Regionalreit

Industry Focus
Regional REITs
DBS Group Research . Equity 14 May 2008
Shopping for REITs

OVERWEIGHT FSSTI: 3228.95
Yield spreads at a high. REITs in our Far East universe have HSI: 25610.21
put on a good showing YTD. We believe REITs would continue
KLCI: 1287.15
to be favoured owing to their defensive earnings qualities while
valuations are still attractive with yield spreads of 260-360bps SET: 848.71
over the respective risk free rates, the highest in the last 2 years.
Our 3 themes identified below, center around earnings
resilience, value proposition and inter-country relative
performance. Stock Picks
Stocks Country Market Cap Share Price Price %
Retail therapy. We remain positive on retail REITs in Hong
(US$) ($LC) Target Upside
Kong and Singapore where retail spending trend should be
sustained. The government’s push to develop Singapore as a CPN Retail Fund Thailand 363 10.50 12.00 14
major tourist and MICE destination should have positive knock- CMT Singapore 4,336 3.56 3.93 10
on impact on retail sales. Our top buys are CMT, FCT and CDL HT Singapore 1,238 2.05 2.90 42
Fortune REIT for retail exposure and CDL HT as a hospitality play FCT Singapore 603 1.33 1.66 25
Fortune REIT Hong Kong 520 4.98 6.83 37
in Singapore.
Solid fundamentals: Thai PFPOs offer an attractive proposition Source: DBS Vickers
for long-term investors looking for value. Average sector yield Prices as of 7 May 2008
of 7.7% is one of the highest in the region. After having lagged
the region in recent years, we believe it is at an inflexion point.
Positive economic fundamentals and investor friendly policy
changes stemming from removal of capital controls, should
provide a firm base for a re-rating. While we recognize illiquidity
could be a constraint, large cap PFPOs like CPNRF and SPF, with
free float of about US$215m and US$160m should enjoy
investor attention.
Relative attraction of Singapore over HK: The better

showing of HK-REITs over S-REITs YTD had narrowed the yield
gap between the two significantly. At this point, we see S-REITs
offering a more compelling story. We think there is room for
smaller REITs such as FCT and Suntec to play catch up given the
disparity between their yields vs their larger market cap peers.
www.dbsvickers.com
Refer to important disclosures at the end of this report
Industry Focus
Regional REITs
Lock Mun Yee (65) 6398-7972

Table of Contents
munyee@dbsvickers.com
Jeff Yau (852) 2820-4912 Regional Summary 3

Jeff_yau@hk.dbsvickers.com Relative Performance 4
Regional Yield 5
Chanpen Sirithanarattanakul (662) 657-7824 REIT Valuation Screen 6
Chanpens@th.dbsvickers.com In Conversation with CapitaMall Trust 8
CapitaMall Trust Corporate Profile 10
June Ng (603) 2711-0970
REITs Performance Tracker
june@hwangdbsvickers.com.my
- Singapore 12
Andy Sim (65) 6398-7969 - Hong Kong 21
andysim@dbsvickers.com - Thailand 28
- Malaysia 35
Singapore Research Team (65) 6398-7966
research@dbsvickers.com Corporate Profile
Singapore 43
Allco Commercial REIT 44
Ascendas India Trust 46
Ascendas REIT 48
Ascott Residence Trust 50
CapitaCommercial Trust 52
CDL Hospitality Trust 54
Frasers Centerpoint Trust 56
K-REIT Asia 58
Macquarie MEAG Prime REIT 60
MapleTree Logistics Trust 62
Parkway Life REIT 64
Suntec REIT 66
Hong Kong 69
Champion REIT 70
Fortune REIT 72
Prosperity REIT 74
Thailand 77
CPN Retail Growth Property Fund 78
Samui Airport Property Fund 80
Malaysia 83
Axis REIT 84
Appendix
Economic Forecasts 87
REIT News 88
Property News Snippets 89
Regional REIT Guidelines 90
MICA (P) NO.031/10/2007
Page 2
Industry Focus
Regional REIT Handbook
for the smaller cap REITs such as FCT and Suntec to play catch
REGIONAL SUMMARY up.
Strategy Relative Yield Comparison of S-REIT and HK-REIT
We have identified 3 key themes across our regional universe
5.0%
going forward
i) exposure into the resilient retail sector
4.0%
ii) Thailand as a value play
iii) attractive relative valuation of Singapore over HK 3.0%
Retail, retail 2.0%

We believe retail REITs offer a more compelling story of strong
organic growth, asset enhancement driver and potential 1.0%
expansion through acquisitions. Firstly, retail rents are still low

