INVESTOR PRESENTATION. August 2017

Transcription

1 INVESTOR PRESENTATION August 2017

2 Important Notice This presentation is for information purposes only and does not constitute or form part of an offer, solicitation, recommendation or invitation for the sale or purchase or subscription of securities, including units in Frasers Logistics & Industrial Trust ( FLT, and the units in FLT, the Units ) or any other securities of FLT. No part of it nor the fact of its presentation shall form the basis of or be relied upon in connection with any investment decision, contract or commitment whatsoever. The past performance of FLT and Frasers Logistics & Industrial Asset Management Pte. Ltd., as the manager of FLT (the Manager ), is not necessarily indicative of the future performance of FLT and the Manager. This presentation contains forward-looking statements, including forward looking financial information, that involve assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance, outcomes or achievements of FLT or the Manager, or industry results, to be materially different from those expressed in such forward-looking statements and financial information. Such forward-looking statements and financial information are based on certain assumptions and expectations of future events regarding FLT's present and future business strategies and the environment in which FLT will operate. The Manager does not guarantee that these assumptions and expectations are accurate or will be realised. You are cautioned not to place undue reliance on these forwardlooking statements, which are based on the Manager s current view of future events. The Manager does not assume any responsibility to amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise, subject to compliance with all applicable laws and regulations and/or the rules of the Singapore Exchange Securities Trading Limited ( SGX-ST ) and/or any other regulatory or supervisory body or agency. The information and opinions in this presentation are subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning FLT. None of Frasers Centrepoint Limited, FLT, the Manager, Perpetual (Asia) Limited, in its capacity as trustee of FLT, or any of their respective holding companies, subsidiaries, affiliates, associated undertakings or controlling persons, or any of their respective directors, officers, partners, employees, agents, representatives, advisers or legal advisers makes any representation or warranty, express or implied, as to the accuracy, completeness or correctness of the information contained in this presentation or otherwise made available or as to the reasonableness of any assumption contained herein or therein, and any liability whatsoever (in negligence or otherwise) for any loss howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in connection with this presentation is expressly disclaimed. Further, nothing in this presentation should be construed as constituting legal, business, tax or financial advice. The value of Units and the income derived from them, if any, may fall or rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in the Units is subject to investment risks, including the possible loss of the principal amount invested. Investors should note that they have no right to request the Manager to redeem their Units while the Units are listed. It is intended that holders of Units may only deal in their Units through trading on the SGX- ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. Nothing in this presentation constitutes or forms a part of any offer to sell or solicitation of any offer to purchase or subscribe for securities for sale in Singapore, the United States or any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. 1

3 Table of Contents Section Contents Page 1 Introduction to FLT 3 2 Portfolio Overview 8 3 Financial Highlights 18 4 Sponsor 24 5 Strategy and Outlook 28 2

4 Introduction to FLT 17 Hudson Court, Keysborough, Victoria

5 Portfolio Overview The Largest Initial Pure-Play Australian Logistics and Industrial REIT listed in Singapore 61 PROPERTIES (1) Melbourne (Victoria) Properties 30 Sydney (New South Wales) Properties 15 (3) GLA 646,264 sq m GLA 405,471 sq m Valuation A$770.2m Valuation A$553.4m % of Portfolio (2) 40.4% % of Portfolio (2) 29.0% Brisbane Perth Adelaide Sydney Melbourne Brisbane (Queensland) Properties 11 GLA 247,724 sq m Adelaide (South Australia) Properties 4 GLA 33,038 sq m Perth (Western Australia) Properties 1 GLA 20,143 sq m Valuation A$530.9m Valuation A$35.2m Valuation A$18.2m % of Portfolio (2) 27.8% % of Portfolio (2) 1.8% % of Portfolio (2) 1.0% (1) Includes the six properties acquired by FLT in August 2017 and one remaining property to be acquired at a later date (2) By valuation (3) 14 properties located in Sydney, 1 property is located in Wollongong 4

