#1SG1 龍 SASSEU CUR REIT SGinvestors SASSEUR OUTL 之船 OUTLET SASSEUR REIT - Growing in a Sunrise Industry First Listed Outlet Mall REIT in Asia Phillip Securities Investor Webinar 16 Sep 2020#2Disclaimer Not for release, publication or distribution in or into the United States, Canada, Japan or the People's Republic of China. This presentation shall be read in conjunction with Sasseur REIT's financial results announcement dated 14 August 2020 published on SGX Net. This presentation is for information only and does not constitute or form part of an offer, invitation or solicitation of any offer to purchase or subscribe for any securities of Sasseur REIT in Singapore or any other jurisdiction nor should it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. The value of the units in Sasseur REIT ("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, DBS Trustee Limited, as trustee of Sasseur REIT, Sasseur Cayman Holding Limited, as sponsor of Sasseur REIT or any of their respective affiliates. An investment in the Units is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request that the Manager redeem or purchase their Units while the Units are listed. It is intended that unitholders of Sasseur REIT may only deal in their Units through trading on Singapore Exchange Securities Trading Limited (the "SGX-ST"). Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. The past performance of Sasseur REIT is not necessarily indicative of the future performance of Sasseur REIT. This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. These forward-looking statements speak only as at the date of this presentation. No assurance can be given that future events will occur, that projections will be achieved, or that assumptions are correct. Representative example of these factors include (without limitation) general industry and economic conditions, interest rate trends, costs of capital and capital availability, competition from similar developments, shifts in expected levels of rental revenue, changes in operating expenses, property expenses, governmental and public policy changes and the continued availability of financing in the amounts and the terms to support future business. Investors are cautioned not to place undue reliance on these forward-looking statements which are based on the current view of management on future events. 2 REIT SGinvestors SASSEUR#3Content Section 1 Key Investment Highlights Section 2 Overview of PRC's Outlet Market Section 3 About Sasseur REIT Section 4 About Sasseur Group Section 5 Entrusted Management Agreement ("EMA") Model Section 6 2Q 2020 Financial Results Section 7 Capital Management Section 8 Portfolio Update Section 9 Investment Merits SGinvestors REIT SASSEUR 3#4Key Investment Highlights EXPOSURE TO THE PRC'S FAST-GROWING RETAIL OUTLET MALL SECTOR STRONG GROWTH POTENTIAL STRATEGICALLY LOCATED PORTFOLIO IN FAST-GROWING CITIES (1) Source: China Insights Consultancy Growing middle-class population in the PRC creates a large potential customer base for the outlet mall market in the PRC Resulting increase in spending power represents a sweet spot for the retail outlet mall industry The PRC's outlet industry expected to become the world's largest outlet market in terms of sales revenue by 2030 (1) Two right of first refusal properties ("ROFR Properties") and nine Pipeline Properties Assuming Sasseur REIT acquires the full interest in the ROFR Properties and Pipeline Properties, it will almost quadraple the total gross floor area of the Initial Portfolio Leading privately-owned outlet mall operator in the Chinese outlet mall industry1 First-mover advantage in the Tier-2 PRC cities with an increasing addressable market size(2) Diversified mix of tenants across various trade sectors (2) Defined as the sales revenue opportunity available in the outlet industry after considering information such as economic development, population size, residents' disposable income and outlets penetration SGinvestors REIT SASSEUR#5Overview of PRC's Outlet Market Robust retail sales performance in PRC PRC's total retail sales value for consumer goods is expected to grow at CAGR of 8.7% between 2016 to 2021, in line with growth in GDP and income levels. Total retail sales value of consumer goods, China, 2012-2021E RMB trillion 60.0 50.0 CAGR (2012-2016): 11.6% CAGR (2016-2021E): 8.7% 49.6 45.5 41.7 38.2 40.0 35.1 32.6 30.1 27.2 30.0 24.3 21.0 20.0 10.0 0.0 2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E 2021E Total retail sales value for consumer goods Source: Extracted from National Bureau of Statistics of China (March, 2017) China Insights Consultancy (March, 2017) 5 REIT SGinvestors SASSEUR#6Overview of PRC's Outlet Market Riding on the aspiration of 2 1 PRC's fast growing middle class Middle class population in China (million) 109 CAGR: 12.1% Retail Market Growth Projection Total Sales in China Retail (RMB billion) CAGR: 2016-2021E 144.9 24.2% 12,034.9 19.8% 216 49.1 4,884.4 8.4% 502.4 335.0 1263.1 5.6% 1,654.8 2016 2021E Retail Mall Outlets 2015 2021E Higher urbanization rates to help shift the economy towards a consumption- based model of economic growth Department Store Online Platform A young industry – outlet market size is only approximately 1% of online platform. Source: China Insights Consultancy - Independent Market Research Report SGinvestors REIT SASSEUR 6#7Overview of PRC's Outlet Market 3 Large supply gap presenting upside opportunity China's Outlet Industry (RMB billion) CAGR: 24.2% Supply 144.9 gap 30.6 49.1 2016 2021E Supply gap represents market opportunity for the outlet industry Source: China Insights Consultancy - Independent Market Research Report Supply gap 0.5 4 Young industry with ample room to grow further China's Outlet Industry (RMB billion) US$96.2 US$91.5 CAGR: 17.9% 640 609 U.S. Outlet Industry CAGR: 24.2% 145 49 2016 2021E 2030E Year 2030 Projected PRC vs U.S. outlet industry US$96.2B vs US$91.5B SGinvestors REIT SASSEUR 7#8About Sasseur REIT First Outlet Mall REIT listed in Asia SGinvestors REIT SASSEUR 80#9Sasseur REIT Structure Offshore 100.0% SGinvestors REIT SASSEUR Chairman Xu L Catterton Asia Ping An Real Estate Sasseur Cayman 100.0% Cayman Hold Co 58.6% REIT Manager Bishan Offshore HoldCos 100.0% Sasseur REIT 100% SG Hold Co Public 41.4% Trustee Hefei Offshore HoldCos 100.0% Kunming Offshore HoldCos 100.0% Onshore Entrusted Manager Bishan PRC Hold Co Hefei PRC Hold Co 15.0% Entrusted Management Agreements 85.0% Chongqing PRC HoldCo (1) 100.0% 100.0% 100.0% Chongqing Outlets Bishan Outlets Hefei Outlets Kunming PRC Hold Co 100.0% Kunming Outlets (1) Holds 40% interest in Chongqing West Outlets Brand Discount Commercial Co., Ltd. and Shanghai Pacific Rehouse Service Chongqing Co., Ltd.. Remaining 60% interest is held by Shanghai Pacific Rehouse Service Co. Ltd., an independent third party unrelated to the Sponsor (Sasseur Cayman Holding Limited) or Sasseur REIT 6#10About Sasseur Group - Strong Sponsor Introduction to Sasseur Group Founded in 1989, Sasseur is one of the leading premium outlet groups in the People's Republic of China ("PRC"), that focuses on the development and operation of retail outlet malls in the PRC As of Sep 2020, Sasseur manages 11 outlet malls in 10 major Chinese cities Leverages on the founder's passion for art and culture to develop and design all of Sasseur's outlet malls, thus offering a unique lifestyle experience for its customers Founded by Vito Xu Vito Xu is the founder and chairman of Sasseur with a wealth of experience in the fashion industry. In 1992, he entered the clothing industry and created his own women's wear fashion line - Sasseur ■ In 2008, he built the first Sasseur outlet in Chongqing, an art piece that has won numerous awards Recipient of numerous prestigious awards 龍 Changchun Lanzhou Xi'an Nanjing Hefei Bishan Chongqing Changsha Guiyang Kunming Hangzhou 31 years of history Supported by Strategic Shareholders L CATTERTON ASIA ■ Largest pan-Asian consumer- focused private equity firm that operates within a global L Catterton platform Manages over USD 1.6 billion AUM (USD 2.6 billion with co- investments) (2) Affiliate of the Fortune 500 平安不动产专业共赢 company Ping An Insurance ■ Professional real estate PINGAN REALESTATE investment, development and (1) Provided by L Catterton Asia on 19 September 2017 management platform of Ping An Insurance (2) Extracted from Ping An Real Estate website (http://realestate.pingan.com/realestate/html/about.html) on 2 January 2020 ■ AUM of approximately RMB 420 billion (USD 60 billion)(3) 10 SGinvestors REIT SASSEUR#11About Sasseur Group - Strong Sponsor ☐ Highly Recognised Enterprise 2019 Chongqing Top 100 Enterprise (Service Industry) - Ranked 15th place 2019 Chongqing Top 100 Enterprise - Ranked 39 th Place with Revenue Over RMB 10 Billion 2019 China Top 500 Enterprise in Service Industry - Ranked 313th place ■ Awarded National Enterprise Credit Grade AAA ■ One of the Leading Operators in China's Outlet Industry 11 Outlets Under Management, 4 More in the Pipeline Among the 11 outlets in operation, 5 outlets achieve sales above RMB 1 billion in 2019 1,700 International and Local Brands ◉ >55 Million Outlet Visitors in 2019 ◉ 4.2 Million VIP Members across All Outlets Source: Sasseur Group 2019 Performance Figures 2019 Sales Revenue > RMB 2.5 Billion > RMB 1.5 Billion > RMB 1.5 Billion RMB 1.0 Billion > RMB 1.0 Billion rrrra Sasseur (Chongqing) Outlet Sasseur (Nanjing) Outlet Sasseur (Xi'an) Outlet Sasseur (Hefei) Outlet Sasseur (Guiyang) Outlet 11 SGinvestors REIT SASSEUR#12Chairman Vito Xu - Profile THE SASSEUR STORY DIALOGUE BETWEEN ART AND BUSINESS The 1980s was a time of wonder, dreams and romance for mainland China, a golden age of spiritual and philosophical enlightenment, freedom and artistic expression. During those days of transition from a planned to a more capitalist economy, life was hard and material goods were scarce. That was when a large number of China's most outstanding post-modern poets, novelists, painters and musicians emerged and whose influence continues to this day. Mr Vito Xu Founder and Chairman We want our malls to have a soul that creates affinity with shoppers. ART COMMERCE Xu Rongcan's affinity with artistry in the practice of business (what he termed "Art Commerce") had its roots in Southwest China Normal University located at Beibei, a scenic town in the outskirts of Chongqing. As a young man of 20, on a creaking old bicycle, with wind caressing his hippie styled hair, rucksack on his shoulder, his most valuable possessions were his youthful passion, dreams of artistry and an old camera. Xu, with his keen sense of art aesthetics, captured what he saw with his lens and expressed Source: Sasseur REIT Annual Report 2018 what he felt with films. He loved using black and white films to describe his feelings about the world. From literature, art, to music and life, Xu was surrounded by other young people who shared his