August 2017 - Frasers Logistics Trust - Investor Relations presentation is for information purposes...

INVESTOR PRESENTATION

August 2017

This presentation is for information purposes only and does not constitute or form part of an offer, solicitation, recommendation or invitation for the sale or purchase or

subscription of securities, including units in Frasers Logistics & Industrial Trust (“FLT”, and the units in FLT, the “Units”) or any other securities of FLT. No part of it nor

the fact of its presentation shall form the basis of or be relied upon in connection with any investment decision, contract or commitment whatsoever. The past

performance of FLT and Frasers Logistics & Industrial Asset Management Pte. Ltd., as the manager of FLT (the “Manager”), is not necessarily indicative of the future

performance of FLT and the Manager.

This presentation contains “forward-looking statements”, including forward–looking financial information, that involve assumptions, known and unknown risks,

uncertainties and other factors which may cause the actual results, performance, outcomes or achievements of FLT or the Manager, or industry results, to be materially

different from those expressed in such forward-looking statements and financial information. Such forward-looking statements and financial information are based on

certain assumptions and expectations of future events regarding FLT's present and future business strategies and the environment in which FLT will operate. The

Manager does not guarantee that these assumptions and expectations are accurate or will be realised. You are cautioned not to place undue reliance on these forward-

looking statements, which are based on the Manager’s current view of future events. The Manager does not assume any responsibility to amend, modify or revise any

forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise, subject to compliance with all applicable laws and

regulations and/or the rules of the Singapore Exchange Securities Trading Limited (“SGX-ST”) and/or any other regulatory or supervisory body or agency.

The information and opinions in this presentation are subject to change without notice, its accuracy is not guaranteed and it may not contain all material information

concerning FLT. None of Frasers Centrepoint Limited, FLT, the Manager, Perpetual (Asia) Limited, in its capacity as trustee of FLT, or any of their respective holding

companies, subsidiaries, affiliates, associated undertakings or controlling persons, or any of their respective directors, officers, partners, employees, agents,

representatives, advisers or legal advisers makes any representation or warranty, express or implied, as to the accuracy, completeness or correctness of the information

contained in this presentation or otherwise made available or as to the reasonableness of any assumption contained herein or therein, and 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 is expressly disclaimed. Further, nothing in this presentation should be construed as constituting legal, business,

tax or financial advice.

The value of Units and the income derived from them, if any, may fall or rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its

affiliates. An investment in the Units is subject to investment risks, including the possible loss of the principal amount invested. Investors should note that they have no

right to request the Manager to redeem their Units while the Units are listed. It is intended that holders of Units may only deal in their Units through trading on the SGX-

ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units.

Nothing in this presentation constitutes or forms a part of any offer to sell or solicitation of any offer to purchase or subscribe for securities for sale in Singapore, the

United States or any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such

jurisdiction.

Important Notice

1

Table of Contents

2

Contents PageSection

1 Introduction to FLT 3

2 Portfolio Overview 8

3 Financial Highlights 18

4 Sponsor 24

5 Strategy and Outlook 28

17 Hudson Court, Keysborough, Victoria

Introduction to FLT

Portfolio Overview

(1) Includes the six properties acquired by FLT in August 2017 and one remaining property to be acquired at a later date

(2) By valuation

(3) 14 properties located in Sydney, 1 property is located in Wollongong

The Largest Initial Pure-Play Australian Logistics

and Industrial REIT listed in Singapore

Melbourne (Victoria)

Properties 30

GLA 646,264 sq m

Valuation A$770.2m

% of Portfolio(2) 40.4%

Adelaide (South Australia)

Properties 4

GLA 33,038 sq m

Valuation A$35.2m


Sydney (New South Wales)

Properties 15(3)

GLA 405,471 sq m

Valuation A$553.4m


Perth (Western Australia)

Properties 1

GLA 20,143 sq m

Valuation A$18.2m


Brisbane (Queensland)

Properties 11

GLA 247,724 sq m

Valuation A$530.9m


61PROPERTIES(1)

