Third Quarter FY 2019/20 Financial Results 28 April 2020 Singapore - - PowerPoint PPT Presentation

 Singapore  Australia  Malaysia  Japan  China

Third Quarter FY 2019/20 Financial Results

28 April 2020

Key highlights

 Income available for distribution stood at S$24.0 million for 3Q FY19/20

– Income available for distribution for 3Q FY19/20 stood at S$24.0 million, 4.1% lower than 3Q FY18/19 – Group revenue and NPI for 3Q FY19/20 declined by 8.9% and 11.1% y-o-y respectively. Excluding the rental rebate extended to the master tenant during asset enhancement period of Starhill Gallery in Malaysia, revenue and NPI for the Group in 3Q FY19/20 decreased by 5.2% and 6.4% y-o-y respectively – The decline in revenue and NPI for 3Q FY19/20 was mainly attributed to the rental assistance extended to tenants in Singapore, Malaysia and China to assist tenants in cushioning the impact

• f the COVID-19 pandemic, as well as depreciation of A$ against S$

– As per the Circular to Unitholders dated 25 April 2019, the income disruption resulting from the planned asset enhancement of Starhill Gallery will be largely mitigated by the Manager receiving part of its base management fees in units – Following the change of distribution frequency to semi-annual distributions with effect from 3Q FY19/20, there is no proposed distribution to its Unitholders for the three-month period from 1 January 2020 to 31 March 2020. The next distribution will be for the six-month period from 1 January 2020 to 30 June 2020. SGREIT will also adopt half-yearly reporting of financial statements with effect from FY 20/211.

3 Note: 1. For further details, please refer to the SGX-ST announcement issued on 8 April 2020.

Key highlights

 Property highlights

– NPI of Singapore retail portfolio declined 5.3% y-o-y mainly due to the rental assistance extended to eligible tenants to alleviate impact of COVID-19 pandemic – Singapore retail portfolio registered an actual occupancy of 99.5% as at 31 March 2020, with Ngee Ann City Property (Retail) being fully occupied as at 31 March 2020 – Actual occupancy of Australia office portfolio rose to 94.8% as at 31 March 2020, from 94.5% as at 31 December 2019, while actual occupancy of the Australia’s retail portfolio stood at 94.3% as at 31 March 2020 – Our assets in Singapore and Malaysia have encountered movement restriction orders while retail tenants in Australia and China were impacted by stricter social distancing measures and lower tourist arrivals

 Capital management

– Gearing level stood at 36.7% as at 31 March 2020. SGREIT also hedged about 87% of its borrowings and the average debt maturity is approximately 2.7 years as at 31 March 2020 – In March 2020, Fitch Ratings has assigned a “BBB” corporate credit rating with stable outlook to SGREIT, its medium-term notes programmes and the notes drawn under the programmes – SGREIT does not have any debt maturities in the next 12 months, save for S$100 million medium term notes due in February 2021 and some short-term debts drawn under its revolving credit facilities – The Group has available undrawn committed revolving credit facilities which is in excess of maturing debts and can be drawn down to fund its working capital requirement

4

Period: 1 Jan – 31 Mar 3 months ended 31 Mar 2020 (3Q FY19/20) 3 months ended 31 Mar 2019 (3Q FY18/19) % Change Gross Revenue (1) $46.7 mil $51.3 mil (8.9%) Gross Revenue (excluding Starhill Gallery) (1) $44.5 mil $47.0 mil (5.2%) Net Property Income (1) $35.2 mil $39.6 mil (11.1%) Net Property Income (excluding Starhill Gallery) (1) $33.1 mil $35.4 mil (6.4%) Income Available for Distribution $24.0 mil $25.0 mil (4.1%) Income to be Distributed to Unitholders

• (2)

$24.0 mil (3) NM DPU

• (2)

1.10 cents NM

3Q FY19/20 financial highlights

5 Notes:

• 1. Net of rental rebates extended to eligible tenants.
• 2. Following SGREIT’s change of its distribution frequency to semi-annual distributions, there is no proposed distribution declared for 3Q FY19/20.
• 3. Approximately S$1.0 million of income available for distribution for 3Q FY18/19 has been retained for working capital requirements.

Period: 1 Jul – 31 Mar 9 months ended 31 Mar 2020 (YTD FY19/20) 9 months ended 31 Mar 2019 (YTD FY18/19) % Change Gross Revenue (1) $143.4 mil $154.3 mil (7.1%) Gross Revenue (excluding Starhill Gallery) (1) $137.7 mil $141.4 mil (2.7%) Net Property Income (1) $109.2 mil $119.5 mil (8.6%) Net Property Income (excluding Starhill Gallery) (1) $103.9 mil $107.0 mil (2.9%) Income Available for Distribution $74.5 mil $76.4 mil (2.5%) Income to be Distributed to Unitholders $49.4 mil (2) (3) $73.7 mil (3) NM DPU 2.26 cents (2) 3.38 cents NM

YTD FY19/20 financial highlights

6 Notes:

• 1. Net of rental rebates extended to eligible tenants.
• 2. Following Starhill Global REIT’s change of its distribution frequency to semi-annual distributions, there is no proposed distribution declared for 3Q FY19/20. The reported

number for YTD FY19/20 comprise the total distributions declared for the six-month period from 1 July 2019 to 31 December 2019.

• 3. Approximately S$1.1 million of income available for distribution for the six months ended 31 December 2019 (2019: S$2.6 million for nine months ended 31 March 2019)

has been retained for working capital requirements.