0.0%
in the historical context across the region and is underpinned 2007 2008
by positive demand/supply fundamentals. Notwithstanding Spore Spread HK Spread Gap
inflationary concerns, we think that the retail spending trend
Source: DBS Vickers
would remain intact. Moreover, in the Singapore context, the
government’s push to promote Singapore as a major tourist
Key issues
and MICE destination through a doubling in tourist arrivals to
Funding concerns
17m and tripling tourist expenditure to $30b by 2015, should
Financing and refinancing issues will remain key to the
have positive spillover impact on retail sales. In addition to
performance of the REIT markets over the next 12-18 months,
rental rate expansion, retail REITs are also able to enjoy value-
particularly in Singapore and Hong Kong. Within Singapore,
add benefits from asset enhancement activities to provide
we estimate some $2.4b and $3.8b worth of existing debt that
another wing to DPU growth. Moreover, current actual and
has to be refinanced for the remaining of this year and 2009,
implied REIT cap rates are still supportive of potential
representing 47% of total indebtedness of the S-REIT sector
acquisition activities. Retail REITs are also not highly leveraged.
and c18% of the sector’s enterprise value. While recent CB
Our preference for retail REITs across the region include CMT,
issues by Suntec and CCT have allayed fears to a certain extent
FCT and Fortune REIT.
on the availability of funding, the cost of funding is another
issue to grapple with. Within the S-REIT sector, MLT and Allco
Solid fundamentals
have gearing levels in excess of 45% and this is likely to drag
We think Thailand is at a point of inflexion. Fundamentals have
on share price performance due to reduced potential to
improved, judging by the resurgence in consumer confidence,
acquire for growth.
and sentiment. Investment environment is friendlier with the
recent lifting of the 30% capital control through a relaxation in
In Hong Kong, the recent proposal by Champion REIT to buy
the unremunerated reserve requirement (URR) and hedging
Langham Place for HK$12.5b, the biggest deal in HK-REIT post
requirement on short term capital inflows. Property tax cuts
listing history to date and its subsequent financing activities
stimulus such as reduction in specific business tax, transfer fees
will be closely watched as an measure of liquidity and credit
and mortgage registration fees should also boost property
risk premium indicator.
transactions. The positive effects of all these changes are long
reaching and should form a solid fundamental platform for a
Slow acquisition and M&A market
continued re-rating of Thai property including property funds
Equity markets appear to have signaled the end of the credit
for public offering (PFPOs or REITs). While we recognize that
crisis in April as stocks rallied and bond markets remained
trading illiquidity of these PFPOs is likely to be constraint, we
lacklustre. However, at the same time, physical property
believe it would appeal to long-term investors looking for value
transactions have dwindled as credit flows remain tight.
within the region. Our top pick is CPNRF, as a retail REIT and
Against the backdrop of slowing global growth, rising inflation
the largest PFPO by market cap, should benefit from the recovery
and possibility of further credit tightening policy measures,
in investor interest in Thai REITs. SPF currently offers very
capital flows would likely remain limited and this will impede
attractive yield of 9.9%, the highest amongst Thai REITs.
REIT expansion via acquisitions or M&A activity.
Relative Singapore/HK play
No visible catalyst for M-REITs
The gap between HK and Singapore yield spreads has
While M-REIT’s valuations are still attractive, we are hard put to
narrowed. While the S-REITs have done well YTD, putting on
find any major near term catalyst for outperformance of this
1.7% YTD, HK-REITs have performed even better, +6.7% YTD,
sector. Furthermore, long-awaited regulatory changes for the
particularly Link REIT, and this had narrowed the yield gap
M-REIT sector are unlikely to materialize in this quarter. Hence,
between HK and Singapore significantly. As such, we believe
DPU growth of 12% is expected to be led by organic and asset
there is scope for S-REITs to continue outperforming relative to
enhancement activities.
the HK market. Within the S-REIT sector, the strong
performance of large cap REITs have pushed share prices to or
close to their trading range highs. Hence, we see opportunity
Page 3
Industry Focus
RELATIVE PERFORMANCE
• EPRA NAREIT Index underperformed global REITs YTD by 20%
• Australian and Japan markets were the worst performers, down 16.4% and 13.2%
• Hong Kong, Thailand, Singapore and Malaysia markets outperformed the EPRA NAREIT Asia Index YTD
Global REIT Performance YTD
10%
5%
0%
-5%
-10%
-15%
-20%
Global Europe US EPRA Australia Japan HK Spore Malaysia Thailand
NAREIT
Source: Bloomberg
Regional REIT Relative Performance Regional Property Relative Performance

120
120
110
100
100
90
80 80
70
60 60
J-08 J-08 F-08 M-08 A-08 M-08
J-08 J-08 F-08 M-08 A-08 M-08
S-reit HK-reit T-reit M-reit EPRA NAREIT Singapore Hong Kong Thailand Malaysia
Source: Bloomberg, DBS Vickers
Breakdown of Global REIT Market Cap by Region

Europe Japan
19.1% 8.6% Nth Asia ex Jpn
0.4%
HK
1.6% Spore
4.3%
Msia
0.3%
Thai
Nth America 0.3%
53.1%
ANZ
12.3%
Page 4
Industry Focus
REGIONAL YIELD COMPARISONS

• HK-REIT yields average 5-5.5%, impacted by Link REIT’s share price surge. Excluding Link, average yields are closer to 7-
8%
• HK office REITs trades at largest yields of c8%, the largest 530bps yield spread. Singapore office REIT yields have dipped
to the low end at 4.5-5.5% or 308bps spread
• HK retail REITs are generating 4.7% yield impacted by Link REIT’s recent share price run up
• Thai industrial REITs are offering average 7.8% yields
Yields of Regional REITs

10%
8%
6%
4%
2%
0%
Thailand Australia Malaysia Singapore Japan US HK Europe
REIT Yield By Sector and Region

12%
10%
8%
6%
4%
2%
0%
Office Retail Industrial Hotel Residential Svc Apt Healthcare Cinema Airport Plantation
T-reit HK-reit M-reit S-reit

Source: DBS Vickers
Regional P/BV Comparison

(x)
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Reits Developers Landlords
Singapore HK Thailand Malaysia
Source: DBS Vickers
Page 5
Industry Focus
REIT VALUATION SCREEN