Melbourne

Sydney

Brisbane

Adelaide

Perth

4

• Prime, new industrial

facility with 20-year

lease – longest in FLT’s

Portfolio

• Certified 6 Star Green

Star Design rating

1 Burilda Close, Wetherill Park, NSW

Developments Since Listing

5

Listed on the SGX-ST on

20 June 2016

Initial Portfolio: 51

properties in Australia

Listed on the SGX ST on 20

June 2016

June 2016

First Portfolio Acquisition

Private Placement and

Extraordinary General Meeting

28 June 2017

Private Placement

78 million units at S$1.01

4.62 times subscribed

26 July 2017

Extraordinary General Meeting

Obtained Unitholders’ Approval to

proceed with the portfolio acquisition

Completion of Development Properties

• Schenker Extension and CEVA

Logistic completed on 24 and 30

June 2016 respectively

• Ahead of targeted completion

date of July 2016 as originally

stated in the Prospectus

Doriemus Drive, Truganina, VIC

4 Kangaroo Avenue,

Eastern Creek, NSW

August 2016

Acquired Indian Drive and Pearson Road

Call Option Properties

Lot 1 Pearson Road, Yatala, QLD

• Acquisitions accretive to DPU

• Pearson Road Property is the

first industrial facility in

Queensland to achieve a 6 Star

Green Star Design rating

111 Indian Drive, Keysborough, VIC

November 2016

Acquired Martin Brower

Call Option Property

June 2017 July 2017 August 2017

• Announced proposed acquisition of seven industrial properties

for A$169.3 million on 6 June 2017

Completion of Acquisition of

Six Properties

1 August 2017

Comprising the four completed

properties and the Beaulieu

Facility

15 August 2017

For the Stanley Black & Decker

Facility

4 Completed Properties 3 Development Properties

Lot 1, Horsley Drive Business Park,

NSW (Survitec & Phoenix Facility)

89-103 South Park Drive, Dandenong

South, VIC (Ecolab Facility)

8 Stanton Road, Seven Hills, NSW

(Yusen Facility)

43 Efficient Drive, Truganina, VIC

(Ceva Tech Facility)

29 Indian Drive, Keysborough, VIC

(Stanley Black & Decker Facility)

Lot 1, Pearson Road, Yatala, QLD

(Beaulieu Facility) 17 Hudson Court, Keysborough, VIC (CH2 Facility)

Acquisition of Seven Properties in Australia

6(1) Based on the higher of the two independent valuations conducted by CBRE Valuations Pty Ltd, Savills Valuations Pty Ltd (only for the CEVA Tech Facility) and Urbis Valuations Pty Ltd (for all the seven properties save for the CEVA Tech Facility) as at 30 April 2017

(2) The aggregate acquisition amount payable is subject to adjustments arising from the actual GLA being more or less than the estimated GLA of the Development Properties (the “Development Properties Adjustments”), with the maximum aggregate acquisition amount for

the 7 new properties taking into account the Development Properties Adjustments being approximately A$171.5 million

(3) Including pre-committed leases for the Development Properties as at 30 June 2017

(4) The weighted average lease expiry computed through application of Adjusted Gross Rental Income (“Adjusted GRI”) (being the contracted rental income and estimated recoverable outgoings of the Completed Properties under the relevant existing lease for the first month

after the completion of the contracts of sale in respect of the Completed Properties (the “Completed Properties Contracts of Sale”), and for the Development Properties, the contracted rental income and estimated recoverable outgoings under the relevant pre-committed

lease for the first month following the estimated practical completion of the respective Development Properties) and assuming that the pre-committed tenancies for the Development Properties and the tenancies for the Completed Properties have commenced as at 30 June

2017

(5) As at 30 June 2017

Melbourne

4 assets

Sydney

2 assets

Brisbane

1 asset

Properties 7

Gross Lettable Area

(“GLA”)124,527 sq m

Aggregate Valuation(1) A$171.3 million

Aggregate

Acquisition Amount(2) A$169.3 million

Occupancy(3) 100%

WALE(4) 9.5 years

Average Age(5) 2.5 years

Completed equity raising through

placement and issuance of 78

million new units on 6 July 2017

Unitholders’ approval obtained at

the Extraordinary General

Meeting held on 26 July 2017

Completion of acquisition for six

out of seven properties in August

2017

Acquisition of 7 Properties

Located In Australia’s Three Largest Industrial Markets

Key portfolio, performance and trading metrics have improved since IPO

Growth Since IPO

7

Portfolio At IPO Current(1)

Number of Properties 51 61

GLA (sq m) 1,156,825 1,352,639

Portfolio Value (A$’m) 1,584.6 1,907.8

Occupancy (%) 98.3 99.4

WALE (Years) 6.9 6.9

Financial Indicators IPO Forecast YTD(2)

Distributable Income (A$’000) 96,812 101,386

DPU (Singapore cents) 6.71 7.08

Trading Performance At IPO 30 June 17

Unit Price (S$) S$0.89 S$1.08

Market Capitalisation (S$’m) 1,268.4m 1,545.9m

+10

+16.9%

+20.4%

+1.1 ppt

+4.4%

+5.1%

+21.3%

+21.9%

(1) As at 30 June 2017. Includes the six properties acquired by FLT in August 2017 and one remaining property to be acquired at a later date

(2) For the period from 20 June 2016 to 30 June 2017

Unchanged

29 Indian Drive, Keysborough, Victoria

Portfolio Overview

FLT’s properties in Melbourne are primarily located in the west and south east industrial

precincts and services Melbourne’s port and large south eastern residential population base

Sub-market LocationNo. of

PropertiesPrecinct Characteristic

South East

A 6 Access to M1 (Monash Freeway) and M3

(EastLink)

Services the large south eastern residential

population base

B 8

C 2

North D 6

Access to key freeways, including the

Tullamarine Freeway, Citylink Tollway, and

Western Ring Road, together with the

Tullamarine Airport.