2.90 3.10 3.58 3.80 3.90 4.12 4.39 5.11 5.18 4.92 4.55 1.15 1.13 2.49 1.13 1.13 1.10 1.10

• 1.00

2.00 3.00 4.00 5.00 6.00 7.00 8.00 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014/15 FY2015/16 FY2016/17 FY2017/18 FY2018/19 FY2019/20 Cents

5.00 FY 2014/15 (18 months) (3) 7.60 FY 2018/19 4.48

4Q 3Q 2Q 1Q

DPU performance

7 Notes: 1. DPU from 1Q 2006 to 2Q 2009 have been restated to include the 963,724,106 rights units issued in August 2009. 2. For the period from FY 2006 to FY 2018/19. DPU for FY 2014/15 (18 months ended 30 June 2015) has been annualised for the purpose of computing CAGR. 3. Following the change of Starhill Global REIT’s financial year end from 31 December to 30 June, FY 2014/15 refers to the 18-month period from 1 January 2014 to 30 June 2015. 4. Following SGREIT’s change of its distribution frequency to semi-annual distributions, there is no proposed distribution declared for 3Q FY19/20. The reported number for YTD FY19/20 comprise the total distributions declared for the six-month period from 1 July 2019 to 31 December 2019.

YTD FY19/20 (4)

3Q FY19/20 financial results

8 Note: 1. Includes certain finance costs, sinking fund provisions, straight-line rent adjustment, accretion of security deposits, trustee fees, commitment fees, deferred income tax, change in fair value of derivative instruments, foreign exchange differences, FRS 116 adjustments and management fees payable in units.

$’000 3Q FY19/20 3Q FY18/19 % Change Gross Revenue 46,684 51,267 (8.9%) Less: Property Expenses (11,514) (11,712) (1.7%) Net Property Income 35,170 39,555 (11.1%) Less: Finance Income Management Fees Trust Expenses Finance Expenses Change in Fair Value of Derivative Instruments Foreign Exchange Gain/(Loss) Income Tax 163 (3,878) (1,193) (9,753) (5,639) 457 (649) 230 (3,904) (1,124) (9,618) (1,639) (31) (934) (29.1%) (0.7%) 6.1% 1.4% 244.1% NM (30.5%) Total Return After Tax 14,678 22,535 (34.9%) Add: Non-Tax Deductible items and other adjustments (1) 9,339 2,503 273.1% Income Available for Distribution 24,017 25,038 (4.1%)

YTD FY19/20 financial results

9 Note: 1. Includes certain finance costs, sinking fund provisions, straight-line rent adjustment, accretion of security deposits, trustee fees, commitment fees, deferred income tax, change in fair value of derivative instruments, foreign exchange differences, FRS 116 adjustments and management fees paid/payable in units.

$’000 YTD FY19/20 YTD FY18/19 % Change Gross Revenue 143,402 154,330 (7.1%) Less: Property Expenses (34,161) (34,831) (1.9%) Net Property Income 109,241 119,499 (8.6%) Less: Finance Income Management Fees Trust Expenses Finance Expenses Change in Fair Value of Derivative Instruments Foreign Exchange Gain/(Loss) Income Tax 675 (11,801) (3,353) (29,668) (6,420) 766 (1,990) 678 (11,909) (3,088) (28,899) (7,413) (95) (2,663) 0.4% (0.9%) 8.6% 2.7% (13.4%) NM (25.3%) Total Return After Tax 57,450 66,110 (13.1%) Add: Non-Tax Deductible items and other adjustments (1) 17,060 10,296 65.7% Income Available for Distribution 74,510 76,406 (2.5%)

Net Property Income

$’000 3Q FY19/20 3Q FY18/19 % Change Wisma Atria Retail (1) Office (2) 9,009 1,842 9,835 1,654 (8.4%) 11.4% Ngee Ann City Retail Office (3) 10,215 2,442 10,465 2,999 (2.4%) (18.6%) Singapore Australia (4) Malaysia (5) Others (6) (7) 23,508 6,396 4,428 838 24,953 6,990 6,709 903 (5.8%) (8.5%) (34.0%) (7.2%) Total 35,170 39,555 (11.1%) Total 33,121 35,385 (6.4%)

Revenue

$’000 3Q FY19/20 3Q FY18/19 % Change Wisma Atria Retail (1) Office (2) 11,855 2,514 12,939 2,458 (8.4%) 2.3% Ngee Ann City Retail Office (3) 12,378 3,265 12,671 3,726 (2.3%) (12.4%) Singapore Australia (4) Malaysia (5) Others (6) (7) 30,012 10,886 4,656 1,130 31,794 11,367 6,932 1,174 (5.6%) (4.2%) (32.8%) (3.7%) Total 46,684 51,267 (8.9%) Total 44,506 46,970 (5.2%)

3Q FY19/20 financial results

10

Notes: 1. Mainly due to rental assistance for COVID-19 extended to eligible tenants. 2. Mainly due to lower operating expenses. 3. Mainly due to lower average occupancies and higher operating expenses. 4. Mainly due to depreciation of A$ against S$ and lower contributions from Australia’s retail portfolio, partially offset by higher contributions from Australia’s office portfolio. In Australian dollar terms, NPI declined by 2% y-o-y in 3Q FY19/20. 5. Mainly due to rental assistance for COVID-19 extended to master tenant and lower contributions from Starhill Gallery in relation to its planned asset enhancement. The impact on the distributable income will be largely mitigated by the Manager receiving part of its base management fees in units during the asset enhancement period. 6. Others comprise one property in Chengdu, China and two properties in Tokyo, Japan, as at 31 March 2020. 7. Mainly due to rental assistance extended to the tenant in China in March 2020.