dreams; they would often meet over beer while enjoying guitar music through the night together. To Xu, art was not two dimensional. He believed art could be experiential. In 1989, he invested RMB 6,500 and started his first brick and mortar business based on his unique art commerce concept. OUTLET From grossing his first million yuan in revenue from his shop in 1992, Mr Vito Xu's Singapore-listed Sasseur Reit last week nudged a billion dollars in market capitalisation before easing to $962 million at last Friday's market close. PHOTO SASSEUR InGoodCompany Vito Xu, don of Asian outlet malls While Chinese retail is struggling, Sasseur boss runs a bunch of profitable outlet malls Ravi Velloor Associate Editor leap by any nation In some ways, Mr Vito Xu's life mirrors the spectacular rise of China and its embrace of the outside world after the late Deng Xiaoping opened four decader Antren investment history's most ingin motion economic There's first the name, Vito, which is a favourite among Italians and draws its roots from the Latin word "vita (life). Not one you would ordinarily associate with a person born Xu Rongeun and into a humble farming family in Chongqing The chairman of Singapore -listed Sasseur Reit gave himself that name because he has been a lover of all things Italian since his student. days. That's also when he began hist entrepreneurial journey with 6,500 yuan borrowed from his mother and brother, when he opened a small cafe at his university of It wasn't the most successf businesses but, by then, the idea of in the heart of the young Xu, Two years later, while in Shenzhen, he saw an opportunity for trading in clothing and, with that insight, opened a shop in his home town. That year 1992 he grossed his first million yuan in revenue. Today, at a time when many Chinese malls are struggling, Mr Xu presides over a bunch of profitable outlet malls that he first opened in Chongqing, but is now taking Farther afield in China, Four of those malls are grouped under the Sasseur Reit, listed in March last year, which last week nudged a billion dollars in marketi capitalisation before easing to 5962 million at last Friday's market close. "My father was illiterate, but a village leader." Mr Xu told me recently, reflecting on his now businessman There was little experience in business." The young businessman went on a long tour of Italy and France in 1987 and was dazzled by what he saw. Paris and Rome were also capitals of design and high fashion. People waited breathlessly every year for the latest releases from houses such as those named after the Parisian designer Yves Saint Laurent and the Florentine genius. Salvatore Ferragamo. The people, he felt, were welcoming of him. Down in Sicily, they even thought he was Japanese because, at the time, few there had seen a Chinese person. Mr Xu felt at home. Like China, Italy too was an ancient civilisation, where people carried strong family where Returning to Chongqing, where of the drab clothing of the Manu Zedong era, he started his own. high-end fashion clothing with a shop at the Li Ka Shing-owned mall in the city's Liberation Square area. Interestingly, he sold not only but also his own brand of wom wear, which beam of women's The name stems from his first business, a cafe whose moniker translates in Chinese as "ship of song", after a famous tune of the time by a Taiwanese singer. "Sasseur is apparently a French transliteration, suggested by a Frenchman patron who was in Chongqing teaching the language. ART COMMERCE His corporate philosophy, he said, is art commerce-artistry and sophistication blended with commerce. As for his company corporate colours, the decision didn't take too long. He horrowed the national colours of Italy.on That dual approach-fascination with the foreign and an eye for the malls have shops selling the biggest global brand names such as Burberrys, Chanel, Louis Vuitton and Armani, there are plenty of Chinese brands as well with names like Li-Ning and Blasideng. That leads me to wonder aloud. why Asia, with its swiftly expanding purchasing power and vast pools of creativity, hasn't had more home-grown fashion brands. Could Sasseur play a role to advance their growth? "There are some good Chinese brands and many up-and-coming young designers," said Mr Xu, "Bur they will take time to gain more international recognition. Seven out of 10 tenants in my outlets are Chinese brands, so that's how Sasseur can help market is chasing global trends but he sees a time when young Chinese will lead fashion trends at home and display their own unique characteristics. In the popular perception of China, the nation is a den of counterfeit goods and knock-offs of global brands with weak protection for intellectual property. But things may be changing. Earlier this year, Shiseido chief executive Masahiko Uotani tied up with Alibaba, the Chinese e-commerce platform company, to sell high-end cosmetics in China. When I expressed surprise to Mr Uotani that such a premium brand would link up with Alibaba, he gave me a perfectly reasonable explanation Within Alibaba, he told me, there are two channels. One is a low-end offering like abacustomers. including in rural China. The other i corridor, with which he is involved. is focused on growing high-end brands. "Every time I meet Jack Maor their management agency, I find them keen to grow the brand. So, we give them even Cle de Peau Beaute, our most high-end product. They do no discounting and