Sydney is accessed via the Hume Highway

West E 6 Close to the shipping port and access to the

M1, Geelong Road, M80 Western Ring Road

City Fringe

F 1 Access to the M1 (Westgate Freeway)

linking it to the west precinctG 1

Total 30

Portfolio Concentrated in Major Industrial Markets - Melbourne

South Park Industrial EstateA

B The Keys Industrial Park

E West Park Industrial Estate

C Clayton South & Mulgrave

Altona Industrial ParkF

Port MelbourneG

D Melbourne Airport Business Park

C

F

E

G

D

BA

New South Wales

South

Australia

South

Australia

New South

Wales

New South

Wales

Map of Melbourne

AB

C

D

E

F

G

A

B

C

D

E

F

G

South Park Industrial Estate

The Key Industrial Park

Clayton South & Mulgrave

Melbourne Airport Business Park

West Park Industrial Estate

Altona Industrial Park

Port Melbourne

9

Portfolio Concentrated in Major Industrial Markets - Sydney

FLT’s properties in Sydney are well-connected to major freeways, Sydney’s port and are able

to service growing population in the north west



Outer Central

West

A 4 Excellent access to key motorways, including

M7, M4 and other main arterial roads

Third-party logistics (“3PL”), retail and

wholesale distribution centres for key brand

name operators are located in this precinct

B 2

C 2

Outer North

West

D 4 Close to M2 and M7 and access to the large

and growing north west population corridor

Supply is moderately constrained – sites suit

smaller developmentE 1

Outer South

WestF 1

Access to the M5 and South Sydney/Port, the

Southern Sydney Freight Line and

Moorebank Intermodal terminal

Port Kembla

(Wollongong)N.A. 1

One of the three major trade ports within New

South Wales and is situated within the

southern industrial city of Wollongong

Total 15A

B

C

D

E

F

Eastern Creek

Pemulwuy

Wetherill Park

Seven Hills

Winston Hills

Smeaton Grange

Eastern CreekA

PemulwuyB

Seven HillsC

Winston HillsD

Smeaton GrangeE

B

A

CD

E

Map of SydneyQueensland

South Australia

Victoria Victoria

AB

DE

F

C

10

Portfolio Concentrated in Major Industrial Markets - Brisbane

FLT’s properties in Brisbane are primarily concentrated in the southern sub-market, which

has good road linkages to the north, west and south to the Gold Coast residential population

bases



Southern

A 1

Largest geographical industrial precinct that

has good road linkages to the north, west

and south to the Gold Coast residential

population

B 1

C 1

D 1

E 1

F 1

G 1

H 2

Trade Coast I 1

Close to key infrastructure, including Port of

Brisbane and the Brisbane Airport

Access north and south via the M1

Supply is constrained. Alternative use is

strong competition for development in

neighbouring suburbs

Northern J 1

Services the population to the North of

Brisbane via the Gympie Road, Bruce

Highway and Houghton Highway

Limited availability of development land

Total 11

Flint StreetA

Boundary RoadB

Siltstone PlaceC

Stradbroke StreetD

Platinum StreetE

Shettleston StreetF

Sandstone PlaceG

Queensport RoadH

Earnshaw RoadI

I

H

F

BA

D

G

C

E

Northern Territory

New South

Wales

New South

Wales

Map of Brisbane

A

B

C

D

F

G

H

Flint Street

Boundary Road

Siltstone Place

Stradbroke Street

Shettleston Street

Sandstone Place

Pearson Road

E Platinum Street

I Queensport Road

J Earnshaw Road

AB

C

D

E

F

G

H

I

J

11

FLT Portfolio Metrics

(1) Valuation for pre-acquisition portfolio of 54 properties as at 30 September 2016 (save for the property located at Lot 3 Horsley Drive Business Park, Cnr Horsley Drive

& Cowpasture Road, Wetherill Park, New South Wales (the “Martin Brower Property”) which was valued on 1 October 2016)

(2) Valuation for the seven new properties are based on the Aggregate Valuation

(3) As at 30 June 2017

12

NSW, 29.0%

QLD, 27.8%

VIC, 40.4%

SA, 1.8%

WA, 1.0%

Value

Geographical Breakdown by GLA and Value

90.5% of FLT’s portfolio (by

value) comprised of freehold

and long leasehold land

tenure assets

76.2% of FLT’s portfolio (by

GLA) is less than 10 years

old with lower capital

expenditure requirements

Land Tenure by Value(1)(2)

