FY 2023 Full-Year Financial Results Webcast Briefing

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Recording in progress. Hi, good morning everyone. Thanks for your patience. Welcome to Fraser Logistics and Commercial Trust Pool Year 2023, results of our own webcast. Today we have with us Ms. Anthony Lee, CEO. We have our Ms. Tricia Yiu, CFO, Ms. Jaye Spong, our Head of Performance Management, and also in attendance we have our Head of Investment, Ms. Chiu Inhui. So without further ado, I'll just hand over the presentation to Anpia to start us off. Thanks, Alfine. Good morning, everyone. I'm Anpia, and thank you for joining our FY2023 Financial Results Webcast presentation. So let me begin by thanking our FLCT team for their support rendered to me since I'm joined, and together with the Fraser's group team members in Singapore, Australia, UK, and Europe for their dedication and hard work

for the financial year. So despite challenging headwinds and market volatilities, we have managed to pull in a resilient set of results for FY2023. The underlying fundamentals of our portfolio remained strong, driven by sustained demand and a continued lack of availability. And this is especially so for the L&I portfolio, which will continue to register full occupancy for the fourth consecutive year. We are also proud to share that we have maintained a five-star rating for our, and then we are market-leading ranking of second position among our peers in the latest Graspi 233. So for the full year, 2023, our L&I continues to deliver a strong performance On overall portfolio basis, we have achieved a significant positive render reversions of 7.8% on an incoming rent versus outgoing rent basis and a positive 18.9% version on the average of preceding lease versus average of new or renewed lease basis. For our

balance sheet, FLCT continues to hold prudent capital structure with one of the lowest gearing amongst assets at 30.2%. And this October, we have also expanded our footprint in the Netherlands with the acquisition of an LNI development, and this marks the seventh one in the Netherlands. This deal is deeply lucrative and will enlarge the contribution from the Netherlands and was concluded at a 13% discount to its valuation. Earlier in the year, we have also completed the development of two UK logistics facilities, Connection 2 and Wooster, and we are on track to complete another logistics facility in Port Ellesmere, Chinese December. So on the next slide, it's just a quick snapshot on the portfolio here, a portfolio of 107 assets anchored by L&I assets, which constitute approximately 70% by asset value, a total of 99 assets. And for the remaining 30% of the portfolio, it comprises commercial assets

and has an occupancy of 90%. On to the next slide. So in October, we FLCT strengthen our foothold in the Netherlands with a freehold of forward fund logistic assets in the Aviation Valley business part in Maastricht in the Netherlands. So the purchase price of $14.5 million represents an approximate 30% discount to the valuation of $16 million at the gross initial yield of 6.3%. So this is an off-market deal from the seller and the rent escalation will be based on CPI for a long lease term of 10 years. In terms of the development, it's strategically located to the Ma Street App Walk, which is the second largest park for cargo flights in the Netherlands, is after the Amsterdam Skippel App Walk. There are savings of red state transfer tax because we are buying on a forward fund basis and we'll be funding the project progressively during the construction period and the vendor will provide a coupon of about 6% on the funding drawdowns.

The tenant is a service provider to a third party logistics provider specializing in the provision of logistics and manufacturing and management services to feed forwarders. The next slide. In the first half of FY2023, we have also completed the development of two, sorry, one slide before that. We have completed the development of, thank you, of the two UK logistics and industrial properties. This is Connection2 and Uster, and Connection2, which is located in the Bly Valley Business Park. It has three units, and all three units are leased on a 10-year lease to high-quality tenants, one who is a Tesla. The other one is Solo Pack, which is an AV solutions provider. And the third is Really, which is one of the UK's leading suppliers the leaf and escalator industry. So the project has achieved a VM of excellent rating. And

Mr. is prominently located at the entrance of the business park and the building has been constructed to high specs with a target energy performance certificate rating of A, the highest rating for energy certification. The property is pre-committed to Alean's flooring distribution on the new 15-year lease. It will be the tenant's headquarter flagship warehouse in the UK. We are also on track to complete Hot Galsmere by December, and with a committed 15-year lease to Persia, the property will also serve as a national distribution sector upon completion. Its property will also meet the BRIAM's outstanding and the EPCA rating. On the next slide, the ongoing facade enhancement to Central Park is about 65% completed. And we expect the facade enhancement works under night illumination to erase central parks value propositioned and attractiveness to both existing and potential occupiers.

And this will be central park is actually purse a tallest building at 51 stories and the modernization of the facade will make a very strong statement in perf skyline. We works on the facade enhancement expected to complete in end of financial year 2024. I will now hand the time over to Tricia who will take you through the financial performance. Thanks Antia. So for the FY2023 results of the FLCT reported a revenue of $420.8 million and adjusted MPI of $311.4 million. This is a decrease of 6.5% and 9% respectively. The year-on-year decreases were mainly due to three main factors, the WUPA exchange rates of the AUD against HPD over the period. So the average AUD was down about 7.7% and there was also lower average occupancy at front of the business park,