March 2, 2020

REIT

s Sin

gapore

THIS REPORT HAS BEEN PREPARED BY MAYBANK KIM ENG RESEARCH

SEE PAGE 12 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

Co. Reg No: 198700034E MICA (P) : 099/03/2012

Singapore REITs

Growth Matters

Macros conducive, prefer industrial REITs, U/G CMT

S-REITs have pulled back with the market and now trade at 4.5% FY20E

div yield and 1.04x P/BV. We expect valuations to stay elevated against

the negative macro undercurrents and a lower interest rate regime.

DPUs for S-REITs are well-backed by their cashflows, especially for our

preferred industrial and US office sector REIT names. We believe the

acquisition theme will continue to take centre stage against slower DPU

recovery, while scale aspirations and index inclusion could spur further

consolidation among the smaller names. Balance sheets are strong, with

debt headroom set to rise on possible higher leverage limits. We

maintain our sector bias towards industrial REITs, and lowered earnings

for hospitality given low DPU visibility and downside risk. US office S-

REITs fundamentals are favourable and stay within our preferred picks

into 2020.

Acquisitions, further overseas diversification

We believe the S-REITs will continue to play into the acquisition theme as

they push ahead on overseas diversification, against a slower Singapore

NPI recovery. Yields for industrial REITs have compressed following strong

deal momentum in 2019 and we expect the buoyant market liquidity to

help support further DPU-accretive acquisition growth opportunities.

AREIT and MINT could see the strongest accretion from deals, given their

higher debt headroom and visible asset growth pipeline.

Consolidation for scale, index inclusion

Scale could lower interest cost, and improved trading liquidity from a

higher free-float could place S-REITs closer to inclusions into the global

indices (FTSE EPRA-NAREIT, MSCI), which lifted valuations for FCT and

MUST in 2019. After a number of S-REIT mergers in 2019 within the

Frasers and OUE groups, and followed by the CCT-CMT announcement in

Jan 2020, we believe there could be further consolidation based on

current shareholdings, specifically within Warburg Pincus-owned names.

Industrial bottoming out; downside risk for retail, hospitality

S-REITs have ended their Dec 2019 quarter reporting, with the strongest

DPU growth achieved by the commercial REITs (MCT). We see lower DPU

visibility for retail and hospitality REITs despite the recent Singapore

Budget’s 15-30% property tax rebate and we lowered RevPAR estimates.

We upgrade CMT from Hold to BUY as valuations have pulled back and we

see acquisition catalysts after its CCT-merger. The industrial sector has

bottomed out in our view, and DPU recovery is underway from easing

supply. We also favour US office S-REITs due to their longer WALEs, better

operational performance, and acquisition growth potential.

Analyst

[Unchanged]POSITIVE

Chua Su Tye

(65) 6231 5842

chuasutye@maybank-ke.com.sg

March 2, 2020 2

Singapore REITs

1. Stock Selections

Fig 1: Top S-REIT BUYs (see Fig 12 for our full stock coverage)

Company Investment thesis

AREIT Largest and most liquid industrial S-REIT. Rising overseas exposure to offset lower Singapore contributions near term. We continue to favour its scale and see it as the best proxy for a recovering industrial sector, given its concentrated business-park and high-spec portfolio, which contributes 60% to AUM. Following its entry into the UK and US in separate DPU-accretive portfolio deals, and a stronger sponsor pipeline after the CAPL-Ascendas Singbridge merger, further diversification is possible which could provide upside to our FY19-21E 3.0% DPU CAGR. AREIT 3 Feb 2020 - Diversification & Growth AREIT 2 Dec 2019 - Ready For Growth AREIT 4 Nov 2019 - Scaling Up Again AREIT 30 Jul 2019 - Recovery Underway AREIT 2 Jul 2019 - Growth Backing Yield AREIT 30 Apr 2019 - Growth From A Broader Base

MINT Visible growth drivers from its (1) 30A Kallang Place post-AEI, (2) recently completed Sunview 1 BTS data centre, and (3) recent acquisition of 18 Tai Seng from sponsor. US data-centre contributions could rise in FY20-21 with its second overseas deal. Its USD1.4b (SGD1.9b) investment in 13 data centre assets in North America, via a 50-50 JV with its sponsor, lifts freehold properties from 24.0% to 37.9% of its AUM, and increases DPU visibility. MINT 22 Jan 2020 - SG Recovery Underway MINT 23 Oct 2019 - Another Hi-Tech High MINT 17 Sep 2019 - Upping Stability And Growth MINT 24 Jul 2019 - Higher On High-Tech MINT 10 Jul 2019 - Another Growth Phase MINT 23 Apr 2019 - Hi-Tech Play

CDLHT Top hospitality pick, as scale and liquidity render it a good proxy for a sustained recovery in Singapore’s hospitality sector, after the near-term Covid-19 outbreak impact. Overseas expansion has gained traction, with its continued push into Europe supported by positive carry from low funding costs. Low 35.4% gearing and >SGD520m of debt headroom suggest upside from potentially DPU-accretive deals. CDLHT 31 Jan 2020 - SG RevPAR-Recovery Play CDLHT 21 Nov 2019 - Well-structured Asset Swap CDLHT 30 Oct 2019 - Recovery On Track CDLHT 21 Jul 2019 - Slow Quarter, Recovery Intact CDLHT 2 May 2019 - Recovery Slower, But Intact

MUST First pure-play US office REIT to be listed in Asia - 60% of leases have fixed rental escalations averaging 2.4% pa, 35% under periodic rental increases; should support stable income growth and DPU visibility. Has completed six acquisitions totalling >USD1.0b since IPO and expected to scale up AUM, supported by sponsor Manulife’s asset pipeline. MUST 5 Feb 2020 - More To Go MUST 5 Nov 2019 - Stable Quarter, DPU Visibility MUST 19 Sep 2019 - Adding Another Strong Asset MUST 19 Aug 2019 - Fundamentally Sound MUST 29 May 2019 - US Asset Tour Highlights MUST 2 May 2019 - Accretive Deal MUST 25 Apr 2019 - A Strong Start MUST 22 Mar 2019 - A Play On Work

Source: Maybank Kim Eng

Sector research

Singapore REITs 20 Nov 2019 - Staying The Course

Singapore REITs 18 Sep 2019 - Raising Limits, Adding Growth

Singapore REITs 6 Jun 2019 - Stronger Growth Amid Tighter Yields

Singapore REITs 3 Apr 2019 - Patience Rewarded

Singapore REITs 27 Feb 2019 - Easing Into Recovery Mode

Singapore REITs 17 Jan 2019 - Yielding Growth

March 2, 2020 3

Singapore REITs

2. Acquisitions, further overseas diversification

We expect the S-REITs to continue with their buying spree, which gained

traction since 3Q19, as they push ahead on overseas diversification. The

industrial REITs, urged to mitigate weaker Singapore NPIs, were the most

aggressive on the acquisition front in 2019. Post their recent deals,

overseas AUMs for the S-REITs are now at 24-70% of the total, up from 9-

67%. Overseas assets, mostly freehold, with their longer WALEs and leases

embedded by annual rental escalations should support DPU visibility, and

continue to strengthen the REITs’ AUM profile. We expect their NPIs to

rise in line with the higher contribution from their overseas properties.

We believe the industrial REITs will continue to play into the acquisition

theme, as assets are generally priced at higher cap rates relative to retail

and office. Moreover the REITs’ earlier deals were substantial, but were

mostly funded by equity despite their ample debt headroom. Meanwhile,

DPU yields have compressed following growth in their AUMs and funded by

new equity, against a backdrop of strong market liquidity. This should

strengthen support for further DPU-accretive deal opportunities. We

believe that AREIT and MINT could see the strongest accretion from deals,

given their high debt headroom and visible pipeline assets.

