regionalreit

www.dbsvickers.com Refer to important disclosures at the end of this report

OVERWEIGHT FSSTI: 3228.95 HSI: 25610.21 KLCI: 1287.15 SET: 848.71

Stock Picks

Stocks Country Market Cap Share Price Price %

(US$) ($LC) Target Upside

CPN Retail Fund Thailand 363 10.50 12.00 14 CMT Singapore 4,336 3.56 3.93 10 CDL HT Singapore 1,238 2.05 2.90 42 FCT Singapore 603 1.33 1.66 25 Fortune REIT Hong Kong 520 4.98 6.83 37

Source: DBS Vickers

Prices as of 7 May 2008

DBS Group Research . Equity 14 May 2008

Industry Focus

Regional REITs

Shopping for REITs

Yield spreads at a high. REITs in our Far East universe have put on a good showing YTD. We believe REITs would continue to be favoured owing to their defensive earnings qualities while valuations are still attractive with yield spreads of 260-360bps over the respective risk free rates, the highest in the last 2 years. Our 3 themes identified below, center around earnings resilience, value proposition and inter-country relative performance. Retail therapy. We remain positive on retail REITs in Hong Kong and Singapore where retail spending trend should be sustained. The government’s push to develop Singapore as a major tourist and MICE destination should have positive knock-on impact on retail sales. Our top buys are CMT, FCT and Fortune REIT for retail exposure and CDL HT as a hospitality play in Singapore. Solid fundamentals: Thai PFPOs offer an attractive proposition for long-term investors looking for value. Average sector yield of 7.7% is one of the highest in the region. After having lagged the region in recent years, we believe it is at an inflexion point. Positive economic fundamentals and investor friendly policy changes stemming from removal of capital controls, should provide a firm base for a re-rating. While we recognize illiquidity could be a constraint, large cap PFPOs like CPNRF and SPF, with free float of about US$215m and US$160m should enjoy investor attention. Relative attraction of Singapore over HK: The better showing of HK-REITs over S-REITs YTD had narrowed the yield gap between the two significantly. At this point, we see S-REITs offering a more compelling story. We think there is room for smaller REITs such as FCT and Suntec to play catch up given the disparity between their yields vs their larger market cap peers.

Industry Focus

Regional REITs

Page 2

Table of Contents

Regional Summary 3 Relative Performance 4 Regional Yield 5 REIT Valuation Screen 6 In Conversation with CapitaMall Trust 8 CapitaMall Trust Corporate Profile 10 REITs Performance Tracker - Singapore 12 - Hong Kong 21 - Thailand 28 - Malaysia 35 Corporate Profile Singapore 43

Allco Commercial REIT 44 Ascendas India Trust 46 Ascendas REIT 48 Ascott Residence Trust 50 CapitaCommercial Trust 52 CDL Hospitality Trust 54 Frasers Centerpoint Trust 56 K-REIT Asia 58 Macquarie MEAG Prime REIT 60 MapleTree Logistics Trust 62 Parkway Life REIT 64 Suntec REIT 66

Hong Kong 69

Champion REIT 70 Fortune REIT 72 Prosperity REIT 74

Thailand 77

CPN Retail Growth Property Fund 78 Samui Airport Property Fund 80

Malaysia 83

Axis REIT 84 Appendix Economic Forecasts 87 REIT News 88 Property News Snippets 89 Regional REIT Guidelines 90

Lock Mun Yee (65) 6398-7972

[email protected]

Jeff Yau (852) 2820-4912 [email protected]

Chanpen Sirithanarattanakul (662) 657-7824

[email protected]

June Ng (603) 2711-0970 [email protected]

Andy Sim (65) 6398-7969 [email protected] Singapore Research Team (65) 6398-7966

[email protected]

MICA (P) NO.031/10/2007

Industry Focus

Page 3

REGIONAL SUMMARY Strategy We have identified 3 key themes across our regional universe going forward

i) exposure into the resilient retail sector ii) Thailand as a value play iii) attractive relative valuation of Singapore over HK

Retail, retail We believe retail REITs offer a more compelling story of strong organic growth, asset enhancement driver and potential expansion through acquisitions. Firstly, retail rents are still low in the historical context across the region and is underpinned by positive demand/supply fundamentals. Notwithstanding inflationary concerns, we think that the retail spending trend would remain intact. Moreover, in the Singapore context, the government’s push to promote Singapore as a major tourist and MICE destination through a doubling in tourist arrivals to 17m and tripling tourist expenditure to $30b by 2015, should have positive spillover impact on retail sales. In addition to rental rate expansion, retail REITs are also able to enjoy value-add benefits from asset enhancement activities to provide another wing to DPU growth. Moreover, current actual and implied REIT cap rates are still supportive of potential acquisition activities. Retail REITs are also not highly leveraged. Our preference for retail REITs across the region include CMT, FCT and Fortune REIT. Solid fundamentals We think Thailand is at a point of inflexion. Fundamentals have improved, judging by the resurgence in consumer confidence, and sentiment. Investment environment is friendlier with the recent lifting of the 30% capital control through a relaxation in the unremunerated reserve requirement (URR) and hedging requirement on short term capital inflows. Property tax cuts stimulus such as reduction in specific business tax, transfer fees and mortgage registration fees should also boost property transactions. The positive effects of all these changes are long reaching and should form a solid fundamental platform for a continued re-rating of Thai property including property funds

believe it would appeal to long-term investors looking for value

attractive yield of 9.9%, the highest amongst Thai REITs. Relative Singapore/HK play The gap between HK and Singapore yield spreads has narrowed. While the S-REITs have done well YTD, putting on 1.7% YTD, HK-REITs have performed even better, +6.7% YTD, particularly Link REIT, and this had narrowed the yield gap between HK and Singapore significantly. As such, we believe there is scope for S-REITs to continue outperforming relative to the HK market. Within the S-REIT sector, the strong performance of large cap REITs have pushed share prices to or close to their trading range highs. Hence, we see opportunity

for the smaller cap REITs such as FCT and Suntec to play catch up. Relative Yield Comparison of S-REIT and HK-REIT Source: DBS Vickers Key issues Funding concerns Financing and refinancing issues will remain key to the performance of the REIT markets over the next 12-18 months, particularly in Singapore and Hong Kong. Within Singapore, we estimate some $2.4b and $3.8b worth of existing debt that has to be refinanced for the remaining of this year and 2009, representing 47% of total indebtedness of the S-REIT sector and c18% of the sector’s enterprise value. While recent CB issues by Suntec and CCT have allayed fears to a certain extent on the availability of funding, the cost of funding is another issue to grapple with. Within the S-REIT sector, MLT and Allco have gearing levels in excess of 45% and this is likely to drag on share price performance due to reduced potential to acquire for growth. In Hong Kong, the recent proposal by Champion REIT to buy Langham Place for HK$12.5b, the biggest deal in HK-REIT post listing history to date and its subsequent financing activities will be closely watched as an measure of liquidity and credit risk premium indicator. Slow acquisition and M&A market Equity markets appear to have signaled the end of the credit crisis in April as stocks rallied and bond markets remained lacklustre. However, at the same time, physical property transactions have dwindled as credit flows remain tight. Against the backdrop of slowing global growth, rising inflation and possibility of further credit tightening policy measures, capital flows would likely remain limited and this will impede REIT expansion via acquisitions or M&A activity. No visible catalyst for M-REITs While M-REIT’s valuations are still attractive, we are hard put to find any major near term catalyst for outperformance of this sector. Furthermore, long-awaited regulatory changes for the M-REIT sector are unlikely to materialize in this quarter. Hence, DPU growth of 12% is expected to be led by organic and asset enhancement activities.

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

2007 2008Spore Spread HK Spread Gap

within the region. Our top pick is CPNRF, as a retail REIT and

for public offering (PFPOs or REITs). While we recognize that trading illiquidity of these PFPOs is likely to be constraint, we

in investor interest in Thai REITs. SPF currently offers very the largest PFPO by market cap, should benefit from the recovery

Regional REIT Handbook

Industry Focus

Page 4

RELATIVE PERFORMANCE

• EPRA NAREIT Index underperformed global REITs YTD by 20% • • Hong Kong, Thailand, Singapore and Malaysia markets outperformed the EPRA NAREIT Asia Index YTD

Global REIT Performance YTD

Source: Bloomberg

Regional REIT Relative Performance Regional Property Relative Performance

Source: Bloomberg, DBS Vickers Breakdown of Global REIT Market Cap by Region

Source: Bloomberg, DBS Vickers

60

80

100

120

J-08 J-08 F-08 M-08 A-08 M-08S-reit HK-reit T-reit M-reit

60

70

80

90

100

110

120

J-08 J-08 F-08 M-08 A-08 M-08

Singapore Hong Kong Thailand Malaysia

-20%

-15%

-10%

-5%

0%

5%

10%

Global Europe US EPRANAREIT

Australia Japan HK Spore Malaysia Thailand

Europe19.1%

Nth America53.1%

ANZ12.3%

Thai0.3%

Msia0.3%

Japan8.6%

Spore4.3%

HK1.6%

Nth Asia ex Jpn0.4%

EPRA NAREIT

Australian and Japan markets were the worst performers, down 16.4% and 13.2%


Industry Focus

Page 5

REGIONAL YIELD COMPARISONS • HK-REIT yields average 5-5.5%, impacted by Link REIT’s share price surge. Excluding Link, average yields are closer to 7-

8% • HK office REITs trades at largest yields of c8%, the largest 530bps yield spread. Singapore office REIT yields have dipped

to the low end at 4.5-5.5% or 308bps spread • HK retail REITs are generating 4.7% yield impacted by Link REIT’s recent share price run up • Thai industrial REITs are offering average 7.8% yields

Yields of Regional REITs

REIT Yield By Sector and Region

Source: DBS Vickers Regional P/BV Comparison

Source: DBS Vickers

0%

2%

4%

6%

8%

10%

Thailand Australia Malaysia Singapore Japan US HK Europe

0%

2%

4%

6%

8%

10%

12%

Office Retail Industrial Hotel Svc Apt Healthcare Cinema Airport Plantation

T-reit HK-reit M-reit S-reit

(x)

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5

Reits Developers LandlordsSingapore HK Thailand Malaysia

Resident ial


Industry Focus

Page 6

REIT VALUATION SCREEN Ranking by FY08 and FY09 Yield Ranking by 07-09 DPU CAGR Growth

REIT FY08 (%) FY09 (%) Samui 9.9

10.4

Champion 8.6 8.0 Prosperity 8.4 7.6 CPNRF 8.0 8.2 Allco 8.0 8.1 MLT 7.5 8.0 ART 6.6 7.3 MM Prime 6.2 6.4 CDL HT 5.8 6.4

REIT (%)

CDL HT 21 Ascendas India* 17 MLT 12 MM Prime 11 CMT 11 ART 11 A-REIT 10 Suntec 10 FCT 6

* Bloomberg consensus * Price target includes new acquisitions

Ranking by DCF-based Target Price Upside Ranking by P/BV

REIT (%) ART 77 Allco 49 Axis 47 MLT* 47 Ascendas India* 46 CDL HT 41 K-REIT Asia 37 MM Prime 36 Champion 31 Samui 31

REIT (x) Champion 0.5 Fortune 0.5 Allco 0.6 Prosperity 0.6 Suntec 0.7 GZI 0.8 Samui 0.8 MM Prime 0.8 ART 0.8

* Price target includes new acquisitions

Ranking by ROE Ranking by FY08 Gearing (x)

REIT (%) Axis 9.3 CPNRF 8.3 MLT 8.2 A-REIT 7.9 Samui 7.3 CDL HT 6.9 CMT 6.5 FCT 5.2 PREIT 4.7 ART 4.2

REIT (%) CPNRF Cash Samui Cash PREIT 7.9 Ascendas India 19.0 CDL HT 19.1 Fortune 22.6 Champion REIT 24.8 Suntec 26.9 MM Prime 29.6 ART 35.6

Source: DBS Vickers

CCT 22

Cambridge* 8.99.2

Cambridge* 8.9 9.2


Industry Focus

Page 7

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Industry Focus

Page 8

IIINNN CCCOOONNNVVVEEERRRSSSAAATTTIIIOOONNN

with Mr Pua Seck Guan, CEO

CapitaMall Trust

This section aims to share management’s views and thoughts with investors on a regular basis through a Q&A session. In this inaugural edition, we feature CapitaMall Trust, the largest S-REIT by market cap and leading retail mall operator in Singapore. We have the pleasure of speaking with Mr Pua Seck Guan, CEO of CapitaMall Trust Management Ltd, the REIT manager for CMT, who shared his view of the retail market in Singapore and CMT’s strategy going forward.


Industry Focus

Page 9

Q. Can you comment on the retail landscape evolution in

A. Managing retail properties through a REIT structure has benefited the entire retail industry. The establishment of REIT has transformed the real estate industry as developers have increased confidence in investing in large projects as REITs offer an exit strategy to developers. The retail industry has benefited from such large-scale projects as it has drawn more new-to-market retailers. Post establishment, talent pool of professional asset and retail managers taking a disciplined and professional approach to enhance asset value, extract higher total returns to unitholders, as well as providing more vibrant and varieties in shopping experience for customers and channel capital to enhance assets for higher returns. Q. What is your view on the retail leasing landscape in Singapore given that there are 3 mega and high-end malls coming up along Orchard Rd? A. Speaking from the perspective of ION Orchard, we have been able to attract new tenants, flagship stores of international standards which are comparable to key gateway cities such as Tokyo, Hong Kong, London and New York. The market is also deepening. The establishment of 2 IRs, Youth Olympics, F1 will draw more tourist arrivals as well as convention crowd, benefiting from growth in China and India. With more immigration and government policy to drive population from 4.5m to 6m, there is a lot of scope for retail mall operators. In terms of global benchmarks, Singapore is still lagging in terms of rental per capita, trailing at one third of HK and 20% of US. This gives a lot of upside. Also, Singapore is moving towards a more service oriented economy and income is still rising. These are all positive indicators for the retail sector. Q. How do you see occupancy costs performing and where do you see room for growth? A. Currently, occupancy costs for suburban properties are within the 13-18% range and we believe that at 20%, it is still at a healthy mark. In terms of the high-end, some are still in the region of 6-8% and there is certainly room for growth. Q. The completion of high-end malls and suburban complexes would introduce more polarization into the retail market. What is you view on retail cap rates going forward? A. Retail cap rates in general are likely to stabilize at current levels, 5-5.5%. We think there would be a slight difference, of

not more than 50bps between the high-end and good suburban malls. More important is the level of sustainable income that the properties can generate. Q. What is CMT’s strategy in terms of growth and positioning going forward? A. In terms of growth thrusts, CMT has always focused on delivering not only DPU growth but also total returns to unitholders. This is via both organic and asset enhancement initiatives as well as acquisition strategies. An estimated 40% of CMT’s DPU growth since listing comes from AEI activities, where with professional management, we were able to deliver higher returns via increased efficiency as well as proper monitoring of retail sales. Our larger size also enables us to have economies of scale. In terms of positioning, we are keen to be market leaders in all segments of the retail market. We target to achieve an S$8bn asset size by 2010. Pipeline is clear. In addition to ION Orchard, other buildings such as Clarke Quay and One North are also potential investment candidates. Q. Can you share more colour on the overseas strategy growth plans for CMT? A. Singapore will remain our core market and we would target for it to account for about 70% of assets. In terms of overseas assets, we have started with a 20% stake in CRCT for China retail exposure. Capitaland has established presence in the retail sector in Malaysia as well as India. We have stated before that Malaysia is where things could happen this year. Q. How do you see M&A activity panning out in the retail REIT segment? A. Anecdotal evidence has shown that a REIT does not trade well if it does not meet investor expectations. Hence, we see the differences within each sub-segment. Q. CMT has a fairly sizeable amount of refinancing due in 2009. When is that due and what are your plans in this respect? A. CMT has about $655m of debt to be refinanced in 2H09. This is made up of $335m CMBS issue and $320m term loan due in August. Depending on market conditions then, we would consider both equity as well as debt options.

Singapore pre and post establishment of REITs?


Corporate Profile

CapitaMall Trust

Page 10


Bloomberg: CT SP | Reuters: CMLT.SI

BUY S$3.56 FSSTI: : 3,228.95

Price Target: 12-Month S$3.93 Description CapitaMall Trust (CMT) owns and invests in quality income-producing retail assets in Singapore. CMT’s portfolio consists of 13 retail malls with an appraised value of S$5.9bn as at 31 Dec 2007. CMT also holds a 20% stake in CapitaRetail China Trust, another retail REIT listed on the SGX, which invests in retail malls in China. Manager & Strategy The Manager of (CMT) is CapitaMall Trust Management Limited (CMTML), who is an indirect wholly owned subsidiary of CapitaLand Limited, one of Asia’s largest listed real estate companies. Sponsor Capitaland is one of Asia’s largest listed real estate companies, providing CMT with an acquisition pipeline.

PRICE PERFORMANCE Historical Yield Band

P/BV

0.8

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Jan-03 Aug-03 M ar-04 Oct-04 M ay-05 Dec-05 Jul-06 Feb-07 Sep-07 Apr-08

(x)

Historical Relative Trend Analysis Yield vs 10-yr Govt Bond (since listing)

Sources: Company, Bloomberg, DBS Vickers

CMT offers investors exposure to the relatively more resilient retail sector with earnings upside coming from positive organic rental growth and asset enhancement initiatives. Its attractiveness is also underpinned by a strong acquisition pipeline visibility from its sponsor, which should enable the group to retain its pole position as the largest listed Singapore-centric retail S-REIT over the medium term.

The retail rental upcycle should benefit CMT with 55% of its gross revenue due for renewal over FY08-09. AEI accounts for about 38% of DPU growth since listing. It has earmarked capex of S$265m in FY08-09 which should not impact its balance sheet given a low gearing of 37%. In the longer run, ION Orchard, Clarke Quay and One North, could be injected into the REIT, to expand its asset base towards its target of S$8b by 2010.

The stock is trading at FY08-09 yields of 4.3-4.8% and is 10% below our target price of $3.93.

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S$

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Floor 7%

CMT

0.01.02.03.04.05.06.07.08.0

Jan-03 Oct-03 Jul-04 Apr-05 Jan-06 Oct-06 Jul-07 Apr-08

CM T M AS 10 yr Govt Bond

(%)

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CM T FSSTI FSTRE Real Estate

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Ceiling 3%

Corporate Profile

CapitaMall Trust

Page 11

EARNINGS DATA Gross Revenues vs NPI Margin

Portfolio Details ( Top ten properties by Valuation)

DPU Performance ( since listing) Asset Class by Valuation

Lease Expiry Profile Debt Maturity Profile S$m

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FY08 FY09 FY10 FY11 FY12

Statement of Total Return (S$ m) Rates & Ratio FY Dec 2006A 2007A 2008F 2009F FY Dec 2006A 2007A 2008F 2009F

Gross revenue 332 408 473 515 Net Prop Inc Margins (%) 65.6 72.9 73.7 74.7Property expenses (114) (110) (125) (130) Net Income Margins (%) 50.5 50.8 51.4 51.9Net Property Income 218 297 348 385 Dist to revenue (%) 51.1 53.7 54.2 54.8Other Operating expenses (23) (32) (34) (36) Managers & Trustee’s fees 6.9 7.8 7.3 7.0Other Non Opg (Exp)/Inc 0 0 0 0 to sales (%) Net Interest (Exp)/Inc (42) (63) (76) (88) ROAE (%) 6.4 6.2 6.5 7.2Exceptional Gain/(Loss) 0 0 0 0 ROA (%) 4.0 3.8 4.0 4.3Net Income 167 207 243 267 ROCE (%) 4.9 5.1 5.4 5.9Tax 0 0 0 0 Int. Cover (x) 4.7 4.2 4.1 4.0Minority Interest 0 0 0 0 Current Ratio (x) 0.2 0.3 0.3 0.3Preference Dividend 0 0 0 0 Quick ratio (x) 0.2 0.3 0.3 0.3Net Income After Tax 167 207 243 267 Aggregate Leverage (%) 35.6 34.8 36.6 37.9Total Return 420 498 243 267 Operating CFPS (S cts) 14.2 17.7 14.7 15.8Non-tax deductible Items 2 12 13 15 Free CFPS (S cts) (45.0) 19.6 6.3 9.7Net Inc available for Dist. 169 219 256 282

NAV per shr (S cts) 190.5 235.5 223.0 222.2 DPU (S cts) 11.7 13.8 15.4 17.0 Distribution Yield (%) 3.3 3.9 4.3 4.8 Revenue Gth (%) 36.5 22.9 16.0 9.0

N Property Inc Gth (%) 41.3 36.6 17.1 10.5 Net Inc Gth (%) 43.1 23.8 17.2 10.1


Tampines M all10%

Rivervale M all1%

Sembawang Shopping Centre

1%

Raffles City36%

Lot One 5%Plaza Singapura

13%

Jurong Entertainment Ctre1%

Junction 8 7%

IM M Building8%

Hougang P laza1%

Funan DigitaLife M all4%

Bukit Panjang Plaza3%

Bugis Junction10%

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35.0%

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2008 2009 2010 >2010

Bugis Junction 420,713 720 1,711Bukit Panjang Plaza 134,862 251 1,861Funan DigitaLife Mall 296,601 304.5 1,027Hougang Plaza 70,095 50.5 720

IMM BuildingRetail: 418,261 Office: 489,314 600 661

Junction 8 246,476 521 2,114

Jurong Entertainment Centre 110,764 89 804

Lot One Shopper's Mall 198,994 385.5 1,937 Plaza Singapura 497,467 922 1,853

Raffles CityRetail: .362,173 Office: 380,288 2586 3,483

Rivervale Mall 81,564 86 1,054 Sembawang Shopping Centre 323,487 94 291

Tampines Mall 323,487 720 2,226

NLA sqf Valuation S$'m 1 Val

S$psf

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S$m

56%

58%60%62%

64%66%68%

70%72%74%

76%

Gross Revenues NPI NPI M argin RHS

Industry Focus

Page 12

SINGAPORE REITS PERFORMANCE TRACKER The S-REIT sector has grown to 20 REITs since starting in 2002 with a market cap of S$28b, accounting for 28% of the Far East market share and 4.3% of the global market. In terms of diversity, assets of S-REITs are spread-out over Singapore (77%), HK/China/Japan (15%) and the remaining in rest of SEA, ANZ and other countries. Office, retail and industrial properties make up 84% of the asset base by value. Share Price Performance The FSTRE Index (inclusive of property companies and S-REITs) fell 20% to a low in Mar 08 before rebounding in Apr and is now just 4% shy of the year’s high. Large cap developers such as Capitaland are now trading close to YTD high while City Dev and Keppel Land are still 11-15% below their levels at the start of this year. S-REITs have generally done better, year to Apr 08, rebounding close to 40% from the low in Feb-Mar 08 period. Convertible bond issues by Suntec and CCT as well as strong 1Q08 results allayed investors’ fears. Of note is CMT, which rose 40% from the trough to a new year’s high of $3.72. Suntec, which was earlier adversely impacted by negative newsflow on its refinancing activities, saw a more moderate 20% pick up. In mid Apr 08, we upgraded our call on the property sector to overweight as disparities between stock valuations and physical prices appear overdone. However, developers are likely to trade range bound in the short term in the absence of catalysts such as improving take up at new home launches. Valuations S-REITs are yielding an average 5.5% or 3.6% spread over the 10-year rate, the highest yield gap since early 2005 helped by continued DPU growth and a declining interest rate environment. Office, retail and hotel REITs are offering

5.5-5.7% FY08 yields while industrial REITs are averaging 7%. In terms of P/BV, the sector is trading at 0.9x compared to the high of 1.1x in 2007. Retail REITs are generally trading above book NAV, at 1.1-1.5x as investors accord a premium for value creation through asset enhancement activities and the more resilient rental outlook. In contrast, office REITs are trading below book NAV as investors priced in a potential peaking in office rents. Key issues We believe S-REITs would continue to outperform over the next 6 months. Earnings defensiveness and strong organic growth should sit well with investors looking for earnings security, low earnings volatility and attractive yields. Benign interest rate environment in the short term is also unlikely to put pressure on yield spreads. Refinancing concerns will continue to be the focus of investors’ attention under the current tight credit market conditions. There is an estimated $2.4b of debt maturing for the remainder of 2008 and $3.8b in 2009, or about 47% of total S-REIT indebtedness and c18% of sector’s enterprise value. While acquisition growth had slowed down significantly, recent proposed purchases by CCT of One George St, to be funded via debt and easing of pressure on cap rates as sellers become more realistic in the more subdued present environment, could provide another catalyst for S-REIT performance. Average sector gearing is still at a healthy 33%. On the flipside, S-REITs with refinancing concerns and high gearing such as MLT are likely to underperform its peers until it degears its balance sheet. Our top S-REIT selections are those in the retail and hospitality sectors as both are enjoying positive rental growth trends such as CMT, FCT and CDL HT.

