise. Units are not obligations

of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment

risks, including the possible loss of the principal amount invested.

Investors have no right to request that the Manager redeem or purchase their Units while the Units are listed. It is

intended that holders of Units (Unitholders) may only deal in their Units through trading on Singapore Exchange

Securities Trading Limited (the “SGX-ST”). Listing of the Units on the SGX-ST does not guarantee a liquid market for the

Units.

This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe

for Units.

Disclaimer

3

AGENDA

What is REIT?

Why REIT?

How to Evaluate?

4

Property Investment Concept

Investments in Real Estate

REIT

Investment

Direct

Purchase

5

Real Estate Investment Trusts (REITs) Getting Exposure to Real Estate Through REITs

Vehicle for investment

in a portfolio of real

estate assets

Generating income for

unitholders

6

What is a REIT?

REITs

Real Estate

Stocks

Bonds

Listed on stock exchanges

Potential for long-term growth

Hybrid of Real Estate, Stocks and Bonds

Invest in commercial real estate

Regular distributions

from the asset portfolio

7

Evolution of Global REIT Market

Sources: The Association for Real Estate Securitisation and CFA Institute

1960s 1970s 1980s 1990s 2000s 2010s Future

USA Australia Canada Japan China

Netherlands Belgium South Korea Philippines

Turkey Singapore

New Zealand South Africa

France

Greece

Taiwan

Brazil

Thailand

Hong Kong

Bulgaria

Malaysia

Israel

Germany

UK

Italy

Significant Growth in Global REIT Market in the Past 20 Years

8

REIT Invest In Different Asset Types

• Employment

• Demographics

• Tourist arrivals

• Occupancy costs

Retail

• Financial & Business sector

• Employment

Office

• Manufacturing sector

• Government regulations

Industrial Hospitality

• Tourist arrivals

• MICE

Key Drivers that Affect Demand for the Relevant Property Sector

Land Supply

General Economy

9

Asian REITs – An Attractive Asset Class

Source: Bloomberg, CBRE

Average 6.4% Dividend Yield for Asian REITs

Market No. of listed

REITs

Average

dividend

yield(1)

10-year government

bond yield

REIT market

capitalisation

(US$ million)

Japan 34 6.33% 0.99% 38,239

Singapore 26(2) 7.10% 1.62% 27,535

Hong Kong 9 5.58% 1.47% 14,923

Malaysia 15 6.45% 3.71% 5,134

Thailand 35 6.71% 3.32% 3,091

Taiwan 8 3.06% 1.28% 2,426

South Korea 7 8.79% 3.78% 195

Total 134 6.37% N.A. 91,543

Listed REITs in Asia as at end-2011

(1) Weighted by market capitalisation.

(2) Includes business trusts.

10

Singapore REIT Landscape

(1) Size of bubble denotes market capitalisation as at 27 July 2012; balance sheet data as at 27 July 2012.

Source: Company filings

23 REITs with Total Market Capitalisation(1) Exceeding S$42 billion

Suntec

Starhill

CapitaMall Trust (CMT)

Fortune

CRCT LippoM FCT

CCT

K-REIT

FCOT

A-REIT

MLT

CIT Cache AIMS

CDL

ART

Parkway

Saizen First

MCT

MINT

Sabana

0

2,000

4,000

6,000

8,000

10,000

12,000

0% 10% 20% 30% 40% 50%

Total Assets (S$ million)

Total Debt / Total Assets

11

Investing in REITs

Liquidity

Tax

Transparency

Dividends

Diversification

Monitored

Benefits

Traded on Exchange

Distributions are Tax-Exempt

Mandatory & High Distribution

Regulated

Multiple Property Portfolio

12

Investing in REITs

Volatility

Business

Risks

Management

Risks

Rise & Fall in Prices

Market & Business Conditions

Quality of Assets

13

How To Evaluate REITs

What does the REIT invest in?

What is the background of the REIT manager?

What is the dividend distribution policy?

How stable are the cash flows?

1

2

3

4

14

What Does the REIT Invest In? 1

Some Property Sectors are More Cyclical

0

200

400

600

800

1,000

1,200

1Q

19

75

1Q

19

76

1Q

19

77

1Q

19

78

1Q

19

79

1Q

19

80

1Q

19

81

1Q

19

82

1Q

19

83

1Q

19

84

1Q

19

85

1Q

19

86

1Q

19

87

1Q

19

88

1Q

19

89

1Q

19

90

1Q

19

91

1Q

19

92

1Q

19

93

1Q

19

94

1Q

19

95

1Q

19

96

1Q

19

97

1Q

19

98

1Q

19

99

1Q

20

00

1Q

20

01

1Q

20

02

1Q

20

03

1Q

20

04

1Q

20

05

1Q

20

06

1Q

20

07

1Q

20

08

1Q

20

09

1Q

20

10

1Q

20

11

1Q

20

12

Property Price Index (1975 as base year )