Ranking by FY08 and FY09 Yield Ranking by 07-09 DPU CAGR Growth
REIT FY08 (%) FY09 (%) REIT (%)
Samui 9.9 10.4 CCT 22
Cambridge* 8.9 9.2 CDL HT 21
Champion 8.6 8.0 Ascendas India* 17
Prosperity 8.4 7.6 MLT 12
CPNRF 8.0 8.2 MM Prime 11
Allco 8.0 8.1 CMT 11
MLT 7.5 8.0 ART 11
ART 6.6 7.3 A-REIT 10
MM Prime 6.2 6.4 Suntec 10
CDL HT 5.8 6.4 FCT 6
* Bloomberg consensus * Price target includes new acquisitions
Ranking by DCF-based Target Price Upside Ranking by P/BV

REIT (%) REIT (x)
ART 77 Champion 0.5
Allco 49 Fortune 0.5
Axis 47 Allco 0.6
MLT* 47 Prosperity 0.6
Ascendas India* 46 Suntec 0.7
CDL HT 41 GZI 0.8
K-REIT Asia 37 Samui 0.8
MM Prime 36 MM Prime 0.8
Champion 31 ART 0.8
Samui 31
* Price target includes new acquisitions
Ranking by ROE Ranking by FY08 Gearing (x)

REIT (%) REIT (%)
Axis 9.3 CPNRF Cash
CPNRF 8.3 Samui Cash
MLT 8.2 PREIT 7.9
A-REIT 7.9 Ascendas India 19.0
Samui 7.3 CDL HT 19.1
CDL HT 6.9 Fortune 22.6
CMT 6.5 Champion REIT 24.8
FCT 5.2 Suntec 26.9
PREIT 4.7 MM Prime 29.6
ART 4.2 ART 35.6
Source: DBS Vickers
Page 6
Industry Focus
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Page 7
Industry Focus
IN CONVERSATION
with Mr Pua Seck Guan, CEO
CapitaMall Trust
This section aims to share management’s views and thoughts with investors on a regular basis through a Q&A session. In this
inaugural edition, we feature CapitaMall Trust, the largest S-REIT by market cap and leading retail mall operator in Singapore. We
have the pleasure of speaking with Mr Pua Seck Guan, CEO of CapitaMall Trust Management Ltd, the REIT manager for CMT, who
shared his view of the retail market in Singapore and CMT’s strategy going forward.
Page 8
Industry Focus
Q. Can you comment on the retail landscape evolution in not more than 50bps between the high-end and good
Singapore pre and post establishment of REITs? suburban malls. More important is the level of sustainable
A. Managing retail properties through a REIT structure has income that the properties can generate.
benefited the entire retail industry. The establishment of REIT
has transformed the real estate industry as developers have Q. What is CMT’s strategy in terms of growth and
increased confidence in investing in large projects as REITs positioning going forward?
offer an exit strategy to developers. The retail industry has A. In terms of growth thrusts, CMT has always focused on
benefited from such large-scale projects as it has drawn more delivering not only DPU growth but also total returns to
new-to-market retailers. Post establishment, talent pool of unitholders. This is via both organic and asset enhancement
professional asset and retail managers taking a disciplined and initiatives as well as acquisition strategies. An estimated 40%
professional approach to enhance asset value, extract higher of CMT’s DPU growth since listing comes from AEI activities,
total returns to unitholders, as well as providing more vibrant where with professional management, we were able to deliver
and varieties in shopping experience for customers and higher returns via increased efficiency as well as proper
channel capital to enhance assets for higher returns. monitoring of retail sales. Our larger size also enables us to
have economies of scale.
Q. What is your view on the retail leasing landscape in
Singapore given that there are 3 mega and high-end In terms of positioning, we are keen to be market leaders in all
malls coming up along Orchard Rd? segments of the retail market. We target to achieve an S$8bn
A. Speaking from the perspective of ION Orchard, we have asset size by 2010. Pipeline is clear. In addition to ION Orchard,
been able to attract new tenants, flagship stores of other buildings such as Clarke Quay and One North are also
international standards which are comparable to key gateway potential investment candidates.
cities such as Tokyo, Hong Kong, London and New York. The
market is also deepening. The establishment of 2 IRs, Youth Q. Can you share more colour on the overseas strategy
Olympics, F1 will draw more tourist arrivals as well as growth plans for CMT?
convention crowd, benefiting from growth in China and India. A. Singapore will remain our core market and we would target
With more immigration and government policy to drive for it to account for about 70% of assets. In terms of overseas
population from 4.5m to 6m, there is a lot of scope for retail assets, we have started with a 20% stake in CRCT for China
mall operators. In terms of global benchmarks, Singapore is retail exposure. Capitaland has established presence in the
still lagging in terms of rental per capita, trailing at one third of retail sector in Malaysia as well as India. We have stated before