FSSTI vs REITs Index Property vs REITs Index


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Spore Reits Spore Property


Industry Focus

Page 13

VALUATIONS DPU / EPS* Book Price/

Share

Price Target Price Recmd DPU / EPS * (S cts) CAGR (%) Yield (%) / PE (x)* NAV PS BV

Singapore FYE (S$) (S$) 07 08 09 07-09 07 08 09 (S cts) (x) REITs Allco Dec 0.825 1.23 Buy 6.7 6.6 6.7 0 8.2 8.0 8.1 143 0.6 Ascendas Reit Mar 2.68 2.86 Buy 12.7 14.1 15.6 10 4.8 5.3 5.8 184 1.5 Ascendas India Mar 1.26 1.84 Buy 5.4 6.1 7.3 17 4.3 4.8 5.8 104 1.2 Ascott Residence Trust Dec 1.30 2.30 Buy 7.7 8.6 9.5 11 5.9 6.6 7.3 159 0.8 CapitaCommercial Trust Dec 2.35 2.93 Buy 8.7 10.7 12.9 22 3.7 4.5 5.5 273 0.9 CapitaMall Trust Dec 3.56 3.93 Buy 13.8 15.4 17.0 11 3.9 4.3 4.8 223 1.6 Cambridge Ind trust+ Dec 0.71 NR NR 6.3 6.3 6.5 2 8.9 8.9 9.2 77 0.9 CDL HT Dec 2.05 2.90 Buy 9.0 11.9 13.1 21 4.4 5.8 6.4 159 1.3 First REIT+ Dec 0.72 NR NR 7.1 7.3 7.4 2 9.9 10.1 10.3 92 0.8 Frasers Centrepoint Trust Sep 1.33 1.66 Buy 6.5 7.2 7.4 6 4.9 5.4 5.6 114 1.2 K-REIT Asia Dec 1.43 1.96 Buy 8.8 7.4 8.8 0 6.2 5.2 6.1 220 0.7 Lippo Mapletree Reit+ Dec 0.55 NR NR 6.0 6.5 6.2 2 11.0 11.9 11.4 95 0.6 Macquarie MEAG Prime REIT Dec 1.20 1.63 Buy 6.2 7.4 7.7 11 5.2 6.2 6.4 159 0.8 Mapletree Logistics Trust Dec 1.03 1.51 Buy 6.6 7.7 8.2 12 6.4 7.5 8.0 94 1.1 MacarthurCook REIT Mar 0.955 NR NR 7.7 NA 9.2 NA 8.0 NA 9.6 130 0.7 Parkway Life Dec 1.26 1.50 Buy 6.3** 6.6 6.8 4 1.8 5.2 5.4 136 0.9 Suntec Sep 1.61 1.98 Buy 8.1 9.0 9.8 10 5.1 5.6 6.1 247 0.7 Developers Allgreen Props Dec 1.23 1.66 Buy 9.2 9.8 14.1 24 13.4 12.5 8.7 147 0.8 Capitaland Dec 6.70 Buy 60.9 49.4 74.6 11 11.0 13.6 9.0 393 1.7 City Devts Dec 11.96 12.81 Buy 77.7 102.9 180.8 53 15.4 11.6 6.6 646 1.9 Ho Bee Invts Dec 1.05 1.24 Buy 36.9 17.6 31.1 -8 2.8 6.0 3.4 125 0.8 Keppel Land Dec 6.00 6.64 Buy 34.1 49.7 58.5 31 17.6 12.1 10.3 364 1.6 SC Global Dec 1.47 1.58 Hold 7.2 21.3 43.2 145 20.5 6.9 3.4 106 1.4 UOL Dec 3.87 5.26 Buy 21.2 28.8 37.1 33 18.3 13.5 10.4 505 0.8 Wheelock Props Dec 2.16 1.85 Fully Valued 20.7 27.5 37.8 35 10.4 7.8 5.7 201 1.1 Wing Tai Jun 2.06 2.17 Hold 51.3 16.4 23.0 -33 4.0 12.5 9.0 202 1.0 Landlords Singapore Land Dec 7.08 9.82 Buy 33.3 34.3 40.5 10 21.2 20.6 17.5 1007 0.7 UIC Dec 2.72 2.91 Hold 9.0 12.5 17.4 39 30.3 21.7 15.6 251 1.1 Others Amara Hldgs Dec 0.555 0.82 Buy 0.9 2.6 3.7 103 61.3 21.6 14.9 32.0 1.7 Banyan Tree Hldgs Dec 1.42 2.03 Buy 4.9 5.9 7.6 25 29.0 24.2 18.7 79.6 1.8 Hotel Grand Central Dec 0.99 1.34 Buy 7.3 7.6 8.0 5 13.6 13.0 12.4 124.7 0.8 Hotel Properties Dec 2.91 3.98 Buy 10.0 18.1 24.4 56 29.1 16.1 11.9 249.4 1.2 ARA Asset Mgmt Dec 0.75 1.13 Buy 5.8 6.4 8.1 18 12.8 11.8 9.3 19.3 3.9 * For developers & landlords + DPUs based on consensus ** Annualised NR: Not Rated Prices as of 7 May 2008 Sources: Company, Bloomberg & DBS Vickers

7.20


Industry Focus

Page 14

VALUATIONS

Gearing (%) ROE (%) ROA (%) NPI / Gross Margins * (%) Price Performance (%) No of Units / Free float

Avg Liquidity

Singapore 08 08 08 07 08 09 3M 6M 12M Shares *(m) (%) (‘000)

REITs Allco 47 3.0 1.6 81.6 82.0 81.8 11 (19) (34) 710 76.3 2,426 Ascendas Reit 38 7.9 4.7 74.3 75.6 75.6 22 7 0 1,326 67.1 5,129 Ascendas India 19 0.4 0.3 58.7 58.9 59.5 10 (26) 7 753 48.8 1,821 Ascott Residence Trust 36 4.2 2.4 45.0 44.2 44.6 2 (12) (34) 608 53.9 957 CapitaCommercial Trust 38 3.5 2.4 72.5 79.7 81.1 19 (6) (21) 1,386 59.6 4,476 CapitaMall Trust 37 6.5 4.0 72.9 73.7 74.7 20 2 (14) 1,664 65.8 5,346 Cambridge Ind Trust # 37 8.3 5.2 86.4 NA NA 12 (1) (18) 795 84.2 1,939 CDL HT 19 6.9 5.4 94.7 92.7 91.4 (5) (12) 6 825 45.5 1,588 First REIT# 16 7.7 5.7 99.1 NA NA 1 (8) (9) 273 79.7 338 Frasers Centrepoint Trust 41 5.2 3.2 66.7 68.0 68.5 12 (10) (24) 619 42.9 443 K-Reit Asia 28 1.1 0.6 70.5 67.9 68.5 (13) (50) (55) 647 28.8 472 Lippo Mapletree Reit # 10 9.2 7.1 94.2 NA NA (12) NA NA 1,062 43.3 3,283 Macquarie MEAG Prime REIT 30 4.2 2.8 74.6 78.5 78.8 13 6 (4) 954 67.6 1,755 Mapletree Logistics Trust 61 8.2 3.3 88.1 90.0 90.0 16 (11) (26) 1,108 70.0 2,817 MacarthurCook Reit # 28 13.6 9.8 74.9 NA NA 4 (18) (18) 261 73.1 670 Parkway Life 8 4.7 4.4 93.6 94.3 94.6 11 2 (2) 602 53.5 902 Suntec 27 3.3 2.5 73.9 74.5 75.4 8 (9) (19) 1,493 83.5 8,709 Developers Allgreen Props 23 6.8 4.2 44.2 50.0 50.0 8 (22) (29) 1,590 47.1 4,093 Capitaland 52 14.7 5.8 35.0 35.0 35.0 18 (12) (19) 2,821 60.0 14,085 City Devts 40 16.9 7.5 52.4 63.3 67.6 4 (19) (28) 909 68.2 3,158 Ho Bee Invts 77 15.0 6.2 45.8 45.8 45.8 (8) (43) (55) 737 37.6 1,866 Keppel Land 40 14.6 5.7 30.1 41.4 47.8 3 (27) (34) 721 42.3 3,248 SC Global 193 21.8 4.5 35.0 50.0 50.0 (13) (42) (42) 396 43.5 744 UOL cash 5.7 3.6 52.8 53.8 50.9 6 (23) (21) 796 77.1 1,954 Wheelock Props cash 14.4 10.8 33.2 40.0 40.0 11 (4) (32) 1,197 24.6 615 Wing Tai 39 8.3 4.1 35.1 26.4 42.9 (3) (30) (36) 793 60.7 3,187 Landlords Singapore Land 14 3.4 2.4 60.2 58.2 48.2 11 (23) (33) 412 21.6 454 UIC 23 5.1 2.4 45.2 52.5 50.5 0 (10) (10) 1,377 28.6 736 Others Amara Hldgs 104 8.3 3.1 55.5 62.2 65.1 5 (28) (26) 577 34.9 306 Banyan Tree Hldgs 35 7.2 2.9 80.1 80.0 80.0 6 (32) (44) 761 53.5 1,027 Hotel Grand Central cash 6.2 4.9 26.0 26.0 26.0 11 (6) (1) 466 41.1 63 Hotel Properties 48 7.3 3.3 31.5 35.0 36.0 (13) (32) (47) 504 39.3 279 ARA Asset Mgmt cash 34.8 24.9 64.2 57.7 57.2 10 (42) (35) 582 37.9 4,047 *For developers / landlords & others **Includes ST investments # Book NAV PS, Gearing, ROE and ROA based on latest reported by company ARA Asset Mgmt refers to Operating Margins Sources: Company, Bloomberg & DBS Vickers


Industry Focus

Page 15

SINGAPORE Distribution By Asset Type Distribution by Geography

S-REIT Yield Spread S-REIT Yield Trend by sector

0%

2%

4%

6%

8%

10%

2003 2004 2005 2006 2007 2008S-reit Yield Spread

3%

4%

5%

6%

7%

8%

9%

2003 2004 2005 2006 2007 2008

Office Retail

S-REIT Yield Trend by sector S-REIT P/BV vs Developers and Landlords

Implied Cap Rates

Sector Cap rates (%)

% Chg yoy

S-REITs Implied Cap Rates (%)

Prime Office 4.25-5.25 Unch 4.6 Retail 5.0-5.5 Unch 4.4-5.0 Industrial 6.5-7.5 Up 4.8-6.6 Hotel 5-6 Down 5.9 Healthcare 4.73 Unch 5.5

Singapore77%

SEA4%

HK/China/Japan15%

Others2%

ANZ2%

Hotel10%

Others6%

Retail29%

Office28%

Industrial27%

3%

4%

5%

6%

7%

8%

9%

S-02 M-03 S-03 M-04 S-04 M-05 S-05 M-06 S-06 M-07 S-07 M-08

Retail Hospitality

(x)

0.0

0.4

0.8

1.2

1.6

2.0

S-02 M-03 S-03 M-04 S-04 M-05 S-05 M-06 S-06 M-07 S-07 M-08

Reits Developers Landlords


Industry Focus

Page 16

Industrial S-REIT Yield Industrial S-REIT P/BV

Office S-REIT Yield Office S-REIT P/BV

Retail S-REIT Yield Retail S-REIT P/BV

Hospitality S-REIT Yield and P/BV Hospitality S-REIT Yield and P/BV

Shareholding Structure of REIT Management Company No of Shareholders in Mgmt Co Mgmt Moves* Company =>3 2 1CCT X K-REIT X Allco X Suntec X CMT X FCT X MM Prime x Suntec X Lippo-Mapletree X A-REIT X Resignation of non-exec James Hodgkinson and

independent director Peter Dodd following MGM’s sale of AREIT and Reit manager stake (31 Mar)

Ascendas India X Cambridge X MLT X MI Reit X ART X CDL HT X Parkway Life X Saizen X

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6

AREIT

AIT

CREIT

MIREIT

MLT

P/Bv

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8

FCT

CT

MMP

FRT

SUN

P/Bv

0.0 0.2 0.4 0.6 0.8 1.0

MMP

ALLC

CCT

KREIT

SUN

P/Bv

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4

CDREIT

ART

P/Bv

0.0 2.0 4.0 6.0 8.0 10.0

AREIT AIT

CREIT MIREIT

MLT

Yeild

0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

MMP ALLC CCT

KREIT SUN

Yield

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0%

FCT CT

MMP FRT SUN

Yield

5.4% 5.6% 5.8% 6.0% 6.2% 6.4% 6.6% 6.8%

CDREIT ART

Yield

*Please refer to appendix for details


Industry Focus

Page 17

Funding Monitor

RE Assets

Total Debt

Gross Gearing+

Gearing limit

Targeted gearing

Corporate Rating

Ave Cost of

debt

1Q08 Int

Cover Debt Maturity Profile (S$b)

(S$b) (S$b) (%) (X) 2008 2009 2010 2011 =>2012 Office Allco 1.88 0.88 47.0% 60% 45% Ba2 4.0 4.1 0.07 0.55 0.00 0.00 0.27 CCT 5.19 1.46 28.2% 60% 45% A3 3.9 3.3 0.11 0.58 0.15 0.62 0.00 K-REIT* 1.98 0.58 29.3% 60% 45% Baa3 3.9 2.3 0.39 0.19 0.00 0.00 0.00 Sub total 9.05 2.92 32.3% 0.57 1.32 0.15 0.62 0.27 Retail/Mixed CMT 5.88 2.04 34.8% 60% 45% A2 3.5 5.3 0.19 0.66 0.13 0.35 0.78 FCT 1.04 0.31 29.5% 60% 45% A3 3.8 4.0 0.05 0.00 0.00 0.26 0.00 Lippo Mapletree 1.15 0.12 10.2% 35% 35% nil na na 0.00 0.00 0.00 0.00 0.12 MM Prime 2.22 0.66 29.9% 60% 45% Baa1 2.7 4.9 0.22 0.02 0.38 0.00 0.05 Suntec 5.72 1.88 32.9% 60% 45% Baa1 3.1 1.9 0.50 0.70 0.00 0.25 0.45 Sub-total 16.01 5.01 31.3% 0.96 1.38 0.51 0.86 1.40 Industrial A-REIT 4.17 1.56 37.4% 60% 45% A3 3.4 5.3 0.00 0.04 0.30 0.28 0.95 Ascendas India 1.00 0.04 4.0% 60% 45% - 3.1 na 0.00 0.04 0.00 0.00 0.00 Cambridge 0.96 0.36 37.4% 60% 45% BBB- 3.5 4.3 0.00 0.00 0.00 0.00 0.36 MLT 2.42 1.40 57.9% 60% 45% Baa2 3.3 3.2 0.33 0.20 0.11 0.11 0.65 MI Reit 0.46 0.13 27.6% 60% 45% Baa3 2.4 7.0 0.00 0.13 0.00 0.00 0.00 Sub-total 9.01 3.49 38.7% 0.33 0.41 0.41 0.39 1.96 Hospitality ART 1.56 0.54 34.6% 60% 45% Baa2 3.0 3.6 0.18 0.02 0.00 0.35 0.00 CDL HT 1.63 0.31 18.8% 60% 45% BBB- 2.4 10.6 0.03 0.28 0.00 0.00 0.00 Sub-total 3.19 0.84 26.3% 0.21 0.30 0.00 0.35 0.00 Healthcare Parkway Life 0.33 0.05 15.6% 60% 45% BBB+ 3.9 13.0 0.00 0.05 0.00 0.00 0.00 First 0.83 0.03 4.0% 35% 35% BBB+ 3.0 13.0 0.00 0.03 0.00 0.00 0.00 Saizen 0.69 nil 0.0% 35% 35% - 3.2 - 0.01 0.32 0.00 0.00 0.00 Sub total 1.85 0.08 4.3% 0.01 0.41 0.00 0.00 0.00 Total 39.11 12.34 31.6% 2.08 3.81 1.07 2.22 3.62 * K-REIT’s estimated debt position post rights issue + Actual as last reported by company


Industry Focus

Page 18

Acquisition Monitor (S$m) 2002 2003 2004 2005 2006 2007 2008f 2009f Office Allco - - - - 880 750 - - CCT - - 1918 147 1317 -21 1347* - K-REIT - - - - 631 939 - - Retail/Mixed CMT 916 300 753 1648 878 710 - - FCT - - - - 915 48 150** 103** Lippo Mapletree - - - - - 1004 146 - MM Prime - - - 1304 - 253 - - Suntec - - 2150 355 - 24 1002 - Industrial A-REIT 585 340 856 615 301 303 400*** 400*** Ascendas India - - - - - 889 218+ 112+ Cambridge - - - - 533 361 50++ - MLT - - - 898 695 842 228+++ 700+++ MI REIT - - - - - 488 18 - Hospitality ART - - - 911 268 187 36 - CDL HT - - - 846 340 - - - Healthcare and others Parkway Life - - - - - 234 35 - First - - - - - 831 - - Saizen - - - - - - - - Total 1501 640 5677 6724 6758 7842 3630 1315

*CCT’s acquisitions include Wilkie Edge pre-completed development (S$182m) and $1165m One George St ** Assumes Northpoint 2 and Yew Tee Mall to be acquired in 2008 and 2009 by FCT ***Assumes $400m of new acquisitions pa for A-REIT + New buys factored into forecast for Ascendas India ++ Announced $50m of new and completed buys to date by Cambridge +++ Announced $228m of new and completed buys to date and assumes $700m of new buys in FY09 by MLT


Industry Focus

Page 19

Post Listing Equity Fund Raising History Stock Date Gross Amt Raised ($m) Method

Office

Allco Jun 07 210.0 2-for-5 rights issue @ $1.04

CCT Aug 06 797.5 479m new units @ $1.665

Apr 08 280.0

K-REIT Apr 08 551.7 8-for-5 rights issue @ $1.39

Retail/Mixed

CMT Jun 03 128.1 119.8m new units @ $1.07

Dec 03 59.9 45m new units @ $1.33

Jul 04 238.4 147m new units @ $1.62

Oct 05 407.5 173.4m new units @ $2.35

Aug 06 401.0 174.35m new units @ $2.30

Oct 07 352.1 97m new units @ $3.63

Suntec Oct 06 180.0 Placement of 120m new units @ $1.50

Feb 08 250.0 Issue $250m CBs with conversion price of $1.968

Apr 08 20.0 Exercised option for $20m CBs with conversion price of $1.968

Industrial

A-REIT Feb 04 186.2 160.5m new units @ $1.16

Jun 04 115.0 82.14m new units @ $1.40

Nov 04 400.0 258.07m new units @ $1.55

Feb 05 205.0 109.9m new units @ $1.865

Oct 05 240.0 112.68m new units @ $2.13

Feb 07 100.0 40.323m new units @ $2.48

Cambridge Oct 07 166.2 276.97m new units @ $0.60

MLT Nov 05 49.3 48.33m new units @ $1.02

Jan 06 130.0 135.94m new units @ average $0.956

Jan 07 349.0 296.82m new units @ average $1.176

Hospitality

ART Sep 06 48.4 44m new units @ $1.10

May 07 199.0 105.33m new units @ average $0.956

CDL HT Jul 07 303.1 120.16m new units @ average $2.52

Issue $280m CBs with conversion price of $2.6762


Industry Focus

Page 20

SINGAPORE PROPERTY MARKET OVERVIEW Office Rental rates vs Capital Values Demand, Supply & Occupancy

Residential Rental rates vs Capital Values Demand, Supply & Occupancy

Retail Rental rates vs Capital Values Demand, Supply & Occupancy

Industrial Rental vs Capital Values Demand, Supply & Occupancy

5 Star Hotel Capital Values (US$/room) Demand, Supply & Occupancy

-4000

-3000-2000

-1000

0

10002000

3000

4000

50006000

7000

96 97 98 99 00 01 02 03 04 05 06 07 08f 09f0%

5%

10%

15%

20%

25%

30%

35%

Annual Supply (rooms) Annual Demand (rooms) Vacancy rate (RHS)

0

2

4

6

8

10

12

14

16

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 20084%

5%

6%

7%

8%

9%

10%

11%

12%

13%

14%

Annual Supply (msf) Annual Demand (msf) Vacancy rate (RHS)

-1.0

0.0

1.0

2.0

3.0

4.0

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08f 09f4%

5%

6%

7%

8%

9%

10%


-2

-1

0

1

2

3

4

5

6

7

88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08f 09f0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%


200000

240000

280000

320000

360000

400000

440000

1999 2000 2001 2002 2003 2004 2005 2006 2007

60

70

80

90

100

110

120

98 99 00 01 02 03 04 05 06 07 08f

Price Index Rental Index

0

50

100

150

200

250

88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08f


0

50

100

150

200

90 92 94 96 98 00 02 04 06 1Q08


0

50

100

150

200

250

90 92 94 96 98 00 02 04 06 1Q08


0

10000

20000

30000

40000

50000

60000

88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08f 09f2%

4%

6%

8%

10%



Industry Focus

Page 21

HONG KONG REITS PERFORMANCE TRACKER The HK–REIT market is valued at close to HK$68b in terms of market cap, giving it a 1.6% of the global and 10.5% of the Far East REIT market share. In terms of asset size, about HK$107.3b worth of assets are held under REIT structures, of which 91% are made up of office (38%), retail (38%) and hotel (15%) properties. No new REITs were listed in the first 4 months of the year. Share price performance Since the start of the year, Hong Kong REITs have staged a better showing than property stocks. The Link REIT showed a gain of 12% in share price YTD amidst a shaky market, thanks to its resilient income stream as well as benefiting from successive interest rate cuts. Prosperity REIT and RREEF China Commercial Trust also held up firmly. However, the proposed acquisition of Langham Place Mall and Office Towers, which was approved by unitholders, failed to boost the share price of Champion REIT. On the other hand, Hong Kong property stocks have been under pressure until the recent strong rally, partly because of increased uncertainties for the residential market, led by a slowdown in global economic growth. Hang Seng Property Index had once dipped 35% to its low of 24,831 in mid-March, but regained its lost ground and ended 32,341, a 15% drop y-t-d, against 9.9% decline in the broader market. Property stocks have seen their prices approaching or even surpassing our price targets.

Valuations The HK-REIT sector average yield is estimated at 5.0% presently while the band ranges from 7-8% for office REITs and below 4.5-5% for retail REITs. Yield spreads are at historical highs of 2.7% owing to lower interest rates. The high office REIT yields are driven by financial engineering activities. Retail REIT yields average 4.7%, largely impacted by Link REIT, which had enjoyed a good run up in stock prices. The sole hotel REIT, Regal is trading at about 10%. Key issues Looking ahead, there appears not to be any major near term catalyst for the HK-REIT sector but we expect this sector to

The fund raising exercise by Champion REIT for its HK$12.5bn purchase of Langham Place, the largest transaction by a REIT post listing, is likely to be closely watched by the market as an indication of the market’s risk appetite. HK-REITs were a beneficiary of the declining interest rate trend over the past 9 months, particularly Link REIT, which has a sizeable proportion of its debt at floating rates. However, with interest rates at already low levels, additional benefits from further rate downside are likely to be more muted going forward.

HSI vs REITs Index


Property Index vs REITs Index

60

70

80

90

100

110

120


HSI Index Reits

60

70

80

90

100

110

120


Reits Property

remain in favour as it is defensive in a volatile market.


Industry Focus

Page 22

VALUATIONS

DPU / EPS* Book Price/

Share

Price Target Price Recmd DPU / EPS * (HK$) CAGR (%) Yield (%) / PE (x)* NAV PS BV

Hong Kong FYE (HK$) (HK$) 07 08 09 07-09 07 08 09 (HK$) (x) REITs Champion REIT Dec 3.97 5.19 Buy 0.34 0.34 0.32 -3 8.6 8.6 8.0 7.3 0.5 Fortune REIT Dec 4.98 6.83 BUY 0.35 0.36 0.36 1 7.1 7.2 7.3 9.4 0.5 Prosperity REIT Dec 1.59 1.80 Buy 0.13 0.13 0.12 -3 8.2 8.4 7.6 2.5 0.6 GZI REIT+ Dec 2.94 n.a. NR 0.23 0.21 0.21 -4 7.7 7.0 7.1 3.5 0.8 Link REIT+ Mar 18.98 n.a. NR 0.67 0.74 0.83 11 3.6 3.9 4.4 13.6 1.4 Regal REIT+ Dec 1.94 n.a. NR 0.15 0.20 0.20 14 7.5 10.3 10.3 3.5 0.6 RREEF China REIT+ Dec 3.65 n.a. NR 0.18 0.40 0.32 34 9.2 10.8 8.8 5.7 0.6 Sunlight REIT+ Jun 2.21 n.a. NR 0.14 0.24 0.25 36 11.6 10.7 11.3 3.2 0.7 Property Developers Cheung Kong** Dec 123.20 131.2 Buy 11.95 4.97 7.67 -20 10.3 24.8 16.1 98.1 1.3 Hang Lung Properties Jun 31.00 32 Buy 0.51 1.21 1.57 75 60.5 25.6 19.7 14.4 2.1 Henderson Land Jun 60.35 66.5 Buy 3.10 3.27 2.77 -5 19.4 18.4 21.8 53.5 1.1 Kerry Properties Dec 56.15 55.4 Buy 1.95 2.35 2.38 11 28.8 23.9 23.5 30.9 1.8 New World Dev** Jun 21.05 22.4 Buy 1.17 1.98 1.34 7 17.9 10.6 15.7 18.0 1.2 SHK Properties Jun 138.00 165.2 Buy 4.61 4.70 5.57 10 29.9 29.3 24.8 80.5 1.7 Sino Land Jun 21.20 21.5 Buy 0.87 0.67 1.24 20 24.4 31.8 17.1 11.5 1.8 Tai Cheung ** Mar 4.63 6.18 Buy 0.44 0.46 0.97 48 10.5 10.1 4.8 5.6 0.8 Property Investors Great Eagle Dec 24.70 32 Buy 1.49 1.67 2.13 20 16.6 14.8 11.6 41.5 0.6 Hongkong Land (US$) Dec 4.82 5.21 Buy 0.15 0.20 0.29 39 32.1 24.5 16.5 5.2 0.9 Hysan Development Dec 23.35 24.05 Buy 1.10 0.95 1.03 -3 21.2 24.6 22.7 30.5 0.8 Wharf Holdings Dec 41.95 43.5 Buy 2.43 1.92 1.99 -9 17.3 21.8 21.0 35.3 1.2 Swire Pacific Dec 96.10 98.3 Hold 6.76 6.16 6.39 -3 14.2 15.6 15.0 89.4 1.1 * For property developers & investors ** EPS for CK,NWD,TC include revaluation surplus on investment properties + DPUs based on consensus NR : Not Rated Prices as of 7 May 2008 Source: Company, DBS Vickers


Industry Focus

Page 23

VALUATIONS

Gearing (%) ROE (%) ROA (%) NPI / Gross Margins * (%) Price Performance (%) No of Units / Free Float

Avg Liquidity

Hong Kong 08 08 08 07 08 09 3M 6M 12M Shares*

(m) (%) (‘000) REITs Champion REIT 25 2.7 1.3 81.1 83.9 84.2 (7) (8) (12) 2,814 51.3 2,971 Fortune REIT 23 3.5 2.6 73.2 73.8 72.1 (5) (15) (14) 814 32.6 605 Prosperity REIT 34 2.7 1.6 78.8 79.4 79.7 (2) (1) (5) 1,276 78.4 3,242 GZI REIT NA NA NA 67.5 NA NA (1) (5) (4) 1,000 60.8 1,472 Link REIT NA NA NA 59.7 NA NA (1) 10 7 2,159 100.0 11,273 Regal REIT NA NA NA 98.9 NA NA (7) (20) (27) 3,116 27.4 2,946 RREEF China REIT NA NA NA 90.8 NA NA 5 (6) NA 484 74.9 1,114 Sunlight REIT NA NA NA 74.1 NA NA (7) (8) 1 1,503 69.9 3,162 Property Developers Cheung Kong 15 5.0 4.1 78.0 43.4 48.0 3 (15) 13 2,316 59.9 8,854 Hang Lung Properties Cash 8.6 6.8 56.3 62.6 66.0 10 (12) 25 4,145 48.0 10,417 Henderson Land 12 6.5 4.8 38.2 33.9 38.4 (1) (16) 9 2,147 46.6 7,033 Kerry Properties 24 7.3 4.4 26.6 30.5 23.8 8 (21) 32 1,425 46.8 3,263 New World Dev 26 11.6 5.0 8.3 21.4 23.4 2 (25) 5 3,736 63.0 14,697 SHK Properties 15 6.0 4.4 40.9 43.9 47.4 (1) (7) 43 2,564 57.5 12,111 Sino Land 30 6.3 4.0 49.2 42.2 37.0 1 (18) 18 4,857 47.0 14,367 Tai Cheung cash 8.0 7.3 46.0 52.9 61.8 (18) (33) (19) 618 53.0 575 Property investors Great Eagle 21 4.0 2.6 39.5 38.1 53.0 (1) (25) (17) 605 48.4 1,488 Hongkong Land (US$) 21 3.7 2.4 47.2 48.8 50.6 13 (2) 3 2,295 52.1 5,291 Hysan Development 8 3.0 2.3 81.8 80.9 80.9 9 5 10 1,038 58.9 3,307 Wharf Holdings 27 5.6 3.4 65.4 55.3 54.6 3 (3) 35 2,754 50.0 7,335 Swire Pacific 17 6.6 4.7 36.6 31.1 31.7 (2) (9) 7 916 85.3 4,728 * For property developers & investors


Industry Focus

Page 24

HONG KONG Distribution By Asset Type Distribution by Geography

HK-REIT Yield Spread HK-REIT Yield Trend by sector

0%

1%

2%

3%

4%

5%

6%

2006 2007

HK-reit Yield Spread

HK-REIT P/BV vs Developers and Landlords


% Chg yoy

Implied Cap Rates

(%) Prime Office 4.5-5.5 Unch 5.2-5.3 Retail (high street shops)

c4% Down 4.5

Industrial 6.5-7 Down na Hotel 5.0-6.0 Down 6.5

China8%

HK92%

Industrial2%

Others7%

Office38%

Retail38%

Hotel15%

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

2006 2007 2008HK-reit Developer Landlord

0%1%2%3%4%5%6%7%8%9%

2005 2006 2007 2008

Office Retail Hotel


Industry Focus

Page 25

Office HK-REIT Yield

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

i

Yield Retail/Mixed HK-REIT Yield Retail/Mixed HK-REIT P/BV

Yield0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

GZI

Link

Sunlight

P/BV0.0 0.5 1.0 1.5

GZI

Link

Sunlight

(x)

Hospitality HK-REIT Yield and P/BV Valuations

Regal

0.0 2.0 4.0 6.0 8.0 10.0 12.0

Yield (%)

P/BV (x)