Freehold60.2%

> 80 Year Leasehold

30.3%

Other Leasehold

9.5%

Portfolio Age by GLA(3)

<2 Yrs23.1%

2-5 Yrs17.7%

5-10 Yrs35.4%

> 10 Yrs23.8%

NSW, 30.0%

QLD, 18.3%

VIC, 47.8%

SA, 2.4%

WA, 1.5%

GLA

Diversified portfolio across

five states in Australia

Focus on Australia’s three

largest capital cities of

Sydney, Melbourne and

Brisbane

Leasing Updates

13(1) Retention rate would have been 100% if excluding the lease surrender by Australian Geographic due to a solvent exit arrangement

(2) The GLA of 19,299 sq m refers to the existing lettable area and excludes the planned expansion of 1,238 sq m, which is due for completion in January 2018

140,246 sq m

of new lease and lease renewals

since FLT’s listing, representing

11.4% of total Portfolio GLA

94.0%Tenant retention rate(1) for all

leasing transactions from the

Listing Date to 30 June 2017

Management continues to proactively engage with tenants well before lease expiry

19,299 sq m lease

extension (and asset

enhancement) to

November 2031(2)

6,991 sq m lease

extension to March

2021

7,812 sq m lease

executed with

Tailored Packaging

to April 2025

5,299 sq m lease

extension to

December 2022

18–20 Butler Boulevard, Adelaide Airport, South Australia57–71 Platinum Street, Crestmead, Queensland

25–29 Jets Court, Melbourne Airport, Victoria32 Gibbon Road, Winston hills, New South Wales

Lease Renewals and New Leasing Activity (1 January 2017 to 30 June 2017)

Asset Enhancement

14

Property: 57–71 Platinum Street, Crestmead, Queensland

Tenant: Stramit Corporation Pty Limited

Description:1,238 sq m expansion of the warehouse, installation of a 773 sq m awning and

further building upgrades and sustainability initiatives

Expected Return on Cost: 10%

Expected Completion Date: January 2018

Proposed location of new extension, canopy and solar panels

Consumer sector tenants Logistics sector tenants

Well-diversified Tenant Base

15

Consumer 43.2%

Logistics 33.1%

Manufacturing 17.0%

Others 6.7%

Breakdown of Tenants By TradeTop 10 Tenants(% of Gross Rental Income (“GRI”) contribution for the month of June 2017(1)) (by Gross Rental Income for the month of June 2017(1))

% of GRI

WALE

(Years)

Coles 13.3 11.3

CEVA Logistics 5.0 8.0

Schenker 4.2 7.4

Toll Holdings 3.1 2.4

TTI 3.0 5.1

Mazda 2.7 6.7

Martin Brower 2.7 19.3

H.J. Heinz 2.5 9.5

DHL Global Forwarding 2.4 2.0

Unilever 2.3 2.9


(1) As at 30 June 2017, and excluding straight lining rental adjustments


Portfolio Lease Expiry Profile

16

No concentration risk of lease expiry (no single financial year has more than 16% lease expiries

up to 30 September 2025)̵ Only 2.5% lease expiries to end FY18

Provides stability of cash flows

0.2%

2.3%

13.9%

8.2%

10.4%

15.8%

4.0%

7.9%

4.8%

32.5%

0.5%

10.7%

15.3%

12.8%

10.1%10.8%

4.0%

8.0%5.6%

21.7%

Sep 2017 Sep 2018 Sep 2019 Sep 2020 Sep 2021 Sep 2022 Sep 2023 Sep 2024 Sep 2025 Sep 2026and beyond

Lease Expiry by Gross Rental Income⁽¹⁾(2)

Jun 2017 IPO (as disclosed in Prospectus)

FLT has the largest industrial Green Star performance rated portfolio in Australia

Green Initiatives include undertaking LED & solar PV analysis for existing properties

(1) Green Star rating is awarded by the Green Building Council of Australia (GBCA) which has assessed the Properties against nine key performance criteria – energy, water,

transport, materials, indoor environment quality, management, land use & ecology, emissions and innovation

(2) As at 30 June 2017 and Includes the six properties acquired by FLT in August 2017 and one remaining property to be acquired at a later date

Sustainability

17

LED lighting to warehouse and office

areas

FLT’s Green Star-rated status(1,2)

Sustainability initiatives

Lot 1 Pearson Road, Yatala, Queensland 1 Burilda Close, Wetherill Park, New South Wales