HK and 20% of US. This gives a lot of upside. Also, Singapore that Malaysia is where things could happen this year.
is moving towards a more service oriented economy and
income is still rising. These are all positive indicators for the Q. How do you see M&A activity panning out in the
retail sector. retail REIT segment?
A. Anecdotal evidence has shown that a REIT does not trade
Q. How do you see occupancy costs performing and well if it does not meet investor expectations. Hence, we see
where do you see room for growth? the differences within each sub-segment.
A. Currently, occupancy costs for suburban properties are
within the 13-18% range and we believe that at 20%, it is still Q. CMT has a fairly sizeable amount of refinancing due
at a healthy mark. In terms of the high-end, some are still in in 2009. When is that due and what are your plans in this
the region of 6-8% and there is certainly room for growth. respect?
A. CMT has about $655m of debt to be refinanced in 2H09.
Q. The completion of high-end malls and suburban This is made up of $335m CMBS issue and $320m term loan
complexes would introduce more polarization into the due in August. Depending on market conditions then, we
retail market. What is you view on retail cap rates going would consider both equity as well as debt options.
forward?
A. Retail cap rates in general are likely to stabilize at current
levels, 5-5.5%. We think there would be a slight difference, of
Page 9
Corporate Profile
CapitaMall Trust
Bloomberg: CT SP | Reuters: CMLT.SI
BUY S$3.56 FSSTI: : 3,228.95 CMT offers investors exposure to the relatively more resilient
retail sector with earnings upside coming from positive organic
Price Target: 12-Month S$3.93
rental growth and asset enhancement initiatives. Its
Description attractiveness is also underpinned by a strong acquisition
CapitaMall Trust (CMT) owns and invests in quality income- pipeline visibility from its sponsor, which should enable the
producing retail assets in Singapore. CMT’s portfolio group to retain its pole position as the largest listed Singapore-
consists of 13 retail malls with an appraised value of centric retail S-REIT over the medium term.
S$5.9bn as at 31 Dec 2007. CMT also holds a 20% stake in The retail rental upcycle should benefit CMT with 55% of its
CapitaRetail China Trust, another retail REIT listed on the
gross revenue due for renewal over FY08-09. AEI accounts for
SGX, which invests in retail malls in China.
about 38% of DPU growth since listing. It has earmarked
capex of S$265m in FY08-09 which should not impact its
Manager & Strategy
The Manager of (CMT) is CapitaMall Trust Management balance sheet given a low gearing of 37%. In the longer run,
Limited (CMTML), who is an indirect wholly owned ION Orchard, Clarke Quay and One North, could be injected
subsidiary of CapitaLand Limited, one of Asia’s largest listed into the REIT, to expand its asset base towards its target of
real estate companies. S$8b by 2010.
The stock is trading at FY08-09 yields of 4.3-4.8% and is 10%
Sponsor below our target price of $3.93.
Capitaland is one of Asia’s largest listed real estate
companies, providing CMT with an acquisition pipeline.
PRICE PERFORMANCE
Historical Yield Band P/BV
(x)
S$ 2.4
5.5 Ceiling 3%
2.2
5.0
2.0
4.5
1.8
4.0
Mid 4% 1.6
3.5
CMT 1.4
3.0
2.5 Floor 7% 1.2
2.0 1.0
1.5 0.8
1.0 Jan-03 A ug-03 M ar-04 Oct-04 M ay-05 Dec-05 Jul-06 Feb-07 Sep-07 A pr-08
Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 May-08 Dec-08
Historical Relative Trend Analysis Yield vs 10-yr Govt Bond (since listing)
(x)
(%)
5.0
8.0
4.0 7.0
6.0
3.0
5.0
2.0 4.0
3.0
1.0 2.0
0.0 1.0
0.0
Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08
Jan-03 Oct-03 Jul-04 Apr-05 Jan-06 Oct-06 Jul-07 A pr-08
CM T FSSTI FSTRE Real Estate
CM T M A S 10 yr Govt Bo nd
Sources: Company, Bloomberg, DBS Vickers
Page 10
www.dbsvickers.com
Corporate Profile
CapitaMall Trust
EARNINGS DATA
Gross Revenues vs NPI Margin Portfolio Details ( Top ten properties by Valuation)
S$m
Valuation Val
600 76% NLA sqf S$'m 1 S$psf
74% Bugis Junction 420,713 720 1,711
500
72% Bukit Panjang Plaza 134,862 251 1,861
70% Funan DigitaLife Mall 296,601 304.5 1,027
400 Hougang Plaza 70,095 50.5 720
68% Retail: 418,261
300 66% IMM Building Office: 489,314 600 661
64% Junction 8 246,476 521 2,114
200
62% Jurong Entertainment
60% Centre 110,764 89 804
100
58% Lot One Shopper's Mall 198,994 385.5 1,937
0 56% Plaza Singapura 497,467 922 1,853
Retail: .362,173
FY03 FY04 FY05 FY06 FY07 FY08F FY09F Raffles City Office: 380,288 2586 3,483
Gro ss Revenues NP I NP I M argin RHS
Rivervale Mall 81,564 86 1,054
Sembawang Shopping
Centre 323,487 94 291
Tampines Mall 323,487 720 2,226
DPU Performance ( since listing) Asset Class by Valuation