Fig 2: Overseas AUM contributions - now at 24-70% of the

total, up from 9-67%

Source: Company data, Maybank Kim Eng

Fig 3: NPI contributions from overseas investments – up on

acquisitions, adding diversification and growth

Source: Company data, Maybank Kim Eng

Fig 4: Singapore cap rates – higher compression in office and

retail relative to industrial

Source: CBRE

Fig 5: Div yields have compressed sharply for large-cap

industrial REITs in the last 12 months

Source: Bloomberg, Maybank Kim Eng

5.0 5.3 9.1

21.0

48.9

67.0

8.0

19.7 24.3

28.0

37.3

70.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

CCT SPHREIT MINT AREIT KDCREIT MLT

Pre-deal Post-deal(%)

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20E

FY21E

FY22E

AREIT MINT MLT(%)

3.6 3.0

4.8 4.0

5.0 4.3

7.0 6.5

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

Grade A Office Prime Retail

Suburban Retail Industrial

(%)

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Dec-1

0

Jun-1

1

Dec-1

1

Jun-1

2

Dec-1

2

Jun-1

3

Dec-1

3

Jun-1

4

Dec-1

4

Jun-1

5

Dec-1

5

Jun-1

6

Dec-1

6

Jun-1

7

Dec-1

7

Jun-1

8

Dec-1

8

Jun-1

9

Dec-1

9

AREIT MINT MLT(%)

March 2, 2020 4

Singapore REITs

Fig 6: S-REIT acquisitions since 3Q 2019

REIT Ann. Property Value Int. NPI Debt Equity DPU NAV WALE (years) Leverage Freehold

date Yld chg Chg Pre- Post- Pre- Post- Pre- Post-

(SGD m) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)

CCT 17-Jul Main Airport Center in Frankfurt, Germany

387.1 94.9 4.0 45 55 1.0- 2.5

- 5.5 4.7 - 35.0 37.0 - -

MINT 16-Sep 10 US powered base, 3 turnkey data centres

965.0 50 6.0- 6.5

60 40 3.5 3.3 3.4 9.1 4.1 33.4 38.5 24.0 37.9

KDC REIT

16-Sep KDC SGP 4 and 1-Net North DC

585.1 99-100 - 20 80 9.4-12.4

- 7.8 3.0-16.8

8.9 31.9 30.3 - -

MUST 19-Sep 400 Capitol in Sacramento, California

198.8 100 7.2 28 72 2.3 0.6 6.2 5.9 6.1 37.1 36.6 100.0 100.0

MCT 27-Sep Mapletree Business City II in SG

1575.8 100 5.0 43 57 4.8 2.2 2.8 2.9 2.8 31.7 34.0 - -

MLT 21-Oct 7 assets in Malaysia, Vietnam and China

422.0 100 6.1 40 60 1.0 1.2 4.6 1.9 4.4 37.0 37.1 22.3 -

AREIT 1-Nov Portfolio of 28 US and 2 SG business parks

1665.3 100 6.5 23 77 0.6 3.3 4.0 4.9 4.1 36.3 34.6 21.6 29.0

SPH REIT

7-Nov Westfield Marion in Adelaide, S.Australia

636.5 50 5.6 28 72 1.6 0.3 3.2 6.7 5.1 27.5 29.7 5.3 19.7

MNACT 4-Dec 2 properties in Greater Tokyo

469.7 98.5 4.5 70 30 1.8 - 2.7 3.4 2.8 37.1 39.0 37.8 49.6

MLT 27-Jan Kobe Logistics Centre, Japan

272.5 98.5 4.0 100 0 2.6 - 4.4 4.2 4.4 37.1 39.0 - -

Avg. 46 54 34.4 35.6

Source: Company data, Maybank Kim Eng

3. Consolidation for scale, index inclusion

A number of S-REITs sharing sponsors announced acquisitions or mergers in

2019. OUECT and OUEHT in Apr 2019 said they would merge to create the

eighth largest S-REIT with a SGD6.7b combined AUM and tenth largest by

market cap. Its NPI would be supported by office (60%) and hospitality

assets (40%). FLT in Dec 2019 proposed to acquire FCOT for SGD1.54b in

cash and units; the enlarged REIT would own a SGD5.7b AUM across the

logistics, industrial and commercial sub-sectors, and rank amongst the ten

largest S-REITs by market cap, and with a larger SGD3.0b free-float.

Earlier this year, CMT announced that it would merge with CCT to create

the largest S-REIT and third-largest commercial APAC REIT with a

SGD16.8b market cap on a SGD22.9b AUM. The combined CapitaLand

Integrated Commercial Trust (CICT) aims for more sizeable mixed-used

acquisitions in Singapore and other developed markets.

Scale could lower interest costs, and the improved trading liquidity from a

higher free-float could place S-REITs closer to inclusions into the global

indices. FCT and MUST joined the FTSE EPRA NAREIT Developed Index in

Sep 2019 and Dec 2019 respectively, after growth in their AUMs and free-

float market caps. Stronger investor interest has resulted in a further

>50bp compression in their dividend yields. ART is a front-runner for index

inclusion in the Mar 2020 review, with 79% of its EBITDA now generated

from developed markets with AHT’s portfolio and its higher SGD2.5b free-

float, which is above the SGD1.7b threshold index requirement.

We believe there could still be further consolidation based on current S-

REIT shareholdings. Merger activity within the Mapletree group REITs are

unlikely in the near term. This is because MCT, MINT and MLT have clear

growth mandates within their respective commercial, industrial and

industrial (logistics) sub-sectors, and already command a premium

valuation relative to their large cap peers within the CapitaLand umbrella,

and also have similar interest costs.

March 2, 2020 5

Singapore REITs

Amongst other standalone REITs without shared sponsors, PREIT has the

lowest gap towards the index threshold at 25% from its current free-float

market cap.

However we see potential combination candidates within the stable of S-

REITs managed by ESR and ARA, and which are owned by Warburg Pincus.

We believe that larger REITs could potentially gain from lower borrowing

costs, which are currently relatively higher at 3.0-3.9% and also better

trading liquidity, as their standalone free-float market caps are >30%

below the threshold (SGD1.7b) for index inclusion.

Fig 7: S-REIT ownership by common shareholder and manager

Common s-hlder

Manager REIT Sponsor interest (%) Primary sub-sector AUM Wt avg cost of debt (%)

Tem

ase

k

CapitaLand AREIT* 19 Industrial 12,840 2.90

CMT* 29 Retail 11,758 3.20

CCT* 30 Office 11,123 2.40

ART 40 Hospitality 6,800 2.00

CRCT 25 Retail 3,431 2.98

Mapletree MCT* 35 Commercial 8,922 2.96

MLT** 32 Industrial 7,901 2.50

MNACT 35 Commercial 7,583 2.46

MINT** 30 Industrial 5,400 3.00

Keppel KREIT** 49 Office 8,032 2.77

KDCREIT** 21 Industrial 2,637 1.70

KORE 10 Office 1,257 3.69

Keppel/ SPH PRIME 7 each Office 1,255 3.30

SPH SPHREIT 70 Retail 4,211 2.91

Fra

sers

Frasers FLT** 19 Industrial 3,601 2.00

FCT** 36 Retail 2,846 2.57

FCOT 26 Office 2,261 2.90

FHT 24 Hospitality 2,128 2.40

Warb

urg

Pin

cus ESR ESRREIT 9 Industrial 3,162 3.92

AAREIT 9 Industrial 1,547 3.50

SSREIT 8 Industrial 964 3.90

ARA SUN* 7 Commercial 9,838 3.05

CERT 6 Industrial 2,103 1.50

CACHE 10 Industrial 1,334 3.84

ARAUS 19 Hospitality 705 3.90

C D CityDev CDLHT** 37 Hospitality 2,850 2.20

IREIT 13 Commercial 575 1.80

O U E OUE OUECT 48 Commercial 6,770 3.40

FIRT 13 Healthcare 1,341 4.10

Source: Company data, Maybank Kim Eng, *Included in MSCI and FTSE EPRA NAREIT Developed Index, *Included in FTSE EPRA NAREIT Developed Index