know their product segment, and know how to precisely target the affluent segment in their 500 million customers who buy those products." This was news to me at the time, So, I asked Mr Xu about how he perceived the issue himself, His own company, he said, imposed stiff penalties on any store in his outlet selling counterfeit goods. At the same time, Chinese increasingly preferred to beber genuine high-end products, if they thousands of them have been going overseas to buy the real stuff from fashion centres around the world. At home, when they buy these goods, they prefer to do it in bricks-and-mortar outlets than on online platforms because of the personal touch and lifestyle experience, he explained, shrugging off the challenge from online rivals. Not that Sasseur itself had not tried online collaborations. But it turns out that the experiment had not gone too well and the company discovered that the overlap in customers of regular stores was no more than 5 per cent at the Fast facts THE CHAIRMAN Mr Vito Xu is chairman of the Sasseur Group and its Singapore- listed real estate investment (S-Belt), Sasseur Reit. He is Born into a farming family in Erlanggang, Chongqing, Mr Xu was educated at Southwest Nor- mal University. In 1989, with 6,500 yuan, he started his four- ney of "art commerce" by creat- ing the Sasseur brand with a cof fee house. In 1992, he entered the cloth ing industry, opening a garment store and working as an agent for international brands. He then created his own women's wear brand-Sasseur. In 2008, he built Sasseur (Chongqing) Western Outlets, the first such outlet. It won that year's Top 10 Fashion Landmark of Chongqing. Mr Xu was also named Chongqing Fashion Icon by the aur Group today has 10 outlet Source: The Sunday Times 10 Nov 2019 maximum. The middle-income households that Sasseur outlets serve live within 30km of the facilities and look for lifestyle activity alongside their shopping. Online shoppers, on the other hand, tend to buy cheaper and more standardised products and tend to live farther away. WHY SINGAPORE? Most Chinese companies looking for overseas investments tend to use Hong Kong if they need a convenient window to the world and I am curious to know why Sasseur picked Singapore to list its real estate investment trust. Mr Xu said he did so on the advice of a key investor, consumer-focused private equity firm 1. Catterton veteran Anthony Ang, an Imperial College and Insead-educated technocrat whose 35-year career Included senior positions in ARA Group, GIC Real Estate and the Economic Development Board. Mr Ang explains that, while the Hong Kong stock market i significantly larger than Singapore's, its Reit market is smaller, with just 11 of the entities listed there compared with about 45 in Singapore. The S-Retts are also more international, tending to attract global investors seeking an Asian play. On a personal level. Mr Xu enjoys the island's orderliness and is Mr Xu was awarded Knight of the Order of the Italian Star by the Italian government in 2015. Married to Ms Sasseur Yang, he has three children, one of them X'savus marriage. Mr Xu's favourite hobby is tennis THE COMPANY Sasseur Reit is a Singapore-listed real estate investment trust that started trading on the Singapore Exchange in March last year The first listed outlet mall Reit in Asia, its initial portfolio com- prises four retail outlet malls in China, located in Chongqing, Bis- han, Hefei and Kunming, with a combined lettable area of 312,844 sq m and an occupancy rate of about 96 percent. Sasseur Reit is managed by Sasseur Asset Management, which is an indirect wholly owned subsidiary of Sasseur Cay man Holding as a market ca isation of $962 million, ha , based on its closing price Friday. frequently in Singapore over weekends. Indeed, he chose to send his three children here to give them international exposure, enrolling them at Stamford American School. His fashion-expert wife Yang Xue, on whom he bestowed the name Sasseur as a mark of affection and gratitude, lives here. Sasseur Reit has had a good run in the year past, clocking sales growth of 20 percent. Mr Xu sees no difficulty in maintaining that pace, more so since three of the four properties in it are new. And he plans to add more assets to the Reit in time to come. As for concerns that a falling yuan could hurt profits when translated into Singapore dollars, he said there has been enough currency hedging dollar itself has slid in recent months. The lone-term yuan Singdollar rate, he said. should be fairly stable The wider Sasseur Group has 10 outlet malls, including the four bunched in the Reit. The group, he said, is looking at unprecedented growth opportunity. The next decade will be the golden era for the outlet business in China and the many distressed retail assets of traditional retailers offer his firm a tremendous opportunity to go asset-light and turn around the ones it picks. fewer In the past 18 months, no few than 140 potential deals have been placed in front of him. The Sasseur team has been picky, signing fewer than 10 new malls, and these will be up and running in the next two to three years to know his views on retail, now that he w the island so regularly. "The Singapore retail sector is well developed but it suffers from a common problem with retail the world over most establishments are not differentiated and are lacking in the life and spirit that can excite shoppers," he said. "Retail should reflect