(excluding Starhill Gallery) (excluding Starhill Gallery)

Net Property Income

$’000 YTD FY19/20 YTD FY18/19 % Change Wisma Atria Retail Office 29,598 5,340 29,699 5,254 (0.3%) 1.6% Ngee Ann City Retail Office (1) 30,796 8,022 31,348 8,961 (1.8%) (10.5%) Singapore Australia (2) Malaysia (3) Others (4) 73,756 19,767 13,043 2,675 75,262 21,408 20,135 2,694 (2.0%) (7.7%) (35.2%) (0.7%) Total 109,241 119,499 (8.6%) Total 103,903 106,985 (2.9%)

YTD FY19/20 financial results

11

Revenue

$’000 YTD FY19/20 YTD FY18/19 % Change Wisma Atria Retail Office 38,078 7,418 38,654 7,533 (1.5%) (1.5%) Ngee Ann City Retail Office (1) 37,408 10,332 37,955 11,189 (1.4%) (7.7%) Singapore Australia (2) Malaysia (3) Others (4) 93,236 32,962 13,720 3,484 95,331 34,719 20,804 3,476 (2.2%) (5.1%) (34.1%) 0.2% Total 143,402 154,330 (7.1%) Total 137,679 141,433 (2.7%)

Notes: 1. Mainly due to lower average occupancies and higher operating expenses. 2. Mainly due to depreciation of A$ against S$ and lower contributions from Australia’s retail portfolio, partially offset by higher contributions from Australia’s office portfolio. In Australian dollar terms, NPI declined by 2% y-o-y in YTD FY19/20. 3. Mainly due to rental assistance for COVID-19 extended to master tenant and lower contributions from Starhill Gallery in relation to its planned asset enhancement. The impact on the distributable income will be largely mitigated by the Manager receiving part of its base management fees in units during the asset enhancement period. 4. Others comprise one property in Chengdu, China and two properties in Tokyo, Japan, as at 31 March 2020.

(excluding Starhill Gallery) (excluding Starhill Gallery)

2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 $- $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90

Starhill Global REIT's Unit Price Movement and Daily Traded Volume (1 Apr 2019 to 31 Mar 2020)

Trading Volume Unit Price Trading Volume Unit Price Notes: 1. For the quarter ended 31 March 2020. 2. Free float as at 31 March 2020. The stake held by YTL Group is approximately 37.3% as at 30 January 2020 while the stake held by AIA Group is 7.5% as at 29 August 2019. 3. By reference to Starhill Global REIT’s closing price of $0.435 per unit as at 31 March 2020. The total number of units in issue as at 31 March 2020 is 2,186,900,678.

Liquidity statistics Average daily traded volume for 3Q FY19/20 (units)1 3.7 mil Estimated free float2 ~55% Market cap (S$)3 $951.3 mil

Unit price performance

12 Source: Shareinvestor

200 260 127 56 100 125 70 49 9 109 55 50 100 150 200 250 300 350 400 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 $ million

Debt maturity profile As at 31 March 2020

S$200m term loan S$260m term loan A$145m term loan A$63m term loan S$100m MTN S$125m MTN S$70m MTN JPY3.7b term loan JPY0.68b bond RM330m MTN S$55.3m RCF

Staggered debt maturity profile averaging 2.7 years as at 31 March 2020

13 Notes: 1. Comprises of short-term RCF outstanding as at 31 March 2020, which were drawn mainly for working capital purposes including part financing the ongoing asset enhancement works for Starhill Gallery. 2. In compliance with its financial covenants as at 31 March 2020. 3. A new S$2 billion multicurrency debt issuance programme was established in January 2020, which allows SGREIT to issue perpetual securities. 4. Interest coverage ratio is calculated for the 12 months ended 31 March 2020, as per the guidelines prescribed under the Property Funds Appendix issued by Monetary Authority of Singapore, which includes amortisation of upfront borrowing costs as interest expense, and base management fees payable/paid in units as deduction from the earnings before interest, tax, depreciation and amortisation. 5. Includes interest rate derivatives and benchmark rates but excludes upfront costs. 6. Includes interest rate derivatives such as interest rate swaps and caps.

Financial Ratios (2) 31 March 2020 Total debt (3) $1,160 million Gearing 36.7% Interest cover (4) 3.3x Average interest rate p.a.(5) 3.25% Unencumbered assets ratio 74% Fixed/hedged debt ratio (6) 87% Weighted average debt maturity 2.7 years * Peak maturity 33%

• f total debt and 12%
• f total assets

*

(1)

Borrowings fixed/hedged via interest rate swaps 82.9% Unhedged 12.9% Borrowings hedged via interest rate caps 4.2%

Interest rate and foreign exchange exposures

Interest rate exposure  Borrowings as at 31 March 2020 are about 87% hedged  Of the above, 83% of the borrowings are hedged by a combination of fixed rate debt and interest rate swaps, while 4% hedged are via interest rate caps Foreign exchange exposure Foreign currency exposure which accounts for about 36% of revenue for 3Q FY19/20 are partially mitigated by:  Foreign currency denominated borrowings (natural hedge);  Short-term FX forward contracts, where appropriate