Fig 8: Div yield and P/B between large-cap industrial and

commercial S-REITs – Mapletree group at a premium to peers

Source: Bloomberg, Maybank Kim Eng

Fig 9: Free float market cap and index threshold for Warburg

Pincus owned S-REITs – below threshold on standalone basis

Source: Bloomberg, Maybank Kim Eng

5.8

4.6 4.7 4.9

5.6

4.8 1.42

1.70 1.57

1.00 1.08

1.19

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

AREIT MINT MLT CCT CMT MCT

FY20 div yield P/BV - RHS(%) (x)

Industrial Commercial

1.2

0.9 0.7 0.7

0.3 0.2

0.0

0.5

1.0

1.5

2.0

EREIT AAREIT CERT CACHE SSREIT ARAUS

Free-float market cap

FTSE EPRA NAREIT index threshold = SGD1.7b

(SGD

March 2, 2020 6

Singapore REITs

4. Industrial bottoming out; downside risk for

retail, hospitality

S-REITs have just ended their Dec 2019 quarter reporting, with stronger

DPU growth achieved by the commercial REITs. MCT delivered 5.6% YoY

DPU growth, due to the better-than-expected accretion from the MBC II

acquisition. ART’s DPU also rose 5.6%, helped by a capital distribution. Its

SGD160m in residual divestment gains could boost capital distributions

amid slower DPU growth.

A property tax rebate of 30% for hotels and serviced apartments as part of

Singapore’s Budget 2020 could support the loss in operating income on the

back of lower occupancies. But we expect hospitality REITs to suffer from

limited near-term demand visibility as tourist arrivals could fall by 25-30%

in 2020 if the Covid-19 outbreak is prolonged. We downgraded FEHT from

BUY to HOLD. Near-term DPU risks lie on the downside, with slower

occupancies due to postponements and cancellations. There is seasonality

in hospitality sector earnings, which are positively biased towards the 2H,

and which typically generate 55-60% of the REITs’ NPIs.

Retail REITs are set to receive a 15% tax rebate for qualifying commercial

properties but will fully pass this onto their tenants, in addition to various

assistance schemes, which we think will be targeted at F&B tenants (now

at 12-38% of their gross rental income) and could lower their NPIs. The

retail landscape could however be supported with the delay of a GST hike

in 2021, and the one-off cash hand-out for each adult Singaporean.

The industrial sector has likely bottomed out in our view. AREIT’s

Singapore properties achieved a stronger +8.8% rental reversion, up from

+4.0% in the earlier quarter, with positive reversions across all its asset

classes and better performance for its business parks (+9.2% in FY19) that

resulted in a 40-50bp tightening of its cap rates.

US office S-REITs continued to deliver better operational performance and

acquisitions. Prime announced a maiden deal at 6.9% NPI and a +2.7% DPU

accretion. We like their long WALEs, backed by 2+% pa rental escalations.

Fig 10: Forecast changes

REIT FY20 DPU change (%)

FY21 DPU change (%)

Current TP (SGD)

New TP (SGD)

% change Rating Comments

CMT - - 2.70 2.70 - BUY (from HOLD)

We upgrade rating on valuations; it now trades at above the 17-year historical average mean div yield. CMT will merge with CCT and we could see further acquisition catalysts from a larger debt and development headroom.

MLT 1.1 2.5 1.75 1.85 2.8 HOLD We raised DPUs to factor in the recently announced Kobe acquisition, which was completed on 28 Feb 2020.

CDLHT -17.7 -2.5 1.75 1.70 -2.9 BUY We lower occupancy assumptions for its Singapore properties from 88% to 60%, and for its Italy hotel from 80% to 60% for FY20.

FHT -5.0 -2.1 0.80 0.75 -6.3 BUY We lower occupancy assumptions for its Singapore properties from 88% to 60% for FY20.

Source: Maybank Kim Eng

March 2, 2020 7

Singapore REITs

Fig 11: S-REITs’ Dec 2019 quarter performances …

Company Revenue NPI DPU NAV/ unit Interest cover

Cost of debt

Interest fixed

Total debt Debt maturing

(SGD m) (SGD m) (SGD cts) (SGD) (x) (%) (%) (SGD m) In current FY (%)

Retail

Capita Mall Trust (CMT) 203.4 140.7 3.11 2.11 4.7 3.20 96.8 3,561 9

Frasers Ctr Trust (FCT) 49.8 36.3 3.06 2.22 5.9 2.57 53.0 1,054 18

Starhill Global (SGREIT) 48.7 37.2 1.13 0.88 3.6 3.29 89.0 1,142 2

SPH REIT* 60.1 47.0 1.38 0.95 - 2.91 65.9 1,100 25

Retail & Office

Suntec REIT (SUN) 96.7 63.3 2.35 2.13 2.9 3.05 75.0 3,663 8

Mapletree Comm. (MCT) 131.3 103.3 2.46 1.76 4.4 2.96 75.3 3,041 0

Lendlease Comm. (LREIT)** 21.4 16.2 1.29 0.82 10.8 0.86 100.0 529 0

Office

CapitaLand Comm. (CCT) 107.8 81.9 2.28 1.86 5.6 2.40 91.0 4,134 3

Keppel REIT (KREIT) 41.7 33.4 1.40 1.35 3.8 2.77 76.0 2,879 14

Frasers Comm. (FCOT) 37.8 26.7 2.40 1.61 5.7 2.90 86.0 663 29

OUE Comm. (OUECT) 86.8 70.6 0.84 0.62 3.3 3.40 75.0 2,648 22

Industrial

Ascendas REIT (AREIT) 239.7 182.3 3.51 2.16 5.1 2.90 75.8 4,653 8

Mapletree Ind. (MINT) 102.6 81.9 3.16 1.58 6.8 3.00 63.8 1,645 0

Mapletree Log. (MLT) 121.1 108.6 2.04 1.18 5.2 2.50 84.0 3,188 1

Cache Logistics Trust 27.2 20.5 1.38 0.59 3.8 3.84 66.8 513 9

AIMS AMP (AAREIT) 29.5 23.1 2.50 1.37 5.3 3.50 79.5 556 0

Keppel DC REIT (KDCREIT) 53.0 48.5 1.83 1.14 13.3 1.70 82.0 870 4

ESR REIT 62.5 46.2 1.00 0.43 3.7 3.92 88.8 1,200 0

Soilbuild BS REIT 22.8 17.4 0.93 0.59 3.7 3.51 81.9 521 0

Sabana SC Ind. REIT 19.4 13.0 0.77 0.57 4.5 3.90 36.2 277 0

Hospitality & Residential

Ascott Res. Trust (ART) 132.4 65.0 1.91 1.25 5.4 2.10 88.0 1,737 0

CDL HT (CDREIT)