Shop Office Industrial

Source: Urban Redevelopment Authority

Recession

Asian

financial crisis SARS Global

Financial Crisis

15

What Does the REIT Invest In? 1

Even Within Retail Sector, Suburban Rentals Are More Resilient to Downturns

Source: Jones Lang LaSalle and DTZ Research

Singapore Retail Rentals and Quarterly GDP Growth

-20

-10

0

10

20

30

40

50

1Q

93

3Q

93

1Q

94

3Q

94

1Q

95

3Q

95

1Q

96

3Q

96

1Q

97

3Q

97

1Q

98

3Q

98

1Q

99

3Q

99

1Q

00

3Q

00

1Q

01

3Q

01

1Q

02

3Q

02

1Q

03

3Q

03

1Q

04

3Q

04

1Q

05

3Q

05

1Q

06

3Q

06

1Q

07

3Q

07

1Q

08

3Q

08

1Q

09

3Q

09

1Q

10

3Q

10

1Q

11

3Q

11

1Q

12

GDP Growth (Q-o-Q) Orchard Retail Rent ($ psf pm) Suburban Retail Rent ($ psf pm)

16

What Does the REIT Invest In? 1

Assess the Portfolio’s Diversity of Trade Mix, Tenant Quality and Occupancy

92% 93% 94% 95% 96% 97% 98% 99%

100%

CMT’s Portfolio Occupancy Rate

CMT Example

Asset

enhancements

27.3%

13.6%

9.0% 6.7% 6.1%

5.7%

5.0%

4.6%

4.0%

3.7% 3.1%

3.0% 2.8%

2.8% 2.6%

For the month of December 2011(2)

Portfolio(1) by Gross Rent 27.3%

13.6%

9.0%6.7%6.1%

5.7%

5.0%

4.6%

4.0%

3.7%3.1%

3.0%2.8%

2.8%2.6%

Food & Beverages Fashion Beauty & HealthServices Leisure & Entertainment / Music & Video Department Store Supermarket Gifts / Toys & Hobbies / Books / Sporting Goods OthersOffice Jewellery & Watches Shoes & BagsHouseware & Furnishings Information Technology Electrical & Electronics

27.3%

13.6%

9.0%6.7%6.1%

5.7%

5.0%

4.6%

4.0%

3.7%3.1%

3.0%2.8%

2.8%2.6%

Food & Beverages Fashion Beauty & HealthServices Leisure & Entertainment / Music & Video Department Store Supermarket Gifts / Toys & Hobbies / Books / Sporting Goods OthersOffice Jewellery & Watches Shoes & BagsHouseware & Furnishings Information Technology Electrical & Electronics

(3)

27.3%

13.6%

9.0%6.7%6.1%

5.7%

5.0%

4.6%

4.0%

3.7%3.1%

3.0%2.8%

2.8%2.6%

Food & Beverages Fashion Beauty & HealthServices Leisure & Entertainment / Music & Video Department Store Supermarket Gifts / Toys & Hobbies / Books / Sporting Goods OthersOffice Jewellery & Watches Shoes & BagsHouseware & Furnishings Information Technology Electrical & Electronics

(1) Includes CMT’s 40.0% interest in Raffles City Singapore (only retail and office leases, excluding hotel lease) and excludes JCube. (2) Based on committed gross rental income for the month of December 2011 and excludes tenant sales rental. (3) Others include Education, Art Gallery, Luxury and Warehouse.

17

What Does the REIT Invest In? 1

Issues to Consider When Investing in Cross-Border REITs

Key Points

Assess the borrowing costs and risk-free rates in the foreign

country

Currency risks

Foreign market supply and demand dynamics

18

What is the Background of the

REIT Manager?

2

Key Points

Sponsor of the REIT

* Financial strength of the Sponsor

* Does the Sponsor sell assets at inflated prices to their REITs?

Reputation & experience of the Manager

* Good corporate governance and transparency

* Has the manager been implementing its strategy for the REIT effectively?

Acquisition track record

* Has the manager been making acquisitions that add value to the REIT?

Asset management fees

* Are the fees reasonable?

19

What is the Background of the

REIT Manager? 2

Assess the Acquisition Track Record of the REIT Manager

• IMM Building

•27.2% stake in CRS(1)

– Lot One Shoppers’ Mall

– Bukit Panjang Plaza

(90 out of 91 strata lots)

– Rivervale Mall

•Bugis Junction

•Sembawang

Shopping Centre

•Hougang Plaza(2)

•JCube

•Funan DigitaLife

Mall

•Junction 8

•Tampines Mall

•40.0% stake in

Raffles City

•20.0% stake in

CapitaRetail

China

•Clarke Quay •Remaining 72.8%

stake in CRS(1)

(1) Acquisition of Class “E” bonds issued by CapitaRetail Singapore Limited ("CRS") which owned Lot One Shoppers’ Mall, Bukit Panjang Plaza (90 out of 91 strata lots) and Rivervale Mall.