S ct s B ugis Junctio n
18.0 10% B ukit P anjang P laza
16.0 Tampines M all 3%
Sembawang Sho pping 10% Funan DigitaLife M all
14.0
Centre 4%
12.0 1% Ho ugang P laza
10.0 Rivervale M all 1%
1% IM M B uilding
8.0
8%
6.0 Junctio n 8
Raffles City
4.0 7%
36%
2.0 Juro ng Entertainment
0.0
Ctre
Lo t One 1%
02 03 04 05 06 07 08F 09F
P laza Singapura 5%
13%
Lease Expiry Profile Debt Maturity Profile

S$m
40.0%
900
35.0%
800
30.0% 700
25.0% 600
20.0% 500
15.0% 400
10.0% 300
5.0% 200
100
0.0%
2008 2009 2010 >2010 0
FY08 FY09 FY10 FY11 FY12
Statement of Total Return (S$ m) Rates & Ratio

FY Dec 2006A 2007A 2008F 2009F FY Dec 2006A 2007A 2008F 2009F
Gross revenue 332 408 473 515 Net Prop Inc Margins (%) 65.6 72.9 73.7 74.7
Property expenses (114) (110) (125) (130) Net Income Margins (%) 50.5 50.8 51.4 51.9
Net Property Income 218 297 348 385 Dist to revenue (%) 51.1 53.7 54.2 54.8
Other Operating expenses (23) (32) (34) (36) Managers & Trustee’s fees 6.9 7.8 7.3 7.0
Other Non Opg (Exp)/Inc 0 0 0 0 to sales (%)
Net Interest (Exp)/Inc (42) (63) (76) (88) ROAE (%) 6.4 6.2 6.5 7.2
Exceptional Gain/(Loss) 0 0 0 0 ROA (%) 4.0 3.8 4.0 4.3
Net Income 167 207 243 267 ROCE (%) 4.9 5.1 5.4 5.9
Tax 0 0 0 0 Int. Cover (x) 4.7 4.2 4.1 4.0
Minority Interest 0 0 0 0 Current Ratio (x) 0.2 0.3 0.3 0.3
Preference Dividend 0 0 0 0 Quick ratio (x) 0.2 0.3 0.3 0.3
Net Income After Tax 167 207 243 267 Aggregate Leverage (%) 35.6 34.8 36.6 37.9
Total Return 420 498 243 267 Operating CFPS (S cts) 14.2 17.7 14.7 15.8
Non-tax deductible Items 2 12 13 15 Free CFPS (S cts) (45.0) 19.6 6.3 9.7
Net Inc available for Dist. 169 219 256 282
NAV per shr (S cts) 190.5 235.5 223.0 222.2

DPU (S cts) 11.7 13.8 15.4 17.0
Distribution Yield (%) 3.3 3.9 4.3 4.8
Revenue Gth (%) 36.5 22.9 16.0 9.0
N Property Inc Gth (%) 41.3 36.6 17.1 10.5
Net Inc Gth (%) 43.1 23.8 17.2 10.1
Page 11
Industry Focus
SINGAPORE
REITS PERFORMANCE TRACKER
The S-REIT sector has grown to 20 REITs since starting in 5.5-5.7% FY08 yields while industrial REITs are averaging
2002 with a market cap of S$28b, accounting for 28% of 7%. In terms of P/BV, the sector is trading at 0.9x compared
the Far East market share and 4.3% of the global market. In to the high of 1.1x in 2007. Retail REITs are generally
terms of diversity, assets of S-REITs are spread-out over trading above book NAV, at 1.1-1.5x as investors accord a
Singapore (77%), HK/China/Japan (15%) and the remaining premium for value creation through asset enhancement
in rest of SEA, ANZ and other countries. Office, retail and activities and the more resilient rental outlook. In contrast,
industrial properties make up 84% of the asset base by office REITs are trading below book NAV as investors priced
value. in a potential peaking in office rents.
Share Price Performance Key issues

The FSTRE Index (inclusive of property companies and S- We believe S-REITs would continue to outperform over the
REITs) fell 20% to a low in Mar 08 before rebounding in Apr next 6 months. Earnings defensiveness and strong organic
and is now just 4% shy of the year’s high. Large cap growth should sit well with investors looking for earnings
developers such as Capitaland are now trading close to YTD security, low earnings volatility and attractive yields. Benign
high while City Dev and Keppel Land are still 11-15% below interest rate environment in the short term is also unlikely to
their levels at the start of this year. put pressure on yield spreads.
S-REITs have generally done better, year to Apr 08, Refinancing concerns will continue to be the focus of
rebounding close to 40% from the low in Feb-Mar 08 investors’ attention under the current tight credit market
period. Convertible bond issues by Suntec and CCT as well conditions. There is an estimated $2.4b of debt maturing for
as strong 1Q08 results allayed investors’ fears. Of note is the remainder of 2008 and $3.8b in 2009, or about 47% of
CMT, which rose 40% from the trough to a new year’s high total S-REIT indebtedness and c18% of sector’s enterprise
of $3.72. Suntec, which was earlier adversely impacted by value.
negative newsflow on its refinancing activities, saw a more
moderate 20% pick up. While acquisition growth had slowed down significantly,
recent proposed purchases by CCT of One George St, to be
In mid Apr 08, we upgraded our call on the property sector funded via debt and easing of pressure on cap rates as
to overweight as disparities between stock valuations and sellers become more realistic in the more subdued present
physical prices appear overdone. However, developers are environment, could provide another catalyst for S-REIT
likely to trade range bound in the short term in the absence performance. Average sector gearing is still at a healthy
of catalysts such as improving take up at new home 33%. On the flipside, S-REITs with refinancing concerns and
launches. high gearing such as MLT are likely to underperform its
peers until it degears its balance sheet.
Valuations
Our top S-REIT selections are those in the retail and
S-REITs are yielding an average 5.5% or 3.6% spread over hospitality sectors as both are enjoying positive rental
the 10-year rate, the highest yield gap since early 2005 growth trends such as CMT, FCT and CDL HT.
helped by continued DPU growth and a declining interest
rate environment. Office, retail and hotel REITs are offering
FSSTI vs REITs Index Property vs REITs Index

