Thailand Property Funds With Dividends

Thailand Industry Focus
Property Fund/REIT Sector

Refer to important disclosures at the end of this report
DBS Group Research . Equity
Take shelter in volatile market
The sector now comprises 51 PFPOs and five REITS

with a combined market capitalisation of Bt333bn
(US$9.3bn), representing 2.6% of the SET
The sector is offering generous 2015F distribution

yield of 6.6%, a hefty premium to Thai 10-year
government bond yield of 3.0%
We prefer office and retail PFPO/REITs; there is

excess supply in the industrial space sector
Our preferred picks are CPNRF, CPTCG, FUTUREPF,

SPF and TLGF. These PFPOs/REITs possess good
assets and offer relatively generous distribution yield
of 6-8%, while liquidity is quite decent.
A safe haven in the volatile market. The Thai

PFPO/REIT sector has gained 2.4% YTD, out-performing
the SET Indexs 7.7% loss. Most Thai PFPOs/REITs are
generating strong recurring income streams which
should be less exposed to internal and external risks.
They are also paying generous dividend yields of about
6-8%, mostly quarterly.
Potential upside to yields of property funds which
convert to REITs. The SEC and the Revenue
Department have yet to reveal the transactions costs
involved in converting to a REIT. Since 2014, all new
setups have to be under the REIT structure and existing
PFPOs can no longer increase their capital. On this note,
PFPOs which have access to a pipeline of injection assets
would have to convert in order to grow their fund/trust
sizes. REITs are allowed to take on higher net gearing of
up to 35% of NAV (up to 60% if they have investment
grade rating) vs 10% maximum under the property fund
scheme, suggesting distribution per unit and yields
should rise after conversion.
Our preferred Funds/REITs. We prefer retail and office
to industrial PFPO/REITs, given more balanced demandsupply outlook for the former two asset segments. We
like CPNRF, FUTUREPF, and TLGF in the Retail asset
segment, POPF and CPNCG for Office assets, and
TGROWTH for Industrial assets. We also like SPF (airport
assets) and IMPACT (exhibition centres).
www.dbsvickers.com
ed-SGC / sa- CT
18 Sep 2015
SET :
1,389.70
Analyst
Chanpen SIRITHANARATTANAKUL +662 657 7824
chanpens@th.dbsvickers.com
Thailand Research Team +662 658 1222
STOCKS
CPTGF
CPNRF
FUTUREPF
IMPACT*
LHSC
POPF
SPF
TLGF
TGROWTH
Type of
Price
Assets
Bt
US$m
Bt
2015F
2016F
Office
Retail
Retail
Exhibition Center
Retail
Office
Airport
Retail
Industrial
10.00
16.70
18.20
11.20
10.40
13.30
19.60
13.20
12.20
269
1,025
267
461
138
178
517
188
856
10.70
18.00
22.30
12.00
11.40
14.00
21.40
15.10
12.90
8.0
6.0
7.0
6.4
7.0
8.1
6.6
6.1
7.6
8.6
7.6
7.3
6.6
7.0
8.3
6.6
6.1
7.6
Mkt Cap Target Price
Yields (%)
*Yields are for FYE Mar 2016-17

Source: DBS Vickers
CP Tower Growth Leasehold (CPTG): CPTGF has leasehold rights to
operate three CP Office Towers namely CP Tower Silom, CP Tower
Fortune Town, and CP Tower Phayathai. Key anchor tenants are
quality names like CP Group and its subsdiaries, Tesco Lotus, etc.
CPN Retail Growth Leasehold Property Fund (CPNRF): Thailands
largest and most liquid property fund. It has leasehold rights to
operate four successful Central Plaza shopping malls, namely Rama 2,
Rama 3, Pinklao, and Chiangmai Airport.
Future Park Leasehold Property Fund (FUTUREPF): FUTUREPF has
leasehold rights to operate Future Park Rangsit, one of Thailands most
successful sub-urban malls, thanks to its location being a gateway to
the Central, North, and Northeastern parts of Thailand.
Samui Airport Property Fund Leasehold (SPF): SPF has leasehold rights
to operate Samui Airport. Revenue is derived from the number of
departing passengers and incoming flights at Samui Airport.
Tesco Lotus Retail Growth Freehold and Leasehold Property Fund

(TLGF) : TLGF owns freehold and leasehold rights to operate 23 Tesco
Lotus shopping malls throughout Thailand. Freehold assets account
for 60% of total leasable area. Tesco Lotus is the key anchor tenant,
accounting for 58% of total leasable area and 28% of total rental
income.
Industry Focus
Analyst
Chanpen Sirithanarattanakul +662 657 7824
Thailand Research Team
research@th.dbsvickers.com
Table of Contents
Yield, Valuation and Recommendation
Regional Comparison
Evolution of Thai Property Funds/REITs
10
Key differences between PFPO/REIT
11
Major sponsors of the assets
12
Current Status
13
Price Performance
15
Industry Outlook
Office
15
Retail
17
Ready-Built Factories
19
Warehouses
19
Company Guides
-
CP Tower Growth Leasehold (CPTGF TB)
26
CPN Retail Growth Property Fund (CPNRF TB)
32
Future Park Prop Fund (FUTUREPF TB)
38
Impact Growth REIT (IMPACT TB)
44
LH Shopping Centers REIT (LHSC)
50
Prime Office Property Fund (POPF TB)
56
Samui Airport Property Fund (SPF TB)
62
Tesco Lotus Retail Growth Freehold and

Leasehold Property Fund (TLGF TB)
68
TICON Industrial Growth Property Fund (TGROWTH

TB)
74
Disclaimers
Page 2
80
Industry Focus
Yield, Valuation and Recommendation

Sector is offering generous 2015F distribution yield of
6.6%. This is a hefty 340bps premium to the Thai 10-year
government bond yield of 3.0% currently. Most funds pay
quarterly dividends, while some pay semi-annually.
Offering better yields than other investments. The following

chart shows Thai PFPO/REITs also pay higher yields than
bank deposits, government and corporate bonds, and
dividend yields of listed corporates.
Distribution Yield of Thai PFPOs/REITs
PFPO offers better yields vs other investment alternatives
7%
9.0
6%
8.0
7.0
5%
6.0
4%
5.0
3%
4.0
3.0
2%
2.0
1%
1.0
0%
PFPO/REIT
2015F
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
0.0
Source: SET, DBS Vickers
Note:
1. Distribution includes dividends and capital reduction
2. Price is based on market price at end of year, except
2015 which is current price
Yield-Spread. The following chart shows the yield-spread
between Thai PFPO/REIT and Thai 10-year government bond
averaged 3.2% over the past decade.
Listed 10-year govt 2-year fixed 1-year fixed Savings rate

companies
bond
deposit
deposit
yield
PFPO/REIT yield comparison. The following chart shows

our estimated 2015 yields for several types of PFPO/REITs.
2015 yield comparison for various types of PFPO/REIT
%
8.0
7.0
6.0
Yield of Thai PFPOs/REITs vs Thai 10-yr Government Bond
5.0
%
9.0
4.0
8.0
2.0
7.0
1.0
3.0
3.0
Retail
Residential
Office
Hotel
Industrial
4.0
Cineplex
Airport
5.0
Apartment
6.0

2014
2013
2012
Bond 10Y
2015F
Dividend Yield
2011
2010
2009
2008
2007
2006
2005
2.0
Page 3
Industry Focus
Valuation and Recommendation
Top Picks
Sector is now trading at average 1.07x P/NAV. This

represents +1SD of its historical average multiple of 0.9x.
CPN Retail Growth Leasehold Property Fund (CPNRF)

Thailands largest and most liquid property fund
2011
2012
2013
2014
2015
We prefer Office and Retail over Industrial PFPO/REITs. The

Office sector is now in an up-cycle. With limited new supply
entering the market, the occupancy and rents should
continue to rise. On the Retail front, occupancy remains
high at over 90% for prime retail malls. Nonetheless, the
weak domestic consumption could derail rental hikes in the
near term. But quality malls in good locations should
continue to do well. And for the Industrial sector, high
vacancies amid weakening demand and abundant supply
remain our key concerns. In addition, rents can hardly rise
because of the current high vacancy rate.
Our top picks are CPNRF, FUTUREPF, SPF, CPTGF, and TLGF.
The key factors we take into consideration include:
Industry subsector Prefer office, retail over industrial
Location of the assets
Quality of the assets and the anchor tenants
Quality of the property manager
Occupancy trend
Potential for rental reversion
Potential growth prospects
Remaining leasehold life
Distribution yield
P/NAV
IRR
Upside to our TP
Trading liquidity
Page 4
CPNRF: Yields
%
16
CPNRF's Yield
10-Year Govt Bond Yield
14
12
10
8
6
4
2
-
2015
2015
2010
2014
2014
2009
2013
2013
0.50
2012
-2 sd
0.60
2012
-1 sd
0.70
2011
2011
0.80
2010
Mean
0.90
2010
+1 sd
1.00
2009
2009
+2 sd
1.10
2008
1.20
CPNRF holds leasehold rights to operate four successful

CentralPlaza shopping malls in several locations. They are
Central Rama 2, Central Rama 3, Central Pinklao, and
Central Chiangmai Airport. Portfolio occupancy rate has
always been high at 90% and the fund has been paying
consistently higher dividends since its inception.
Nonetheless, we expect dividend yield to come down to
6.1% in 2015 as Central Pinklao undergoes renovation,
before surging to 7.7% and 8.4% in 2016 and 2017,
respectively. CPNRF plans to convert into a REIT after more
details on transaction costs are available. Successful
conversion would allow higher gearing, which means upside
to yields.
2008
P/NAV (x)
1.30
2007
2007
PFPO/REIT: Price/NAV
Samui Airport Leasehold Property Fund (SPF)

Riding on Samuis tourism recovery
SPF holds leasehold right to operate Samui Airport until
2036. Tourist arrivals have continued to improve in 2Q15
following the lifting of martial law. We estimate the funds
DPU will grow 4% this year and 7% each in 2016-17 on
rising number of passengers and flights. The fund is
currently offering generous dividend yield of 6.9% for 2015,
and 7.4% in 2016. Key risk is a sharp drop in Samui
tourism. Nonetheless, downside risk is protected by annual
revenue guarantee of Bt570m from Bangkok Airways, the
Property Manager, which suggests a dividend yield of 3.2%
at current price.
Industry Focus
SPF's Yield
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Jan-15
Jul-15
CPTGF: Yields
%
10
CPTGF's Yield
TLGF: Yields
%
8
TLGF's Yield
6
4
Jul-14
Jan-14
Tesco Lotus Retail Growth Property Fund (TLGF)

Decent yields
TLGF invests in 23 Tesco Lotus shopping malls throughout
Thailand. The majority of the assets (60% of total leasable
area) are freehold assets. Tesco is the anchor tenant,
accounting for 58% of total leasable area and 28% of total
rental income. Occupancy rates have been high at 98-99%
since its inception. The fund now offers generous dividend
yield of 6.2%. Tesco Lotus has granted right of first refusal
to TLGF to acquire its existing and future malls. The
successful conversion to a REIT structure would allow the
fund/REIT to borrow more for future acquisitions and rely
less on equity financing. This should lift distribution per unit
and yields.
Jul-15
%
20
18
16
14
12
10
8
6
4
2
CP Tower Growth Leasehold Property Fund (CPTGF)

Offering very generous yields
CPTGF invests in leasehold rights to operate three successful
CP Towers in prime locations. The Funds assets include i)
C.P. Tower I (Silom), ii) C.P. Tower II (Fortune Town), iii) C.P.
Tower III (Phayathai). Portfolio occupancy rate has been
high, averaging 98%. Anchor tenants are high quality
tenants like CP Group and its subsidiaries, and Tesco Lotus.
The Fund now offers generous 2015F dividend yield of
8.0%.
Jan-15
SPF: Yields
Future Park Leasehold Property Fund (FUTUREPF)

One of the most successful suburban malls in Thailand
FUTUREPF invests in leasehold rights to operate a part of
Future Park Rangsit, one of Thailands most successful
suburban shopping malls. The mall is located at the gateway
to Central, North and Northeastern Thailand, covering 56
provinces. Daily customer traffic count has been over 150k
during the last three years, one of the highest among retail
malls in Thailand. The fund now offers generous 2015 and
2016 dividend yield of 7.0 and 7.3%, respectively.
FUTUREPF: Yields
5
4
Sep-15
Jun-15
Mar-15
Dec-14
Sep-14
Jun-14
10
8
6
4
2
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Jan-15
Jul-15
Mar-14
Dec-13
12
Sep-13
FUTUREPF's Yield
Jun-13
%
14
Mar-13
Page 5
Industry Focus
Thailands listed PFPO/REITs

Yield
Name
Samui Airport Leasehold Property Fund

Airport
Land And Houses Freehold And Leasehold Property Fund
Gold Property Fund Leasehold
UOB Freehold Eight Thonglor Property Fund
Urbana Property Fund
Apartment
IMPACT Growth REIT
Others
Major Cineplex Lifestyle Fund
Cineplex
Centara Hotelsl & Resorts Leasehold Property Fund
Dusit Thani Freehold & Leasehold Property Fund
Erawan Hotel Growth Property Fund
MFC Patong Heritage Property Fund
Siri Prime Office Property Fund
Luxury Real Estate Investment
Samui Buri Property Fund
Quality Hospitality Leasehold
Qualty Houses Hotel and Residence Freehold and
Leasehold Proprety Fund
SRI Panwa Hotel Property Fund
Thai Hotel Investment Freehold And Leasehold Property
Fund
Hotel
Amata Summit Growth Freehold And Leasehold Real
Estate Investment Trust
MFC Industrial Investment Property and Leashold Fund
MFC-Strategic Storage Fund
TICON Property Fund
Thai Industrial Fund 1
TICON Industrial Growth Leasehold Property Fund
Hemaraj Industrial Property And Leasehold Fund
101 Montri Storage
Pinthong Industrial Park Property Fund
Sub Sri Thai Property Fund
Subsrithai Smart Storage Property Fund
TPARK Logistics Property Fund
Wha Premium Factory And Warehouse Property Fund
Wha Premium Growth Freehold And Leasehold Real
Estate Investment Trust
Ticon Freehold And Leasehold Real Estate Investment
Trust
Industrial
Page 6
Ticker
Freehold/Leasehold
Mkt Cap
(%)
P/NAV
Daily Turnover
(US$)
FY15
(x)
(US$m)
6.4
6.4
8.4
6.1
5.0
9.7
7.3
6.4
6.4
7.7
7.7
9.4
5.1
6.7
7.1
5.9
5.5
14.2
1.8
1.8
0.8
0.5
0.8
0.7
0.7
1.0
1.0
1.1
1.1
0.4
0.8
0.9
1.0
1.0
0.5
0.7
0.4
0.29
0.29
0.02
0.00
0.01
0.00
0.01
0.36
0.36
0.08
0.08
0.01
0.08
0.04
0.00
0.00
0.01
0.00
0.01
SPF
Leasehold
LHPF
GOLDPF
UOB8TF
URBNPF
Freehold and Leasehold

Leasehold
Freehold
Leasehold
IMPACT
Freehold
MJLF
Leasehold
CTARAF
DTCPF
ERWPF
M-PAT
SIRIP
LUXF
SBPF
QHOP
Leasehold
Leasehold & Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Leasehold
518
518
77
31
58
8
174
462
462
120
120
35
97
47
29
51
30
18
23
QHHR
SPWPF

Freehold
77
55
9.0
8.3
0.8
0.9
0.03
0.01
THIF
860
1,321
3.6
6.8
1.1
0.8
0.01
0.02
AMATAR
M-II
M-STOR
TFUND
TIF1
TGROWTH
HPF
MONTRI
PPF
SSTPF
SSTSS
TLOGIS
WHAPF

Leasehold
Freehold
Freehold
Freehold
Leasehold
Freehold
Freehold
Freehold
Freehold
Freehold
111
45
18
339
18
188
111
15
68
18
22
142
298
7.6
7.5
6.6
6.0
7.3
7.6
7.8
8.0
7.3
7.4
7.2
6.1
6.4
3.3
0.9
0.9
1.0
0.7
1.2
0.8
0.9
1.0
0.9
0.9
1.0
1.1
0.21
0.00
0.00
0.07
0.01
0.09
0.01
0.00
0.01
0.00
0.00
0.03
0.09
WHART
91
7.3
n.a.
0.08
TREIT
98
1,582
5.8
7.1
1.0
1.1
0.04
0.04
Industry Focus
Thailands listed PFPO/REITs (continued)

Name
Bangkok Commercial Property Fund

CPN Commercial Growth Leashold Property Fund
JC Property
KPN Property Fund
Millionaire Property Fund
Prime Office Leasehold Property Fund
Sala & Sathorn Property Fund
C.P. Tower Growth Leasehold Property Fund
Quality Houses Property Fund
Thai Commercial Investment Fund
Office
Uniloft Property Fund
MFC-Nichada Thani PF
Nichada-Thani Property Fund 2
Multi-National Residence Fund
TU Dome Residential Complex
Residential
CPN Retail Growth Leasehold Property Fund
Crystal Retail Growth Leasehold Property Fund
Future Park Property Fund
Tesco Lotus Retail Growth Freehold And Leasehold
Property Fund
Trinity Freehold and Leasehold Property Fund
Thai Retail Investment Fund
Talaad Thai Leasehold Property Fund
LH Shopping Centers Leasehold Real Estate Investment
Trust
Retail
Ticker
Freehold/Leasehold
BKKCP
CPNCG
JCP
KPNPF
MIPF
POPF
SSPF
CPTGF
QHPF
TCIF
Freehold
Leasehold
Leasehold
Freehold
Freehold
Leasehold
Freehold
Leasehold
Leasehold
Leasehold
UNIPF
MNIT
MNIT2
MNRF
TU-PF
Freehold
Leasehold
Leasehold
Leasehold
Leasehold
CPNRF
CRYSTAL
FUTUREPF
Leasehold
Leasehold
Leasehold
TLGF
TNPF
TRIF
TTLPF

Freehold
Leasehold
LHSC
Leasehold
Mkt Cap
Yield (%)
P/NAV
Daily Turnover
(US$)
FY15
(x)
(US$m)
27
140
17
50
106
178
44
269
221
825
1,878
14
11
22
20
5
71
1,028
109
268
6.7
7.1
4.0
6.4
5.8
8.1
2.7
8.0
7.5
5.0
6.1
7.4
5.4
8.7
8.3
6.0
6.0
7.7
7.0
0.8
1.0
1.1
0.9
1.5
1.1
1.0
1.0
0.9
1.1
1.0
0.9
0.5
0.7
0.5
0.3
0.6
1.3
0.9
1.5
0.00
0.15
0.02
0.00
0.10
0.07
0.17
0.08
0.00
0.06
0.00
0.00
0.01
0.01
0.00
0.00
0.56
0.02
0.07
859
20
632
96
6.1
4.3
8.3
1.2
0.5
1.1
1.7
0.47
0.01
0.00
0.00
141
3,153
7.3
5.8
1.0
1.1
0.08
0.15
Page 7
Industry Focus
Regional Comparison
La s t Pri c e
DPU c e n ts
Yi e l d
FYE
1 1 -Se p -1 5
Pri c e Ta rg e t
Up s i d e
2015
2016
2015
2016
R e c o m'd
Dec
Sep
Dec
1.315
1.310
0.950
1.48
1.51
1.12
13%
15%
18%
8.6
9.7
6.9
9.2
9.8
7.1
6.5%
7.4%
7.3%
7.0%
7.5%
7.5%
Buy
Buy
Buy
Dec
Dec
Mar
Sep
Aug
1.890
1.345
0.840
1.895
0.960
2.07
1.69
0.92
2.05
0.99
10%
26%
10%
8%
3%
11.4
10.6
7.6
11.8
5.5
11.8
11.0
7.8
12.0
5.5
6.0%
7.9%
9.0%
6.2%
5.7%
6.2%
8.1%
9.3%
6.3%
5.7%
Buy
Buy
Hold
Buy
Hold
Jun
Dec
Mar
Mar
0.760
1.515
1.320
0.935
0.91
1.58
1.35
1.12
20%
4%
2%
20%
7.6
9.5
8.3
7.3
5.4
10.1
8.6
7.9
10.0%
6.3%
6.3%
7.8%
7.1%
6.6%
6.5%
8.4%
Buy
Hold
Hold
Buy
Mar
Mar
Mar
Mar
Dec
Dec
Dec
2.200
0.840
1.530
1.010
0.610
0.990
0.790
2.30
0.90
1.50
1.11
0.61
1.09
0.86
5%
7%
-2%
10%
0%
10%
9%
14.9
5.6
10.6
7.5
5.0
8.5
6.3
15.0
5.8
10.4
7.8
5.1
8.7
6.4
6.8%
6.7%
6.9%
7.4%
8.2%
8.6%
8.0%
6.8%
6.9%
6.8%
7.7%
8.3%
8.8%
8.1%
Hold
Hold
Hold
Buy
Hold
Hold
Buy
Mar
Dec
Dec
Dec
Sep
Dec
Dec
Mar
0.605
1.210
1.365
0.615
0.725
0.800
2.260
0.950
0.74
1.38
1.65
0.71
0.83
0.98
2.56
0.97
22%
14%
21%
16%
14%
22%
13%
2%
5.6
8.8
11.1
4.7
6.0
6.5
13.1
8.0
5.7
9.2
11.3
4.7
6.1
6.6
12.2
8.7
9.3%
7.3%
8.1%
7.7%
8.3%
8.2%
5.8%
8.4%
9.4%
7.6%
8.3%
7.6%
8.3%
8.2%
5.4%
9.2%
Buy
Buy
Buy
Hold
Hold
Buy
Buy
Hold
Dec
Dec
0.645
1.005
0.90
1.14
40%
13%
6.5
6.4
6.4
7.0
10.0%
6.4%
10.0%
7.0%
Buy
Buy
Ho n g Ko n g (HK$ )
Champion REIT
Fortune REIT
Prosperity REIT
Sunlight REIT
Link REIT
Dec
Dec
Dec
Jun
Mar
3.95
7.50
2.78
3.90
41.25
4.78
9.18
3.06
4.23
48.10
21%
22%
10%
8%
17%
20.0
42.0
16.0
20.0
166.0
19.0
46.0
17.0
22.0
183.0
5.2%
5.6%
5.9%
5.1%
4.0%
4.9%
6.2%
6.2%
5.6%
4.4%
Buy
Buy
Buy
Buy
Hold
M a l a ys i a (R M )
Axis REIT
CapitaMalls Msia Trust
IGB REIT
Pavilion REIT
MRCB-Quill REIT
Sunway REIT
Dec
Dec
Dec
Dec
Dec
Jun
1.66
1.39
1.30
1.52
1.11
1.52
1.75
1.50
1.40
1.60
1.25
1.75
5%
8%
8%
5%
13%
15%
9.9
8.9
7.8
8.0
8.4
8.7
9.0
8.8
8.0
8.1
8.4
9.1
5.9%
6.4%
6.0%
5.2%
7.5%
5.7%
5.4%
6.3%
6.2%
5.3%
7.5%
6.0%
Hold
Buy
Buy
Hold
Hold
Buy
Th a i l a n d (B t)
CP Tower Growth Leasehold
Future Park LH Prop Fund
Impact Growth Real Estate Investment Trust
LH Shopping Centers Leasehold
Prime Office LH Prop Fund
Samui Airport Property Fund (Leasehold)
Tesco Lotus Retail Growth
TICON Industrial Growth Leasehold Property Fu
Dec
Dec
Dec
Mar
Dec
Dec
Dec
Feb
Dec
10.00
16.70
18.20
11.20
10.40
13.30
19.60
13.20
12.20
10.70
18.00
22.30
12.00
11.40
14.00
21.40
15.10
12.90
7%
8%
23%
7%
10%
5%
9%
14%
6%
80.0
99.7
127.0
42.0
73.0
108.0
129.6
81.0
93.2
86.0
126.0
133.0
75.0
73.0
111.0
129.6
80.9
93.2
8.0%
6.0%
7.0%
3.8%
7.0%
8.1%
6.6%
6.1%
7.6%
8.6%
7.6%
7.3%
6.4%
7.0%
8.3%
6.6%
6.1%
7.6%
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Si n g a p o re (S$ )
O ffi c e
CapitaLand Commercial Trust
Fraser Commercial Trust
Keppel Reit
R e ta i l
CapitaLand Mall Trust
CapitaLand Retail China Trust
Croesus Retail Trust *
Frasers Centrepoint Trust
SPH REIT
M i xe d (R e ta i l & O ffi c e )
Starhill Global REIT
Suntec REIT
Mapletree Commercial Trust *
Mapletree Greater China Commercial Trust *
I n d u s tri a l
A-Reit *
Ascendas India Trust *
Mapletree Industrial Trust *
Mapletree Logistics Trust *
Cambridge Industrial Trust
Cache Logistics Trust
Soilbuild Business Space Reit
Ho s p i ta l i ty & He a l th c a re
Ascendas Hospitality Trust *
Ascott Residence Trust
CDL Hospitality Trust
Far East Hospitality Trust
Frasers Hospitality Trust
OUE Hospitality Trust
Parkway Life
Religare Health Trust *
O th e rs
IREIT Global
Keppel DC REIT
Page 8
Industry Focus
Regional Comparison
1 1 -Se p -1 5
Ge a ri n g R a ti o
FY1 5 F
B V Pe r Sh
FY1 5 F
P/B ra ti o
Y/E
La s t Pri c e
Dec
Sep
Dec
1.315
1.310
0.950
19%
36%
37%
1.74
1.67
1.41
Dec
Dec
Mar
Sep
Aug
1.890
1.345
0.840
1.895
0.960
36%
28%
47%
30%
26%
Jun
Dec
Mar
Mar
0.760
1.515
1.320
0.935
Mar
Mar
Mar
Mar
Dec
Dec
Dec
Sh a re Pri c e Pe rfo rma n c e