6 Developments Since Listing Listed on the SGX ST on 20 June 2016 Acquired Indian Drive and Pearson Road Call Option Properties First Portfolio Acquisition Announced proposed acquisition of seven industrial properties for A$169.3 million on 6 June Completed Properties 3 Development Properties 111 Indian Drive, Keysborough, VIC Lot 1 Pearson Road, Yatala, QLD Listed on the SGX-ST on 20 June 2016 Initial Portfolio: 51 properties in Australia Acquisitions accretive to DPU Pearson Road Property is the first industrial facility in Queensland to achieve a 6 Star Green Star Design rating Lot 1, Horsley Drive Business Park, NSW (Survitec & Phoenix Facility) South Park Drive, Dandenong South, VIC (Ecolab Facility) 8 Stanton Road, Seven Hills, NSW (Yusen Facility) 43 Efficient Drive, Truganina, VIC (Ceva Tech Facility) 29 Indian Drive, Keysborough, VIC (Stanley Black & Decker Facility) Lot 1, Pearson Road, Yatala, QLD (Beaulieu Facility) 17 Hudson Court, Keysborough, VIC (CH2 Facility) June 2016 August 2016 November 2016 June 2017 July 2017 August 2017 Completion of Development Properties Acquired Martin Brower Call Option Property Private Placement and Extraordinary General Meeting Completion of Acquisition of Six Properties 28 June 2017 Private Placement 78 million units at S$ times subscribed 1 August 2017 Comprising the four completed properties and the Beaulieu Facility Doriemus Drive, Truganina, VIC 4 Kangaroo Avenue, Eastern Creek, NSW Schenker Extension and CEVA Logistic completed on 24 and 30 June 2016 respectively Ahead of targeted completion date of July 2016 as originally stated in the Prospectus 1 Burilda Close, Wetherill Park, NSW Prime, new industrial facility with 20-year lease longest in FLT s Portfolio Certified 6 Star Green Star Design rating 26 July 2017 Extraordinary General Meeting Obtained Unitholders Approval to proceed with the portfolio acquisition 15 August 2017 For the Stanley Black & Decker Facility 5

7 Acquisition of Seven Properties in Australia Acquisition of 7 Properties Located In Australia s Three Largest Industrial Markets Properties 7 Brisbane 1 asset Gross Lettable Area ( GLA ) Aggregate Valuation (1) Aggregate Acquisition Amount (2) 124,527 sq m A$171.3 million A$169.3 million Sydney 2 assets Melbourne 4 assets Occupancy (3) 100% WALE (4) Average Age (5) 9.5 years 2.5 years Completed equity raising through placement and issuance of 78 million new units on 6 July 2017 Unitholders approval obtained at the Extraordinary General Meeting held on 26 July 2017 Completion of acquisition for six out of seven properties in August 2017 (1) Based on the higher of the two independent valuationsconducted by CBRE ValuationsPty Ltd, SavillsValuationsPty Ltd (onlyfor the CEVA Tech Facility) and Urbis ValuationsPty Ltd (for all the seven properties save for the CEVA Tech Facility) as at 30 April 2017 (2) The aggregate acquisition amount payable is subject to adjustments arising from the actual GLA being more or less than the estimated GLA of the Development Properties (the Development Properties Adjustments ), with the maximum aggregate acquisition amount for the 7 new properties takinginto account the Development Properties Adjustmentsbeing approximatelya$171.5 million (3) Including pre-committed leases for the Development Properties as at 30 June 2017 (4) The weighted average lease expiry computed through application of Adjusted Gross Rental Income ( Adjusted GRI ) (being the contracted rental income and estimated recoverable outgoings of the Completed Properties under the relevant existing lease for the first month after the completion of the contracts of sale in respect of the Completed Properties (the Completed Properties Contracts of Sale ), and for the Development Properties, the contracted rental income and estimated recoverable outgoings under the relevant pre-committed lease for the first month following the estimated practical completion of the respective Development Properties) and assuming that the pre-committed tenancies for the Development Properties and the tenancies for the Completed Properties have commenced as at 30 June 2017 (5) As at 30 June