105
105
100 100
95 95
90 90
85 85
80 80
75 75
Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jan-08 Feb-08 Mar-08 Apr-08 May-08
FSSTI Index Spore Reits Spore Reits Spore Property
Page 12
Industry Focus
VALUATIONS
DPU / EPS* Book Price/
Share Target
Price Price Recmd DPU / EPS * (S cts) CAGR (%) Yield (%) / PE (x)* NAV PS BV
Singapore FYE (S$) (S$) 07 08 09 07-09 07 08 09 (S cts) (x)
REITs
Allco Dec 0.825 1.23 Buy 6.7 6.6 6.7 0 8.2 8.0 8.1 143 0.6
Ascendas Reit Mar 2.68 2.86 Buy 12.7 14.1 15.6 10 4.8 5.3 5.8 184 1.5
Ascendas India Mar 1.26 1.84 Buy 5.4 6.1 7.3 17 4.3 4.8 5.8 104 1.2
Ascott Residence Trust Dec 1.30 2.30 Buy 7.7 8.6 9.5 11 5.9 6.6 7.3 159 0.8
CapitaCommercial Trust Dec 2.35 2.93 Buy 8.7 10.7 12.9 22 3.7 4.5 5.5 273 0.9
CapitaMall Trust Dec 3.56 3.93 Buy 13.8 15.4 17.0 11 3.9 4.3 4.8 223 1.6
Cambridge Ind trust+ Dec 0.71 NR NR 6.3 6.3 6.5 2 8.9 8.9 9.2 77 0.9
CDL HT Dec 2.05 2.90 Buy 9.0 11.9 13.1 21 4.4 5.8 6.4 159 1.3
First REIT+ Dec 0.72 NR NR 7.1 7.3 7.4 2 9.9 10.1 10.3 92 0.8
Frasers Centrepoint Trust Sep 1.33 1.66 Buy 6.5 7.2 7.4 6 4.9 5.4 5.6 114 1.2
K-REIT Asia Dec 1.43 1.96 Buy 8.8 7.4 8.8 0 6.2 5.2 6.1 220 0.7
Lippo Mapletree Reit+ Dec 0.55 NR NR 6.0 6.5 6.2 2 11.0 11.9 11.4 95 0.6
Macquarie MEAG Prime REIT Dec 1.20 1.63 Buy 6.2 7.4 7.7 11 5.2 6.2 6.4 159 0.8
Mapletree Logistics Trust Dec 1.03 1.51 Buy 6.6 7.7 8.2 12 6.4 7.5 8.0 94 1.1
MacarthurCook REIT Mar 0.955 NR NR 7.7 NA 9.2 NA 8.0 NA 9.6 130 0.7
Parkway Life Dec 1.26 1.50 Buy 6.3** 6.6 6.8 4 1.8 5.2 5.4 136 0.9
Suntec Sep 1.61 1.98 Buy 8.1 9.0 9.8 10 5.1 5.6 6.1 247 0.7
Developers
Allgreen Props Dec 1.23 1.66 Buy 9.2 9.8 14.1 24 13.4 12.5 8.7 147 0.8
Capitaland Dec 6.70 7.20 Buy 60.9 49.4 74.6 11 11.0 13.6 9.0 393 1.7
City Devts Dec 11.96 12.81 Buy 77.7 102.9 180.8 53 15.4 11.6 6.6 646 1.9
Ho Bee Invts Dec 1.05 1.24 Buy 36.9 17.6 31.1 -8 2.8 6.0 3.4 125 0.8
Keppel Land Dec 6.00 6.64 Buy 34.1 49.7 58.5 31 17.6 12.1 10.3 364 1.6
SC Global Dec 1.47 1.58 Hold 7.2 21.3 43.2 145 20.5 6.9 3.4 106 1.4
UOL Dec 3.87 5.26 Buy 21.2 28.8 37.1 33 18.3 13.5 10.4 505 0.8
Wheelock Props Dec 2.16 1.85 Fully Valued 20.7 27.5 37.8 35 10.4 7.8 5.7 201 1.1
Wing Tai Jun 2.06 2.17 Hold 51.3 16.4 23.0 -33 4.0 12.5 9.0 202 1.0
Landlords
Singapore Land Dec 7.08 9.82 Buy 33.3 34.3 40.5 10 21.2 20.6 17.5 1007 0.7
UIC Dec 2.72 2.91 Hold 9.0 12.5 17.4 39 30.3 21.7 15.6 251 1.1
Others
Amara Hldgs Dec 0.555 0.82 Buy 0.9 2.6 3.7 103 61.3 21.6 14.9 32.0 1.7
Banyan Tree Hldgs Dec 1.42 2.03 Buy 4.9 5.9 7.6 25 29.0 24.2 18.7 79.6 1.8
Hotel Grand Central Dec 0.99 1.34 Buy 7.3 7.6 8.0 5 13.6 13.0 12.4 124.7 0.8
Hotel Properties Dec 2.91 3.98 Buy 10.0 18.1 24.4 56 29.1 16.1 11.9 249.4 1.2
ARA Asset Mgmt Dec 0.75 1.13 Buy 5.8 6.4 8.1 18 12.8 11.8 9.3 19.3 3.9
* For developers & landlords