Potential sustainability benefits

Reduces ongoing occupancy costs

Attracting new tenants, especially those using

sustainability as a criteria

Assists in retaining tenants at lease expiry

Decreases building obsolescence

Minimises vacancy downtime

Performance rated, 67.4%

Not Eligible, 23.0%

Not Rated, 9.6%

Energy-efficient LED lighting Solar PV Systems

Rooftop Solar PV system to generate

renewable energy for use on site

Geothermal heating and cooling

Utilise geothermal heating and

cooling systems to take

advantage of the stable

temperature underground

using a piping system

Integrated in the base design

of the Quatius Logistics and

Survitec & Phoenix properties

(by GLA)

Underground geoair loops

Surface level geoair heat pumpBuilding and

Internal works

Lot 1 Horsley Drive Business Park, New South Wales

Financial Highlights

(A$’000) Actual Forecast(1) Change (%)

Contributing factors

Gross revenue 40,226 40,290 (0.2)

Adjusted Net Property Income for the Quarter at A$30.8

million was in line with Quarter Forecast. Actual gross

revenue for the Quarter excluding straight lining rental

adjustment was in line with Quarter Forecast.Adjusted net

property income(2) 30,843 30,856 -

Finance costs (4,220) (5,198) 18.8

Interest savings from lower actual weighted average

interest rate of 2.8%(3) per annum compared to Forecast

weighted average interest rate of 3.4%(3) per annum

Lower debt funding as compared to Forecast

Distributable

income to

Unitholders

25,047 23,664 5.8

Due mainly to:

• Interest savings

• Lower withholding tax on distributable incomeDPU

(Singapore cents)1.75 1.64 6.7

(1) Please refer to Note 1 in Paragraph 9 of FLT’s Financial Statements Announcement dated 28 July 2017 for details on the forecast figures for the quarter ended 30 June

2017.

(2) Net property income excluding straight lining rental adjustments

(3) Excluding upfront debt related expenses

Financial Performance (Quarter ended 30 June 2017)

19

(A$’000) Actual(1) Forecast(2) Change(%)

Contributing factors

Gross revenue 163,894 163,585 0.2

Variance from Forecast is due to rental income contribution

from the previously vacant tenancy at Lot 5 Kangaroo

Avenue which was leased from April 2016 and the

acquisition of the two call option properties (Indian Drive

and Pearson Road Properties) one month ahead of

Forecast

Partially offset by the two month delay in acquiring the

Martin Brower call option property and one-off repairs and

maintenance costs incurred for some of the properties

Adjusted net

property income(3) 125,158 125,303 (0.1)

Finance costs (16,390) (20,076) 18.4

Interest savings from lower actual weighted average

interest rate of 2.8%(4) per annum compared to Forecast

weighted average interest rate of 3.4%(4)

Lower debt funding as compared to Forecast

Distributable

income to

Unitholders

101,386 96,812 4.7Due mainly to:

• Interest savings

• Lower trust expenses

• Lower withholding tax on distributable incomeDPU

(Singapore cents)7.08 6.71 5.5

(1) The Actual results for the FLT Group for the financial period from 30 November 2015 (date of constitution) to 30 June 2017 comprises the actual results for the quarters ended 30 June 2017, 31 March

2017 and 31 December 2016 and (i) in respect of the non-Queensland Properties, 108 days of operation from 14 June 2016 to 30 September 2016; and (ii) in respect of the Queensland Properties, 102

days of operation from 20 June 2016 to 30 September 2016. Please refer to Note 1 in Paragraph 9 of FLT’s Financial Statements Announcement dated 28 July 2017 for details

(2) Please refer to Note 1 in Paragraph 9 of FLT’s Financial Statements Announcement dated 28 July 2017 for details on the Forecast figures for the financial period from 30 November 2015 to 30 June 2017

(3) Net property income excluding straight lining rental adjustments


Financial Performance (Financial Period ended 30 June 2017)

20

(1) Please refer to Note 1 in Paragraph 9 of FLT’s Financial Statements Announcement dated 28 July 2017 for details on the Forecast figures for the financial period from 30 November 2015 to 30 June 2017

(2) The Actual results for the FLT Group for the financial period from 30 November 2015 (date of constitution) to 30 June 2017 comprises the actual results for the quarters ended 30 June 2017, 31 March 2017 and 31

December 2016 and (i) in respect of the non-Queensland Properties, 108 days of operation from 14 June 2016 to 30 September 2016; and (ii) in respect of the Queensland Properties, 102 days of operation from 20 June

2016 to 30 September 2016. Please refer to Note 1 in Paragraph 9 of FLT’s Financial Statements Announcement dated 28 July 2017 for details

DPU

21

Financial Period ended 30 June 2017

6.717.08

Forecast Actual(1) (2)

5.5%

(Singapore cents, 20 June 2016 to 30 June 2017)

