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Sabana Shari’ah Compliant REIT3Q 2012 Results Presentation

18 October 2012

This presentation shall be read in conjunction with the financial information of Sabana Shari’ah CompliantIndustrial Real Estate Investment Trust (“Sabana Shari’ah Compliant REIT” or the “Trust”) for the periodfrom 1 July 2012 to 30 September 2012.

This presentation may contain forward‐looking statements that involve risks and uncertainties. Actual futureperformance, outcomes and results may differ materially from those expressed in forward‐lookingstatements as a result of a number of risks, uncertainties and assumptions.

Representative examples of these factors include (without limitation) general industry and economicconditions, interest rate trends, cost of capital and capital availability, competition from similardevelopments, shifts in expected levels of property rental income, changes in operating expenses, includingemployee wages, benefits and training, property expenses and governmental and public policy changes andthe continued availability of financing in the amounts and the terms necessary to support future business.You are cautioned not to place undue reliance on these forward looking statements, which are based oncurrent view of management on future events.

Any discrepancies in the tables included in this presentation between the listed amounts and total thereofare due to rounding.

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Disclaimers

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II. Financial performance III. Capital management

I. Key highlights for 3Q 2012

IV. Asset management

V Outlook

Contents

VI. Corporate social responsibility

VII. Distribution details

Key highlights for 3Q 2012

1) Steady growth in gross revenue, DPU and value

• Gross revenue grew by 16.7% y-o-y to S$20.3m from S$17.4m.

• 3Q 2012 DPU increased by 9.3% year-on-year (“y-o-y”) to 2.34 cents from 2.14 cents in3Q 2011.

• Unit price reached all-time high of S$1.145(1).

2) Portfolio updates

• Completed the acquisition of 23 Serangoon North Avenue 5 on 1 October 2012.

• Total asset under management now at approximately S$1.1 bn.

• High occupancy rate of 99.9% at portfolio level.

3) Capital management

• Completed refinancing with S$258.6m Additional Commodity Murabaha Facilities (“CMF”).

• Successfully launched S$80.0m landmark Convertible Sukuk.

• Average all-in financing cost(2) lowered from 4.8% p.a. in 3Q 2011 to 4.3% p.a..

• Weighted average tenor of debt increased to approximately 3.5 years as at 30 September2012 from approximately 2.2 years as at 31 December 2011.

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Note:(1) Unit price of S$1.145 as of 28 September 2012.(2) Inclusive of amortisation of transaction costs.

Unit price performance in 2012(1)

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Notes:(1) Q1 2011 refers to the financial period from the date of the listing of Sabana Shari’ah Compliant REIT i.e. 26 November 2012 to 31 March 2011.Note:(1) Based on monthly closing prices in 2012. Source: ShareInvestor.

0.88

0.9250.955 0.96 0.95

0.975

1.011.045

1.145

0.8

1.0

1.2

Jan

Feb

Mar

Apr

May Jun

Jul

Aug Sep

S$

Stable and attractive yield

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Notes:(1) Based on Sabana Shari’ah Compliant REIT’s closing price of S$1.145 as of 30 September 2012 and Annualized DPU for the period from 1 July 2012 to 30 September 2012.(2) Source: “S-REIT Table”. OCBC Investment Research. 8 October 2012.(3) Prevailing CPF Ordinary Account interest rate as of 30 September 2012. “http://mycpf.cpf.gov.sg/CPF/News/News-Release/N_16Aug2012.htm”. Central Provident Fund Board.

Web. 5 October 2012.(4) MAS data as of 30 September 2012. https://secure.sgs.gov.sg/fdanet/SgsBenchmarkIssuePrices.aspx”. Monetary Authority of Singapore. Web. 5 October 2012.(5) Refer to average rates compiled from that quoted by 10 leading banks and finance companies as of September 2012.

https://secure.mas.gov.sg/msb/InterestRatesOfBanksAndFinanceCompanies.aspx”. Monetary Authority of Singapore. Web. 5 October 2012.

0.3%

8.13%

6.3%

2.5%

1.5%

3Q 2012annualised yield

S-REIT forwardyield

CPF OrdinaryAccount interestrate per annum

SingaporeGovernment 10-

year bond

Banks 12-monthfixed deposits

(1) (2)

(3) (4)

(5)

Increasing recognition internationally

Sabana Shari’ah Compliant REIT has won ten regional/international awards since its IPO. The most recent ones include the following:

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In January 2012, Sabana Shari’ah Compliant REIT was awarded “The Gold StandardAward for Corporate Financial Communications” for the year 2011, by PublicAffairsAsia,a provider of news, features, analysis and intelligence on practice and policy across theAsia Pacific region. The award recognises the Trust’s outstanding communication effortsat IPO.