more of local cultures and flavours so as to create an emotional connect." The mother of the tennis-loving Mr Xu died 13 years ago and his father, now 83, lives in their home village of Erlanggang. Among his many blessings, he said, is that his work meshes so much with his love. for art, while having his lady love as a business partnerold asked the dapper 54- clothing Bourite brand of "Tom Ford," he said unhesitatingly. "Somehow, their suits are cut in a way that fits me better than any other brand! know. [email protected] 12 SGinvestors REIT SASSEUR#13Sponsor's Unique "Super Outlet" Business Model: A *(1+N) DT * "1" represents the outlet mall business platform and “N” reflects the various lifestyle options offered in each of the outlet malls Unique lifestyle experience based on a combination of art in the design and decoration of its outlet malls, and as a one-stop shopping and lifestyle experience, provides resilience against competition from e-commerce REIT SGinvestors SASSEUR N SUPER SPORTS HALL N SUPER... N SUPER FARM 奥莱 OUTLETS 1 N SUPER CHILDREN'S CENTRE 13#14Sasseur - Leading Private Outlet Specialist in PRC Leading private outlet specialist in PRC Benefits of being a private outlet specialist Different Types of Outlet Operators in China Outlet Operators Operator category Applicable Not applicable Outlets Operational Experience Brand Understanding Resources of Local Market Financial Strength Beijing Capital Grand 首创 Real Estate Local Private Outlet 12 Company Specialists Local Private Sasseur 砂之船 11 Outlet Specialist SOE Retail Groups Bailian 百联 SOE Retail Group 7 Real Estate Companies Wangfujing Real Estate SCITECH 王府井赛特 Company 7 International Outlet Specialists International RDM 6 Outlet Specialist As of December 2019 Mitigated by Sasseur's access to strategic partners (L Catterton Asia & Ping An Real Estate) 14 SGinvestors REIT SASSEUR#15Sponsor's Unique "Super Outlet" Business Model 1 2 Integrated destination shopping combining "1+N” business model in the design and operation of Sasseur REIT's outlet malls Enhances resilience to competition from online retail platforms by providing a unique lifestyle shopping experience 3 Robust and proactive brand management 4 Alignment of interest with tenants through sales-based leases 5 More than 1.8 million VIP members across Sasseur REIT's portfolio 15 REIT SGinvestors SASSEUR#16■ - Outlet's Competitive Edge Against Other Retail Models Product Mix Pricing Strategy Consumer Experience Outlets Department Store Luxury and high-end brands Middle to high-end brands Shopping Mall Middle to high-end brands Normal Normal Large Discounts Suburbs Middle Class (small area with compact layout) City Center Mass Market City Center Mass Market Location Segment Authenticity Brand Owners Advantages Over Online Higher Profit Margin Quicker Payback Period Enhanced Inventory Management Online Platform Low priced products Low x (no in-store shopping experience) Mass Market Possibility of counterfeit goods Customers Better Shopping Experience Outlet Malls' Competitive Edge ☐ Product Authenticity High Discounts Access to a Wide Range of Products Why outlet is generally not impacted by e-commerce - Product mix per transaction via online platform ~ RMB 200 vs per transaction at the outlet malls ~RMB800/1000 => minimal product overlap Economics- online sales of outlet brands incur 20% commission vs 10-16% commission at the outlets. Authenticity - 10X penalty / reward for selling by merchants / reporting by customers, of fake goods ensure no fakes goods at outlet Source: China Insights Consultancy - Independent Market Research Report SGinvestors REIT SASSEUR 16#17Entrusted Management Agreement (EMA) Model REIT SGinvestors SASSEUR OUTLET SASSEUR (BISHAN) OUTLETS#18Entrusted Management Agreement Model Business Model REIT Income Model Outlet Sales Gross Revenue EMA Resultant Rent EM Base Fee Residual ~10-16% Commission FC VC GR = Total rental receivable + Income from permissible investments EMA Resultant Rent ("RR") comprises FC and VC REIT paid EMA Resultant Rent before EM Base Fee " VC is pegged to the Sales of the Outlet SGinvestors REIT SASSEUR Outlets Variable Component (% of Sales) Chongqing 4.0% Bishan 4.5% Hefei 5.5% Kunming 5.0% EM Performance Fee " EM Base Fee: Up to EM Performance Fee: 30% of GR to the Entrusted Manager 60% x (GR - RR - EM Base Fee) Payment to REIT: 40% x (GR - RR - EM Base Fee) The EMA Model aligns the interest of the Operating Manager with the REIT. 18#192Q 2020 Financial Results 6666 SASSEUR (KUNMING) OUTLETS SGinvestors REIT SASSEUR#202Q 2020 Key Highlights DPU yield 8.2% based on closing price $0.740 as at 30 Jun 2020 EMA Rental Income¹ S$28.0 million 10.7% q-o-q³ Distributable Income Distribution Per Unit² NAV Per Unit S$18.2 million 1.512 SG Cents 90.30 SG Cents 13.6% q-o-q³ 13.3% q-o-q³ 2.5% q-o-q3 1. Excluding straight-line accounting adjustments 2. For 2Q 2020, Sasseur REIT continues to distribute 100% of the distributable income to Unitholders 3. Q-o-Q comparison refers to 2Q 2020 vs 1Q 2020 SGinvestors REIT SASSEUR 20 20#212Q 2020 Key Highlights 目+ Distribution Per Unit² A NAV Per Unit EMA Rental Income¹ Distributable Income S$28.0 S$18.2 million million 1.512 SG Cents 4.0% y-o-y³ 5.2% y-o-y³ 6.0% y-o-y³ 1. Excluding straight-line accounting adjustments 2. For 2Q 2020, Sasseur REIT continues to distribute 100% of the distributable income to Unitholders 3. Y-o-Y comparison refers to 2Q 2020 vs 2Q 2019 90.30 SG Cents 12.9% vs IPO 