8 Growth Since IPO Key portfolio, performance and trading metrics have improved since IPO Portfolio At IPO Current (1) Number of Properties GLA (sq m) 1,156,825 1,352, % Portfolio Value (A$ m) 1, , % Occupancy (%) ppt 99.4 WALE (Years) 6.9 Unchanged 6.9 Financial Indicators IPO Forecast YTD (2) Distributable Income (A$ 000) 96, % 101,386 DPU (Singapore cents) % 7.08 Trading Performance At IPO 30 June 17 Unit Price (S$) S$ % S$1.08 Market Capitalisation (S$ m) 1,268.4m +21.9% 1,545.9m (1) As at 30 June Includes the six properties acquired by FLT in August 2017 and one remaining property to be acquired at a later date (2) For the period from 20 June 2016 to 30 June

9 Portfolio Overview 29 Indian Drive, Keysborough, Victoria

10 Portfolio Concentrated in Major Industrial Markets - Melbourne FLT s properties in Melbourne are primarily located in the west and south east industrial precincts and services Melbourne s port and large south eastern residential population base New South Wales Map of Melbourne Sub-market Location No. of Properties Precinct Characteristic South Australia E D F G New South Wales South East North D 6 A 6 Access to M1 (Monash Freeway) and M3 (EastLink) B 8 Services the large south eastern residential C 2 population base Access to key freeways, including the Tullamarine Freeway, Citylink Tollway, and Western Ring Road, together with the Tullamarine Airport. Sydney is accessed via the Hume Highway West E 6 Close to the shipping port and access to the M1, Geelong Road, M80 Western Ring Road South Australia C B A New South Wales City Fringe F 1 G 1 Access to the M1 (Westgate Freeway) linking it to the west precinct A A South Park Industrial Estate South Park Industrial Estate E E West Park Industrial Estate West Park Industrial Estate Total 30 B B The Keys Industrial Park The Key Industrial Park F F Altona Industrial Park Altona Industrial Park C C D D Clayton South & Mulgrave Clayton South & Mulgrave Melbourne Airport Business Park Melbourne Airport Business Park G G Port Melbourne Port Melbourne 9

11 Portfolio Concentrated in Major Industrial Markets - Sydney FLT s properties in Sydney are well-connected to major freeways, Sydney s port and are able to service growing population in the north west Queensland Map of Sydney Sub-market Location No. of Properties Precinct Characteristic South Australia A C DC B DE Outer Central West Outer North West A 4 Excellent access to key motorways, including M7, M4 and other main arterial roads B 2 C 2 D 4 E 1 Third-party logistics ( 3PL ), retail and wholesale distribution centres for key brand name operators are located in this precinct Close to M2 and M7 and access to the large and growing north west population corridor Supply is moderately constrained sites suit smaller development Outer South West F 1 Access to the M5 and South Sydney/Port, the Southern Sydney Freight Line and Moorebank Intermodal terminal EF Victoria Victoria Port Kembla (Wollongong) N.A. 1 One of the three major trade ports within New South Wales and is situated within the southern industrial city of Wollongong A A B Eastern Creek Eastern Creek Pemulwuy D Seven Hills Total 15 BC Seven Pemulwuy Hills E Winston Hills D C E Winston Hills Wetherill Park Smeaton Grange F Smeaton Grange 10

12 Portfolio Concentrated in Major Industrial Markets - Brisbane FLT s properties in Brisbane are primarily concentrated in the southern sub-market, which has good road linkages to the north, west and south to the Gold Coast residential population bases Northern Territory JI HI Map of Brisbane Sub-market Southern No. of Location Properties A 1 B 1 C 1 D 1 E 1 F 1 G 1 H 2 Precinct Characteristic Largest geographical industrial precinct that has good road linkages to the north, west and south to the Gold Coast residential population New South Wales B A D F G C E H New South Wales Trade Coast I 1 Northern J 1 Close to key infrastructure, including Port of Brisbane and the Brisbane Airport Access north and south via the M1 Supply is constrained. Alternative use is strong competition for development in neighbouring suburbs Services the population to the North of Brisbane via the Gympie Road, Bruce Highway and Houghton Highway Limited availability of development land AA B B C Flint Street Flint Street Boundary Road Boundary Road Siltstone Place F G F Shettleston Street Shettleston Street G Sandstone Place Sandstone Place H Queensport Road Total 11 CD Siltstone Stradbroke Place Street H Pearson I Earnshaw Road Road E D Platinum Street Stradbroke Street I Queensport Road E Platinum Street J Earnshaw Road 11