In February 2012, Sabana Shari’ah Compliant REIT was awarded “Best DomesticSecuritization” at The Asset Triple A Regional Deal Awards 2011 for the S$132.0 millionIslamic securitisation facility it launched in November 2011.

In October 2012, Sabana Shari’ah Compliant REIT was voted “Most Innovative AssetManagement Company” and “Best Investor Relations by an Asset ManagementCompany” by the 2nd Islamic Finance News Islamic Investor Poll, which was participatedby institutional investors, money managers, private bankers, investment analysts,treasurers and other recognized investors globally.

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V. Outlook

Contents



3Q 2012 outperforms forecast

For the quarter ended 30 September 2012

Notes:(1) Based on figures for the Projection Year 2012 as stated in the IPO Prospectus, prorated for the period from 1 July 2012 to 30 September 2012.(2) DPU and annualised DPU for the period from 1 July 2012 to 30 September 2012 are based on the actual number of units in issue and to be issued of 640,490,459 as at 30

September 2012.(3) Based on the last traded price of S$1.13 per unit as at 17 October 2012.

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(in S$'000) 3Q 2012 Actual

3Q 2012Forecast(1)

Fav/(Unfav)(%)

Gross revenue 20,311 17,222 17.9

Net property income (NPI) 19,121 16,539 15.6

Income available for distribution 15,000 13,818 8.6

Distribution per unit (DPU) (in cents)(2) 2.34 2.17 7.8

Annualised DPU (in cents) 9.31 8.67 7.4

Annualised distribution yield:

IPO price at S$1.05 8.87% 8.25% 7.5

Closing price at S$1.13(3) 8.24% 7.67% 7.4

Financial performance

• Gross revenue and NPI exceededforecasts by 17.9% and 15.6%respectively.

• Property expenses were 74.2%above forecast, mainly due to higherproperty tax, land rent, propertyand lease management fees for thefive new properties acquired in Q42011, as well as for 1 Tuas Avenue4.

• Net financing costs were 67.0%higher than forecast mainly due tothe additional S$144.3m CMF drawndown in 4Q 2011 and the S$80.0mConvertible Sukuk issued in 3Q2012.

• Manager’s fees and Trustee’s feesexceeded forecast by 24.8% and27.6% respectively, mainly due tothe new acquisitions made in 4Q2011.

• Other trust expenses exceededforecast by 124.0%, mainly due tohigher legal, advisory and valuationfees.

Notes:(1) Based on figures for the Projection Year 2012 as stated in the IPO Prospectus, prorated for the period from 1 July 2012 to 30 September 2012.(2) Comprise the portion of management fees paid in Units, donation of non-Shari’ah compliant income, amortisation of capitalised transaction costs incurred on the CMF and

Convertible Sukuk, straight-lining adjustments on rental income for accounting purposes, amortisation of intangible assets, Trustee’s fees and other expenses which are non-deductible/chargeable for tax purposes.

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For the quarter ended 30 September 2012

(in S$'000) 3Q 2012Actual

3Q 2012Forecast(1)

Fav/(Unfav)(%)

Gross revenue 20,311 17,222 17.9Property expenses (1,190) (683) (74.2)NPI 19,121 16,539 15.6Net financing costs (4,181) (2,503) (67.0)Amortisation of intangible assets (331) (327) (1.2)Manager's fees (1,358) (1,088) (24.8)Trustee's fees (111) (87) (27.6)Donation of non‐Shari'ah compliant income (33) (33) ‐Other trust expenses (793) (354) (124.0)Net income 12,314 12,147 1.4Net change in fair value of financial derivatives (2,015) ‐ N.M

Distribution adjustments(2) 4,701 1,671 181.3Distributable income 15,000 13,818 8.6

Balance sheet

Notes:(1) Comprises 639,527,534 units in issue as at 30 September 2012 and 962,925 units to be issued to the Manager by 31 October 2012 as partial consideration of Manager’s

fees incurred for the period from 1 July 2012 to 30 September 2012.(2) Excludes distributable income of S$15.0m available for distribution for the quarter ended 30 September 2012.