Ownership Structure of REIT Management Company No of Shareholders in Mgmt Co* Mgmt Moves* Sector =>3 2 1 Champion X Na Prosperity X Na Sunlight X Na RREF CCT X Na GZI X Na Link X Na Regal X Na * Please refer to appendix for details


RREEF CCT

Sunlight

Prosp erty

Champion

0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8

P/BV

(x)

Sunlight

Champion

RREEF CCT

Prosperity

Office HK-REIT P/BV

Industry Focus

Page 26

Funding Monitor Companies RE

Assets Total Debt

Gross Gearing +

Gearing limit

Targeted gearing

Corporate Rating

Ave Cost of debt

FY07 Int Cover

Debt Maturity Profile (HK$b)

(HK$b) (HK$b) (%) (%) (%) (%) (X) 2008 2009 2010 2011 =>2012 Office Champion 28.3 7.8 27.5 45.0 na na 0.5 36.2 7.8 Prosperity 5.2 1.8 34.1 45.0 na na 0.8 11.6 1.8 RREEF CCT 3.8 1.4 35.6 45.0 na na 6.2 2.6 1.4 Retail/Mixed Fortune 9.72 2.4 24.1 60.0 45.0 A+ 4.6 4.2 2.4 GZI 4.7 1.3 27.3 45.0 na na 4.1 6.0 1.3 Link 42.4 12.2 28.8 45.0 na A3 3.9 4.6 2.2 5.4 - 4.6 - Sunlight 9.9 4.0 39.6 45.0 na na 2.5 2.6 4.0 Hospitality Regal 16.1 4.3 27.0 45.0 na na 2.8 4.2 4.3 Total 120.1 35.2 29.2 3.5 5.4 4.2 16.3 5.7

+ Actual as last reported by company

Acquisition Monitor (HK$m) 2002 2003 2004 2005 2006 2007 2008f 2009f Office Champion - - - - 22670 1107 * - Prosperity - - 4538 - 28 - - RREEF CCT - - - - - 3978 - - Retail/Mixed GZI - - - 4005 - - ** Link - - - 33802 - - - - Sunlight - - - - 9090 - - - - - - Hospitality - - - Regal - - - - - 14900 - - Total - - - 42345 31760 20013 * On 14 Feb 2008, Champion announced the acquisition of Langham Place for a consideration of HK12.5b, at a discount to appraised value of HK$14.5b, to be paid via consideration units, placement units, CBs and bank loans. ** In Jan 08, GZI announced the acquisition of 72.3% of Yue Xiu Neo Metropolis Plaza for HK$677.3m of which HK$203m to be paid via issue of new units @ HK$3.0 apiece and the remaining from proceeds from its proposed CB issue. Post Listing Equity Fund Raising History Stock Date Gross Amt Raised (HK$m) Method Retail/Mixed Fortune Jun-05 1986.1 318.8m new units @HK$6.23 GZI (pending) July 08 203.2 65.97m new units @ HK$3.08


Industry Focus

Page 27

HONG KONG PROPERTY MARKET OVERVIEW Office Rental rates vs Capital Values Demand, Supply & Occupancy

0

5 0

1 0 0

1 5 0

2 0 0

2 5 0

Jan-

00

Jan-

01

Jan-

02

Jan-

03

Jan-

04

Jan-

05

Jan-

06

Jan-

07

Jan-

08

O f f i c e C a p i t a l I n d e x O f f i c e R e n t a l I n d e x

J a n - 0 1 = 1 0 0

0123456789

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

F

2007

F

2008

F

2009

F

024681 01 21 41 61 8

C o m p l e t i o n ( m s f ) T a k e - u p ( m s f )

V a c a n c y ( % )

m s f %

Residential Capital Value Index Demand, Supply & Occupancy

2 53 54 55 56 57 58 59 5

1 0 51 1 5

Jan

94

Jan

95

Jan

96

Jan

97

Jan

98

Jan

99

Jan

00

Jan

01

Jan

02

Jan

03

Jan

04

Jan

05

Jan

06

Jan

07

Jan

08

0

5 , 0 0 0

1 0 , 0 0 0

1 5 , 0 0 0

2 0 , 0 0 0

2 5 , 0 0 0

3 0 , 0 0 0

3 5 , 0 0 0

4 0 , 0 0 0

1996

1998

2000

2002

2004

2006

2008

E

C o m p l e t i o n ( m s f ) N o o f p r i m a r y u n i t s s o l d ( u n i t ) Retail Rental Rate Index Demand, Supply & Occupancy

6 0

8 0

1 0 0

1 2 0

1 4 0

1 6 0

1 8 0

2 0 0

Jan-

02

Jul-0

2

Jan-

03

Jul-0

3

Jan-

04

Jul-0

4

Jan-

05

Jul-0

5

Jan-

06

Jul-0

6

Jan-

07

Jul-0

7

Jan-

08

H i g h S t r e e t S h o p sP r i m e A r e a R e t a i l C e n t r e sD e c e n t r a l i s e d R e t a i l C e n t r e

( 1 . 5 )( 1 . 0 )( 0 . 5 )

0 . 00 . 51 . 01 . 52 . 02 . 53 . 03 . 5

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

F

2007

F

2008

F

2009

F

( 6 )

( 2 )

2

5

9

1 2

C o m p l e t i o n ( m s f ) ) T a k e - u p ( m s f )

V a c a n c y ( % )

m s f %

5 Star Hotel Capital Values (US$/room)

300000

400000

500000

600000

700000

800000

1999 2000 2001 2002 2003 2004 2005 2006 2007

Source: HVS International Research


Industry Focus

Page 28

THAILAND REITS PERFORMANCE TRACKER The Thai REIT market is made up of close-ended property funds, which are publicly listed on the SET. There are currently 18 listed property funds for public offering (PFPOs) with a market cap of Bt54b or equivalent to a 0.3% and 2.1% of the global and Far East REIT markets respectively. Within the Thai PFPO sphere, retail PFs have a slightly larger share of 26% owing to the dominance of CPN Retail Growth Fund. The commercial, residential and airport PFs are fairly distributed at 17-19% each. There were two close-ended funds listed since beginning of this year, namely Property Perfect Fund (PFFUND), a residential property fund and Quality Hospitality Leasehold Property Fund (QHOP), a hotel-related fund. Thailand Market Summary The Thai market has outperformed regional peers YTD, with the SET Index easing 1.1% vs -8.0% return for the region. The SET Property Index rose 6.5% y-o-y due to strong showing by property companies, REITs, and contractors, thanks to the rebounding consumer and business confidence and positive government policy changes. Key index movers were Preuksa RE, Quality Houses, Property Perfect, Land & Houses and Lalin Property, which rose 16-44%. The Thai REIT sector also out-performed the SET Index with average 5.7% return YTD, thanks to the Bank of Thailand’s decision to lift the unremunerated reserve requirement (URR) on short-term capital inflows, effective 3 March 2008. We see this news as positive for the Thai REIT sector as foreign investors can now invest in Thai REITs without being subject to the 30% URR or hedging requirement. Leading the sector was CPN Retail Growth Property Fund (CPNRF), the largest REIT in Thailand, which saw its unit price increase 16% YTD. Valuations Thai PFPO yields have narrowed since the end of 2007 to an average of 7.7% currently owing to the run-up in equity values. However, yield spreads are still at a healthy 291bps following a dip in long term bond yields in 1Q08. Thai REITs are also trading at an average 8% discount to their NAVs.

Key issues The property sector including T-REITs should continue to outperform over the next 6 months. We maintain our Overweight rating on Thai properties in view of strong FY08 earnings growth of 38% (vs 13% for the SET). This strong growth (although will not be seen in 1Q08 as buyers delayed their title transfer awaiting the tax-cut package to take effect on 29 Mar 2008) should be supported by (i) rebounding consumer confidence, and (ii) tax savings from the tax-cut stimulus measure. Property-related taxes for property transactions were cut for 1 year from 29 Mar 2008. Currently, property developers pay 3.3% specific business tax on real estate sales, while the 2% transfer fee is normally shared equally between the home buyers and developers. The proposed tax cuts will reduce the corresponding taxes to a total of only 0.11% vs 4.3% (developers share) previously. Homebuyers will also see their share of transfer fees drop from 1.0% to 0.005% and mortgage registration fees drop from 1.0% to 0.01%. Property Tax Cuts Tax Previous New

From 29/3/08-28/03/09Specific business tax 3.3% 0.10% Transfer fees 2.0% 0.01% Mortgage registration fees 1.0% 0.01%

Source: DBS Vickers

T-REITs should also benefit from the rise in demand and capital values. In addition, proposed changes to guidelines for T-REITs including a relaxation in gearing levels, could provide a catalyst for the sector. Our top REIT picks remain CPNRF and SPF, both of which are offering very generous dividend yields of 8.0% and 9.9% respectively. CPNRF should benefit from the planned acquisition of addition assets (potentially Central Pinklao, Central Chiengmai, and Central Festival Phuket) in 2H08, while SPF should benefit from the additional flights from Thai Airways International and improved tourism in Samui this year.

SET vs REITs Index Property vs REITs Index


80

85

90

95

100

105

110

115

January-08 February-08 March-08 April-08 May-08

Reits SET

80

85

90

95

100

105

110

115

January-08 February-08 March-08 April-08 May-08

SET Property


Industry Focus

Page 29


Share

Price Target Price Recmd DPU / EPS * (Bt) CAGR (%) Yield (%) / PE (x)*

NAV PS BV

Thailand FYE (Bt) (Bt) 07 08 09 07-09 07 08 09 (Bt) (Bt) REITs CPN Retail Growth Property Fund Dec 10.50 12.00 Buy 0.82 0.84 0.86 2 7.8 8.0 8.2 10.3 1.0 Samui Airport Property Fund Dec 9.05 11.83 Buy 0.92 0.90 0.94 1 10.2 9.9 10.4 11.4 0.8 Developers Industrial Amata Corporation Dec 17.60 21.26 Buy 0.99 1.42 1.45 21 17.8 12.4 12.2 4.1 4.3 Hemaraj Land Dec 1.24 1.68 Buy 0.12 0.13 0.10 -9 10.0 9.6 12.1 0.8 1.6 Rojana Industrial Park Dec 15.60 20.39 Buy 1.21 1.24 1.46 10 12.9 12.6 10.7 5.9 2.6 Residential Asian Property Dec 7.40 8.71 Buy 0.39 0.54 0.60 25 19.2 13.6 12.3 2.4 3.1 Lalin Property Dec 3.80 4.32 Buy 0.15 0.39 0.43 71 26.1 9.7 8.9 4.0 0.9 Land & Houses Dec 9.00 9.9 Hold 0.36 0.42 0.45 11 24.7 21.4 20.1 2.9 3.1 LPN Development Dec 7.60 8.3 Buy 0.63 0.83 0.80 13 12.1 9.2 9.4 2.6 2.9 M.K. Real Estate Dec 2.28 2.94 Buy 0.38 0.49 0.49 13 6.0 4.7 4.6 5.4 0.4 Noble Development Dec 4.06 5.06 Buy 0.54 0.72 0.72 16 7.5 5.6 5.6 7.1 0.6 Property Perfect Dec 4.96 6.85 Buy 0.52 0.93 0.92 33 9.5 5.3 5.4 7.7 0.6 Prinsiri Dec 2.64 3.76 Buy 0.08 0.34 0.55 165 34.0 7.8 4.8 2.2 1.2 Preuksa Real Estate Dec 12.10 14.21 Buy 0.58 0.95 1.07 36 20.8 12.8 11.3 3.8 3.2 Quality Houses Dec 2.68 3.00 Buy 0.15 0.19 0.21 19 18.4 13.9 13.0 1.2 2.2 SC Asset Corp Dec 13.20 14.76 Sell 1.97 1.90 1.78 -5 6.7 7.0 7.4 16.0 0.8 Sansiri Dec 3.82 4.31 Buy 0.48 0.66 0.76 26 8.0 5.8 5.0 5.7 0.7 Supalai Dec 3.74 5.21 Buy 0.53 0.74 0.83 25 7.0 5.0 4.5 3.0 1.3 Landlord Central Pattana Dec 27.50 32.66 Buy 0.82 0.82 0.90 5 33.6 33.5 30.5 6.0 4.6 * For property developers & landlords Prices as of 7 May 2008 Sources: Company, Bloomberg & DBS Vickers


Industry Focus

Page 30

VALUATIONS

Gearing (%) ROE (%) ROA (%) NPI / Gross Margins * (%) Price Performance (%_ No of Units/ Free Float

Avg Liquidity

Thailand 08 08 08 07 08 09 3M 6M 12M Shares*

(m) (%) (‘000) REITs CPN Retail Growth Property Fund Cash 8.3 8.0 88.4 91.1 91.1 9 9 5 1,092 59.3 858 Samui Airport Property Fund Cash 7.3 7.2 n.a. n.a. n.a. 5 12 (9) 950 59.8 1,244 Developers Industrial Amata Corporation 43 27.1 15.1 49.1 49.1 49.2 9 7 42 1,067 33.1 1,665 Hemaraj Land 74 16.8 8.4 41.6 40.6 40.3 3 (14) 25 9,376 78.0 11,655 Rojana Industrial Park 181 17.4 5.9 27.9 31.2 30.3 (1) (9) 31 833 40.1 612 Residential Asian Property 71 19.6 10.8 32.6 31.9 32.1 25 9 64 2,331 64.2 9,207 Lalin Property 26 9.3 7.3 39.2 39.5 39.5 28 3 (14) 825 26.4 455 Land & Houses 33 14.6 7.4 30.5 30.0 30.0 18 22 26 9,920 57.0 24,192 LPN Development 28 29.7 16.2 34.7 30.0 30.6 21 (7) 22 1,476 45.9 9,680 M.K. Real Estate 23 8.8 6.0 37.5 36.5 36.5 1 (7) (7) 867 63.0 819 Noble Development 89 10.0 4.8 37.1 35.6 35.6 3 (12) (19) 456 58.4 311 Property Perfect 71 12.2 6.2 29.9 29.5 29.5 38 19 51 788 48.3 2,221 Prinsiri 54 15.0 6.9 23.0 25.7 30.2 (10) (14) (6) 1,005 29.7 639 Preuksa Real Estate 14 21.2 15.2 34.9 35.0 33.0 52 51 118 2,186 21.8 2,436 Quality Houses 97 15.9 6.6 28.9 30.6 30.5 23 47 109 7,673 40.6 38,825 SC Asset Corp 30 11.4 6.9 36.9 36.2 36.1 9 41 55 321 37.1 6,249 Sansiri 91 11.3 4.4 30.3 28.5 30.4 8 10 29 1,474 65.6 4,719 Supalai 75 24.6 13.4 40.2 37.5 38.3 8 (1) 8 1,635 74.4 5,749 Landlord Central Pattana 108 13.2 4.5 41.8 42.1 42.2 13 4 7 2,179 35.5 1,973 *For property developers & landlords Sources: Company, Bloomberg & DBS Vickers


Industry Focus

Page 31

THAILAND Distribution By Asset Type and Value Distribution by Geography

T-REIT Yield Spread Office and Retail T-REIT Yield Trend

Residential and Serviced Apartment T-REIT Yield Industrial, Airport and Lifestyle T-REIT Yield Trend

T-REIT P/BV vs Developers


Chg yoy Implied Cap Rates (%)

Prime Office 7-8 Unch 8.3 Retail 10 Up 9.5 Industrial 8-9 Unch 9-10 Hotel na Down - Residential 6 Down 7.5 Svcd Apartment 8 Down 8-9 Cinema 9 Unch 8.0

0.0

1.0

2.0

3.0

4.0

5.0

2004 2005 2006 2007 2008T-reit Developer Landlord

Thailand

-2%

0%

2%

4%

6%

8%

10%

D-03 J-04 D-04 J-05 D-05 J-06 D-06 J-07 D-07

T-reit Yield Spread

3%

4%

5%

6%

7%

8%

9%

10%

D-03 J-04 D-04 J-05 D-05 J-06 D-06 J-07 D-07

Retail Office

4%

5%

6%

7%

8%

D-03 J-04 D-04 J-05 D-05 J-06 D-06 J-07 D-07

Svc Apt Residential6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

D-03 J-04 D-04 J-05 D-05 J-06 D-06 J-07 D-07

Airport Lifestyle Industrial

Airport17%

Lifestyle4%

Commercial18%

Industrial10%

Svc Apt6%

Residential19%

Retail26%


Industry Focus

Page 32

Commercial T-REIT Yield Commercial T-REIT P/BV

0% 2% 4% 6% 8%

BKKCP

JCP

MIPF

QHPF

Yield

0.0 0.2 0.4 0.6 0.8 1.0 1.2

BKKCP

JCP

MIPF

QHPF

P/BV

(x)

Industrial T-REIT Yield Industrial T-REIT P/BV Valuations

0.0% 2.0% 4.0% 6.0% 8.0%

TIF1

TFUND

Yield

0.0 0.2 0.4 0.6 0.8 1.0

TIF1

TFUND

P/BV

Residential T-REIT Yield Residential T-REIT P/BV

0% 2% 4% 6% 8%

SIRIPF

MNIT

Yield

0.0 0.2 0.4 0.6 0.8

SIRIPF

MNIT

P/BV Svcd Apartment T-REIT Yield Svcd Apartment T-REIT P/BV

0.0% 2.0% 4.0% 6.0% 8.0%

GOLDPF

UOBAPF

URBNPF

Yield 0.0 0.2 0.4 0.6 0.8 1.0

GOLDPF

UOBAPF

URBNPF

P/BV Airport and Lifestyle T-REIT Yield Airport and Lifestyle P/BV

Yield

0% 2% 4% 6% 8% 10% 12%

SPF

MJLF

P/BV

0.0 0.2 0.4 0.6 0.8 1.0

SPF

MJLF


Industry Focus

Page 33

Acquisition Monitor (Btm) 2002 2003 2004 2005 2006 2007 2008f 2009f Airport SPF - - - - 9301.4 - - - Svc Apt GoldPF - - - - - 2074.7 - - UOBAPF - 818 - - - - - - URBNPF - - - - - 711 - - Retail FuturePF - - - - 4778.8 - - - CPNRF - - - 10613 - - - - Residential SiriPF - - - 850 - - - - MNIT - - - 700 67 - - - Industrial TIF1 491.3 - 395 - - Tfund 1730 2050 1970.25 Commercial BKKCP - 956 - - - - - - JCP - - - - 610.1 - - - MIPF - - 1880 - - - - - QHPF - - - - 7214.3 - - - Miscellanous MJLF (Entertainment) - - - - - 2301 - - TUPF (dormitory) - - - - 829.6 - - - QHOP (Hotel) - - - - - - 1849.6 - Total - 1774 1880 14384.3 24851.2 7452.0 1849.6

Post Listing Equity Fund Raising History Stock Date Gross Amt Raised (Btm) Method Industrial MNIT Oct 2006 670 Issue of new units via rights and public offering @ Bht10 each

TICON 7 April 2006 2050.0 Issue of new units via rights and private placement @ Bht10.65 each

Oct 2007 1970.25 Issue of new units via rights and public offering TIF1 May 2007 395 Issue of new units via rights and private placement


Industry Focus

Page 34

THAILAND PROPERTY MARKET OVERVIEW Office Rental rates vs Capital Values Demand, Supply & Occupancy

Retail Rental Rates vs Capital Values Demand, Supply & Occupancy

Cumulative Supply of Serviced Industrial Land Plots (rai) Cumulative Supply of Purpose Built Factories

70,000

75,000

80,000

85,000

90,000

95,000

100,000

2000 2001 2002 2003 2004 2005 2006 2007

Rai

0%

1%

2%

3%

4%

5%

6%

Cumulative Stock

% y-o-y (RHS)

0

100

200

300

400

500

600

700

2004 2005 2006 1Q07 2Q07 3Q07 4Q070%

5%

10%

15%

20%

25%

30%

35%Cumulative Stock

% y-o-y (RHS)

5 Star Hotel Capital values New Hotel Room Supply

Annual Supply, Demand of Condominiums in Bangkok

0

1000

2000

3000

4000

5000

6000

7000

2000 2001 2002 2003 2004 2005 2006 20070%

5%

10%

15%

20%

25%

30%

35%

Annual Supply (units) Annual Demand (units) Vacancy rate (RHS)

0

0.1

0.2

0.3

0.4

0.5

0.6

2000 2001 2002 2003 2004 2005 2006 2007 2008F0%

5%

10%

15%

20%

25%

30%

35%

Annual Supply (msm) Annual Demand (msm) Vacancy rate (RHS)

0.0

0.1

0.2

0.3

0.4

2000 2001 2002 2003 2004 2005 2006 20070%

2%

4%

6%

8%

10%

12%

14%

16%

Annual Supply (msm) Annual Demand (msm) Vacancy rate (RHS)

0200400600800

1,0001,2001,400

2007

Luxu

ry

2009

2007

First

-cla

ss

2009

2007

Mid

-cla

ss

2009

2007

Econ

omy

2009

Bangkok OthersRooms

1200

1300

1400

1500

1600

1700

1800

1900

2000

J-00 J-01 J-02 J-03 J-04 J-05 J-06 J-07 J-08100105

110115120125

130135140

145150

Gross Rentals (THB/sm/mth) Capital Value (THB/sm)

150000

170000

190000

210000

230000

1999 2000 2001 2002 2003 2004 2005 2006 2007

Bangkok Phuket

0

100

200

300

400

500

600

700

J-00 J-01 J-02 J-03 J-04 J-05 J-06 J-07 J-080

10000

20000

30000

40000

50000

60000

70000

80000

90000

Gross Rents (THB/sm/mth) Capital Values (THB/sm)


Industry Focus

Page 35

MALAYSIA REITS PERFORMANCE TRACKER The M-REIT market has grown from the initial listing of Axis REIT in Aug 2005 to 11 REITs with a total market cap of RM4.6b, accounting for 0.3% of the global and close to 2% of the Far East segment. In terms of asset types, there is a diverse range from office to plantations. Office and retail assets account for 69% of asset value while industrial, healthcare and plantation players account for the remaining 31%. There has been no new REIT listing YTD 2008. Share Price Performance

decline of 12%. Prices of property stocks in our universe

average 50% to RNAV and 8.4x CY09 EPS. Despite the weak property sentiment, we have yet to see the big correction in physical property prices. Take-up rate for recent launches in prime areas such as Damansara Heights, KLCC, Mont’ Kiara, etc were still good and land prices within prime areas such as KLCC are still on the uptrend. Nevertheless, we expect delay in launches for high-end segment due to weak property sentiment.

decline of 4% against KLCI’s 12% due to its defensive earnings quality and attractive yields. QCT’s announcement of a proposed RM94.5m acquisition of 3 properties caused share price to spike to a recent high of RM1.47 before dipping again.

Valuations The M-REIT sector is trading at about 7-7.5% FY08 yield while yield spreads have widened to about 320-360bps over the 10yr MGS rate, thanks to both DPU growth as well as a lowering in the long term rates. Plantation REIT, Al-Hadhrah Boustead REIT put on a strong showing, with REIT yields narrowing from 11% to 8% while office and industrial REITs are yielding 5-6%. Key issues The key driver to the M-REIT sector over the next few months would remain organic growth. Favourable demand-supply dynamics for commercial space in Malaysia, upside potential from rental revisions, ongoing asset improvement plans and yield and earnings accretive acquisitions of 6-6.5% vs cost of debt of 4-5%, should continue to be the major uplift to DPU. Financing concerns are low as the bulk of the existing loan profiles are maturing from 2010 and average gearing for M-REITs is at a manageable 22% against the maximum limit of 50%. In terms of our preferred buys, the clear winners will be those with attractive underlying assets, good asset pipeline and proven acquisition track record such as Axis (Buy). Our NEUTRAL stance for M-REITs is maintained.

KLCI vs REITs Index Property vs REITs Index


70

75

80

85

90

95

100

105

110

Jan-08 Feb-08 Mar-08 Apr-08 May-08KLCI Reits

70

75

80

85

90

95

100

105

110


Reits Property

The KLCI Property index declined 22% YTD, versus KLCI’s

were down between 14- 43% YTD and now trading at an

During this period, MREITs outperformed KLCI with YTD


Industry Focus

Page 36


Share

Price Target Price Recmd DPU / EPS *(sen) CAGR (%) Yield (%) / PE (x)*

NAV PS BV

Malaysia FYE (RM) (RM) 07 08 09 07-09 07 08 09 (sen) (x) REITs Axis REIT Dec 1.77 2.60 Buy 11.0 13.5 13.8 12 6.2 7.5 7.7 148 1.2 Not Under Coverage # Starhill REIT June 0.88 NR NR 6.7 6.8 7.1 3 7.6 7.7 8.1 98 0.9 Al-Hadharah Boustead REIT Dec 1.40 NR NR 10.9 11.1 12.0 5 7.8 7.9 8.6 103 1.4 Hektar REIT Dec 1.39 NR NR 10.7 10.2 11.6 4 7.7 7.3 8.3 197 0.7 Amanahraya REIT Mar 0.93 NR NR 2.0 7.6 9.0 115 2.1 8.2 9.7 95 1.0 AMFirst REIT Dec 0.97 NR NR 3.6 7.0 8.0 49 3.7 7.3 8.3 104 0.9 Tower REIT Dec 1.23 NR NR 8.5 9.8 10.0 8 6.9 8.0 8.1 147 0.8 Al-Aqar KPJ REIT Dec 1.29 NR NR 8.5 8.9 9.9 8 6.6 6.9 7.7 106 1.2 UOA REIT Dec 0.95 NR NR 5.4 6.4 7.0 13 5.7 6.7 7.4 140 0.7 Atrium REIT Dec 0.91 NR NR 6.5 8.5 9.0 18 7.2 9.4 9.9 99 0.9 Property Developers SP Setia Oct 4.16 5.10 Buy 25.8 26.9 31.6 11 16.1 15.5 13.1 198 2.1 KLCC Property Mar 3.04 4.40 Buy 21.7 24.8 26.5 10 NM 12.3 11.5 450 0.7 Sunway City Jun 2.78 5.50 Buy 31.3 35.8 48.0 24 8.9 7.8 5.8 370 0.8 Eastern & Oriental Bhd Mar 1.70 3.80 Buy 17.0 14.9 18.7 5 10.0 11.4 9.1 134 1.3 Sunrise Berhad Jun 2.48 4.00 Buy 25.3 26.5 44.6 33 9.8 9.4 5.6 163 1.5 YTL Land Jun 1.22 2.70 Buy 4.6 8.7 25.2 134 26.6 14.0 4.8 159 0.8 * For property developers # DPUs based on consensus. Book NAV Per Share, Gearing, ROA and ROE based on latest reported by company NR: Not Rated Prices as at 7 May 2008

Sources: Company, Bloomberg & DBS Vickers


Industry Focus

Page 37

VALUATIONS

Gearing (%) ROE(%) ROA (%) NPI / Gross Margins *(%) Price Performance (%) No of Units / Free Float Avg

Malaysia 08 08 08 07 08 09 3M 6M 12M Shares*

(m) (%) Liquidity

(‘000) REITs Axis REIT 2 9.5 8.6 82.6 78.4 78.4 (2) (7) (12) 256 40.0 128 Not Under Coverage # Starhill REIT 13 6.3 5.3 80 NA NA (5) (6) (15) 1,179 33.3 352 Al-Hadharah Boustead REIT 0 10.5 9.7 89 NA NA (7) 9 10 472 61.7 296 Hektar REIT 31 3.2 2.0 NA NA NA (4) (7) 19 320 28.0 11 Amanahraya REIT 13 1.9 1.6 NA NA NA 7 2 0 429 59.9 213 AMFirst REIT 27 7.3 5.1 71 NA NA (1) (2) 2 429 54.6 164 Tower REIT 15 5.7 4.2 70 NA NA (4) (9) 5 246 31.3 22 Al-Aqar KPJ REIT 24 7.2 5.3 72 NA NA (1) (3) 30 281 67.5 241 UOA REIT 32 2.6 1.3 92 NA NA (3) 2 9 432 80.4 144 Atrium REIT 25 6.7 4.6 87 NA NA (5) (12) (9) 122 59.3 70 Property Developers SP Setia 12 14.1 9.1 32.7 32.6 30.3 (20) (16) (28) 1,017 82.4 3,493 KLCC Property 25 5.3 2.4 87.0 88.8 89.0 (12) (17) (22) 934 68.3 1,171 Sunway City 33 11.8 3.5 53.5 51.8 53.2 (26) (49) (38) 470 40.0 504 Eastern & Oriental Bhd 46 30.3 6.4 20.6 46.0 47.8 (32) (31) (45) 419 75.0 221 Sunrise Berhad 13 23.7 11.9 36.3 30.2 38.6 (10) (24) (35) 450 63.5 1,046 YTL Land 9 5.6 3.2 20.1 35.1 32.1 (6) (19) (10) 796 38.9 331 *For property developers #Book NAV Per Share, Gearing, ROA and ROE based on latest reported by company