13 FLT Portfolio Metrics 90.5% of FLT s portfolio (by value) comprised of freehold and long leasehold land tenure assets Land Tenure by Value (1)(2) Other Leasehold 9.5% Portfolio Age by GLA (3) > 10 Yrs 23.8% <2 Yrs 23.1% 76.2% of FLT s portfolio (by GLA) is less than 10 years old with lower capital expenditure requirements > 80 Year Leasehold 30.3% Freehold 60.2% 5-10 Yrs 35.4% 2-5 Yrs 17.7% Geographical Breakdown by GLA and Value Diversified portfolio across five states in Australia Focus on Australia s three largest capital cities of Sydney, Melbourne and Brisbane WA, SA, 1.5% 2.4% VIC, 47.8% GLA NSW, 30.0% QLD, 18.3% VIC, 40.4% SA, WA, 1.8% 1.0% Value QLD, 27.8% NSW, 29.0% (1) Valuation for pre-acquisition portfolio of 54 properties as at 30 September 2016 (save for the property located at Lot 3 Horsley Drive Business Park, Cnr Horsley Drive & Cowpasture Road, Wetherill Park, New South Wales (the Martin Brower Property ) which was valued on 1 October 2016) (2) Valuation for the seven new properties are based on the Aggregate Valuation (3) As at 30 June

14 Leasing Updates Management continues to proactively engage with tenants well before lease expiry 140,246 sq m of new lease and lease renewals since FLT s listing, representing 11.4% of total Portfolio GLA 94.0% Tenant retention rate (1) for all leasing transactions from the Listing Date to 30 June 2017 Lease Renewals and New Leasing Activity (1 January 2017 to 30 June 2017) 32 Gibbon Road, Winston hills, New South Wales 7,812 sq m lease executed with Tailored Packaging to April Jets Court, Melbourne Airport, Victoria 5,299 sq m lease extension to December Platinum Street, Crestmead, Queensland 19,299 sq m lease extension (and asset enhancement) to November 2031 (2) Butler Boulevard, Adelaide Airport, South Australia 6,991 sq m lease extension to March 2021 (1) Retention rate would have been 100% if excluding the lease surrender by Australian Geographic due to a solvent exit arrangement (2) The GLA of 19,299 sq m refers to the existing lettable area and excludes the planned expansion of 1,238 sq m, which is due for completion in January

15 Asset Enhancement Proposed location of new extension, canopy and solar panels Property: Tenant: Description: Platinum Street, Crestmead, Queensland Stramit Corporation Pty Limited 1,238 sq m expansion of the warehouse, installation of a 773 sq m awning and further building upgrades and sustainability initiatives Expected Return on Cost: 10% Expected Completion Date: January

16 Well-diversified Tenant Base Top 10 Tenants Breakdown of Tenants By Trade (% of Gross Rental Income ( GRI ) contribution for the month of June 2017 (1) ) (by Gross Rental Income for the month of June 2017 (1) ) % of GRI WALE (Years) Coles Manufacturing 17.0% Others 6.7% Consumer 43.2% CEVA Logistics Schenker Toll Holdings Logistics 33.1% TTI Mazda Martin Brower H.J. Heinz DHL Global Forwarding Unilever Consumer sector tenants Logistics sector tenants (1) Includes the six properties acquired by FLT in August 2017 and one remaining property to be acquired at a later date 15

17 Portfolio Lease Expiry Profile No concentration risk of lease expiry (no single financial year has more than 16% lease expiries up to 30 September 2025) Only 2.5% lease expiries to end FY18 Provides stability of cash flows Lease Expiry by Gross Rental Income(¹) (2) 32.5% 21.7% 0.2% 0.5% 2.3% 10.7% 15.3% 13.9% 8.2% 12.8% 10.4% 10.1% 15.8% 10.8% 4.0% 4.0% 7.9% 8.0% 5.6% 4.8% Sep 2017 Sep 2018 Sep 2019 Sep 2020 Sep 2021 Sep 2022 Sep 2023 Sep 2024 Sep 2025 Sep 2026 and beyond Jun 2017 IPO (as disclosed in Prospectus) (1) As at 30 June 2017, and excluding straight lining rental adjustments (2) Includes the six properties acquired by FLT in August 2017 and one remaining property to be acquired at a later date 16