21 SGinvestors REIT SASSEUR#222Q 2020 Key Highlights EMA Fixed Component +3.9% vs 2Q 2019 Sales RMB 835.7 million 1Q 2020: RMB 534.5 million Aggregate Leverage 28.1% 1Q 2020: 28.5% EMA Variable Component -18.8% vs 2Q 2019 1. Weighted average lease expiry by net lettable area. Weighted Average Lease Expiry¹ 2.7 years Occupancy 93.6% 1Q 2020: 94.8% SGinvestors REIT SASSEUR 22 22#23Financial Results ww M 524 AA 手 ARMAN OUTLETS UME BOTTIGA VARTA Erengku Zegan COACH DD ART BUSINESS SGinvestors REIT SASSEUR MaxMars CERRUTI 1881 MICHAEL KORS Calvin Jone SASSEUR (CHONGQING) OUTLETS#242Q 2020 EMA Rental Income Increased 10.7% vs 1Q 2020 SGinvestors REIT SASSEUR 2Q 2020 1Q 2020 Change % 2Q 2019 Change % Change 1H 2020 1H 2019 % Fixed Component 102.4 102.4 98.5 +3.9 204.8 197.1 +3.9 (RMB mil) Variable Component 38.5 24.8 +55.4 47.5 -18.8 63.3 102.2 -38.1 (RMB mil) EMA Rental Income1 140.9 127.2 +10.8 146.0 -3.5 268.1 299.3 -10.4 (RMB mil) EMA Rental Income1, 2 28.0 25.3 +10.7 29.1 -4.0 53.2 60.0 -11.3 (S$ mil) Distributable Income 18.2 16.0 +13.6 19.2 -5.2 34.2 38.9 -12.1 (S$ mil) DPU (SG cents) 1.512 1.334 +13.3 1.608 -6.0 2.846 3.264 -12.8 1. Excluding straight-line accounting adjustments 2. Using the average SGD:RMB rate for the period 2Q 2020 5.0381, 1Q 2020 5.0339, 2Q 2019 5.0094, 1H2020 5.0360 and 1H 2019 4.9880 24 24#25Healthy Balance Sheet S$ mil Investment properties Cash and short-term deposits Other assets Total Assets Loans and borrowings Other liabilities Total Liabilities Net Assets NAV per unit (cents) 1 Aggregate Leverage 30 Jun 2020 1,617.3 119.7 31 Dec 2019 1,587.2 154.7 27.3 28.5 1,764.3 1,770.4 483.8 478.6 193.5 222.6 677.3 701.2 1,087.0 1,069.2 90.30 89.20 28.1% 27.8% 1. Based on units in issue and issuable of 1,203,789,210 and 1,198,678,588 as at 30 June 2020 and 31 December 2019 respectively. REIT SGinvestors SASSEUR 25#26Distribution Details Distribution Period Distribution Per Unit¹ 1 April to 30 June 2020 1.512 Singapore cents 1. Based on 100% distribution pay-out ratio Distribution Timetable Notice of Books Closure Date 14 August 2020 Ex-dividend Date 28 August 2020 Books Closure Date Distribution Payment Date 31 August 2020 25 September 2020 26 REIT SGinvestors SASSEUR#27Distribution History Quarter 28 Mar to 30 Jun 2019 DPU (SG Cents) Ex-dividend Date 20 Aug 2018 1.587 1 Jul to 31 Dec 2018 3.541 4 Mar 2019 2018 Total Distribution 1Q 2019 2Q 2019 5.128 1.656 27 May 2019 1.608 22 Aug 2019 3Q 2019 1.640 28 Nov 2019 4Q 2019 1.629 5 Mar 2020 2019 Total Distribution 6.533 1Q 2020 1.334 28 May 2020 2Q 2020 1.512 28 Aug 2020 27 REIT SGinvestors SASSEUR#28Sasseur REIT Yield vs Other Asset Classes Sasseur REIT Distribution Yield1 Average of the 44 S-REITS and Property 2 Trust 2 STI Index CPF Ordinary Account Interest Rate 3 MAS Benchmark Govt Bond 10 Year 0.9% 4 Singapore Fixed Deposit Rate 0.5% 2.5% Notes: 1. Distribution yield based on annualised DPU and closing price of S$0.740 as at 30 June 2020 2. Based on 12M Average Dividend Yield 3. Based on 10 Year Yield 4. 12M Bank fixed deposit rates from MAS as of 30 June 2020 Source: Bloomberg, SGX, Central Provident Fund (CPF) Board, data as of 30 June 2020 4.9% 7.1% 8.2% SGinvestors REIT SASSEUR 28#29Capital Management 罢砂之船 逛奥莱 OUTLETS 2 4.23 璀璨起法 OUTLE 砂之船~ OUTLET REIT SGinvestors SASSEUR SASSEUR (HEFEI) OUTLETS#30Prudent Capital Management After refinancing: 2.74 years $ Aggregate Leverage 嚄 2Q 2020 28.1% 4Q 2019 27.8% Average Debt Maturity 2.23 years % Interest Coverage Ratio Weighted Average Cost of Debt 5.0 times 4.17% p.a. 2.73 years 4.8 times 4.41% p.a. After completion of refinancing on 10 Sep 2020 and partial repayment of onshore loans by 30 Sep 2020 Loan Facilities Onshore Currency RMB Outstanding Quantum1 Maturity Floating Rate ~SGD 270 million (RMB 1.35 billion) March 2023 PBOC benchmark 1-5 years lending rate 1. Based on SGD to RMB exchange rate of 4.9975 as at 10 September 2020 Offshore SGD/USD ~SGD 250 million (~RMB 1.25 billion) March 2023 Singapore SOR/ LIBOR 30 REIT SGinvestors SASSEUR#31Prudent Capital Management Debt Facilities (SGD million) Debt Headroom¹ 554 Debt Headroom¹ 774 Debt Headroom¹ 724 Offshore Debts 125 Offshore Debts 125 Offshore Debts 250 Aggregate Leverage 27.8% Onshore Debts 367 Aggregate Leverage 28.1% Onshore Debts 370 Aggregate Leverage 29.4% Onshore Debts 270 31 December 2019 45% Limit 30 June 2020 50% Limit² After Refinancing 50% Limit² 1. Debt headroom is computed based on 31 December 2019 and 30 June 2020 total assets and assuming a corresponding increase in total assets with new debts raised. 2. 50% leverage limit is based on MAS's revised leverage limit Note: All calculations are done according to the SGD to RMB exchange rate of 5.1739 as at 31 December 2019, 5.0813 as at 30 June 2020 and 4.9975 as at 10 September 2020 after refinancing SGinvestors REIT SASSEUR 31#32Debt Maturity Profile S$ million Weighted average debt maturity is 2.74 years after completion of refinancing on 10 Sep 2020 and partial repayment of onshore loans by 30 Sep 2020 Debt Maturity 500 4 8 8 2020 2021 2022 2023 32 SGinvestors REIT SASSEUR#33Portfolio Update B OUTLETS SGinvestors REIT SASSEUR SASSEUR (HEFEI) OUTLETS#34Portfolio Summary Portfolio Valuation*: 8,212 mil NLA: 312,844 sqm Occupancy: 93.6% *Based on independent valuation as at 31 Dec 19 by JLL (RMB million). ^Occupancy for 2Q 2020 TURTH Hefei Outlet Mall Valuation 2,795 mil NLA 144,583 sqm Occupancy: 94.7% Bishan Outlet Mall Valuation 824 mil NLA: 47,308 sqm Occupancy: 84.2% Kunming Outlet Mall Valuation 1,620 mil NLA: 70,067 sqm Occupancy: 97.3% Chongqing Outlet Mall Valuation 2,973 mil NLA50,885 sqm Occupancy: 100% SGinvestors REIT SASSEUR 34 ===#352Q 2020 Outlet Sales Summary Outlets 2Q 2020 Sales (RMB'mil) 2Q 2020 vs 2Q 2020 vs 1Q 2020 2Q 2019 Significant sales improvement 56.3% as compared to 1Q 2020 1H 2020 vs 1H 2019 1Q 2020 vs 1Q 2019 (%) (%) (%) 1H 2020 Sales (RMB'mil) (%) Chongqing 396.0 +70.3 -17.5 -61.8 628.4 -42.3 Bishan 78.6 +51.5 -15.7 -58.4 130.5 -40.1 Hefei 217.7 +69.6 -20.3 -47.2 346.1 -32.9 Kunming 143.4 +17.7 -20.4 -46.8 265.2 -35.2 Portfolio 835.7 +56.3 -18.6 -55.7 1370.2 -38.6 1. 