(2) 92.4% stake purchase; 100% of the strata area was acquired in June 2006.

•Plaza

Singapura

•The Atrium@Orchard

2007 2008 2009 2010 2006 2008 2010 2009

IPO

2011

•Bugis+

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002

CMT Example

20

What is the Background of the

REIT Manager? 2

Assess the Acquisition Track Record of the REIT Manager

CMT Example

710

1,100

2004 Jun 2012

Plaza Singapura

• 13 acquisitions in 9 years; only 3 were bought from Sponsor (CapitaMalls Asia)

• Adding value to acquisitions through asset enhancements and active leasing

management

866

1,145

2006 Jun 2012

Raffles City (40% stake)

268

315

2010 Jun 2012

Clarke Quay

Independent Valuations (S$ million) of Properties Acquired from Sponsor

+55%

+32%

+18%

21

What is the Dividend

Distribution Policy? 3

Key Points

Frequency of distributions

* How frequently are dividends paid?

* Dividend payout ratio

Distribution yield

* Why some REITs trade at lower yields than peers

Total return that the REIT can provide

* Assess the growth potential of the REIT, in addition to

the distribution yield

22

What is the Dividend

Distribution Policy? 3

4.9

1.6

0.4

2.5

0.3

3.8 4.1

0

2

4

6

CMT 1H 2012 Yield

10-yr Govt Bond Yield

5-yr Govt Bond Yield

CPF Ordinary Account Savings

12-mth Fixed (S$) Deposit

Straits Times Index 12-mth

Yield

Straits Times Real Estate

Index 12-mth Yield

(1)

3.3% bps yield spread

Sources: Bloomberg, CapitaMall Trust Management Limited (“CMTML”), CPF Board, Monetary Authority of Singapore

(1) Based on the annualised DPU of 9.41 cents for the period 1 January 2012 to 30 June 2012 and the unit closing price of S$1.91

on 29 June 2012.

As at 30 June 2012

0% Tax for

Individuals

Yie

ld (

%)

CMT Example

23

What is the Dividend

Distribution Policy? 3

CMT Example

Source: Bloomberg

(1) As at 22 Aug 2012, taking into account the effects of the 9-for-10 rights issue in 2009.

2003/04

SARS outbreak

2008/09

Global Financial Crisis

Total Return of Approximately 192.3%(1) (Since Inception of CMT in Jul 2002)

-50%

0%

50%

100%

150%

200%

250%

300%

350%

400%

Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12

% C

ha

nge

in U

nit P

rice

/In

de

x V

alu

e

CapitaMall Trust Straits Times Index FTSE ST REIT

24

How Stable are the Cash Flows? 4

Key Points

Operating cash flows

* Key drivers of the cash flows

* Stable cash flows from long-term leases

Credit profile

* What is the credit rating of the REIT?

* Are the credit metrics healthy?

- Gearing ratio, interest coverage and average cost of debt

Capital management strategy

* Access to diversified sources of funding

* Extended debt tenures

25

How Stable are the Cash Flows? 4

CMT Example

26.9%

73.1%

Necessity

Shopping(2)

Discretionary

Shopping(3)

29.7%

70.3%

Necessity

Shopping(2)

Discretionary

Shopping(3)

Portfolio(1) By Gross Revenue

for FY 2011

Portfolio(1) By Asset Valuation

as at 31 December 2011

(1) Excludes JCube which has ceased operations for asset enhancement works and The Atrium@Orchard which consists of primarily office space.

(2) Includes Tampines Mall, Junction 8, IMM Building, Plaza Singapura, Bugis Junction, Hougang Plaza, Sembawang Shopping Centre, Lot One Shoppers’ Mall, Bukit Panjang Plaza and Rivervale Mall.

(3) Includes Funan DigitaLife Mall, Clarke Quay, Iluma and 40.0% interest in Raffles City Singapore. (4) Source: Singapore Tourism Board, March 2012.

Target 13.5-14.5 million

tourist arrivals in 2012(4)

• Defensive Portfolio Which Caters Mainly to Necessity Shopping

REITs Offer the “Best of Both Worlds”

26

Know your own risk tolerance and preferred investment horizon beforehand

Yield Growth

REITs offer

stability and

yield through

their regular

distributions

REITs offer

element of

growth through

their asset

enhancements

and acquisitions

27

Thank You