Sources: Company, Bloomberg & DBS Vickers


Industry Focus

Page 38

MALAYSIA Distribution By Asset Type and Value Distribution by Geography

M-REIT Yield Spread Retail and Office M-REIT Yield Trend

Industrial M-REIT Yield Trend Healthcare and Plantation M-REIT Yield Trend

M-REIT P/BV vs Developers and Landlords


% Chg yoy

Implied Cap Rates (%)

Prime Office 4.25-4.5 Unch 6.1 Retail 5.0-5.5 Unch 7.5 Industrial 6.5-7.5 Up 4.5-13 Hotel 5-6 Down na Healthcare 4.7 Unch 4.8 Plantation na na 15.9

Malaysia

Retail31%

Plantation8%

Industrial12%

Healthcare11%

Commercial38%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

2006 2007 2008

M-reit Yield Spread

2%

4%

6%

8%

10%

2006 2007 2008

Retail Office

5.0%

5.5%

6.0%

6.5%

7.0%

7.5%

8.0%

2006 2007 2008

4%5%6%7%8%9%

10%11%12%13%

2007 2008Healthcare Plantation

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2006 2007 2008

M-reit Developer Landlord

(x)


Industry Focus

Page 39

Office M-REIT Yield Office M-REIT P/BV

0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

TRET

UOAR

AARET

Yield

0.0 0.2 0.4 0.6 0.8 1.0 1.2

TRET

UOAR

AARET

P/BV

(x)

Industrial M-REIT Yield Industrial M-REIT P/BV

0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

AXRB

ATRM

Yield

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4

AXRB

ATRM

P/BV

(x)

Retail M-REIT Yield Retail M-REIT P/BV

0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

HEKT

STRH

Yield

0.0 0.2 0.4 0.6 0.8 1.0 1.2

HEKT

STRH

P/BV

(x)

Healthcare and Plantation M-REIT Yield Healthcare and Plantation M-REIT P/BV

Ownership Structure of REIT Management Company No of shareholders in Mgmt Co Mgmt Moves* Company =>3 2 1 Tower X na UOA X na AmanahRaya X na Hektar X na Starhill X na Axis X na Atrium X na Al Aqar X na AlHadharah Boustead X na *Please refer to appendix for details

Yield6.0% 6.5% 7.0% 7.5% 8.0%

AQAR

BIRT

P/BV1.1 1.2 1.2 1.3 1.3 1.4 1.4 1.5

AQAR

BIRT

(x)


Industry Focus

Page 40

Funding Monitor

Companies RE

Assets Total Debt

Gross Gearing+

Gearing limit

Targeted gearing

Corporate Rating

Ave Cost of

debt

FY07 Int

Cover Debt Maturity Profile (RMb)

(RMb) (RMb) (%) (%) (%) (%) (X) 2008 2009 2010 2011 =>2012 Al Aqar* 481.0 133.3 27.7 50 na na na 20.3 7.4 7.4 7.4 7.4 138.3 Axis 570.4 209.8 36.8 50 40.0# na 6.0 4.2 209.8 - - - - AlHadharah Boustead

477.3 0.0 0.0 50 na na nil nil - - - - -

Hektar 559.4 184.0 32.9 50 na na 10.7 - - - 184.0 - Starhill 1275.0 180.0 14.1 50 na na 4.8 9.4 - - 180.0 - -

550.0 135.5 24.6 50 na na 4.19-4.32

35.3 30.0 105.5 - - -

UOA 425.3 64.3 15.1 50 na na 3.9-4.35 2.4 64.3 - - - -

AmanahRaya 645.5 253.0 39.2 50 na na 4.5-5.25

10.5 - - - 253.0 -

Atrium 154.8 43.7 29.2 50 na na 4.04-4.28

7.0 - - - - 43.7

Total 5138.7 1203.6 23.4 50 311.5 112.9 187.4 444.4 182.0 * Al Aqar has secured a syndicated Bai’ Bithamin Ajil financing facility arrangement that enables them to pay in 59 equal monthly installments plus RM134.6m beginning July 2006. Total assets have not included acquisition of 5 hospitals valued at RM170m in Mar 08 + Actual as last reported by company # Estimate

Acquisition Monitor (RMm) 2002 2003 2004 2005 2006 2007 2008f 2009f Commercial Tower - - - - 390.0 - - - UOA REIT - - - - 345.5 - - - Amanah Raya - - - - - 645.5 - - Retail/Mixed Hektar - - - - - 515.4 - - Starhill - - - 1150.0 - - - - Industrial Axis - - - 332.0 - 64.0 - - Atrium 154.8 - - Healthcare and others Al Aqar KPJ - - - - 481.0 170.0 - - Al Hadharah Boustead

- - - - - 477.3 - -

Total - - - 1482.0 1216.5 2027.0 -

Post Listing Equity Fund Raising History Stock Date Gross Amt Raised (RMm) Method

Commercial Amanahraya Dec 07 93.0 Placement of 98.9m new units @ RM0.94

Industrial Axis Jan 08 90.0 Placement of 50m new units @ RM1.80 each

Healthcare and others Al Aqar KPJ Mar 08 81.5 Issue of 85.75m new units @ RM0.95


Industry Focus

Page 41

Office Rental rates vs Capital Values Demand, Supply & Occupancy

Residential Capital Values Demand, Supply & Occupancy

80

90

100

110

120

130

99 00 01 02 03 04 05 06 07

5 Star Hotel Capital Values (US$/room) Demand, Supply & Occupancy

Retail Demand, Supply & Occupancy

-4

-3

-2

-1

0

1

2

3

4

5

92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 070%

5%

10%

15%

20%

25%

Annual Supply (msf) Annual Demand (msf) Vacancy Rate (RHS)

-30000

-20000

-10000

0

10000

20000

30000

40000

50000

01 02 03 04 05 06 07Annual Supply (units) Annual Demand (units)

-1000

-500

0

500

1000

1500

2000

2500

3000

2000 2001 2002 2003 2004 2005 2006 20070%

10%

20%

30%

40%

50%

60%

Annual Supply (rooms) Annual Demand (rooms) Vacancy rate (RHS)60000

80000

100000

120000

140000

160000

180000

1999 2000 2001 2002 2003 2004 2005 2006 2007

0

1

2

3

4

5

6

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20070

100

200

300

400

500

600

700

Prime office value (RMpsf) Ave rental (prime) RMpsf/mthAve rental (overall) RMpsf /mth

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 070%

10%

20%

30%

40%

50%

60%


MALAYSIA PROPERTY MARKET OVERVIEW


Industry Focus

Page 42



Industry Focus

Page 43

Singapore


Corporate Profile

Allco Commercial REIT

Page 44


Bloomberg: ALLC SP | Reuters: ALCR.SI

BUY S$0.825 FSSTI: 3,228.95

Pricce Target : 12 Month S$1.23 Description

Manager & Strategy Allco’s manager is Allco Singapore Pte Ltd, an indirect wholly owned subsidiary of its sponsor Allco Finance Group (AFG). The manager aims to optimize yields for unitholders through, I) opportunistic accretive acquisitions, ii) active asset management and efficient capital management.


P/BV

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8

Mar-06 Jul-06 Nov-06 Mar-07 Jul-07 Nov-07 Mar-08 Jul-08 Nov-08

Ceiling 4%

Mid 6 5%

Floor 10%

ALLC

S$

0.0

0.2

0.4

0.6

0.8

1.0

1.2

M ar-06 Jun-06 Sep-06 Dec-06 M ar-07 Jun-07 Sep-07 Dec-07 M ar-08

(x)


0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

M ar-06 Sep-06 M ar-07 Sep-07 M ar-08

ALLC FSSTI Index FSTRE Real Estate

(x)

0

2

4

6

8

10

12

M ar-06 Jun-06 Sep-06 Dec-06 M ar-07 Jun-07 Sep-07 Dec-07

ALLC M AS 10 year Govt Bond

(%)


Allco is a geographically diversified REIT with exposure to the office and retail markets in Singapore, Australia and Japan. Recent negative newsflow on its corporate rating downgrade to Ba2 and re-financing concerns dragged on stock performance. However, we believe this has largely been factored into share price. The group had extended the refinancing of $550m loan to Dec 09 and an ongoing strategic review of its Australian assets could unlock cash to further pare down gearing of 46%. We believe a catalyst for a re-rating of the stock could hinge on outcome of its strategic review as well as clarity on the restructuring exercise at its parent AFG and API. In the meantime, AEI at Keypoint and positive rental reversion should drive DPU expansion. Maintain BUY with a target price of S$1.23 based on 20% discount to its DCF valuation.

Allco REIT (Allco) invests primarily in income producing commercial and office assets in Singapore, Australia and Japan. As at 31st Dec 07, its portfolio consists of 9 assets and a stake in AWPF private property fund, worth a total of S$1.96bn.

Corporate Profile

Allco Commercial REIT

Page 45


Portfolio Details:

DPU Performance ( since listing) Portfolio Size (since Listing)

Lease Expiry Profile Debt Maturity Profile


Gross revenue 35 75 100 102 Net Prop Inc Margins (%) 82.4 81.6 82.0 81.8Property expenses (6) (14) (18) (19) Net Income Margins (%) (28.8) 22.7 31.8 32.6Net Property Income 29 61 82 83 Dist to revenue (%) 65.0 63.2 47.7 48.3Other Operating expenses (3) (13) (11) (12) Managers & Trustee’s fees 7.6 16.8 11.5 11.3Other Non Opg (Exp)/Inc 0 0 0 0 to sales (%) Net Interest (Exp)/Inc (7) (16) (35) (35) ROAE (%) (1.7) 2.1 3.0 3.2Exceptional Gain/(Loss) 3 15 0 0 ROA (%) (1.1) 1.2 1.6 1.7Net Income 22 48 35 37 ROCE (%) (1.4) 1.2 3.4 3.5Tax (32) (31) (4) (4) Int. Cover (x) 3.6 3.1 2.0 2.1Minority Interest 0 0 0 0 Current Ratio (x) 3.5 0.1 0.1 0.1Preference Dividend 0 0 0 0 Quick ratio (x) 3.5 0.1 0.1 0.1Net Income After Tax (10) 17 32 33 Aggregate Leverage (%) 36.8 48.1 46.5 47.1Total Return 106 289 32 33 Operating CFPS (S cts) 5.1 7.4 4.4 4.6Non-tax deductible Items (83) 30 16 16 Free CFPS (S cts) (138.5) (121.2) 4.4 4.6Net Inc available for Dist. 23 48 47 49 NAV per shr (S cts) 117.1 149.0 143.4 138.1 DPU (S cts) 4.6 6.7 6.6 6.7 Distribution Yield (%) 5.6 8.2 8.0 8.1 Revenue Gth (%) N/A 115.7 32.2 2.6

N Property Inc Gth (%) N/A 113.6 32.8 2.4 Net Inc Gth (%) N/A NM 85.2 5.2


LH / FHChina Square Central LH 2096 368,238 567.5 1,541 55 Market Street LH 2825 72,109 148 2,052 Key Point LH 2075 311,892 374.4 1,200 Cosmo Plaza Shoyu-kun 224,470 84.7 377 Galleria Otemae Shoyu-kun* 108,735 87 800 Azabu Aco Shoyu-kun* 15,944 26 1,631 Ebara Techno-Serve Shoyu-kun* 52,050 39.6 761 Central Park FH 356,865 411 1,152 Centrelink HQ LH 2,101 215,278 137.9 641 AWPF Units - - 75.1 -

1951.2

NLA sqfValuation

S$'m* S$ / sqf

0%

5%

10%

15%

20%

25%

30%

35%

2008 2009 2010 2011 2012 20130

100

200

300

400

500

600

2008 2009 2010 > 2011

S$m

663 668892

12190140

182

121

0

73

141

612

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Jun-06 Dec'06 30-Jun-07 31-Dec-07

Base Portfo lio Revaluation Acquisition

S$m

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

06A 07A 08F 09F

S cts

0

20

40

60

80

100

120

06A 07A 08F 09F79%

80%

81%

82%

83%

84%

85%

86%

Gross Revenues LHS NPI Margins RHS

S$m

Corporate Profile

Ascendas India Trust

Page 46


Bloomberg: AIT SP I Reuters: AINT.SI

BUY S$1.26 FSSTI: 3,228.95

Price Target: 12 Month S$1.84 Description Ascendas India Trust (ART) invests in high-growth business space located in India. Its portfolio consists of 4 IT parks, namely ITPB , ITPC, Cyberpearl and The V with a total SBA of 4.7m. As of 31 March’08, its portfolio has an appraised value of S$1bn. Manager & Strategy A-iTrust is managed by Ascendas Property Fund Trustee Pte. Ltd., a wholly-owned subsidiary of Ascendas Land. The trust aims to acquire, own and develop land or uncompleted developments to be used for business space with the objective of holding the properties upon completion. It also has 2 ROFR with Ascendas India Development Trust and Ascendas over their properties in India. Sponsor Ascendas Land is Asia's leading provider of business space solutions. They provide AREIT with a pipeline of potential acquisition opportunities.

Historical Yield Band

P/BV


0 .6 0 .7 0 .8 0 .9 1 .0 1 .1 1 .2 1 .3 1 .4

Ju l-07 A u g -0 7 Sep -0 7 Oct -0 7 No v-0 7 Dec-0 7 Jan-0 8 Feb -0 8 M ar-0 8 A pr-0 8

A iT FSSTI FSTRE

(x)


0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Jul-07 Sep-07 Nov-07 Jan-08 Mar-08

Ait MAS 10 year bond yield

(%)

With its 4 assets located strategically in the IT parks in India, AIT is well positioned to ride the office real estate market boom in India. Its portfolio has an average occupancy of 98% with a strong tenant base consisting of internationally recognized companies who are looking to outsource their US operations to IT hubs in India including GM, IBM and Infineon Technologies.

Development pipeline is visible and strong, with plans to complete more space at its existing 4 properties. Together these can add 4.2msf of new space of 89% of existing portfolio when completed. In terms of acquisition growth, it has the ROFR from Ascendas Land and Ascendas India Development Trust for another 10.8msf of pipeline.

AIT offers a unique exposure into the fast growing business parks leasing business in India. The stock offers FY09 and FY10 yields of 5.7% and 6.4% 46% upside to our price target of $1.84.

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Jul-07 Sep-07 Nov-07 Jan-08 Mar-08

(x)

0.8

1.0

1.2

1.4

1.6

1.8

2.0

Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08

Floor 6%

Mid 5%

AiT

Ceiling 4%

S$

Corporate Profile

Ascendas India Trust

Page 47


Portfolio Details

DPU Performance ( since listing) Portfolio (NLA) by Country Tenant sector by base rental

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0

10.0

07 08 09F 10F

S cts

Occupancy Debt Maturity Profile

95%94%

100%100%

ITPB ITPC The V CyberPearl

Statement of Total Return (S$ m) Rates & Ratio FY Mar 2007A 2008A 2009F 2010F FY Mar 2007A 2008A 2009F 2010F

Gross revenue 68 103 124 159 Net Prop Inc Margins (%) 58.7 58.9 59.5 63.3Property expenses (28) (42) (50) (58) Net Income Margins (%) 59.3 2.7 41.0 39.9Net Property Income 40 61 74 101 Dist to revenue (%) 59.3 44.6 44.7 39.6Other Operating expenses 1 (10) (9) (11) Managers & Trustee’s fees (1.1) 9.7 7.3 7.1Other Non Opg (Exp)/Inc 0 0 0 0 to sales (%) Net Interest (Exp)/Inc (5) (7) 0 (7) ROAE (%) 8.5 0.4 6.3 7.8Exceptional Gain/(Loss) (3) 2 0 0 ROA (%) 4.5 0.3 4.1 4.3Net Income 47 39 65 82 ROCE (%) 5.9 1.3 5.9 7.0Tax (5) (31) (12) (16) Int. Cover (x) 8.1 6.8 NM 12.5Minority Interest (2) (5) (2) (3) Current Ratio (x) 0.6 1.1 1.1 1.1Preference Dividend 0 0 0 0 Quick ratio (x) 0.6 1.1 1.1 1.1Net Income After Tax 41 3 51 63 Aggregate Leverage (%) 39.5 19.0 14.6 28.7Total Return 41 62 51 63 Operating CFPS (S cts) 5.1 (1.5) 8.6 9.2Non-tax deductible Items 0 (15) 6 8 Net Inc available for Dist. 41 46 55 63

NAV per shr (S cts) 63.1 103.9 103.5 103.9 DPU (S cts) 5.4 6.1 7.3 8.3 Distribution Yield (%) 4.2 4.7 5.7 6.4 Revenue Gth (%) N/A 50.2 20.6 28.4

N Property Inc Gth (%) N/A 50.7 21.7 36.7 Net Inc Gth (%) N/A (93.2) 1,751.7 25.0 Sources: Company, Bloomberg, DBS Vickers AIT was listed on 1/8/07

Operating Buildings m

sqftProposed Devt m sqft Remarks

ITPB 1.7 0.7

24 acres/ 2.7m sqft SBA available for future devt

ITPC 1.3 0.7 The V 0.4 -CyberPearl 1.3 -Total 4.7 1.5

Hyderabad36%

Bangalore36%

Chennai28%

IT65%

IT/ITES10%

ITES19%

Others5%

F&B1%

0

20

40

60

80

100

120

140

160

180

07 08 09F 10F56

57

58

59

60

61

62

63

64

Gross Revenues LHS Net Property Income Margin RHS

(S$m)(%)

05

1015202530354045

2008 2009 2010 2011 >2012

S$m

Corporate Profile

Ascendas REIT

Page 48


Bloomberg: AREIT SP | Reuters: AEMN.SI

BUY S$2.68 FSSTI: 3,228.95

Target Price : 12-Month S$2.86 Description AREIT invests primarily in income producing industrial and business space that are located in Singapore. As at 31st March ’08, its portfolio consists of 84 assets with a combined appraised value of S$4.0bn. Manager & Strategy AREIT’s manager is Ascendas Funds Management limited, a 100% subsidiary of its sponsor Ascendas. The investment strategy of AFM is to invest in a diverse portfolio of Business Park, hi-tech and light industrial properties, distribution and logistics centres and warehouse retail properties in Singapore. Sponsor Ascendas is Asia's leading provider of business space solutions. They provide AREIT with a pipeline of potential acquisition opportunities to be injected to the REIT. PRICE PERFORMANCE Historical Yield Band

P/BV

Historical Relative Trend Analysis Yield vs 10-yr Govt Bond (since listing) Sources: Company, Bloomberg, DBS Vickers

AREIT offers attractive yields of 5.8% and a steady income stream supported by a weighted average length of lease of 5.9 years. An estimated 47% of its portfolio caters to long-term sale and leaseback properties.

Its science and business park properties are also enjoying the spillover effect of the present shortage of new tight office supply and high office rents in the prime areas.

Acquisition pipeline growth, although moderated from the peak of $1b pa, is still a commendable $300-400m a year. With a low gearing of 38.3%, it can fund these new buys via debt. Move into development activities could raise risks, however, as returns of c8% are better than the 6.5-7% for completed properties, these deals are earnings accretive.

A-REIT is currently trading at FY09 and FY10 yields of 5.8-5.9%. Maintain Buy with a price target of S$2.86.

0

2

4

6

8

10

12

Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08

AREIT M as 10 yr Govt Bond

(%)

0.9

1.1

1.3

1.5

1.7

1.9

2.1

Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07

(x)

0.000.501.001.502.002.503.003.504.00

Jan-03 Nov-03 Sep-04 Jul-05 M ay-06 M ar-07 Jan-08 Nov-08

Ceiling 4%

AREIT

M id 6.5%

Floor 10%

S$

0.00.51.01.52.02.53.03.54.04.55.0

Jan-03 Oct-03 Jul-04 Apr-05 Jan-06 Oct-06 Jul-07 Apr-08

AREIT FSSTI Index FSTRE Real Estate

(x)

Corporate Profile

Ascendas REIT

Page 49


Portfolio Details ( Top ten properties by Valuation)

DPU Performce ( since listing) Asset Class by Valuation


0

200

400

600

800

1000

2008/09 2009/10 2010/11 2011/12

S$m

Statement of Total Return (S$ m) Rates & RatioFY Mar 2007A 2008A 2009F 2010F FY Mar 2007A 2008A 2009F 2010F

Gross revenue 283 322 380 419 Net Prop Inc Margins (%) 74.3 75.6 75.6 75.6Property expenses (73) (79) (93) (102) Net Income Margins (%) 52.4 54.3 50.9 50.1Net Property Income 210 243 288 316 Dist to revenue (%) 57.9 58.1 54.4 53.5Other Operating expenses (24) (28) (34) (38) Managers & Trustee’s fees 8.3 8.7 9.0 9.0Other Non Opg (Exp)/Inc 0 0 0 0 to sales (%) Net Interest (Exp)/Inc (38) (40) (59) (69) ROAE (%) 8.1 7.9 8.0 8.2Exceptional Gain/(Loss) 0 0 0 0 ROA (%) 4.9 4.7 4.4 4.3Net Income 148 175 194 210 ROCE (%) 6.4 6.0 6.1 6.1Tax 0 0 0 0 Int. Cover (x) 4.9 5.3 4.3 4.0Minority Interest 0 0 0 0 Current Ratio (x) 0.0 0.1 0.1 0.1Preference Dividend 0 0 0 0 Quick ratio (x) 0.0 0.1 0.1 0.1Net Income After Tax 148 175 194 210 Aggregate Leverage (%) 37.5 38.3 43.6 43.2Total Return 337 669 194 210 Operating CFPS (S cts) 15.4 17.3 14.6 15.0Non-tax deductible Items 15 12 13 15 Free CFPS (S cts) 15.4 17.0 16.0 15.5Net Inc available for Dist. 164 187 207 224 NAV per shr (S cts) 149.1 184.2 181.7 180.8 DPU (S cts) 12.7 14.1 15.6 15.9 Distribution Yield (%) 4.8 5.3 5.8 5.9 Revenue Gth (%) 24.6 13.9 18.0 10.0



%Portfolio

Telepark (Biz & Sc Park) 260,952 242 927 6%The Gemini (Biz & Sc Park) 282,633 102.7 363 3%The Capricon (Biz & Sc Park) 239,485 103.4 432 3%Kim Chuan Tele Complex (Hi-Tech) 270,388 116 429 3%Techlink (Hi-Tech) 371,898 111.9 301 3%Techplace I (Flatted Factories) 641,274 121.9 190 3%

Techplace II (Flatted Factories) 762,335 148.4 195 4%C&P Logistics Hub (Logistics) 1,377,506 237 172 6%SenKee Logistics (Logistics) 305,810 106.6 349 3%TT International Tradepark (Logistics) 460,151 106 230 3%

NLA sqfValuation

S$'m1Val

S$psf

0%

10%

20%

30%

40%

50%

60%

FY08 FY09 FY10 FY11 FY12 > FY12

Logistics & Distribution Centres25%

Light Industrials14%

Flatted Factories

7%

WarehouseRetail Facilit ies

3%

Hi-Tech Industrials

25%

Science & Business Parks

22%

Investment Properties

4%

050

100150

200250300

350400

450

05 06 07 08 09F 10F73

74

74

75

75

76

76

77

77

Gross Revenues NPI M argin

S$m (%)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

05 06 07 08 09F 10F

S cts

Corporate Profile

Ascott Residence Trust

Page 50


Bloomberg: ART SP | Reuters: ASRT.SI

BUY S$1.30 FSSTI: 3,228.95

Price Target : 12-Month S$ 2.30 Description Ascott Residence Trust (ART) is the first and only listed service residence investment trust in Singapore, focusing on high-growth serviced residence and rental housing markets located in Asia. Since its listing on the 31st March 06, ART has almost doubled its asset portfolio from S$856m to S$1.5bn with a high portfolio occupancy of c.80% as at 31 Dec 07. Manager & Strategy ART is managed by is managed by Ascott Residence Trust Management Limited, a wholly-owned subsidiary of The Ascott Group Limited (Ascott). The manager aims to actively pursue acquisition opportunities and yield optimization through leveraging on the experience of its management team and through the support of the sponsor. Sponsor The Ascott Group is the largest international serviced residence owner-operator, with over 20,000 serviced residence units in key cities of Asia Pacific, Europe and the Gulf region. PRICE PERFORMANCE Historical Yield Band

P/BV



Started from an initial portfolio of 12 properties, its asset base has tripled to 37 properties valued at S$1.53b as at Dec 07. It has a well-balanced portfolio of 52% emerging market and 48% stable economies to provide both earnings growth and stability. Strong FDI into parts of Asia such as Vietnam, China, Philippines and Singapore would enable ART to enjoy strong demand for its services and boost room and occupancy rates. Together these 4 markets account for up to 82% of topline. Acquisition visibility is clear with a strong pipeline from parent Ascott and the group is likely on track to achieve its targeted portfolio size of $2b by end 2008. With a gearing of 35%, it has sufficient capacity to fund these purchases via debt. We continue to like ART’s exposure to the relatively more stable segment component of the hospitality market. Our price target of $2.30 offers potential upside of 77%.