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As at 30 September 2012 S$'000

Investment properties 1,043,887Intangible assets 3,575Other assets 89,316Total assets 1,136,778Debt, at amortised cost 419,967Other liabilities 39,407Total liabilities 459,374Net assets attributable to unitholders 677,404Units in issue(1) 640,490,459NAV per unit (S$) 1.06Adjusted NAV per unit(2) (S$) 1.03

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V. Outlook

Contents



13

Successfully issued S$80.0m in principal amount of 4.5% Convertible Sukuk(2) due 2017 on24 September 2012.

Proceeds from unsecured Convertible Sukuk mainly used to fund the acquisition of 23Serangoon North Avenue 5 on 1 October 2012.

Remaining proceeds used to repay S$18.0m Revolving CMF and the partial settlement ofissuance- and acquisition-related fees and expenses.

Issuance of Convertible

Sukuk

Completed refinancing on 28 August 2012 with S$258.6m of Additional CMF(1). Proceeds from the new three- and five-year Term Facilities fully used to refinance the

Trust’s two- and three-year Term Facilities of S$252.6m due to mature on 26 November2013.

Profit-rate swaps in place - fixed rates for Term Facilities.

Loan refinancing

Average all-in financing cost(3) lowered from 4.8% p.a. in 3Q 2011 to 4.3% p.a.. Weighted average tenor of debt increased to approx. 3.5 years from the earlier 2.2

years(4). Created the first Convertible Sukuk in Singapore. Successful issuance offers an additional source of funding to the Trust. Aggregate leverage(5) of 38.3% is within target.

Results

Capital management activities in 2012

Notes:(1) Shari’ah compliance as assessed by Independent Shari’ah Committee based on HSBC Amanah Central Shari’ah Committee’s Shari’ah Certification.(2) Shari’ah compliance as assessed by the Shari’ah Supervisory Board of Morgan Stanley.(3) Inclusive of amortisation of transaction costs.(4) Weight average term of debt was 2.2 years as of 31 December 2011.(5) Ratio of total debt and deferred payment over deposited properties as defined in the Property Funds Appendix of the Code on Collective Investment Schemes.

Debt maturity profile

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Before CMF refinancing and Convertible Sukuk issuance(1)

S$264.6m

S$100.2m

0

100

200

300

2013 2014

CMFNote:(1) As of 30 September 2012.

S$

m

Debt maturity profile

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After CMF refinancing and Convertible Sukuk issuance(1)

Note:(1) As of 30 September 2012.

S$100.2m

S$177.6m

S$155.0m

0

100

200

2013 2014 2015 2016 2017

CMF Convertible Sukuk

S$

m

Capital structure at a glance

Notes:(1) Ratio of total debt and deferred payment over deposited properties as defined in the Property Funds Appendix of the Code on Collective Investment Schemes.(2) Inclusive of amortisation of transaction costs.(3) Effective financing cost (inclusive of transaction costs capitalised) for Projection Year 2012 is 4.50%.(4) Ratio of Net Property Income over interest expense (excluding amortisation and other fees) for the period from 1 July 2012 to 30 September 2012.

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As at 30 September 2012

Borrowings S$432.8m

Aggregate leverage(1) 38.3%

Average all-in financing cost(2)(3) 4.3%

Outstanding Term CMF S$352.8m

Convertible Sukuk due 2017 S$80.0m

Weighted average tenor of debt 3.5 years

Interest cover(4) 5.5 times

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V. Outlook

Contents



Quality portfolio strategically located

Properties are located in high-tech industrial and logistic hubs across Singapore, in close proximity to expressways and public transportation

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Note:(1) The acquisition of 23 Serangoon North Avenue 5 was completed on 1 October 2012.

(1)

Latest addition to the Trust’s portfolio

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23 Serangoon North Avenue 5,acquired on 1 October 2012, is a purpose-built fivestorey high-tech industrial building, with a mezzaninelevel built in 2008. It is located at the northeastregion of Singapore, within the Serangoon NorthIndustrial Estate, off Yio Chu Kang Road. It is easilyaccessible via the Central Expressway and isapproximately 12.0 kilometres from the city centre.