18 Sustainability FLT has the largest industrial Green Star performance rated portfolio in Australia Green Initiatives include undertaking LED & solar PV analysis for existing properties FLT s Green Star-rated status (1,2) (by GLA) Not Eligible, 23.0% Not Rated, 9.6% Potential sustainability benefits Reduces ongoing occupancy costs Attracting new tenants, especially those using sustainability as a criteria Performance rated, 67.4% Assists in retaining tenants at lease expiry Decreases building obsolescence Sustainability initiatives Energy-efficient LED lighting Solar PV Systems Minimises vacancy downtime Building and Internal works Geothermal heating and cooling Surface level geoair heat pump Utilise geothermal heating and cooling systems to take advantage of the stable temperature underground using a piping system Lot 1 Pearson Road, Yatala, Queensland LED lighting to warehouse and office areas 1 Burilda Close, Wetherill Park, New South Wales Rooftop Solar PV system to generate renewable energy for use on site Underground geoair loops Integrated in the base design of the Quatius Logistics and Survitec & Phoenix properties (1) Green Star rating is awarded by the Green Building Council of Australia (GBCA) which has assessed the Properties against nine key performance criteria energy, water, transport, materials, indoor environment quality, management, land use & ecology, emissions and innovation (2) As at 30 June 2017 and Includes the six properties acquired by FLT in August 2017 and one remaining property to be acquired at a later date 17

19 Financial Highlights Lot 1 Horsley Drive Business Park, New South Wales

20 Financial Performance (Quarter ended 30 June 2017) (A$ 000) Actual Forecast (1) Change (%) Contributing factors Gross revenue 40,226 40,290 (0.2) Adjusted net property income (2) 30,843 30,856 - Adjusted Net Property Income for the Quarter at A$30.8 million was in line with Quarter Forecast. Actual gross revenue for the Quarter excluding straight lining rental adjustment was in line with Quarter Forecast. Finance costs (4,220) (5,198) 18.8 Interest savings from lower actual weighted average interest rate of 2.8% (3) per annum compared to Forecast weighted average interest rate of 3.4% (3) per annum Lower debt funding as compared to Forecast Distributable income to Unitholders DPU (Singapore cents) 25,047 23, Due mainly to: Interest savings Lower withholding tax on distributable income (1) Please refer to Note 1 in Paragraph 9 of FLT s Financial Statements Announcement dated 28 July 2017 for details on the forecast figures for the quarter ended 30 June (2) Net property income excluding straight lining rental adjustments (3) Excluding upfront debt related expenses 19

21 Financial Performance (Financial Period ended 30 June 2017) (A$ 000) Actual (1) Forecast (2) Change (%) Gross revenue 163, , Adjusted net property income (3) 125, ,303 (0.1) Contributing factors Variance from Forecast is due to rental income contribution from the previously vacant tenancy at Lot 5 Kangaroo Avenue which was leased from April 2016 and the acquisition of the two call option properties (Indian Drive and Pearson Road Properties) one month ahead of Forecast Partially offset by the two month delay in acquiring the Martin Brower call option property and one-off repairs and maintenance costs incurred for some of the properties Finance costs (16,390) (20,076) 18.4 Interest savings from lower actual weighted average interest rate of 2.8% (4) per annum compared to Forecast weighted average interest rate of 3.4% (4) Lower debt funding as compared to Forecast Distributable income to Unitholders DPU (Singapore cents) 101,386 96, Due mainly to: Interest savings Lower trust expenses Lower withholding tax on distributable income (1) The Actual results for the FLT Group for the financial period from 30 November 2015 (date of constitution) to 30 June 2017 comprises the actual results for the quarters ended 30 June 2017, 31 March 2017 and 31 December 2016 and (i) in respect of the non-queensland Properties, 108 days of operation from 14 June 2016 to 30 September 2016; and (ii) in respect of the Queensland Properties, 102 days of operation from 20 June 2016 to 30 September Please refer to Note 1 in Paragraph 9 of FLT s Financial Statements Announcement dated 28 July 2017 for details (2) Please refer to Note 1 in Paragraph 9 of FLT s Financial Statements Announcement dated 28 July 2017 for details on the Forecast figures for the financial period from 30 November 2015 to 30 June 2017 (3) Net property income excluding straight lining rental adjustments (4) Excluding upfront debt related expenses 20