3Q FY19/20 GROSS REVENUE BY COUNTRY BORROWINGS AS AT 31 MARCH 2020

14

Australia 23.3% Malaysia 10.0% Others 2.4% Singapore 64.3%

Total assets of approximately $3.2 billion

15

As at 31 March 2020

$’000 Non Current Assets 3,062,130 Current Assets 97,298 Total Assets 3,159,428 Non Current Liabilities 1,051,041 Current Liabilities (2) 206,955 Total Liabilities 1,257,996 Net Assets 1,901,432 Unitholders’ Funds 1,901,432 NAV statistics NAV Per Unit (as at 31 March 2020) (1) $0.87 Closing price as at 31 March 2020 $0.435 Unit Price Premium/(Discount) To:

• NAV Per Unit

(50.0%) Corporate Rating (Fitch Ratings) BBB/Stable

Notes:

1.

The computation of NAV per unit is based on 2,191,773,265 units which comprise (i) 2,186,900,678 units in issue as at 31 March 2020, and (ii) estimated 4,872,587 units issuable as partial satisfaction of management fees for 3Q FY19/20.

2.

As at 31 March 2020, the S$100 million Singapore MTN maturing in February 2021 and S$55.3 million revolving credit facilities were classified as current liabilities. The Group has available undrawn long-term committed revolving credit facilities to cover the net current liabilities of the Group, including the maturing MTN.

16

2

Portfolio Performance Update

Myer Centre Adelaide Adelaide, Australia

Balance of master / anchor leases and actively-managed leases

 Master leases and anchor leases, incorporating periodic rent reviews, represent approximately 49.0% of gross rent as at 31 March 2020

Ngee Ann City Property Retail (Singapore) The Toshin master lease expires in 2025 and provides for a review of the rental rate every three years during its term. Next rent review in June 2022 Starhill Gallery & Lot 10 (KL, Malaysia) New master tenancy agreements commenced in June 2019 and have long tenures of approximately 19.5 years and 9 years(1) for Starhill Gallery and Lot 10 Property respectively David Jones Building (Perth, Australia) Expires in 2032. Next rent review in August 2020 Myer Centre (Adelaide, Australia) Expires in 2032 17

Master leases / anchor leases, with periodic rent reviews, 49.0% (2) Actively- managed leases, 51.0%

Notes: 1. Assuming that the option to renew for the third three-year term for Lot 10 Property is exercised. 2. Excludes tenants’ option to renew or pre-terminate.

Includes the following: -

Retail portfolio actual occupancy rate resilient at 97.5%

18

As at 31 Dec 07 31 Dec 08 31 Dec 09 31 Dec 10 31 Dec 11 31 Dec 12 31 Dec 13 30 Jun 15 30 Jun 16 30 Jun 17 30 Jun 18 30 Jun 19 31 Mar 20

SG Retail 100.0% 98.3% 100.0% 99.1% 98.3% 99.8% 99.9% 99.4% 99.2% 99.2% 98.7% (99.1%) 99.4% (99.4%) 99.5% (99.5%) SG Office 98.7% 92.4% 87.2% 92.5% 95.3% 98.3% 99.0% 99.3% 95.6% 92.9% 90.3% (95.0%) 93.2% (93.9%) 87.4% (91.4%) Singapore 99.5% 96.0% 95.1% 96.5% 97.1% 99.2% 99.5% 99.3% 97.9% 96.8% 95.5% 97.0% 94.8% Japan 100.0% 97.1% 90.4% 86.7% 96.3% 92.7% 89.8% 96.1% 100.0% 100.0% 100.0% 100.0% 100.0% China 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 96.4% 100.0% 100.0% 100.0% 100.0% Australia

• 100.0%

100.0% 100.0% 99.3% 96.2% 89.7% 91.1% 88.8% 92.8% 94.3% Malaysia

• 100.0%

100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% SG REIT portfolio 99.6% 96.6% 95.4% 98.2% 98.7% 99.4% 99.4% 98.2% 95.1% 95.5% 94.2% 96.3% 96.3% Notes: 1. Based on commenced leases as at reporting date. For prior years, the reported occupancy rates were based on committed leases, which include leases that have been contracted but have not commenced as at the reporting date. 2. Based on committed leases as at reporting date.

(1) (1) (2) (1) (2) (2) (2) (1) (2) (2) (1) (1)

Top 10 tenants contribute 57.3% of portfolio gross rents

Notes: 1. As at 31 March 2020. 2. The total portfolio gross rent is based on the gross rent of all the properties. 3. Consists of Katagreen Development Sdn. Bhd., YTL Singapore Pte. Ltd., YTL Hotel (Singapore) Pte. Ltd., YTL Starhill Global REIT Management Limited and YTL Starhill Global Property Management Pte. Ltd. 19

Tenant Name Property % of Portfolio Gross Rent (1) (2)

Toshin Development Singapore Pte Ltd Ngee Ann City, Singapore 22.2% YTL Group (3) Ngee Ann City & Wisma Atria, Singapore Starhill Gallery & Lot 10, Malaysia 15.5% Myer Pty Ltd Myer Centre Adelaide, Australia 6.4% David Jones Limited David Jones Building, Australia 4.2% BreadTalk Group Wisma Atria, Singapore 2.2% Coach Singapore Pte Ltd Wisma Atria, Singapore 1.6% LVMH Group Wisma Atria, Singapore 1.5% Charles & Keith Group Wisma Atria, Singapore 1.3% Tory Burch Singapore Pte Ltd Wisma Atria, Singapore 1.3% Emperor Watch & Jewellery Wisma Atria, Singapore 1.1%