0.7

0.8

0.9

1.0

1.1

1.2

1.3

1.4

1.5

1.6

M ar-06 Aug-06 Jan-07 Jun-07 Nov-07 Apr-08

(x)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Apr-06 Sep-06 Feb-07 Jul-07 Dec-07 M ay-08 Oct-08

Ceiling 3%

M id 4.5 %

Floor 6%

ART

S$

0

1

2

3

4

5

6

7

M ar-06 Sep-06 M ar-07 Sep-07

ART M as 10 year Govt Bond

(%)

0.8

1.0

1.2

1.4

1.6

1.8

2.0

Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07

FSSTI Index FTSRE Real Estate ART

(x)

Corporate Profile


Page 51


Valuation by Country Revenue by Sector

DPU Performance ( since listing) Tenant – Length of Stay


Statement of Total Return (S$ m) Rates & RatioFY Dec 2006A 2007A 2008F 2009F FY Dec 2006A 2007A 2008F 2009F

Gross revenue 90 155 191 209 Net Prop Inc Margins (%) 47.5 45.0 44.2 44.6Property expenses (47) (85) (107) (116) Net Income Margins (%) 10.6 8.5 21.3 22.2Net Property Income 43 70 84 93 Dist to revenue (%) 27.4 29.1 27.6 28.0Other Operating expenses (4) (7) (10) (10) Managers & Trustee’s fees 4.1 4.3 5.0 4.8Other Non Opg (Exp)/Inc 0 0 0 0 to sales (%) Net Interest (Exp)/Inc (10) (15) (19) (19) ROAE (%) 1.5 1.6 4.2 4.8Exceptional Gain/(Loss) (7) (7) 0 0 ROA (%) 0.9 0.9 2.4 2.7Net Income 22 41 56 64 ROCE (%) 3.0 2.4 4.2 4.6Tax (6) (22) (8) (10) Int. Cover (x) 3.8 4.3 4.0 4.4Minority Interest (6) (6) (7) (8) Current Ratio (x) 1.0 0.4 0.4 0.4Preference Dividend 0 0 0 0 Quick ratio (x) 1.0 0.4 0.4 0.4Net Income After Tax 10 13 41 46 Aggregate Leverage (%) 29.1 34.1 35.6 35.7Total Return 27 161 41 46 Operating CFPS (S cts) 7.6 11.2 10.3 10.5Non-tax deductible Items (3) (115) 12 12 Free CFPS (S cts) (0.1) 10.5 8.7 9.6Net Inc available for Dist. 25 45 53 58 NAV per shr (S cts) 132.7 160.5 158.6 156.8 DPU (S cts) 4.8 7.7 8.6 9.5 Distribution Yield (%) 3.7 5.9 6.6 7.3 Revenue Gth (%) 6.6 72.4 23.3 9.3

N Property Inc Gth (%) 9.3 63.5 21.0 10.2 Net Inc Gth (%) (45.7) 37.8 209.8 13.8


Less than 1 mth27%

1 - 6 mths22%6 - 12 mths

14%

more than 12 mths37%

Singapore

27%

China26%Indonesia

6%

Philippines9%

Vietnam11%

Australia1%

Japan20%

Industrial18%

Healthcare17%

Manufacturing12%IT

10%

Consumers9%

Others34%

0.0

2.0

4.0

6.0

8.0

10.0

06 07 08F 09F

S cts

0

50

100

150

200

250

300

350

400

2008 2009 2010 2011

S$m

0

50

100

150

200

250

4Q06 1Q07 2Q07 3Q07 4Q0780

82

84

86

88

90

92

AOR (LHS) Rev PAR (LHS) Occupancy Rate (RHS)

(S$m) (%)

0 50

100 150 200 250

06 07 08F 09F

S$m

42

43

44

45

46

47

48%

Gross Revenues LHS Net Property Margins RHS

Corporate Profile

CapitaCommercial Trust

Page 52


Bloomberg: CCT SP | Reuters: CACT.SI

BUY S$2.35 FSSTI: 3,228.95

Price Target : 12-Month S$ 2.93 Description CCT invests primarily in income producing commercial assets. Since listing, its has grown to be Singapore’s biggest commercial REIT by market capitalization. As at 31st Dec 07, its assets, located mostly in downtown core and in the CBD has a combined appraised value of S$5.1bn. Manager & Strategy CCT is managed CapitaCommercial Trust Management Limited ("CCTML"), an indirect wholly-owned subsidiary of CapitaLand. The manager aims to actively manage its assets and source for accretive acquisition opportunities when available. Sponsor Capitaland is one of Asia’s largest listed real estate companies, providing CMT with an encompassing pipeline of potential asset injections.


P/BV

0.6

0.8

1.0

1.2

1.4

1.6

1.8

Mar-05 Aug-05 Jan-06 Jun-06 Nov-06 Apr-07 Sep-07 Feb-08

(x)


0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5

May-04 Nov-04 May-05 Nov-05 May-06 Nov-06 May-07 Nov-07

CCT FSSTI FSTRE Real

(x)


01234567

May-04 Oct-04 Mar-05 Aug-05 Jan-06 Jun-06 Nov-06 Apr-07 Sep-07 Feb-08

CCT MAS 10 year Govt Bond

(%)

As one of the largest commercial REIT with a total portfolio NLA of 2.5msf or an estimated 7% of the prime Grade office stock, CCT is well placed to ride on the office upcycle.

CCT will continue to benefit from the positive rental reversion trend with a total 56% of rental income due to be reviewed over the remaining 2008 to 2010. Large spreads between new and previous leases should translate to strong earnings growth over the next 2 years. In addition, acquisition of One George St for $1.165b or at a NPI yield of 4.25% is accretive to earnings. Progressive AEI at Raffles City office and retail area should provide another boost to bottom line in the medium term.

We continue to like CCT for its strong organic earnings growth prospects. FY08 and FY09 yields are attractive at 4.5-5.5%. Our price target of $2.93 offers a potential upside of 25%.

0.9

1.4

1.9

2.4

2.9

3.4

3.9

May-04 Oct-04 Mar-05 Aug-05 Jan-06 Jun-06 Nov-06 Apr-07 Sep-07 Feb-08 Jul-08 Dec-08

Ceiling 3%S$

Floor 6%

Mid 4.5%CCT

Corporate Profile

CapitaCommercial Trust

Page 53


Portfolio Details

DPU Performance ( since listing) Top 10 Tenant Profile

0.0 2.0 4.0 6.0 8.0

10.0 12.0 14.0

04 05 06 07 08F 09F

S cts



Gross revenue 156 240 273 342 Net Prop Inc Margins (%) 73.6 72.5 79.7 81.1Property expenses (41) (66) (55) (65) Net Income Margins (%) 45.1 45.8 50.9 50.9Net Property Income 115 174 218 277 Dist to revenue (%) 50.6 50.2 55.1 55.1Other Operating expenses (9) (19) (23) (27) Managers & Trustee’s fees 6.0 8.1 8.6 7.9Other Non Opg (Exp)/Inc 0 0 0 0 to sales (%) Net Interest (Exp)/Inc (29) (48) (66) (87) ROAE (%) 3.5 3.4 3.5 4.4Exceptional Gain/(Loss) (6) (6) 0 0 ROA (%) 2.3 2.4 2.4 2.7Net Income 70 110 139 174 ROCE (%) 3.6 3.5 3.4 3.9Tax 0 0 0 0 Int. Cover (x) 3.6 3.2 3.0 2.9Minority Interest 0 0 0 0 Current Ratio (x) 0.4 0.2 0.1 0.0Preference Dividend 0 0 0 0 Quick ratio (x) 0.4 0.2 0.1 0.0Net Income After Tax 70 110 139 174 Aggregate Leverage (%) 31.6 24.0 37.8 37.8Total Return 427 1,416 139 174 Operating CFPS (S cts) 8.5 11.6 9.2 11.2Non-tax deductible Items 9 10 11 15 Free CFPS (S cts) (114.6) 9.7 (73.2) 12.0Net Inc available for Dist. 79 120 151 188




NLAValuation

S$'m Val psf % PortfolioCapital Tower 740,665 1,090 1,472 24%6 Battery Road 495,606 1,031 2,080 23%HSBC Building 200,394 230 1,146 5%Starhub Cebtre 280,083 295 1,053 7%Robinson Pt 133,090 169 1,270 4%Bugis Village 118,737 70 590 2%Golden Shoe Carpark 42,416 110 2,593 2%Market Street Carpark 21,197 59 2,783 1%Raffles City- 60% 440,435 1,447 3,284 32%

4500.2

0.0

50.0

100.0

150.0

200.0

250.0

300.0

01 02 03 04 05 06 07 08F 09F

S$'m

66.0

68.0

70.0

72.0

74.0

76.0

78.0

80.0

82.0%

Gross Revenues LHS NPI M argin RHS

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

RC Hotels (Pte) Ltd

GIC

Standard Chartered Bank

HSBC

JP M organ

Robinson & Co

Cisco Systems (USA) Pte. Ltd.

CapitaLand Group(2)

EDB

StarHub Ltd.

30.0%

21.8%

31.5%

4.1%

12.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

FY08 FY09 FY10 FY11 > FY12

-

100

200

300

400

500

600

700

FY08 FT09 FY10 FY11

S$'m

Corporate Profile

CDL Hospitality Trust

Page 54


Bloomberg: CDREIT SP | Reuters: CDLT.SI

BUY S$2.05 FSSTI: 3,228.95

Target Price : 12 Month S$2.90 Description CDL H-REIT invests primarily in income producing hospitality assets. Its initial portfolio consists of four quality hotels located at and near the CBD. Since its listing, it has added 2 more hotels to its portfolio, with a combined appraised value of S$1.6bn as at 31 Dec 2007. Manager & Strategy CDL H-REIT is managed by M&C REIT Management Limited, an indirect wholly owned subsidiary of Millennium & Copthorne Hotels plc. The manager works with master lessees of the hotels to implement asset enhancement plans and source for acquisitions with the expertise from its sponsor, Millennium & Copthorne Hotels Plc (M&C) as well as its parents, City Developments Ltd. Sponsor M&C is an internationally recognized hotel group with a portfolio of c.105 hotels in 18 countries around the world, representing a wide variety of hotel styles with high standards of service and facilities.


P/BV

Ceiling 3%

Floor 7%

Mid pt 5%CDL HT

S$

0.4

0.9

1.4

1.9

2.4

2.9

3.4

3.9

4.4

Jul-06 Dec-06 May-07 Oct-07 Mar-08 Aug-08

0.81.01.21.41.61.82.02.22.42.6

Jul-06 Nov-06 Mar-07 Jul-07 Nov-07 Mar-08

(x)


0.0

0.5

1.0

1.5

2.0

2.5

3.0

Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08

CDL HT FTSRE FSSTI

S$


01234567

Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08

(%)

CD REIT MAS 10 year Govt Bond

CDL HT is Singapore’s purest listed hotel player with a total inventory of 2,324 rooms or an 8% market share.

The group is well placed to benefit from various government initiatives to position Singapore as a MICE and tourist destination with events like F1 in Sept’08, opening of the 2 IRs in 2009/2010 as well as hosting the Youth Olympics.

Strong industry fundamentals such as a lack of new room supply over FY08 and strong demand should underpin strong Revpar growth. In 1Q08, room rates in Singapore grew a strong 30% yoy.

We reiterate Buy on CDL HT’s given its strong positioning in a buoyant sector. Based on our DPU estimates of 11.9cts and 13.1cts for FY08 and FY09, CDL HT is trading at 5.8-6.4% yield respectively. Our price target of $2.90 offers 41% upside.

Corporate Profile

CDL Hospitality Trust

Page 55


Portfolio Details

0

20

40

60

80

100

120

140

160

03 04 05 06 07 08F 09F89

90

91

92

93

94

95%

Gross Revenue LHS NPI Margin RHS

S$m

Number of Rooms

Valuation S$'m

Val / room S$'000

Orchard Hotel 653.0 458.0 701.4Grand Copthorne Waterfront Hotel 550.0 334.0 607.3M Hotel 413.0 253.0 612.6Copthorne King's Hotel 310.0 141.0 454.8Orchard Hotel Shopping Arcade - 40.3 -Rendezvous Hotel Auckland 455.0 127.5 280.2Novotel Quay 398.0 275.0 691.0 2,779.0 1,628.8

DPU Performance ( since listing) Rooms by Hotel Rooms by Region

Operational Data Debt Maturity Profile

0

50

100

150

200

250

4Q06 1Q07 2Q07 3Q07 4Q07

S$

81%

82%

83%

84%

85%

86%

87%

88%

89%

90%

RevPAr (LHS) AOR (LHS) Occupancy (RHS)

0

100

200

300

FY08 FY09

S$m


Gross revenue 28 91 127 138 Net Prop Inc Margins (%) 91.8 94.7 92.7 91.4Property expenses (2) (5) (9) (12) Net Income Margins (%) 81.3 66.2 71.6 72.9Net Property Income 26 86 117 126 Dist to revenue (%) 71.7 73.6 77.9 79.0Other Operating expenses (4) (10) (10) (11) Managers & Trustee’s fees 15.7 10.9 8.1 7.8Other Non Opg (Exp)/Inc 6 0 0 0 to sales (%) Net Interest (Exp)/Inc (5) (16) (16) (15) ROAE (%) 3.2 5.9 6.9 7.7Exceptional Gain/(Loss) 0 0 0 0 ROA (%) 2.1 4.3 5.4 6.0Net Income 23 60 91 101 ROCE (%) 2.0 5.6 6.6 7.1Tax 0 0 0 0 Int. Cover (x) 4.6 4.8 6.5 7.8Minority Interest 0 0 0 0 Current Ratio (x) 0.1 0.4 0.5 0.4Preference Dividend 0 0 0 0 Quick ratio (x) 0.1 0.4 0.5 0.4Net Income After Tax 23 60 91 101 Aggregate Leverage (%) 34.6 17.6 19.1 19.2Total Return 156 357 91 101 Operating CFPS (S cts) 3.5 8.2 9.1 12.1Non-tax deductible Items (3) 7 8 8 Free CFPS (S cts) (134.0) (16.3) 8.8 12.1Net Inc available for Dist. 20 67 99 109

NAV per shr (S cts) 102.9 175.1 159.1 157.3 DPU (S cts) 2.9 9.0 11.9 13.1 Distribution Yield (%) 1.4 4.4 5.8 6.4 Revenue Gth (%) N/A 221.6 39.6 9.1

N Property Inc Gth (%) N/A 231.5 36.7 7.6 Net Inc Gth (%) N/A 161.8 50.9 11.2 Sources: Company, Bloomberg, DBS Vickers

Orchard Hotel24%

Grand Corpthorne Waterfront

Hotel20%

M Hotel15%

Copthorne King's Hotel

11%

Rendezvous Hotel

Auckland16%

Novotel Quay14%

Singapore84%

New Zealand16%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

04 05 06 07 08F 09F

S cts

Corporate Profile

Frasers Centerpoint Trust

Page 56


Bloomberg: FCT SP | Reuters: FCRT.SI

BUY S$1.33 FSSTI: 3,228.95

Price Target: 12 Month S$1.66 Description FCT invests primarily in income producing retail properties. Its initial portfolio consists of three quality suburban malls with a combined appraised value of S$989 million as at 30 September 2007. Manager & Strategy The manager, Frasers Centerpoint Asset Management Ltd, is a wholly owned subsidiary of the Sponsor Frasers Centerpoint Limited (“FCL”). It aims to actively manage its properties and invest in income producing retail assets or properties that could be developed into income generating properties. Sponsor FCL is a wholly-owned subsidiary of F&N Limited, a leading international and diversified business group. FCL is one of the fastest growing real estate developers in Singapore, offering a ready pipeline of assets for injection.


P/BV

0.50.70.91.11.31.51.71.92.12.3

Jul-06 Nov-06 Mar-07 Jul-07 Nov-07 Mar-08 Jul-08 Dec-08

S$Ceiling 3.5%

Mid 4.5%

Floor 6%

FCT Share Px

0.70

0.95

1.20

1.45

1.70

1.95

Jul-06 Nov-06 Mar-07 Jul-07 Nov-07

(x)



01234567

Jul-06 Nov-06 Mar-07 Jul-07 Nov-07FCT MAS 10 yr Govt bond

(%)

We like FCT for its exposure to the resilient Singapore’s suburban retail sector. FCT’s well-located properties, within huge population catchment areas of Woodlands and Yishun, will ensure continued strong patronage at its malls. Its overseas expansion, via a stake in Malaysian-listed Hektar Reit, should provide another wing of growth in the medium term. We expect FCT to grow its DPU from its i) positive rental reversions from its tenant expiry profile of c. 60% over FY08-FY09, ii) accretive acquisition lineup of properties over the next few years starting with Northpoint II in FY08 and Yew Tee Point in FY09. In addition, asset enhancement activities such as downsizing of ‘big box’ space at Causeway Point and active tenant mix management should provide the organic component of growth. Maintain Buy on FCT with a price target of S$1.66. At the current price, the stock offers FY08 and FY09 yields of 5.4-5.6%.

0.80.91.01.11.21.31.41.51.61.71.8

Jul-06 Nov-06 M ar-07 Jul-07 Nov-07 M ar-08

FCT FTSE STI FTSRE Real Estate

(x)

Corporate Profile

Frasers Centerpoint Trust

Page 57


Portfolio Details

NLA (sf)

Valuation ($m)

Value ($psf)

Causeway Point 418,543 676 1,615 Northpoint 149,243 266 1,782 Anchorpoint 71,000 47 662

Total 638,786 989

DPU Performance ( since listing) Top 5 Tenant - Retail


0

20

40

60

80

100

120


No. of Leases

0%5%10%15%20%25%30%35%

% NLA

No. of leases LHS % of NLA RHS

050

100150200250300


S$m

Statement of Total Return (S$ m) Rates & RatioFY Sep 2006A 2007A 2008F 2009F FY Sep 2006A 2007A 2008F 2009F

Gross revenue 17 77 84 97 Net Prop Inc Margins (%) 69.1 66.7 68.0 68.5Property expenses (5) (26) (27) (30) Net Income Margins (%) 46.3 44.8 43.6 40.2Net Property Income 12 52 57 66 Dist to revenue (%) 52.2 52.1 53.2 49.7Other Operating expenses (1) (6) (8) (9) Managers & Trustee’s fees 7.9 8.2 9.9 9.7Other Non Opg (Exp)/Inc 0 0 0 0 to sales (%) Net Interest (Exp)/Inc (3) (12) (14) (20) ROAE (%) 1.2 5.0 5.2 5.4Exceptional Gain/(Loss) 0 0 0 0 ROA (%) 0.9 3.5 3.2 3.1Net Income 8 35 37 39 ROCE (%) 1.2 4.6 4.4 4.6Tax 0 0 0 0 Int. Cover (x) 4.1 3.9 3.4 2.8Minority Interest 0 0 0 0 Current Ratio (x) 0.3 0.5 0.3 0.1Preference Dividend 0 0 0 0 Quick ratio (x) 0.3 0.5 0.3 0.1Net Income After Tax 8 35 37 39 Aggregate Leverage (%) 29.8 31.6 40.7 41.6Total Return 29 87 37 39 Operating CFPS (S cts) 1.3 5.5 5.6 5.8Non-tax deductible Items 1 4 4 4 Free CFPS (S cts) (0.8) 7.5 (18.2) (10.0)Net Inc available for Dist. 9 40 45 48 NAV per shr (S cts) 107.8 115.4 113.6 114.6 DPU (S cts) 1.5 6.5 7.2 7.4 Distribution Yield (%) 1.1 4.9 5.4 5.6 Revenue Gth (%) (75.6) 346.8 8.4 15.2

N Property Inc Gth (%) (75.6) 331.4 10.4 16.0 Net Inc Gth (%) (73.9) 331.9 5.6 6.1


0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

06 07 08F 09F

S cts

0

20

40

60

80

100

120

FY03 FY04 FY05 FY06 FY07 FY08F FY09F

S$m

65%

66%

67%

68%

69%

70%

71%

Gross Revenues (LHS) NPI Margin (RHS)

0%

2%

4%

6%

8%

10%

12%

14%

Cold Storage Metro Courts John Litt le Cathay Cineplexes

Corporate Profile

K-REIT Asia

Page 58


Bloomberg: KREIT SP | Reuters: KASA.SI

BUY S$1.43 FSSTI: 3,228.95

Price Target: 12-Month S$1.96 Description KREIT Asia invests primarily in income producing office and commercial real estate assets. As at 31 Dec’07, its portfolio consists of 5 commercial assets located at and near the CBD with a combined appraised value of S$2.1bn . Manager & Strategy K-REIT Asia is managed by K-REIT Asia Management Ltd, a wholly-owned subsidiary of Keppel Land Ltd. The manager aims to maximize yields to unitholders through actively managing its assets, practising prudent capital management and sourcing for acquisitions opportunities from third parties and leveraging on the expertise from its sponsor, Keppel Land. Sponsor Keppel Land is the property arm of the Keppel Group, one of Singapore's largest conglomerates. PRICE PERFORMANCE Historical Yield Band

P/BV

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08

K REIT

Ceiling 3%

M id 5%

Floor 8%

S$

0.00.20.40.60.81.01.21.41.61.8

Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08

(x)

Historical Relative Tend Analysis Yield vs 10-yr Govt Bond (since listing)

0.0 0.5 1.0 1.5 2.0 2.5


K-REIT FSSTI Index FTSRE Real Estate

(x)


012345678


K-REIT M AS 10 year Govt Bond

(%)

K-REIT is a beneficiary of the positive office rental reversion market. An estimated 42% of its portfolio NLA is due for lease renewals over 2008-10. Average gross rent within its portfolio is a low $6.86psf while current prime office rents are at an average $16psf/mth as at end 1Q08.

Balance sheet has strengthened post its rights issue, with gearing down to 27.6%, giving it significant headroom for new acquisitions. In the near term, it has an estimated remaining short-term debt of $390m to be refinanced. While the recent 8-for-5 rights issue, completed in May 08, may dampen DPU growth, it is likely to have been anticipated and factored into share price. K-REIT offers post-rights FY08 and FY09 DPU yield of 5.2% and 6.1% respectively. Price target of $1.96 offers upside of 37%.

Corporate Profile

K-REIT Asia

Page 59


Portfolio Details:

0

10

20

30

40

50

60

70

05 06 07 08F 09F

S$m

56

58

60

62

64

66

68

70

72%

Gross Revenues LHS NPI M argins RHS

NLA Value ValueProperty (sq f) (S$'m) (S$ psf)Prudential Tower 108,396 227 2,094

Keppel Towers and GE Tower 430,422 580 1,348 Bugis Junction Towers 247,372 303 1,225

One Raffles Quay* 445,023 992 2,229

Total 1,231,213 2,102 * K-REIT Asia owns a one-third interest of One Raffles Quay, which has a total net lettable area of 124,078 sq

DPU Performance ( since listing) Top 10 Tenants by NLA

0.01.02.03.04.05.06.07.08.09.0

10.0

06 07 08F 09F

S cts

Operational Data Debt Maturity Profile

0%

5%

10%

15%

20%

FY2008 FY2009 FY2010 FY2011 FY2012

Lease Expiry Rent Review

* K-reit has recently completed a 8-for-5 rights issue ro raise S$551.7m. Post rights issue 2008 debt would reduce to S$0.6bn.


Gross revenue 24 40 48 59 Net Prop Inc Margins (%) 70.5 70.5 67.9 68.5Property expenses (7) (12) (15) (18) Net Income Margins (%) 35.1 31.3 27.7 39.0Net Property Income 17 28 32 40 Dist to revenue (%) 46.8 54.4 100.9 99.0Other Operating expenses (3) (7) (13) (13) Managers & Trustee’s fees 14.4 18.2 27.2 22.6Other Non Opg (Exp)/Inc 0 0 (28) (28) to sales (%) Net Interest (Exp)/Inc (5) (9) (19) (17) ROAE (%) 1.7 1.8 1.1 1.6Exceptional Gain/(Loss) 0 0 0 0 ROA (%) 1.2 0.9 0.6 1.1Net Income 8 13 18 28 ROCE (%) 2.0 1.5 0.7 1.1Tax 0 0 (5) (5) Int. Cover (x) 2.7 2.5 1.0 1.6Minority Interest 0 0 0 0 Current Ratio (x) 2.5 0.0 0.0 0.0Preference Dividend 0 0 0 0 Quick ratio (x) 2.5 0.0 0.0 0.0Net Income After Tax 8 13 13 23 Aggregate Leverage (%) 27.9 54.9 27.6 28.0Total Return 8 445 13 23 Operating CFPS (S cts) 8.4 10.5 (3.9) (3.2)Non-tax deductible Items 3 9 35 35 Free CFPS (S cts) (63.3) 11.3 (3.5) (2.8)Net Inc available for Dist. 11 22 48 58 NAV per shr (S cts) 190.1 319.9 219.8 222.4 DPU (S cts) 4.6 8.8 7.4 8.8 Distribution Yield (%) 3.2 6.2 5.2 6.1 Revenue Gth (%) N/A 67.9 19.4 22.8

N Property Inc Gth (%) N/A 68.1 14.9 23.9 Net Inc Gth (%) N/A 49.7 5.9 72.9


0% 1% 2% 3% 4% 5% 6% 7% 8%

Deutche Bank

UBS AG

I.E Singapore

ABN AM RO

GE Pacific

Credit Suisse

Ernst & Young

Barclays PLC

Prudential Assurance

Keppel Land

0.000.100.200.300.400.500.600.700.800.901.00

2008 2009 2010 2011 >2012

S$m

Corporate Profile

Macquarie MEAG Prime REIT

Page 60


Bloomberg: MMP SP | Reuters: MMPR.SI

BUY S$1.20 FSSTI: 3,228.95

Price Target : 12-Month S$ 1.63 Description MMP invests primarily in income producing retail assets located in the Asia Pacific Region. Its portfolio consists of 10 assets with a total combined appraised value ofS$2.2bn as at 31 Dec 07. Among these, it prides itself to have two distinctive local icons Wisma Atria and Nee Ann City in its portfolio. Manager & Strategy MMP’s manager is MacquarieStar Prime REIT Management Ltd, jointly held by Macquarie Bank (50%), Investmeore (25%) and MEAG (25%). The manager aims to optimize yields for unitholders through prudent capital management and strategic and opportunistic acquisitions to grow its asset base. PRICE PERFORMANCE Historical Yield Band

P/BV

0.5

0.6

0.7

0.8

0.9

1.0

1.1

1.2

Sep-05 M ar-06 Sep-06 M ar-07 Sep-07 M ar-08

(x)



0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Sep-05 Jan-06 M ay-06 Sep-06 Jan-07 M ay-07 Sep-07 Jan-08

(%)

M M P Yield M AS 10 yr Govt Bond

MMP is an attractive undervalued play with its retail properties located in prime Orchard Road. We expect MMP to benefit from Government’s push to remake Orchard Road area as a premier tourist draw in Singapore

The opening of ION Orchard will further enhance the product offerings along the Orchard Road belt, sustaining the capital values for its 2 prime assets. In the near term, catalysts for re-rating could come from (i) Toshin rent review that should kick in from June 2008, (ii) outcome of its strategic review that is expected to be concluded by Nov 2008.

We have a BUY rating and DCF-based S$1.63 target price.