1M
3M
6M
12M
0.75
0.79
0.67
-4.7%
-7.4%
-9.1%
-16.8%
-11.5%
-17.4%
-22.7%
-10.3%
-22.1%
-21.3%
-5.4%
-23.7%
1.82
1.69
0.94
1.85
0.93
1.04
0.80
0.89
1.02
1.04
-6.0%
-11.2%
-9.7%
-5.7%
-5.4%
-10.9%
-20.7%
-9.7%
-6.2%
-8.1%
-8.7%
-17.5%
-10.6%
-5.7%
-7.3%
-5.3%
-15.4%
-11.1%
-2.8%
-10.3%
36%
35%
36%
41%
0.92
2.07
1.24
1.18
0.83
0.73
1.07
0.79
-8.4%
-8.5%
-2.6%
-7.0%
-11.6%
-13.4%
-10.2%
-10.1%
-7.9%
-18.6%
-13.7%
-9.7%
-7.3%
-16.8%
-9.3%
-1.6%
2.200
0.840
1.530
1.010
0.610
0.990
0.790
34%
35%
35%
39%
36%
40%
36%
2.08
0.68
1.32
1.02
0.68
0.97
0.80
1.06
1.24
1.16
0.99
0.90
1.02
0.99
-4.4%
-9.2%
2.3%
-6.1%
-4.7%
-5.7%
-6.0%
-10.2%
-6.7%
0.7%
-10.2%
-11.6%
-13.9%
-6.0%
-10.9%
-5.6%
0.3%
-17.2%
-12.2%
-14.3%
-1.3%
-6.8%
1.2%
5.9%
-14.4%
-14.7%
-16.1%
0.0%
Mar
Dec
Dec
Dec
Sep
Dec
Dec
Mar
0.605
1.210
1.365
0.615
0.725
0.800
2.260
0.950
37%
39%
35%
32%
40%
42%
36%
15%
0.72
1.35
1.63
0.97
0.94
0.90
1.70
0.94
0.84
0.90
0.84
0.64
0.77
0.89
1.33
1.01
-10.4%
-4.0%
-6.5%
-10.9%
-10.5%
-10.1%
-7.4%
-9.5%
-14.2%
-4.0%
-17.0%
-20.7%
-15.7%
-14.0%
-0.9%
-5.5%
-12.3%
-4.7%
-20.4%
-24.5%
-19.0%
-14.0%
-3.4%
-10.0%
-16.0%
-2.4%
-19.5%
-27.2%
-18.5%
-10.6%
-3.8%
0.0%
Dec
Dec
0.645
1.005
32%
34%
0.75
0.88
0.86
1.15
-4.4%
-8.2%
-6.3%
-4.7%
-6.9%
-2.9%
-16.8%
0.0%
Ho n g Ko n g (HK$ )
Champion REIT
Fortune REIT
Prosperity REIT
Sunlight REIT
Link REIT
Dec
Dec
Dec
Jun
Mar
3.95
7.50
2.78
3.90
41.25
22%
30%
27%
22%
12%
8.36
12.76
4.90
7.99
51.53
0.47
0.59
0.57
0.49
0.80
-6.6%
-7.3%
-4.8%
-0.3%
-6.7%
-12.2%
-4.0%
0.4%
-0.5%
-10.1%
5.9%
-8.5%
-6.7%
4.3%
-13.7%
11.6%
2.3%
6.9%
17.5%
-10.7%
M a l a ys i a (R M )
Axis REIT
CapitaMalls Msia Trust
IGB REIT
Pavilion REIT
MRCB-Quill REIT
Sunway REIT
Dec
Dec
Dec
Dec
Dec
Jun
1.66
1.39
1.30
1.52
1.11
1.52
33%
29%
24%
15%
36%
31%
1.21
1.29
1.06
1.26
1.39
1.26
1.37
1.08
1.22
1.20
0.80
1.21
-0.9%
8.6%
0.8%
5.6%
1.8%
1.3%
-5.4%
-2.1%
-2.3%
0.0%
-4.3%
-8.4%
-6.7%
-4.8%
-2.3%
2.0%
-11.2%
-5.0%
-5.7%
-1.4%
0.8%
10.1%
-5.9%
1.3%
Th a i l a n d (B t)
Future Park LH Prop Fund
Prime Office LH Prop Fund
Samui Airport Property Fund (Leasehold)
Tesco Lotus Retail Growth
TICON Industrial Growth Leasehold Property Fu
Dec
Dec
Dec
Mar
Dec
Dec
Dec
Feb
Dec
10.00
16.70
18.20
11.20
10.40
19.60
19.60
13.20
12.20
Net Cash
6%
6%
24%
18%
7%
Net Cash
9%
7%
10.34
13.02
12.52
10.80
10.26
11.55
11.04
11.24
10.28
0.97
1.28
1.50
1.04
1.01
1.15
1.78
1.17
1.09
0.0%
0.0%
-1.6%
-1.8%
-3.7%
1.5%
1.6%
-2.2%
0.0%
0.0%
1.2%
1.1%
4.7%
-1.0%
6.4%
9.6%
0.0%
0.0%
0.5%
1.2%
5.3%
8.7%
1.0%
10.8%
12.1%
-0.6%
2.6%
1.5%
-1.2%
4.7%
nm
nm
5.6%
10.8%
-4.6%
13.2%
Si n g a p o re (S$ )
O ffi c e
CapitaLand Commercial Trust
Fraser Commercial Trust
Keppel Reit
R e ta i l
CapitaLand Mall Trust
CapitaLand Retail China Trust
Croesus Retail Trust *
Frasers Centrepoint Trust
SPH REIT
M i xe d (R e ta i l & O ffi c e )
Starhill Global REIT
Suntec REIT
Mapletree Commercial Trust *
Mapletree Greater China Commercial Trust *
I n d u s tri a l
A-Reit *
Ascendas India Trust*
Mapletree Industrial Trust*
Mapletree Logistics Trust*
Cambridge Industrial Trust
Cache Logistics Trust
Soilbuild Business Space Reit
Ho s p i ta l i ty & He a l th c a re
Ascendas Hospitality Trust *
Ascott Residence Trust
CDL Hospitality Trust
Far East Hospitality Trust
Frasers Hospitality Trust
OUE Hospitality
Parkway Life
Religare Health Trust *
O th e rs
IREIT Global
Keppel DC REIT
A-Reit, Ascendas Hospitality Trust, Ascendas India Trust, Croesus Retail Trust, Mapletree Industrials Trust, Mapletree Logistics Trust, Mapletree
Commercial Trust, Mapletree Greater China Commercial Trust, Religare Health Trust
Religare Health Trust (FY16 - 17)
Source: DBS Bank, DBS Vickers, AllianceDBS Research, Bloomberg Finance L.P, Thomson Reuters
Page 9
Industry Focus
Evolution of Thai Property Funds (PFPOs)/REITs
Number of listed PFPO/REIT

60
3
51
51
Property Funds
40
30
20
10
46
41
35
29
26
2015
2014
2013
2012
2011
2010
Market Capitalisation of PFPO/REIT Sector

Btm
350,000
300,000
REITs
Property Funds
250,000
200,000
150,000
100,000
50,000
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
REIT regulations took effect on 1 Jan 2013. The Securities

and Exchange Commission (SEC) has barred existing PFPOs
from increasing capital, and new IPOs of PFPOs from 2014
(except those who had submitted their applications in 2013
and which listing process had not been completed). All new
setups have to be under the REIT structure. Existing PFPOs
can convert to the REIT structure, but there have so far
been no details on the conversion costs. As a result, there
have not been any applications for conversion. Nonetheless,
some larger funds such as CPNRF and TLGF are waiting for
details from the SEC and are likely to convert into the REIT
structure.
REITs
50
2009
The first Thai PFPO, UOB Apartment Property Fund

(UOBAPF, or BOA Apartment Property Fund at that time)
entered the market in late 2003. The sector enjoyed strong
growth in 2005 and 2006, when the listing of several new
PFPOs boosted the sectors market capitalisation
significantly. But growth slowed when the Bank of Thailand
(BOT) introduced the 30% unremunerated reserve
requirement (URR) in late 2006 -for foreign investors who
invested in Thai PFPOs, to prevent speculation on the Thai
baht. But subsequently on 3 Mar 2008, the BOT lifted the
URR for short-term capital inflows, citing an improving
economy. The sectors market capitalisation surged again in
2012-2014 when a number of large funds entered the
market before the expiry of the deadline to set up new
property funds.
First REIT listed in 2014. The first Thai REIT, Impact Growth
Real Estate Investment Trust (IMPACT), was listed on the
SET on 1 October 2014. Since then, there have been four
other REIT listings on the SET.
51 PFPOs and 5 REITs listed on the SET currently. Todate,
there are 51 PFPOs and 5 REITs listed on the SET with a
combined market capitalisation of Bt333.4bn (US$9.3bn).
The sector accounts for 2.6% of the SETs total market
capitalisation currently. Initially, these PFPOs were listed
under the Property Sector. But as the number of PFPOs
grew, the SET created a separate Property Fund & REIT
sector in 2009.
Page 10
Growth driven by new listings rather than secondary

offerings. Sector growth in the last decade was driven
mainly by the listing of new PFPOs/REITS, rather than the
growth of existing funds. Of the total, only a few including
CPNRF, TFUND, TLOGIS, and TLGF, have turned to the
market for secondary offerings to acquire new assets. Note
that the maximum gearing allowed for property funds is
only 10% of NAV, meaning that they need to increase
capital for major asset acquisitions as the level of debt alone
would not be sufficient.
Industry Focus
Key differences between PFPO and REIT

Both PFPO and REIT have the same objective, which is to
invest in income-generating assets. Both must pay out at
least 90% of their net income as dividends, making them
high-yield investment alternatives.
Nonetheless, the legal structure, type of assets they can invest

in, leverage limit, holding restrictions, and taxation of
dividends differ. The key differences are listed below.
Key differences between PFPO and REIT

Topic
General
Property Fund
Legal Structure
Mutual fund
Trust
Minimum Size
Not less than 500 million Baht
Same
Upon establishment: 250
Same
Number of unit holders
REIT
After establishment: 35
Listing of Unit
Investment units must be listed
REIT unit must be listed
Management
Asset management company
REIT Manager, namely an asset management

company or a company with expertise in
managing real estate and is quailed according
to the criteria set by the SEC
Registrar
Not required to be TSD
Requires consent of the SET
Only ones listed on the SECs positive list
Not specified, however the real estate shall not

be used by the lessee to operate immoral or
illegal business
Investment
Type of property in which investment can
be made
Investment in real estate abroad
Not permitted
Permitted
Development of real estate (Green-field

project)
Not permitted
Not exceeding 10% of the total assets
Leverage limit
Not exceeding 10% of the net asset value

(NAV)
Not exceeding 35% of total assets and not

exceeding 60% in the case REIT has received an
investment grade.
Distribution
At least 25% must be offered to the public,

and units must be allocated to all free float
subscribers equally, one board lot at a time,
unit all subscribed units are allocated (Small
Lot First)
Not specified; allocated to free float REIT unit

holders in accordance with the criteria for listing
(no less than 20% of the total trust units and of
each tranche (If any))
Holding Restriction for Any Person of

Group of Persons
No more than 1/3 of the total number of

investment units
No more the 50% of the total number of REIT

unit and of each tranche (if any)
Disclosure
Similar to mutual funds
Similar to listed companies
Annual meeting of unit holders
Not specified
Annually, within four months from the end of

the fiscal year
Codes concerning the acquisition and

disposal of assets / related parties
transactions
Resolution of unit holders not required
Resolution of unit holders holding an aggregate

of not less than 15% of the total REIT unit and
of each tranche (if any)
Fund is exempt from corporate tax
Trust is exempt from corporate tax
In some cases, unit holders are not subject to

tax levied on dividends such as a company
holding units for three months prior and
three months after the date of dividend
payment
REIT unit holders of all types are subject to tax.
Distribution and allocation of units
Tax
Page 11
Industry Focus
Major sponsors
Major sponsors. The following table lists the major
sponsors of the assets for Thai PFPOs/REITs, together with
their current holdings. The top sponsors include TCC Land,
Central Pattana (CPN), Bangkok Land (BLAND), Ek-Chai
Distribution System (TESCO), TICON Industrial Connection
(TICON), and WHA Corporation (WHA).
Benefits to sponsors. Injecting their assets into PFPOs/REITs
is an alternative fund-raising exercise for these companies,
as it helps to unlock the value of their assets and most of
them normally recognise huge disposal gains. The proceeds
were normally used to finance their expansion plans or
develop new properties. They can still own the assets by

taking a stake in the PFPOs/REITs and receive dividend
income from the funds/REITs. Most also retain the property
management role and receive property management fees
from the funds/REITs.
More assets to be injected. Many of these companies still
have a pipeline of assets that can be injected into the REIT.
Among these are TICON and WHA which are now planning
secondary offerings for their REITs. WHA is also planning to
inject their office assets into a new office REIT to be set up.
CPN has a number of assets that can be injected into a REIT
but is waiting for details from the SEC regarding the
conversion into a REIT.
Major sponsors of assets for Thai PFPOs/REITs and their current holdings
Sponsor
Company
CPN
TICON
under TICON Logistic Park

WHA
Investment in
Fund
Mkt Cap
Holding
Mkt Value
(Btm)
(%)
(Btm)
CPNRF
36,948
27%
9,862
CPNCG
5,034
25%
1,259
TFUND
12,185
24%
2,878
TLOGIS
5,090
19%
980
TGROWTH
6,771
25%
1,713
TREIT
3,528
12%
440
WHAPF
10,705
15%
1,606
WHART
3,263
15%
489
HPF
3,995
23%
924
IMPACT
16,604
50%
8,302
TLGF
30,852
25%
7,713
FUTUREPF
9,638
33%
3,212
SPF
18,620
25%
4,674
Asset World Estate
TCIF
29,654
33%
9,786
TVC Investments Ltd.
TCIF
29,654
32%
9,513
Than Tavorn (2012) Ltd.
TCIF
29,654
19%
5,631
Asset World Estate
TRIF
22,723
31%
6,930
Yodying Intertrade
TRIF
22,723
20%
4,440
Asset World Leisure
THIF
30,916
33%
10,208
Panachai Panich
THIF
30,916
18%
5,432
CPTGF
9,670
33%
3,223
HEMRAJ
BLAND under:
Impact Exhibition
Ekchai Distribution (Tesco Lotus)
Rangsit Plaza
BA
TCC Group under:
CP Land
Page 12
Industry Focus
Current status
Sector breakdown by asset ownership. The sector now
comprises 51 PFPOs and 5 REITs. Of the total, 40% hold
freehold assets, 42% hold leasehold assets, and 18% hold
both. For leasehold assets, the remaining leasehold life for
most funds is 20-30 years.
Who invests in PFPO/REITs? Investors in Thai PFPOs/REITs

are mainly locals. Foreign investors in Thai PFPOs/REITs have
increased but are still considered small compared to the
sectors market capitalisation over the last few years.
Foreign ownership (%) of Thai PFPOs/REIT
Asset ownership of Thai PFPOs/REIT

Leasehold
& Freehold
18%
Leasehold
42%
Freehold
40%

Sector breakdown by business. Retail now make up 34% of

the sectors market capitalisation, followed by Office (20%),
Industrial (17%), and Hotel (14%). The rest are distributed
between Airport (6%), Exhibition Center (5%), Apartment
(2%), and Cineplex (1%).
Sector breakdown by business
Local investors comprise both institutional and retail

investors. Major institutional investors are Social Security
Fund, Government Pension Fund, insurance companies,
banks, universities, sponsors, and mutual funds.
Mutual funds that invest in PFPO/REITs
Fund
NAV
(Btm)
TMB Property Income Plus
TMB A.M.
8,023
One Property Plus Fund
One AM Fund
2,408
One Property Plus Dividend Fund
One AM Fund
972
MFC Property Dividend Fund
MFC Fund
734
MFC Property Wealth Fund
MFC Fund
2,220
Thanachart Fund
1,447
Phatra Asset
1,236
Thanachart Property Sector Fund

Phatra Property Sector Fund
Phatra Property Sector Fund Diviidend
CIMB-Principal Property Income - A
CIMB-Principal Property Income - R
CIMB-Principal Property Income - D
Source: Company, DBS Vickers
By
CIMB-Principal Property Income - C
Phatra Asset
CIMB-Principal
A.M.
CIMB-Principal
A.M.
CIMB-Principal
A.M.
CIMB-Principal
A.M.
61
542
742
199
341
Page 13
Industry Focus
Price Performance
Sector has yielded 13% average annual returns to investors
in last six years. This comprised about 6% price
appreciation and 7% distribution yield p.a. The total returns
are lower than the SET average return of 14% during the
same period, but the level of risk in investing in PFPO/REIT is
much lower. This is mainly because PFPO/REITs normally
invest in recurring income assets which generate steady cash
flows. In addition, it is strictly governed by the SEC to pay
out not less than 90% of net income. The borrowing limit
is also capped at 10% for PFPOs and 35% for REIT; there is
no limit for other stocks.
Total return of investing in Thai PFPO/REIT sector
40%
Distribution Yield
30%
Price Change
20%
10%
0%
-10%
2010
2011
2012
2013
2014
2015
-20%
Sector has outperformed the market YTD. The sector index

has inched up 2.4% YTD vs the SETs 7.7% loss as investors
turned to less risky assets amid current high market
volatility.
Thai PFPO/REIT sector index vs SET Index
1.10
1.05
1.00
0.95
0.90
0.85
0.80
SET
0.75
SET PF&REIT
Page 14
Jun-15
Mar-15
Dec-14
Sep-14
Jun-14
Mar-14
Dec-13
Sep-13
Jun-13
Mar-13
0.70
Most funds/REITs outperformed the market. Of the 56 listed

funds/REITs, 48 have outperformed the market YTD.
An out-performer YTD
Stock
SSPF
WHAPF
CPNCG
SPF
POPF
TGROWTH
QHOP
IMPACT
MIPF
QHPF
MJLF
UOB8TF
FUTUREPF
SIRIP
SPWPF
LUXF
PPF
TLGF
CPTGF
TIF1
WHART
TLOGIS
CPNRF
CRYSTAL
KPNPF
LHSC
TFUND
M-STOR
TTLPF
ERWPF
GOLDPF
JCP
SSTPF
CTARAF
M-PAT
DTCPF
TCIF
BKKCP
LHPF
SSTSS
QHHR
UNIPF
MNIT2
MNIT
M-II
THIF
MONTRI
HPF
TRIF
SBPF
URBNPF
TU-PF
MNRF
TNPF
AMATAR
TREIT
End-2014
(Bt)
5.20
9.90
10.30
17.30
11.80
10.90
3.82
10.20
18.50
9.25
12.20
8.20
17.00
10.00
9.30
5.10
10.20
12.40
9.40
7.00
10.00
11.80
16.10
9.70
9.80
10.20
10.40
10.60
19.00
9.60
5.35
10.00
9.40
3.96
9.85
8.55
13.50
9.75
8.60
9.70
8.45
9.80
8.25
3.00
10.00
12.70
9.80
9.50
16.20
9.00
5.15
2.20
8.55
8.70
11-Sep-15
(Bt)
9.55
11.40
11.80
19.60
13.30
12.20
4.24
11.20
20.00
9.95
13.10
8.80
18.20
10.70
9.95
5.45
10.90
13.20
10.00
7.35
10.50
12.30
16.70
10.00
10.00
10.40
10.60
10.70
19.10
9.60
5.35
10.00
9.40
3.94
9.80
8.50
13.40
9.55
8.40
9.45
8.20
9.45
7.90
2.86
9.50
11.80
8.80
8.50
14.30
7.65
4.24
1.74
6.60
4.90
11.10
10.30
Change
(%)
84%
15%
15%
13%
13%
12%
11%
10%
8%
8%
7%
7%
7%
7%
7%
7%
7%
6%
6%
5%
5%
4%
4%
3%
2%
2%
2%
1%
1%
0%
0%
0%
0%
-1%
-1%
-1%
-1%
-2%
-2%
-3%
-3%
-4%
-4%
-5%
-5%
-7%
-10%
-11%
-12%
-15%
-18%
-21%
-23%
-44%
nm
nm
Industry Focus
Industry Outlook
Office Bright outlook
Favourable demand-supply situation. According to CBRE
(Thailand), the total supply of office space in Bangkok
increased by 86,000 sqm in 1H15 to 8.4m sqm. Among the
major Grade A Buildings completed was Bhiraj Tower at
Emquartier located on Sukhumvit Road, with a total lettable
area of 47,500 sqm. Occupancy rate remained flat at 90.7%
at end-1H15. Net take-up surged to 97,000 sqm in 1H15,
slightly exceeding the total new supply during the period. It
is estimated net take-up of office space for the whole of
2015 will exceed 200,000 sqm.
Future supply not a concern. It is estimated that 103,035

sqm of new supply will be completed in 2H15, 75% of
which are located in non-CBD areas. In 2016, about
119,210 sqm of new supply will enter the market, all of
which will be outside the CBD.
Office: Future supply will be mostly non-CBD
Sqm.
250,000
Non CBD
200,000
CBD
150,000
3,000,000
6%
2,000,000
4%
1,000,000
2%
0%
1H10
2H10
1H11
2H11
1H12
2H12
1H13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
Stock
Demand
Vacancy Rate
Source: CBRE, DBS Vickers
Net take-up surging in 2015. Despite the slowing economy,

net take-up has been strong YTD, with demand coming
from expanding companies in the finance, logistics,
insurance and e-commerce sectors.
Office: Net take-up is on the rise
Sqm.
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015F
Source: CBRE Thailand, DBS Vickers
2017F
8%
2016F
10%
4,000,000
2015F
12%
5,000,000
2014
6,000,000
50,000
2013
14%
2012
16%
7,000,000
2011
8,000,000
100,000
2010
18%
2009
9,000,000
Vacancy Rate, All Grades
Sqm (Net Lettable Area)
Office: Demand, Supply and Vacancy
Office: Future Supply

Building
Lettable
Area
(Sqm)
- 2H15
Major Tower, Thonglor 10
G-Land Tower, Rama 9
Bhiraj Tower, Sathorn
- 2016
The Metropolis, Sukhumvit 39
Bhiraj Tower, BITEC
FYI Center, Rama IV
M Tower, Sukhumvit 62
Rungrojthanakul 4, Ratchadapisek
- 2017
Shinawatra 4, Phaholyothin
Pearl Bangkok, Phaholyothin
Singha Complex, Asoke
Gaysorn Office Tower, Rajdamri
-2018
Whizdom 101, Sukhumvit 101
-2020 and beyond
Super Tower, Rama 9
SJ Infinite II, Bangna KM 7
The Bangkok Mall, Bangna
Suan Lum Night Bazaar, Rama IV
Completion
10,405
65,630
27,000
3Q15
4Q15
2015
13,540
31,880
48,095
9,990
15,705
1Q16
2Q16
4Q16
4Q16
4Q16
13,060
n.a.
36,000
19,500
1Q17
2017
1Q17
2Q17
30,000
2018
94,000
30,000
100,000
137,500
2020
n.a.
n.a.
n.a.
Source: Knight Frank Thailand, DBS Vickers
Page 15
Industry Focus
Vacancy rate to fall further. With take-up expected to

outpace new supply, we estimate vacancy rate would
continue to fall and there could be a deficit in office space
supply by the year 2020.
Bangkok office rents are still cheap vs regional peers. The

following chart shows prime office rents in major cities in
Asia Pacific. According to Knight Frank, Bangkok office
rents are still one of the cheapest in Asia, averaging
US$29.1/sqm/month in 2Q15 vs US$96.6 in Singapore and
US$173.1 in Hong Kong.
Office: Vacancy should continue to fall

18%
Sqm (Net Lettable Area)
16%
14%
12%
10%
8%
6%
4%
2%
Office: Bangkok office rents vs regional peers

Vacancy Rate, All Grades
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
-
Hong Kong
Singapore
Beijing
Shanghai
Seoul
Stock
Demand
Jakarta
2017F
2016F
2015F
2014
2013
2012
2011
2010
0%
Guangzhou
Vacancy Rate
Bangkok
Phnom Penh
Kuala Lumpur
Rising rents. According to Knight Frank Thailand, average

office rental rate in Bangkok increased 7% y-o-y to
Bt674/sqm/month in 2Q15. Rents rose in all segments,
thanks to the strong increase in demand coupled with
moderate new supply. The rising rents and limited new
supply in CBD have led many occupiers to relocate to
emerging business locations, e.g. on Rama 9 and
Ratchadapisek streets where rents are cheaper. Looking
forward, rents should continue to trend up as demand
growth outpaces supply growth.
150
200
Source: Knight Frank, DBS Vickers
Ten office property funds offering average yield of 6.1%.

We expect CP Tower Growth Leasehold Property Fund
(CPTGF) and Prime Office Property Fund (POPF) to offer
2015 yields of 8.1% and 8.0%, respectively, the highest
among peers. Of the total, three hold freehold assets; they
are BKKCP, MIPF, and SSPF. The rest hold leasehold assets.
2015 estimated yield of listed office property funds
1,000
%
9.0
900
800
8.0
700
7.0
600
6.0
500
5.0
POPF
CPTGF
QHPF
CPNCG
BKKCP
2Q2015
KPNPF
MIPF
Non-CBD Grade B
TCIF
Non-CBD Grade A
1.0
JCP
CBD Grade B
2.0
SSPF
CBD Grade A
1Q2015
4Q2014
3Q2014
2Q2014
1Q2014
4Q2013
3Q2013
2Q2013
1Q2013
4Q2012
3Q2012
2Q2012
1Q2012
4Q2011
3Q2011
3.0
2Q2011
4.0
300
1Q2011
400
Page 16
100
US$/sqm/month
Office: Rising rents

Bt per sqm per month
50
Industry Focus
Retail Competition grows as supply rises

Demand vs supply. Total retail space in Bangkok increased
by 169,040 sqm to 6.9m sqm in 1H15, according to CB
Richard Ellis. The major developments that opened in 1H15
were The EmQuartier with total lettable area of 50,000 sqm,
The Hub which is an expansion of Zeer Rangsit, with a total
area of 70,000 sqm, and The Rest Area community mall
with 3,040 sqm of lettable area at Prachachuen Toll Plaza
on Si Rat Expressway. Take-up rate was about 50,000 sqm
in 1H15, raising occupied space to 6.3m sqm at end-1H15.
Occupancy easing but remains strong. Despite the rising
supply, occupancy rate has eased from 94% at end-2014 to
93.1% at end-1H15, as supply grew faster than demand.
Retail: Demand, Supply and Occupancy
sqm
8,000,000
100%
7,000,000
98%
96%
6,000,000
94%
5,000,000
92%
4,000,000
90%
3,000,000
88%
CentralPlaza WestGate : the biggest mall to open this year.

The project is located on a 100-rai (1 rai =0.4 acre) plot of
land along the West Ring Road at the Bangyai intersection,
where Kanchanapisek Road meets Rattanathibet Road. This
is the largest regional gateway in western Bangkok, with the
most comprehensive transportation system including the
MRT Purple Line, public transportation, piers, a ring road,
expressway and motorway. It is surrounded by a lot of
residential projects.
The mall is developed by Central Pattana (CPN) and was
opened on 28 August 2015 with 83% occupancy rate on
opening date. Occupancy is now over 90%.
The project comprises:
Central Department Store (31,000 sqm)
6 Specialty Anchor stores (14,000 sqm) including Tops
Market, Tops Super Store, Super Sports, PowerBuy,
B2S, Office Mate
4-storey CentralPlaza shopping mall (150,000 sqm),
housing approximately 400 leading retailers
12-screen WestGate Cineplex (10,200 sqm)
Virgin Active Club (3,000 sqm)
Doraemon Comic World (2,600 sqm)
86%
2,000,000
84%
1,000,000
CentralPlaza WestGate
82%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
1H15
80%
Supply (Sqm)
Demand (Sqm)
Occupancy (RHS)
Source: CBRE (Thailand), DBS Vickers
Strong demand from international brands. Take-up

continued to grow with demand coming from international
retailers. According to Jones Lang Lasalle Thailand, a total
of 41 internationally recognised brand-name retailers
recently opened their stores at EmQuartier, and six at The
Emporium.
A lot of new supply entering the market. Colliers
International estimates that 724,920 sqm of new supply will
be completed in 2H15, 88% of which is located in Bangkok
suburban area. These include CentralPlaza WestGate with a
gross area of 500,000 sqm, which aims to be the most
complete Super Regional Mall in Southeast Asia.
Page 17
Industry Focus
Falling consumer confidence. According to data from the

University of Thai Chamber of Commerce, Thailands
consumer confidence index has been dropping steadily for
eight consecutive months to 72.3 in August, a 15-month
low. This was the result of a combination of factors
including the recent bombing at the Rajchaprasong
intersection, the sharp drop in exports, the low agricultural
produce prices which have led to low farm incomes, a
slowing Chinese economy, global economic uncertainties,
and the sharp correction in the Thai stock market.
Bangkok retail rents still among the cheapest in Asia. The

following chart shows prime retail rents in Asia Pacific.
According to Jones Lang Lasalle, rents in shopping centers in
CBD in Bangkok averaged US$667/sqm/year, still much
lower than US$4,366 in Singapore and US$15,642 in Hong
Kong.
Retail: Asia Pacific shopping centers rents
HK, Central
Sydney
Guangzhou
Consumer Confidence dropped for 8 consecutive months
Shanghai
Melbourne
120
110
100
90
80
70
60
50
40
Brisbane
Singapore
Beijing
Perth
Adelaide
Auckland
CCI Index
Mumbai
Delhi
CCI Index - Current
Bangalore
CCI Index - Future
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
Chennai
Bangkok
Jakarta
Manila
0
Source: Bank of Thailand, DBS Vickers
-5%
-10%
1H15
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
TTLPF
0%
50
CRYSTAL
5%
LHSC
100
%
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
-
FUTUREPF
10%
TLGF
150
2015 estimated yield of listed retail property funds
CPNRF
20%
15%
2001
20,000
Seven retail property funds offering average yield of 6.7%.

Excluding Trinity Freehold and Leasehold Property Fund
(TNPF) which has not finalised a dividend payment for 2015,
we estimate the seven listed retail property funds are
offeringq an average distribution yield of 6.7% in 2015.
TRIF
25%
Retail sales index

Growth (y-o-y)
200
Page 18
15,000
Source: Jones Lang Lasalle, DBS Vickers
TNPF
Retail sales and growth
Source: Bank of Thailand, DBS Vickers
10,000
Net Rents (US$ /sqm/year)
Retail sales index fell 3.5% y-o-y in 1H15. With consumer

confidence falling amid global economic uncertainties and a
slowing domestic economy, Thailands retail sales index also
fell by 3.5% in 1H15, after falling 5.9% in 2014.
250
5,000
Industry Focus
Industrial High vacancies

Ready-Built Factories (RBF)
Excess supply. Total new RBF supply increased by 92,000
sqm in 1H15 to 2.5m sqm, according to CB Richard Ellis.
But net take-up rate had slowed to only 10,000 sqm in
1H15 amid the slowing economy. According to Knight
Frank Thailand, as much as 70% of RBF supply is located in
Chonburi, Rayong and Samut Prakan, because these are the
major locations of various industrial hubs and home to
Thailands automotive industry.
RBF: Supply by provinces
Saraburi, 4%
Logistics Property (Warehouses)

Rising vacancies. According to Knight Frank Thailand, total
supply of warehouse rental space increased by 101,327 sqm
in 1H15 to 3.5m sqm at end-1H15. This has dropped from
an increase of 310,000-440,000 sqm semi-annually in the
previous years, as rental warehouse developers slowed
down expansion plans amid weakening demand, which is in
turn the result of deteriorating exports and a slowing
economy. Vacancies rose to 22% in 1H15.
Warehouse: Demand, Supply and Vacancy
Sqm
4,000,000
Prachinburi,
2%
Chachoengsao,
1%
3,500,000
3,000,000
Nonthaburi,
1%
Pathum
Thani, 6%
25%
Supply
Occupied Space
Vacancy (RHS)
20%
2,500,000
15%
2,000,000
Chonburi,
30%
10%
1,500,000
Ayudhya,
16%
1,000,000
5%
500,000
Samut
Prakan, 21%
Rayong,
19%
0%
0
2011
2012
2013
2014
1H15

Rents are stagnant. Average rental rate of warehouses

eased to Bt160/sqm/month in 1H15, given weak demand
and rising vacancies. The largest drop was in the Eastern
Seaboard, because of high competition in the area.
Vacancy rate rising steadily since heavy flooding in 2011.

With the increase in supply far outpacing demand, vacancy
rate continued to rise from 33% at end-2014 to 35% at
end-1H15.
Warehouse: Rents were stagnant

RBF: Demand, Supply and Vacancy
Sqm
300,000
Btm/Sqm/Month
175
40%
10%
145
5%
140
0%
135
2015F
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
150
Eastern Seaboard
Pathum-Ayudhya
1H15
50,000
15%
2H14
100,000
SuvarnabhumiBangpakong
155
1H14
20%
150,000
160
2H13
25%
1H13
200,000
Eastern Bangkok
165
2H12
30%
170
1H12
35%
2H11
250,000
1H11
Supply
Demand
Vacancy
Rents remain flat. The average factory rental rate inched up

a meager 1.4% to Bt217/sqm/month in 2Q15, according to
Knight Frank Thailand. With demand likely to remain slow,
we expect rental rate of RBF to remain quite stagnant
during the rest of this year.
Page 19
Industry Focus
The industrial property funds/REITs that offer the highest

2015 dividend yields include 101 Montri Storage Property
Fund, Hemaraj Industrial Property & Leasehold Fund (HPF)
and Ticon Industrial Growth Leasehold Property Fund
(TGROWTH), which are offering 8.0%, 7.8%, and 7.6%,
respectively.
Industrial REIT offering average 7.1% yield in 2015. There

are now 15 listed property funds/REITs that invest in
industrial assets including ready-built factories, logistic
warehouses and storage. These funds are now offering
generous dividend yield of 7.1% at current price. This is
relatively high, but we are concerned about the
sustainability of the yields of some industrial funds over the
medium- to long-term, given weak demand and still high
vacancy rates. Some funds are now being saved by the
temporary revenue guarantees by the sponsors, which mean
their yields could drop in the future.
2015 estimated yields of listed industrial property funds
%
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
Page 20
TREIT
WHART
WHAPF
TLOGIS
SSTSS
SSTPF
PPF
MONTRI
HPF
TGROWTH
TIF1
TFUND
M-STOR
M-II
AMATAR
Industry Focus
Major office property funds/REITs

Office
CPNCG
CPTGF
POPF
QHPF
Units (m)
427
967
482
797
Price (Bt)
11.80
10.00
13.30
9.95
Mkt Cap (Btm)
5,034
9,670
6,406
7,930
140
269
178
220
Listing
21-Sep-12
16-Dec-13
12-Apr-11
12-Dec-06
TP (Bt)
12.50
10.80
14.00
n.a.
Upside
6%
8%
5%
n.a.
11.78
10.37
11.40
11.06
1.0
1.0
1.2
0.9
0.84
0.80
1.08
0.74
7.1%
8.0%
8.1%
7.5%
Mkt Cap (US$m)
NAVps (Bt)
P/NAV (x)
DPU (Bt) - 2015
Div. Yield
0.88
0.86
1.11
n.a.
Div. Yield
DPU (Bt) - 2016
7.5%
8.6%
8.3%
n.a.
IRR
8.5%
9.7%
8.6%
n.a.
Asset type
Office
Office
Office
Office
Asset
CentralWorld
CP Tower Silom
UBC II Tower
Q House Ploenchit
CP Tower Fortune
Town
CP Tower Phyathai
Ploenchit Center
Q House Lumpini
Nation Tower
Wave Place
0%
0%
0%
0%
100%
100%
100%
100%
17.3
28.2
22.8
19.5
80,604
70,293
125,184
115,678
4,765
9,660
5,491
7,194
59,119
137,421
43,860
62,193
5,197
9,626
5,754
7,837
Ownership (by leasable area)

Freehold
Leasehold
Remaining leasehold life (yrs)
Leasable area (Sqm)
Cost (Bt)
Acquisition price (Bt/sqm)
Latest appraised value (Btm)
Page 21
Industry Focus
Major retail property funds/REITs

Retail
CPNRF
TLGF
Units (m)
2,212
2,337
530
390
488
Price (Bt)
16.70
13.20
18.20
10.00
10.4
36,948
30,852
9,638
3,900
5,076
1,026
857
268
108
141
Listing
23-Aug-05
19-Mar-12
07-Dec-06
27-Jun-13
26-Dec-14
TP (Bt)
18.00
15.1
22.27
11.44
11.40
Upside
8%
14%
22%
14%
10%
13.06
11.18
12.55
10.95
10.63
1.3
1.2
1.5
0.9
1.0
1.00
0.81
1.27
0.77
0.76
6.0%
6.1%
7.0%
7.7%
7.3%
Mkt Cap (Btm)

Mkt Cap (US$m)
NAVps (Bt)
P/NAV (x)
DPU (Bt) - 2015
Div. Yield
DPU (Bt) - 2016
FUTUREPF
CRYSTAL
LHSC
1.26
0.84
1.33
0.79
0.77
Div. Yield
7.6%
6.3%
7.3%
7.9%
7.4%
IRR
8.8%
7.4%
9.2%
9.3%
8.5%
Asset type
Retail
Retail
Retail
Retail
Retail
Central Rama 2
23 Tesco Lotus
malls
Future Park Rangsit
The Crystal
Terminal 21 Mall
Asset
Central Rama 3
Crystal Design
Center
Central Pinklao
Central Chiangmai
Airport
Freehold
Leasehold
Leasable area (Sqm)
Cost (Bt)
Page 22
0%
60%
0%
0%
0%
100%
40%
100%
100%
100%
34.9
21.7
27.5
28.0
25.0
218,269
331,563
65,500
118,018
34,058
27,973
27,761
6,403
4,132
5,942
128,159
83,729
97,761
35,015
174,456
Industry Focus
Major industrial property funds/REITs

Indust rial
A MA TA R
HPF
T REIT
WHA PF
WHA RT
T F UND T GROWT H
T L O GIS
Units (m)
358
470
343
939
311
1,150
555
414
Price (Bt)
11.10
8.50
10.30
11.30
10.60
10.60
12.20
12.30
Mkt Cap (Btm)
3,973
3,995
3,528
10,611
3,294
12,185
6,771
5,090
110
111
98
295
92
338
188
141
Mkt Cap (US$m)

Listing
30-J un-15
TP (Bt)
11.0
n.a.
10.4
11.6
11.0
11.0
12.9
11
Upside
-1%
n.a.
1%
3%
4%
4%
6%
-8%
NAV ps (Bt)
10.0
10.1
9.9
10.2
9.8
11.1
10.4
11.8
P/NAV (x)
1.1
0.8
1.0
1.1
1.1
1.0
1.2
1.0
DPU (Bt) - 2015
0.4
0.7
0.6
0.7
0.8
0.6
0.9
0.7
7.6%
7.8%
6.1%
6.3%
7.6%
6.0%
7.6%
5.9%
0.8
n.a.
0.7
0.7
0.8
0.6
1.0
0.8
Div . Yield
DPU (Bt) - 2016
23-J an-14 16-Dec-14 24-Dec-10 18-Dec-14 12-May -15 18-Dec-13 16-Dec-09
Div . Yield
7.5%
n.a.
7.2%
6.5%
7.2%
6.0%
7.9%
6.2%
IRR
9.3%
n.a.
10.3%
9.2%
9.4%
0.0%
8.1%
6.5%
F actories
F actories
Industrial
Industrial
Industrial
Industrial
Asset ty pe
Asset
Industrial Warehouses
88 factories104 factories Warehouses Warehouses Warehouses

F actories
F actories
F actories Warehouses Warehouses

F actories

F reehold
30%
64%
65%
70%
61%
100%
100%
Leasehold
70%
36%
35%
30%
39%
0%
100%
30
n.a.
28-30
22.4
26
n.m.
28.5
n.a.
160,579
150,117
214,523
397,782
342,021
584,550
303,270
243,625
4,750
4,700
4,228
9,780
9,056
11,716
6,003
4,469
29,580
31,309
19,709
24,585
26,479
20,043
19,794
18,344
Remaining leasehold life (y rs)

Leasable area (Sqm)
Cost (Bt)
Page 23
Industry Focus
Major property funds/REITs in other sectors

Ot hers
IM PA CT
MJ LF
SPF
Units (m)
1482.5
330
950
Price (Bt)
11.20
13.10
19.60
16,604
4,323
18,620
461
120
517
01-Oct-14
18-J ul-07
24-Nov -06
TP (Bt)
12
13.8
21.4
Upside
7%
5%
9%
10.79
12.16
11.08
1.0
1.1
1.8
0.71
1.01
1.30
6.4%
7.7%
6.6%
Mkt Cap (Btm)

Mkt Cap (US$m)
Listing
NAV ps (Bt)
P/NAV (x)
DPU (Bt) - 2015
Div . Yield
0.74
1.03
1.39
Div . Yield
DPU (Bt) - 2016
6.6%
7.9%
7.1%
IRR
8.9%
7.8%
8.4%
Exhibition Center
Lifesty le Entertainment Complex
Airport
Impact Arena
Major Ratchay othin
Samui Airport
Asset ty pe
Asset
Impact F orum
Major Rangsit
Impact Exhibition 1-8
Suzuki Av enue Ratchay othin
Challenger Hall
F reehold
Leasehold
Leasable area (Sqm)
Cost (Bt)
Page 24
100%
100%
0%
0%
0%
100%
n.a.
30.8
21.0
122,165
45,194
n.a.
19,601
3,194
9,301
160,448
70,675
n.m.
Industry Focus
THAILAND STOCK PROFILES
Page 25
Thailand Company Guide

Edition 1 Version 1 | Bloomberg: CPTGF TB | Reuters: CPTGFu.BK
18 Sep 2015
BUY
LOW RISK BUT ATTRACTIVE YIELD
Last Traded Price: Bt10.00 (SET : 1,381.80)

Price Target : Bt10.80 (9% upside)
BUY, with Bt10.80 TP based on DCF valuation. CPTGF is

offering attractive distribution yield of 8.0% (FY15F), payable
quarterly. The fund invests in leasehold rights to three office
buildings that are strategically located in the prime business
areas of Bangkok, including Silom, Fortune Town and
Phayathai area. Note that these buildings also offer retail rental
space. The office buildings currently enjoy high average
occupancy rate of 98%, except for office space of C.P. Tower
II (Fortune Town) which is at 93% given the location and age
of the building.
Potential Catalyst: Strong rental reversion

Where we differ: n.a.
Analyst
Nantika WIANGPHOEM +662 657 7836
nantikaw@th.dbsvickers.com
Price Relative
Bt
Relative Index
Low risks, high quality tenants. The main contracts with anchor
tenant C.P. group and its subsidiaries, Tesco Lotus, and public
sector clients, which cover 34%, 6% and 5% of total lettable
area, respectively, are subject to 10% rental reversion next
year. And, 52 other contracts which account for 9.4% of total
revenue are expiring in FY16 and subject to renewals at 5%
higher rents, at least.
209
10.7
189
10.2
169
9.7
149
129
9.2
109
8.7
8.2
Dec-13
89
69
May-14
Oct-14
CP Tower Growth Leasehold (LHS)
Forecasts and Valuation

FY Dec (Bt m)
Gross Revenue
Net Property Inc
Total Return
Distribution Inc
EPU (Bt)
EPU Gth (%)
DPU (Bt)
DPU Gth (%)
NAV per shr (Bt)
PE (X)
Distribution Yield (%)
P/NAV (x)
Aggregate Leverage (%)
ROAE (%)
Mar-15
Aug-15
Relative SET INDEX (RHS)
2014A
1,307
1,169
727
733
0.75
nm
0.76
nm
10.31
13.2
7.6
1.0
0.0
N/A
Dist. Inc. Revision (%):

Consensus DPU (Bt):
Other Broker Recs:
2015F
1,348
1,208
757
771
0.78
4
0.80
5
10.35
12.7
8.0
1.0
0.0
7.6
2016F
1,452
1,301
824
833
0.85
9
0.86
8
10.36
11.7
8.7
1.0
0.0
8.2
2017F
1,469
1,316
869
843
0.90
6
0.87
1
10.39
11.1
8.8
1.0
0.0
8.7
N/A
B: 0
N/A
S: 0
N/A
H: 0
Valuation:
We value CPTGF at Bt10.80 based on DCF valuation (WACC:
6.8%).
Key Risks to Our View:
Key risks are (i) lower-than-expected rental reversion, and (ii)
weaker-than-expected occupancy rate.
At A Glance
Issued Capital (m shrs)
Mkt. Cap (Btm/US$m)
Major Shareholders
CPL Group Pcl. (%)
KTB (%)
Social Security Office (%)
Free Float (%)
3m Avg. Daily Val (US$m)
ICB Industry : Financials / Real Estate Investment Trusts
967
9,670 / 269
33.3
15.0
15.0
50.6
0.20
Source of all data: Company, DBS Vickers, Bloomberg Finance L.P
ASIAN INSIGHTS
www.dbsvickers.com
ed: SGC / sa: CS
VICKERS SECURITIES
Company Guide
Net Property Income and Margins (%)
800
92.9%
600
90.9%
400
88.9%
200
86.9%
84.9%
2014A
2015F
2016F
Net Property Income
2017F
Net Property Income Margin %

50
73%
45
72%
40
71%
35
30
70%
25
69%
20
68%
15
67%
10
65%
Net Property Income
2Q2015
66%
1Q2015
4Q2014
Low risk with high profile tenants. The main contracts with
anchor tenant C.P. group and its subsidiaries, Tesco Lotus,
and public sector clients, which cover 34%, 6% and 5% of
total lettable area, respectively, are subject to 10% rental
reversion next year. And, 52 other contracts which account
for 9.4% of total revenue are expiring in FY16 and subject
to renewals at 5% higher rents, at least.
94.9%
1,000
3Q2014
Positive rental reversion to drive growth. With the prime

area of each building, we expect growth to come from
rental reversion (estimated at 3.0 - 5.0% p.a. for retail rental
space and +10% every three years for office rental space).
Also, the geographical diversification helps to reduce
concentration risk.
96.9%
1,200
2Q2014
Earnings Drivers:
Invests in leasehold rights to three office buildings in
Bangkoks prime areas. These are successful office buildings
in good locations with 98% average occupancy rate. The
Funds assets include i) C.P. Tower I (Silom), ii) C.P. Tower II
(Fortune Town), iii) C.P. Tower III (Phayathai). With all of the
assets being in prime locations, the Fund stands to benefit
from future rental rate hikes. The remaining tenure of the
lease is about 29 years.
1,400 Bt m
1Q2014
CRITICAL DATA POINTS TO WATCH
Distribution Paid / Net Operating CF

(x)
0.5
0.0
2014A
2015F
2016F
2017F
-0.5
Strong occupancy record. Data from 2010-2015 for office

rental shows that the historical average occupancy rate for
C.P. Tower I, II & III were 100%, 99% and 100%, with
occupancy increasing by 3.3%, 5.5% and 16.3% CAGR,
respectively.
-1.0
-1.5
Net Asset Value / Unit
For retail space, the average occupancy rate for C.P. Tower I
and II were 99% and 97%, growing by 3.0% and 7.8%
CAGR, respectively. Occupancy at C.P. Tower III had risen
from 46.4% in 2010 to 100% in 2015, or at 8.4% CAGR.
Payout assumptions. We currently assumed 97%payout ratio
throughout our forecast period. CPTGF has paid Bt0.20
quarterly DPU in 1Q15 and 2Q15, respectively. In addition,
the fund has announced par reduction of Bt0.004 in both
1Q15 and 2Q15.
Occupancy rate in 1H15

C.P. Tower 1 C.P. Tower 2 C.P. Tower 3
(Fortune
(Silom)
Town)
(Phayathai)
Office rental space
Total Office Rental Space
(sqm)
35,717
25,414
9,163
Occupancy rates
100%
92%
97%
Total leasable space (sqm)
9,075
46,528
7,850
Occupancy rates
98%
98%*
97%
Retail rental space
* excluding OR of Tesco Lotus = 100*

ASIAN INSIGHTS
VICKERS SECURITIES
Page 27
Company Guide
ROE (%)
Balance Sheet:
Currently, the fund is debt-free.
8.0%
7.0%
6.0%
Share Price Drivers:

Strong rental reversion. Strong rental reversion could lift
rental income and distribution per unit.
5.0%
4.0%
3.0%
2.0%
Attractive yield. CPTGF is offering attractive annual yield of

about 8%, compared to 3.0% for 10-year Thai government
bonds and 3.6-3.9% dividend yields for stocks under DBS
coverage (75% of the SET market cap) in FY15-16F.
1.0%
0.0%
2015F
2016F
2017F

10.0%
Key Risks:
Economic slowdown
Economic slowdown should result in weaker-than-expected
occupancy rate and slower-than-expected rental reversion,
which would limit the Funds growth, and hence, DPU.
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
COMPANY BACKGROUND
CPTGF is a property fund that invests in leasehold rights to
three office buildings in Bangkoks prime business areas with
a total leasable area of 132,191 sqm. The assets are C.P.
Tower I (Silom), C.P. Tower II (Fortune Town), and C.P.
Tower III (Phayathai). The key anchor tenants are C.P. group
and its subsidiaries, Tesco Lotus, and also public sector
clients, which cover 34%, 6% and 5% of total lettable area,
respectively.
3.0%
2014A
2015F
2016F
2017F
PB Band (x)
For the office rental space, CPTGF will renew the rental
contract and revise up the rental rate by 10% with the
tenants every 3 years
The fund was listed on the Stock Exchange of Thailand on
16 December 2013. The IPO price was Bt10.15/sh. C.P. Land
Public Company Limited is the funds sponsor, a major
shareholder with 33.33% stake, and the Property Manager.
Details of assets in CPTGFs portfolio
Assets
Appraised
Value (Btm)
Remaining Leasehold
(Years)
C.P. Tower I (Silom)
3,979.86
28
C.P. Tower II
(Fortune Town)
4,752.29
28
853.90
28
C.P. Tower III
ASIAN INSIGHTS
Page 28
VICKERS SECURITIES
Company Guide
Key Assumptions
FY Dec
C.P. Tower I (Silom)
Office rental space
Leasable area (sqm)
Occupancy
Rents (bt/sqm/month)
Retail rental space
Leasable area (sqm)
Occupancy
C.P. Tower II (Fortune)
Town)
Office rental space
Leasable area (sqm)
Occupancy
Retail rental space
Leasable area (sqm)
Occupancy
C.P. Tower III (Phayathai)
Office rental space
Leasable area (sqm)
Occupancy
Retail rental space
Leasable area (sqm)
Occupancy
Dividend payout ratio
Income Statement (Bt m)

FY Dec
Gross revenue
Property expenses
Net Property Income
Other Operating expenses
Other Non Opg (Exp)/Inc
Net Interest (Exp)/Inc
Exceptional Gain/(Loss)
Net Income
Tax
Minority Interest
Preference Dividend
Net Income After Tax
Total Return
Non-tax deductible Items
Net Inc available for Dist.
Growth & Ratio
Revenue Gth (%)
N Property Inc Gth (%)
Net Inc Gth (%)
Dist. Payout Ratio (%)
Net Prop Inc Margins (%)
Net Income Margins (%)
Dist to revenue (%)
Managers & Trustees fees
to sales %)
ROAE (%)
ROA (%)
ROCE (%)
Int. Cover (x)
2014A
2015F
2016F
2017F
35,716
99%
840
35,716
100%
840
35,716
100%
924
35,716
100%
924
7,792
98%
949
7,792
98%
996
7,792
98%
1046
7,792
98%
1088
25,413
93%
600
25,413
93%
600
25,413
93%
660
25,413
93%
660
46,528
99%
855
46,528
99%
895
46,528
99%
943
46,528
97%
978
9,162
99%
576
9,162
100%
576
9,162
100%
634
9,162
100%
634
7,850
98%
788
96%
7,850
98%
828
97%
7,850
98%
869
97%
7,850
98%
904
97%
2014A
2015F
2016F
2017F
1,307
(139)
1,169
(451)
3
7
3
730
0
0
0
730
727
14
733
1,348
(140)
1,208
(456)
3
2
0
757
0
0
0
757
757
0
771
1,452
(151)
1,301
(484)
3
3
0
824
0
0
0
824
824
0
833
1,469
(152)
1,316
(454)
3
4
0
869
0
0
0
869
869
0
843
N/A
nm
nm
95.8
89.4
55.8
56.1
3.1
3.4
3.8
97.0
89.6
56.2
57.2
7.7
7.7
8.7
97.0
89.6
56.7
57.4
1.2
1.2
5.5
97.0
89.6
59.2
57.4
34.5
33.8
33.3
30.9
N/A
N/A
N/A
NM
7.6
7.3
7.5
NM
8.2
7.9
8.2
NM
8.7
8.3
8.6
NM
ASIAN INSIGHTS
VICKERS SECURITIES
Page 29
Company Guide
Quarterly / Interim Income Statement (Bt m)

FY Dec
2Q2014
3Q2014
Gross revenue
Property expenses
Net Property Income
Net Income
Tax
Minority Interest
Net Income after Tax
Total Return
Growth & Ratio
Revenue Gth (%)
Net Inc Gth (%)
Net Prop Inc Margin (%)
4Q2014
1Q2015
2Q2015
329
(105)
224
(44)
1
0
0
182
0
0
182
182
10
192
326
(91)
236
(47)
0
3
2
194
0
0
194
194
7
201
332
(107)
225
(49)
1
3
3
182
0
0
182
182
7
189
333
(94)
238
(46)
1
2
(25)
171
0
0
171
171
34
205
341
(102)
239
(43)
1
1
31
230
0
0
230
230
(22)
208
3
(1)
5
68.2
94.8
(1)
5
7
72.2
95.2
2
(5)
(6)
67.7
95.3
0
6
(6)
71.6
97.3
3
0
34
70.1
96.7
Balance Sheet (Bt m)

FY Dec
2014A
2015F
2016F
2017F
Investment Properties
Other LT Assets
Cash & ST Invts
Inventory
Debtors
Other Current Assets
Total Assets
9,651
0
561
0
64
80
10,355
9,651
0
649
0
66
43
10,408
9,651
0
715
0
71
8
10,444
9,651
0
747
0
71
8
10,477
ST Debt
Creditor
Other Current Liab
LT Debt
Other LT Liabilities
Unit holders funds
Minority Interests
Total Funds & Liabilities
0
64
322
0
0
9,969
0
10,355
0
66
332
0
0
10,010
0
10,408
0
71
356
0
0
10,016
0
10,444
0
72
360
0
0
10,045
0
10,477
(243)
561
(290)
649
(348)
715
(352)
747
1.8
1.6
0.0
NA
1.9
1.8
0.0
NA
1.9
1.8
0.0
NA
1.9
1.9
0.0
NA
Non-Cash Wkg. Capital

Net Cash/(Debt)
Ratio
Current Ratio (x)
Quick Ratio (x)
Z-Score (X)
ASIAN INSIGHTS
Page 30
VICKERS SECURITIES
Company Guide
Cash Flow Statement (Bt m)

FY Dec
2014A
2015F
2016F
2017F
Pre-Tax Income
Dep. & Amort.
Tax Paid
Associates &JV Inc/(Loss)
Chg in Wkg.Cap.
Other Operating CF
Net Operating CF
Net Invt in Properties
Other Invts (net)
Invts in Assoc. & JV
Div from Assoc. & JVs
Other Investing CF
Net Investing CF
Distribution Paid
Chg in Gross Debt
New units issued
Other Financing CF
Net Financing CF
Currency Adjustments
Chg in Cash
730
0
0
0
(871)
(3)
(144)
0
(402)
0
0
0
(402)
(553)
0
(29)
0
(582)
0
(1,129)
757
0
0
0
93
0
850
0
0
0
0
0
0
(761)
0
0
0
(761)
0
89
824
0
0
0
59
0
883
0
0
0
0
0
0
(817)
0
0
0
(817)
0
65
869
0
0
0
4
0
873
0
0
0
0
0
0
(841)
0
0
0
(841)
0
33
0.8
(0.1)
0.8
0.9
0.9
0.9
0.9
0.9
Operating CFPS (Bt)

Free CFPS (Bt)
ASIAN INSIGHTS
VICKERS SECURITIES
Page 31
CPN Retail Growth Property Fund

Edition 1 Version 1 | Bloomberg: CPNRF TB | Reuters: CPNRu.BK
18 Sep 2015
BUY
DIVIDEND HICCUP

Price Target : Bt18.00 (8% upside) (Prev Bt18.00)
Potential Catalyst: Strong rental reversion, converts to a REIT
Where we differ: We have assumed more conservative occupancy and
rental growth assumptions
Analyst
DPU to surge in 2016 and 2017. Major renovation is now

under way at CentralPlaza PInklao mall, which contributes
22% of the funds total revenue. We estimate DPU will drop
by 25% in 2015 because of revenue lost during the
renovation. But, DPU will surge in 2016 and 2017 after the
renovation is completed; the management estimates rents at
CentralPlaza Pinklao should increase by about 9-10%.
Price Relative
Bt
Relative Index
212
20.4
192
18.4
172
16.4
152
132
14.4
112
12.4
10.4
Sep-11
92
Sep-12
Sep-13
Sep-14
72
Sep-15
CPN Retail Growth Property Fund (LHS)


FY Dec (Bt m)
Gross Revenue
Net Property Inc
Total Return
Distribution Inc
EPU (Bt)
EPU Gth (%)
DPU (Bt)
DPU Gth (%)
NAV per shr (Bt)
PE (X)
P/NAV (x)
ROAE (%)
2014A
3,185
3,024
3,211
2,684
1.62
(2)
1.33
8
12.52
10.3
7.9
1.3
6.4
14.1

Consensus DPU (Bt):
Other Broker Recs:
2015F
2,948
2,776
3,483
2,373
1.57
(3)
1.00
(25)
13.02
10.6
6.0
1.3
6.0
12.3
2016F
3,616
3,414
3,004
3,004
1.36
(14)
1.26
27
13.18
12.3
7.6
1.3
6.0
10.4
2017F
3,970
3,715
3,297
3,297
1.49
10
1.39
10
13.32
11.2
8.3
1.3
5.3
11.2
0
1.17
B: 2
0
1.37
S: 1
0
1.43
H: 1
ASIAN INSIGHTS
www.dbsvickers.com
ed: SGC / sa: CS
Reiterate BUY, Bt18.00 TP (DCF valuation). CPNRF is Thailands

largest property fund and is one of the most liquid property
funds in Thailand. It has strong recurring income base from
four successful CentralPlaza shopping malls in diversified
locations. The fund now offers generous dividend yield of
6.0% for 2015 (payable quarterly), a hefty premium over Thai
10-year government bond yield of 2.8%. And yields should
rise to 7.7% in 2016 and 8.5% in 2017 following the
completion of major renovation at CentralPlaza Pinklao.
Conversion to REIT structure could lift future yields. CPNRF is

awaiting details on the total costs to convert from the existing
property fund structure to a REIT. The fund would like to
convert to a REIT and grow by acquiring more assets from
sponsor Central Pattana (CPN). With the larger trust size and
higher gearing allowed under the REIT structure, we estimate
distribution yield under a REIT structure would be higher.
Valuation:
Our target price for CPNRF is Bt18, based on discounted cash
flow (DCF) valuation methodology.
Key risks are (i) the lower-than-expected occupancy rate, and
(ii) weaker-than-expected rental rate reversion.
At A Glance
Mkt. Cap (Btm/US$m)
Major Shareholders
Central Pattana (%)
Mrs.Arunee Chan (%)
Government Savings Bank (%)
Free Float (%)
2,212
36,948 / 1,025
26.7
3.4
3.1
66.9
0.52
VICKERS SECURITIES
Company Guide

Earnings Drivers:
A portfolio of four successful malls in diversified locations.
CPNRF currently operates four successful shopping malls in
Thailand, three of which are located in Bangkok and one in
Chiangmai. The four malls are CentralPlaza Rama 2,
CentralPlaza Rama 3, CentralPlaza Pinklao, and CentralPlaza
Chiangmai Airport. Average occupancy rate at the four malls
had dropped to 90.9% at end-2Q15 from 96.6% at end2014, as CentralPlaza PInklao is under renovation.
Assets in the Portfolio

Assets
Leasable
Occupancy
(%)
Dec-14
Mar-15
Area
(Sqm)
Jun-15
Central Plaza Rama 2
88,038
96.5
95.6
96.0
37,324
93.8
90.8
90.7
Central Pinklao (Mall)
21,829
98.3
76.5
50.2
Central Pinklao (Office)
33,760
96.2
97.0
97.5
Central Chiangmai
37,307
98.9
97.5
96.7
218,258
96.6
93.4
90.9
Total
Rental Structure
Major renovation at CentralPlaza Pinklao. This project

currently contributes 27% of the funds total revenue. The
renovation includes improvements to the building and facade,
decoration of common areas, expansion of leasable area at
the mall by 5,820 sqm (27%), and revising merchandise mix
to meet customer needs. The renovation will be done in two
phases, covering 85% of the mall area in 2Q15-4Q15, and
the remaining 15% in 1Q16-2Q16. The mall will remain open
during the renovation period. Total investment cost for the
project is Bt350m, and estimated IRR is 11%.
Assets
Potential DPU hiccup in 2015. We estimate the funds DPU

will drop by 25% in 2015, given revenue lost during the
renovation. But, it will surge in 2016 and 2017 after the
renovation is completed. Management estimates rents would
increase by about 9-10% after the renovation.
3,500
Fixed
% of
Rate
Sales
52%
48%
71%
29%
Central Pinklao (Mall)
95%
5%
100%
0%
72%
28%
Central Pinklao (Office)

Central Chiangmai

Bt m
Rental rate reversion. CPNRF managed to renew and sign 81

new leases covering 10,268 sqm, or 5% of total leasable area
in 1H15 at average rental reversion rate of 5.8% p.a. This is
impressive considering the weak domestic consumption YTD.
Going forward, we have assumed CPNRF will grow rental rate
by about 5% p.a. Note that leases for 19% of leasable area
will expire in 2H15, 22% in 2016, and 23% in 2017.
102.5%
3,000
100.5%
2,500
98.5%
2,000
96.5%
1,500
94.5%
1,000
92.5%
500
90.5%
88.5%
2013A
2014A
Net Property Income
2015F
2016F
2017F
Converting to REIT could lift future yields. CPNRF is awaiting

further details on the transaction costs involved. The fund
would like to convert to a REIT and grow by acquiring more
assets from sponsor CPN. A REIT can gear up to 35% of total
assets and to 60% of its assets if it has an investment grade
credit rating, compared with 10% maximum gearing for a
property fund. We estimate the larger trust size and higher
gearing allowed under the REIT structure would lift
distribution yields.
Distribtuion Paid / Net Operating CF

(x)
1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
2013A
2014A
2015F
2016F
2017F
ASIAN INSIGHTS
VICKERS SECURITIES
Page 33
Company Guide
Balance Sheet:
Net debt amounted to Bt1.95bn, and net gearing reached
6.8% at end-2Q15. This is within the 10% maximum
gearing allowed for property funds.
6.0%
5.0%
4.0%

3.0%
2.0%
1.0%
0.0%
2013A
Conversion to a REIT structure. The successful conversion to a

REIT structure would mean the current Fund can gear up
further and rely less on equity financing. This should lift DPU
and yields.
Key Risks:
Political unrest & slowing economy. Political unrest and a
slowing economy could hurt consumer confidence and delay
spending, and in turn affect the potential for rental rate
hikes.
2014A
2015F
2016F
2017F
2016F
2017F
2016F
2017F
ROE (%)
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
Acquisition-led growth is stalled unless the Fund converts to

a REIT. CPNRF and all property funds can no longer increase
capital to acquire additional assets. To be able to grow the
fund size, the fund needs to convert to a REIT. Further
details, e.g. the related transaction costs, have yet to be
announced.
0.0%
2013A
2014A
2015F

10.0%
9.0%
8.0%
COMPANY BACKGROUND
CPNRF is Thailand's largest property fund by market CPNRF
is Thailand's largest property fund by market capitalisation.
The fund invests in leasehold rights to four retail assets with
a total gross area of 685,442 sqm and total leasable area of
218,258 sqm. The assets are CentralPlaza Rama 2,
CentralPlaza Rama 3, CentralPlaza Pinklao, and CentralPlaza
Chiangmai Airport. The remaining leasehold life of the
assets is currently 34.9 years. The fund was listed on the
Stock Exchange of Thailand on 23 August 2005. CPN is
the funds sponsor, a major shareholder with 26.7% stake,
and the Property Manager.
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
2013A
2014A
2015F
PB Band (x)
The followings show details of assets in CPNRFs portfolio

together with the appraised value and remaining leasehold
life of each asset.
Assets
Central Plaza Pinklao
Central Plaza Chiangmai Airport
Total
Appraised
Value
(Btm)
6,532
8,216
5,439
10,856
31,043
ASIAN INSIGHTS
Page 34
Remaining
Leasehold
(Years)
10.0
80.0
9.3
28.7
34.9
VICKERS SECURITIES
Company Guide
Key Assumptions
FY Dec
Leasable Area (Sqm)
Occupancy
Occupied Area (Sqm)
Average rents
(Bt/sqm/month)
Rental growth
Total revenue (Btm)
Dividend payout
2013A
2014A
2015F
2016F
2017F
182,204
97.2%
177,054
1218.86
9%
2,590
93%
218,539
92.5%
202,194
1312.74
8%
3,185
98%
218,258
85.2%
186,000
1320.85
1%
2,948
93%
224,078
94.0%
210,724
1423.83
8%
3,600
93%
224,078
96.2%
215,553
1526.95
7%
3,950
93%
2013A
2014A
2015F
2016F
2017F
1,062
622
906
1,146
640
933
522
3,185
1,180
680
292
792
2,944
1,239
752
1,040
831
3,862
1,300
786
1,248
873
4,207
40%
23%
10%
27%
100%
32%
19%
27%
22%
100%
31%
19%
30%
21%
100%
Segmental Breakdown
FY Dec
Revenues (Bt m)
Central Rama 2
Central Rama 3
Central Pinklao
Central Chiangmai Airport
Total
Revenue Breakdown
Central Rama 2
Central Rama 3
Central Pinklao
Central Chiangmai Airport
Total
100%
36%
20%
29%
16%
100%

FY Dec
2013A
2014A
2015F
2016F
2017F
2,590
(176)
2,413
(357)
97
(1)
538
2,691
0
0
0
2,691
2,691
(538)
2,152
3,185
(161)
3,024
(409)
112
(43)
527
3,211
0
0
0
3,211
3,211
(527)
2,684
2,948
(172)
2,776
(476)
118
(44)
1,111
3,483
0
0
0
3,483
3,483
(1,111)
2,373
3,616
(203)
3,414
(486)
119
(43)
0
3,004
0
0
0
3,004
3,004
0
3,004
3,970
(254)
3,715
(505)
120
(34)
0
3,297
0
0
0
3,297
3,297
0
3,297
3.1
3.5
12.9
93.0
93.2
103.9
83.1
23.0
25.3
19.3
100.5
94.9
100.8
84.3
(7.4)
(8.2)
8.5
93.0
94.2
118.2
80.5
22.7
23.0
(13.8)
93.0
94.4
83.1
83.1
9.8
8.8
9.7
93.0
93.6
83.0
83.0
13.8
12.8
16.2
13.4
12.7
15.2
13.8
11.4
2,155.7
14.1
12.6
10.9
60.3
12.3
11.1
7.6
51.7
10.4
9.3
9.5
67.9
11.2
10.1
10.3
94.9
Gross revenue
Property expenses
Net Property Income
Net Income
Tax
Minority Interest
Preference Dividend
Total Return
Growth & Ratio
Revenue Gth (%)
Net Inc Gth (%)
Dist to revenue (%)
to sales %)
ROAE (%)
ROA (%)
ROCE (%)
Int. Cover (x)
2,590
41%
24%
35%
Major renovation at
CentralPlaza Pinklao
ASIAN INSIGHTS
VICKERS SECURITIES
Page 35
Company Guide

FY Dec
2Q2014
3Q2014
Gross revenue
Property expenses
Net Property Income
Net Income
Tax
Minority Interest
Total Return
Growth & Ratio
Revenue Gth (%)
Net Inc Gth (%)
4Q2014
1Q2015
2Q2015
800
(28)
771
(107)
25
(9)
170
851
0
0
851
851
N/A
N/A
855
(28)
828
(111)
27
(16)
108
835
0
0
835
835
N/A
N/A
861
(30)
831
(134)
31
(15)
(38)
674
0
0
674
674
N/A
N/A
845
(27)
818
(136)
23
(15)
944
1,633
0
0
1,633
1,633
N/A
N/A
742
(28)
715
(132)
24
(17)
116
705
0
0
732
732
N/A
N/A
19
20
0
96.5
104.9
7
7
(2)
96.8
98.3
1
0
(19)
96.5
99.5
(2)
(2)
142
96.8
97.3
(12)
(13)
(55)
96.2
89.8

FY Dec
2013A
2014A
2015F
2016F
2017F
Other LT Assets
Cash & ST Invts
Inventory
Debtors
Total Assets
18,535
893
351
0
0
0
19,780
29,920
768
304
0
0
0
30,991
31,291
499
210
0
0
0
32,000
31,401
499
663
0
0
0
32,563
31,411
499
832
0
0
0
32,742
ST Debt
Creditor
Other Current Liab
LT Debt
Unit holders funds
Minority Interests
0
802
811
340
0
17,827
0
19,780
0
994
352
1,955
0
27,690
0
30,991
0
920
352
1,917
0
28,811
0
32,000
0
1,129
352
1,915
0
29,168
0
32,563
0
1,239
352
1,685
0
29,467
0
32,743

Net Cash/(Debt)
Ratio
Current Ratio (x)
Quick Ratio (x)
Z-Score (X)
(1,613)
11
(1,346)
(1,651)
(1,272)
(1,707)
(1,481)
(1,252)
(1,591)
(853)
0.2
0.2
1.8
8.9
0.2
0.2
6.4
6.4
0.2
0.2
6.0
6.8
0.4
0.4
6.0
6.3
0.5
0.5
5.3
6.3
Unrealized gain from asset

revaluation
Stable gearing
ASIAN INSIGHTS
Page 36
VICKERS SECURITIES
Company Guide

FY Dec
2013A
2014A
2015F
2016F
2017F
Pre-Tax Income
Dep. & Amort.
Tax Paid
Chg in Wkg.Cap.
Other Operating CF
Net Operating CF
Other Invts (net)
Other Investing CF
Net Investing CF
Distribution Paid
Chg in Gross Debt
New units issued
Other Financing CF
Net Financing CF
Chg in Cash
2,691
0
0
0
(32)
(538)
2,120
(97)
0
0
0
0
(97)
(1,990)
(95)
0
0
(2,085)
0
(62)
3,211
0
0
0
118
(527)
2,801
(10,742)
0
0
0
0
(10,742)
(2,480)
1,615
8,642
0
7,777
0
(163)
3,483
0
0
0
(74)
(1,111)
2,299
(260)
0
0
0
0
(260)
(2,363)
(38)
0
0
(2,401)
0
(363)
3,004
0
0
0
209
0
3,213
(110)
0
0
0
0
(110)
(2,647)
(2)
0
0
(2,649)
0
453
3,297
0
0
0
110
0
3,407
(10)
0
0
0
0
(10)
(2,998)
(230)
0
1
(3,227)
0
170
1.3
1.2
1.4
(4.0)
1.1
0.9
1.4
1.4
1.5
1.5
Operating CFPS (Bt)

Free CFPS (Bt)
Acquisition of
CentralPlaza
Chiangmai Airport

Target Price & Ratings History
17.70
Bt
S.No .
17.20
1:
2:
3:
4:
16.70
Ta rg e t
Pri c e
18.00
18.00
18.00
18.00
R a ti n g
Buy
Buy
Buy
Buy
2
16.20
Cl o s i n g
Pri c e
02 Mar 15
16.40
02 Apr 15
16.20
18 May 15
16.40
31 Aug 15
16.30
Da te
15.70
15.20
Sep-14
Jan-15
May-15
Not e : Share price and Target price are adjusted for corporate actions.
Source: DBS Vickers
ASIAN INSIGHTS
VICKERS SECURITIES
Page 37
Future Park Leasehold Property Fund

Edition 1 Version 1 | Bloomberg: FUTUREPF TB | Reuters: FUTUREPFu.BK
18 Sep 2015
BUY
STABLE INCOME AND YIELD

Potential Catalyst: Strong economic recovery could lift occupancy and
rents more than we assumed in our earnings model
Analyst
Wasu MATTANAPOTCHANART +662 657 7833
WasuM@th.dbsvickers.com
Rising mall traffic will support future rate hikes. Mall

traffic has been rising since 2006, except during the major
flooding in 2011 and 2013. Daily customer count has risen
from 122k in 2006 to 164k in 2014. We conservatively
forecast 2.2% increase in rental rate for this year because of
the slower economy, but assumed it will improve to 3.5% and
3.2% in FY16 and FY17, respectively, and stabilize at 3% from
FY18 onwards.
Price Relative
Bt
Relative Index
20.8
209
18.8
189
169
16.8
149
14.8
BUY with DCF-based TP of Bt22.30. Amid the current lowinterest-rate environment, the Fund offers attractive 7.1% yield
in FY15, higher than 10-year government bond yield of 2.65%
and dividend yield of 3.6% for DBS Thailand universe.
Supported by growing mall traffic, revenue growth should be
sustainable at c.3% p.a.
129
109
12.8
89
10.8
Sep-11
Sep-12
Sep-13
Future Park LH Prop Fund (LHS)

FY Dec (Bt m)
Gross Revenue
Net Property Inc
Total Return
Distribution Inc
EPU (Bt)
EPU Gth (%)
DPU (Bt)
DPU Gth (%)
NAV per shr (Bt)
PE (X)
P/NAV (x)
ROAE (%)
Sep-14
69
Sep-15
2014A
924
751
797
733
1.51
(2)
1.25
5
12.31
12.1
6.9
1.5
6.5
12.4

Consensus DPU (Bt):
Other Broker Recs:
2015F
954
767
781
750
1.47
(2)
1.27
2
12.52
12.3
7.0
1.5
5.7
11.9
2016F
987
794
780
780
1.47
0
1.33
4
12.68
12.4
7.3
1.4
4.8
11.7
2017F
1,021
821
810
810
1.53
4
1.38
4
12.84
11.9
7.6
1.4
4.0
12.0
N/A
B: 0
N/A
S: 0
N/A
H: 0
ASIAN INSIGHTS
www.dbsvickers.com
ed: SGC / sa: CS
Valuation:
We value FUTUREPF at Bt22.30, based on DCF valuation
(WACC: 6.9%, Terminal value of Bt0 at the end of 2041). Even
with conservative assumptions of 3% annual increase in rental
income and stable occupancy rate for most of the 27 years,
the Fund still offers 25% upside to our target price.
Leases for 40% of the Funds leasable area will expire in FY16.
While we expect occupancy rate to be stable and rents to
increase by 3.5% next year, the extended economic slowdown
could result in lower-than-expected lease renewals and rental
hikes.
At A Glance
Mkt. Cap (Btm/US$m)
Major Shareholders
Rangsit Plaza Co Ltd (%)
Thai Tapioca Dev Institute (%)
Bangkok Bank Pcl (%)
Free Float (%)
530
9,638 / 267
33.3
5.7
5.3
55.7
0.08
VICKERS SECURITIES
Company Guide
Bt m
900
86.0%
600
84.0%
500
82.0%
400
300
80.0%
200
78.0%
100
0
76.0%
2013A
2014A
2015F
Net Property Income
2016F
2017F
77%
10
76%
75%
74%
Net Property Income
2Q2015
78%
15
1Q2015
79%
20
4Q2014
80%
25
3Q2014
81%
30
2Q2014
82%
35
1Q2014
83%
40
4Q2013
84%
45
3Q2013
50
2Q2013
Bridge construction will not affect earnings

Rangsit Plaza, the other owner of Future Park Rangsit mall, is
closing FUTUREPFs share of leasable area (1,336 sqm) in
order to construct a bridge to link the old building and the
upcoming new phase. That is why occupancy rate at the main
area fell from 97% in 2014 to 92% in 2Q15. However, 2Q15
rental income (+1% y-o-y) was stable because of
compensation from Rangsit Plaza.
88.0%
700
1Q2013
Earnings Drivers:
Traffic to remain healthy
Customer traffic has been increasing since 2006, except
during the heavy flooding in 2011 and 2013. Daily customer
count has risen from 122k in 2006 to 164k in 2014, and
peaked at 165k in 1Q15. However, traffic fell 10% q-o-q to
148k in 2Q15 because of renovation work at Centrals mall
and part of Robinsons (total leasable area of 1,936 sqm)
from 20 April to 30 September 2015. Customer count is
expected to normalize to above 160k in 4Q15 and 2016.
800
Customer traffic (000 people)
Rental hikes to drive growth

Following the economic slowdown and lackluster rate
increases in 1Q15 (+4%) and 2Q15 (+1%), we conservatively
forecast 2.2% rental hike for this year, 3.5% and 3.2% in
FY16 and FY17, respectively, and 3% p.a. from FY18
onwards. Assuming occupancy rate is stable, total rental
income would grow at the the same rate as rents.
Opportunity for rental reversion
Of the total leasable area (59,986 sqm) of shopping space,
20% will see its leases expire in 2H15 and 40% in 2016. If
the economy grows strongly next year, the upcoming
contract renewals might lead to higher-than-expected rental
hike.
Revenue Breakdown 2014
Upside to occupancy rate at common space

FUTUREPF divides its leasable space into main area (56,986
sqm) and common area (8,514 sqm). The main areas
occupancy rate has been around 98% since 2011, and we
expect it to be the same going forward. The occupancy rate
for the common space was 85% in 2014, and we expect it to
gradually improve to 90% in 2019. Currently vacant space in
the common area leaves room for upside to our forecasts.
Lease expiry (excluding common space)
ASIAN INSIGHTS
VICKERS SECURITIES
Page 39
Company Guide
Balance Sheet:
As of end-2Q15, FUTUREPF had Bt450m debt, representing
only 6.8% of NAV and 60% of FY15F net investment income.
The fund is scheduled to repay Bt60m every year, so the debt
will be fully repaid by 2022.
High yield in the low-rate environment
FUTUREPF is offering attractive 7.1-7.4% yields in FY15FFY16F, compared to 2.65% yield for 10-year government
bonds and 3.6-3.9% dividend yield for stocks under DBS
Thailand coverage (75% of the SETs market cap).
ROE (%)
12.0%
Key Risks:
Non-renewal of leases
Leases for 40% of the Funds leasable area will expire in
FY16. While we expect occupancy rate to be stable and
rents to increase by 3.5% next year, the extended economic
slowdown could result in lower-than-expected lease
renewals and rental hikes.
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
2013A
COMPANY BACKGROUND
FUTUREPF is a property fund and part owner of the lease to
Future Park Rangsit, a shopping mall in Rangsit, Bangkok,
Thailand. It collects rent from common (8,514 sqm) and
shopping (59,986 sqm) areas with a remaining leasehold life
of 27.5 years. The Fund has a solid track record of income
growth; revenue grew at a 3-year average of 11.6% despite
the political instability in FY14 (3.6% growth). Historically,
FUTUREPF raises rents by 2.5%-3.7% per year.
Ninety-three percent of the leases (shopping space only) are
under fixed-rate rental contracts while the rest 7% is under
revenue-sharing scheme.
2014A
2015F
2016F
2017F
Lease term (excluding common space)
PB Band (x)
ASIAN INSIGHTS
Page 40
VICKERS SECURITIES
Company Guide
Key Assumptions
FY Dec
2013A
2014A
2015F
2016F
2017F
Leasable Area - main (Sqm)

Occupancy
56,906
98%
56,986
97%
56,986
98%
56,986
98%
56,986
98%
Leasable Area - common

(Sqm)
Occupancy
8,514 86% 8,514 85% 8,514 87% 8,514 87% 8,514 88%
Average rental rate

(Bt/sqm/month)
Growth
of rental rate
Rental revenue (Btm)
1,332
10.7%
892
1,393
4.5%
924
1,423
2.2%
954
1,473
3.5%
987
1,524
3.4%
1,021

FY Dec
2013A
2014A
2015F
2016F
2017F
892
(178)
713
(14)
11
(17)
117
811
0
0
0
811
811
(117)
683
924
(173)
751
(14)
11
(15)
64
797
0
0
0
797
797
(64)
733
954
(187)
767
(14)
11
(14)
31
781
0
0
0
781
781
(31)
750
987
(193)
794
(15)
11
(11)
0
780
0
0
0
780
780
780
1,021
(200)
821
(15)
11
(8)
0
810
0
0
0
810
810
810
10.7
10.7
10.2
91.8
80.0
91.0
70.3
3.6
5.3
(1.7)
90.2
81.3
86.3
71.5
3.3
2.2
(2.0)
90.0
80.4
81.9
70.8
3.5
3.5
(0.2)
90.0
80.4
79.0
71.1
3.4
3.4
3.9
90.0
80.4
79.3
71.4
1.5
1.5
1.5
1.5
1.5
13.0
11.3
10.3
41.7
12.4
10.9
10.6
48.9
11.9
10.6
10.8
54.1
11.7
10.5
11.1
72.7
12.0
10.9
11.4
107.2
Gross revenue
Property expenses
Net Property Income
Net Income
Tax
Minority Interest
Preference Dividend
Total Return
Less: Non-cash gain
Growth & Ratio
Revenue Gth (%)
Net Inc Gth (%)
Dist to revenue (%)
to sales %)
ROAE (%)
ROA (%)
ROCE (%)
Int. Cover (x)
Asset revaluation gain
ASIAN INSIGHTS
VICKERS SECURITIES
Page 41
Company Guide

FY Dec
2Q2014
3Q2014
Gross revenue
Property expenses
Net Property Income
Net Income
Tax
Minority Interest
Total Return
Growth & Ratio
Revenue Gth (%)
Net Inc Gth (%)
4Q2014
1Q2015
2Q2015
226
(41)
186
(4)
1
(4)
1
181
0
0
181
181
N/A
180
233
(39)
194
(3)
4
(4)
30
221
0
0
221
221
N/A
191
236
(49)
187
(4)
2
(3)
2
184
0
0
184
184
N/A
182
236
(45)
191
(3)
1
(3)
31
216
0
0
216
216
N/A
186
228
(43)
186
(4)
2
(3)
4
185
0
0
185
185
N/A
181
(1)
1
(14)
82.1
90.1
3
4
22
83.2
90.2
1
(4)
(17)
79.2
90.2
0
2
17
81.1
90.1
(3)
(3)
(14)
81.3
90.9

FY Dec
2013A
2014A
2015F
2016F
2017F
Other LT Assets
Cash & ST Invts
Inventory
Debtors
Total Assets
6,754
N/A
487
0
41
12
7,294
6,820
N/A
490
0
44
12
7,366
6,851
N/A
488
0
44
12
7,394
6,851
N/A
516
0
41
12
7,419
6,851
N/A
544
0
41
12
7,447
ST Debt
Creditor
Other Current Liab
LT Debt
Unit holders funds
Minority Interests
0
62
350
510
0
6,372
0
7,294
0
25
372
450
0
6,519
0
7,366
0
25
351
390
0
6,629
0
7,394
0
25
351
330
0
6,713
0
7,419
0
25
351
270
0
6,801
0
7,447

Net Cash/(Debt)
Ratio
Current Ratio (x)
Quick Ratio (x)
Z-Score (X)
(359)
(23)
(341)
40
(320)
98
(324)
186
(324)
274
1.3
1.3
7.4
0.0
1.4
1.3
6.5
0.0
1.4
1.4
5.7
0.0
1.5
1.5
4.8
0.0
1.6
1.6
4.0
0.0
ASIAN INSIGHTS
Page 42
VICKERS SECURITIES
Company Guide

FY Dec
Pre-Tax Income
Dep. & Amort.
Tax Paid
Chg in Wkg.Cap.
Other Operating CF
Net Operating CF
Other Invts (net)
Other Investing CF
Net Investing CF
Distribution Paid
Chg in Gross Debt
New units issued
Other Financing CF
Net Financing CF
Chg in Cash
Operating CFPS (Bt)
Free CFPS (Bt)
2013A
2014A
2015F
2016F
2017F
811
0
0
0
(33)
(117)
661
(9)
(161)
0
0
0
(169)
(526)
(60)
0
0
(587)
0
(95)
797
0
0
0
(18)
(64)
715
(2)
(11)
0
0
0
(13)
(650)
(60)
0
0
(710)
0
(8)
781
0
0
0
(21)
(31)
729
0
(30)
0
0
0
(30)
(671)
(60)
0
0
(731)
0
(33)
780
0
0
0
4
0
783
0
(20)
0
0
0
(20)
(695)
(60)
0
0
(755)
0
8
810
0
0
0
0
0
810
0
(20)
0
0
0
(20)
(722)
(60)
0
0
(782)
0
8
1.3
1.2
1.4
1.3
1.4
1.4
1.5
1.5
1.5
1.5
ASIAN INSIGHTS
VICKERS SECURITIES
Page 43

Edition 1 Version 1 | Bloomberg: IMPACT TB | Reuters: IMPACT.BK
18 Sep 2015
BUY
TAPPING ON A GROWING MICE MARKET

Potential Catalyst: Increase in occupancy rate and strong potential
growth
Analyst
Price Relative
Bt
Relative Index
12.6
206
12.1
186
11.6
Recommend BUY, Bt12 TP (DCF Valuation). The interim

dividend declared for the first quarter of FY16 is Bt0.175/unit.
This implies 6.3% annualised yield, which is much higher than
current Thai 10-year government bond yields. And yield are
forecast to rise along with net earnings, to 6.4% in FY16 and
6.6% in FY17.
Owns completed and freehold assets
The REIT owns the largest exhibition and convention assets in
ASEAN region covering 66% market share in Thailand (at end
March). The REIT has right of first refusal to future assets
developed by IMPACT and with its freehold rights over the
assets, the REIT will enjoy benefit from assets appreciation in
the future.
166
11.1
146
10.6
126
10.1
106
9.6
9.1
Sep-14
86
Dec-14
Mar-15
Jun-15
Impact Growth Real Estate Investment Trust (LHS)


FY Mar (Bt m)
Revenue
EBITDA
Pre-tax Profit
Net Profit
Net Pft (Pre Ex.)
EPS (Bt)
EPS Pre Ex. (Bt)
EPS Gth (%)
EPS Gth Pre Ex (%)
Diluted EPS (Bt)
Net DPS (Bt)
BV Per Share (Bt)
PE (X)
PE Pre Ex. (X)
P/Cash Flow (X)
EV/EBITDA (X)
Net Div Yield (%)
P/Book Value (X)
Net Debt/Equity (X)
ROAE (%)
Earnings Rev (%):
Consensus EPS (Bt):
Other Broker Recs:
2015A
1,110
725
632
632
628
0.43
0.42
nm
nm
0.42
0.42
10.80
26.3
26.5
nm
27.5
3.8
1.0
0.2
N/A
2016F
1,790
1,303
1,111
1,110
1,110
0.75
0.75
76
77
0.75
0.71
10.82
15.0
15.0
15.7
15.3
6.4
1.0
0.2
6.9
2017F
1,861
1,347
1,154
1,154
1,154
0.78
0.78
4
4
0.78
0.74
10.87
14.4
14.4
14.3
14.7
6.6
1.0
0.2
7.2
N/A
B: 0
N/A
S: 0
N/A
H: 0
ASIAN INSIGHTS
www.dbsvickers.com
ed: SGC / sa: CS
Strong growth outlook

We expect growth to be driven by (i) revenues from a
diversified group of customers, (ii) the growing MICE (Meeting
Incentive Convention and Exhibition) market, supported by
higher domestic demand and the AEC initiative, and (iii)
acquisition of new assets.
Accessibility by MRT pink line
The MRT pink line (Khae Rai Min Buri) will run past Mueng
Thong Thani, where the REITs assets are located. This would
drive access traffic, and in turn, boost asset value.
Valuation:
We value IMPACT at Bt12, based on DCF valuation.
Key risk is a drop in occupancy rate at the REITs assets as a
result of a slower economy and political and safety issues.
At A Glance
Mkt. Cap (Btm/US$m)
Major Shareholders
Impact Exhibition Management Co Ltd (%)
Ayudhya Allianz Cp Life Assur (%)
Free Float (%)
1,483
16,604 / 461
50.00
2.93
2.23
48.3
0.35
VICKERS SECURITIES
Company Guide

Earnings Drivers:
Higher occupancy rates. The REIT expects overall occupancy
rate to improve to 58%-63% over the longer-term, driven by
the growing MICE market, supported by higher domestic
demand and the AEC initiative. Furthermore, the REIT is able
to attract and retain customers because of its strategicallylocated assets with full facilities. IMPACT currently has 66%
of the total MICE market share in Thailand (at end March).
This indicates strong earnings growth ahead.
Higher ARR (Average Rental Rate). The management plans to
raise rents for new leases and renewals by 4%-10%
depending on current rent, rental period, and other factors.
The REITs diversified asset offering gives it flexibility to meet
demand for a large range of meetings and exhibitions.
Specifically, the REIT has a major competitive advantage in
being able to offer the space for meetings and exhibitions
that require a large area. The REIT is also targeting to grow
the international customer segment because they can
normally charge higher rental rates. Hence, we expect ARR to
increase by 5%-7% y-o-y.
Cost-saving projects. The REIT is trying to keep cost of
services at less than 15% of total service income (14.2% in
1Q15). This has led to several cost-saving initiatives that were
implemented since last year, including switching to LED light
bulbs, improving efficiency of the cooling tower. The REIT is
also considering solar panel installations in parking lots and
TES (Thermal Energy System) to reduce electricity costs.
ARR
Customer Segment breakdown for FY14/15
Acquisitions in 2016. The REIT will acquire three key assets in

2016 with a total value of Bt2.5-3bn: i) Novotel Bangkok
IMPACT (380 rooms, occupancy rate 75-90%, average room
rate Bt2,500/night); ii) The Geneva office building (50,000
sqm, occupancy rate c.85%, rent Bt280-340/sqm/month);
and iii) indoor car park near the Geneva building.
Furthermore, BLAND is constructing an IBIS hotel (587 rooms
with average room rate of Bt1,000/night) which may be sold
to the REIT when completed. These suggest strong earnings
growth from 2016 onwards.
NAV
ASIAN INSIGHTS
VICKERS SECURITIES
Page 45
Company Guide
Leverage & Asset Turnover (x)
Balance Sheet:
Investment properties accounted for 96% of total assets at
the end of June. The properties will be revalued annually. The
REIT has a strong balance sheet with a low leverage ratio of
0.24x at end June, represented by Bt3.9bn long-term loans.
However, leverage could surge if the REIT decides to finance
2016 acquisitions with debt. Since incorporation, the fund
has paid out an average of 96% of distributable earnings
with total amount of Bt0.595 per unit, and the management
plans to retain this.
Improvement in overall occupancy rate. The REITs average
occupancy rate is still not stable (55% in FY14, 49% in 1Q15)
and could miss its latest target of 58-63%. Hence, occupancy
rate will be a key revenue and earnings driver in the future.
Key Risks:
Slowing economy, political turmoil and safety issues. These
could lead to lower occupancy rates at the REITs assets,
which would reduce investment income.
ROE (%)
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
COMPANY BACKGROUND
IMPACT is one of Thailands leading property funds. The
Fund has invested in IMPACT Muang Thong Thani, the
largest exhibition and convention center in South East Asia,
covering a total exhibition area of over 122,165 sqm. The
REITs assets are i) IMPACT Arena, ii) IMPACT Forum, iii)
IMPACT Exhibition Hall 1-8, and iv) IMPACT Challenger.
Customers of the REIT can be split into three main
segments: Public Sector, Domestic Private Sector and
International Private Sector.
The REITs revenue is driven by occupancy rate which can be
affected by economic, political and safety issues, and rental
rates. The REIT absorbs the operating expenses and the fund
management fees and capital expenditures, but the REITs
profit is exempted from tax. The REIT is able to acquire new
assets in the future in accordance with regulations.
2016F
2017F
Forward PE Band (x)
PB Band (x)
ASIAN INSIGHTS
Page 46
VICKERS SECURITIES
Company Guide
Key Assumptions
FY Mar
Occupancy rate (%)

Cost of services (%)
Fund management fee
Dividend
payout ratio
(%)
(%)
2013NA
2014NA
2015A
2016F
2017F
54.6%
13.6%
15.2%
99%
54.8%
13.6%
13.7%
95%
54.8%
13.6%
14.2%
95%
54.8%
13.6%
21.3%
95%
54.8%
13.6%
22.9%
95%
2015A
2016F
2017F
1,110
(151)
959
(237)
722
3
0
(97)
4
632
0
0
0
632
628
725
1,790
(243)
1,547
(246)
1,300
3
0
(193)
0
1,111
0
0
0
1,110
1,110
1,303
1,861
(253)
1,609
(265)
1,343
3
0
(193)
0
1,154
0
0
0
1,154
1,154
1,347
N/A
nm
nm
nm
61.3
79.9
80.2
76.9
4.0
3.3
3.3
3.9
86.4
65.0
56.9
N/A
N/A
N/A
96.4
7.5
86.4
72.7
62.0
6.9
5.4
6.5
95.0
6.7
86.4
72.2
62.0
7.2
5.6
6.7
95.0
7.0

FY Mar
Revenue
Cost of Goods Sold
Gross Profit
Other Opng (Exp)/Inc
Operating Profit
Associates & JV Inc
Pre-tax Profit
Tax
Minority Interest
Preference Dividend
Net Profit
Net Profit before Except.
EBITDA
Growth
Revenue Gth (%)
EBITDA Gth (%)
Opg Profit Gth (%)
Net Profit Gth (Pre-ex) (%)
Margins & Ratio
Gross Margins (%)
Opg Profit Margin (%)
Net Profit Margin (%)
ROAE (%)
ROA (%)
ROCE (%)
Div Payout Ratio (%)
Net Interest Cover (x)
ASIAN INSIGHTS
VICKERS SECURITIES
Page 47
Company Guide

FY Mar
2Q2015
3Q2015
4Q2015
1Q2016
4
(1)
3
(4)
0
1
0
0
0
1
0
0
1
1
1
561
(78)
483
(91)
393
1
0
(48)
2
347
0
0
347
345
394
545
(72)
472
(143)
329
1
0
(49)
2
284
0
0
284
282
330
497
(71)
427
(116)
310
1
0
(47)
2
266
0
0
266
264
311
N/A
nm
nm
nm
13,858.5
56,560.7
nm
44,943.4
(2.9)
(16.2)
(16.2)
(18.5)
(8.7)
(5.9)
(5.7)
(6.2)
86.7
(1.7)
19.1
86.1
70.0
61.9
86.7
60.4
52.1
85.8
62.4
53.5
2015A
2016F
2017F
Net Fixed Assets

Invts in Associates & JVs
Other LT Assets
Cash & ST Invts
Inventory
Debtors
Total Assets
19,603
0
0
607
0
180
14
20,404
19,603
0
0
590
0
291
0
20,484
19,603
0
0
663
0
302
0
20,568
ST Debt
Creditor
Other Current Liab
LT Debt
Shareholders Equity
Minority Interests
Total Cap. & Liab.
0
79
335
3,900
84
16,005
0
20,404
0
0
541
3,900
0
16,043
0
20,483
0
0
562
3,895
0
16,111
0
20,568

Net Cash/(Debt)
Debtors Turn (avg days)
Creditors Turn (avg days)
Inventory Turn (avg days)
Asset Turnover (x)
Current Ratio (x)
Quick Ratio (x)
Net Debt/Equity (X)
Net Debt/Equity ex MI (X)
Capex to Debt (%)
Z-Score (X)
(221)
(3,293)
N/A
N/A
N/A
NM
1.9
1.9
0.2
0.2
0.0
NA
(250)
(3,310)
48.0
59.7
N/A
0.1
1.6
1.6
0.2
0.2
0.0
NA
(260)
(3,232)
58.1
N/A
N/A
0.1
1.7
1.7
0.2
0.2
0.0
NA
Revenue
Cost of Goods Sold
Gross Profit
Other Oper. (Exp)/Inc
Operating Profit
Associates & JV Inc
Pre-tax Profit
Tax
Minority Interest
Net Profit
Net profit bef Except.
EBITDA
Growth
Revenue Gth (%)
EBITDA Gth (%)
Opg Profit Gth (%)
Net Profit Gth (Pre-ex) (%)
Margins
Gross Margins (%)
Opg Profit Margins (%)
Net Profit Margins (%)
FY Mar
ASIAN INSIGHTS
Page 48
VICKERS SECURITIES
Company Guide

FY Mar
Pre-Tax Profit
Dep. & Amort.
Tax Paid
Assoc. & JV Inc/(loss)
Chg in Wkg.Cap.
Other Operating CF
Net Operating CF
Capital Exp.(net)
Other Invts.(net)
Div from Assoc & JV
Other Investing CF
Net Investing CF
Div Paid
Chg in Gross Debt
Capital Issues
Other Financing CF
Net Financing CF
Chg in Cash
Opg CFPS (Bt)
Free CFPS (Bt)
2015A
2016F
2017F
632
0
0
0
(18,355)
(4)
(17,727)
0
(402)
0
0
0
(402)
(341)
3,900
15,715
0
19,274
0
1,144
0.4
(12.0)
1,111
0
0
0
(55)
0
1,056
0
0
0
0
0
0
(1,073)
0
0
0
(1,073)
0
(17)
0.7
0.7
1,154
0
0
0
10
0
1,164
0
0
0
0
0
0
(1,086)
(5)
0
0
(1,090)
0
73
0.8
0.8
ASIAN INSIGHTS
VICKERS SECURITIES
Page 49

Edition 1 Version 1 | Bloomberg: LHSC TB | Reuters: LHSCu.BK
18 Sep 2015
BUY
MODERATE GROWTH POTENTIAL

Recommend BUY, Bt10.4 TP (DCF valuation). LHREIT has

declared Bt0.022/unit interim dividend for the first half of
FY15. This implies 7.9% annualised yield, higher than the
current Thai 10-year government bond yield of 3.0%. Yields
are forecast to rise along with net earnings, to 7.0% in FY16
and 7.0% in FY17.
Prime location, easy accessibility
The REIT owns Terminal 21, a retail mall with 34,058 sqm of
leasable space, including the food court. The asset is located in
the middle of a major business district (Asoke District) where
there are large office buildings and hotels. Terminal 21 is easily
accessible by both MRT and BTS, which will continue to drive
traffic to the store.
Potential Catalyst: Moderate earnings growth

Analyst
Price Relative
Bt
Relative Index
204
11.6
184
11.1
164
10.6
144
10.1
124
9.6
104
9.1
Dec-14
84
Mar-15
Jun-15
LH Shopping Centers Leasehold (LHS)


FY Dec (Bt m)
Gross Revenue
Net Property Inc
Total Return
Distribution Inc
EPU (Bt)
EPU Gth (%)
DPU (Bt)
DPU Gth (%)
NAV per shr (Bt)
PE (X)
P/NAV (x)
ROAE (%)
2014A
26
13
12
0
0.02
nm
0.00
nm
10.22
424.2
0.0
1.0
18.2
N/A

Consensus DPU (Bt):
Other Broker Recs:
2015F
1,036
442
400
372
0.82
3,242
0.76
nm
10.28
12.7
7.3
1.0
18.2
8.0
2016F
1,048
447
402
373
0.82
0
0.77
0
10.34
12.6
7.4
1.0
18.2
8.0
2017F
1,056
450
405
377
0.83
1
0.77
1
10.40
12.5
7.4
1.0
18.2
8.0
N/A
B: 0
N/A
S: 0
N/A
H: 0
ASIAN INSIGHTS
www.dbsvickers.com
ed: SGC / sa: CS
Unique theme and proactive marketing

Terminal 21 differentiates itself from other malls with its
unique concept of offering shoppers the experience of
shopping in major cities around the world, all under one roof.
They also have an attractive mix of retail and F&B offering to
attract both local customers and tourists.
Mild growth outlook
Occupancy is currently close to 98% of total leasable area.
Hence, we expect growth to be mostly driven by positive rental
reversions and an increase in the share of variable rent
contracts (i.e. as a % of store turnover).
Valuation:
We value LHSC at Bt11.4, based on DCF valuation.
Key risk is a drop in occupancy rate as a result of a slower
economy and political and safety issues, and lower-thanexpected average rental rate.
At A Glance
Mkt. Cap (Btm/US$m)
Major Shareholders
Land and Houses Pcl. (%)
GIC PRIVATE LIMITED (%)
Free Float (%)
488.06
4,978 / 138
9.0
6.0
6.0
72.9
0.07
VICKERS SECURITIES
Company Guide
ARR and Occupancy rate
Earnings Drivers:
Higher ARR (Average Rental Rate). The leases are divided into
two types: (i) fixed rate contracts which accounts for 85% of
total rental income, and (ii) variable rate contracts which are
mostly signed with the F&B and cinema operators. The fixedrate contracts are normally for one to three years, with a rent
review upon renewal. The variable-rate contracts are linked to
the revenues generated by the lessees. We expect overall ARR
to increase by 10% every three years.
High occupancy rates. The REITs portfolio occupancy rate is
currently at 98% of total leasable space with 588 lessees. We
expect occupancy rate to be stable or reach 100% in some
months, because the convenient access and stylish interior
design of the property will attract both local customers and
tourists. Hence, earnings growth should remain relatively
stable in the near future.
Development in the surrounding area. The REITs asset is

located in one of Bangkoks major business districts. It stands
between office buildings, hotels, and condominiums. Given
easy access to the Asoke District, there are many property
development projects, including condominiums and malls.
These will drive traffic to the district, as well as Terminal 21,
which suggests growth ahead.
NAV
Rent opportunity in common area. The REIT also has a

common (1,600 sqm) available for rental for special events,
such as promotional product fairs that could run from a few
days to a month. If the REIT expands the common area, there
is a room for upside to our forecasts.
Area breakdown
ASIAN INSIGHTS
VICKERS SECURITIES
Page 51
Company Guide
Balance Sheet:
Investment properties accounted for 90% of the REITs total
assets end June. The REITs leverage ratio is only 0.11x,
represented by Bt1.1bn long-term loans. The low leverage,
indicates a strong balance sheet. The REIT has no plans to
acquire new assets in the near-term, which means net
gearing will drop as the REIT starts to repay the loan. Since
incorporation in December 2014, the REIT payout has been
c.90% of distributable earnings, or Bt0.022 per unit, implying
0.2% dividend yield (based on IPO price). The REIT will raise
dividend payout ratio to 95% in the future.

19.0%
18.0%
17.0%
16.0%
15.0%
14.0%
13.0%
12.0%
11.0%
10.0%
2014A
2015F
2016F
2017F
ROE (%)

Higher ARR. The REITs occupancy is expected to be stable, or
reach 100% in some months. Hence, the key revenue and
earnings drivers would be the ability to increase ARR.
7.0%
6.0%
5.0%
4.0%
Key Risks:
Political turmoil, safety issues and slowing economy. The
political and safety issues could lead to lower traffic at
Terminal 21, which could drive down occupancy rates. And
a slowing economy would make it challenging for the REIT
to increase rents. These would reduce investment income.
3.0%
2.0%
1.0%
0.0%
2015F
2016F
2017F
COMPANY BACKGROUND
LH Shopping Centers Leasehold Real Estate Investment Trust
(LHSC) was founded in December 2014 with total registered
capital of Bt4.978bn.
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
LHSC has signed a 26-year lease agreement for Terminal 21,

the unique and stylish shopping mall covering an area of
97,905 sqm, comprising 34,058 sqm of leasable space,
34,584 sqm of common area, and 29,263 sqm of parking
space. The lease ends on 31 Aug 2040.
The REITs revenue is driven by occupancy and rental rates,
which can be affected by economic, political and safety
issues. The REIT absorbs all cost of services, operating
expenses and fund management fees. The REITs profit is
exempted from tax. The REIT can acquire new assets in the
future in accordance with regulations.
2.0%
1.0%
0.0%
2014A
2015F
2016F
2017F
PB Band (x)
Land and House PCL, GIC Private Limited and Social Security
Office are the major unit shareholders with 9%, 6% and
6% stake, respectively.
ASIAN INSIGHTS
Page 52
VICKERS SECURITIES
Company Guide
Key Assumptions
FY Dec
2014A
2015F
2016F
2017F
Net leasable area (sqm)

ARR (Bt/sqm/month)
Occupancy rate (%)
Margin (%)
Dividend payout ratio (%)
31,622
1,760
98%
45%
0%
31,622
2,112
98%
37%
93%
31,622
2,112
98%
37%
93%
31,622
2,112
98%
37%
93%

FY Dec
2014A
2015F
2016F
2017F
26
(13)
13
0
0
(1)
0
12
0
0
0
12
14
0
14
1,036
(594)
442
(3)
2
(40)
0
400
0
0
0
400
400
0
400
1,048
(601)
447
(3)
2
(44)
0
402
0
0
0
402
402
0
402
1,056
(606)
450
(3)
2
(44)
0
405
0
0
0
405
405
0
405
N/A
nm
nm
0.0
49.9
45.2
0.0
3,811.5
3,245.2
3,242.4
93.0
42.6
38.6
35.9
1.2
1.2
0.4
93.0
42.6
38.3
35.6
0.7
0.7
0.9
93.0
42.6
38.4
35.7
1.6
0.3
0.3
0.3
N/A
N/A
N/A
15.7
8.0
6.0
6.9
10.9
8.0
6.0
6.9
10.1
8.0
6.0
6.9
10.2
Gross revenue
Property expenses
Net Property Income
Net Income
Tax
Minority Interest
Preference Dividend
Total Return
Growth & Ratio
Revenue Gth (%)
Net Inc Gth (%)
Dist to revenue (%)
to sales %)
ROAE (%)
ROA (%)
ROCE (%)
Int. Cover (x)
ASIAN INSIGHTS
VICKERS SECURITIES
Page 53
Company Guide

FY Dec
Gross revenue
Property expenses
Net Property Income
Net Income
Tax
Minority Interest
Total Return
Growth & Ratio
Revenue Gth (%)
Net Inc Gth (%)
4Q2014
1Q2015
2Q2015
26
(13)
13
0
0
(1)
0
12
0
0
12
12
0
12
270
(153)
117
(3)
0
(10)
0
104
0
0
104
104
0
104
274
(159)
115
(3)
0
(10)
0
103
0
0
103
103
0
103
N/A
nm
nm
49.9
0.0
919
784
667
N/A
0.0
2
(1)
(1)
44.1
181.0

FY Dec
2014A
2015F
2016F
2017F
Other LT Assets
Cash & ST Invts
Inventory
Debtors
Total Assets
5,942
0
509
0
8
225
6,684
5,942
0
533
0
27
225
6,726
5,942
0
561
0
27
225
6,755
5,942
0
590
0
27
225
6,783
ST Debt
Creditor
Other Current Liab
LT Debt
Unit holders funds
Minority Interests
0
14
291
1,080
309
4,990
0
6,684
0
29
291
1,080
309
5,018
0
6,726
0
29
291
1,080
309
5,046
0
6,755
0
29
291
1,080
309
5,075
0
6,783

Net Cash/(Debt)
Ratio
Current Ratio (x)
Quick Ratio (x)
Z-Score (X)
(72)
(571)
(68)
(547)
(68)
(519)
(68)
(490)
2.4
1.7
18.2
NA
2.5
1.8
18.2
NA
2.5
1.8
18.2
NA
2.6
1.9
18.2
NA
ASIAN INSIGHTS
Page 54
VICKERS SECURITIES
Company Guide

FY Dec
2014A
2015F
2016F
2017F
Pre-Tax Income
Dep. & Amort.
Tax Paid
Chg in Wkg.Cap.
Other Operating CF
Net Operating CF
Other Invts (net)
Other Investing CF
Net Investing CF
Distribution Paid
Chg in Gross Debt
New units issued
Other Financing CF
Net Financing CF
Chg in Cash
12
0
0
0
381
0
393
(5,942)
(389)
0
0
0
(6,331)
0
1,080
4,978
0
6,058
0
120
400
0
0
0
(4)
0
396
0
0
0
0
0
0
(372)
0
0
0
(372)
0
24
402
0
0
0
0
0
401
0
0
0
0
0
0
(373)
0
0
0
(373)
0
28
405
0
0
0
0
0
405
0
0
0
0
0
0
(377)
0
0
0
(377)
0
28
0.0
(11.4)
0.8
0.8
0.8
0.8
0.8
0.8
Operating CFPS (Bt)

Free CFPS (Bt)
ASIAN INSIGHTS
VICKERS SECURITIES
Page 55

Edition 1 Version 1 | Bloomberg: POPF TB | Reuters: POPFu.BK
18 Sep 2015
BUY
ATTRACTIVE DIVIDEND YIELD

BUY, Bt14.0 TP (DCF valuation). The Fund has declared

Bt0.262/unit interim dividend for 2Q15; we are expecting
8.1% dividend yield for FY15F. This is higher than the current
Thai 10-year government bond yield of 3.0% and dividend
yield of 3.6% for DBS Thailand universe. And, yields will rise
along with net earnings, to 8.3% in FY16 and 8.8% in FY17.
Potential Catalyst: Rental rate hike and healthy occupancy rate

Analyst
Diversified, prime location of assets

The Fund has leased three assets in different locations: (i) UBC
II Building in Prompong, (ii) Ploenchit Center Building in
Ploenchit, and (iii) Bangna Tower. The diverse locations allow
the Fund to capture rising traffic in several areas and minimise
asset concentration risk (to avoid income being disrupted at all
assets by a single event). This helps to generate stable income.
Price Relative
Bt
Relative Index
16.4
210
15.4
190
14.4
170
13.4
150
12.4
130
11.4
110
10.4
90
9.4
8.4
Sep-11
Sep-12
Sep-13
Prime Office LH Prop Fund (LHS)

FY Dec (Bt m)
Gross Revenue
Net Property Inc
Total Return
Distribution Inc
EPU (Bt)
EPU Gth (%)
DPU (Bt)
DPU Gth (%)
NAV per shr (Bt)
PE (X)
P/NAV (x)
ROAE (%)
Sep-14
70
Sep-15
2014A
689
481
422
395
0.82
(21)
1.04
2
11.48
16.2
7.8
1.2
7.4
8.4

Consensus DPU (Bt):
Other Broker Recs:
2015F
922
665
546
546
1.13
38
1.08
3
11.55
11.7
8.1
1.2
7.3
9.8
2016F
964
679
561
561
1.17
3
1.11
3
11.61
11.4
8.3
1.1
6.9
10.1
2017F
1,019
715
595
595
1.24
6
1.17
6
11.69
10.8
8.8
1.1
6.5
10.6
1.06
B: 0
1.10
S: 0
N/A
H: 0
ASIAN INSIGHTS
www.dbsvickers.com
ed: SGC / sa: CS
Convenient access
Both the UBC II Building and Ploenchit Center are located in
prime locations and accessible by BTS. And, Bangna Tower is
on Bangna Trad Road, one of the main transportation routes
for goods, and is only 20-km from Suvarnabhumi Airport.
Consequently, traffic at these assets is supported by easy
access.
Potential growth outlook
Portfolio occupancy has been sustainable at 96-99%, and
considering strong demand for the assets, the Fund expects
average rental rate to increase by 10-15% every three years.
Valuation:
We value POPF at Bt14.0, based on DCF valuation.
Key risks are (i) a drop in occupancy rate, (ii) lower-thanexpected average rental rate, and (iii) non-renewal of leases.
At A Glance
Mkt. Cap (Btm/US$m)
Major Shareholders
SCB Life Assurance PCL (%)
MTLS (%)
Free Float (%)
482
6,406 / 178
19.3
8.8
4.3
67.6
0.10
VICKERS SECURITIES
Company Guide
Occupancy rate (%)

Occupancy rate (%)
Earnings Drivers:
Leasehold rights to three buildings in prime locations. They
are (i) UBC II Building in Prompong, (ii) Ploenchit Center
Building at Ploenchit, and (iii) Bangna Tower. The buildings
are located in prime areas and along the main roads leading
into and out of Bangkok, and register high average
occupancy rates of 96-99%. The remaining tenures of the
lease are 10 - 29 years, which means they will continue to
generate revenues for that period. And, the diversified
location of the assets reduces concentration risk.
Healthy occupancy rate. The Funds portfolio occupancy rate
has been hovering at 96-99% of total leasable space in the
past few years. The Fund expects occupancy rate to be stable
because the convenient access and availability of full facilities
will continue to drive demand for the assets.
Average rental rate (ARR) hikes. ARR dropped in 4Q14
because the Fund had added Bangna Tower which
commands lower ARR than the other two assets because of
location. However, the Fund will be able to raise rents
regularly because the assets are in prime locations. We expect
growth to come from positive rental reversion which would
increase overall ARR by 10-15% every three years.
Strong facilities offering. The properties operated by the Fund
have full facilities, i.e. meeting rooms, catering rooms, fitness
facilities, parking lots, etc. One of the largest advantages is
sufficient parking lots for tenants and visitors; most of the
other office buildings in the Central Business District are
facing a shortage of parking space. In addition, the Fund has
kept parking fees stable so far; this suggests room to raise
fees (and income) when there is stronger demand for the
parking lots.
100
UBC II
100
Ploenchit Center
100
Bangna Tower
99
98 98
98
98 98
98
98
97
97
97
96
96
95
95
94
93
92
1Q14
2Q14
3Q14
4Q14
1Q15
ARR by property
Bt/sq.m.
800
717
697
711
700
611
589
590
1Q15
2Q15
600
500
400
300
200
100
1Q14
2Q14
3Q14
4Q14

Bt m
800
700
95.4%
600
93.4%
500
91.4%
400
89.4%
300
87.4%
200
85.4%
100
83.4%
81.4%
2013A
Dividend payout assumptions. We assumed 92% - 100%

dividend payout ratio throughout our forecast period to
reflect its par value reduction plan, vs 79% - 113% historical
payout.
2014A
Net Property Income
2015F
2016F
2017F
NAV
Btm
6,000
NAV
5,529
5,563
5,594
2015F
2016F
2017F
5,000
4,000
3,818
3,875
3,000
2,000
1,000
0
ASIAN INSIGHTS
VICKERS SECURITIES
Page 57
Company Guide
Balance Sheet:
Investment properties accounted for 97% of the Funds total
assets at end June. Total borrowings amount to Bt455m
(long-term loan), implying low leverage at 0.08x. This
indicates a strong balance sheet and also complies with the
SECs property fund regulations. The Fund has no plans to
drawdown more loans. Hence, net gearing will improve as
the Fund repays the loan.

7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
2013A

Strong growth in ARR. The Funds occupancy is expected to
remain stable. Hence, the key revenue and earnings drivers
would be the ability to increase ARR, resulting in higher
distribution and yields.
2014A
2015F
2016F
2017F
2016F
2017F
ROE (%)
18.0%
16.0%
14.0%
Key Risks:
Political unrest and slowing economy. Political unrest and a
slowing economy would make it challenging for the Fund to
increase rents, and could even drive down occupancy rates,
and in turn, rental income.
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
2013A
COMPANY BACKGROUND
Prime Office Leasehold Property fund (POPF) was founded in
March 2011 and increased its capital in October 2014,
taking total registered capital to Bt5.03bn.
The Funds revenues are determined by occupancy and

rental rates, which can be affected by economic, political
and safety issues. The Fund absorbs operating expenses and
fund management fees. The Funds profit is exempted from
tax. The Fund cannot acquire anymore assets in accordance
with the SECs regulations.
2015F
EPU and DPU

EPU
0.70
0.60
In March 2011, POPF had signed two agreements for

leasehold rights to (i) UBC II Building in Prompong covering a
leasable area of 33,798 sqm and (ii) Ploenchit Center
Building in Ploenchit covering 42,845 sqm. And in October
2014, the Fund signed another agreement for leasehold
rights to Bangna Tower in Bangna covering 43,466 sqm.
2014A
DPU
0.30
120%
110%
108%
99%
0.50
0.40
Payout ratio
100%
96%
80%
79%
0.28
0.28
0.30
0.26 0.26
0.22
0.24
0.26
0.30 0.29
60%
40%
0.20
20%
0.10
0.00
0%
1Q14
2Q14
3Q14
4Q14
1Q15
The major unit holders are Social Security Office, SCB Life
Assurance PCL and Muangthai Leasing PCL with 19%, 9%
and 3% stake, respectively.
ASIAN INSIGHTS
Page 58
VICKERS SECURITIES
Company Guide
Key Assumptions
FY Dec
2013A
2014A
2015F
2016F
2017F
Net leasable area (sqm)

ARR (Bt/sqm)
Occupancy rate (%)
Margin (%)
Dividend payout ratio
(%) (Bt/sqm)
ARR
76,695
684
99%
56%
127%
684
125,184
614
99%
58%
95%
614
125,184
642
98%
57%
95%
642
125,184
679
98%
57%
95%
679
125,184
702
98%
57%
92%
702

FY Dec
2013A
2014A
2015F
2016F
2017F
634
(206)
428
(91)
8
7
353
49
0
0
401
401
(49)
353
689
(209)
481
(97)
10
1
395
27
0
0
422
422
(27)
395
922
(257)
665
(115)
11
(15)
546
0
0
0
546
546
0
546
964
(285)
679
(117)
12
(12)
561
0
0
0
561
561
0
561
1,019
(304)
715
(121)
12
(11)
595
0
0
0
595
595
0
595
N/A
nm
nm
99.5
85.7
55.6
55.6
8.7
12.2
11.9
127.3
86.0
57.3
57.3
33.7
38.4
38.3
95.0
87.5
59.2
59.2
4.6
2.2
2.8
95.0
87.9
58.2
58.2
5.7
5.3
6.0
95.0
88.1
58.4
58.4
14.3
14.0
12.5
12.1
11.9
18.2
17.1
17.4
NM
8.4
7.5
7.8
NM
9.8
8.6
9.1
37.6
10.1
8.8
9.3
45.2
10.6
9.3
9.8
53.1
Gross revenue
Property expenses
Net Property Income
Net Investment Income
Revaluation Gain
Minority Interest
Preference Dividend
Total Return
Growth & Ratio
Revenue Gth (%)
Net Inc Gth (%)
Dist to revenue (%)
to sales %)
ROAE (%)
ROA (%)
ROCE (%)
Int. Cover (x)
ASIAN INSIGHTS
VICKERS SECURITIES
Page 59
Company Guide

FY Dec
2Q2014
3Q2014
Gross revenue
Property expenses
Net Property Income
Net Income
Tax
Minority Interest
Total Return
Growth & Ratio
Revenue Gth (%)
Net Inc Gth (%)
4Q2014
1Q2015
2Q2015
165
(51)
113
(22)
2
1
0
95
0
0
95
95
0
95
163
(54)
109
(22)
2
1
0
91
0
0
91
91
0
91
201
(56)
146
(32)
4
(3)
0
114
0
0
114
114
0
114
223
(48)
175
(31)
3
(4)
0
143
0
0
143
143
0
143
224
(54)
170
(32)
4
(5)
0
138
0
0
138
138
0
138
3
1
1
68.8
94.1
(1)
(4)
(5)
66.7
113.3
23
34
26
72.4
92.4
11
20
25
78.6
88.8
0
(3)
(4)
76.1
91.7

FY Dec
2013A
2014A
2015F
2016F
2017F
Other LT Assets
Cash & ST Invts
Inventory
Debtors
Total Assets
0
3,863
241
0
22
1
4,127
0
6,182
81
0
48
39
6,351
0
6,182
95
0
64
39
6,380
0
6,182
100
0
67
39
6,388
0
6,182
110
0
71
39
6,402
ST Debt
Creditor
Other Current Liab
LT Debt
Unit holders funds
Minority Interests
0
240
0
0
12
3,875
0
4,127
0
341
0
455
26
5,529
0
6,351
0
341
0
450
26
5,563
0
6,380
0
341
0
427
26
5,594
0
6,388
0
341
0
404
26
5,631
0
6,402

Net Cash/(Debt)
Ratio
Current Ratio (x)
Quick Ratio (x)
Z-Score (X)
(217)
241
(254)
(374)
(238)
(356)
(235)
(327)
(231)
(295)
N/A
1.1
0.0
0.0
N/A
0.4
7.4
0.0
N/A
0.5
7.3
0.0
N/A
0.5
6.9
0.0
N/A
0.5
6.5
0.0
ASIAN INSIGHTS
Page 60
VICKERS SECURITIES
Company Guide

FY Dec
Pre-Tax Income
Dep. & Amort.
Tax Paid
Chg in Wkg.Cap.
Other Operating CF
Net Operating CF
Other Invts (net)
Other Investing CF
Net Investing CF
Distribution Paid
Chg in Gross Debt
New units issued
Other Financing CF
Net Financing CF
Chg in Cash
Operating CFPS (Bt)
Free CFPS (Bt)
2013A
2014A
2015F
2016F
2017F
353
0
0
0
0
200
552
0
0
0
0
0
0
(344)
0
0
0
(344)
0
208
395
0
0
0
0
(2,242)
(1,847)
0
0
0
0
0
0
(373)
455
1,606
0
1,687
0
(159)
546
0
0
0
0
(16)
530
0
0
0
0
0
0
(512)
(5)
0
0
(517)
0
13
561
0
0
0
0
(3)
558
0
0
0
0
0
0
(530)
(23)
0
0
(553)
0
5
595
0
0
0
0
(4)
591
0
0
0
0
0
0
(558)
(23)
0
0
(581)
0
10
1.6
1.6
(3.8)
(3.8)
1.1
1.1
1.2
1.2
1.2
1.2
ASIAN INSIGHTS
VICKERS SECURITIES
Page 61
Samui Airport Property Fund

Edition 1 Version 1 | Bloomberg: SPF TB | Reuters: SPFu.BK
18 Sep 2015
BUY
OFFERING GENEROUS YIELDS

Price Target : Bt21.40 (9% upside) (Prev Bt21.40)
Reiterate BUY, Bt21.40 TP (DCF valuation). The fund offers

generous dividend yield of 6.9% for 2015 (payable quarterly),
a hefty premium over the Thai 10-year government bond yield
of 2.65%. And the yields should rise to 7.4% in 2016 and
8.0% in 2017, in line with a recovering tourism industry on
Samui. Unlike many other PFPOs and REITs which are now
running at nearly full capacity, SPF is operating at below its full
capacity, suggesting hefty upside potential.
Potential Catalyst: Strong recovery of Samui tourism

Analyst
A prime beneficiary of recovering tourism. SPF derives revenues

from departing passengers and incoming flights at Samui
Airport. With politics getting calmer and martial law lifted in
April, we conservatively expect tourist arrivals to grow 5% in
2015, 7% each in 2016-2018, and 5% thereafter until 2036.
Note that despite the political uncertainty, SPFs passenger
numbers still expanded at 7% CAGR over the last decade.
Price Relative
Bt
Relative Index
22.0
20.0
204
18.0
184
16.0
164
14.0
144
12.0
124
104
10.0
8.0
Sep-11
Sep-12
Sep-13
Samui Airport Property Fund (LHS)

FY Dec (Bt m)
Gross Revenue
Net Property Inc
Total Return
Distribution Inc
EPU (Bt)
EPU Gth (%)
DPU (Bt)
DPU Gth (%)
NAV per shr (Bt)
PE (X)
P/NAV (x)
ROAE (%)
Sep-14
84
Sep-15
2014A
1,216
1,216
1,178
1,185
1.24
(13)
1.25
0
11.03
15.8
6.4
1.8
0.0
11.2

Consensus DPU (Bt):
Other Broker Recs:
2015F
1,263
1,263
1,231
1,231
1.30
5
1.30
4
11.04
15.1
6.6
1.8
0.0
11.7
2016F
1,355
1,355
1,323
1,323
1.39
7
1.39
7
11.07
14.1
7.1
1.8
0.0
12.6
2017F
1,448
1,448
1,415
1,415
1.49
7
1.49
7
11.09
13.2
7.6
1.8
0.0
13.4
1.30
B: 2
1.39
S: 0
1.49
H: 0
ASIAN INSIGHTS
www.dbsvickers.com
ed: SGC / sa: CT
Clears key hurdle. Bangkok Airways (BA), the property

manager, had received approval from the Department of Civil
Aviation to increase the maximum number of flights to Samui
Airport from 36 to 50 effective November 2014. This should
remove earlier concerns about capacity.
Valuation:
We value SPF at Bt21.40, based on the DCF model.
Key risk is a sharp drop in tourists to Samui. Nonetheless,
downside risk is protected by annual revenue guarantee of
Bt570m from Bangkok Airways, the Property Manager, which
suggests a dividend yield of 3.2% at current price.
At A Glance
Mkt. Cap (Btm/US$m)
Major Shareholders
Bangkok Airways (%)
GPF Startegic Investment Fund (%)
Ayudhya Allianz C.P. (%)
Free Float (%)
ICB Industry : Real Estate / Real Estate Investment Trusts
950
18,620 / 517
25.0
8.1
7.1
46.9
0.31
VICKERS SECURITIES
Company Guide
Monthly Passenger Volume and YoY Growth

Earnings Drivers:
Compelling growth story. Unlike many other PFPOs and REITs
which are now running at nearly full capacity, SPF is
operating at below its full capacity. The fund has ample room
to grow - current traffic is only 1.1m passengers per year
compared to its maximum capacity of over 2m passengers at
Samui Airport. In addition, Bangkok Airways (BA), the
property manager, had received approval from the
Department of Civil Aviation to increase the maximum
number of flights to Samui Airport from 36 to 50 effective
November 2014. This should remove earlier concerns over
capacity.
Monthly Flight Volume and YoY Growth
Recovering tourism industry. Despite the low season,

passenger and flight volumes improved substantially in 2Q15
following the lifting of martial law in April. June traffic was
most impressive, with passenger volume surging 11% y-o-y
and flight volume 9%. The positive momentum should
continue into the high tourist season on Samui in 3Q15. We
conservatively expect passenger volume to grow 5% in 2015,
and 7% each in 2016-2017. Note that despite the political
uncertainty, SPFs passenger numbers expanded at 7% CAGR
over the last decade.
Increasing international passenger service charge. BA, the
property manager, has secured the Department of Civil
Aviation (DCA) approval to raise passenger service charge
(PSC) for international passengers at Samui Airport from
Bt600 to Bt700. This was effective June 2015. Under the
agreement with BA, SPF will get 20% of the increment and
the rest will go to BA. SPF share of PSC is now Bt340 per
passenger on international flight (from Bt320 earlier).
Although the impact of the PSC hike is small, it will still lift
revenues.
Rising number of flights in line with passenger growth. The
average daily number of flights to Samui Airport is about 36
vs 50 flights maximum permitted currently. We expect the
number of flights to continue to increase along with
passenger numbers. Note that BA accounts for a large
portion of flight volume at Samui Airport. Other airlines
include Thai Airways, Silk Air, and Firefly. BA currently flies
directly to three international destinations from Samui, and
back. These are Hong Kong, Singapore, and Kuala Lumpur.
The company plans to increase flight frequency to these
international destinations soon, while offering direct flights to
new destinations in the medium to long term. These
additional flights and services should help to support growth
in the future.
Revenue Is On The Rise
Passenger Breakdown
ASIAN INSIGHTS
VICKERS SECURITIES
Page 63
Company Guide
Distribution per Unit (Bt)
Balance Sheet:
Balance sheet is strong with net a cash position and virtually
no debt. SPF has no operating expenses or capex, as these are
borne by Bangkok Airways, the Property Manager. The fund
has only annual fund expenses of about Bt40m. Hence, any
increases in revenue would flow directly to the bottom line.
The fund normally pays out 100% of cash profits every
quarter. Such distribution has been risen steadily since its
inception, in line with rising passenger and flight numbers.
Despite the political unrest in 2014 which has led to military
coup in May 2014, SPF managed to pay flat dividends as
compared to 2013.
Recovering tourism industry. Since the funds revenues and
profits are tied directly to Samui tourism, the strong tourist
recovery will be a key driver of both earnings and share price.
1Q and 3Q are normally high seasons for Samui tourism.
ROE (%)
12.0%
10.0%
8.0%
6.0%
Key Risks:
Political unrest. Political unrest, like what happened in 2014
which led to the implementation of martial laws, will affect
tourist arrivals to Thailand including Samui Airport, and
hence, revenues of the fund.
Reliance on a single asset. SPF relies on a single asset to
generate its revenues, which is Samui Airport, and tourism
on Samui.
COMPANY BACKGROUND
SPF is one of Thailand's leading property funds. The Fund
invests in leasehold rights to operate Samui Airport for 30
years (2006-2036). Bangkok Airways, the sponsor, has
voluntarily agreed to retain at least 25% stake in the fund
for 20 years in order to align its interests with the fund. BA
has 25.1% stake in the fund.
SPFs revenues correlate with the number of passengers and
flights flying from and to Samui Airport, based on the
following formula. All operating expenses and capital
expenditure are borne by the operator, Bangkok Airways.
This eliminates operating cost risks at the fund.
4.0%
2.0%
0.0%
2013A
2014A
2015F
2016F
2017F
2016F
2017F

8.0%
7.5%
7.0%
6.5%
6.0%
5.5%
5.0%
4.5%
4.0%
3.5%
3.0%
2013A
2014A
2015F
PB Band (x)
Revenue
Sharing
Passenger revenue (per departing passenger)
Domestic
Bt300
International
Bt340
Flight revenue (per incoming flight)
Cressna
Dash 7
ATR72
Airbus/Boeing
ASIAN INSIGHTS
Page 64
Bt5,000
Bt10,000
Bt50,000
Bt80,000
VICKERS SECURITIES
Company Guide
Key Assumptions
FY Dec
No. of passengers (m)
Growth
Sharing (Bt/pax)
Domestic passengers
International passengers
Passenger rev (Btm)
Cabin factor
Operating hours/day
No. of flights p.a.:
ATR
Boeing/Airbus
Sharing:
ATR (Bt/flight)
Boeing (Bt/flight)
Div. Payout
Segmental Breakdown
FY Dec
2013A
2014A
2015F
2016F
2017F
1.1
9.0%
1.1
-1.6%
1.1
5.0%
1.2
7.0%
1.3
7.0%
300.0
320.0
332.2
80%
16.0
300.0
320.0
326.7
80%
16.0
300.0
330.0
348.0
80%
16.0
300.0
340.0
377.5
80%
16.0
300.0
340.0
403.9
80%
16.0
4,968
7,991
4,731
8,146
4,745
8,475
4,745
9,254
4,745
10,088
50,000
80,000
100%
50,000
80,000
100%
50,000
80,000
100%
50,000
80,000
100%
50,000
80,000
100%
2013A
2014A
2015F
2016F
2017F
Political unrest, martial law

in place
Margins Trend
116.0%
111.0%
Revenues (Bt m)
Passenger revenue
Flight revenue
ATR
Boeing
Total flight revenue
Total revenue
Revenue breakdown
Passenger revenue
Flight revenue
ATR
Boeing
Total flight revenue
Total revenue
332
327
348
378
404
106.0%
248
639
888
1,220
237
652
888
1,215
237
678
915
1,263
237
740
978
1,355
237
807
1,044
1,448
101.0%
96.0%
91.0%
2013A
2014A
Operating Margin %
27%
27%
28%
28%
28%
20%
52%
73%
100%
19%
54%
73%
100%
19%
54%
72%
100%
18%
55%
72%
100%
16%
56%
72%
100%
2013A
2014A
2015F
2016F
2017F
1,221
0
1,221
(38)
0
9
168
1,359
0
0
0
1,359
1,359
(168)
1,191
1,216
0
1,216
(40)
0
9
(7)
1,178
0
0
0
1,178
1,178
7
1,185
1,263
0
1,263
(41)
0
9
0
1,231
0
0
0
1,231
1,231
0
1,231
1,355
0
1,355
(42)
0
10
0
1,323
0
0
0
1,323
1,323
0
1,323
1,448
0
1,448
(43)
0
10
0
1,415
0
0
0
1,415
1,415
0
1,415
8.3
8.3
37.6
99.7
96.9
111.3
97.6
(0.4)
(0.4)
(13.3)
100.0
96.7
96.9
97.5
3.9
3.9
4.5
100.0
96.8
97.5
97.5
7.3
7.3
7.4
100.0
96.9
97.6
97.6
6.9
6.9
7.0
100.0
97.0
97.7
97.7
2015F
2016F
2017F
Net Income Margin %

FY Dec
Gross revenue
Property expenses
Net Property Income
Net Income
Tax
Minority Interest
Preference Dividend
Total Return
Growth & Ratio
Revenue Gth (%)
Net Inc Gth (%)
Dist to revenue (%)
to sales %)
ROAE (%)
ROA (%)
ROCE (%)
Int. Cover (x)
3.1
3.3
3.2
3.1
3.0
13.1
13.0
11.3
NM
11.2
11.2
11.2
NM
11.7
11.7
11.6
NM
12.6
12.5
12.4
NM
13.4
13.4
13.3
NM
Martial law lifted in Apr

2015
ASIAN INSIGHTS
VICKERS SECURITIES
Page 65
Company Guide

FY Dec
2Q2014
3Q2014
Gross revenue
Property expenses
Net Property Income
Net Income
Tax
Minority Interest
Total Return
Growth & Ratio
Revenue Gth (%)
Net Inc Gth (%)
4Q2014
1Q2015
2Q2015
286
0
286
(10)
0
2
26
304
0
0
304
N/A
N/A
N/A
319
0
319
(10)
0
2
18
329
0
0
329
N/A
N/A
N/A
277
0
277
(10)
0
2
10
279
0
0
279
N/A
N/A
N/A
326
0
326
(10)
0
2
(58)
260
0
0
260
N/A
N/A
N/A
306
0
306
(10)
0
2
(28)
269
0
0
269
N/A
N/A
N/A
(15)
(15)
14
100.0
N/A
12
12
8
100.0
N/A
(13)
(13)
(15)
100.0
N/A
18
18
(7)
100.0
N/A
(6)
(6)
3
100.0
N/A

FY Dec
2013A
2014A
2015F
2016F
2017F
Other LT Assets
Cash & ST Invts
Inventory
Debtors
Total Assets
10,182
366
3
0
0
0
10,552
10,175
364
3
0
0
0
10,542
10,175
364
14
0
0
0
10,553
10,175
364
37
0
0
0
10,576
10,175
364
60
0
0
0
10,599
ST Debt
Creditor
Other Current Liab
LT Debt
Unit holders funds
Minority Interests
0
0
0
0
62
10,490
0
10,552
0
0
0
0
61
10,481
0
10,542
0
0
0
0
61
10,492
0
10,554
0
0
0
0
61
10,515
0
10,576
0
0
0
0
61
10,538
0
10,599
0
3
0
3
0
14
0
37
0
60
N/A
N/A
0.0
273.9
N/A
N/A
0.0
273.6
N/A
N/A
0.0
273.5
N/A
N/A
0.0
0.0
N/A
N/A
0.0
NA

Net Cash/(Debt)
Ratio
Current Ratio (x)
Quick Ratio (x)
Z-Score (X)
No borrowings
ASIAN INSIGHTS
Page 66
VICKERS SECURITIES
Company Guide

FY Dec
2013A
2014A
2015F
2016F
2017F
Pre-Tax Income
Dep. & Amort.
Tax Paid
Chg in Wkg.Cap.
Other Operating CF
Net Operating CF
Other Invts (net)
Other Investing CF
Net Investing CF
Distribution Paid
Chg in Gross Debt
New units issued
Other Financing CF
Net Financing CF
Chg in Cash
1,359
0
0
0
(4)
(168)
1,188
0
(24)
0
0
0
(24)
(1,173)
0
0
0
(1,173)
0
(10)
1,178
0
0
0
3
7
1,188
0
(1)
0
0
0
(1)
(1,188)
0
0
0
(1,188)
0
0
1,231
0
0
0
(1)
0
1,230
0
0
0
0
0
0
(1,220)
0
0
0
(1,220)
0
11
1,323
0
0
0
0
0
1,323
0
0
0
0
0
0
(1,300)
0
0
0
(1,300)
0
23
1,415
0
0
0
0
0
1,415
0
0
0
0
0
0
(1,392)
0
0
0
(1,392)
0
23
1.3
1.3
1.2
1.3
1.3
1.3
1.4
1.4
1.5
1.5
Operating CFPS (Bt)

Free CFPS (Bt)
No capex

20.55
Bt
20.05
S.No .
19.55
1:
2:
3:
4:
5:
6:
19.05
18.55
18.05
Cl o s i n g
Pri c e
10 Mar 15
17.40
20 Apr 15
17.40
15 May 15
17.70
21 May 15
17.70
22 Jul 15
18.70
25 Aug 15
18.60
Da te
Ta rg e t
Pri c e
19.50
18.80
18.80
18.90
21.40
21.40
R a ti n g
Buy
Buy
Buy
Buy
Buy
Buy
17.55
17.05
16.55
16.05
Sep-14
Jan-15
May-15
Source: DBS Vickers
ASIAN INSIGHTS
VICKERS SECURITIES
Page 67

Leasehold Property Fund
Edition 1 Version 1 | Bloomberg: TLGF TB | Reuters: TLGFu.BK
18 Sep 2015
BUY
DECENT YIELDS

Maintain BUY rating, with Bt15.10 TP based on DCF valuation.

TLGF is offering decent distribution yield of 6.0% (FY16F),
payable quarterly. We have conservatively assumed 95%
payout ratio in our projections vs 100% historical payout. The
fund invests in freehold and leasehold rights to 23 successful
malls that are strategically located throughout Thailand, thus
reducing concentration risks. These malls currently enjoy high
occupancy rate of 99%.
Potential Catalyst: Strong rental reversion, Convets to a REIT

Analyst
Net investment income to surge this year. The main contracts

with anchor tenant Tesco Lotus, which cover 58% of total
lettable area and account for 28% of revenues, are subject to
10% rental reversion this year. And, 648 other contracts (nonTesco Lotus) covering 30,312 sqm or 9% of total lettable area
are expiring in FY16 and subject to renewals at 5% higher
rents, at least.
Price Relative
Bt
Relative Index
221
16.4
201
15.4
181
14.4
161
13.4
12.4
141
11.4
121
10.4
101
9.4
Mar-12
Mar-13
Mar-14
Mar-15
Tesco Lotus Retail Growth Freehold and Leasehold Property
Fund (LHS)

FY Feb (Bt m)
Gross Revenue
Net Property Inc
Total Return
Distribution Inc
EPU (Bt)
EPU Gth (%)
DPU (Bt)
DPU Gth (%)
NAV per shr (Bt)
PE (X)
P/NAV (x)
ROAE (%)
2014A
2,414
2,057
1,762
1,783
0.75
17
0.76
10
11.25
17.5
5.8
1.2
8.1
6.7

Consensus DPU (Bt):
Other Broker Recs:
81
2015A
2,736
2,302
1,877
1,888
0.80
7
0.81
6
11.24
16.4
6.1
1.2
9.1
7.1
2016F
2,907
2,453
1,976
1,890
0.85
5
0.81
0
11.28
15.6
6.1
1.2
9.1
7.5
2017F
3,009
2,532
2,136
1,953
0.91
8
0.84
3
11.36
14.4
6.3
1.2
9.1
8.1
N/A
B: 4
N/A
S: 0
N/A
H: 1
ASIAN INSIGHTS
www.dbsvickers.com
ed: SGC / sa: CT
Mulling conversion to a REIT. TLGF is still awaiting the SECs

regulations on transaction costs to transfer assets from a
property fund to a REIT. The funds current borrowing is
Bt2.6bn, representing 9.8% of total assets, slightly below its
10% ceiling. Tesco Lotus has granted right of first refusal to
TLGF to acquire its existing and future malls. The successful
conversion to a REIT structure would allow the fund/REIT to
borrow more for future acquisitions and rely less on equity
financing. This should lift distribution per unit and yields.
Tesco Lotus has a lot of potential assets that can be injected
into the REIT in the future.
Valuation:
We value TLGF at Bt15.10 based on DCF valuation.
Key risks are (i) lower-than-expected rental reversion, and (ii)
weaker-than-expected occupancy rate.
At A Glance
Mkt. Cap (Btm/US$m)
Major Shareholders
Ek-Chai Distribution System (%)
The Government Pension Fund (PI-NONPHYSICAL)
The Bank(%)
Of New York (Nominees) Limited (%)
Free Float (%)
ICB Industry : Real Estate / Real Estate Investment Trusts
2,337
30,852 / 856
25.0
8.2
7.2
59.7
0.46
VICKERS SECURITIES
Company Guide
Tesco Lotus Retail Growth Freehold and Leasehold
Property Fund
Revenue Breakdown (1Q15/16) (%)

Earnings Drivers:
Portfolio of 23 shopping malls in good locations throughout
Thailand, most of which are freehold assets. Freehold assets
represent 60% of TLGFs total leasable area of 336,291
sqm, and 77% of the appraised value of the assets. These
are successful malls in good locations with 99% average
occupancy rate. 12 of the malls are located in Bangkok and
11 in the provinces. The geographical diversification helps to
reduce concentration risks. With a lot of the assets being
freehold and in good locations, the fund stands to benefit
from future capital appreciation.
Rental Reversion (%)
Proven track record, average 99% occupancy. Tesco Lotus is

the largest anchor tenant, occupying 58% of the funds
leasable area and generating 28% of revenue.
Growth drivers. We expect growth to come from rental
reversion (+estimated at 5.0% p.a. for non-Tesco Lotus
space) and acquisitions. History suggests the fund had been
increasing rents by 8.0-20.0% upon lease renewal for nonTesco Lotus space. The contracts with Tesco Lotus are for a
period of 10 years and renewable automatically for two
terms of 10 years each (total 30 years). Rents are raised by
10% every three years. The main contracts with Tesco Lotus
are subject to 10% rental reversion this year.

Bt m
2,500
91.9%
Mulling conversion to REIT. TLGF is still awaiting the SECs

regulations on the transaction costs involved to transfer the
assets to a REIT. The funds current borrowing is Bt2.6bn,
representing 9.8% of its net asset value, slightly below its
10% ceiling. Tesco Lotus has granted right of first refusal to
TLGF to acquire its existing and future malls. The successful
conversion to a REIT structure would allow the fund/REIT to
borrow more for future acquisitions and rely less on equity
financing. This should lift distribution per unit and yields.
Tesco Lotus has a lot of potential assets that can be injected
into the REIT in the future; it operates 133 malls in Thailand
(including the 23 malls under TLGF), and is building more.
2,000
89.9%
87.9%
1,500
85.9%
1,000
83.9%
500
81.9%
79.9%
2013A
2014A
2015A
Net Property Income
2016F
2017F

50
88%
45
87%
40
35
86%
30
25
85%
20
84%
15
10
83%
Net Property Income
1Q2016
4Q2015
3Q2015
2Q2015
1Q2015
4Q2014
3Q2014
2Q2014
82%
1Q2014
4Q2013
Dividend payout assumptions. We currently assume 95%

dividend payout ratio in our projections vs 100% payout
historically. This reflects the current net gearing which has
hit the ceiling, suggesting the fund needs to reserve cash for
any capital expenditure that may arise.

(x)
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
2013A
2014A
2015A
2016F
2017F
ASIAN INSIGHTS
VICKERS SECURITIES
Page 69
Company Guide
Balance Sheet:
Total borrowings amounted to Bt2.6bn, representing 9.8% of
its net asset value at end-1Q16.
Converting to a REIT. The successful conversion would mean
the REIT can gear up more. It will then rely less on equity
financing. This should lift DPU and yields.

9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
2013A
2014A
2015A
2016F
2017F
ROE (%)
8.0%
Key Risks:
Political unrest & slowing economy
Political unrest and a slowing economy could hurt consumer
confidence and delay spending, and in turn affect the
potential for rental rate hikes.
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
Acquisition growth stalled unless the fund converts to a REIT

All property funds, including TLGF, can no longer increase
capital to acquire additional assets. To be able to grow the
fund size, the fund needs to be converted to a REIT. But that
cannot be done until the SEC finalises further details, such
as transaction costs.
Losing key anchor tenant
Anchor tenant Tesco Lotus does not renew its contracts.
1.0%
0.0%
2014A
2015A
2016F
2017F

8.0%
7.0%
6.0%
5.0%
4.0%
COMPANY BACKGROUND
TLGF is a property fund that invests in freehold and
leasehold rights to 23 retail shopping malls in Thailand, with
Tesco Lotus as a key anchor tenant.
Ek-Chai Distribution System Co., Ltd. (Tesco Lotus) is the
sponsor, major unit holder with 25% stake, and the
Property Manager of the Fund.
3.0%
2.0%
2013A
2014A
2015A
2016F
2017F
PB Band (x)
ASIAN INSIGHTS
Page 70
VICKERS SECURITIES
Company Guide
Property Fund
Key Assumptions
FY Feb
Leasable area (sqm)
Occupancy
Occupied area (sqm)
Total rents (Btm)
Dividend payout
2013A
2014A
2015A
2016F
2017F
312,438
99%
309,648
479
1,778
100%
314,097
99%
312,019
645
2,414
100%
334,453
99%
332,108
680
2,708
100%
336,453
99%
334,074
725
2,907
95%
336,453
99%
334,074
751
3,009
95%
2013A
2014A
2015A
2016F
2017F
587
925
249
18
1,778
771
1,300
323
20
2,414
790
1,555
342
21
2,708
869
1,657
360
22
2,907
869
1,740
377
23
3,009
33%
52%
14%
1%
100%
32%
54%
13%
1%
100%
29%
57%
13%
1%
100%
30%
57%
12%
1%
100%
29%
58%
13%
1%
100%
31%
41%
30%
10%
36%
2%
20%
6%
5%
12%
10%
7%
5%
5%
7%
0%
5%
5%
5%
4%
2013A
2014A
2015A
2016F
2017F
1,779
(275)
1,503
(301)
12
17
12
1,243
0
0
0
1,243
1,243
(538)
1,346
2,414
(357)
2,057
(459)
17
13
134
1,762
0
0
0
1,762
1,762
0
1,783
2,736
(435)
2,302
(497)
1
(68)
139
1,877
0
0
0
1,877
1,877
0
1,888
2,907
(454)
2,453
(404)
1
(74)
0
1,976
0
0
0
1,976
1,976
0
1,990
3,009
(477)
2,532
(326)
1
(72)
0
2,136
0
0
0
2,136
2,136
0
2,056
N/A
nm
nm
99.8
84.5
69.9
75.7
35.7
36.8
41.8
100.0
85.2
73.0
73.8
13.3
11.9
6.6
100.0
84.1
68.6
69.0
6.2
6.6
5.3
95.0
84.4
68.0
65.0
3.5
3.2
8.1
95.0
84.2
71.0
64.9
7.3
9.5
9.8
10.7
10.8
N/A
N/A
N/A
NM
6.7
6.3
5.8
NM
7.1
6.4
6.3
26.5
7.5
6.7
7.1
27.8
8.1
7.2
7.6
30.8
Segmental Breakdown
FY Feb
Revenues (Bt m)
Hypermarkets & food court
Long-term lease
Short-term lease
Others
Total
Revenue Breakdown
Long-term lease
Short-term lease
Others
Total
Growth
Long-term lease
Short-term lease
Others
Total
FY Feb
Gross revenue
Property expenses
Net Property Income
Net Income
Tax
Minority Interest
Preference Dividend
Total Return
Growth & Ratio
Revenue Gth (%)
Net Inc Gth (%)
Dist to revenue (%)
to sales %)
ROAE (%)
ROA (%)
ROCE (%)
Int. Cover (x)
Assuming 95% payout

ratio vs historical 100%
payout
Growth continues to come

from rental reversion
ASIAN INSIGHTS
VICKERS SECURITIES
Page 71
Company Guide
FY Feb
1Q2015
2Q2015
Gross revenue
Property expenses
Net Property Income
Net Income
Tax
Minority Interest
Total Return
Growth & Ratio
Revenue Gth (%)
Net Inc Gth (%)
3Q2015
4Q2015
1Q2016
677
(90)
587
(119)
0
(21)
(0)
429
0
0
429
429
38
467
688
(93)
595
(120)
1
(21)
0
440
0
0
440
440
38
478
679
(90)
589
(121)
0
(21)
76
508
0
0
508
508
(38)
471
693
(101)
592
(138)
0
(22)
64
483
0
0
483
483
(28)
455
708
(101)
607
(92)
0
(22)
(1)
478
0
0
478
478
18
496
8
10
nm
86.7
N/A
2
1
nm
86.5
N/A
(1)
(1)
nm
86.8
N/A
2
1
nm
85.5
N/A
2
3
nm
85.7
N/A

FY Feb
2013A
2014A
2015A
2016F
2017F
Other LT Assets
Cash & ST Invts
Inventory
Debtors
Total Assets
24,964
716
1,072
0
0
0
26,752
27,469
593
1,029
0
0
0
29,091
28,043
473
1,070
0
0
0
29,586
28,153
380
1,010
0
0
0
29,543
28,263
380
1,113
0
0
0
29,755
ST Debt
Creditor
Other Current Liab
LT Debt
Unit holders funds
Minority Interests
0
0
433
0
0
26,319
0
26,752
0
0
510
2,284
0
26,298
0
29,091
0
0
719
2,591
0
26,276
0
29,586
0
0
581
2,600
0
26,362
0
29,542
0
0
595
2,600
0
26,560
0
29,755

Net Cash/(Debt)
Ratio
Current Ratio (x)
Quick Ratio (x)
Z-Score (X)
(433)
1,072
(510)
(1,255)
(719)
(1,521)
(581)
(1,590)
(595)
(1,487)
2.5
2.5
0.0
58.6
2.0
2.0
8.1
27.4
1.5
1.5
9.1
26.1
1.7
1.7
9.1
26.4
1.9
1.9
9.1
26.2
Gain (loss) from asset

revaluation
Net gearing close to

10% limit
ASIAN INSIGHTS
Page 72
VICKERS SECURITIES
Company Guide
Property Fund
FY Feb
Pre-Tax Income
Dep. & Amort.
Tax Paid
Chg in Wkg.Cap.
Other Operating CF
Net Operating CF
Other Invts (net)
Other Investing CF
Net Investing CF
Distribution Paid
Chg in Gross Debt
New units issued
Other Financing CF
Net Financing CF
Chg in Cash
2013A
2014A
2015A
2016F
2017F
1,243
170
0
0
(12)
108
1,509
(25,416)
0
0
0
(55)
(25,471)
(877)
0
25,442
0
24,565
0
603
1,762
230
0
0
(134)
34
1,892
(2,372)
12
0
0
(76)
(2,435)
(1,783)
2,284
0
0
501
0
(43)
1,877
230
0
0
(139)
167
2,134
(435)
8
0
0
(76)
(504)
(1,900)
308
0
0
(1,592)
0
39
1,976
94
0
0
0
(61)
2,009
(110)
0
0
0
(76)
(186)
(1,890)
9
0
0
(1,881)
0
(58)
2,136
0
0
0
0
90
2,226
(110)
0
0
0
(76)
(186)
(1,937)
0
0
0
(1,937)
0
102
0.8
(12.4)
0.9
(0.2)
1.0
0.7
0.9
0.8
1.0
0.9
Operating CFPS (Bt)

Free CFPS (Bt)

14.59
Bt
S.No .
14.09
4
2
13.59
1:
2:
3:
4:
Cl o s i n g
Pri c e
19 Jan 15
13.00
01 Apr 15
13.50
06 May 15
13.50
15 Jul 15
13.70
Da te
Ta rg e t
Pri c e
15.10
15.10
15.10
15.10
R a ti n g
Buy
Buy
Buy
Buy
13.09
1
12.59
12.09
11.59
Sep-14
Jan-15
May-15
Source: DBS Vickers
ASIAN INSIGHTS
VICKERS SECURITIES
Page 73

Edition 1 Version 1 | Bloomberg: TGROWTH TB | Reuters: TGROWTHu.BK Refer to important disclosures at the end of this report
18 Sep 2015
BUY
RESILIENT INDUSTRIAL SPACE LESSOR

BUY with DCF-based TP of Bt12.90. Amid the low-interestrate environment, the fund offers attractive annual yield of
c.8% over the next three years, higher than the current 2.65%
yield for Thai government bonds and 3.6% yield for stocks
under DBS coverage. It has a solid track record of healthy
occupancy rates and offers 16% total return (price upside +
dividend yield) at the current market price.
Potential Catalyst: Strong economic recovery and rental hike

Where we differ: N/A
Analyst
Wasu Mattanapotchanart +662 658 7826
wasum@th.dbsvickers.com
Withstanding the economic slowdown.

While the occupancy rates at other property funds under
TICON are in the range of 71-76% and declining because of
the slower economy, TGROWTH has been resilient. Its
occupancy rate had bottomed out at 93% in 2H14 and has
rebounded to 96% in 1H15, close to its peak of 98-100% in
2013 and early 2014. We estimate occupancy rate at
96%/97%/95% for FY15/16/17.
Price Relative
Bt
Relative Index
218
13.7
198
12.7
178
11.7
158
10.7
138
9.7
118
8.7
98
7.7
Dec-13
78
May-14
Oct-14
Mar-15
Valuation:
We value TGROWTH at Bt12.90, based on DCF valuation
(WACC: 7.1%, Terminal Value of Bt0 at the end of 2043).
Aug-15
TICON Industrial Growth Leasehold Property Fund (LHS)


FY Dec (Bt m)
Gross Revenue
Net Property Inc
Total Return
Distribution Inc
EPU (Bt)
EPU Gth (%)
DPU (Bt)
DPU Gth (%)
NAV per shr (Bt)
PE (X)
P/NAV (x)
ROAE (%)
2014A
593
534
531
516
0.96
nm
0.97
nm
10.26
12.7
7.9
1.2
8.1
N/A

Consensus DPU (Bt):
Other Broker Recs:
2015F
601
543
523
523
0.94
(2)
0.93
(4)
10.28
13.0
7.6
1.2
7.4
9.2
2016F
624
562
541
541
0.98
4
0.97
4
10.30
12.5
7.9
1.2
6.7
9.5
2017F
625
563
544
544
0.98
1
0.97
1
10.31
12.4
8.0
1.2
6.0
9.5
0.80
B: 0
0.90
S: 0
0.90
H: 1
ASIAN INSIGHTS
www.dbsvickers.com
ed: SGC / sa: CS

Economic slowdown and high-household-debt-to-GDP ratio
(c.85%) could result in extended weak automotive sales in
Thailand. This could, in turn, cause autopart makers (33% of
total leasable areas) to downsize production capacities. Also,
lackluster global growth could hurt exports of electronics parts.
Electronics firms account for 20% of TGROWTHs leasable
area.
At A Glance
Mkt. Cap (Btm/US$m)
Major Shareholders
TICON (%)
HSBC (SINGAPORE) NOMINEES PTE LTD (%)
MTLS (%)
Free Float (%)
555
6,771 / 188
25.3
11.4
11.4
25.1
0.09
VICKERS SECURITIES
Company Guide

600
97.5%
500
95.5%
400
93.5%
300
91.5%
200
89.5%
100
87.5%
85.5%
2014A
2015F
Net Property Income
Economic recovery could push up occupancy rates

We project the Funds occupancy rate will be in the range of
95-97% over the next five years, before dropping to 90%
from 2020 onward. The majority its clients are involved in
autoparts (33% of leasable area), logistics (21%), and
consumer products (6%), so TGROWTHs occupancy rate
could beat our estimates during economic upturns. This
would present a mild upside to our forecast earnings and TP.
Its occupancy rate had peaked at 98-100% in 2013 and early
2014.
ASIAN INSIGHTS
91%
35
90%
30
90%
25
89%
20
89%
15
88%
10
88%
87%
87%
Net Property Income
2Q2015
91%
40
1Q2015
92%
45
3Q2014
50
2Q2014
5-10% rental reversion every three years

The majority of TGROWTHs rental contracts are for three
years, and the Fund usually raise rents by 5-10% when the
contracts expire, implying 1.7%-3.3% hike p.a. The actual
hikes would depend on the prevailing demand-supply
situation and the size and location of the rental assets. We
forecast average rent would increase by 2.5% p.a. over the
next four years, before slowing to 2% p.a. over FY21-24, and
1% thereafter.
2017F
1Q2014
This is in stark contrast with the other TICON-owned property

funds, of which occupancy rates continue dropping. TFUNDs
occupancy rate has fallen from 95.6% in 4Q11 to 70.6%
now, and TLOGISs has fallen from its 95% peak in 2Q13 to
76% in 2Q15. Hence, we believe that TGROWTH would be
able to weather the recession better than other TICON funds.
2016F
4Q2014
Earnings Drivers:
Occupancy rates remain healthy
TGROWTHs operations have been resilient. Despite the
ongoing economic slowdown, its occupancy rate had
bottomed out in 2H14 at 93% (factory: 100%, warehouse:
88%) and rebounded in 1H15 to 96% (factory: 100%,
warehouse: 93%).
Bt m

(x)
1.0
0.9
0.8
0.7
0.6
0.5
0.4
2014A
2015F
2016F
2017F
VICKERS SECURITIES
Page 75
Company Guide
TICON Industrial Growth Leasehold
Property Fund
Balance Sheet:
At the end of 2014, TGROWTH had Bt460m debt, equivalent
to 8.1% of NAV. We expect debt to drop to Bt422m (7.4%
of NAV) by the end of this year, and the Fund to be debt-free
by 2026, assuming no acquisition of new rental assets.

8.0%
7.0%
6.0%
5.0%
4.0%
3.0%

Attractive yield
TGROWTH is offering attractive annual yield of c.8% for the
next three years, compared to 2.65% for 10-year Thai
government bonds and 3.6-3.9% dividend yields for stocks
under DBS coverage (75% of the SET market cap) in FY1516F.
2.0%
1.0%
0.0%
2014A
2015F
2016F
2017F
ROE (%)
9.0%
8.0%
Key Risks:
Domestic and global economic slowdown
The slower economy and high household debt could result
in extended weak automotive sales in Thailand; falling auto
production could make its autopart makers (33% of
TGROWTHs total leasable area) to downsize production
lines and warehouse space. Also, lackluster global growth
could hurt exports of electronics parts (20% of total leasable
area).
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
2015F
2016F
2017F
COMPANY BACKGROUND
Ticon Industrial Growth Leasehold Property (TGROWTH)
owns rental warehouse and factories with total leasable
areas of 182k sqm and 121k sqm, respectively. The
remaining leasehold life of its assets is 28.5 years. All its
assets were developed by the SET-listed Ticon Industrial
Connection (TICON); TICON usually develops and holds
rental assets for a few years before selling them to its
network of property funds and REITs, including TLOGIS,
TFUND, TGROWTH and REIT.
The bulk of TGROWTHs leasable area is occupied by
Japanese corporations (61%), followed by Thais (8%),
Germans (7%) and French (6%). TGROWTHs warehouses
and factories are in industrial parks/estates in Ayutthaya,
Patumtani, Chonburi, Chachoengsao and Rayong.
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2014A
2015F
2016F
2017F
PB Band (x)
ASIAN INSIGHTS
Page 76
VICKERS SECURITIES
Company Guide
Key Assumptions
FY Dec
Leasable area (sqm)
Warehouse
Factory
Total
Occupancy (%)
Warehouse
Factory
Total
2013A
2014A
2015F
2016F
2017F
182,095
104,225
286,320
182,095
121,175
303,270
182,095
121,175
303,270
182,095
121,175
303,270
182,095
121,175
303,270
100%
100%
100%
88%
100%
93%
93%
100%
96%
95%
100%
97%
95%
95%
95%
2014A
2015F
2016F
2017F
593
(59)
534
(14)
10
(14)
16
531
0
0
0
531
531
0
516
601
(59)
543
(13)
10
(17)
0
523
0
0
0
523
523
0
523
624
(62)
562
(13)
10
(17)
0
541
0
0
0
541
541
0
541
625
(62)
563
(13)
10
(15)
0
544
0
0
0
544
544
0
544
N/A
nm
nm
104.1
90.0
89.6
90.6
1.5
1.7
(1.6)
99.0
90.2
86.9
86.0
3.7
3.5
3.6
99.0
90.0
86.8
85.9
0.2
0.2
0.5
99.0
90.0
87.1
86.2
2.4
2.2
2.1
2.1
N/A
N/A
N/A
37.5
9.2
8.2
8.3
31.7
9.5
8.5
8.7
32.0
9.5
8.6
8.7
35.5

FY Dec
Gross revenue
Property expenses
Net Property Income
Net Income
Tax
Minority Interest
Preference Dividend
Total Return
Growth & Ratio
Revenue Gth (%)
Net Inc Gth (%)
Dist to revenue (%)
to sales %)
ROAE (%)
ROA (%)
ROCE (%)
Int. Cover (x)
ASIAN INSIGHTS
VICKERS SECURITIES
Page 77
Company Guide
TICON Industrial Growth Leasehold
Property Fund
FY Dec
2Q2014
3Q2014
Gross revenue
Property expenses
Net Property Income
Net Income
Tax
Minority Interest
Total Return
Growth & Ratio
Revenue Gth (%)
Net Inc Gth (%)
4Q2014
1Q2015
2Q2015
151
(16)
135
0
7
(4)
0
138
0
0
138
135
N/A
135
147
(15)
132
1
0
(4)
15
144
0
0
144
139
N/A
124
147
(13)
134
0
0
(4)
0
130
0
0
130
126
N/A
126
147
(18)
130
0
1
(4)
0
127
0
0
127
123
N/A
123
147
(16)
131
0
0
(5)
0
127
0
0
127
123
N/A
122
3
2
6
89.4
97.0
(3)
(2)
4
89.8
105.7
0
1
(10)
90.9
98.9
0
(3)
(2)
88.0
101.4
0
1
0
88.9
100.0

FY Dec
2014A
2015F
2016F
2017F
Other LT Assets
Cash & ST Invts
Inventory
Debtors
Total Assets
6,018
N/A
336
0
14
2
6,370
6,018
N/A
310
0
14
2
6,345
6,018
N/A
289
0
15
2
6,324
6,018
N/A
257
0
15
2
6,293
ST Debt
Creditor
Other Current Liab
LT Debt
Unit holders funds
Minority Interests
0
0
0
460
215
5,696
0
6,371
0
0
0
422
218
5,706
0
6,345
0
0
0
383
226
5,716
0
6,325
0
0
0
345
226
5,722
0
6,293

Net Cash/(Debt)
Ratio
Current Ratio (x)
Quick Ratio (x)
Z-Score (X)
16
(124)
17
(112)
17
(94)
17
(88)
N/A
N/A
8.1
NA
N/A
N/A
7.4
NA
N/A
N/A
6.7
NA
N/A
N/A
6.0
NA
ASIAN INSIGHTS
Page 78
VICKERS SECURITIES
Company Guide

FY Dec
Pre-Tax Income
Dep. & Amort.
Tax Paid
Chg in Wkg.Cap.
Other Operating CF
Net Operating CF
Other Invts (net)
Other Investing CF
Net Investing CF
Distribution Paid
Chg in Gross Debt
New units issued
Other Financing CF
Net Financing CF
Chg in Cash
Operating CFPS (Bt)
Free CFPS (Bt)
2014A
2015F
2016F
2017F
531
0
0
0
(55)
(16)
461
(460)
(296)
0
0
0
(756)
(412)
460
0
0
48
0
(248)
523
0
0
0
3
0
526
0
96
0
0
0
96
(513)
(38)
0
0
(551)
0
71
541
0
0
0
8
0
549
0
0
0
0
0
0
(531)
(38)
0
0
(570)
0
(21)
544
0
0
0
0
0
544
0
0
0
0
0
0
(538)
(38)
0
0
(576)
0
(32)
0.9
0.0
0.9
0.9
1.0
1.0
1.0
1.0
ASIAN INSIGHTS
VICKERS SECURITIES
Page 79
Industry Focus
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 (-10 to +15% total return over the next 12 months for small caps, -10% to +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

GENERAL DISCLOSURE/DISCLAIMER
This report is prepared by DBS Vickers Securities (Thailand) Co., Ltd. (DBSVT), a direct wholly-owned subsidiary of DBS Vickers Securities
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Thailand Industry Focus

Property Fund/REIT Sector

DBS Group Research . Equity

Take shelter in volatile market

The sector now comprises 51 PFPOs and five REITS

The sector is offering generous 2015F distribution

We prefer office and retail PFPO/REITs; there is

Our preferred picks are CPNRF, CPTCG, FUTUREPF,

A safe haven in the volatile market. The Thai

Mkt Cap Target Price

*Yields are for FYE Mar 2016-17

Tesco Lotus Retail Growth Freehold and Leasehold Property Fund

Evolution of Thai Property Funds/REITs

Key differences between PFPO/REIT

Major sponsors of the assets

CP Tower Growth Leasehold (CPTGF TB)

CPN Retail Growth Property Fund (CPNRF TB)

Future Park Prop Fund (FUTUREPF TB)

Impact Growth REIT (IMPACT TB)

LH Shopping Centers REIT (LHSC)

Prime Office Property Fund (POPF TB)

Samui Airport Property Fund (SPF TB)

Tesco Lotus Retail Growth Freehold and

TICON Industrial Growth Property Fund (TGROWTH

Yield, Valuation and Recommendation

Offering better yields than other investments. The following

Distribution Yield of Thai PFPOs/REITs

PFPO offers better yields vs other investment alternatives

Source: SET, DBS Vickers

Listed 10-year govt 2-year fixed 1-year fixed Savings rate

Source: SET, DBS Vickers

PFPO/REIT yield comparison. The following chart shows

Yield of Thai PFPOs/REITs vs Thai 10-yr Government Bond

Source: SET, DBS Vickers

Source: SET, DBS Vickers

Valuation and Recommendation

Sector is now trading at average 1.07x P/NAV. This

CPN Retail Growth Leasehold Property Fund (CPNRF)

Source: SET, DBS Vickers

We prefer Office and Retail over Industrial PFPO/REITs. The

Industry subsector Prefer office, retail over industrial

Location of the assets

Quality of the assets and the anchor tenants

Quality of the property manager

Potential for rental reversion

Potential growth prospects

Remaining leasehold life

CPNRF holds leasehold rights to operate four successful

Source: SET, DBS Vickers

Samui Airport Leasehold Property Fund (SPF)

10-Year Govt Bond Yield

Source: SET, DBS Vickers

10-Year Govt Bond Yield

Tesco Lotus Retail Growth Property Fund (TLGF)

CP Tower Growth Leasehold Property Fund (CPTGF)

Source: SET, DBS Vickers

Future Park Leasehold Property Fund (FUTUREPF)

Source: SET, DBS Vickers

10-Year Govt Bond Yield

Source: SET, DBS Vickers

Thailands listed PFPO/REITs

Samui Airport Leasehold Property Fund

Source: SET, DBS Vickers