2.3% 7.8% 6.5% 4.0% 79.4% 4.5% 15.1% 14.6% 8.5% 57.3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% FY19/20 FY20/21 FY21/22 FY22/23 Beyond FY22/23

Portfolio lease expiry (as at 31 March 2020) (2)(3)

By NLA By Gross rent

Staggered portfolio lease expiry profile

Weighted average lease term of 8.9 and 5.7 years (by NLA and gross rent respectively)

Notes: 1. Excludes tenants’ option to renew or pre-terminate. 2. Lease expiry schedule based on commenced leases as at 31 March 2020. 3. Portfolio lease expiry schedule includes all of SGREIT’s properties. 4. Includes the Toshin master lease, master tenancy agreements for Malaysia Properties and the anchor leases in Australia and China. 5. Assuming that the option to renew for the third three-year term for Lot 10 Property is exercised. 20

(4)(5) (1) (1) (4)(5)

4.0% 13.2% 12.9% 7.0% 62.9%

0% 10% 20% 30% 40% 50% 60% 70% FY19/20 FY20/21 FY21/22 FY22/23 Beyond FY22/23

Retail Lease Expiry Profile by Gross Rents (as at 31 March 2020) (1)(2)(3)

Staggered portfolio lease expiry profile by category

Notes: 1. Based on commenced leases as at 31 March 2020. 2. Includes all of SGREIT’s retail properties. 3. Excludes tenants’ option to renew or pre-terminate. 4. Includes the Toshin master lease, master tenancy agreements for Malaysia Properties and the anchor leases in Australia and China. 5. Assuming that the option to renew for the third three-year term for Lot 10 Property is exercised. 6. Comprises Wisma Atria, Ngee Ann City and Myer Centre Adelaide office properties only. 21

(4)(5)

8.1% 27.4% 25.0% 18.0% 21.5%

0% 10% 20% 30% 40% 50% FY19/20 FY20/21 FY21/22 FY22/23 Beyond FY22/23

Office Lease Expiry Profile By Gross Rents (as at 31 March 2020) (1)(3)(6)

Singapore Retail (Wisma Atria & Ngee Ann City) Continues to attract niche brands to its prime location

Singapore Retail

 Revenue and NPI for 3Q FY19/20 declined by 5.4% and 5.3% y-o-y respectively  Wisma Atria: Tenant sales and footfall traffic in 3Q FY19/20 fell 15.4% and 20.4% y-o-y respectively due to strict social distancing measures and lower tourist arrivals

22

Japan bridal rings boutique Venus Tears

• pened at Wisma Atria in February 2020

$20 $25 $30 $35 $40 $45 $50 $55 $60

Jan-Mar 2018 Apr-Jun 2018 Jul-Sep 2018 Oct-Dec 2018 Jan-Mar 2019 Apr-Jun 2019 Jul-Sep 2019 Oct-Dec 2019 Jan-Mar 2020

Wisma Atria Retail Tenant Sales

S$ million Retail Sales Turnover

Singapore’s leading sneaker boutique Limited EDT Chamber opened at Wisma Atria in March 2020 in xx

10.5% 28.3% 33.2% 17.8% 10.2% 0.0% 4.0% 4.7% 1.3% 90.0% 0% 20% 40% 60% 80% 100% FY19/20 FY20/21 FY21/22 FY22/23 Beyond FY22/23 Wisma Atria Property Ngee Ann City Property

(1)

Singapore Retail Occupancy remains resilient amidst strict social distancing measures to curb COVID-19 infections

Lease expiry schedule (by gross rent) as at 31 March 2020

 Proactive leasing  Singapore Retail was 99.5%(2)

• ccupied on an actual basis as

at 31 March 2020

• Ngee Ann City Property

(Retail) is fully occupied(2) as at 31 March 2020

Occupancy rates (by NLA)(2)

23

Includes Toshin master lease at Ngee Ann City Property 91.7% 99.6% 99.0% 100.0% 98.4% 100.0% 99.3% 100.0% 99.4% 100.0%

50% 60% 70% 80% 90% 100% 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19 31-Mar-20

Wisma Atria Property Ngee Ann City Property

Notes: 1. Includes the master tenancy lease with Toshin Development Singapore Pte Ltd which expires in 2025. 2. Based on commenced leases as at reporting date.

Longchamp at Wisma Atria Property

Singapore Offices Diversified tenant base

24

 3Q FY19/20 revenue and NPI was lower by 6.5% and 7.9% y-o-y respectively  Actual occupancy was 87.4%(1) as at 31 March 2020 compared to 89.2%(1) as at 31 December 2019. On a committed basis, occupancy was 91.4%(2) as at 31 March 2020  However, Wisma Atria Property (Office) saw actual occupancy rising to 92.0%(1) as at 31 March 2020 from 91.3%(1) as at 31 December 2019

Notes: 1. Based on commenced leases as at reporting date. 2. Include leases that have been contracted but have not commenced as at the reporting date. The Great Room at Ngee Ann City Property Embraer at Ngee Ann City Property Valentino at Wisma Atria Property

88.5% 89.3% 87.7% 91.3% 92.0% 97.2% 95.9% 97.7% 87.7% 84.2% 50% 60% 70% 80% 90% 100% 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19 31-Mar-20

Wisma Atria Property Ngee Ann City Property

Singapore Offices

Lease expiry schedule (by gross rent) as at 31 March 2020

25 Note: 1.Based on commenced leases as at reporting date.

Occupancy rates (by NLA)(1)

6.6% 37.9% 20.7% 27.6% 7.2% 10.6% 24.7% 34.0% 13.9% 16.8% 0% 10% 20% 30% 40% 50% FY19/20 FY20/21 FY21/22 FY22/23 Beyond FY22/23

Wisma Atria Property Ngee Ann City Property

3.6% 12.3% 0.7% 5.8% 77.6% 2.8% 10.3% 7.2% 5.4% 74.3%

• 10%

10% 30% 50% 70% 90% FY19/20 FY20/21 FY21/22 FY22/23 Beyond FY22/23

Perth Properties Myer Centre Adelaide

Australia Properties Long-term leases with David Jones and Myer

Occupancy rates (by NLA)(1) Lease expiry schedule (by gross rent) as at 31 March 2020 (1)(2)

26

 Revenue and NPI for 3Q FY19/20 declined by 4.2% and 8.5% y-o-y respectively, mainly due to the depreciation of A$ against S$ as well as lower contributions from Australia’s retail portfolio including allowance for rental arrears, partially

• ffset by higher contributions from

the Australia’s office portfolio  Actual occupancy of Australia’s

• ffice portfolio has improved slightly

to 94.8%(1) as at 31 March 2020 from 94.5%(1) as at 31 December 2019  Actual occupancy for the Australia retail portfolio stood at 94.3%(1) as at 31 March 2020  David Jones’ and Myer’s long term leases account for 21.7% and 33.1%

• f Australia portfolio by gross rent

respectively as at 31 March 2020

Notes: 1. Based on commenced leases as at reporting date. 2. Excludes tenants’ option to renew or pre-terminate. 3. Includes the long-term lease with David Jones Limited which is subject to periodic rent reviews and expires in 2032. 4. Includes the long-term lease with Myer Pty Ltd which is subject to periodic rent reviews and expires in 2032.

(3) (4)

97.6% 97.4% 97.6% 98.0% 97.8% 89.9% 90.7% 90.0% 92.6% 92.6% 60% 70% 80% 90% 100% 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19 31-Mar-20

Perth Properties Myer Centre Adelaide

Malaysia – Starhill Gallery and Lot 10 Property Long-term leases with rental step-ups under renewed master lease agreements

27

 Revenue and NPI in 3Q FY19/20 were lower by 32.8% and 34.0% respectively over 3Q FY18/19, mainly due to the rental rebate extended to the master tenant during the asset enhancement period of Starhill Gallery  The impact of this on the distributable income will be largely mitigated by the Manager receiving part of its base management fees in units(1)  The impact to the revenue and NPI in 3Q FY19/20 was also due to some rental assistance extended to the master tenant to assist the retail sub- tenants impacted by the Movement Control Order due to COVID-19 pandemic

Artist’s impression of Starhill Gallery façade facing Jalan Bukit Bintang Improved accessibility with the completion of the new Bukit Bintang MRT Station Note: 1. Please refer to the Circular to Unitholders dated 25 April 2019 for more information.

 Revenue and NPI for 3Q FY19/20 was 3.7% and 7.2% lower compared to 3Q FY18/19 respectively mainly due to rental assistance offered to the tenant in China in March 2020  China Property has a sole tenant, Markor International Home Furnishings Co., Ltd. Chengdu Zongbei Store, which is one of the largest furniture retailers in China  In Japan, both assets maintained full actual occupancy(1) as at 31 March 2020

Others China Property and Japan Properties

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Daikanyama Ebisu Fort

China Property

Note: 1. Based on commenced leases as at reporting date.

3

Outlook

Lot 10 Kuala Lumpur, Malaysia

Market review

 Singapore

– Based on advanced estimates, Singapore’s economy contracted by 2.2% y-o-y in the first quarter of 2020. On a q-o-q seasonally adjusted annualised basis, the economy shrank by 10.6% – Singapore’s gross domestic product forecast for 2020 has been further downgraded to -4.0% to -1.0% – Consumer spending was hit as retail sales (excluding motor vehicles) declined by 10.2% y-o-y in February 2020 – Singapore Tourism Board expects visitor arrivals in 2020 to fall by about 25% to 30% – International visitor arrivals in February 2020 plunged by 51.2% y-o-y, following significantly tighter border controls since February 2020

 Australia

– A significant economic contraction is expected in the June quarter and the unemployment rate is expected to increase to its highest level in years

30 Sources: Ministry of Trade and Industry Singapore, Singapore Department of Statistics, Singapore Tourism Board, Reserve Bank of Australia

Updates in view of COVID-19 pandemic

 Global

– The unprecedented COVID-19 pandemic has adversely impacted many industries worldwide including the retail sector and created significant uncertainty in global economic prospects and the Group’s operating environment. Globally, many Governments have implemented measures to contain the spread – Our assets in Singapore and Malaysia have encountered movement restriction orders while retail tenants in Australia and China were impacted by stricter social distancing measures and lower tourist arrivals

 Singapore

– The ‘circuit breaker’ measures announced by the Singapore Government on 3 April 2020 have been extended for another four weeks until 1 June 2020 and tighter measures are being implemented to curb the spread of COVID-19 infections. Wisma Atria Property and Ngee Ann City Property are open only for some essential services between 7 April 2020 and 1 June 2020 – A new temporary law, COVID-19 (Temporary Measures) Act, was passed in April 2020 which allows tenants to defer their rent payments for an initial period of six months, if they satisfy certain conditions set out in the Act. The rental payments of affected tenants may potentially be deferred during this period

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Updates in view of COVID-19 pandemic

 Australia

– While David Jones remains open, most of our tenants including Myer and UNIQLO have chosen to temporarily close their stores in response to heightened social distancing measures. Myer has been closed since 29 March 2020 and will remain so until at least 11 May 2020

 Malaysia

– Starhill Gallery and Lot 10 Property have largely closed since Movement Control Order (MCO) kicked in on 18 March 2020

32 Note:

• 1. Property tax rebate as per the Budget 2020 announced by the Singapore Government on 18 February 2020 and the Resilience Budget announced on 26 March 2020

Ensure long-term partnership with tenants by helping them mitigate business disruption

– Rental rebates amounting to ~S$13.7 million were extended in phases to tenants in SGREIT, of which ~S$10.8 million relate to the property tax rebate to be received from the Singapore Government1 which will be passed on fully to our tenants in Singapore – Currently evaluating partial rental rebate and deferments for our tenants in Australia based

• n the Mandatory Code of Conduct for landlords and tenants released by the National

Cabinet of Australia – SGREIT’s Australia portfolio contributed 18.2% to the Group’s NPI in 3Q FY19/20

Social distancing measures at our mall and offices

33 Floor markings in front of food and beverage stalls for social distancing Restricted entry at basement entrance of Wisma Atria to reduce crowding in the mall Temperature screenings for contractors Restricted entry at Wisma Atria entrances Only takeaway and delivery is allowed at food and beverage outlets Notices and floor markings in lifts

Prudent and defensive strategy

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 Maintain financial flexibility

– Undertake cost-saving measures, including a 10% reduction in the base management fees payable by SGREIT for three months effective from April 2020, and delay non- essential capital expenditures – Switch to semi-annual distributions to achieve cost savings and greater financial flexibility

 Prudent capital management

– The Group does not have any debt maturities in the next 12 months, save for S$100 million medium term notes due in February 2021 and some short-term debts drawn under its revolving credit facilities – Additionally, the Group has available undrawn committed revolving credit facilities which is in excess of maturing debts and can be drawn down to fund its working capital requirements – The Group’s gearing level is at 36.7% as at 31 March 2020

Prudent and defensive strategy

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 Adopt a cautious approach

– The COVID-19 pandemic which has caused intensified social distancing measures in our core markets is expected to have a significant adverse impact on Starhill Global REIT’s financial performance, income available for distribution and cashflow for the remaining period of the financial year ending 30 June 2020 – Consumption spending on discretionary items and retail sales are likely to take a further hit as stay at home measures come into effect, along with the barring of international visitors and social distancing measures in malls(1) – Rental decline is expected to accelerate next quarter, as landlords face increasing pressure to strike the balance between occupancy and rents(1) – Tenant sales and shopper traffic are expected to decline substantially in the next quarter following strict social distancing and ‘circuit breaker’ measures as well as lower tourist arrivals – Tenant relief measures will also impact revenue contribution from the Group’s retail portfolio – Valuation of investment properties will be subject to significant uncertainty given the constantly evolving impact from COVID-19 pandemic – Given the fluidity of the COVID-19 pandemic, the full impact cannot be ascertained at this

• juncture. The Manager will closely monitor the COVID-19 situation and work proactively with the

tenants to tide through this difficult period

Note:

• 1. CBRE Research, Singapore MarketView Q1 2020, Cold feet from COVID-19, 17 April 2020

Looking ahead

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FY 2019/20 (June ’20)

Completion Myer Centre Adelaide: Annual rent review for key tenant Myer

FY 2020/21 (June ’21) and beyond

Organic growth from rental reversion

3Q FY 2019/20 (March ’20)

Optimising returns with asset enhancements Creating value through opportunistic acquisitions & divestments

SGREIT continues to refine its portfolio and explore potential asset management initiatives and acquisition opportunities David Jones: Upward-only lease review secured in August 2017 Toshin: Master lease in Ngee Ann City Retail provides for a review of the rental rate every three years during its term until 2025. Next rent review in June 2022 Plaza Arcade: Annual rent review for anchor tenant UNIQLO Katagreen: Commencement of new master tenancy agreements in June 2019, with lease tenures of 19.5 years and 9 years(1) for Starhill Gallery and Lot 10 Property respectively, with periodic rent step-ups Starhill Gallery: Asset enhancement works has commenced and are expected to take approximately 2 years

Note:

• 1. Assuming that the option to renew for the third three-year term for Lot 10 Property is exercised.

Next rent review in August 2020 China Property: Next rent step-up in April 2020 for sole tenant Markor International Home Furnishings Co., Ltd. Chengdu Zongbei Store

Summary

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Quality Assets: Prime Locations

• 10 mid- to high-end retail properties in five countries
• The core markets are Singapore, which makes up about 69.1% of total asset value, as well as

Australia and Malaysia which make up about 27.9% of total asset value. China and Japan account for the balance of the portfolio

• Quality assets with strong fundamentals located strategically

Strong Financials: Financial Flexibility

• Stable gearing at 36.7%
• SGREIT’s corporate rating of ‘BBB’ with stable outlook
• Establishment of a new S$2 billion multicurrency debt issuance programme in January 2020

Developer Sponsor: Strong Synergies

• Strong synergies with the YTL Group, one of the largest companies listed on the Bursa Malaysia,

which has a combined market capitalisation of US$5.3 billion together with four listed entities in Malaysia as at 28 February 2020

• Track record of success in real estate development and property management in Asia Pacific

region Management Team: Proven Track Record

• Demonstrated strong sourcing ability and execution by acquiring 5 quality malls over the last 11

years

• Myer Centre Adelaide (Adelaide, Australia), DJ Building and Plaza Arcade (Perth, Australia),

Starhill Gallery and Lot 10 (Kuala Lumpur, Malaysia)

• Asset redevelopment of Wisma Atria, Lot 10, Plaza Arcade and China Property demonstrates the

depth of the manager’s asset management expertise

• International and local retail and real estate experience

Appendices

Starhill Gallery Kuala Lumpur, Malaysia

~69.1% of total asset value attributed to Singapore

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3Q FY19/20 GROSS REVENUE RETAIL/OFFICE

*Others comprise one property in Chengdu, China, and two properties located in central Tokyo, Japan, as at 31 March 2020.

Retail 85.2% Office 14.8% Singapore 64.3% Australia 23.3% Malaysia 10.0% Others* 2.4% Singapore 69.1% Australia 14.9% Malaysia 13.0% Others* 3.0%

ASSET VALUE BY COUNTRY AS AT 31 MAR 2020 3Q FY19/20 GROSS REVENUE BY COUNTRY

Singapore – Wisma Atria Property Diversified tenant base

WA retail trade mix – by % gross rent (as at 31 March 2020) WA office trade mix – by % gross rent (as at 31 March 2020)

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Real Estate & Property Services 22.7% Retail 20.2% Medical 16.4% Trading 12.5% Consultancy/ Services 7.2% Others 7.1% Government- related services 4.1% Banking & Financial Services 3.1% IT 2.8% Aerospace 2.6% Beauty/Health 1.3% Fashion 25.1% F&B 25.0% Shoes & Accessories 18.1% Jewellery & Watches 13.0% Health & Beauty 12.6% General Trade 6.2%

Singapore – Ngee Ann City Property Stable of quality tenants

NAC office trade mix – by % gross rent (as at 31 March 2020)

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Toshin 87.1% Health & Beauty 9.8% Services 2.5% General Trade 0.6% Real Estate & Property Services 23.3% Retail 19.9% Health & Beauty 11.8% Banking and Financial Services 11.4% Petroleum- related 9.6% Medical 5.6% Aerospace 4.9% Others 4.8% Consultancy/ Services 4.2% Trading 2.6% Information Technology 1.9%

NAC retail trade mix – by % gross rent (as at 31 March 2020)

References used in this presentation

1Q, 2Q, 3Q, 4Q means where applicable, the periods between 1 July to 30 September; 1 October to 31 December; 1 January to 31 March and 1 April to 30 June 3Q FY19/20 means the period of 3 months from 1 January 2020 to 31 March 2020 3Q FY18/19 means the period of 3 months from 1 January 2019 to 31 March 2019 YTD FY19/20 means the period of 9 months from 1 July 2019 to 31 March 2020 YTD FY18/19 means the period of 9 months from 1 July 2018 to 31 March 2019 DPU means distribution per unit FY means the financial year GTO means gross turnover IPO means initial public offering (Starhill Global REIT was listed on the SGX-ST on 20 September 2005) NLA means net lettable area NPI means net property income pm means per month psf means per square foot WA and NAC mean the Wisma Atria Property (74.23% of the total share value of Wisma Atria) and the Ngee Ann City Property (27.23% of the total share value of Ngee Ann City) respectively All values are expressed in Singapore currency unless otherwise stated Note: Discrepancies in the tables and charts between the listed figures and totals thereof are due to rounding

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Disclaimer

This presentation has been prepared by YTL Starhill Global REIT Management Limited (the “Manager”), solely in its capacity as Manager of Starhill Global Real Estate Investment Trust (“Starhill Global REIT”). A press release, together with Starhill Global REIT’s unaudited financial statements, have been posted on SGXNET

• n the same date (the “Announcements”). This presentation is qualified in its entirety by, and should be read in conjunction with the Announcements posted on
• SGXNET. Terms not defined in this document adopt the same meanings in the Announcements.

The information contained in this presentation has been compiled from sources believed to be reliable. Whilst every effort has been made to ensure the accuracy of this presentation, no warranty is given or implied. This presentation has been prepared without taking into account the personal objectives, financial situation or needs of any particular party. It is for information only and does not contain investment advice or constitute an invitation or offer to acquire, purchase or subscribe for Starhill Global REIT units (“Units”). Potential investors should consult their own financial and/or other professional advisers. This document 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 limitation) general industry and economic conditions, interest rate and foreign exchange trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income, changes in operating expenses (including employee wages, benefits and training costs), property expenses and governmental and public policy changes. Investors are cautioned not to place undue reliance

• n these forward-looking statements, which are based on the Manager’s view of future events.

The past performance of Starhill Global REIT is not necessarily indicative of the future performance of Starhill Global REIT. The value of Units and the income derived from them may fall as well as rise. The 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 that the Manager redeem their Units while the Units are listed. It is intended that unitholders of Starhill Global 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. 43

YTL Starhill Global REIT Management Limited

CRN 200502123C Manager of Starhill Global REIT 391B Orchard Road, #21-08 Ngee Ann City Tower B Singapore 238874 Tel: +65 6835 8633 Fax: +65 6835 8644 www.starhillglobalreit.com

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