Purchase Price: S$61,000,000

Acquisition Fee to Manager: S$610,000

Other Transaction Costs: S$213,500 approximately

Vendor: Ban Teck Han Enterprise Co Pte Ltd

Valuation by Knight Frank Pte Ltd: S$61,000,000

Land Title: 30 + 20 years 15 days (from 16 Sept 2006)

GFA: 159,384 sq ft

Remaining lease tenure: approx. 44 years (as at 30 September 2012)

Occupancy: 100.0%

High occupancy rates

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Notes:(1) Weighted by gross revenue.(2) Weighted by GFA.

As at 30 September 2012

Total portfolio gross floor area (“GFA”) 3,998,796 sq ft

Portfolio occupancy:

19 properties (17 triple net & 2 single net master leases) 100.0%

1 property, multi-tenanted (9 Tai Seng Drive) 98.4%

Weighted average lease term to expiry(1) 2.4 years

Weighted average unexpired lease term for the underlying land(2) 39.4 years

• High-tech Industrial• Chemical Warehouse & Logistics

Asset Breakdown by GFA for 3Q 2012(1) Gross Revenue by Asset Type for 3Q 2012(1)

Diverse asset types

• Warehouse & Logistics• General Industrial

Sabana Shari’ah Compliant REIT’s portfolio is diversified in the following asset types:

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High-tech Industrial

40.1%

Warehouse & Logistics33.6%

General Industrial

15.8%

Chemical Warehouse &

Logistics10.5%

High-tech Industrial

53.6%

Warehouse & Logistics23.8%

General Industrial

11.3%

Chemical Warehouse &

Logistics 11.3%


Long weighted average leasehold for underlying land

Percentage of unexpired land lease term by GFA(1)

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Note:(1) As at 30 September 2012, weighted by GFA.

Well distributed, long underlying land leases, with an average of 39.4 years.

10.4%7.3%

‐

17.9%

54.0%

5.9% 4.5%

2032 ‐ 2036 2037 ‐ 2041 2042 ‐2046 2047 ‐2051 2052 ‐ 2056 2057‐ 2061 Beyond 2061

Long weighted average master lease duration

Lease Expiry Profile by Gross Revenue(1)

Weighted average lease term to expiry of 2.4 years provides income stability.

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‐

47.4%

9.2%

36.3%

3.2% 3.9%

2012 2013 2014 2015 2016 Beyond 2016

Note:(1) As at 30 September 2012, weighted by gross revenue.

Quality assets attract quality tenants

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Note:(1) Weighted by sub-tenancy gross rent.

As at 30 Sep 2012

As at 30 Jun 2012

Total net lettable area (“NLA”) (sq ft) 3,165,643 3,165,643

Total number of sub-tenants 138 138

Weighted average lease term to expiry (mths)(1) 20.0 20.2

Sub-tenants’ industry diversification by NLA(1):

Diverse sub‐tenant base

No concentration in any single trade sector

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General Manufacturing

0.6%

Construction & Utilities2.6%F&B

3.1%

R&D1.9%

Storage7.7%

Info-technology

7.1%

Engineering5.4%

Healthcare3.2%

Logistics17.7%

Telecommunication & Data

Warehousing15.3%

Electronics13.8%

Others12.4%

Chemical9.2%

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V. Outlook

Contents



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Outlook

Industrial property market remains stable• Uncertainties about the global economy and weak economic data for 3Q 2012 have led to

decreased demand for industrial space among export-sensitive and heavy industries.(2)

• However, the market managed to gain support from the oil and gas, third party logistics,health and pharmaceutical industries. Industrial rents therefore remained stable in 3Q 2012on a q-o-q basis.(2)

• Meanwhile, Savills Singapore expects industrial property prices to increase by 5.1% in 4Q2012 and 2.5% in 1Q 2013.(3)

Industrial Property Market

Singapore economy continues to grow• According to Ministry of Trade & Industry’s advance estimates, the Singapore economy grew

at a modest pace of 1.3 per cent on a year-on-year basis in 3Q 2012.• Economic growth in the 2Q 2012 was better than expected, resulting in an upward revision of

quarter-on-quarter annualised growth from -0.7 per cent to 0.2% per cent.(1)

• The Singapore economy remains on track to grow by 1.5 to 2.5 per cent in 2012.

Singapore Economy

• Despite the subdued outlook for the global economy and the Singapore industrial propertymarket, the Manager is positive about the Trust’s performance for 2012, given that themajority of the existing master leases will not expire until the end of 2013, and beyond.

The Trust

Sources:(1) “Singapore remains on track to grow by 1.5 to 2.5 per cent in 2012”. www.mti.com.sg. Ministry of Trade and Industry. 12 October 2012. Web. 12 October 2012.(2) “Q3 2012 Singapore Market Overview: Singapore Property Market Resilient In The Face Of Global Economic Slowdown; Investment Sales Remain Active”. www.cbre.com.sg. CBRE.

Web. 12 October 2012.(3) “Industrial property prices expected to rise in Q3”. www.channelnewsasia.com. Channel News Asia. 27 September 2012. Web. 12 October 2012.

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V. Outlook

Contents



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Corporate social responsibility

Sabana Shari’ah Compliant REIT continues to support local communities by donating itsnon-Shari’ah income to charities. The following organisation was chosen to benefit from its3Q 2012 non-Shari’ah income:

Organisation: MENDAKI Social Enterprise Network Services (“MENDAKISense”)

Purpose: MENDAKI Sense is the training arm of Yayasan MENDAKI, set up tohelp individuals who are affected by the structural changes in the economy. TheTrust will be donating S$33,004 to MENDAKI Sense, which will be used for itscontinuing education and training services, employment facilitation services andsocial enterprises, aimed to enhance the competitiveness and confidence of theseindividuals.

The total amount of S$33,004 allocated to the organisations above represents approximately 0.2% of Sabana Shari’ah Compliant REIT’s 3Q 2012 gross revenue.

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V. Outlook

Contents



Distribution details

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Stock counter Distribution period DPU (cents)

SABANA REIT Code: M1GU 1 July 2012 to 30 September 2012 2.34

Distribution Timetable

Ex-date 24 October 2012, 9am

Books closure date 29 October 2012, 5pm

Distribution payment date 28 November 2012

Donations to approved charities 28 November 2012 or earlier

Sabana Real Estate Investment Management Pte. Ltd.151 Lorong Chuan#02-03 New Tech ParkSingapore 556741

www.sabana-reit.com

Tel: +65 6580 7750Fax: +65 6280 4700

For enquires, please contact:

Mr Bobby TayChief Strategy Officer & Head of Investor RelationsTel: +65 6580 7750Email: [email protected]

Ms Grace ChenManager, Investor RelationsTel: +65 6580 7857Email: [email protected]

Thank you!

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Important Notice

This presentation is for information only and does not constitute an offer, invitation or solicitation of securitiesin Singapore or any other jurisdiction nor should it or any part of it form the basis of, or be relied upon inconnection with, any contract or commitment whatsoever.

The value of the Units and the income derived from them may fall as well as rise. Units are not obligations of,deposits in, or guaranteed by, the Manager, HSBC Institutional Trust Services (Singapore) Limited, as trusteeof Sabana Shari’ah Compliant Industrial Real Estate Investment Trust, Freight Links Express Holdings Limited,the Joint Bookrunners or any of their respective affiliates.

An investment in the Units is subject to investment risks, including the possible loss of the principal amountinvested. Investors have no right to request that the Manager redeem or purchase their Units while the Unitsare listed. It is intended that Unitholders may only deal in their Units through trading on the SGX-ST. Listing ofthe Units on the SGX-ST does not guarantee a liquid market for the Units.

This presentation is not an offer or sale of the Units in the United States. The Units have not been and will notbe registered under the United States Securities Act of 1933, as amended (the "Securities Act") and may notbe offered or sold in the United States absent registration except pursuant to an exemption from, or in atransaction not subject to, registration under the Securities Act. Any public offering of the Units to be made inthe United States will be made by means of a prospectus that may be obtained from the Manager or SabanaShari’ah Compliant Industrial Real Estate Investment Trust and that will contain detailed information aboutSabana Shari’ah Compliant Industrial Real Estate Investment Trust, the Manager and its management, as wellas financial statements. Sabana Shari’ah Compliant Industrial Real Estate Investment Trust does not intend toregister any portion of the offering in the United States or to conduct a public offering of securities in theUnited States. Accordingly, the Units are being offered and sold outside the United States (including toinstitutional and other investors in Singapore) in reliance on Regulation S under the Securities Act.

This presentation is not to be distributed or circulated outside of Singapore. Any failure to comply with thisrestriction may constitute a violation of United States securities laws or the laws of any other jurisdiction.

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