49.1 35.7 2.09 1.46 5.9 2.30 64.1 1,062 8

Far East HT (FEHT) 30.9 28.1 1.04 0.86 - 2.90 65.5 1,003 2

Frasers HT (FHT) 39.5 30.0 1.17 0.73 4.7 2.50 68.9 854 0

Offshore REITs

Sasseur REIT 28.2 28.2 1.63 0.89 - 4.41 - 492 2

Dasin Retail Trust 22.1 16.8 1.72 1.37 - - - 706 -

Mapletree North Asia 67.3 50.8 1.67 1.41 2.5 2.46 88.0 2,892 7

CapitaLand Retail China 67.6 44.1 2.34 1.55 5.0 2.98 1,383 15

Lippo Malls Ind. RT 69.6 47.6 0.52 0.28 4.1 6.14 100.0 722 10

Manulife REIT (USD) 48.8 30.3 1.44 0.80 3.8 3.37 95.1 817 10

Prime REIT (USD)** 33.5 22.3 1.77 0.89 5.5 3.30 88.0 438 0

Keppel Pacific Oak US REIT 33.8 20.1 1.51 0.80 4.8 3.69 81.0 480 4

IREIT Global (EUR) 8.9 7.5 1.51 0.85 10.4 1.80 86.3 233 0

BHG Retail REIT 40.4 12.4 1.79 0.83 - 5.00 60.0 284 -

Frasers Log. & Ind. (FLT) 64.4 52.9 1.74 0.94 9.9 2.00 53.0 1,342 14

EC World REIT 25.9 24.5 1.51 0.85 4.40 72.0 655 -

Cromwell REIT (EUR) 50.9 33.6 1.03 0.52 8.6 1.50 97.5 831 2

ARA US REIT (USD) 39.3 9.2 1.08 0.87 4.5 3.90 83.0 244 0

Healthcare

Parkway Life REIT 28.0 27.3 3.34 1.95 14.1 0.80 83.0 740 11

First REIT 28.9 28.3 2.15 1.00 4.10 60.2 493 0

Total REITs

*Nov 2019 quarter for SPH REIT, ** NPI and DPU growth vs IPO projection, ***WALE by NLA

Source: Company data, Maybank Kim Eng

March 2, 2020 8

Singapore REITs

Fig 11: … cont’d

Company NPI DPU Occupancy Rental reversion/ RevPAR growth

WALE by revenue

AUM Debt headrm @ 45%

(% YoY) (% YoY) (%) (%) (years) (SGD m) (SGD m)

Retail

CMT 13.1 4.0 99.3 0.8 2.1 11,758 3,124

FCT 2.6 1.3 97.3 5.0 1.6 2,846 1,045

SGREIT (5.9) 0.0 96.5 - 5.9 3,081 501

SPH REIT* 12.4 3.0 99.3 10.9 2.6 4,211 1,502

SUN 4.2 (9.4) 99.1 - 2.7 9,838 1,548

MCT 17.6 5.6 98.3 5.0 2.6 8,922 1,853

LREIT 3.2 3.1 99.8 0.5 4.9 1,401 280

CCT 3.3 2.7 98.0 - 5.7 11,123 821

KREIT 9.3 2.9 99.1 - 4.9 8,032 860

FCOT 26.5 0.0 79.7 - 4.3 2,261 666

OUECT 92.6 12.0 95.2 Hospitality RevPAR: +1.9 3.6 6,770 750

AREIT 8.5 (12.3) 90.9 8.8 3.9 12,840 2,378

MINT 14.0 2.9 90.9 3.9 3.9 5,400 1,344

MLT 3.9 2.1 97.7 1.2 4.4 7,901 1,126

CACHE (12.4) (8.4) 95.3 (0.3) 3.0 1,334 178

AAREIT 18.8 0.0 89.4 (1.9) 4.0 1,547 355

KDCREIT 14.3 (1.1) 94.9 - 8.6 2,637 813

ESR REIT 9.3 (0.5) 90.5 0.0 3.8 3,162 461

SBREIT (14.8) (36.3) 84.0 (11.6) 3.4 1,350 204

SSREIT 0.0 8.5 75.4 1.2 2.8 964 295

ART 3.0 5.6 - (1.8) - 6,800 1,802

CDREIT (1.2) 0.0 87.2 SG: +5.1, NZ: +0.5, UK: -3.7, GM: -10.2, IL: +2.6, MD: -18.6, JP: -14.4

- 2,850 526

FEHT (1.0) (5.0) Hotel: 86.6, SR: 83.7 Hotel: -0.6, SR: +1.9 2,654 401

FHT 6.8 6.1 AU -3.4, SG +6.7, UK +4.9, JP -2.4 MY +11.5 2,128 433

SASSR (9.0) (18.5) 96.0 - 1.1 1,587 305

DASIN 44.1 (6.0) 98.8 - 4.3 1,183 321

MAGIC (40.0) (13.3) 96.3 FW (Retail): +12, (Office): +6, GP: -3, SP: +9, JP: -2 2.7 7,583 1,107

CRCT 22.9 (3.3) 96.7 4.7 2.4 20,031 599

LIMRT 23.9 73.3 91.5 4.0*** 1,697 335

MUST 18.9 (5.9) 95.8 2.0 5.9 2,095 296

MUST 3.0 9.0 95.8 - 5.1 1,255 266

KORE* 37.1 20.8 93.6 14.3 5.6 1,257 191

IREIT 0.1 (5.6) 94.6 4.2 575 100

BHGREIT 11.6 (26.0) 96.7 - 3.4 910 277

FLT 8.1 (2.2) 100.0 - 6.2 3,813 652

ECWORLD 17.4 (3.8) 100.0 - 4.1 1,568 221

CERT** 60.4 30.4 93.2 3.7 4.4*** 2,103 334

ARAUS** (32.9) (12.9) 77.0 6.3 - 705 177

PREIT 2.3 1.8 1,966 286

FIRT (0.8) 0.0 100.0 1,341 272

Total

**Nov 2019 quarter for SPH REIT, ** NPI and DPU growth vs IPO projection, ***WALE by NLA

Source: Company data, Maybank Kim Eng

March 2, 2020 9

Singapore REITs

Fig 12: S-REITs valuation comparison

Company Rating Price TP Upside Yield Total return

MC ADTV Free

Float

BVPS P/BV Dividend yield (%) Gearing

(D/A)

(SGD) (SGD) (%) (%) (%) (SGD b) (SGD m) (%) (SGD) (x) 18 19 20E 21E (%)

Retail 15.8 41.8 1.01 5.3 5.2 5.6 6.6 34

Capita Mall Trust (CMT) Buy 2.27 2.70 18.9 5.1 24.1 8.4 30.6 65 2.11 1.08 5.1 5.1 5.6 5.8 33

Frasers Ctr Trust (FCT) Hold 2.79 2.85 2.2 4.3 6.5 3.1 6.6 63 2.22 1.26 4.3 4.3 4.5 4.9 33

Starhill Global (SGREIT) Hold 0.68 0.75 11.1 6.6 17.7 1.5 1.5 54 0.88 0.77 6.7 6.6 6.8 6.9 36

SPH REIT Buy 1.01 1.15 13.9 5.6 19.5 2.8 3.1 29 1.06 0.95 5.5 5.6 5.8 5.9 27

Retail & Office 12.7 45.3 1.00 5.1 4.9 5.6 7.3 35

Suntec REIT (SUN) NR 1.70 4.8 17.6 63 2.13 0.80 5.9 5.9 5.9 5.4 38

Mapletree Comm. (MCT) Hold 2.10 2.45 16.7 4.4 21.1 6.9 27.7 68 1.76 1.19 4.4 4.4 4.8 4.9 33

Lendlease REIT (LREIT) NR 0.86 1.0 74 n.a. n.a. n.a. 4.5 6.2 11.6 35

Office 15.4 36.4 0.92 5.7 5.6 5.7 5.8 35

Capita Comm. (CCT) NR 1.86 7.2 21.9 70 1.86 1.00 4.8 4.8 4.9 5.0 35

Keppel REIT (KREIT) NR 1.23 4.2 9.0 55 1.36 0.90 4.9 4.9 5.1 4.9 36

Frasers Comm. (FCOT) NR 1.64 1.5 3.8 74 1.64 1.00 5.9 6.0 6.0 6.1 29

OUE Comm. (OUECT) NR 0.48 2.6 1.7 27 0.62 0.78 7.1 6.5 7.1 7.2 40

Industrial 30.1 95.3 1.29 6.5 6.2 6.5 6.7 36

Ascendas REIT (AREIT) Buy 3.06 3.35 9.5 5.4 14.9 8.7 37.7 80 2.16 1.42 5.2 5.4 5.8 5.9 35

Mapletree Ind. (MINT) Buy 2.68 2.95 10.1 4.5 14.6 5.9 16.3 73 1.58 1.70 4.5 4.5 4.6 5.2 34

Mapletree Log. (MLT) Hold 1.85 1.85 0.0 4.3 4.3 7.0 21.9 71 1.18 1.57 4.3 4.3 4.7 4.8 38

Cache Log. Trust (CACHE) Buy 0.69 0.80 16.8 8.5 25.2 0.7 0.9 90 0.68 1.00 8.6 8.5 8.9 9.3 40

AIMS APAC (AAREIT) Buy 1.40 1.60 14.3 7.5 21.8 1.0 1.9 86 1.37 1.02 7.3 7.5 7.5 7.8 35

Keppel DC REIT (KDCREIT) NR 2.32 3.8 11.3 76 1.14 2.03 3.1 3.3 3.8 4.0 31

ESR REIT NR 0.53 1.9 4.1 61 0.43 1.23 7.4 7.5 7.5 7.5 42

Soilbuild BS REIT (SBREIT) NR 0.50 0.6 0.7 69 0.59 0.84 11.3 8.6 9.0 9.1 38

Sabana SC REIT (SSREIT) NR 0.45 0.5 0.4 72 0.57 0.80 n.a. 5.9 6.5 6.6 31

Hospitality & Residential 7.7 18.9 0.88 6.2 6.2 5.7 6.4 36

Ascott Res. Trust (ART) Hold 1.22 1.40 14.8 5.8 20.5 3.6 9.5 60 1.51 0.81 5.9 5.8 6.3 6.4 34

CDL HT (CDLHT) Buy 1.54 1.70 13.6 6.3 19.9 1.7 6.7 62 1.52 1.01 6.0 6.3 5.0 6.1 35

Far East HT (FEHT) Buy 0.67 0.75 5.3 5.8 11.1 1.2 1.9 41 0.86 0.77 6.4 5.8 5.3 6.0 39

Frasers HT (FHT) Buy 0.69 0.80 16.8 6.7 23.5 1.2 0.7 38 0.72 0.95 6.4 6.7 6.4 6.9 36

Offshore REITs 18.0 46.8 0.92 7.4 7.3 7.4 7.5 36

Sasseur REIT (SASSR) Buy 0.79 0.95 20.3 8.3 28.5 0.9 2.6 21 0.85 0.93 7.6 8.3 7.6 8.0 28

Dasin Retail Trust (DASIN) NR 0.82 0.5 0.3 34 1.39 0.59 8.8 n.a. n.a. n.a. 37

Mapletree N. Asia (MAGIC) NR 1.10 3.5 13.4 66 1.42 0.77 7.0 7.1 7.0 7.0 37

Capita Retail China (CRCT) NR 1.41 1.7 5.8 65 1.55 0.91 7.2 7.2 7.4 7.8 37

Lippo Malls Ind. RT (LMIRT) NR 0.21 0.6 0.9 63 0.28 0.74 n.a. n.a. n.a. n.a. 36

Manulife US REIT (MUST) Buy 0.97 1.15 18.6 6.2 24.7 2.1 6.6 93 0.83 1.17 6.2 6.2 6.5 6.6 38

Prime US REIT (PRIME) Buy 0.96 1.10 15.2 6.6 21.8 1.4 1.3 52 0.86 1.11 n.a. 6.6 6.8 7.4 34

Keppel P.O. US REIT (KORE) NR 0.74 1.0 1.7 81 0.89 0.83 8.3 8.2 8.6 8.6 37

IREIT Global (IREIT) NR 0.77 0.5 0.4 44 0.84 0.92 n.a. n.a. n.a. n.a. 39

BHG Retail REIT (BHGREIT) NR 0.63 0.3 0.5 28 0.79 0.79 n.a. n.a. n.a. n.a. 36

Frasers Log. & Ind. (FLT) NR 1.24 2.8 9.5 69 0.95 1.31 5.7 5.5 5.6 5.6 36

EC World REIT (ECWREIT) NR 0.71 0.6 1.5 52 0.84 0.84 8.8 8.7 9.3 9.2 39

Cromwell REIT (CEREIT) NR 0.53 2.1 2.4 49 0.53 1.00 7.4 7.7 7.5 7.5 37

Healthcare 2.9 3.9 1.37 6.3 6.3 6.4 6.3 36

Parkway Life REIT (PREIT) NR 3.43 2.1 1.4 64 1.95 1.76 3.8 3.8 3.9 3.9 37

First REIT NR 0.98 0.8 2.5 73 1.00 0.98 8.8 8.8 8.9 8.8 35

Total REITs 103 288 1.04 6.3 6.1 6.3 6.8 35

S-REIT yield spread 3.1

FSTREI Index 4.5

SGS 10Y bond yield 1.4

Prices as of 28 Feb 2020. NR = Not Rated.

Source: Bloomberg, FactSet, Companies, Maybank Kim Eng

March 2, 2020 10

Singapore REITs

Fig 13: Sector-wide balance sheets remain strong; gearing is

manageable at 26.8-41.5%

Source: Company data, as of end-Dec 2019

Fig 14: ….with debt headroom amounting to 3-37% of their

AUMs

Source: Company data, as of end-Dec 2019

Fig 15: Developed markets’ REIT valuations: S-REITs offer the

fourth-highest dividend yields and rank fifth on yield spreads

Source: Bloomberg, FactSet, Maybank Kim Eng

Fig 16: S-REITs’ dividend yields and spreads over SG 10-year

government bonds: spreads are at 17-year averages

Source: Bloomberg, Maybank Kim Eng

Fig 17: Singapore’s macroeconomic indicators and forecasts – lower rates supportive of valuations

2016 2017 2018 2019 2020E 2021E

Real GDP (%) 3.2 4.3 3.4 0.7 1.1 2.0

Private Consumption (%) 3.2 3.0 4.2 3.7 1.1 2.3

Government Consumption (%) 3.8 3.1 2.9 2.8 3.5 3.2

Gross Fixed Capital Formation (%) 1.5 4.2 (3.4) (0.2) 1.8 2.1

Exports of Goods & Services (%) (0.0) 6.2 8.1 (1.6) 1.6 3.0

Imports of Goods & Services (%) 0.2 7.5 7.3 (1.7) 1.9 3.7

Current Account Balance (% of GDP) 17.6 16.3 17.2 17.0 16.5 17.0

Fiscal Balance (% of GDP) 1.4 2.3 0.7 (0.3) (2.1) 0.3

Inflation Rate (%) (0.5) 0.6 0.4 0.6 0.7 1.3

Unemployment Rate (%) 2.1 2.2 2.1 2.2 2.1 2.1

Exchange Rate (per USD, end-period) 1.45 1.34 1.36 1.35 1.35 1.33

3M SIBOR (% p.a., end-period) 0.97 1.50 1.89 1.77 1.60 1.60

Source: CEIC, Maybank Kim Eng

26.8

41.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

SPH

REIT

SASSR

FCO

TKD

CREIT

SSREIT

ARAU

SCM

TFCT

MCT

ART

PRIM

EM

INT

FIR

ST

LREIT

CCT

AREIT

AAREIT

CD

LH

TFH

TFLT

BH

GKREIT

LM

IRT

SG

REIT

DASIN

CRCT

CEREIT

KO

RE

MN

ACT

PREIT

MLT

SU

NM

UST

SBREIT

ECW

REIT

FEH

TIR

EIT

CACH

EO

UECT

ESRREIT

Leverage Average = 35.4%(%)

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

AREIT

CM

TCCT

SU

NM

CT

KREIT

MLT

MN

ACT

ART

OU

ECT

MIN

TSPH

REIT

CRCT

FLT

ESRREIT

SG

REIT

CD

LH

TFCT

FEH

TKD

CREIT

FCO

TFH

TCEREIT

MU

ST

PREIT

LM

IRT

SASSR

ECW

REIT

AAREIT

LREIT

SBREIT

FIR

ST

CACH

EKO

RE

PRIM

ED

ASIN

SSREIT

BH

GARAU

SIR

EIT

AUM Debt headroom of AUM (RHS)(SGD b) (%)

490

386 357 313 397

218

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0

200

400

600

800

1000

1200

HK AU EZ SG JP US

REIT yield 10Y govt bond yield spread P/B - RHS(bp) (x)

0

2

4

6

8

10

12

14

16

Dec-0

2Jun-0

3D

ec-0

3Jun-0

4D

ec-0

4Jun-0

5D

ec-0

5Jun-0

6D

ec-0

6Jun-0

7D

ec-0

7Jun-0

8D

ec-0

8Jun-0

9D

ec-0

9Jun-1

0D

ec-1

0Jun-1

1D

ec-1

1Jun-1

2D

ec-1

2Jun-1

3D

ec-1

3Jun-1

4D

ec-1

4Jun-1

5D

ec-1

5Jun-1

6D

ec-1

6Jun-1

7D

ec-1

7Jun-1

8D

ec-1

8Jun-1

9D

ec-1

9

S-REIT - SG 10Y govt bond yield spreadS-REITSG 10Y govt bond-1sdAvg+1sd

(%)

+1sd = 7.8% Avg = 6.3% -1sd = 4.8%

March 2, 2020 11

Singapore REITs

Research Offices

MACRO

Sadiq CURRIMBHOY Head of Regional Macro Research (65) 6231 5836 sadiq@maybank-ke.com.sg

ECONOMICS

Suhaimi ILIAS Chief Economist Malaysia | Philippines | Global (603) 2297 8682 suhaimi_ilias@maybank-ib.com

CHUA Hak Bin Regional Thematic Macroeconomist (65) 6231 5830 chuahb@maybank-ke.com.sg

LEE Ju Ye Singapore | Thailand (65) 6231 5844 leejuye@maybank-ke.com.sg

Linda LIU Singapore | Vietnam (65) 6231 5847 lindaliu@maybank-ke.com.sg

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William POH (603) 2297 8683 william.poh@maybank-ib.com

FX

Saktiandi SUPAAT Head of FX Research (65) 6320 1379 saktiandi@maybank.com.sg

Christopher WONG (65) 6320 1347 wongkl@maybank.com.sg

TAN Yanxi (65) 6320 1378 tanyx@maybank.com.sg

Fiona LIM (65) 6320 1374 fionalim@maybank.com.sg

STRATEGY

Willie CHAN

Regional (852) 2268 0631 williechan@kimeng.com.hk

Anand PATHMAKANTHAN

ASEAN (603) 2297 8783 anand.pathmakanthan@maybank-ib.com

FIXED INCOME

Winson PHOON, ACA (65) 6812 8807 winsonphoon@maybank-ke.com.sg

SE THO Mun Yi (603) 2074 7606 munyi.st@maybank-ib.com

REGIONAL EQUITIES

Anand PATHMAKANTHAN Head of Regional Equity Research (603) 2297 8783 anand.pathmakanthan@maybank-ib.com

WONG Chew Hann, CA Head of ASEAN Equity Research (603) 2297 8686 wchewh@maybank-ib.com

ONG Seng Yeow Research, Technology & Innovation

(65) 6231 5839 ongsengyeow@maybank-ke.com.sg

MALAYSIA

Anand PATHMAKANTHAN, Head of Research (603) 2297 8783 anand.pathmakanthan@maybank-ib.com • Strategy

Desmond CH’NG, BFP, FCA (603) 2297 8680 desmond.chng@maybank-ib.com • Banking & Finance

LIAW Thong Jung (603) 2297 8688 tjliaw@maybank-ib.com • Oil & Gas Services- Regional • Automotive

ONG Chee Ting, CA (603) 2297 8678 ct.ong@maybank-ib.com • Plantations - Regional

YIN Shao Yang, CPA (603) 2297 8916 samuel.y@maybank-ib.com • Gaming – Regional • Media

TAN Chi Wei, CFA (603) 2297 8690 chiwei.t@maybank-ib.com • Power • Telcos

WONG Wei Sum, CFA (603) 2297 8679 weisum@maybank-ib.com • Property

LEE Yen Ling (603) 2297 8691 lee.yl@maybank-ib.com • Glove • Ports • Shipping • Healthcare • Petrochem

Kevin WONG (603) 2082 6824 kevin.wong@maybank-ib.com • REITs • Consumer Discretionary • Technology

Jade TAM

(603) 2297 8687 jade.tam@maybank-ib.com • Consumer Staples

TEE Sze Chiah Head of Retail Research (603) 2082 6858 szechiah.t@maybank-ib.com

Nik Ihsan RAJA ABDULLAH, MSTA, CFTe (603) 2297 8694 nikmohdihsan.ra@maybank-ib.com • Chartist

Amirah AZMI (603) 2082 8769 amirah.azmi@maybank-ib.com • Retail Research

SINGAPORE

CHUA Su Tye (65) 6231 5842 chuasutye@maybank-ke.com.sg • REITs

LAI Gene Lih, CFA (65) 6231 5832 laigenelih@maybank-ke.com.sg • Technology • Healthcare

Thilan WICKRAMASINGHE (65) 6231 5840 thilanw@maybank-ke.com.sg • Banks • Consumer

TAN Chin Poh Head of Retail Research (65) 6231 5928 chinpoh@maybank-ke.com.sg

Eric ONG (65) 6231 5924 ericong@maybank-ke.com.sg • Retail Research

Matthew SHIM (65) 6231 5929 matthewshim@maybank-ke.com.sg • Retail Research

Kareen CHAN (65) 6231 5926 kareenchan@maybank-ke.com.sg • Retail Research

INDIA

Jigar SHAH Head of Research

(91) 22 4223 2632 jigar@maybank-ke.co.in

• Strategy • Oil & Gas • Automobile • Cement

Neerav DALAL

(91) 22 4223 2606 neerav@maybank-ke.co.in

• Software Technology • Telcos

Kshitiz PRASAD

(91) 22 4223 2607

kshitiz@maybank-ke.co.in

• Banks

INDONESIA

Isnaputra ISKANDAR Head of Research (62) 21 8066 8680 isnaputra.iskandar@maybank-ke.co.id • Strategy • Metals & Mining • Cement • Autos • Consumer • Utility

Rahmi MARINA (62) 21 8066 8689 rahmi.marina@maybank-ke.co.id • Banking & Finance

Aurellia SETIABUDI (62) 21 8066 8691 aurellia.setiabudi@maybank-ke.co.id • Property

Arnanto JANURI (62) 21 8066 8683 arnanto.januri @maybank-ke.co.id

• Construction

PHILIPPINES

Katherine TAN (63) 2 8849 8843 kat_tan@maybank-atrke.com • Banks • Conglomerates • Ports

Romel LIBO-ON (63) 2 8849 8844 romel_libo-on@maybank-atrke.com • Property

Kayzer LLANDA (63) 2 8849 8839 Kayzer_llanda@maybank-atrke.com • Utilities

Fredrick De GUZMAN (63) 2 8849 8847 fredrickdaniel.deguzman@maybank.com • Consumer

THAILAND

Maria LAPIZ Head of Institutional Research Dir (66) 2257 0250 | (66) 2658 6300 ext 1399 Maria.L@maybank-ke.co.th • Strategy • Consumer • Materials • Services

Teerapol UDOMVEJ, CFA (66) 2658 6300 ext 1394 teerapol.U@maybank-ke.co.th • Healthcare

Jesada TECHAHUSDIN, CFA (66) 2658 6300 ext 1395 jesada.t@maybank-ke.co.th • Banking & Finance

Kaushal LADHA, CFA (66) 2658 6300 ext 1392 Kaushal.l@maybank-ke.co.th • Oil & Gas

Ekachai TARAPORNTIP Head of Retail Research (66) 2658 5000 ext 1530 Ekachai.t@maybank-ke.co.th

Surachai PRAMUALCHAROENKIT (66) 2658 5000 ext 1470 Surachai.p@maybank-ke.co.th • Auto • Conmat • Contractor • Steel

Suttatip PEERASUB (66) 2658 5000 ext 1430 suttatip.p@maybank-ke.co.th • Media • Commerce

Jaroonpan WATTANAWONG (66) 2658 5000 ext 1404 jaroonpan.w@maybank-ke.co.th • Transportation • Small cap

Thanatphat SUKSRICHAVALIT (66) 2658 5000 ext 1401 thanaphat.s@maybank-ke.co.th • Media • Electronics

Wijit ARAYAPISIT (66) 2658 5000 ext 1450 wijit.a@maybank-ke.co.th • Strategist

Kritsapong PATAN (66) 2658 5000 ext 1310 kritsapong.p@maybank-ke.co.th • Chartist

VIETNAM

LE Hong Lien, ACCA Head of Institutional Research (84 28) 44 555 888 ext 8181 lien.le@maybank-kimeng.com.vn • Strategy • Consumer • Diversified

LE Nguyen Nhat Chuyen (84 28) 44 555 888 ext 8082 chuyen.le@maybank-kimeng.com.vn • Oil & Gas

QUAN Trong Thanh (84 28) 44 555 888 ext 8184 thanh.quan@maybank-kimeng.com.vn • Banks

NGUYEN Thi Sony Tra Mi (84 28) 44 555 888 ext 8084 mi.nguyen@maybank-kimeng.com.vn • Consumer

Tyler Manh Dung Nguyen (84 28) 44 555 888 ext 8180 dung.nguyen@maybank-kimeng.com.vn • Utilities

NGUYEN Thi Ngan Tuyen Head of Retail Research (84 28) 44 555 888 ext 8081 tuyen.nguyen@maybank-kimeng.com.vn • Food & Beverage • Oil & Gas • Banking

NGUYEN Thanh Lam (84 28) 44 555 888 ext 8086 thanhlam.nguyen@maybank-kimeng.com.vn • Technical Analysis

March 2, 2020 12

Singapore REITs

APPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLAIMERS AND DISCLOSURES

DISCLAIMERS This research report is prepared for general circulation and for information purposes only and under no circumstances should it be considered or intended as an offer to sell or a solicitation of an offer to buy the securities referred to herein. Investors should note that values of such securities, if any, may fluctuate and that each security’s price or value may rise or fall. Opinions or recommendations contained herein are in form of technical ratings and fundamental ratings. Technical ratings may differ fr om fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from the relevant jurisdiction’s stock exchange in the equity analysis. Accordingly, investors’ returns may be less than the original sum invested. Past performance is not necessarily a guide to future performance. This report is not intended to provide personal investment advice and does not take into account the specific investment objectives, the financial situation and the particular needs of persons who may receive or read this report. Investors should therefore seek financial, legal and other advice regarding the appropriateness of investing in any securities or the investment strategies d iscussed or recommended in this report.

The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently verified by Maybank Investment Bank Berhad, its subsidiary and affiliates (collectively, “MKE”) and consequently no representation is made as to the accuracy or completeness of this report by MKE and it should not be relied upon as such. Accordingly, MKE and its officers, directors, associates, connected parties and/or employees (collectively, “Representatives” ) shall not be liable for any direct, indirect or consequential losses or damages that may arise from the use or reliance of this report. Any information, opinions or recommendations contained herein are subject to change at any time, without prior notice.

This report may contain forward looking statements which are often but not always identified by the use of words such as “anticipate”, “believe”, “estimate”, “intend”, “plan”, “expect”, “forecast”, “predict” and “project” and statements that an event or result “may”, “will”, “can”, “should”, “could” or “might” occur or be achieved and other similar expressions. Such forward looking statements are based on assumptions made and information currently available to us and are subject to certain risks and uncertainties that could cause the actual results to differ materially from those expressed in any forward looking statements. Readers are cautioned not to place undue relevance on these f orward-looking statements. MKE expressly disclaims any obligation to update or revise any such forward looking statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrence of unanticipated events.

MKE and its officers, directors and employees, including persons involved in the preparation or issuance of this report, may, to the extent permitted by law, from time to time participate or invest in financing transactions with the issuer(s) of the securities mentioned in this report, perform services for or solic it business from such issuers, and/or have a position or holding, or other material interest, or effect transactions, in such securities or options thereon, or other investments related thereto. In addition, it may make markets in the securities mentioned in the material presented in this report. One or more directors, officers and/or employees of MKE may be a director of the issuers of the securities mentioned in this report to the extent permitted by law.

This report is prepared for the use of MKE’s clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in whole or in part in any form or manner without the prior express written consent of MKE and MKE and its Representatives accepts no liability whatsoever for the actions of third parties in this respect.

This report is not directed to or intended for distribution to or use by any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. This report is for distribution only under such circumstances as may be permitted by applicable law. The securities described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. Without prejudice to the foregoing, the reader is to note that additional disclaimers, warnings or qualifications may apply based on geographical location of the person or entity receiving this repor t.

Malaysia Opinions or recommendations contained herein are in the form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from Bursa Malaysia Securities Berhad in the equity analysis.

Singapore This report has been produced as of the date hereof and the information herein may be subject to change. Maybank Kim Eng Research Pte. Ltd. (“Maybank KERPL”) in Singapore has no obligation to update such information for any recipient. For distribution in Singapore, recipients of this report are to contact Maybank KERPL in Singapore in respect of any matters arising from, or in connection with, this report. If the recipient of this report is not an accredited investor, expert investor or institutional investor (as defined under Section 4A of the Singapore Securities and Futures Act), Maybank KERPL shall be legally liable for the contents of this report, with such liability being limited to the extent (if any) as permitted by law.

Thailand Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the prior written permission of Maybank Kim Eng Securities (Thailand) Public Company Limited. Maybank Kim Eng Securities (Thailand) Public Company Limited (“MBKET”) accepts no liability whatsoever for the actions of third parties in this respect.

Due to different characteristics, objectives and strategies of institutional and retail investors, the research products of MBKET Institutional and Retail Research departments may differ in either recommendation or target price, or both. MBKET reserves the rights to disseminate MBKET Retail Research reports to institutional investors who have requested to receive it. If you are an authorised recipient, you hereby tacitly acknowledge that the research reports from MBKET Retail Research are first pr oduced in Thai and there is a time lag in the release of the translated English version.

The disclosure of the survey result of the Thai Institute of Directors Association (“IOD”) regarding corporate governance is made pursuant to the policy of the Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an evaluation of operation and is not based on inside information. The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey may be changed after that date. MBKET does not confirm nor certify the accuracy of such survey result.

The disclosure of the Anti-Corruption Progress Indicators of a listed company on the Stock Exchange of Thailand, which is assessed by Thaipat Institute, is made in order to comply with the policy and sustainable development plan for the listed companies of the Office of the Securities and Exchange Commission. Thaipat Institute made this assessment based on the information received from the listed company, as stipulated in the form for the assessment of Anti-corruption which refers to the Annual Registration Statement (Form 56-1), Annual Report (Form 56-2), or other relevant documents or reports of such listed company. The assessment result is therefore made from the perspective o f Thaipat Institute that is a third party. It is not an assessment of operation and is not based on any inside information. Since this assessment is only the assessment result as of the date appearing in the assessment result, it may be changed after that date or when there is any change to the relevant information. Nevertheless, MBKET does not confirm, verify, or certify the accuracy and completeness of the assessment result.

US This third-party research report is distributed in the United States (“US”) to Major US Institutional Investors (as defined in Rule 15a -6 under the Securities Exchange Act of 1934, as amended) only by Maybank Kim Eng Securities USA Inc (“Maybank KESUSA”), a broker-dealer registered in the US (registered under Section 15 of the Securities Exchange Act of 1934, as amended). All responsibility for the distribution of this report by Maybank KESUSA in the US shall be borne by Maybank KESUSA. This report is not directed at you if MKE is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to you. You should satisfy yourself before reading it that Maybank KESUSA is permitted to provide research material concerning investments to you under relevant legislation and regulations. All U.S. persons receiving and/or accessing this report and wishing to effect transactions in any security mentioned within must do so with: Maybank Kim Eng Securities USA Inc. 400 Park Avenue, 11th Floor, New York, New York 10022, 1-(212) 688-8886 and not with, the issuer of this report.

March 2, 2020 13

Singapore REITs

Disclosure of Interest

Malaysia: MKE and its Representatives may from time to time have positions or be materially interested in the securities referred to he rein and may further act as market maker or may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment banking services, advisory and other services for or relating to those companies. Singapore: As of 2 March 2020, Maybank KERPL and the covering analyst do not have any interest in any companies recommended in this research report. Thailand: MBKET may have a business relationship with or may possibly be an issuer of derivative warrants on the securities /companies mentioned in the research report. Therefore, Investors should exercise their own judgment before making any investment decisions. MBKET, its associates, directors, connected parties and/or employees may from time to time have interests and/or underwriting commitments in the securities mentioned in this report. Hong Kong: As of 2 March 2020, KESHK and the authoring analyst do not have any interest in any companies recommended in this research report. India: As of 2 March 2020, and at the end of the month immediately preceding the date of publication of the research report, KESI, authoring analyst o r their associate / relative does not hold any financial interest or any actual or beneficial ownership in any shares or having any conflict of interest in the subject companies except as otherwise disclosed in the research report.

In the past twelve months KESI and authoring analyst or their associate did not receive any compensation or other benefits from the subject companies or third party in connection wi th the research report on any account what so ever except as otherwise disclosed in the research report.

MKE may have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market in issues of, any or all of the entities mentioned in this report or may be providing, or have provided within the previous 12 months, significant advice or investment services in relation to the investment concerned or a related investment and may receive compensation for the services provided from the companies covered in this report.

OTHERS

Analyst Certification of Independence

The views expressed in this research report accurately reflect the analyst’s personal views about any and all of the subject securities or issuers; and no part of the research analyst’s compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in the report.

Reminder

Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to soph isticated investors who are capable of understanding and assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial and political factors (including, but not limited to, spot and forward interest and exchange rates), time to maturity, market conditions and volatility and the credit quality of any issuer or reference issuer. Any investor interested in purchasing a structured product should conduct its own analysis of the product and consult with its own professional advisers as to the risks involved in making such a purchase.

No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of MKE.

Definition of Ratings

Maybank Kim Eng Research uses the following rating system

BUY Return is expected to be above 10% in the next 12 months (including dividends)

HOLD Return is expected to be between 0% to 10% in the next 12 months (including dividends)

SELL Return is expected to be below 0% in the next 12 months (including dividends)

Applicability of Ratings

The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment ratings as we do not actively follow developments in these companies.

UK This document is being distributed by Maybank Kim Eng Securities (London) Ltd (“Maybank KESL”) which is authorized and regula ted, by the Financial Conduct Authority and is for Informational Purposes only. This document is not intended for distribution to anyone defined as a Retail Client under the Financial Services and Markets Act 2000 within the UK. Any inclusion of a third party link is for the recipients convenience only, and that the firm does not take any responsibility for its comments or accuracy, and that access to such li nks is at the individuals own risk. Nothing in this report should be considered as constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own independent tax advisers.

DISCLOSURES

Legal Entities Disclosures Malaysia: This report is issued and distributed in Malaysia by Maybank Investment Bank Berhad (15938- H) which is a Participating Organization of Bursa Malaysia Berhad and a holder of Capital Markets and Services License issued by the Securities Commission in Malaysia. Singapore: This report is distributed in Singapore by Maybank KERPL (Co. Reg No 198700034E) which is regulated by the Monetary Authority of Singapore. Indonesia: PT Maybank Kim Eng Securities (“PTMKES”) (Reg. No. KEP-251/PM/1992) is a member of the Indonesia Stock Exchange and is regulated by the Financial Services Authority (Indonesia). Thailand: MBKET (Reg. No.0107545000314) is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and the Securities and Exchange Commission. Philippines: Maybank ATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securities and Exchange Commission. Vietnam: Maybank Kim Eng Securities Limited (License Number: 117/GP-UBCK) is licensed under the State Securities Commission of Vietnam. Hong Kong: KESHK (Central Entity No AAD284) is regulated by the Securities and Futures Commission. India: Kim Eng Securities India Private Limited (“KESI”) is a participant of the National Stock Exchange of India Limited and the Bombay Stock Exchange and is regulated by Securities and Exchange Board of India (“SEBI”) (Reg. No. INZ000010538). KESI is also registered with SEBI as Category 1 Merchant Banker (Reg. No. INM 000011708) and as Research Analyst (Reg No: INH000000057) US: Maybank KESUSA is a member of/ and is authorized and regulated by the FINRA – Broker ID 27861. UK: Maybank KESL (Reg No 2377538) is authorized and regulated by the Financial Conduct Authority.

March 2, 2020 14

Singapore REITs

Malaysia Maybank Investment Bank Berhad

(A Participating Organisation of

Bursa Malaysia Securities Berhad)

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Maybank Kim Eng Research Pte Ltd

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London EC4V 4AY, UK

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New York Maybank Kim Eng Securities USA

Inc

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New York, New York 10022,

U.S.A.

Tel: (212) 688 8886

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Stockbroking Business:

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(Thailand) Public Company Limited

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Saudi Arabia In association with

Anfaal Capital

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No.1 - Al-Faisaliyah,Madina Road,

P.O.Box 126575 Jeddah 21352

Kingdom of Saudi Arabia

Tel: (966) 920023423

South Asia Sales Trading Kevin Foy

Regional Head Sales Trading

kevinfoy@maybank-ke.com.sg

Tel: (65) 6636-3620

US Toll Free: 1-866-406-7447

North Asia Sales Trading Andrew Lee

andrewlee@kimeng.com.hk

Tel: (852) 2268 0283

US Toll Free: 1 877 837 7635

Indonesia Iwan Atmadjaja iatmadjaja2@bloomberg.net (62) 21 8066 8555

London Greg Smith gsmith@maybank-ke.co.uk Tel: (44) 207-332-0221

New York James Lynch jlynch@maybank-keusa.com Tel: (212) 688 8886

India Sanjay Makhija sanjaymakhija@maybank-ke.co.in Tel: (91)-22-6623-2629

Philippines Keith Roy keith_roy@maybank-atrke.com Tel: (63) 2 848-5288

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