1.641.75

Forecast Actual

6.7%

(1)

Quarter ended 30 June 2017

(Singapore cents, 1 April 2017 to 30 June 2017)

(A$’000) As at 30 June 2017

Investment properties 1,752,543

Other non-current assets 2,965

Current assets 54,663

Total assets 1,810,171

Non-current liabilities 537,159

Current liabilities 16,314

Total liabilities 553,473

Net asset value per Unit (A$) 0.87

Net asset value per Unit (S$) 0.92

Value of investment properties has increased 9.4% from A$1.60 billion at IPO to A$1.75

billion as at 30 June 2017 due mainly to acquisition of the three call option properties

Balance Sheet

22

$170 $160

$200

FY2017 FY2018 FY2019 FY2020 FY2021

Debt Composition – Floating VS Hedged

Total Gross Borrowings A$530 million

Floating 21%

Fixed79%

No debt expiry

in FY2017 and

FY2018

As at 30 June 2017

Weighted average cost of borrowings is 2.8%⁽¹⁾ per annum

Healthy interest cover ratio of 9.5 times

No near term refinancing risks

Low gearing level of 29.3%

Available debt headroom of A$517 million to reach 45.0% aggregate leverage limit

Debt Maturity Profile (A$’m)


Capital Management

23

43 Efficient Drive, Truganina, Victoria

Sponsor

Sponsor: Frasers Centrepoint Limited – A Leading International Real Estate Company

25

One of Singapore’s top property companies with total assets of S$25b(1)

Multi-segment expertise – industrial, residential, retail, office, business space properties and hospitality

Engaged in the entire real estate value chain

One of the Top Residential Developers in Singapore

Globally ScalableHospitality Operator

One of the LargestRetail Mall Owners / Operators in Singapore

LeadingAustralianMulti-segmentDeveloper and Owner/Operator

(1) As at 30 June 2017

Frasers Property Australia – Leading Integrated Industrial Player

26

FPA (previously “Australand”) is a significant diversified property group in Australia with ~S$3.6b in total assets as at 31 December 2016

FPA became wholly-owned by the FCL Group in October 2014 and the creation of FLT to be a strategic partner in the industrial sector is a

key objective for both FPA and FCL

The industrial business line is of significant importance to FPA, representing approximately one-third of FPA’s asset base

Opportunity Identification and Development

Asset and Property Management Funds Expertise

FPA’S COMPLETE IN-HOUSE VALUE CHAIN

Opportunity Identification and Development

Asset and Property Management Funds Expertise

Consistent market leader in industrial

D+C market with c.15% - 25% market

share(1)

A$3.5b of assets and 3.1 million sq m

built form completed(2)

100% of IPO portfolio developed in-

house

Tenant retention rate of 81.0%(3)

Approx. 50% repeat business

Seven previous funds/JVs managed by

Frasers Property Australia since 2001

Gross value of funds managed is

approximately A$1.7b

Strong track record of delivering healthy

returns

Industrial development pipeline with an

on completion value of A$850m

End to end – from lease negotiation to

property and facilities management

In-house construction and delivery

platform, a key point of difference vs.

competitors

Strong Industrial Delivery Capabilities Proven Asset Management Track Record Unparalleled Funds Expertise

Source: Frasers Centrepoint Limited

(1) 2001 – 2015. FPA market share was not calculated in 2013 and 2014 and in 2008 and 2009 was a combined 15% average across both years. (2) Since 2001. (3)

Retention rate is for FLT portfolio from 2010 - 2015

Alignment of Interest between the Sponsor, REIT Manager and Unitholders

27

Substantial Sponsor ownership in FLT REIT Manager Fee structure

The substantial interest of the Sponsor in FLT aligns the Sponsor and Unitholders’ interest.

Management fee structure aligns the REIT Manager and Unitholders’ interest.

100% base fee and performance fee in units for the FP2016

and PY2017 to align interest of REIT manager and unitholders

Performance fee structure incentivises the REIT Manager to

grow distributable income and DPU

The Sponsor is the largest Unitholder in FLT

Sponsor ownership of 19.9%(1)

Management Fee Fee Structure

Base Fee 0.4% p.a. of Deposited Property

Performance Fee 5.0% p.a. of Distributable Income

Substantial strategic investment in FLT

TCCI(2) has committed 6.0%(1) as a strategic investor

Total REIT Management Fee for FP2016 (annualised): 0.64% of Deposited Properties

(1) As at 4 August 2017

(2) TCC Group Investments Limited

89 – 103 South Park Drive, Dandenong South, Victoria

STRATEGY & OUTLOOK

Deliver stable and

regular distributions

to unitholders

Achieve long term

growth in DPU

Prime and modern industrial and logistics portfolio

in key Australian markets

Strategic Objectives

29(1) Asset Enhancement Initiative

(2) Only completed income-producing real estate assets which are used for logistics or industrial purposes are included in the ROFR