0.6

0.7

0.8

0.9

1.0

1.1

1.2

1.3

1.4

1.5

1.6

Sep-05 M ar-06 Sep-06 M ar-07 Sep-07 M ar-08 Sep-08

Ceiling 5%

M id 6%

Floor 7%M M P

S$

0.5

0.7

0.9

1.1

1.3

1.5

1.7

1.9

2.1

Sep-05 Feb-06 Jul-06 Dec-06 M ay-07 Oct-07

M M P FSSTI Index FSTRE Real Estate

(x)

Corporate Profile

Macquarie MEAG Prime REIT

Page 61


Portfolio Details

0

20

40

60

80

100

120

140

06 07A 08F 09F

S$m

72

73

74

75

76

77

78

79

80%

Gross Revenues LHS NPI M argin RHS

DPU Performance ( since listing) Exposure by Asset and Country ( NLA)

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

05 06 07A 08F 09F

S cts

Portfolio Lease Expiry Debt Maturity Profile

0

50

100

150

200

250

300

350

400

450

2008 2009 2010 2011 >2012

S$m


Gross revenue 90 103 118 122 Net Prop Inc Margins (%) 77.1 74.6 78.5 78.8Property expenses (21) (26) (25) (26) Net Income Margins (%) 51.6 37.1 54.2 54.5Net Property Income 69 77 93 96 Dist to revenue (%) 61.1 57.3 59.8 60.7Other Operating expenses (9) (11) (16) (17) Managers & Trustee’s fees 10.1 10.9 13.6 14.1Other Non Opg (Exp)/Inc 0 0 0 0 to sales (%) Net Interest (Exp)/Inc (13) (16) (16) (16) ROAE (%) 4.6 2.9 4.2 4.3Exceptional Gain/(Loss) (1) (8) 4 4 ROA (%) 3.2 2.0 2.8 3.0Net Income 46 41 64 67 ROCE (%) 4.4 3.3 3.5 3.6Tax 0 (3) 0 0 Int. Cover (x) 4.6 4.0 4.7 4.9Minority Interest 0 0 0 0 Current Ratio (x) 0.5 0.2 0.4 0.4Preference Dividend 0 0 0 0 Quick ratio (x) 0.5 0.2 0.4 0.4Net Income After Tax 46 38 64 67 Aggregate Leverage (%) 26.0 29.6 29.6 29.6Total Return 217 487 64 67 Operating CFPS (S cts) 6.8 7.6 7.1 7.3Non-tax deductible Items 8 21 7 8 Free CFPS (S cts) 7.0 (11.0) 3.9 6.6Net Inc available for Dist. 55 59 71 74 NAV per shr (S cts) 115.7 160.1 158.9 157.6 DPU (S cts) 5.8 6.2 7.4 7.7 Distribution Yield (%) 4.8 5.2 6.2 6.4 Revenue Gth (%) 256.5 14.6 14.9 3.3

N Property Inc Gth (%) 256.3 10.9 21.0 3.6 Net Inc Gth (%) 201.5 (17.6) 67.8 3.7


23.0%

15.7%

22.5%

38.8%

24%

14% 16%

45.4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

FY08 FY09 FY10 FY11

by Gross Rent By NLA

Retail70%

Office30%

Singapore78%

Japan9%

China13%

NLA Valuation S$'m Val psf % PortfolioWisma Atria 1 227,631 901.5 3,960 41%Nee Ann City 2 397,008 1030.9 2,597 47%Terzo Roppongi 16,005 42.1 2,630 2%Secondo Harajuku 2,253 6.3 2,796 0%Holon L. Aoyoma 4,865 21.8 4,481 1%Primo Roppongi 5,069 16.9 3,334 1%Nakameguro 3,528 7.4 2,098 0%Daikanyama 8,087 25.3 3,128 1%Ebisu Fort 27,917 79.6 2,851 4%Chengdu 101,000 76.8 760 3%

793,363 2,208.6 1: represents 74.23% of total share value fo the strata lots in WA Retail component: 128,718 sqf, Office: 98,913 sqf

2: represents 27.23% of total share value fo the strata lots in NAC. Retail component: 256,022, Office 140,986

Corporate Profile

MapleTree Logistics Trust

Page 62


Bloomberg: MLT SP | Reuters: MAPL.SI

BUY S$1.03 FSSTI: 3,228.95

Price Target: 12-Month S$1.51 Description MLT invests primarily in income producing industrial and business space that are located in Asia Pacific Region. Its portfolio consists of 70 assets with a combined appraised value of S$2.4bn as at 31 Dec 07. Manager & Strategy MLT’s manager is Mapletree Logistics Trust Management Limited, a 100% subsidiary of its sponsor Mapletree Investment. The investment strategy of the manager is to invest in a diverse portfolio of good quality logistics properties in the Asian Region. Sponsor Mapletree Investments Pte Ltd is the Sponsor of the trust. It has granted first right of refusal to MLT over its future sales of logistics properties and will support MLT by warehousing assets with good growth potential for possible future acquisition. PRICE PERFORMANCE Historical Yield Band

Price/BV

0.5

0.6

0.7

0.8

0.9

1.0

1.1

1.2

Sep-05 M ar-06 Sep-06 M ar-07 Sep-07 M ar-08

(x)


0.0

0.5

1.0

1.5

2.0

2.5

Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08

M LT FSSTI Index FSTRE Real Estate

(x)


0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08M LT M AS 10 yr Govt Bond

(%)

MLT is one of the larger industrial REITs in Singapore by portfolio size. Led by an experienced management team and a strong sponsor backing, MLT’s strong Pan-Asian exposure gives investors the opportunity to ride the growth in the Asian logistics sector.

Looking ahead, MLT expects to benefit from (i) optimizing yields through rental reversions for the remaining 124k sqm of NLA between 2Q08 – 4Q08, (ii) additional income from completion of another eight asset acquisitions throughout FY08F for a total consideration of S$291m. With gearing of 60.9%, and a limited S$329m debt headroom, may prove to be a drag on share price in the near term.

We maintain BUY on MLT with DCF-backed target price of S$1.51. P/BV valuation of 1.1x is on the lower end of the peer group range of 0.8-1.5x. However, a re-rating of the stock could be triggered if it de-gears its balance sheet.

0.30.50.70.91.11.31.51.71.92.1

Jul-05 Mar-06 Nov-06 Jul-07 Mar-08 Nov-08

Ceiling

M id 5.5%

Floor M LT

S$

Corporate Profile

Mapletree Logistics Trust

Page 63


Portfolio Details (Top 10 properties by Value)

DPU Performance ( since listing) Asset Class by Country / Trade Sector

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

06 07 08F 09F

S cts


0

1 0 0

2 0 0

3 0 0

4 0 0

5 0 0

6 0 0

7 0 0

F Y 0 8 F Y 0 9 F Y 1 0 F Y 1 1 F Y 1 2

S $ m


Gross revenue 80 142 185 199 Net Prop Inc Margins (%) 87.1 88.1 90.0 90.0Property expenses (10) (17) (19) (20) Net Income Margins (%) 15.5 40.0 46.1 45.5Net Property Income 70 125 167 179 Dist to revenue (%) 50.2 50.5 46.3 45.8Other Operating expenses (10) (15) (24) (25) Managers & Trustee’s fees 12.8 10.6 12.8 12.8Other Non Opg (Exp)/Inc (18) (4) 0 0 to sales (%) Net Interest (Exp)/Inc (18) (34) (50) (55) ROAE (%) 2.6 6.9 8.2 8.7Exceptional Gain/(Loss) 0 0 0 0 ROA (%) 1.3 2.9 3.3 3.3Net Income 23 72 93 99 ROCE (%) 3.5 4.7 5.3 5.4Tax (11) (15) (8) (8) Int. Cover (x) 3.3 3.3 2.9 2.8Minority Interest 0 0 0 0 Current Ratio (x) 0.0 0.1 0.1 0.1Preference Dividend 0 0 0 0 Quick ratio (x) 0.0 0.1 0.1 0.1Net Income After Tax 12 57 85 91 Aggregate Leverage (%) 56.3 55.4 60.9 60.9Total Return 68 182 85 91 Operating CFPS (S cts) 7.2 9.8 8.4 8.2Non-tax deductible Items (28) (111) 0 1 Free CFPS (S cts) (77.7) (67.6) (21.8) 8.2Net Inc available for Dist. 40 71 86 91 NAV per shr (S cts) 73.1 94.1 94.0 94.0 DPU (S cts) 5.1 6.6 7.7 8.2 Distribution Yield (%) 4.9 6.4 7.5 8.0 Revenue Gth (%) 183.6 76.3 30.6 7.5

N Property Inc Gth (%) 236.2 78.4 33.4 7.5 Net Inc Gth (%) (4.8) 354.9 50.4 6.3 Sources: Company, Bloomberg, DBS Vickers

% revnue NLAValuation

S$'m Val psf LocationTIC Tech Centre 4.80% 330,956 65.9 199 SingaporePulau Sebarok 4.80% 5,492,464 99 18 SingaporeJurong Logistics Hub 10.40% 1,340,814 186 139 SingaporeShatin 2 3.3% 280,040 86.4 309 HKShantin 3 3.2% 261,963 84.7 323 HKShatin 4 9.1% 647,913 205.7 317 HKGrandtech Centre 4.6% 508,991 162.1 318 HKTsuen Wan 1 2.1% 183,931 52.2 284 HKKyoto Centre 2.8% 242,208 105.9 437 JapanZama Centre 3.2% 443,000 135.8 307 Japan

Singapore53%

Malaysia5%

Hong Kong25%

China4%

Japan13%

16%

21%

9%8% 7%

39%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

FY08 FY09 FY10 FY11 FY12 > FY12

Oil & Chemical Logistics

4%

Non-FTZ 3PL49%

Food & Cold Storage6%

Distribution Ctre22%

Warehousing14% FTZ 3 PL

5%

0

50

100

150

200

250

05 06 07 08F 09F

S$m

60

70

80

90

100%

Gross Revenues LHS NPI M argins RHS

Corporate Profile

Parkway Life REIT

Page 64


Bloomberg: PREIT SP | Reuters: PWLR.SI

BUY S$1.26 FSSTI: 3,228.95

Price Target : 12-Month S$ 1.50 Description Parkway Life REIT owns or invests in hospitals or healthcare related properties through ownership of SPVs. As at Dec 07, its portfolio consists of Mt Elizabeth hospital, Gleneagles hospital and Eastshore hospital in Singapore. Manager & Strategy PREIT is managed by Parkway Trust Management Ltd. The manager is expected to formulate and execute PREIT’s investment strategy, including determining the geography and asset type of PREIT’s portfolio. Sponsor Parkway Holdings is one of Asia’s premier, fully integrated healthcare providers. It has one of the largest network of hospitals and healthcare services in the region with 15 hospitals in Singapore, Brunei, India and Malaysia. It also has an ambulatory surgical center in China and an aesthetics clinic in Vietnam. PRICE PERFORMANCE Historical Yield Band

P/BV



PREIT is a defensive play, allowing investors to enjoy potential upside from Singapore and Asia’s healthcare sector while limiting downside with minimum guaranteed rental growth structure pegged to 1% above the preceding year’s CPI.

The other strategy to PREIT’s growth is expansion via acquisitions. This had started with the recent purchase of a pharmaceutical products distribution facility in Japan for S$35m. The group has obtained a BBB+ credit rating, which would enable them to gear up to 60% vs the present 4%. Based on a targeted gearing of 45%, this gives them a debt headroom of $1.1b.

Prospects for PREIT remain positive with supportive industry fundamentals ranging from an aging population, increasing life expectancy, growing affluence and Singapore’s drive to promote medical tourism. Downside is protected by a rental structure that is pegged to adjusted hospital revenue. PREIT is trading at 5.2 -5.4% FY08 and FY09 yield. Our price target of $1.50 offers a potential upside of 19%.

1.00

1.05

1.10

1.15

1.20

1.25

1.30

1.35

1.40

Aug-07 Nov-07 Feb-08 M ay-08 Aug-08 Nov-08

S$Ceiling 5%

M id pt 5.5%

PREITT Floor 6%

0.8

0.9

1.0

1.1

1.2

Aug-07 Oct -07 Dec-07 Feb-08 Apr -08

(x)

PREIT FSSTI FSTRE

0.8

0.82

0.84

0.86

0.88

0.9

0.92

0.94

Aug-07 Oct-07 Dec-07 Feb-08 Apr-08

(%)

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Aug-07 Oct-07 Dec-07 Feb-08 Apr-08

%

PREIT M As 10 year Govt Bond

Corporate Profile

Parkway Life REIT

Page 65


Portfolio Details

Property Hospital

No of Operational

BedsValuation (S$m)

Valuation/ bed (S$m)

Mt Elizabeth Hospital 339 400.1 1.18

Medical centres 30 171.6 5.7

Gleneagles Hospital 280 200.5 0.72

Medical centres 10 24.8 2.48

Eastshore Hospital and 154 34.5 4.46

Medical centres 28 - -

DPU Performance ( since listing) Rent Contribution by Property

Parkway’s Singapore Hospital Revenue Growth Debt Maturity Profile

S$m

Statement of Total Return (S$ m) Rates & Ratio FY Dec 2007A 2008F 2009F FY Dec 2007A 2008F 2009F

Gross revenue 17 48 51 Net Prop Inc Margins (%) 93.6 94.3 94.6Property expenses (1) (3) (3) Net Income Margins (%) 75.1 80.9 79.3Net Property Income 16 45 48 Dist to revenue (%) 80.7 83.6 81.5Other Operating expenses (2) (6) (6) Managers & Trustee’s fees 13.1 12.0 11.9Other Non Opg (Exp)/Inc 0 0 0 to sales (%) Net Interest (Exp)/Inc (1) (1) (2) ROAE (%) 1.5 4.7 4.9Exceptional Gain/(Loss) 0 0 0 ROA (%) 1.5 4.4 4.5Net Income 13 38 40 ROCE (%) 1.6 4.6 4.8Tax 0 0 0 Int. Cover (x) 15.0 57.1 24.3Minority Interest 0 0 0 Current Ratio (x) 0.7 0.3 0.3Preference Dividend 0 0 0 Quick ratio (x) 0.7 0.3 0.3Net Income After Tax 13 38 40 Aggregate Leverage (%) 4.0 7.9 7.9Total Return 69 38 40 Operating CFPS (S cts) 2.3 6.4 6.7Non-tax deductible Items (55) 1 1 Free CFPS (S cts) (79.0) 1.0 6.7Net Inc available for Dist. 14 40 41 NAV per shr (S cts) 136.3 135.9 135.5 DPU (S cts) 2.3 6.6 6.8 Distribution Yield (%) 1.8 5.2 5.4 Revenue Gth (%) N/A 181.1 6.6

N Property Inc Gth (%) N/A 183.5 6.9 Net Inc Gth (%) N/A 202.6 4.5


Eastshore5%Gleneagles

32%

Mt Elizabeth63%0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

07A 08F 09F

S cts

05

101520

2530

3540

2008 2009 2010 2011 >2012

S$m

0

10

20

30

40

50

60

07A 08F 09F92%

93%

94%

95%

96%

Gross Revenue LHS NPI M argins RHS

S$m

Corporate Profile

Suntec REIT

Page 66


Bloomberg: SUN SP | Reuters: SUNT.SI

BUY S$1.61 FSSTI: 3,228.95

Price Target : 12 month S$1.98 Description Suntec REIT invests primarily in income producing commercial and retail real estate assets. Its initial portfolio consists of the retail and office portion of Suntec City located along the CBD. Since its listing, Suntec has added 3 more assets to its portfolio, bringing its combined appraised value to S$5.7bn as at 31st Dec 07. Manager & Strategy Suntec REIT is managed by ARA Asset Management Limited, a listed firm on the SGX and an affiliate of Cheung Kong Group. The manager aims to grow and deliver stable distributions through active asset management to maximize property yields and to source for accretive acquisition opportunities, leveraging on the good relationship it has established with Cheung Kong.


P/BV


0.0

0.5

1.0

1.5

2.0

2.5

3.0

Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08Suntec FSSTI Index FTSRE Real Estate

(x)


Suntec REIT offers investors exposure to the local office and retail scene through its portfolio of 1.9msf NLA of retail and commercial space. DPU growth over the next 2 years are expected to be derived from office lease reversions as well as higher retail rents post its AEI at Suntec City. The group is scheduled to renew an estimated 53% of NLA over FY09-10 and the significant spreads between new and expiring contracts will provide strong earnings uplift. In addition, plans to enhance Park Mall and add a further 67,000sf GFA (from the purchase of adjacent two state land sites) could provide another earnings growth driver in the medium term. Refinancing concerns are largely allayed with the recent $270m CB issue (with greenshoe option). The remaining $400m short-term debt to be refinanced by Oct 08, are also being progressively addressed. We have a BUY rating on Suntec REIT with a target price of S$1.98.

0.50.70.91.11.31.51.71.92.12.32.5

Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08

Ceiling 4%

SUN

Floor 6.5%

M id 5%

S$

0.01.02.03.04.05.06.07.08.0

Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08

Suntec REIT M AS 10 year Govt Bond

(%)

0.4

0.5

0.6

0.7

0.8

0.9

1.0

1.1

1.2

Dec-05 Apr-06 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07

(x)

Corporate Profile

Suntec REIT

Page 67


Portfolio Details (Top 10 properties by Value)

0 50

100 150 200 250 300

05 06 07 08F 09F72

72

73

73

74

74

75

75

76

76

Gross Revenues LHS NPI Margin RHS

S$m %

NLA

Valuation S$'m

Val psf

% Portfolio

Suntec City 2,070,854 4,118 1,989 75%

ORQ 445,192 942 2,115 17%

Park Mall 270,191 313 1,157 6%

Chijmes 79,977 139 1,738 3%

2,866,214 5,511

DPU Performance ( since listing) Top 5 Tenant – Office / Retail

0.0 2.0 4.0 6.0 8.0

10.0 12.0

05 06 07 08F 09F

S cts


Statement of Total Return (S$ m) Rates & RatioFY Sep 2006A 2007A 2008F 2009F FY Sep 2006A 2007A 2008F 2009F

Gross revenue 171 190 241 271 Net Prop Inc Margins (%) 73.4 73.9 74.5 75.4Property expenses (46) (50) (62) (67) Net Income Margins (%) 46.2 46.1 52.6 54.6Net Property Income 126 141 180 204 Dist to revenue (%) 55.4 60.7 62.3 63.6Other Operating expenses (16) (20) (25) (26) Managers & Trustee’s fees 9.6 10.3 10.5 9.7Other Non Opg (Exp)/Inc 0 0 0 0 to sales (%) Net Interest (Exp)/Inc (30) (33) (39) (40) ROAE (%) 4.2 3.0 3.3 3.6Exceptional Gain/(Loss) 0 0 0 0 ROA (%) 2.8 2.2 2.5 2.6Net Income 79 88 127 148 ROCE (%) 4.0 3.1 3.1 3.2Tax 0 0 0 0 Int. Cover (x) 3.6 3.6 3.9 4.4Minority Interest 0 0 0 0 Current Ratio (x) 0.2 0.2 0.7 0.7Preference Dividend 0 0 0 0 Quick ratio (x) 0.2 0.2 0.7 0.7Net Income After Tax 79 88 127 148 Aggregate Leverage (%) 32.1 20.1 26.9 27.5Total Return 645 1,379 127 148 Operating CFPS (S cts) 12.4 8.8 7.4 8.0Non-tax deductible Items 16 28 23 24 Free CFPS (S cts) 10.3 10.2 (60.2) 8.0Net Inc available for Dist. 95 115 150 172




0.00%

5.00%

10.00%

15.00%

20.00%

UBS IDA Lehman Bro thers Oracle Corp Yahoo

0.00%

5.00%

10.00%

15.00%

Carefour Rock RSH Suntec Food &Leisure

Lei Garden

0%

10%

20%

30%

40%

50%

FY08 FY09 FY10 FY11 FY12>

Office Retail

0

100

200

300

400

500

600

700

800

FY08 FY09 FY10 FY11 > FY12

S$m

Industry Focus

Page 68



Industry Focus

Page 69

Hong Kong


Corporate Profile

Champion REIT

Page 70


Bloomberg: 2778 HK | Reuters: 2778.HK

BUY HK$3.97 HSI : 25,610 Price Target: 12-month HK$5.19 Description Champion REIT is a single-asset REIT with direct exposure to the buoyant office market in Central. It owns 1.21m sf of gross rental area of Citibank Plaza, a Grade A office building in Central . Manager & Strategy The REIT is managed by Eagle Asset Management (CP) Limited, a wholly owned subsidiary of Great Eagle Group. The manager aims to grow and deliver stable distributions through active asset management to maximize property yields and to source for accretive acquisition opportunities, leveraging on the good relationship it has established with its sponsor. Sponsor Great Eagle develops, invests in and manages office, retail, residential and hotel properties in Hong Kong, North America and Europe. Its key assets include nine hotels (Hong Kong and overseas), Langham Place in Mongkok and 48.5% stake in Champion REIT.


Price/BV



Champion is a beneficiary of rising office rents. In FY07, an estimated 50% of its leases was marked to market. Average passing rents surged 74% from Jan 07 to HK67.06psf in Dec 07. Champion’s proposed acquisition of Langham Place Mall, Office Tower and Carpark in Mongkok from Great Eagle for HK$12.5b is viewed positively. Not only will it reduce the former’s reliance on Citibank Plaza for income and tenant diversity, it will also allow Champion to gain exposure to the thriving retail sector. In addition to gaining size to become the 6th largest REIT, Champion will remove financial engineering from its income structure, which should facilitate its future new acquisitions in HK and Asia. The stock is currently trading at 0.5x P/BV and offers an 8.6% FY08 yield. Our DDM-based price target of HK$5.19, translates to a 31% upside.

0%

2%

4%

6%

8%

10%

May-06 Oct-06 Mar-07 Aug-07 Jan-08

Champion HK 30 year govt bond

2.5

4.5

6.5

8.5

May-06 Oct-06 Mar-07 Aug-07 Jan-08 Jun-08 Nov-08

HK$

Ceiling 5%

M id 7 %

Floor 9%Champion

(x)

0.5

0.55

0.6

0.65

0.7

0.75

0.8

M ay-06 O ct-06 M ar-07 Aug-07 Jan-08

(x)

0.70 0.75 0.80 0.85 0.90 0.95 1.00 1.05 1.10 1.15 1.20


Champion HSI Index

Corporate Profile

Champion REIT

Page 71


Portfolio Details:

Asset Value GRA (sf) Value (HK$psf)

Citibank Plaza HK$ 28.3bn

Total 1.213 msf 1.17msf (office), 43000sf (retail) 23366

DPU Performance ( since listing) Debt Maturity Profile Sources: Company, DBS Vickers

Statement of Total Return (HK$ m) Rates & RatioFY Dec 2006A 2007A 2008F 2009F FY Dec 2006A 2007A 2008F 2009F

Gross revenue 340 839 1,171 1,308 Net Prop Inc Margins (%) 76.8 81.1 83.9 84.2Property expenses (79) (158) (188) (207) Net Income Margins (%) 213.7 386.0 35.2 35.6Net Property Income 261 680 983 1,101 Dist to revenue (%) 75.7 79.8 73.8 69.5Other Operating expenses (22) (90) (130) (144) Managers & Trustee’s fees 6.4 10.8 11.1 11.0Other Non Opg (Exp)/Inc 0 0 0 0 to sales (%) Net Interest (Exp)/Inc (184) (355) (378) (396) ROAE (%) 4.4 17.9 2.0 2.2Exceptional Gain/(Loss) 827 3,696 0 0 ROA (%) 2.8 11.7 1.3 1.5Net Income 882 3,931 476 561 ROCE (%) 0.9 2.0 2.7 2.8Tax (156) (693) (63) (95) Int. Cover (x) 1.3 1.7 2.3 2.4Minority Interest 0 0 0 0 Current Ratio (x) 0.9 0.4 0.4 0.5Preference Dividend 0 0 0 0 Quick ratio (x) 0.9 0.4 0.4 0.5Net Income After Tax 726 3,238 412 466 Aggregate Leverage (%) 31.4 26.8 25.3 24.9Total Return 726 3,238 412 466 Operating CFPS (HK cts) 8.2 17.3 30.5 32.0Non-tax deductible Items (469) (2,568) 453 443 Free CFPS (HK cts) (407.2) (6.0) 30.7 32.3Net Inc available for Dist. 257 670 865 908 NAV per shr (HK$) 6.03 6.98 7.34 7.41 DPU (HK$) 0.20 0.34 0.34 0.32 Distribution Yield (%) 8.3 8.6 8.6 8.0 Revenue Gth (%) N/A 147.1 39.6 11.6

N Property Inc Gth (%) N/A 160.8 44.5 12.0 Net Inc Gth (%) N/A 346.1 (87.3) 13.0


1,000

3,000

5,000

7,000

9,000

2008 2009 2010

HK$m

HK$m

0 200 400 600 800

1000 1200 1400

2006 2007 2008f 2009f72

74

76

78

80

82

84

86

Revenue (HK$)

NPI margin (%)

HK$

0

0.1

0.2

0.3

0.4

FY06 FY07 FY08F FY09F

Corporate Profile

Fortune REIT

Page 72


Bloomberg: FRT SP | Reuters: FORT.SI

BUY HK$4.98 HSI : 25,610

Price Target: 12-month HK$6.83 Description Fortune REIT has an initial portfolio of five suburban shopping malls in Hong Kong when it was listed in Singapore in August 2003. In June 2005, it acquired six retail properties for HK$3.4bn, doubling its asset size. Currently, its eleven suburban malls has total rentable area of 1.7m sf with appraised valuation of HK$9.7bn at Dec 07. Manager & Strategy The REIT is managed by ARA Asset Management (Singapore) Limited, a a member of Singapore-listed ARA Asset Management.The manager aims to provide stable distributions with long-term growth potential through implementing asset management strategies, making yield-accretive acquisition opportunities and optimizing capital structure. Sponsor Cheung Kong (CK) is one of the largest developers in Hong Kong and holds 49.9% stake in Hutchison Whampoa (HW). CK holds investment properties, including shopping malls, directly or indirectly through HW.


Price/BV



Fortune REIT enjoyed a healthy rental reversion of 13.9% upon lease renewal in 1Q08. However, due to more down time incurred in association with progressive repositioning of tenant mix at The Metropolis Mall and Jubilee Court Shopping Mall, net property income fell marginally by1.8% y-o-y in 1Q08. Portfolio occupancy stood at 90.7% at Mar 08 but committed occupancy reached 94.2% Fortune REIT completed the second phase of asset enhancement works at The Waldorf Garden property in Mar 08, with strong leasing commitment. Over 90% of enhanced area has been committed with new rents about 60% higher than the previous ones. Fortune REIT also plans new asset enhancement initiatives at City One Shatin property and Smartland to optimize rental returns. Fortune offers high distribution yield of 7.2% and 37% to its price target of HK$6.83. Maintain Buy

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Jan-04 Jun-04 Nov-04 Apr-05 Sep-05 Feb-06 Jul-06 Dec-06 May-07 Oct-07

Fortune REIT HKD 30 year Soverign Bond

HK$

4

5

6

7

8

Jan-04 Jun-04 Nov-04 Apr-05 Sep-05 Feb-06 Jul-06 Dec-06 May-07 Oct-07

Ceiling 5%

Mid 5%

Flo o r 7%

Fo r t un e

(x)

1

1.1

1.2

1.3

1.4

1.5

1.6

1.7

1.8

1.9

Aug-05 Dec-05 Apr-06 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08

Fortune Reit HSI

(x)

Corporate Profile

Fortune REIT

Page 73


Portfolio Details:

DPU Performance ( since listing) Portfolio by Asset Type

Food & Beverages 27%Services & Education 26%Banking & Real Estate 14%Supermarkets 9%Fashion & Shoes 6%Gits & Specialty Shops 4%Others 14%


Statement of Total Return (HK$m) Rates & RatioFY Dec 2006A 2007A 2008F 2009F FY Dec 2006A 2007A 2008F 2009F

Gross revenue 614 615 644 695 Net Prop Inc Margins (%) 73.5 75.5 76.1 74.3Property expenses (176) (165) (169) (194) Net Income Margins (%) 152.9 114.5 40.8 40.4Net Property Income 438 450 476 501 Dist to revenue (%) 45.0 46.3 45.6 42.4Other Operating expenses 0 0 0 0 Managers & Trustee’s fees 6.5 6.8 6.8 6.6Other Non Opg (Exp)/Inc (49) (42) (45) (46) to sales (%) Net Interest (Exp)/Inc (100) (105) (104) (106) ROAE (%) 14.4 9.9 3.5 3.6Exceptional Gain/(Loss) 710 461 0 0 ROA (%) 10.2 7.2 2.6 2.7Net Income 998 764 327 349 ROCE (%) 4.5 4.2 3.7 3.8Tax (59) (60) (64) (68) Int. Cover (x) 4.1 4.0 4.3 4.4Minority Interest 0 0 0 0 Current Ratio (x) 1.4 1.4 1.3 1.3Preference Dividend 0 0 0 0 Quick ratio (x) 1.4 1.4 1.3 1.3Net Income After Tax 939 704 263 281 Aggregate Leverage (%) 25.3 24.1 23.2 22.5Total Return 939 704 263 281 Operating CFPS (HK cts) 53.7 54.7 56.9 60.0Non-tax deductible Items (663) (419) 31 14 Free CFPS (HK cts) 51.1 48.3 49.4 52.0Net Inc available for Dist. 277 285 294 295

NAV per shr (HK$) 8.56 9.01 9.39 9.82 DPU (HK$) 0.34 0.35 0.36 0.36 Distribution Yield (%) 6.9 7.1 7.2 7.2Revenue Gth (%) 35.6 0.1 4.8 7.9 N Property Inc Gth (%) 35.4 2.9 5.7 5.4 Net Inc Gth (%) (17.1) (25.1) (62.7) 6.9


560

580

600

620

640

660

680

700

720

2006A 2007A 2008F 2009F

HKD'm

70%

71%

71%

72%

72%

73%

73%

74%

74%%

Gross Revenues LHS Net Property Margins RHS

NLA sqfValuation

HK$'m Val per sqf % portfolio

Cityone Shatin Property 414,469 3,450 8,324 36%Ma On Shan Plaza 310,084 1,900 6,127 20%The Metropolis Mall 332,168 1,830 5,509 19%Waldorf Garden Property 80,842 768 9,500 8%Smartland 123,544 434 3,513 4%Jubilee Court Shopping Centre 170,616 322 1,887 3%Tsing Yi Square Property 78,836 323 4,097 3%The Household Center 91,779 326 3,552 3%Centre de Laguna Property 43,000 188 4,372 2%

Lido Garden Property 9,836 110 11,183 1%Rhine Garden Property 14,604 62 4,245 1%

1,669,778 9,713

0%

5%

10%

15%

20%

25%

30%

35%

40%

FY2008 FY2009 FY2010 FY2011

HK$m

0

100

200

300

400

500

2008 2009 2010 2011

H K $

3 2 3 3 3 4 3 5 3 6 3 7

F Y 0 4 F Y 0 5 F Y 0 6 F Y 0 7 F Y 0 8 F F Y 0 9 F

Corporate Profile

Prosperity REIT

Page 74


Bloomberg: 808 HK | Reuters: 0808.HK

BUY HK1.59 HSI : 25,610

Price Target: 12-month HK$1.80 Description Prosperity REIT is the first private sector REIT listed on the Stock Exchange of Hong Kong (SEHK) in December 2005. It owns seven office, industrial/office and industrial properties throughout Hong Kong, totalling 1.22m sf of gross rental area. Manager & Strategy The REIT is managed by ARA Asset Management (Prosperity) Limited, a member of Singapore-listed ARA Asset Management. The manager aims to provide stable distributions with long-term growth potential through implementing asset management strategies, making yield-accretive acquisition opportunities and optimizing capital structure. Sponsor Cheung Kong (CK) is one of the largest developers in Hong Kong and holds 49.9% stake in Hutchison Whampoa (HW). CK holds office and industrial properties for rental purpose directly or indirectly through HW. PRICE PERFORMANCE Historical Yield Band

Price/BV



Prosperity REIT’s net property income grew 15.1% to HK$193m in FY07, thanks to positive rental reversion and effective cost control. The rental reversion averaged 18.2%, with average effective unit rents rising 11.7% y-o-y to HK$13.38psf. Cost-to-revenue ratio improved to 21.2% from FY06’s 22.8%. But net property income growth was partially offset by higher cash finance cost due to its interest rate swap’s step-up structure. Overall, Prosperity REIT’s distribution income grew 9.4% y-o-y to HK$166m. Portfolio occupancy edged up to 98.4% in Dec 07 from 97% in Jun 07. At end Dec 07, Prosperity REIT’s gearing stood at 33.4%. Our DDM-based target price stands at HK$1.80, which suggests a total return of 22%. Hence we re-iterate our BUY recommendation on the counter.

