Corporate Presentation 4th Quarter 2017 Financial Results 19 January 2018 Important Notice This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for units in MRCB-Quill REIT (formerly know as Quill Capita Trust) (“MQReit”). The past performance of MQReit is not necessarily indicative of the future performance of MQReit. This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitations) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income and occupancy, changes in operating expenses including employee wages, benefits and training, property expenses and governmental and public policy changes. 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 value of units in MQReit (Units”) and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request the manager to redeem their Units while the Units are listed. It is intended that unitholders may only deal in their Units through trading on the Main Board of Bursa Malaysia Securities Berhad. Listing of the Units on the Bursa Securities does not guarantee a liquid market for the Units. The information in this Announcement must not be published outside Malaysia. 2 MRCB-Quill REIT Presentation *January 2018* Contents Slide No. • Financial Results 4 • Portfolio Update 11 KLCA & Cyberjaya Office Market Outlook Penang Retail Market Outlook • Conclusion 24 3 MRCB-Quill REIT Presentation *January 2018* Financial Results Quill Building 5 - IBM MRCB-Quill REIT Presentation *January 2018* MQREIT records 4Q 2017 Realised Net Income of RM21.42 million (RM’000) (Audited) (Unaudited) Variance 4Q 2016 4Q 2017 Gross Revenue 38,929 46,051 +18.3% Net Property Income 30,479 36,026 +18.2% Realised Net Income 13,304 21,418 +61.0% EPU 1 1.89 sen 2.01 sen +6.3% 1. EPU refers to Realised Earnings Per Unit 5 MRCB-Quill REIT Presentation *January 2018* FY 2017 DPU Stable Year-on-Year (RM’000) (Unaudited) (Unaudited) Variance FY 2016 FY 2017 Gross Revenue 136,648 181,502 +32.8% Net Property Income 107,155 141,341 +31.9% Realised Income 59,156 88,007 +48.8% EPU 1 8.80 sen 8.24 sen -6.3% Distributable Income 2 59,506 92,386 +55.3% DPU 3 8.38 sen 8.39 sen +0.1% 1 EPU refers to Realised Earnings Per Unit (after manager’s fees) 2 Distributable income for FY 2017 of RM92.39 million consist of Total Income of RM70.23 million and non-cash adjustments for manager’s fees payable in units amounting to RM3.98 million and net fair value loss on investment properties of RM18.18 million 3 DPU refers to Distribution Per Unit. FY 2017 DPU of 8.39 sen is 97.0 % of FY 2017 distributable income of RM92.39 million 6 MRCB-Quill REIT Presentation *January 2018* Total Assets – RM2.29 billion NAV per unit – RM1.2966 (Unaudited) (Unaudited) (Unaudited) (Unaudited) as at as at as at as at 31 Mar 2017 31 Jun 2017 30 Sept 2017 31 Dec 2017 (RM’000) (RM’000) (RM’000) (RM’000) Non Current Assets 2,224,782 2,224,597 2,224,395 2,181,387 Non Current Asset held - - - 25,000 for sale Current Assets 55,827 79,963 56,715 82,005 Total Assets 2,280,609 2,304,560 2,281,110 2,288,392 Current Liabilities 19,042 21,182 136,935 142,586 Non Current Liabilities 878,422 878,952 763,605 761,082 Net Assets 1,383,145 1,404,426 1,380,570 1,384,724 No of Units 1,068,000 1,068,000 1,068,000 1,068,000 NAV per Unit (RM) 1.2951 1.3150 1.2927 1.2966 7 MRCB-Quill REIT Presentation *January 2018* Stable Financial Indicators Unaudited Unaudited Unaudited Unaudited as at as at as at as at 31 Mar 17 31 Jun 17 30 Sept 17 31 Dec 17 Total Debts (RM’000) 853,789 853,101 854,150 853,453 Gearing Ratio ¹ 0.37x 0.37x 0.37x 0.37x Interest Coverage 2 3.52x 3.44x 3.38x 2.40x Average Term to Maturity (year) 3 2.91 3.30 3.05 2.79 Average Cost of Debt (p.a.) 4 4.4% 4.4% 4.4% 4.4% Notes: 1.Gearing ratio refers to Gross Debt over Total Assets. 