Proactive leasing strategy: High occupancy

rate, long WALE and well-diversified tenant base

3.2% average annual built-in rental increments;

AEI(1) potential for portfolio properties

ROFR of 13 existing properties from Sponsor and

Sponsor’s development pipeline(2)

Third-party acquisitions

Optimal capital mix and prudent capital

management

Sources: Reserve Bank of Australia – Australian Economy Snapshot (14 July 2017), http://www.rba.gov.au/snapshots/economy-snapshot/; Statement by Philip

Lowe, Governor: Monetary Policy Decision (4 July 2017), https://www.rba.gov.au/media-releases/2017/mr-17-13.html Reserve Bank of Australia – Capital Market

Yields – Government Bonds – Daily (8 August 2017), Reserve Bank of Australia, https://www.quandl.com/data/RBA/F02_FCMYGBAG10D-Capital-Market-Yields-

Government-Bonds-Daily-Australian-Government-10-year-bond-Units-Per-cent-per-annum-Series-ID-FCMYGBAG10D

Economic Growth

• Australia’s 1Q2017 GDP grew 1.7% year on year, driven

by household consumption, public spending and a build-

up of business inventories; partially tempered by falls in

exports (affected by adverse weather) and dwelling

investment during the March quarter

• Business investment has picked up in those states not

directly affected by the declines in mining investment.

The Reserve Bank of Australia indicates GDP growth is

anticipated to strengthen gradually, with the transition

from a resource driven economy to lower levels of mining

investment

Official Interest Rates

• The RBA maintained the cash rate at 1.5%, consistent

with sustainable growth in the economy and achieving

inflation target over time

• Australian government 10 year bond yields at 2.61%

Unemployment Rate

• Low unemployment rate of 5.6%

Australian Economy Snapshot

30

0

1

2

3

4

1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017

(%)

Australian GDP Annual Growth Rates

0

1

2

3

4

5

2010 2011 2012 2013 2014 2015 2016 2017

(%)

Australian Cash Rate

http://www.rba.gov.au/snapshots/economy-snapshot/

https://www.rba.gov.au/media-releases/2017/mr-17-13.html

https://www.quandl.com/data/RBA/F02_FCMYGBAG10D-Capital-Market-Yields-Government-Bonds-Daily-Australian-Government-10-year-bond-Units-Per-cent-per-annum-Series-ID-FCMYGBAG10D

• Australian industrial supply is marginally above the long term average with construction activity

predominantly concentrated in Melbourne and Sydney

• Occupier demand has been strong for both existing and speculative facilities, resulting in rental growth

and lower vacancies in Sydney and Melbourne

• Australian investment sales volume remains restricted due to the declining level of investment grade stock

coming to market

• Given the pent up investor demand for a limited pool of stabilised assets, corporate sale and leaseback

activity has emerged and the transactions have evidenced a further compression in prime yields

Sources: JLL Real Estate Intelligence Service – Industrial Market Snapshot 2Q 2017; Knight Frank – Industrial Vacancy Report July 2017

Australian Industrial Market

31

0

400

800

1,200

1,600

2,000

Q22008

Q22009

Q22010

Q22011

Q22012

Q22013

Q22014

Q22015

Q22016

Q22017

SQM ('000s)

As at Q2 2017

Australian Total Industrial Supply

Completed 10 year annual average

Sources: Jones Lang LaSalle Real Estate Intelligence Service – Melbourne Industrial Final Data 2Q17; Jones Lang LaSalle Real Estate Intelligence Service – Melbourne

Industrial Snapshot 2Q17; Jones Lang LaSalle Real Estate Data Solution – Melbourne Construction Projects from 2Q07 to 2Q17

Melbourne Industrial Market

32

Supply: Supply levels remain above the long term average and total supply in 2017 is anticipated to be close

to the previous construction peak

Demand: Take up levels are increasing with 246,400 sqm of absorption recorded through both existing

vacancies (51%) and pre-lease deals (49%), driven by the logistics and wholesale trade sectors

Rents: While incentive levels remain higher compared to other markets, prime rental growth was recorded on

a net and effective basis across all precincts except for the City Fringe

Vacancy: As a result of strong absorptions (predominantly in the West), vacancy levels are falling and on

course for a return to the long term average

0

100

200

300

400

500

600

700

800

900

Q22008

Q22009

Q22010

Q22011

Q22012

Q22013

Q22014

Q22015

Q22016

Q22017

SQM ('000s)

As at Q2 2017

Melbourne Industrial Total Supply


$81$86 $84 $83 $84 $86 $88 $89 $89 $90 $91

50

75

100

125

150

Jun

-07

Jun

-08

Jun

-09

Jun

-10

Jun

-11

Jun

-12

Jun

-13

Jun

-14

Jun

-15

Jun

-16

Jun

-17

Pri

me g

rad

e n

et

fact

ren

t $p

sm

p.a

.

