Hyflux Innovation Centre The Kendall Aperia FY14/15 Financial Results Presentation 23 April 2015 Disclaimers This material shall be read in conjunction with A-REIT’s financial statements for the financial year ended 31 March 2015. This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward- looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from 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 and the continued availability of financing in the amounts and the terms necessary to support A-REIT's future business. Investors are cautioned not to place undue reliance on these forward-looking statements, which are based on the Manager’s current view on future events. The value of units in A-REIT (“Units”) and the income derived from them, if any, 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 should note that they will have no right to request the Manager to redeem or purchase their Units for so long as the Units are listed on the SGX-ST. It is intended that unitholders of A-REIT 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. The past performance of A-REIT is not necessarily indicative of the future performance of A-REIT. Any discrepancies between the figures in the tables and charts and the listed amounts and totals thereof are due to rounding. 2 Agenda Key Highlights for FY14/15 Financial Performance Investment Management Capital Management Asset Management Portfolio Update Portfolio Resilience Portfolio Growth Market Outlook 3 Key Highlights for FY14/15 Total Amount Available for Distribution rose by 2.7% y-o-y to S$351.1m DPU grew 2.5% y-o-y to 14.60 cents from 14.24 cents in FY13/14 Higher portfolio occupancy of 87.7% (from 86.8% a quarter ago) Key performance drivers were: • Positive rental reversion of 8.3% achieved over preceding contracted rental rates • Full year contribution from Nexus @one-north and A-REIT City @Jinqiao, and • Maiden contributions from Hyflux Innovation Centre and Aperia 4 Key Highlights for FY14/15 Assets Under Management increased 10.9% to S$8.2 billion • Acquisitions S$770.6m • AEI S$60.0m • Divestment S$12.6m Annual Property Revaluation: Capitalisation rate of 6.46% (vs. 6.57% in FY13/14) for Singapore Portfolio • Net revaluation gain of about S$47.0m @31 March 2015 Proactive capital management • Healthy aggregate leverage of 33.5% with debt maturity of 3.6 years • 68.2% of borrowings is hedged for an average term of 3.7 years 5 Agenda Key Highlights for FY14/15 Financial Performance Investment Management Capital Management Asset Management Portfolio Update Portfolio Resilience Portfolio Growth Market Outlook 6 FY14/15 vs FY13/14 % FY14/15 (1) FY13/14 (1) (S$’000) fav/ (Restated) (unfav) Gross revenue (2) 673,487 613,592 9.8 Net property Income (2) 462,727 435,973 6.1 Total amount available for distribution 351,140 342,005 2.7 DPU (cents) (3) 14.60 14.24 2.5 (1) 107 properties as at 31 March 2015 and 105 properties as at 31 March 2014, including 1 which is classified as finance lease receivable. As at 31 March 2015, one of the properties is classified as property held for sale and was divested on 7 April 2015. (2) Higher revenue and net property income due to HIC and Aperia acquired in June 2014 and August 2014 respectively, full year contribution and increase in occupancy at Nexus @one-north and A-REIT City @Jinqiao. Positive rental reversion at certain properties and rental support from A-REIT City @Jinqiao and HIC also contributed to the increase. (3) Included taxable (FY14/15 14.34 cents, FY13/14 14.04 cents), tax exempt (FY14/15 0.20 cents, FY13/14 0.14 cents) and capital (0.06 cents for both FY14/15 and FY13/14) distributions. 7 4Q FY14/15 vs 3Q FY14/15 % 4Q 3Q (S$’000) fav/ FY14/15 (1) FY14/15 (1) (unfav) Gross revenue (2) 173,794 171,734 1.2 Net property Income (2) 117,189 114,599 2.3 Total amount available for distribution 89,248 86,439 3.2 DPU (cents) (3) 3.71 3.59 3.3 (1) 107 properties as at 31 March 2015 and 106 properties as at 31 December 2014, including 1 which is classified as finance lease receivable. As at 31 March 2015, one of the properties is classified as property held for sale and was divested on 7 April 2015. (2) Higher revenue and net property income mainly due to the contribution from Aperia, which was completed in August 2014 and higher property tax in 3Q FY14/15 due to upward adjustment in annual value for certain properties, in particular the retrospective upward revision in the annual value of the property at 37A Kim Chuan Road. (3) Higher DPU because 4Q FY14/15 included distribution of incentive income (exempt distribution) and capital distribution from China subsidiaries, which are made semi-annually. Included taxable (4Q FY14/15 3.61 cents, 3Q FY14/15 3.56 cents), tax exempt (4Q FY14/15 0.07 cents, 3Q FY14/15 0.03 cents) and capital (4Q FY14/15 0.03 cents, 3Q FY14/15 Nil) distributions. 