+ DPUs based on consensus
** Annualised
NR: Not Rated
Prices as of 7 May 2008
Sources: Company, Bloomberg & DBS Vickers
Page 13
Industry Focus
VALUATIONS
No of Avg
Gearing (%) ROE (%) ROA (%) NPI / Gross Margins * (%) Price Performance (%) Units / Free float Liquidity
Shares
Singapore 08 08 08 07 08 09 3M 6M 12M *(m) (%) (‘000)
REITs
Allco 47 3.0 1.6 81.6 82.0 81.8 11 (19) (34) 710 76.3 2,426
Ascendas Reit 38 7.9 4.7 74.3 75.6 75.6 22 7 0 1,326 67.1 5,129
Ascendas India 19 0.4 0.3 58.7 58.9 59.5 10 (26) 7 753 48.8 1,821
Ascott Residence Trust 36 4.2 2.4 45.0 44.2 44.6 2 (12) (34) 608 53.9 957
CapitaCommercial Trust 38 3.5 2.4 72.5 79.7 81.1 19 (6) (21) 1,386 59.6 4,476
CapitaMall Trust 37 6.5 4.0 72.9 73.7 74.7 20 2 (14) 1,664 65.8 5,346
Cambridge Ind Trust # 37 8.3 5.2 86.4 NA NA 12 (1) (18) 795 84.2 1,939
CDL HT 19 6.9 5.4 94.7 92.7 91.4 (5) (12) 6 825 45.5 1,588
First REIT# 16 7.7 5.7 99.1 NA NA 1 (8) (9) 273 79.7 338
Frasers Centrepoint Trust 41 5.2 3.2 66.7 68.0 68.5 12 (10) (24) 619 42.9 443
K-Reit Asia 28 1.1 0.6 70.5 67.9 68.5 (13) (50) (55) 647 28.8 472
Lippo Mapletree Reit # 10 9.2 7.1 94.2 NA NA (12) NA NA 1,062 43.3 3,283
Macquarie MEAG Prime REIT 30 4.2 2.8 74.6 78.5 78.8 13 6 (4) 954 67.6 1,755
Mapletree Logistics Trust 61 8.2 3.3 88.1 90.0 90.0 16 (11) (26) 1,108 70.0 2,817
MacarthurCook Reit # 28 13.6 9.8 74.9 NA NA 4 (18) (18) 261 73.1 670
Parkway Life 8 4.7 4.4 93.6 94.3 94.6 11 2 (2) 602 53.5 902
Suntec 27 3.3 2.5 73.9 74.5 75.4 8 (9) (19) 1,493 83.5 8,709
Developers
Allgreen Props 23 6.8 4.2 44.2 50.0 50.0 8 (22) (29) 1,590 47.1 4,093
Capitaland 52 14.7 5.8 35.0 35.0 35.0 18 (12) (19) 2,821 60.0 14,085
City Devts 40 16.9 7.5 52.4 63.3 67.6 4 (19) (28) 909 68.2 3,158
Ho Bee Invts 77 15.0 6.2 45.8 45.8 45.8 (8) (43) (55) 737 37.6 1,866
Keppel Land 40 14.6 5.7 30.1 41.4 47.8 3 (27) (34) 721 42.3 3,248
SC Global 193 21.8 4.5 35.0 50.0 50.0 (13) (42) (42) 396 43.5 744
UOL cash 5.7 3.6 52.8 53.8 50.9 6 (23) (21) 796 77.1 1,954
Wheelock Props cash 14.4 10.8 33.2 40.0 40.0 11 (4) (32) 1,197 24.6 615
Wing Tai 39 8.3 4.1 35.1 26.4 42.9 (3) (30) (36) 793 60.7 3,187
Landlords
Singapore Land 14 3.4 2.4 60.2 58.2 48.2 11 (23) (33) 412 21.6 454
UIC 23 5.1 2.4 45.2 52.5 50.5 0 (10) (10) 1,377 28.6 736
Others
Amara Hldgs 104 8.3 3.1 55.5 62.2 65.1 5 (28) (26) 577 34.9 306
Banyan Tree Hldgs 35 7.2 2.9 80.1 80.0 80.0 6 (32) (44) 761 53.5 1,027
Hotel Grand Central cash 6.2 4.9 26.0 26.0 26.0 11 (6) (1) 466 41.1 63
Hotel Properties 48 7.3 3.3 31.5 35.0 36.0 (13) (32) (47) 504 39.3 279
ARA Asset Mgmt cash 34.8 24.9 64.2 57.7 57.2 10 (42) (35) 582 37.9 4,047
*For developers / landlords & others

**Includes ST investments
# Book NAV PS, Gearing, ROE and ROA based on latest reported by company
ARA Asset Mgmt refers to Operating Margins
Page 14
Industry Focus
SINGAPORE
Distribution By Asset Type Distribution by Geography
Hotel
Industrial SEA
10%
27% 4%
Others ANZ
6% 2%
Singapore
77%
HK/China/Japan
15%
Office
Retail Others
28%
29% 2%
S-REIT Yield Spread S-REIT Yield Trend by sector

10% 9%
8%
8%
7%
6%
6%
4%
5%
2%
4%
0% 3%
2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 2008
S-reit Yield Spread
Office Retail
S-REIT Yield Trend by sector S-REIT P/BV vs Developers and Landlords

(x)
9% 2.0
8%
1.6
7%
1.2
6%
0.8
5%
4% 0.4
3% 0.0
S-02 M-03 S-03 M-04 S-04 M-05 S-05 M-06 S-06 M-07 S-07 M-08 S-02 M-03 S-03 M-04 S-04 M-05 S-05 M-06 S-06 M-07 S-07 M-08
Retail Hospitality Reits Developers Landlords
Implied Cap Rates

Sector Cap rates % Chg S-REITs Implied
(%) yoy Cap Rates (%)
Prime Office 4.25-5.25 Unch 4.6
Retail 5.0-5.5 Unch 4.4-5.0
Industrial 6.5-7.5 Up 4.8-6.6
Hotel 5-6 Down 5.9
Healthcare 4.73 Unch 5.5
Page 15
Industry Focus
Industrial S-REIT Yield Industrial S-REIT P/BV

MLT MLT
MIREIT MIREIT
CREIT CREIT
A IT AIT
A REIT AREIT
0.0 2.0 4.0 6.0 8.0 10.0 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6
Yeild P/Bv
Office S-REIT Yield Office S-REIT P/BV
SUN SUN
KREIT KREIT
CCT CCT
ALLC
ALLC
MMP
MMP
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 0.0 0.2 0.4 0.6 0.8 1.0
Yield
P/Bv
Retail S-REIT Yield Retail S-REIT P/BV