0%

2%

4%

6%

8%

10%


Champion HK 30 year govt bond

2.5

4.5

6.5

8.5

May-06 Oct-06 Mar-07 Aug-07 Jan-08 Jun-08 Nov-08

HK$

Ceiling 5%

M id 7 %

Floor 9%Champion

(x)

0.5

0.55

0.6

0.65

0.7

0.75

0.8


(x)

0.70 0.75 0.80 0.85 0.90 0.95 1.00 1.05 1.10 1.15 1.20


Champion HSI Index

Corporate Profile

Prosperity REIT

Page 75


Portfolio Details:

Property GRA (sf)

Valuation (HK$m)

Value (HK$psf)

Metropolis Tower 271418 1970 7258

Prosperity Millenia Plaza 217955 1080 4955

Harbourfront Landmark 77021 350 4544

Modern Warehouse 240000 609 2538

Trendy Centre 173764 568 3269

Prosperity Centre 149253 482 3229

New Treasure 86168 166 1926

DPU Performance ( since listing) Debt Maturity Profile

0.11

0.12

0.13

0.14

06 07 08F 09F

HK$

Source: Company, DBS Vickers

Statement of Total Return (HK m) Rates & RatioFY Dec 2006A 2007A 2008F 2009F FY Dec 2006A 2007A 2008F 2009F

Gross revenue 217 245 257 267 Net Prop Inc Margins (%) 77.2 78.8 79.4 79.7Property expenses (50) (52) (53) (54) Net Income Margins (%) 143.1 133.7 32.0 31.9Net Property Income 168 193 204 213 Dist to revenue (%) 76.4 67.8 66.8 59.4Other Operating expenses (35) (36) (39) (40) Managers & Trustee’s fees 16.3 14.9 15.1 14.9Other Non Opg (Exp)/Inc 0 0 0 0 to sales (%) Net Interest (Exp)/Inc (80) (85) (64) (64) ROAE (%) 10.5 10.7 2.7 2.8Exceptional Gain/(Loss) 316 310 0 0 ROA (%) 6.1 6.2 1.6 1.6Net Income 368 381 101 108 ROCE (%) 2.4 2.8 2.8 2.8Tax (57) (54) (19) (23) Int. Cover (x) 1.7 1.8 2.6 2.7Minority Interest 0 0 0 0 Current Ratio (x) 0.3 0.1 0.2 0.1Preference Dividend 0 0 0 0 Quick ratio (x) 0.3 0.1 0.2 0.1Net Income After Tax 311 327 82 85 Aggregate Leverage (%) 35.1 33.4 34.3 33.4Total Return 311 327 82 85 Operating CFPS (HK cts) 12.4 14.4 15.1 15.5Non-tax deductible Items (159) (161) 89 74 Free CFPS (HK cts) 16.1 12.1 15.1 15.5Net Inc available for Dist. 152 166 172 159 NAV per shr (HK$) 2.35 2.46 2.33 2.36 DPU (HK$) 0.12 0.13 0.13 0.12 Distribution Yield (%) 7.6 8.2 8.4 7.6 Revenue Gth (%) N/A 12.7 5.0 3.9

N Property Inc Gth (%) N/A 15.1 5.8 4.2 Net Inc Gth (%) N/A 5.3 (74.9) 3.4


0

400

800

1200

1600

2000

2008 2009 2010 >2010

HK$m

0 50

100 150 200 250 300

2006 2007 2008f 2009f76

77

78

79

80

Revenue (HK$m) LHS NPI margin (%) RHS

(HK$m)

Industry Focus

Page 76



Industry Focus

Page 77

Thailand


Corporate Profile

CPN Retail Growth Property Fund

Page 78


Bloomberg: CPNRF TB | Reuters: CPMRF.BK

BUY Bt10.5 SET: 848.71

Price Target : 12-month Bt12 Description CPN Retail Growth Property Fund invests in retail assets located in Thailand. Fund Manager The REIT is managed by TMB Asset Management Company Limited. The manager aims to grow and deliver stable distributions through active asset management to maximize yields and the fund NAV. Property Manager Central Pattana Public Company Limited ("CPN") has experienced over 25 years of success in developing and managing its properties and is one of the largest and most sophisticated retail property developers in Thailand.


Price/BV



CPNRF offers an attractive value proposition with a generous dividend yield of 8.0%. Our target price of Bt12 offers a potential upside of 14.3% As the largest listed property fund, CPNRF is likely to be a key beneficiary of the proposed relaxation in rules for property funds. Plans to acquire Central Plaza Pinklao from parent CPN, earlier postponed, are now back on track after the BOT recently lifted the 30% capital control. The Fund is considering three investment alternatives to acquire (i) Central Pinklao, (ii) Central Pinklao + Central Chiangmai, and (iii) Central Pinklao + Central Chiangmai + Central Phuket (owned by Central Group, not CPN). Final conclusion has yet to be reached, probably soon and assets are to be injected into the fund by 3Q08. We also like CPNRF for its organic growth angle coming from rental reversions. In addition to rising rents, asset enhancement activities implemented at Central Rama 2 and Central Rama 3 should expand leasable area and improve rates.

0%

2%

4%

6%

8%

10%

Aug-05 Dec-05 Apr-06 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07 Apr-08

CPN Retail Grow th PF Thailand Bond rate

Bt

8 9

10 11 12 13 14 15

Aug-05 Dec-05 Apr-06 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07 Apr-08 Aug-08 Dec-08

Mid 6%

Floo r 9%

Mid 7%

CPNRF

(x)

0.70

0.80

0.90

1.00

1.10

1.20

Aug-05Nov-05 Feb-06May-06Aug-06 Nov-06 Feb-07 May-07 Aug-07Nov-07 Feb -08

(x)

0.8 0.9

1 1.1 1.2 1.3 1.4

Aug-05 Jan-06 Jun-06 Nov-06 Apr-07 Sep-07 Feb-08 CPNRF SET Index

Corporate Profile

CPN Retail Growth Property Fund

Page 79


Portfolio Details:

0200400600800

100012001400

05 06 07 08f 09f86%

88%

90%

92%

Revenue (Btm) NPI Margins

(Btm)

Prortfolio Lease Expiry Portfolio by Trade Sector

Statement of Total Return (Bt m) Rates & RatioFY Dec 2006A 2007A 2008F 2009F FY Dec 2006A 2007A 2008F 2009F

Gross revenue 1,120 1,186 1,261 1,301 Net Prop Inc Margins (%) 88.5 88.4 91.1 91.1Property expenses (128) (138) (112) (116) Net Income Margins (%) 75.9 75.6 73.8 76.2Net Property Income 992 1,048 1,149 1,185 Dist to revenue (%) 76.1 75.7 72.3 72.4Interest and Other Income 81 85 3 3 Managers & Trustee’s fees Fund Manager Fees & (21) (21) (27) (27) to sales (%) 15.5 15.8 15.3 15.1Property Manager's Fees (153) (166) (166) (170) ROAE (%) 7.3 7.7 8.3 8.5Amortization Expenses (49) (49) (28) 0 ROA (%) 7.3 7.6 8.0 8.4Net Investment Income 850 897 931 991 ROCE (%) 7.7 8.0 8.3 8.8Asset revaluation loss 55 61 0 0 Int. Cover (x) Cash Cash Cash CashNet Income 905 958 931 991 Current Ratio (x) 1.8 1.9 1.8 1.9Asset revaluation loss 55 61 0 0 Quick ratio (x) 1.8 1.9 1.8 1.9Distributable Income 899 946 959 991 Operating CFPS (S cts) 0.9 0.9 0.8 0.9Dividend pay-out ratio 95% 95% 95% 95% Free CFPS (S cts) 0.6 0.8 0.8 0.9Dividends 853 898 911 942 NAV per shr (Bt) 10.18 10.25 10.27 10.32 DPU (Bt) 0.78 0.82 0.84 0.86 Distribution Yield (%) 7.4 7.84 7.95 8.22 Revenue Gth (%) n.m. 5.88 6.31 3.13

N Property Inc Gth (%) n.m. 5.65 9.61 3.15 Net Invest. Inc Gth (%) n.m. 5.52 3.78 6.49


Dept Store20%

Electronics, IT16%

Fashion18%

Vacant3%

Food & Beverage11%

Entertainment16%

Others16%

0%

5%

10%

15%

20%

25%

30%

35%

2008 2009 2010 20011-2024 2025

Rama II Rama III Portfolio

Valuation (TH NLA(sf) Value (THBpsf) Occupancy

Central Rama II 5,9391002720 (93155sm)

5932 (63754/sm) 99%

Central Plaza Ratchada-Rama III 4,902

422099 (39214sm)

11613 (125002/sm) 92%

Corporate Profile

Samui Airport Property Fund

Page 80


Bloomberg: SPF TB | Reuters: SPF.BK

BUY Bt9.05 SET: 848.71

Price Target : 12-month Bt11.83 Description Samui Airport Property Fund (SPF) is a Thailand Property Fund for Public Offering (PFPO - similar to REIT). It was set up in late Nov 2006 with an initial fund size of Bt9.5bn to acquire 30-year leasehold rights to Samui Airport. Manager & Strategy The REIT is managed by SCI Asset Management. The manager aims to grow and deliver stable distributions through active asset management to maximize yields and to source for accretive acquisition opportunities.


Price/BV



SPF is a value play, trading at a 23% discount to its NAV of THB11.83 and offers an attractive dividend yield of 9.9%. Our DCF-backed price target of THB11.83, premised on a conservative 8% hike in passenger volume growth in FY08, offers potential upside of 31%. Prospects for SPF have improved given the additional flights from Thai Airways International and better tourism outlook. Thai Airways started its twice-daily service to Samui Airport since 15 Feb 2008, which boosted passenger and flight traffic sharply. 1Q08 passenger number growth came in at an impressive 11.4% yoy compare to a 1.3% decline for the whole of 2007. The key risk is a drop in domestic and international tourists in Thailand and on Samui Island. SPF’s revenue is dependent on the number of departing passengers from and flights to Samui Airport. If the actual number differs from our assumptions, SPF’s yield may be affected. But note that SPF has a guarantee of minimum revenue of 6% of the Fund size from Bangkok Airways, the Property Manager. This suggests an estimated guaranteed dividend yield at about 6% at current price, given that all airport maintenance and operating expenses are borne by Bangkok Airways, and SPF has to pay only fund administration expenses amounting to Bt30-40m annually.

0%

2%

4%

6%

8%

10%

12%

Nov-06 Feb-07 May-07 Aug-07 Nov-07 Feb-08

SPF Thai Govt Fund

Bt

8 8.5

9 9.5 10

10.5

Nov-06 Feb-07 May-07 Aug-07 Nov-07 Feb-08 May-08 Aug-08 Nov-08

Flo o r 11%

Mid 10%

SPF

Cei lin g 9%

(x)

0.5

0.6

0.7

0.8

0.9

1

1.1

No v-06 Feb -07 May-07 Au g -07 No v-07 Feb -08

(x)

0.8 0.9

1 1.1 1.2 1.3 1.4

Nov-06 Feb-07 May-07 Aug-07 Nov-07 Feb-08

Samui Airport Property Fund SET Index

Corporate Profile

Samui Airport Property Fund

Page 81


Portfolio Details:

Assets:

Leased Assets I) The Leased Land, 719,935 sqm

ii) 45 x 2,060 meter runway

iii) Parking Apron ( 2 125 x 150m)

iv) Passenger terminals (1,939sqm)

v) New terminals (U/C) size 7,905 sqm

Lessor Bangkok Airways Company Limited (for 30 yrs ending Nov 2036)

Sub lessee

Bangkok Airways Company Limited (for 3 yrs, with an option to renew for9 terms of 3 years each)

Investment in properties 10960THBm

DPU Performance ( since listing) SPF: Monthly Passenger Number and YoY Growth

00.1

0.20.30.40.5

0.60.70.8

0.91


THB

57,000

60,000

63,000

66,000

69,000

72,000

75,000

78,000

81,000

Jan Feb Mar0%

2%

4%

6%

8%

10%

12%

14%

16%

2008 2007 y-o-y (RHS) Statement of Total Return (Bt m) Rates & RatioFY Dec 2006A 2007A 2008F 2009F FY Dec 2006A 2007A 2008F 2009F

Turnover 81 828 884 927 Net Invest Inc Margins (%) 88.7 88.5 89.3 90.8Interest income 1 9 9 10 Dist to revenue (%) 0.0 104.8 95.6 95.7 Total revenue 82 837 893 937 Managers & Trustee's fees 4.4 1.0 1.1 1.0Fund's admin expenses (4) (38) (39) (40) to sales (%) Amortization expense (6) (66) (65) (55) ROAE (%) 0.7 6.5 7.3 8.1 Total expenses (10) (104) (104) (96) ROA (%) 0.7 6.5 7.2 8.0Net investment income 72 733 789 841 ROCE (%) 0.7 6.5 7.3 8.1Asset revaluation loss (2) 1,661 (378) (378) Int. Cover (x) Cash Cash Cash CashNet income 69 2,394 411 463 Current Ratio (x) 1.55 3.43 4.21 4.62Amortization expense 6 66 65 55 Quick ratio (x) 1.55 3.43 4.21 4.62Asset revaluation loss 2 (1,661) 378 378 Operating CFPS (Bt) 0% 0% 0% 0%Distributable income 78 799 854 897 Free CFPS (Bt) (9.80) 0.74 0.90 0.95Div. Payout 0% 110% 100% 100% Distribution 0 877 854 897 NAV per shr (Bt) 10.07 11.86 11.43 10.98 DPU (Bt) 0.00 0.92* 0.90 0.94Distribution Yield (%) 0.0 10.20 9.93 10.43Revenue Gth (%) n.m. n.m. 6.70 4.97

Net Invest Inc Gth (%) n.m. n.m. 7.59 6.68

* For the period of 22 Nov 2006 – 31 Dec 2007


0100200300400500600700800900

1000


THB'm

87%

88%

88%

89%

89%

90%

90%

91%

91%

Gross Revenues NI Margin

Industry Focus

Page 82



Industry Focus

Page 83

Malaysia


Corporate Profile

Axis REIT

Page 84


Bloomberg: AXRB MK | Reuters: AXSR.KL

BUY RM1.77 KLCI : 1,287.15

Target Price: 12-month RM2.60 Description Axis REIT invests primarily in income producing office and industrial real estate assets located in Malaysia. Its portfolio consists of 14 properties with a total appraised value of RM 570m as at 31 Dec 07. Manager & Strategy Axis REIT is managed by Axis Managers Berhad. The manager aims to grow and deliver stable distributions through active asset management to maximize property yields and to source for accretive acquisition opportunities.


Price/BV



Axis REIT offers the twin growth story of organic and acquisition expansion. As an independent REIT, Axis has demonstrated an impressive track record for yield accretive acquisitions. Purchase of 7 properties in 2007 at net yields of 6.3% vs cost of debt of 4-5% will enhance earnings from FY08. Acquisition growth remains strong with properties such as Wisma Academy, Proton Logistic Centre and Toyota Logistic Centre. With a gearing of 48% vs the limit of 50%, it has sufficient debt headroom for new purchases. In addition, organic growth potentials could arise from enhancements of Menara Axis, Crystal Plaza and Infinite Centre. Our DCF-backed price target of RM2.60 translates to an upside of 47% from current price levels. Potential catalysts could come in the form of rising rental income, asset enhancement plans and new acquisitions.

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%


Axis REIT Malaysian Bond Yield

RM

1.4 1.5 1.6 1.7 1.8 1.9

2 2.1 2.2 2.3 2.4

Aug-05 Dec-05 Apr-06 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07 Apr-08 Aug-08 Dec-08

Ceiling6%

Mid 7 %

Floo r 8%

Axis

(x)

11.1

1.2

1.3

1.4

1.5

1.6

1.7

1.8

1.9

Aug-05 Dec-05 Apr-06 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07

(x)

0.70 0.90 1.10 1.30 1.50 1.70 1.90 2.10


Axis REIT KLSE Index KLPROP Index

Corporate Profile

Axis REIT

Page 85


Portfolio Details:

DPU Performance ( since listing) Portfolio by Asset Type


Statement of Total Return (RM m) Rates & RatioFY Dec 2006A 2007A 2008F 2009F FY Dec 2006A 2007A 2008F 2009F

Gross revenue 41 42 55 56 Net Prop Inc Margins (%) 81.0 82.6 78.4 78.4Property expenses (8) (7) (12) (12) Net Income Margins (%) 104.9 70.2 65.4 65.6Net Property Income 33 35 43 44 Dist to revenue (%) 65.2 67.6 63.0 63.2Other Operating expenses (3) (6) (7) (7) Managers & Trustee’s fees 8.2 13.2 11.4 11.2Other Non Opg (Exp)/Inc 0 0 0 0 to sales (%) Net Interest (Exp)/Inc (3) 1 0 0 ROAE (%) 15.0 8.7 9.5 9.6Exceptional Gain/(Loss) 17 0 0 0 ROA (%) 11.4 7.1 8.6 8.7Net Income 43 30 36 37 ROCE (%) 8.5 7.5 9.4 9.7Tax 0 (1) 0 0 Int. Cover (x) 9.6 6.1 96.8 107.4Minority Interest 0 0 0 0 Current Ratio (x) 0.0 0.2 0.2 0.4Preference Dividend 0 0 0 0 Quick ratio (x) 0.0 0.2 0.2 0.4Net Income After Tax 43 29 36 37 Aggregate Leverage (%) 21.6 2.0 2.0 2.0Total Return 0 0 0 0 Operating CFPS (sen) 14.3 11.2 14.1 14.4Non-tax deductible Items (16) (1) (2) (2) Free CFPS (sen) (13.1) 10.9 14.1 17.5Net Inc available for Dist. 27 28 34 35

NAV per shr (sen) 142.8 147.5 148.0 148.5 DPU (sen) 13.0 11.0 13.5 13.8 Distribution Yield (%) 7.2 6.2 7.5 7.7 Revenue Gth (%) 197.7 2.0 31.0 1.9 N Property Inc Gth (%) 189.4 4.1 24.4 1.9 Net Inc Gth (%) 328.8 (31.7) 22.0 2.2

Source: Company; DBS Vickers

Office/ Industrial55%

Office22%

Warehouse Retail Facilities

6%

Warehouse/ Logistics

11%

Light Industrial6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

FY2008 FY2009 FY2010 FY2011

Appraised Value (RM'm) NLA (sf) Value (RMpsf) Occupancy Menara Axis 87.7 147686 593.8 100%Crystal Plaza 82.8 203376 407.1 100%Nestle House 41 106000 386.8 100%FCI 13.9 136619 101.7 100%Axis Plaza 30.7 118765 258.5 82%Axis Business Park 97.8 341065 286.7 98%Infinite Centre 35.2 147408 238.8 100%Wisma Kemajuan 45.9 200117 229.4 66%Kayanqan Depot 21.8 163769 133.1 69%Wisma Bintang (C&C) 36 172967 208.1 100%Nestel Office & WH (Shah Alam) 7.5 27554 272.2 100%Axis Shag Alam Distribution Centre 1 18.5 110591 167.3 100%Axis North Port Logistics Center 1 13.6 130000 104.6 100%Giant Hypermarket (Sungei Petani) 38 138000 275.4 100%

570.4

0 2 4 6 8

10 12 14 16

FY05 FY06 FY07 FY08F FY09F

RM sen

0 10 20 30 40 50 60

FY05 FY06 FY07 FY08F FY09F

RM 'm

75%

80%

85%

Gross Revenues LHS NPI Margins RHS

RM ’m

0

5 0

1 0 0

1 5 0

2 0 0

F Y 0 8 > F Y 0 8

Industry Focus

Page 86



Industry Focus

Page 87

ECONOMIC FORECASTS

GDP 2005 2006 2007 2008f 2009f Inflation 2005 2006 2007 2008f 2009f US 3.2 3.3 2.2 2.0 2.6 US 3.2 3.2 2.9 3.5 2.3 Japan 1.9 2.4 2.0 1.5 2.1 Japan -0.3 0.2 0.1 0.8 0.2 Eurozone 1.6 2.9 2.6 2.0 2.2 Eurozone 2.2 2.2 2.1 2.8 2.1 Indonesia 5.7 5.5 6.3 6.3 6.5 Indonesia 10.5 13.3 6.3 10.0 7.0 Malaysia 5.0 5.9 6.3 5.8 6.0 Malaysia 3.1 3.6 2.0 2.8 2.0 Philippines 4.9 5.4 7.3 6.6 6.7 Philippines 7.7 6.3 2.8 5.9 3.1 Singapore 6.9 7.9 7.7 6.0 6.8 Singapore 0.5 1.0 2.1 5.0 2.8 Thailand 4.5 5.1 4.8 5.6 5.2 Thailand 4.5 4.6 2.2 5.0 2.8 China 10.4 11.1 11.5 10.0 9.0 China 1.8 1.5 4.8 5.5 4.5 Hong Kong 7.1 6.8 6.3 5.2 4.7 Hong Kong 1.0 2.0 2.0 3.8 4.0 Taiwan 4.2 4.9 5.7 5.0 5.4 Taiwan 2.3 0.6 1.8 2.5 2.4 Korea 4.2 5.0 4.9 4.6 5.0 Korea 2.8 2.2 2.5 3.7 3.0 India 9.0 9.9 8.7 8.6 8.6 India 4.4 5.4 4.3 6.5 4.9 Interest rates Current 2Q08f 3Q08f 4Q08f 1Q09f USD X rates Current 2Q08f 3Q08f 4Q08f 1Q09f US 2.0 1.75 1.75 1.75 2.25 US - - - - - Japan 0.5 0.5 0.5 0.5 0.75 Japan 104.7 105.0 100.0 95.0 98.0 Eurozone 4.0 4.0 4.0 4.0 4.0 Eurozone 1.55 1.48 1.50 1.54 1.50 Indonesia 8.25 8.5 8.75 8.75 8.75 Indonesia 9242 9300 9000 8700 9000 Malaysia 3.5 3.5 3.5 3.5 3.5 Malaysia 3.23 3.25 3.15 3.00 3.15 Philippines 5.0 5.0 5.0 5.0 5.0 Philippines 42.8 42.5 41.0 39.0 41.0 Singapore na na na na na Singapore 1.37 1.39 1.36 1.33 1.36 Thailand 3.25 3.25 3.25 3.75 4.0 Thailand 32.3 33.0 32.0 30.0 31.0 China 7.5 7.7 8.0 8.0 8.0 China 6.99 6.90 6.70 6.50 6.30 Hong Kong na na na na na Hong Kong 7.80 7.80 7.78 7.75 7.78 Taiwan 3.5 3.6 3.6 3.6 3.6 Taiwan 30.9 31.0 30.5 29.5 30.5 Korea 5.0 5.0 4.75 4.5 4.5 Korea 1047.0 1050.0 1100.0 1075.0 1075.0 India 7.75 8.0 8.25 8.25 8.25 India 42.2 41.5 40.5 39.5 40.5

Global Property Market Trends Luxury Residential Rents Luxury Residential Capital Values % chg qoq % chg yoy US$psf/mth % chg

qoq % chg

yoy Yield (%)

New York Na Na Na New York Na Na Na 5.0 London 7.67 Na -5.0 London 2299.6 -5.0 30.0 4.0 Sydney Na Na Na Sydney Na Na Na 6.0 Hong Kong 5.0 5.0 18.0 Hong Kong 1942.3 8.0 25.0 3.0 Tokyo Na Na Na Tokyo Na Na Na Na Shanghai 2.7 -1.0 -2.0 Shanghai 427.5 2.0 14.0 8.0 Beijing 1.3 -2.0 -11.0 Beijing 267.0 8.0 33.0 6.0 Kuala Lumpur 1.1 0.0 3.0 Kuala Lumpur 174.3 0.0 10.0 8.0 Singapore 4.2 7.0 38.0 Singapore 1902.2 6.0 53.0 3.0 Bangkok 0.9 -2.0 -8.0 Bangkok 225.4 0.0 -1.0 5.0 Prime Office Rents Prime Office Capital Values % chg qoq % chg yoy US$psf/mth % chg

qoq % chg

yoy Yield (%)

New York 38.2 3.0 15.0 New York 10186.7 -2.0 35.0 5.0 London 23.0 8.0 30.0 London 5520.0 -5.0 30.0 5.0 Sydney 4.9 7.8 13.6 Sydney 946.1 9.0 23.0 6.0 Hong Kong 12.3 9.1 31.7 Hong Kong 1907.6 19.0 40.0 8.0 Tokyo 15.0 7.7 20.8 Tokyo 3338.3 2.0 28.0 5.0 Shanghai 3.2 5.0 14.3 Shanghai 507.3 5.0 20.0 8.0 Beijing 3.0 4.8 8.8 Beijing 279.6 2.0 6.0 13.0 Kuala Lumpur 1.5 3.7 12.0 Kuala Lumpur 185.3 1.0 6.0 10.0 Singapore 9.3 8.0 80.0 Singapore 2005.9 0.0 71.0 6.0 Bangkok 2.0 0.0 -0.5 Bangkok 247.5 0.0 2.0 10.0

Source CBRE, JLL, DBSV estimates

GDP Inflation Forecast

US$psf/mth

US$psf/mth


Industry Focus

Page 88

APPENDIX REIT NEWS Singapore Goodman is selling its 40% stake in A-REIT manager as well as a 6.28% stake in the trust itself for $158.16 million or about $1.90 per A-REIT unit. (BT – 13 Mar) MMP REIT has refinanced $220 million of ST loans, $190 million of which are due in May and $30 million in August to allow its strategic review to proceed with flexibility. (BT – 14 Mar) Allco REIT has failed in an attempt to prevent Moody’s from downgrading their stock to “Ba2” from “Ba1”. Moody’s rating cuts was on the back of Allco having S$620m of debt expiring in the current year. (BT – 19 Mar) CCT has option to buy One George St at $1.165bn or $2600psf, based on a guaranteed NPI yield of 4.25%. Hong Kong In Jan 08, GZI REIT proposed to acquire 72.3% stake of Yue Xiu Neo Metropolis Plaza in Guangzhou from GZI In Feb 08, RREEF China Commercial Trust proposed to seek a general mandate from the unitholders to repurchase units on the market In Feb 08, Champion REIT proposed to acquire Langham Place Mall, Office Towers and Carparks in Mongkok from its major shareholder Great Eagle for HK$12.5bn Malaysia Sunway City Bhd is on track to list the country’s first integrated resort REIT in 2008 worth RM3.7bn, but is still undecided between listing in Malaysia or Singapore. Capitaland aims to launch a new Malaysian retail REIT in 2008. It has acquired two retail assets in Malaysia - Gurney Plaza in Penang (RM336.8m) and Mines Shopping Fair in Selangor (RM190.3m). In Jan 08, QCT proposed to acquire three assets for RM94.5m from Quill Land Sdn Bhd - Quill Building 5-IBM (RM43.0m), a five-storey property located in Cyberjaya; Quill Building 8-DHL (RM28.8m), a three-storey property sited at Shah Alam and Quill Building 10-HSBC (RM22.7m), a four-storey property located in Section 13, Petaling Jaya. In Feb 08, AXIS REIT proposed to acquire two leasehold industrial buildings for RM27m. These buildings are located at

Pasir Gudang Industrial Area, which is about 35km away from Johor Bahru city centre. In Apr 08, Axis REIT proposed to acquire two freehold industrial factories for RM27m. The factories are located within the Iskandar Development Region and about 5km to the north of Senai town. Hektar Asset Management Sdn Bhd is keen on more mall acquisitions for its Hektar REIT, following the acquisition of a hotel and a mall in Johor in mid-February. Thailand Thailand’s Securities and Exchange Commission (SEC) recently agreed in principle to some changes related to the placement, allocation, and management of property funds for public offering (PFPO: or REIT) to improve the attractiveness of investing in PFPO in Thailand and at the same time close existing legal loopholes. The resolution has not been enforced yet. The changes cover 7 key areas of which two most important are: (i) foreign limit of 49% for freehold properties, and (ii) allowable gearing level of 10% of NAV. The Bank of Thailand (BoT) lifted the unremunerated reserve requirement (URR) on short-term capital inflows from 3 March 2008. Following the Bank of Thailand’s decision to lift the 30% capital control, CPN Retail Growth Property Fund (CPNRF) has resumed its plan to acquire Central Pinklao (and probably more assets) from Central Pattana (CPN) in 3Q08. UOB Apartment Fund I (UOBAPF) plan to dispose its leasehold interest in Natural Ville Residence, a serviced apartment in Soi Langsuan, return the proceeds to unit-holders and dissolve the fund. It has recently assigned a property consultant to assist in the disposition process. The main reasons for the Fund’s decision to dispose the asset are the extremely low trading liquidity on the Stock Exchange of Thailand (SET) and the unit price (Bt8.20), which is now trading at a deep discount to its NAV at Bt10.74 as of 31 Mar 2008. TMB Asset Management (TMBAM) plans to launch the initial public offering units of Luxury Property Fund (LUXF) from 7-15 May 2008. The fund, with an estimated fund size of Bt1.965bn will invest in “Six Senses Hideaway” project, a freehold luxury 5-star resort on Koh Yaonoi, Pang-nga province. The fund will guarantee dividend yields for the first five years at 6.0% in year 1, 6.5% in year 2, and 7.0% in year 3-5, respectively.