22 DPU Quarter ended 30 June 2017 (Singapore cents, 1 April 2017 to 30 June 2017) Financial Period ended 30 June 2017 (Singapore cents, 20 June 2016 to 30 June 2017) 5.5% 6.7% Forecast (1) Actual Forecast (1) (2) Actual (1) Please refer to Note 1 in Paragraph 9 of FLT s Financial Statements Announcement dated 28 July 2017for details on the Forecast figures for the financial period from 30 November 2015to 30 June 2017 (2) The Actual results for the FLT Group for the financial period from 30 November 2015 (date of constitution) to 30 June 2017 comprises the actual results for the quarters ended 30 June 2017, 31 March 2017 and 31 December 2016 and (i) in respect of the non-queensland Properties, 108 days of operation from 14 June 2016 to 30 September 2016; and (ii) in respect of the Queensland Properties, 102 days of operation from 20 June 2016to 30 September Please refer to Note 1 in Paragraph 9 of FLT s Financial Statements Announcement dated 28 July 2017 for details 21

23 Balance Sheet Value of investment properties has increased 9.4% from A$1.60 billion at IPO to A$1.75 billion as at 30 June 2017 due mainly to acquisition of the three call option properties (A$ 000) As at 30 June 2017 Investment properties 1,752,543 Other non-current assets 2,965 Current assets 54,663 Total assets 1,810,171 Non-current liabilities 537,159 Current liabilities 16,314 Total liabilities 553,473 Net asset value per Unit (A$) 0.87 Net asset value per Unit (S$)

24 Capital Management As at 30 June 2017 Weighted average cost of borrowings is 2.8%(¹) per annum Healthy interest cover ratio of 9.5 times No near term refinancing risks Low gearing level of 29.3% Available debt headroom of A$517 million to reach 45.0% aggregate leverage limit Debt Composition Floating VS Hedged Debt Maturity Profile (A$ m) Floating 21% $170 $160 $200 Fixed 79% No debt expiry in FY2017 and FY2018 Total Gross Borrowings A$530 million FY2017 FY2018 FY2019 FY2020 FY2021 (1) Excluding upfront debt related expenses 23

25 Sponsor 43 Efficient Drive, Truganina, Victoria

26 Sponsor: Frasers Centrepoint Limited A Leading International Real Estate Company One of Singapore s top property companies with total assets of S$25b (1) Multi-segment expertise industrial, residential, retail, office, business space properties and hospitality Engaged in the entire real estate value chain One of the Top Residential Developers in Singapore One of the Largest Retail Mall Owners / Operators in Singapore Leading Australian Multi-segment Developer and Owner/Operator Globally Scalable Hospitality Operator (1) As at 30 June

27 Frasers Property Australia Leading Integrated Industrial Player FPA (previously Australand ) is a significant diversified property group in Australia with ~S$3.6b in total assets as at 31 December 2016 FPA became wholly-owned by the FCL Group in October 2014 and the creation of FLT to be a strategic partner in the industrial sector is a key objective for both FPA and FCL The industrial business line is of significant importance to FPA, representing approximately one-third of FPA s asset base FPA S COMPLETE IN-HOUSE VALUE CHAIN Opportunity Identification and Development Asset and Property Management Funds Expertise Strong Industrial Delivery Capabilities Proven Asset Management Track Record Unparalleled Funds Expertise Consistent market leader in industrial D+C market with c.15% - 25% market share (1) A$3.5b of assets and 3.1 million sq m built form completed (2) 100% of IPO portfolio developed inhouse Industrial development pipeline with an on completion value of A$850m In-house construction and delivery platform, a key point of difference vs. competitors End to end from lease negotiation to property and facilities management Tenant retention rate of 81.0% (3) Approx. 50% repeat business Seven previous funds/jvs managed by Frasers Property Australia since 2001 Gross value of funds managed is approximately A$1.7b Strong track record of delivering healthy returns Source: Frasers Centrepoint Limited (1) FPA market share was not calculated in 2013 and 2014 and in 2008 and 2009 was a combined 15% average across both years. (2) Since (3) Retention rate is for FLT portfolio from

