Suntec Reit FY 2016 AGM - Notes

CEO Presentation:

1. New CEO. Longtime CEO Mr Yeo See Kiat has handed over to Mr Chan Kong Leong, who was previously COO of the reit.

2. Acquired a second Australian property last year. This has supported net property income while diversifying sources of revenue whilst the Singapore properties are experiencing a slowdown, as well as the loss of income from Park Mall.

3. Leveraging on technology: Suntec rewards app has 70k users. I became 1 of them today as signing up as an AGM attendee gives me free $5 suntec voucher!

4. Footfall: CEO emphasized the increase in human traffic since the major AEI to Suntec City. Many new brand stores have opened their first branch here in Suntec, such as Xiaomi and Bed, Bath & Table. As Suntec has been undergoing renovations from 2012 to 2015, now they are trying to win back market share.

5. Suntec City has flagship retail outlets. Eg Superdry, Tokyu Hands.

6. The convention center has received many awards since revamp in 2013 and is connected to virtually all the MRT lines. Also has ~3600 car park lots (1 of the biggest as it was built before BCA (or another government body?) set limits to carpark size) with spillover to Marina Square and Millenia Walk nearby.

7. 9 Penang Road formerly known as Park Mall: To be ready in 2019. Will be office with first level to have retail that will support office staff. Eg. F&B

Q&A:

8. A unitholder asked will there be more Australian acquisitions, however for business reasons the answer given was pretty general. He also asked why are rental reversions not listed in the report. CEO says for commercial reasons they cannot reveal the actual figures so as to get competitive rental rates.

9. Another unitholder asked why is DPU flat while AUM keeps increasing (implying only the manager benefits as part of the fees are based on AUM). John Lim says that one can't just see DPU, need to see the increase in share price since IPO. If AUM goes up, NAV goes up and share price should follow. The unitholder then asked why Suntec convention revenue is down from last year. CEO replied that last year had a lot of one-off SG50 events.

10. Someone also asks about the weak state of retail now. John Lim says to look at the whole portfolio. In Suntec City, retail is 30% of the portfolio only, so one should not only focus on retail.

Vested at $1.92