Industry Focus

Page 89

Property News Snippets Singapore URA plans to double the size of Singapore's Marina Bay financial district to 2.82m sm or 2x the size of London's Canary Wharf financial district. (BT – 13 Mar) ARA Asset Management has bought the remaining 53 units at Grange Infinite freehold condo project for almost $400 million or at $2,600-$2,700 psf. SINGAPORE'S retail sales in January rose 7.8% yoy. Retail sales rose just 1.5%, adjusted for inflation. Excluding motor vehicles, retail sales in January were 15.1% higher. The strongest increases were seen in sales of petrol, food and beverages, and at department stores and supermarkets. (BT – 15 Mar) CWT will invest more than $80m in two new integrated logistics hubs at Tanjong Penjuru with 850000sf of warehouse space for the handling of hazardous and chemical goods. SINGAPORE has risen two notches to become the 12th most expensive industrial location in the world. Excluding Japan, Singapore is the most expensive location in Asia, surpassing Hong Kong (23rd), Mumbai (26th) and Taipei (36th). Average net rents are now at $1.70 psf/mth, up 26% yoy last year. Total occupancy cost was US$14.64 psf/yr at end-Dec 2007. URA Property Price Index recorded a 3.7% rise in 1Q08.

Hong Kong In Feb/Mar 08, the launch of Cheung Kong’s Capitol in Tseung Kwan O was well received with all of 2096 units completely pre-sold within a short period of time In May 08, Deutsche Bank agreed to take up 12 floors totaling 420,000sf at SHKP’s Intl Commerce Centre at Kowloon MTR Station and has an option to lease up to 18 floors Industrial enbloc transactions totalled 1.35msf valued at HK$1.98b in 1Q08. Notable transactions include Piazza Industrial Building, sold at HK600m or HK$1470psf and Oriental News Building at HK$525m or HK$1684psf. Total value of retail sales in Feb 08 was estimated at HK$22.8b, up 9.5% yoy. Trade Square in Cheung Sha Wan was sold for HK1.518b or HK$4000psf (excluding car park spaces) in Apr 08. Malaysia In Apr 08, YTL group paid a record RM2,000 per sq ft for a piece of land in Jalan Stonor, and indicated that it intends to make more acquisitions in the Kuala Lumpur city centre. In Mar 08, UOL Group Ltd's freehold luxurious condominium project, Panorama, has seen a take-up rate of 60%.

CIMB Mapletree Management Sdn Bhd, a joint venture between CIMB Group and Mapletree, a leading real estate company in Singapore, is targeting to set up RM4.7b to RM5b property fund early 2009. Property developer Petaling Tin Bhd plans to spend some RM1bn to build luxury villas and a boutique hotel on Karambunai Peninsular, 30km east of Kota Kinabalu in Sabah. Mar 08 Property developer UEM Land Sdn Bhd is in talks with Singapore real estate firms about joint projects in a US$105b (about RM332b) industrial and tourism zone in south Malaysia. Thailand The Thai cabinet recently agreed with the Ministry of Finance’s proposed property-related tax cuts to boost the economy. These include (i) reduction in specific business tax from 3.3% to 0.1%, (ii) reduction in transfer fees from 2% to 0.01%, (iii) reduction in mortgage registration fees from 1% to 0.1%. These measures will be effective for one year from 29 Mar 2008 to 28 Mar 2009. According to the Bank of Thailand, retail sales index surged 12.1% y-o-y in Jan 2008. This is very encouraging considering the 0.4% and 2.1% growth in 2006 and 2007, respectively. The strong retail sales reflected the rebounding consumer confidence after the general election and the new government is in place. With political tension rising again as the three coalition parties are facing the risks of possible dissolution and constitution amendment under way. We believe political development is what investors need to monitor closely as it will have a substantial impact on consumer and business confidence and thus the retail sales number. Suzuki Motor Corporation, a leading car manufacturer has signed an agreement with Hemaraj Land And Development Plc., to purchase land of 412 rai at Hemaraj Eastern Seaboard Industrial Estate or the Detroit of the East II. The land will be used for the construction of Suzuki’s BOI promoted Eco-car manufacturing and CKD kit assembly plant, scheduled to commence operation in 2010. Total value of investment is Bt9.5bn. Amata Corporation (AMATA) has recently signed an agreement to sell 90-rai land at Amata Nakorn Industrial Estate to Mitsubishi Turbocharger Asia (MTA) for the construction of its plant to produce turbocharger for the automotive industry. Golden Tulip Hospitality Group, a Swiss-based hotel and resort management company, is preparing to invest Bt5.05bn in Thailand as part of its plans to spend about Bt25bn in Southeast Asia over the next four years. It hopes to develop 20 hotels in Thailand.

However transaction volumes for new sales fell to 730 units.


Industry Focus

Page 90

Regional REIT Guidelines Singapore Hong Kong Malaysia Thailand History Started in July 2002. Real estate investment trust

structure Started in Dec 2005. Real estate investment trust structure

Started in Aug 2005. Real estate investment trust structure

Started in Sep 2003. Open ended property fund structure

No of REITs/Property Funds 20 7 11 18 Asset Types Retail, Office, Industrial, Hotel, Healthcare, Svcd

Apartments, Residential Retail, Office, Industrial, Hotel Retail, Office, Industrial, Hotel,

Healthcare, Plantations Airport, Svcd Apartments, Retail, Residential, Lifestyle, Industrial, Hotel, Commercial, Dormitory

Regulations on Assets Geographic Restrictions Nil Nil Nil Local assets only Investment Restrictions Min 70% in real estate Partial ownership of assets must >50%

in general Min 75% in real estate Min 75% in real estate

Investment in Property Development and In-development Assets

10% of deposited property value Investment in uncompleted units limited to 10% of NAV, prohibited from investing in vacant land or engaging in property development

Prohibited Prohibited, unless 80% completed

Asset Valuations At least once a year At least once a year At least once every 3 yrs Reviewed once a year, Revalued once every 2 years Asset Holding Period Nil 2-yr holding period Nil 1-yr holding period REIT Management Structure Externally managed Externally and internally managed Externally managed Externally managed Manager licensing requirement

Nil Yes Yes Fund Manager – Yes Property Manager - No

REIT Structure Gearing Max 60% of asset value (with credit rating)

35% (without credit rating) Max 45% of asset value Max 50% of asset value No gearing allowed currently. (likely to be relaxed soon, with

max gearing at 10% of NAV) Dividend Payout Ratio At least 90% At least 90% of after tax income At least 90% At least 90% Foreign Ownership No restrictions No restrictions No restrictions No restrictions currently. (likely to impose 49% foreign

ownership restriction for property funds investing in freehold assets)

Taxation Stamp duty Stamp duty for transfer of properties waived for

5 years from 2002 Transfer of properties subject to stamp duty

Stamp duty for transfer of properties waived

Stamp duty for transfer of properties waived

REIT Taxation Full tax transparency Profit tax on property companies Full tax transparency Full tax transparency Unitholder taxation Local and foreign individuals – tax exempt

Local institutions/corporates – corporate tax rate Non-resident institutional investors – 10% withholding tax for 5 years from 2002

Nil Tax residents taxed at individual tax level. Non-residents subject to withholding tax of 26%

Non-residents exempt from Thai withholding income taxes on dividends and capital gains Dividends are subject to 10% withholding income tax for residents, no tax on capital gains

M&A Guideline M&A activities Singapore Code of Mergers & takeovers

extended to REITs from June 2007. Anyone who acquires 30% or more of a REIT must make a general offer for the remaining units. Anyone who owns 30-50% of a REIT and acquires a further 1% must make a GO for the remaining units.

Nil Nil One third holding limit for any person(s) of the same group, except for the following persons:

- the Govt Pension Fund, Social Security Fund, Provident Fund or Mutual Fund for retail investors

- those persons not subject to corporate income tax eg Government Savings Bank, Stock Exchange, Charities or Temples

- Any other person with a waiver granted by the SEC as necessary and appropriate

Source: DBSV


Industry Focus

Page 91

Regional REIT Fee Structure REIT Manager Manager Fee Structure Trustee fee Property Mgmt Acquisition Divestment Manager Name Ownership Base (% of

prop value) Performance (% of prop

value) fee Fee (% of prop

value) Fee (% of prop

value) Termination

Clause Allco

Allco Singapore Ltd

Allco Finance Group (100%)

0.5% 3.5% of net real estate income fee less base fee

3% of property revenue, min $36k pa,

fee of 0.2% of acquisition price, fee of 0.01% of divestment

price

1% 0.5%

$20m payable by unitholders if

removed within 5 years of listing

A-India

Ascendas Property Fund Trustee Pte

Ltd

Ascendas Land International Pte

Ltd (100%) 0.5% 4% of NPI 0.02%

Project mgmt fee - 2% construction cost,

property mgmt fee - 2% of mthly gross

revenue, lease mgmt fee 1mth-2% of lease

value

1% 0.5%

A-REIT

Ascendas Funds Management (S)

Ltd

Ascendas Investments Pte

Ltd (100%) 0.5%

0.1% of property value (if annual DPU growth > 2.5% yoy), additional 0.1% of value (if DPU

growth> 5% yoy)

0.03% of deposited

property value, up to a max of

0.25% of deposited

property value

2% of gross rev, 1% of gross rev for lease

management service 1% 0.5%

ART


Management Ltd

The Ascott Group (100%)

0.3%

4% of share of GP. If GP growth >6%, additional outperformance fee of 1% of the difference between share of that year's GP and 106% of

previous year's GP

2-3% of gross revenue plus incentive

management fee of 5-10% of gross

operating profit

1% 0.5%

Cambridge

Cambridge Industrial Trust

Management Ltd

CREIM (60%), CWT (20%), Mitsui (20%)

0.5%

Tier 1 performance fee = 5% of total return of

trust index over benchmark index x mkt

cap of CREIT, Tier 2 performance fee = 15%

of the total return of trust index in excess of the 2% total return of benchmark index x mkt cap of CREIT

0.1% 2% of gross revenue

and 1% of gross revenue

1% 0.5%

CCT CapitaCommercial Trust

Management Ltd

Capitaland (100%) 0.1%

5.25% of net investment income 0.1% 3% of NPI 1% 0.5%

CMT CapitaMall Trust Management Ltd

Capitaland (100%)

0.25% 2.85% of gross revenue 0.1%

2% of gross revenue, 2% of NPI and 0.5% of NPI in lieu of lease

management fee

1% 0.5%


Industry Focus

Page 92

Regional REIT Fee Structure (cont’d) REIT Manager Manager Fee Structure Trustee fee Property Mgmt Acquisition Divestment Manager Name Ownership Base (% of

prop value) Performance (% of prop value) fee Fee (% of prop


value) Termination

Clause

CDL HT

M&C REIT Management Ltd,

M&C Business Trust

Management Ltd

M&C (100%) .25% of

property value 5% of NPI 0.1% 10% of PBT 1% 0.5%

First Bowsprit Capital Corporation Ltd

Battery Rd Ltd (10%), Golden Decade Intl Ltd (10%), LK REIT

Management Ltd (80%)

0.4% of deposited

property value 5% of NPI

0.03% of deposited property value 1%

Fortune ARA Asset

Management (Singapore) Ltd

ARA Asset Management Ltd

(100%)

0.3% of property value 3% of NPI 0.3% 3% of gross property revenue 1%

FCT Frasers

Centrepoint Asset Management Ltd

Frasers Centrepoint Ltd

(100%)

0.3% of deposited

property value 5% of NPI 0.1%

2% of gross revenue, 2% of NPI and 0.5% of rental income for

lease management, project mgmt fee of 3% (construction cost

<$2m), 2% (construction cost >$2m), 1.5% (construction cost

$20m-$50m)

1%

K-REIT Asia K-REIT Asia Management Ltd

Keppel Land (100%)

0.5% of deposited

value 3% of NPI 0.03%

3% of property income, 0.25-1mths gross rent for leases <1yr-

>2yrs 1% 0.5%

Lippo-Mapletree

Lippo-Mapletree Indonesia Retail

Trust Management Ltd

Mapletree Capital (40%),

Peninsula Investment, a wholly owned

indirect subsidiary of PT Lippo Karawaci

Tbk (60%)

0.25% of deposited

property value 4% of NPI 0.03%

2% of gross revenue, 2% of NPI, 0.5% of NPI in lieu of leasing

commission 1% 0.5%



Management Ltd

Mapletree Investments Pte

Ltd

0.5% of deposited

property value 3.6% of NPI 0.1%

2% of rental income and 1% of rental income in lieu of lease

management fee, project management fee 3% (construction cost <$2m), 2% (construction cost

>$2m), 1.5% (construction cost $20m-$50m)

1% 0.5%


Industry Focus

Page 93

Regional REIT Fee Structure (cont’d) REIT Manager Manager Fee Structure Trustee fee Property Mgmt Acquisition Divestment Manager Name Ownership Base (% of

prop value) Performance (% of prop

value) fee Fee (% of prop


value) Termination

Clause

MacarthurCook Industrial

MacarthurCook Investment

Managers (Asia) Ltd

MacarthurCook Ltd (92.5%),

United Engineers Ltd (7.5%)

0.5% of deposited

property value

0.1% of property value if DPU growth >2.5% yoy and an additional 0.1% of deposited property value if DPU growth >

5% yoy

0.1%

2% of rental income and 1% of rental income in lieu of lease management fee,

project management fee 3% (construction cost <$2m),

2% (construction cost >$2m), 1.5% (construction

cost $20m-$50m)

1% 0.5%



Management Ltd

Mapletree Investments Pte

Ltd

0.5% of deposited


2% of rental income and 1% of rental income in lieu of lease management fee,

project management fee 3% (construction cost <$2m),

2% (construction cost >$2m), 1.5% (construction

cost $20m-$50m)

1% 0.5%

MM Prime Macquarie Pacific Star Prime REIT

Management Ltd

Pacific Star (50%),

Macquarie (25%), Ergo

(25%)

0.5% of deposited

property value

Tier 1 performance fee = 5% of total return of

trust index over benchmark index x mkt

cap of MMP, Tier 2 performance fee = 15%

of the total return of trust index in excess of the 2% total return of benchmark index x mkt cap of MMP

0.1% 3% of gross revenue 1% 0.5%

Payment of $21.7m licensing agreement

in the event the manager is terminated

Parkway Life Parkway Trust

Management Ltd

Parkway Holdings Ltd

(100%)

0.3% of deposited


2% of property revenue and 1% of property revenue in lieu of lease management

fee

1% 0.5%

Saizen Japan Residential Assets Manager

Ltd

Japan Regional Assets Manager

Ltd (100%)

0.5% of monthly weighted average of

property asset value

Nil 0.03% 3% of property net profits before asset management

fee and expenses 1% 0.3%

0.5% of latest property asset value in the event of early

termination of manager before 5

years of listing

Suntec ARA Trust

Management (Suntec)

ARA Asset Management Ltd

(100%

0.3% of deposited


2.5% of gross revenue (<$100m), 3% of additional gross revenue (for revenue

between $100m and $130m), 3.5% of additional

revenue (>$130m)

1% 0.5%


Industry Focus

Page 94

Regional REIT Fee Structure (cont’d) REIT Manager Manager Fee Structure Property Mgmt Trustee fee Acquisition Divestment Manager Name Ownership Base (% of prop

value) Performance fee (% of prop value) Fee (% of prop


value) Termination

Clause Hong Kong Champion Eagle Asset Mgmt

(CP) Ltd Great Eagle Hldgs

Ltd (100%)

12% of NPI 3% of gross prop. rev. 0.03% of prop. value

1% of prop value 0.5% of prop value

GZI GZI REIT Asset Management

GZI (100%) 0.3% of prop. value 3% of NPI

3-4% of gross prop. Rev 0.03% of prop. value


Prosperity ARA Asset Mgmt (Prosperity) Ltd

ARA Asset Mgmt Ltd (100%)

0.4% of prop. value 3% of NPI

3% of gross prop. rev. 0.05% of prop. value


Regal Regal Portfolio Management

Regal (100%) 0.3% of prop. value 3% of NPI 0.015-0.025% of prop. value


RREEF CCT RREEF China REIT Management

Deutsche Asia Pacific Holdings

(80%); Mr Tin Lik (20%)


6% of operating expenses 0.03% of prop. value


Sunlight REIT Henderson Sunlight Asset Management

Henderson Land (100%)


3% of gross prop. rev. 0.03% of prop. value


The Link REIT* The Link

Management Internally managed

0.008% of prop. value

Malaysia Axis Axis REIT Managers

Bhd Axis Development

Sdn Bhd Max of 1% of

NAV None 0.05% of NAV Graduated scale fees 1%

0.5%

Quill Capita Quill Capita Mgmt Sdn Bhd

Quill Resources Hldgs Sdn Bhd,

Capitaland RECM Pte Ltd, Coast

Capital Sdn Bhd

0.4% of GAV 3% of net investment inc

0.021% 5% (gross rental inc <RM30k, 3% (gross rental inc <RM100k, 2% (gross

rental inc >RM100k)

1% 0.5%


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Regional REIT Fee Structure (cont’d) REIT Manager Manager Fee Structure Fund Mgmt Trustee fee Registrar Acquisition Divestment Name Ownership Base (% of prop

value) Performance fee Fee Fee (% of prop

value) Fee (% of property)

Thailand CPNRF Central Pattana 33% Max 0.3% of

NAV. Rental collection - <=

3% of net rental and service

income. Leasing commission (both new & renewal) - 0.5-1.5 months of

rental fees.

Incentive fee - <= 2.35% of net property

income

Fund manager fee of no more than 1% of net

assets

0.05% of NAV Registrar fee of no more than 0.05% of net

assets

1.5% 0.75%

SPF Bangkok Airways 32% Fund Manager fee of 1% of net

assets,

Not more than 0.15% of NAV, min of THB250000pa

Not more than 0.1% of NAV or min of THB1.9m

pa

TFUND TICON Industrial Connection

21% Base Fees - 4% of Rental & Service

Revenue. Leasing commission - 2

months of Rental & Service Revenue

Performance fees 0-20% of Net Property

Income.

Fund manager fee of 0.15% of

net assets

0.055% of net assets (min of Bt30,000 per month)

Registrar fee of 0.06% of net

assets


Industry Focus

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Industry Focus

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Research Team Directory Analyst Sector E-mail Sanjit Maitra Head, DBS Group Research [email protected] Regional Timothy Wong Head, Regional Equity Research [email protected] Joanne Goh Regional Equity Strategist Joanne [email protected] Hong Kong / China Dr Peter So Head of Research, Strategy [email protected] Alice Hui CFA Dy Head of Research, Consumer [email protected] Gideon Lo CFA Dy Head of Research, Oil & Petrochemicals, [email protected] Pharmaceuticals, Shipping Carol Wu China Properties [email protected] Dennis Lam Electronics & Technology [email protected] Helen Wang Basic Materials [email protected] Jasmine Lai Banking & Finance [email protected] Jeff Yau CFA Conglomerates, Property [email protected] Johnson Yuen Technical Analysis [email protected] Mavis Hui Media & General Retail [email protected] Patricia Yeung Industrials [email protected] Rachel Miu Agricultural, Auto & Machinery [email protected] Steven Liu CFA Software & Telecom [email protected] Indonesia Agus Pramono, CFA Strategy, Banking, Consumer , [email protected] Automotive Yusuf Ade Winoto, CFA Basic Materials, Oil, Gas & Energy yusuf.winoto id.dbsvickers.com Andrey Wijaya Consumer, Property [email protected] Devianita Tjandera Generalist [email protected] Ong Boon Leong, CFA Telecommunications [email protected] Malaysia Wong Ming Tek Head of Research, Strategy [email protected] Construction, Concessionaires Goh Yin Foo CFA Retail/ Technical Product [email protected] Lim Sue Lin Banking [email protected] Ong Boon Leong CFA Motor, Telecommunications, Technology Services [email protected] June Ng Power, Oil & Gas, Conglomerates, REITs [email protected] Ben Santoso Plantation [email protected] Azida Nor Azizi Steel [email protected] Kok Chiew Sia Consumer, IPO/ Retail Product [email protected] Juliana Ramli Shipping, Logistic, Manufacturing, Plantation [email protected] Iman Zaman Manufacturing [email protected] Singapore Janice Chua Head of Research, Strategy, Industrials [email protected] Jesvinder Sandhu Dy Head of Research, Industrials [email protected] Chong Wee Lee, CFA Industrials [email protected]

Jeremy Thia Industrials, Property [email protected] Paul Yong, CFA Consumer [email protected] Andy Sim, CFA Consumer [email protected] Tan Ai Teng Electronics [email protected] Ho Pei Hwa Electronics [email protected] Sachin Mittal Electronics, Telecom [email protected] Ben Santoso Plantations [email protected] Yeo Kee Yan Trader Spectrum [email protected] Ling Lee Keng Trader Spectrum [email protected] Thailand Chanpen Sirithanarattanakul Head of Research [email protected] Property, Transportation Chirasit Vuttigrai Telecoms, Entertainment [email protected] Vichitr Kuladejkhuna CFA Building Materials, Energy (Oil& Gas), [email protected] Petrochemicals, Chemicals, Energy (electricity) Sugittra Kongkhajornkidsuk Banks, Securities [email protected] Parin Kitchatornpitak Automotive, Commerce, Electronics [email protected]

Lock Mun Yee Property [email protected]


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DBSV recommendations are based an Absolute Total Return* Rating system, defined as follows:

STRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame)

BUY (>15% total return over the next 12 months for small caps, >10% for large caps)

HOLD (0-15% total return over the next 12 months for small caps, 0-10% for large caps)

FULLY VALUED (negative total return i.e. > -10% over the next 12 months)

SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame)

Share price appreciation + dividends DBS Vickers Research is available on the following electronic platforms: DBS Vickers (www.dbsvresearch.com); Thomson (www.thomson.com/financial); Factset (www.factset.com); Reuters (www.rbr.reuters.com); Capital IQ (www.capitaliq.com) and Bloomberg (DBSR GO). For access, please contact your DBSV salesperson.

GENERAL DISCLOSURE/DISCLAIMER This document is published by DBS Vickers Research (Singapore) Pte Ltd ("DBSVR"), a direct wholly-owned subsidiary of DBS Vickers Securities (Singapore) Pte Ltd ("DBSVS") and an indirect wholly-owned subsidiary of DBS Vickers Securities Holdings Pte Ltd ("DBSVH"). [This report is intended for clients of DBSV Group only and no part of this document may be (i) copied, photocopied or duplicated in any form by any means or (ii) redistributed without the prior written consent of DBSVR.]

The research is based on information obtained from sources believed to be reliable, but we do not make any representation or warranty as to its accuracy, completeness or correctness. Opinions expressed are subject to change without notice. This document is prepared for general circulation. Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific addressee. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees, who should obtain separate legal or financial advice. DBSVR accepts no liability whatsoever for any direct or consequential loss arising from any use of this document or further communication given in relation to this document. This document is not to be construed as an offer or a solicitation of an offer to buy or sell any securities. DBSVH is a wholly-owned subsidiary of DBS Bank Ltd. DBS Bank Ltd along with its affiliates and/or persons associated with any of them may from time to time have interests in the securities mentioned in this document. DBSVR, DBSVS, DBS Bank Ltd and their associates, their directors, and/or employees may have positions in, and may effect transactions in securities mentioned herein and may also perform or seek to perform broking, investment banking and other banking services for these companies.

DBSVUSA does not have its own investment banking or research department, nor has it participated in any investment banking transaction as a manager or co-manager in the past twelve months. Any US persons wishing to obtain further information, including any clarification on disclosures in this disclaimer, or to effect a transaction in any security discussed in this document should contact DBSVUSA exclusively.

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DBSVUSA does not have its own investment banking or research department, nor has it participated in any investment banking transaction as a manager or co-manager in the past twelve months. Any US persons wishing to obtain further information, including any clarification on disclosures in this disclaimer, or to effect a transaction in any security discussed in this document should contact DBSVUSA exclusively.


Industry Focus

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deliver stable distributions

yr govt bond

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asset enhancement initiatives

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