12 2Q 2019: 01 April 2019 - 30 Jun 2019 2. 1Q 2020: 01 Jan 2020 - 31 Mar 2020 3. 45 2Q 2020: 01 Apr 2020 - 30 Jun 2020 4. 1H 2019: 01 Jan 2019 - 30 Jun 2019 5. 1H 2020: 01 Jan 2020 - 30 Jun 2020 35 SGinvestors REIT SASSEUR#36Portfolio Occupancy 4 outlet malls enjoy stable occupancy 100.0% 100.0% 95.5% 94.7% 96.0% 97.3% 94.8% 93.6% 86.5% 84.2% 1920 2Q20 1020 2Q20 1020 2Q20 1Q20 2Q20 1020 2Q20 重庆 ChongQing 璧山 Bishan 合肥 Hefei 昆明 Kunming 项目组合 Portfolio 2Q 2020 vs 1Q 2020 36 SGinvestors REIT SASSEUR#37Weighted Average Lease Expiry (WALE) Deliberate short lease to optimise tenant mix Lease Expiry by NLA & Gross Revenue 70.0% 60.0% 62.4% WALE by : NLA 2.7 years Gross Revenue 0.8 years 50.0% 44.9% 40.0% 30.0% 24.9% 23.0% 20.0% 10.0% 0.0% 2020 2021 As at 30 June 2020 5.7% 5.6% 2.9% 2.7% 2022 □ by NLA by Gross Revenue 2023 23.5% 4.5% 2024 & Beyond SGinvestors REIT SASSEUR 37#38VIP Members - Growth by Outlets Members in '000 2,000 1,800 1,600 1,400 1,200 1,000 800 Total VIP members increased 14.1% from end 2019 to reach 1.8 million 2017 2018 2019 2Q 2020 1584.8 586.4 600 400 521.6 417.3 283.5 200 0 Chongqing Bishan Hefei Kunming Total 1808.8 38 REIT SGinvestors SASSEUR#39Well Diversified Trade Mix Breakdown of NLA¹ by Trade Mix Breakdown of Revenue 2 by Trade Sector Ad-hoc Outlet, Children 3.6% 4.0% Kids Amusement. Park 4.5% Shoe Wear 4.7% F&B 6.1% Anchor Tenants 8.7% Sports 9.3% Miscellaneous 9.4% Lifestyle 2.8% Kids Amusement Park 1.0% Anchor Tenants 0.4% Ad-hoc Outlet 2.2% F&B 3.2% Miscellaneous 5.2% Children 5.3%. Lifestyle 0.3% Shoe Wear 5.5% Fashion 33.4% International Brands 13.6% Sports 15.8% International Brands 21.3% Fashion 39.7% REIT SGinvestors SASSEUR Fashion, Sports and International Brands 56.3% 1. As percentage of the portfolio's net lettable areas as at 30 June 2020 2. As percentage of the portfolio's gross revenue as at 30 June 2020 76.9% 39#40Chongqing Outlets OUTLETS ART BUSINESS Sales RMB 'Mil 750 609 600 480 450 396 300 233 150 673 580 4Q 3Q Mu 2Q 1Q 2017 2018 2019 2020 મા Year Commenced Operations GFA (sqm) Sep 2008 Outlet Members ('000) 73,373 650 50,885 NLA (sqm) 500 Occupancy Rate (%, 30 Jun 20) 100 55 408 No. of Tenants (30 Jun 20) Top Brands/Tenants 514 530 486 Nike, Adidas, +39 Space, Coach 406 200 202 341 302 586 530 514 57 486 16 28 406 79 341 65 350 302 39 Car Park Lots Valuation (RMB mil, 31 Dec 19) 500 2,973 REIT SGinvestors SASSEUR 100 50 2018 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 40 Existing New#41Bishan Outlets .... OUTLET Sales RMB 'Mil 150 100 50 50 125 93 79 52 52 114 127 1Q 2Q 3Q 4Q 2017 2018 2019 2020 Year Commenced Operations Oct 2014 Outlet Members GFA (sqm) 68,791 ('000) 284 290 NLA (sqm) 47,308 256 263 21 231 7 25 230 204 Occupancy Rate (%, 30 Jun 20) 84.2 26 182 170 No. of Tenants (30 Jun 20) 178 110 1770 23 155 27 256 263 28 231 204 182 155 127 Top Brands/Tenants Adidas, Nike, Polo Sport, +39 Space 50 50 2018 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 Car Park Lots 400 Existing New Valuation (RMB mil, 31 Dec 19) 824 SGinvestors REIT SASSEUR 41#42Hefei Outlets Sales RMB 'Mil 400 273 300 243 200 100 128 218 286 338 SGinvestors REIT SASSEUR 1Q 2Q 3Q 4Q Year Commenced Operations May 2016 2017 2018 2019 2020 Outlet Members GFA (sqm) 147,316 ('000) NLA (sqm) 144,583 550 522 478 43 440 450 38 Occupancy Rate (%, 30 Jun 20) 94.7 352 88 350 291 61 No. of Tenants (30 Jun 20) 316 249 42 478 250 203 440 46 352 Top Brands/Tenants Adidas, Coach, Nike, Fila, Skechers 67 291 150 249 203 50 136 50 Car Park Lots 1,566 2018 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 42 Valuation (RMB mil, 31 Dec 19) 2,795 Existing New#43Kunming Outlets Sales RMB 'Mil 250 229 200 180 143 150 122 100 58 50 1Q 238 2Q 3Q 2017 2018 2019 2020 237 4Q 40 Outlet Members Year Commenced Operations Dec 2016 ('000) GFA (sqm) 88,257 450 NLA (sqm) 70,067 350 52 417 390 374 27 16 322 52 Occupancy Rate (%, 30 Jun 20) 97.3 242 80 80 250 177 No. of Tenants (30 Jun 20) 159 65 374 390 251 322 150 18 242 63 159 177 Nike, Adidas, +39 Top Brands/Tenants Car Park Lots Valuation (RMB mil, 31 Dec 19) Space, FILA, POLO 50 50 96 2018 1Q2019 2,000 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 Existing New 1,620 SGinvestors REIT SASSEUR 43#44Exciting Events to Drive Sales 重庆奥莱 / Chongqing Outlets 【渝新欧 VUN NOU 1000-1300 刷 1000 13 璧山奥莱 Bishan Outlets 砂之船(重庆)奥莱 OUTLET E 白感 大出版 合肥奥莱 Hefei Outlets EP 1-2. 