Melbourne Prime Grade Net Face Rents

Supply: Sydney is experiencing rising pre-lease developments associated with speculatively developed

facilities

Demand: Take-up result of 343,200 sqm almost double that of the 10-year average, led by occupiers from

both the wholesale trade and retail trade sectors. Demand has been further boosted by increased

infrastructure investment in New South Wales

Rents: Prime rents have continued to strengthen and the growth has been the strongest level in the past 10

years due to increased demand and limited vacancy

Vacancy: Sydney is currently experiencing reduced letting up times and levels of immediately available prime

stock are limited for large-space occupiers who are looking to relocate. As a result the occupiers have moved

to the pre-lease market to secure space

Sources: Jones Lang LaSalle Real Estate Intelligence Service – Sydney Industrial Final Data 2Q17; Jones Lang LaSalle Real Estate Intelligence Service – Sydney Industrial

Snapshot 2Q17; Jones Lang LaSalle Real Estate Data Solution – Sydney Construction Projects from 2Q07 to 2Q17

Sydney Industrial Market

33

0

100

200

300

400

500

600

700

800

900

1,000

Q22008

Q22009

Q22010

Q22011

Q22012

Q22013

Q22014

Q22015

Q22016

Q22017

SQM ('000s)

As at Q2 2017

Sydney Industrial Total Supply


$112 $113$109 $109

$113 $115$121 $121 $123 $124

$130

75

100

125

150

175

Jun

-07

Jun

-08

Jun

-09

Jun

-10

Jun

-11

Jun

-12

Jun

-13

Jun

-14

Jun

-15

Jun

-16

Jun

-17

Pri

me g

rad

e n

et

fact

ren

t $p

sm

p.a

.

Sydney Prime Grade Net Face Rents

Sources: Jones Lang LaSalle Real Estate Intelligence Service – Brisbane Industrial Final Data 2Q17; Jones Lang LaSalle Real Estate Intelligence Service – Brisbane Industrial

Snapshot 2Q17; Jones Lang LaSalle Real Estate Data Solution – Brisbane Construction Projects from 2Q07 to 2Q17; Knight Frank – Brisbane Industrial Vacancy Report 2Q17

Supply: Supply levels in Brisbane are relatively low compared to the Melbourne and Sydney markets.

However, Brisbane is on the rise to the long term average with a number of pre-lease projects currently under

construction (primarily in the South) which are anticipated to reach completion in the second half of 2017

Demand: Occupier demand has exhibited steady improvement with most of the absorptions recorded in the

Trade Coast. Enquiry levels are high for modern buildings with operational efficiencies due to competitive

effective rents.

Rents: Further contraction in prime net face rents across all precincts as a result of relatively high vacancy

and aggressive incentives offered by developers to compete for pre-commitments

Vacancy: Letting up periods remain lengthy (average 18.4 months estimated by Knight Frank) despite some

improvement to vacancy levels

Brisbane Industrial Market

34

0

100

200

300

400

500

600

Q22008

Q22009

Q22010

Q22011

Q22012

Q22013

Q22014

Q22015

Q22016

Q22017

SQM ('000s)

As at Q2 2017

Brisbane Industrial Total Supply


$112$116

$113$117 $118 $120 $120 $119 $118 $117

$111

75

100

125

150

Jun

-07

Jun

-08

Jun

-09

Jun

-10

Jun

-11

Jun

-12

Jun

-13

Jun

-14

Jun

-15

Jun

-16

Jun

-17

Pri

me g

rad

e n

et

fact

ren

t $p

sm

p.a

.

Brisbane Prime Grade Net Face Rents

Summary

FLT Highlights (For the Financial Period ended 30 June 2017(1))

7.08 Singapore cents

DPU

5.5% Above Forecast

99.4% Occupancy

29.3%Aggregate Leverage(2)

Available debt

headroom for growth

Key Portfolio Metrics(2)(3)

A$101.4 milDistributable Income

4.7% Above Forecast

6.9 years WALE

6.6 years Portfolio Age

3.2%Average Fixed

Rental Increases

35(1) For the period from 20 June 2016 to 30 June 2017

(2) As at 30 June 2017


a

Lot 1 Pearson Road, Yatala , Queensland

Investor relations contact

Mr. Ng Chung Keat

Frasers Logistics & Industrial Asset Management Pte. Ltd.

Email: [email protected]

Website: www.fraserslogisticstrust.com

THANK YOU

http://www.fraserslogisticstrust.com/

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