28 Alignment of Interest between the Sponsor, REIT Manager and Unitholders The substantial interest of the Sponsor in FLT aligns the Sponsor and Unitholders interest. Management fee structure aligns the REIT Manager and Unitholders interest. Substantial Sponsor ownership in FLT REIT Manager Fee structure The Sponsor is the largest Unitholder in FLT Sponsor ownership of 19.9% (1) Management Fee Fee Structure Base Fee 0.4% p.a. of Deposited Property Substantial strategic investment in FLT Performance Fee 5.0% p.a. of Distributable Income Total REIT Management Fee for FP2016 (annualised): 0.64% of Deposited Properties TCCI (2) has committed 6.0% (1) as a strategic investor 100% base fee and performance fee in units for the FP2016 and PY2017 to align interest of REIT manager and unitholders Performance fee structure incentivises the REIT Manager to grow distributable income and DPU (1) As at 4 August 2017 (2) TCC Group Investments Limited 27

29 STRATEGY & OUTLOOK South Park Drive, Dandenong South, Victoria

30 Strategic Objectives Prime and modern industrial and logistics portfolio in key Australian markets Deliver stable and regular distributions to unitholders Achieve long term growth in DPU Proactive leasing strategy: High occupancy rate, long WALE and well-diversified tenant base 3.2% average annual built-in rental increments; AEI (1) potential for portfolio properties ROFR of 13 existing properties from Sponsor and Sponsor s development pipeline (2) Third-party acquisitions Optimal capital mix and prudent capital management (1) Asset Enhancement Initiative (2) Only completed income-producing real estate assets which are used for logistics or industrial purposes are included in the ROFR 29

31 Australian Economy Snapshot Economic Growth Australia s 1017 GDP grew 1.7% year on year, driven by household consumption, public spending and a buildup of business inventories; partially tempered by falls in exports (affected by adverse weather) and dwelling investment during the March quarter Business investment has picked up in those states not directly affected by the declines in mining investment. The Reserve Bank of Australia indicates GDP growth is anticipated to strengthen gradually, with the transition from a resource driven economy to lower levels of mining investment Official Interest Rates Australian GDP Annual Growth Rates (%) The RBA maintained the cash rate at 1.5%, consistent with sustainable growth in the economy and achieving inflation target over time Australian government 10 year bond yields at 2.61% Unemployment Rate Low unemployment rate of 5.6% (%) Australian Cash Rate Sources: Reserve Bank of Australia Australian Economy Snapshot (14 July 2017), Statement by Philip Lowe, Governor: Monetary Policy Decision (4 July 2017), Reserve Bank of Australia Capital Market Yields Government Bonds Daily (8 August 2017), Reserve Bank of Australia, Government-Bonds-Daily-Australian-Government-10-year-bond-Units-Per-cent-per-annum-Series-ID-FCMYGBAG10D 30

32 Australian Industrial Market Australian industrial supply is marginally above the long term average with construction activity predominantly concentrated in Melbourne and Sydney Occupier demand has been strong for both existing and speculative facilities, resulting in rental growth and lower vacancies in Sydney and Melbourne Australian investment sales volume remains restricted due to the declining level of investment grade stock coming to market Given the pent up investor demand for a limited pool of stabilised assets, corporate sale and leaseback activity has emerged and the transactions have evidenced a further compression in prime yields SQM ('000s) Australian Total Industrial Supply 2,000 1,600 1, As at Completed Sources: JLL Real Estate Intelligence Service Industrial Market Snapshot 2Q 2017; Knight Frank Industrial Vacancy Report July year annual average