2.Interest coverage refers to year to date (YTD) EBITDA / YTD Interest Expense 3.Average Term to Maturity means weighted average time lapse to maturity 4.Average Cost of Debt is calculated based on YTD Interest Expense / Average Weighted Borrowing 8 MRCB-Quill REIT Presentation *January 2018* Capital Management Prudent Capital Management 76%* of borrowings on Average cost of debt Gearing Ratio fixed rate 60% SC Limit 4.4% 50% Floating rate, 24% 40% 37% Fixed rateCPs, Gearing level RM118m MTN 30% RM118m 76% RM117m CPs 37% 20% 10% Total average borrowings : Below SC limit of 50% 0% RM861 mil 31-Dec 9 MRCB-Quill REIT Presentation *January 2018* Debt Maturity Profile Next Refinancing Due in September 2018 Average debt to maturity : 2.79 years RM(mil) 450 45% 400 CP RM279mil CP TL 350 RM279mil RM110mil TL RM110mil 300 CPs RM118m RM118m 250 CPs 22% 200 CP 19% RM130mil MTN MTN MTN 150 RM60mil CP RM130mil 14% RM60 mil CP TL RM144mil CP RM117m RM61 mil 100 RM130 mil TL MTN RM117m RM20mil 50 0 2017 2018 2019 2020 2021 2022 Note; 1. MTN - Medium Term Notes 2. CP – Commercial Papers 10 MRCB-Quill REIT Presentation *January 2018* 3. TL – Term Loan Portfolio Update Quill Building 3 - BMW MRCB-Quill REIT Presentation *January 2018* Portfolio of Quality Assets as at 31 Dec 2017 Market Value of 11 Properties: RM2.20 bil(c) Quill Building 1 Quill Building 4 Quill Building 2 - DHL 1(a) - DHL 2(a) - HSBC (a) Total NLA: Platinum Sentral 2.25 mil sq ft - KL Sentral (b) *Excluding car park area Portfolio Quill Building 3 Quill Building 5 Quill Building 8 Occupancy - BMW(a) - IBM(a) - DHL (XPJ) (a) (d) Rate: 96.3% Weighted Average Term to Expiry: Part of Plaza Wisma Technip (b) TESCO Building Menara Shell (b) 5.3 years Mon’t Kiara(b) Penang(a) a) The Properties were valued by Nawawi Tie Leung Property Consultants Sdn. Bhd, an independent firm of professional valuer registered with the Board of Valuers, Appraisers & Estate Agents Malaysia. b) The Properties were valued by CH Williams Talhar & Wong Sdn. Bhd, an independent firm of professional valuer, registered with the Board of Valuers, Appraisers & Estate Agents Malaysia. c) Save for Quill Building 8 – DHK (XPJ), all properties were based on valuation as at 31 December 2017. Quill Building 8 – DHK (XPJ) was based on valuation dated 17 October 2017. d) Proposed disposal of Quill Building 8 – DHL (XPJ) was announced on 8 January 2018. 12 MRCB-Quill REIT Presentation *January 2018* Market Valuation as at 31 December 2017 Name of Properties Net Book Value as Market Surplus % at 31 Dec 2017(a) Valuation at as /(Deficit) increase (prior to Proposed 31 Dec 2017 incorporated / Revaluation) (’000) into fund (decrease) (’000) (’000) Quill Building 1- DHL1 & Quill Building 4- DHL 2(b) RM126,500 RM130,000 RM3,500 2.77 Quill Building 2- HSBC(b) RM121,700 RM122,000 RM300 0.25 Quill Building 3- BMW(b) RM 76,883 RM 79,000 RM2,500 2.75 Wisma Technip(c) RM173,000 RM173,800 RM800 0.46 Part of Plaza Mont’ Kiara(c) RM116,000 RM117,400 RM1,400 1.21 Quill Building 5 – IBM(b) RM 45,300 RM 44,000 (RM1,300) (2.87) Quill Building 8 – DHL (XPJ) (b) (d) RM 25,000 RM 25,000 - - Tesco Building, Penang(b) RM140,000 RM140,000 - - Platinum Sentral(c) RM750,000 RM725,000 (RM25,000) (3.33) Menara Shell(b) RM648,000 RM648,000 - - Total RM2,222,383 RM2,204,200 (RM18,183) (0.82) (a) The Net Book Value of investment properties as at 31 December 2016 (prior to the Proposed Revaluation) comprise of the brought forward net book value as at 31 December 2015 together with asset enhancement related costs incurred during the year. (b) The Properties were valued by CH Williams Talhar & Wong Sdn Bhd, an independent firm of professional valuer, registered with the Board of Valuers, Appraisers & Estate Agents Malaysia. (c) The Properties were valued by Nawawi Tie Leung Property Consultants Sdn Bhd, an independent firm of professional valuer, registered with the Board of Valuers, Appraisers & Estate Agents Malaysia. 13(d) Valuation dated 17 October 2017. MRCB-Quill REIT Presentation *January 2018* Geographical Diversification Other Klang By Valuation Valley Area Mont' Kiara 1% 5% Cyberjaya Penang 17% 6% ¹ Kuala Lumpur City Centre 8% Klang 77% Valley Cyberjaya 17% KL Sentral Penang 6% 62% Notes: (1) Other Klang Valley Area refers to Klang Valley generally excluding KL city centre, KL Sentral and Mont’ Kiara. Klang Valley refers to Kuala Lumpur and Selangor State excluding Kuala Selangor, Sepang and Sabak Bernam.