8 Distribution Details Stock Counter Distribution Period Distribution per Unit (cents) Ascendas REIT 1 October 2014 to 7.30 # 31 March 2015 Distribution Type Taxable Tax-exempt Capital #Breakdown of DPU (cents) 7.17 0.10 0.03 Distribution Timetable Last day of trading on “cum” basis 28 April 2015 (Tuesday) Ex-date 29 April 2015 (Wednesday) Books closure date 4 May 2015 (Monday) Distribution payment date 29 May 2015 (Friday) Note: Distribution is made semi-annually with effect from FY14/15 9 Agenda Key Highlights for FY14/15 Financial Performance Investment Management Capital Management Asset Management Portfolio Update Portfolio Resilience Portfolio Growth Market Outlook 10 Investment Highlights in FY14/15 Completion Value (S$m) Acquired 3 high-grade Date properties for S$771m Acquisition 770.6 • Scaled up exposure of The Kendall 113.7 Mar-15 business/science park, Aperia 463.0 Aug-14 integrated development & high-specs portfolio to 64% Hyflux Innovation Centre 193.9 Jun-14 Asset Enhancements 60.0 • Long land lease tenure of 53- 64 years Oasis (formerly Science Hub) 8.4 Jan-15 Completed S$60m of asset The Alpha 11.1 Jan-15 1 Changi Business Park enhancement works 8.1 Nov-14 Crescent • To improve marketability and Corporation Place 14.5 Aug-14 returns LogisTech 6.6 Aug-14 Divested 1 Kallang Place Techquest 4.3 Jul-14 • Recycle capital 5 Toh Guan Road East 7.0 Jun-14 Divestment 12.6 1 Kallang Place 12.6 May-14 11 Acquisition in FY14/15: The Kendall Completion 30 March 2015 Purchase Price S$112.0m Acquisition fee to S$1.1m Manager Other transaction Approximately S$0.6m costs Total Acquisition S$113.7m Cost Vendor Singapore Science Park Ltd Valuation S$116.4m by CB Richard Ellis 50 Science Park Road (as at acquisition S$115.0m by Colliers International date) TOP Date Oct 2009 The Kendall is a 6-storey multi-tenanted building located within the Singapore Science Land Area 10,095 sqm Park II. The property is easily accessible via Land Lease Expiry 64 years remaining (no upfront land Pasir Panjang Road, and the Haw Par Villa premium or land rent required) Circle Line Station is located nearby. Plot Ratio 2.0 (fully utilised) GFA 20,190 sqm NLA 16,824 sqm Occupancy 93.2% (as at 31 Mar 2015) 12 Acquisition in FY14/15: Aperia Completion 8 August 2014 Acquisition fee to S$4.58m Manager Other transaction S$0.42m costs Land premium S$218.3m for 60 years fully paid Total Transaction S$463m Value Vendor Via acquisition of PLC8 Holdings Pte. Ltd. 8, 10 & 12 Kallang Avenue Valuation S$488m by DTZ Debenham Tie Leung Aperia is an integrated industrial mixed-use (as at acquisition date) (SEA) Pte Ltd development located in Kallang iPark, at the TOP Date June 2014 fringe of Singapore’s Central Business District. Land Area 28,348 sqm Aperia is about 5 minutes' walk to the Lavender MRT Station and the upcoming Land Lease Expiry 57 years remaining Bendemeer MRT Station Plot ratio 3.0 (of which 0.5 for white use) The property consists of two Business-1 GFA 86,696* sqm towers (GFA 72,290 sqm) and a 3-storey retail NLA 68,735 sqm podium (GFA 14,406 sqm) Lifestyle amenities include a recreational pool, Occupancy 79.7% (as at 31 Mar 2015) childcare and enrichment centres, Another 2.3% committed but yet to supermarket, shops and F&B outlets commence lease; 4.0% under offer * Includes bonus GFA due to Greenmark Platinum certification 13 Acquisition in FY14/15: Hyflux Innovation Centre Completion 30 June 2014 Purchase Price S$170.m Acquisition fee to S$1.7m Manager Other transaction costs Approximately S$0.96m Upfront Land Premium S$21.2m (for the remaining tenure of the first 30-year lease term) Total Acquisition Cost S$193.9m Vendor Hyflux Innovation Centre Pte Ltd Valuation S$197.0m by DTZ Debenham Tie 80 Bendemeer Road (as at acquisition date) Leung (SEA) Pte Ltd TOP Date May 2012 Hyflux Innovation Centre is located Land Area 17,374 sqm within the Kallang Industrial Estate and Land Lease Expiry 54 years remaining is within three minutes’ walk to Boon Keng MRT station.