33 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Prime grade net fact rent $psm p.a. Melbourne Industrial Market Supply: Supply levels remain above the long term average and total supply in 2017 is anticipated to be close to the previous construction peak Demand: Take up levels are increasing with 246,400 sqm of absorption recorded through both existing vacancies (51%) and pre-lease deals (49%), driven by the logistics and wholesale trade sectors Rents: While incentive levels remain higher compared to other markets, prime rental growth was recorded on a net and effective basis across all precincts except for the City Fringe Vacancy: As a result of strong absorptions (predominantly in the West), vacancy levels are falling and on course for a return to the long term average SQM ('000s) 900 Melbourne Industrial Total Supply 150 Melbourne Prime Grade Net Face Rents $81 $86 $84 $83 $84 $86 $88 $89 $89 $90 $ As at 2017 Completed 10 year annual average Sources: Jones Lang LaSalle Real Estate Intelligence Service Melbourne Industrial Final Data 2Q17; Jones Lang LaSalle Real Estate Intelligence Service Melbourne Industrial Snapshot 2Q17; Jones Lang LaSalle Real Estate Data Solution Melbourne Construction Projects from 2Q07 to 2Q17 32

34 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Prime grade net fact rent $psm p.a. Sydney Industrial Market Supply: Sydney is experiencing rising pre-lease developments associated with speculatively developed facilities Demand: Take-up result of 343,200 sqm almost double that of the 10-year average, led by occupiers from both the wholesale trade and retail trade sectors. Demand has been further boosted by increased infrastructure investment in New South Wales Rents: Prime rents have continued to strengthen and the growth has been the strongest level in the past 10 years due to increased demand and limited vacancy Vacancy: Sydney is currently experiencing reduced letting up times and levels of immediately available prime stock are limited for large-space occupiers who are looking to relocate. As a result the occupiers have moved to the pre-lease market to secure space SQM ('000s) 1, Sydney Industrial Total Supply Sydney Prime Grade Net Face Rents $112 $113 $109 $109 $113 $115 $121 $121 $123 $124 $130 As at 2017 Completed 10 year annual average Sources: Jones Lang LaSalle Real Estate Intelligence Service Sydney Industrial Final Data 2Q17; Jones Lang LaSalle Real Estate Intelligence Service Sydney Industrial Snapshot 2Q17; Jones Lang LaSalle Real Estate Data Solution Sydney Construction Projects from 2Q07 to 2Q17 33

35 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Prime grade net fact rent $psm p.a. Brisbane Industrial Market Supply: Supply levels in Brisbane are relatively low compared to the Melbourne and Sydney markets. However, Brisbane is on the rise to the long term average with a number of pre-lease projects currently under construction (primarily in the South) which are anticipated to reach completion in the second half of 2017 Demand: Occupier demand has exhibited steady improvement with most of the absorptions recorded in the Trade Coast. Enquiry levels are high for modern buildings with operational efficiencies due to competitive effective rents. Rents: Further contraction in prime net face rents across all precincts as a result of relatively high vacancy and aggressive incentives offered by developers to compete for pre-commitments Vacancy: Letting up periods remain lengthy (average 18.4 months estimated by Knight Frank) despite some improvement to vacancy levels SQM ('000s) Brisbane Industrial Total Supply Brisbane Prime Grade Net Face Rents $112 $116 $113 $117 $118 $120 $120 $119 $118 $117 $ As at 2017 Completed 10 year annual average Sources: Jones Lang LaSalle Real Estate Intelligence Service Brisbane Industrial Final Data 2Q17; Jones Lang LaSalle Real Estate Intelligence Service Brisbane Industrial Snapshot 2Q17; Jones Lang LaSalle Real Estate Data Solution Brisbane Construction Projects from 2Q07 to 2Q17; Knight Frank Brisbane Industrial Vacancy Report 2Q17 34

36 Summary FLT Highlights (For the Financial Period ended 30 June 2017 (1) ) A$101.4 mil Distributable Income 4.7% Above Forecast 7.08 Singapore cents DPU 5.5% Above Forecast 29.3% Aggregate Leverage (2) Available debt headroom for growth Key Portfolio Metrics (2)(3) 99.4% Occupancy 6.9 years WALE 6.6 years Portfolio Age 3.2% Average Fixed Rental Increases (1) For the period from 20 June 2016 to 30 June 2017 (2) As at 30 June 2017 (3) Includes the six properties acquired by FLT in August 2017 and one remaining property to be acquired at a later date 35

37 a Lot 1 Pearson Road, Yatala, Queensland THANK YOU Investor relations contact Mr. Ng Chung Keat Frasers Logistics & Industrial Asset Management Pte. Ltd. ir@fraserslogisticstrust.com Website: