TCT H1 11 Results

Treasury China Trust – Leading the Way 1H 2011 Results

26 July 2011

This document does not constitute an offer to sell or the solicitation of an offer to purchase any interest in or related to any real estate, securities, or other investment products or assets. This document is provided for informational purposes only and is intended solely for the person to whom it is delivered. Information contained in this document is accurate only as of its date, regardless of the time of delivery or of any investment, and does not purport to be complete. This document may contain material non-public information.

This document is confidential and may not be reproduced or distributed without the express written consent of Treasury Holdings Real Estate Pte. Ltd. (“Trustee-Manager”). Any offer to sell or the solicitation of an offer to purchase any interest in or related to any real estate, securities, or other investment products or assets may only be made by means of delivery of an offering memorandum which will contain material information not included herein and shall supersede, amend and supplement this document in its entirety.

Certain statements in this document constitute “forward-looking statements”. Such forward-looking statements and financial information are based on numerous assumptions regarding the TCT’s present and future business, and its strategies and the environment in which TCT will operate in the future. Such forward-looking statements and financial information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of TCT, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements and financial information.

These forward-looking statements and financial information speak only as at the date of this announcement. TCT expressly disclaims any obligation or undertaking to release publicly any updates of or revisions to any forward-looking statement or financial information contained herein to reflect any change in TCT’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement or information is based, subject to compliance with all applicable laws and regulations and/or the rules of the SGX-ST and/or any other relevant regulatory or supervisory body or agency.

Listed on SGX, TCT is a leading owner, manager and developer of commercial real estate in China with AUM in excess of RMB 12.5 billion and a quality portfolio of more than 800,000sqm of office and retail properties comprising 4 income producing assets and 3 development assets, administered by an on-the-ground team of 80 dedicated professionals Uniquely positioned as a “Total Return Vehicle”, TCT is committed to deliver comprehensive value to unitholders through a distinctive business model that functionally integrates all facets of the real estate cycle of acquisition, ownership, development/redevelopment and management Treasury Building, Shanghai Beijing Logistics Park, Beijing 12 storey office tower Logistics warehouse facilities GFA: 19,643 sqm GFA: 75,028 sqm Completion scheduled for 2011

Central Avenue, Qingdao

Existing 45,178 sqm mall 88.8% occupied Central Plaza, Shanghai Beijing 3 separate but contiguous retail development sites totaling 335,000sqm GFA CentralCentral 25 storey Plaza,Plaza, office ShanghaiShanghai building and 3 level retail podium Huai Hai Mall, Shanghai ¹¹¹ GFA: 47,247 sqm Qingdao Street front four storey retail podium GFA: 7,620 sqm Shanghai

City Center, Shanghai City Center Extension, Shanghai Twin 25 storey office towers and a City Center, Shanghai Mixed use office tower over 7 level retail 7 level retail podium podium GFA: 176,070 sqm Completion scheduled for 2012

Income-producing assets development assets combination of income-producing assets and land bank

1 A “Total Return Vehicle” offering 100% exposure and long-term commitment to China’s commercial real estate sector strategic fully integrated acquisition partnership management Well balanced portfolio of high quality income producing assets and development 2 platform opportunities offering both stable income and significant growth potential

3 Outperformance achieved through a distinctive business model and an all- encompassing asset management approach and strategic capital management

ownership 4 Intrinsic advantage provided by the corporate structure, highly conducive to management accretive acquisitions and development of sustainable long-term growth DeliveryDelivery of Total of Total ReturnReturn to to UnitholdersUnitholders 5 A high calibre management platform synthesizing international expertise and intimate local market knowledge

Proven record in delivering capital growth and significant rental reversion international intimate local 6 expertise market knowledge through proactive asset management including comprehensive property development refurbishment and repositioning

7 Positive exposure to Chinese RMB which provides 100% of TCT’s revenue base and the associated benefits of its likely appreciation in the mid to long term

Real Estate Portfolio Share Performance S$ per unit NAV RMB billion 6 13 20% 20% 5.5 17% 24% 10% 12 11.65 bn 10% 5 4.76¹ 0% 0% 11 -10% -10% 4.5