昆明奥莱 Kunming Outlets 雨太大, 不敢让 砂粉 113 到淋 只能委屈暂时 下啦 PHILIPP REIT SGinvestors SASSEUR 44#45AEI - Chongqing Outlets OUTLT Ya Kun Kaya To STARBUCKS 00 SGinvestors REIT SASSEUR Value Creation • Part of overall strategy to periodically upgrade our outlets to achieve higher asset yield and sustainable income growth for Sasseur REIT ZASOCLA . Scope of Work Re-configuration of retail units and floor plates to achieve higher efficiency Retro-fitting and refurbishing the interior • NIKE it shejiben.com للكا * Visitors/tourists travelling to Chongqing from other provinces Deliverables • • Reposition as a lifestyle and shopping destination with a specific theme which will enlarge our shoppers' base from Chongqing and other parts of China Refresh appeal to both shoppers and tenants · Expected completion in 2Q 2021 45#46AEI Hefei Outlets - E JATA 全住态室内 美动物园 IN COMPSON SHAR B馆3-4层 SGinvestors REIT SASSEUR Scope of Work • • Space maximisation and conversion of traffic driveway to pedestrian walkway between blocks A and B Major retro-fitting and refurbishment work to block B, converting the interior to cater for International sports' brands Deliverables • Creating a seamless shoppers' flow between block A & B which will increase the shoppers' traffic Cater to the growing demand of Chinese consumers for International branded sports' apparels and accessories. Achieve higher efficiency and better income for the Outlets. FILA BOSS • • Expected completion in 1Q 2021 46#47Potential Pipelines • All acquisitions must be yield accretive • Reduce concentration risk, explore other parts of the World Pipeline Properties increased from 3 to 9 ROFR Properties Xi'an Guiyang Opening Date Sep 2017 Dec 2017 GFA (sqm) 141,708 193,520 Car Park Lots c.2,000 c.1,000 Pipeline Properties Changchun Lanzhou Xi'an Yangzhou Shanghai Nanjing Changsha Guiyang Hangzhou Xiamen Shenzhen Opening Soon Nanjing Hangzhou Changchun Changsha Lanzhou Xiamen Yangzhou Shanghai Shenzhen Opening Date May 2015 Jun 2011 Sep 2017 Dec 2018 Dec 2019 Sep 2020 Sep 2020 ~3Q2021 ~2022 GFA (sqm) 149,875 45,873 172,128 210,600 ~100,000 ~75,000 ~85,000 ~109,000 ~150,000 Car Park Lots c.8,000 C.5,000 c.4,000 c.2,084 c.2,500 c.1,500 c. 1,200 c.2,500 c.2,200 SGinvestors REIT SASSEUR 47#48Investment Merits PPP SASSEUR (KUNMING) OUTLETS SGinvestors REIT SASSEUR#49Singapore Governance and Transparency Index (SGTI) Singapore Governance and Transparency Index 2020 REIT and Business Trust Category RANK TRUST NAME 2020 BASE ADJUSTMENTS OVERALL SCORE+ FOR BONUSES/ PENALTIES SGTI OVERALL SGTI RANK 2019 2020 2019 SCORE SCORE 1 CapitaLand Commercial Trust 85.5 27 112.5 100.5 2 CapitaLand Mall Trust 86.5 24 110.5 99.5 3 Ascott Residence Trust 81.3 20 101.3 98.0 4 Far East Hospitality Trust 80.2 19 99.2 90.4 5 Netlink NBN Trust 74.9 24 98.9 73.3 34 6 CapitaLand Retail China Trust 83.2 15 98.2 96.2 7 Cromwell European Reit 84.4 11 95.4 71.3 36 12367 +9 4 8 Ascendas Reit 87.4 7 94.4 88.4 8 9 Manulife US Reit 79.8 14 93.8 74.7 33 10 OUE Commercial Reit 71.9 21 92.9 70.8 37 11 Frasers Logistics And Commercial Trust 78.5 14 92.5 86.5 11 12 Keppel Pacific Oak US Reit 73.5 18 91.5 72.3 35 13 Lippo Malls Indo Reit Trust 75.5 15 90.5 70.3 38 14 Mapletree North Asia Comm Trust 73.2 17 90.2 85.8 13 15 Keppel DC Reit 71.3 17 88.3 87.3 9 16 Soilbuild Business Space Reit 76.3 11 87,3 64.5 40 17 Frasers Hospitality Trust 77.3 9 86.3 84.5 15 17 AIMS APAC Reit 70.3 16 86.3 82.9 21 19 ESR-Reit 76.1 10 86.1 81.4 24 20 Dasin Retail Trust 71.9 14 85.9 77.0 30 20 CDL Hospitality Trusts 75.9 10 85.9 86.9 10 22 Suntec Reit 72.3 13 85.3 80.3 25 23 Mapletree Logistics Trust 74.2 11 85.2 85.9 12 24 Ascendas India Trust 75.4 9 84.4 77.2 29 25 Sasseur Reit 71.7 12 26 Prime US Reit 64.4 19 27 Keppel Reit 75.9 28 ARA LOGOS Logistics Trust 72.6 2969 83.7 45.2 45 83,4 81.9 84.8 14 81.6 79.8 26 Source: The Business Times, 5 Aug 2020 Sasseur REIT jumped 20 spots to rank 25th in this year's SGTI REITs and Business Trust category. We continue to be committed to maintaining high standards of corporate governance and reporting. 49 SGinvestors REIT SASSEUR#50Key Milestone and Awards FTSE EPRA NAREIT Global Emerging Market Index Inclusion¹ 1 Best IPO in Singapore 2018 By: The Asset Asian (Triple A) Awards 2018 2 Most Promising REIT in Asia By: Fortune Times REITs Pinnacle Awards 2018 3 Gold Award Retail REITS (Singapore) (less than USD 1 billion market cap) By: 2018 Asia Pacific Best of Breeds REITS 4 Best REIT Deal in Southeast Asia 2018 By: Alpha Southeast Asia 12th Annual Best Deal & Solution Awards 2018 5 REIT Company of The Year - Singapore 2019 By: International Investor Magazine 6 Best Retail REIT (Platinum) Best CEO (Platinum) Best Investor Relations (Gold) By: 6th Asia Pacific REITs Awards 2019 1. Since 23 December 2019. 50 SGinvestors REIT SASSEUR#51Investment Merits 1 Market Leadership: Sasseur Group is one of the largest operator of outlet malls in China, with 11 malls and over 12 years of operating experience Unique Art-Commerce Business Model: Full alignment of interests of 2 tenants, REIT unitholders, the REIT and entrusted managers, with the potential for sharing upsides 3 4 Proactive Asset Management Strategy: Focus on asset enhancement, organic growth and yield accretive acquisitions Resilient Retail Segment: High growth sector offering attractive value-for- money branded products that cater to the rising aspirations and demand of the expanding Chinese middle class 5 Strong Partnerships: Longstanding and strong business relationships with leading premium international and local retail brands REIT 51 SGinvestors SASSEUR#52SG in REASSEUR HIZ REIT SGinvestors SASSEUR 砂之船, OUTLET Thank You For enquiries, please contact: Ms Wong Siew Lu, CFA, CA (Singapore) Head, Investor Relations and Corporate Affairs Email: [email protected] Tel: +65 6360 0290 Address: 7 Temasek Boulevard, #06-05, Suntec Tower One, Singapore 038987 OUTLE GASSEUR