4.07 -20% 10 -20% 9.42 bn 4 -30% -30%

9 3.5 -40% -40% Jun 10

8 -50% Jun 10 3 -50% 21 June 2010 30 June 2011 21 June 2010 30 June 2011 Assuming 1,000 units of TCT shares brought at listi ng Portfolio value (S$) Gross Annualized Revenue 2,400 Initial portfolio Paid first distribution Paid second distribution of Declared third RMB million value:S$1,680 RMB million NPI³ of 25 cents per unit 25 cents per unit distribution of 50 500 479.0 m² 30% 2,200 cents per unit 140 137.0 m 20% 480 33.2% 20% 21% 460 2,000 10% 10% 130 440 0% 1,800 0% 420

400 -10% -10% 359.6 m 1,600 Portfolio value as of 120 380 7 July:S$2,113 -20% -20% Total return: 25.8% 113.5 m 360 1,400 -30% 340 110 -30% -40% 320 1,200 “TCT has delivered on its commitment to a Total Return Vehicle in the -40% 300 -50% 12 months period since its listing on the Singapore Main Board in June 2010” 100 -50% as of 31 Dec 2010 as of 31 Dec 2011 1,000 Jun 2010 Sep 2010 Nov 2010 Jan 2011 Mar 2011 May 2011 Jul 2011 21 June1 2010 30 June2 2011 Source: JP Morgan, Bloomberg as of 7 July 2011 1 holding exchange rate between SGD and RMB constant 2 actual + forecast 3 for 6 months period

2 Financial Results

3 Portfolio Update

4 Market Outlook

The Best Real Estate Fund in Asia Outstanding China Property Trust

TCT was recognized as Asia’s best performing Real Estate Fund TCT was recognized as “China’s Outstanding Property Trust” for 2011 by Manager by AsianInvestor in its 2011 Institutional Funds Management Capital Magazine in it’s ‘the 6th Outstanding China Enterprise Awards”. Awards. The “Capital Outstanding Enterprise Awards” was first established in 2006 by Simon Osborne, Managing Editor of AsianInvestor said, “TCT won our Capital Magazine to acknowledge the increasing influence by Chinese award because of their successful participation in Asia’s most exciting enterprises to the global economy and recognize superior performance by real estate market – China – in the same year as accomplishing the Chinese companies. Capital Magazine, launched in 1987, is an Asian milestone of a Singapore listing.” business magazine targeting the finance industry, traders, manufacturers and middle-to-high income professionals.

Financial Operational

Gross Revenue S$42.7 M 7.8%² Portfolio Value RMB11.7 B

Net Property Income S$26.8 M 18.8%² Portfolio Value Uplift 9.28%²

Net Profit S$145.3 M 3.7x² Committed Occupancy¹ 95.89%

EPU (cents) S$56.8 3.5x² Occupancy Uplift¹ 5.0%

NAV per unit S$4.17 13.6%³ No of Leases Executed in Q2 31

Dividend (for 6 months) S$5 cents per unit Rental Uplift 10.65%

1 core stabilized assets including City Center, Central Plaza and Treasury Building 2 compared with 2010 results 3 compared with Q1 2011 results

2 Financial Results

3 Portfolio Update

5 Market Outlook

(RMB’000) YTD 30 YTD 31¹ Q2 2011 Q1 2011 Change Change June 2011 Dec 2010 Actual Actual % % Actual Actual

Gross Rental Income 119,253 100,130 +19.1% 219,383 198,587 +10.5%

Business and Property related (15,884) (12,558) (28,442) (24,603) Taxes

Property Management Fees (4,073) (3,399) (7,472) (13,303)

Other Operating Expenses (26,332) (20,130) (46,462) (47,594)

Total Property Operating (46,289) (36,087) (28.3%) (82,376) (85,500) + 3.7% Expenditure

Net Property Income (NPI) 72,964 64,043 +13.9% 137,007 113,087 +21.2%

1 for the period from 19 May 2010 to 31 Dec 2010

(RMB million) 0 50 100 150 200 250

119.3 219.4 Total Stabilized Portfolio 100.1 +11% 198.6

70.2 City Center 70.7 140.9 139.1

25.2 Central Plaza 21.7 46.9 43.4

8.8 Treasury Building 7.7 16.6 1H 2011 16.1 Q1 2011 Central Avenue Mall 12.7 Q2 2011

2H 2010

Huai Hai Mall 2.3

As a Singapore listed entity, TCT’s functional currency is S$, which appreciated against RMB during the period by 2.2% (31/12/10 S$1 = RMB 5.1280; 30/06/11 S$1= RMB 5.2430)

YTD YTD¹ 2nd Qtr 1st Qty Change 30 June 31Dec Change (S$’000) 2011 2011 (%) 2011 2010 (%) Actual Actual Actual Actual

Gross Revenue 23,214 19,454 +19.3% 42,668 39,576 +7.8%

Net Property Income 14,341 12,454 +15.2% 26,795 22,555 +18.8%

Total Profit After Tax 138,235 7,026 19.7x 145,261 39,610 3.7x

Earnings Per Unit (EPU) 54.1 2.7 20.0x 56.8 16.4 3.5x (cents)

1 for the period from 19 May 2010 to 31 Dec 2010

As at 30 Jun As at 31 Dec Net Assets S$ 1,059 million 2011 2010 Attributable to Investment Properties 2,390 1,874 Unitholders (S$ million) Trade and Other Receivables 36 8 Cash & Cash Equivalents 89 104 Other Assets 16 17 Units in Issue 253,768 Total Assets 2,531 2,003 (‘000 units)

Bank Loans 750 656 Convertible Bonds 61 - Deferred Tax Liabilities 388 323 Deferred consideration 85 - Net Asset Value 4.17¹ (NAV) per unit Trade & Other Payables 68 67 (S$) Total Liabilities 1,352 1,046

Net Assets (net-off minority interests) 1,059 957 1. S$3.90 on a fully diluted basis

An increase of 13.6% in NAV to S$4.17 per unit includes the completed acquisitions of Central Avenue Mall in Qingdao on 1 April 2011 and Huai Hai Mall Shanghai on 10 May 2011

S$ per unit 4.2 4.17 4.1 13.6% 4 3.9 3.8 3.7 3.67 1 3.6 3.5 3.4 As at1 31 Mar 2011 As at2 30 June 2011

100% 100.0% 100.0% 90% 80% 70% Minimum: 80 % 60% Maximum: 45 % 50% 40% Maximum: 30 % 35.4% 30% 32.8% 20% 22.3% 17.3% 10% 0% 1 Gearing2 Ratio 3 4 Development5 6 Ratio7 Payout8 of Distributable9 10 Income as at 31 Dec 2010 as at 30 Jun 2011

S$ M 900 USD floating rate term loan S$771.5 M 800 RMB floating rate term loan

700 22%

600

500 78% S$449.3 M 400

300

200 S$148.0 M

100 S$55.6 M S$61.3 M S$57.2 M 0 Total Borrowing for 2012 2013 2014 2015 2015 onward Stabilized assets

Benefiting from a loan portfolio predominantly in US Dollars, the average cost of debt in the first half of 2011 reduced by 35% to an average of 3.97% pa

POBC one-year lending rate and 90 day Libor Average Annual Cost of Debt % 7.0 Jul 11: 6.56% 17% 7.22 8.0% 6.0 Jun 10: 5.40% 6.05 7.0% 5.0 35% 6.0%

4.0 5.0% 3.97 4.04¹

3.0 4.0%

3.0% 2.0 2.0%

1.0 Jun 10: 0.53% Jul 11: 0.24% 1.0%

0.0 0.0% Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10-10 Nov-10 Jan-11 Dec Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 2009 2010 1H 2011 2H 2011 forecast POBC one-year lending rate 90 day LIBOR 1 incorporates recent increase in RMB loan interest rates – minimal impact

Source: Bank of China, Bloomberg

RMB vs USD

8.5 Total appreciation: 28.2% (From Jul 20, 2005 to Jul 21, 2011)

8.0 More flexible currency regime on Jun 19, 2010 YTD appreciation gain by USD/RMB @ Jun 18, 2010: 6.8275 Jul 21, 2011: 2.6%

7.5 Appreciation halted in USD/RMB @ Jul 21, 2011: 6.4536 response to the global Historical high financial crisis De-pegged from USD in July, 2005, 7.0 USD/RMB @ Jul 20, 2005: 8.2765

Another 2.4% gain expected by year end 6.5

Appreciation gain: 21.2% (From Jul 20, 2005 to Jun 18, 2010) Appreciation gain: 5.8% (From Jun 18, 2010 to USD/RMB @ Dec 31, 2011 Jul 21, 2011) 6.0 Consensus: 6.3 5-Jun-10 5-Jun-07 6-Mar-11 5-Mar-08 31-Dec-11 21-Jul-11 20-Jul-08 4-Dec-08 4-Sep-09 20-Jul-05 4-Dec-05 4-Sep-06 19-Jan-10 20-Oct-10 19-Jan-07 20-Oct-07 20-Apr-09 20-Apr-06

Source: People’s Bank of China, Reuters

2 Financial Results

3 Portfolio Update

4 Market Outlook

Powered by Treasury Holdings Group 19 Independent Valuation Results Property Portfolio valued at RMB 11.65 billion as at 30 June 2011¹, representing a 9.28% increase for the 6 months Properties (RMB millions) As At As At 31/12/2010 % variance Value Appreciation since Acquisition 30/06/2011 (Core Portfolio) Stabilized Assets 25% City Center, Shanghai 5,853 5,754 + 1.72% Treasury Building 24.7% Central Plaza, Shanghai 1,755 1,720 + 2.03% The Treasury Building, Shanghai 690 674 + 2.37% Central Plaza 20% 14.2% City Center Sub-total 8,298 8,148 + 1.84% City Center 20.2% 13.7% Acquisitions during the period Central Avenue Mall, Qingdao 2 646 510 + 26.67% 15% Huai Hai Mall, Shanghai 2 760 574 + 32.40% Total Stabilized Assets as at 30/06/2011 9,704 9,232 + 5.11% Development Assets Central Plaza 19.9% City Center Extension, Shanghai 1,378 1,337 + 3.07% 10% Beijing International Logistics Park, Beijing 142 126 + 12.70% Total Development Assets as at 30/06/2011 1,520 1,463 + 3.90% Land-bank Assets 5% Central Avenue Mall, Qingdao 2 1,305 357 + 265.55% Total Portfolio as at 30/06/2011 12,529 11,052 + 13.36%

Total Portfolio reflecting 55% ownership of 0% Central Avenue Mall Qingdao 11,651 10,662 + 9.28% At acquisition in 2007 June 2011

1 Independently valued by DTZ Debenham Tie Leung 2 Recorded at acquisition cost

CommittedCommitted Occupancy Occupancy for for the the Core core PortfolioShanghai of portfolio City Center, of City Central Center, Plaza Central and PlazaTreasury and Building Treasury equated Buildin gto equated to95.9%, 95.9%, representing representing a asolid solid performance performance for for 1H Q2 2011 and 1H 2011

100% 100% 98.2% 95% 97.7% 95.9% 94.9% 90% 89.3% 90.9% 88.4% 88.8% 85%

80%

75%

70% 71.8%

65%

as at 30 Jun 2011 60% as at 31 Dec 2010 55%

50% City Center Central Plaza Treasury Core Stabilized Central Avenue Huai Hai Mall Building Portfolio¹ Mall (existing mall) 1 core stabilized portfolio includes City Center, Central Plaza and Treasury Building

31 new lettings/renewals negotiated in the Core Portfolio for Q2 (64 leases in the 1 st Half), achieving an average rental uplift of 10.7%

Major Transactions Tenant Composition Fortune 500 22% companies Property Tenant Lease Type Gross Area Others 78% Finance & (sqm) Insurance 22% City Center CH2M new 1,994

Healthcare SITICO renewal 1,980 Mechanical & 4% Manufacturing 45% Consumer Volvo Penta renewal 997 products 28%

Myer new 668 Local Company 19% Central Plaza Rohde & Schwartz renewal & expansion 1,208 MNC 55%

MetLife Insurance expansion 358 Foreign Company 26%

sqm 70,000

60,000 57,475¹

50,000

40,000 31,916 30,141 30,000

20,000 13,292 13,308 8,842² 10,000 7,574 8,556 7,434 4,670 0 576 0 2011 remaining 2012 2013 2014 onward City Center Central Plaza Treasury Building

1 Parkson : 26,684 sqm 2 SPX : 8,390 sqm

An underperforming retail development located in the epi-centre of Shanghai’s strongest and highest profile luxury retail goods precinct, presenting a rare opportunity for comprehensive asset refurbishment and redevelopment to deliver a high-end shopping mall

Property Huai Hai Mall Shanghai Metro line

Description a four level property comprising one level of basement and 3 levels above ground zoned for retail use features direct street-front access to Huai Hai Road, one of Shanghai’s strongest and highest profile luxury retail goods precincts

GFA (sqm) 7,620 sqm

Acquisition RMB 574 million (S$109.50 million) Cost Valuation (as at RMB 760 million (S$144.96 million) 30 June 2011)

Current Rent DTZ appraisal of current market rent of RMB 35.6/sqm/day (Ground Floor) Rent Projection RMB 64/sqm/day by 2014

2 Financial Results

3 Portfolio Update

4 Market Outlook

Chinese economy continues to exhibit stable growth with GDP expanded by 9.5% in Q2, a 2.2% growth Q-o-Q, underpinned by robust domestic demand Total retail sales growth accelerated to 17.7% YoY in June from 16.9% YoY in May boosted by the strong domestic consumption and a rising income

Quarterly GDP Growth (Y-o-Y) China Monthly Retail Sales

Source: NBS

A stellar performance recorded for Q2 2011 in both rental growth and market absorption “There is increasing activity and optimism in China’s commercial real estate sector. Demand from both foreign and domestic companies remained robust, increasing number of MNCs are locating The market is generally headed for a their China headquarters in Shanghai period of rising rentals and prices across the board, especially in the office sector.” Average rents in Puxi continued to its strong momentum, up 4.4% QoQ during Q2 to RMB 8.6/sqm/day, or 13.5% growth in 1H as compared to Q4, 2010 China Real Estate Report Q3 2011 It is anticipated the rents to increase a further 5% to 8% in the 2H with vacancy rates remaining stable backed Business Monitor International by the buoyant leasing market

Vacancy (Pudong vs Puxi) Market Rents (Pudong vs Puxi) MNCs Regional Headquarters in Shanghai

12 350 CAGR (2002-2010): 44.6% 332 305 25% 300 10 260 20% 250 224 8 184 15% 200 6 154 150 124

10% RMB/sqm/day 4 100 86 5% 2 56 50 16 0 0% 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 May- Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Q12006 Q22006 Q32006 Q42006 Q12007 Q22007 Q32007 Q42007 Q12008 Q22008 Q32008 Q42008 Q12009 Q22009 Q32009 Q42009 Q12010 Q22010 Q32010 Q42010 Q12011 Q22011 2011

Puxi Pudong Puxi Pudong

Source: Jones Lang LaSalle, CBRE and THPM Research

Shanghai retail market accelerated its upward momentum in Q2, 2011

Fast fashion retailers, leveraging China’s growing domestic demand and enjoying their boom for expansion, continued to be the main driver of leasing demand

New entrants in the quarter include American Eagle Outfitters, Hollister (owned by Abercrombie & Fitch), existing brands such as GAP, UNIQLO and Media Markt announced plans for further expansion

Prime retail rents at ground floor grew at a faster pace to RMB 51.5/sqm/day by end of Q2, up 1.7% QoQ and vacancy rate stabilized at 0.8%. Shanghai Prime Retail Rents Number of International Retailers in Shanghai

800 727 700 644

600

500 382 398 400 300

200

100

0 200612007 22008 32009 4

Source: Jones Lang LaSalle, THPM Research

Retail sales for large retailers in Qingdao reached RMB Qingdao Retail Market Rents & Vacancy 34.60 billion in the first five months of 2011, up 26.5% YoY, and the total retail sales is expected to reach the

level of RMB 400 billion by end of 2015, representing a 27 12%

CAGR of 16% 26 10%

25 International Retailers continued their expansion in 8% 24 the city 6% H&M and UNIQLO both planned to open second store 23

RMB/sqm/day 4% 22

Due to lack of new supply, rents for ground floor 21 2% space stabilized at RMB 22.4/sqm/day 20 0%

Vacancy rate of overall market dropped to 8.1% in Q2 Q1 2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2

Prim Retail Rents Vacancy

Source: CBRE, Jones Lang LaSalle