SUN SUN
FRT FRT
MMP MMP
CT CT
FCT FCT
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8
Yield P/Bv
Hospitality S-REIT Yield and P/BV Hospitality S-REIT Yield and P/BV
ART ART
CDREIT CDREIT
5.4% 5.6% 5.8% 6.0% 6.2% 6.4% 6.6% 6.8% 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4
Yield P/ Bv
Shareholding Structure of REIT Management Company

No of Shareholders in Mgmt Co Mgmt Moves*
Company =>3 2 1
CCT X
K-REIT X
Allco X
Suntec X
CMT X
FCT X
MM Prime x
Suntec X
Lippo-Mapletree X
A-REIT X Resignation of non-exec James Hodgkinson and
independent director Peter Dodd following MGM’s sale
of AREIT and Reit manager stake (31 Mar)
Ascendas India X
Cambridge X
MLT X
MI Reit X
ART X
CDL HT X
Parkway Life X
Saizen X
*Please refer to appendix for details
Page 16
Industry Focus
Funding Monitor
Ave
1Q08
RE Total Gross Gearing Targeted Corporate Cost
Int Debt Maturity Profile (S$b)
Assets Debt Gearing+ limit gearing Rating of
Cover
debt
(S$b) (S$b) (%) (X) 2008 2009 2010 2011 =>2012
Office
Allco 1.88 0.88 47.0% 60% 45% Ba2 4.0 4.1 0.07 0.55 0.00 0.00 0.27
CCT 5.19 1.46 28.2% 60% 45% A3 3.9 3.3 0.11 0.58 0.15 0.62 0.00
K-REIT* 1.98 0.58 29.3% 60% 45% Baa3 3.9 2.3 0.39 0.19 0.00 0.00 0.00
Sub total 9.05 2.92 32.3% 0.57 1.32 0.15 0.62 0.27
Retail/Mixed
CMT 5.88 2.04 34.8% 60% 45% A2 3.5 5.3 0.19 0.66 0.13 0.35 0.78
FCT 1.04 0.31 29.5% 60% 45% A3 3.8 4.0 0.05 0.00 0.00 0.26 0.00
Lippo
Mapletree 1.15 0.12 10.2% 35% 35% nil na na 0.00 0.00 0.00 0.00 0.12
MM Prime 2.22 0.66 29.9% 60% 45% Baa1 2.7 4.9 0.22 0.02 0.38 0.00 0.05
Suntec 5.72 1.88 32.9% 60% 45% Baa1 3.1 1.9 0.50 0.70 0.00 0.25 0.45
Sub-total 16.01 5.01 31.3% 0.96 1.38 0.51 0.86 1.40
Industrial
A-REIT 4.17 1.56 37.4% 60% 45% A3 3.4 5.3 0.00 0.04 0.30 0.28 0.95
Ascendas
India 1.00 0.04 4.0% 60% 45% - 3.1 na 0.00 0.04 0.00 0.00 0.00
Cambridge 0.96 0.36 37.4% 60% 45% BBB- 3.5 4.3 0.00 0.00 0.00 0.00 0.36
MLT 2.42 1.40 57.9% 60% 45% Baa2 3.3 3.2 0.33 0.20 0.11 0.11 0.65
MI Reit 0.46 0.13 27.6% 60% 45% Baa3 2.4 7.0 0.00 0.13 0.00 0.00 0.00
Sub-total 9.01 3.49 38.7% 0.33 0.41 0.41 0.39 1.96
Hospitality
ART 1.56 0.54 34.6% 60% 45% Baa2 3.0 3.6 0.18 0.02 0.00 0.35 0.00
CDL HT 1.63 0.31 18.8% 60% 45% BBB- 2.4 10.6 0.03 0.28 0.00 0.00 0.00
Sub-total 3.19 0.84 26.3% 0.21 0.30 0.00 0.35 0.00
Healthcare
Parkway Life 0.33 0.05 15.6% 60% 45% BBB+ 3.9 13.0 0.00 0.05 0.00 0.00 0.00
First 0.83 0.03 4.0% 35% 35% BBB+ 3.0 13.0 0.00 0.03 0.00 0.00 0.00
Saizen 0.69 nil 0.0% 35% 35% - 3.2 - 0.01 0.32 0.00 0.00 0.00
Sub total 1.85 0.08 4.3% 0.01 0.41 0.00 0.00 0.00
Total 39.11 12.34 31.6% 2.08 3.81 1.07 2.22 3.62
* K-REIT’s estimated debt position post rights issue

+ Actual as last reported by company
Page 17
Industry Focus
Acquisition Monitor
(S$m) 2002 2003 2004 2005 2006 2007 2008f 2009f
Office
Allco - - - - 880 750 - -
CCT - - 1918 147 1317 -21 1347* -
K-REIT - - - - 631 939 - -
Retail/Mixed
CMT 916 300 753 1648 878 710 - -
FCT - - - - 915 48 150** 103**
Lippo Mapletree - - - - - 1004 146 -
MM Prime - - - 1304 - 253 - -
Suntec - - 2150 355 - 24 1002 -
Industrial
A-REIT 585 340 856 615 301 303 400*** 400***
Ascendas India - - - - - 889 218+ 112+
Cambridge - - - - 533 361 50++ -
MLT - - - 898 695 842 228+++ 700+++
MI REIT - - - - - 488 18 -
Hospitality
ART - - - 911 268 187 36 -
CDL HT - - - 846 340 - - -
Healthcare and others

Parkway Life - - - - - 234 35 -
First - - - - - 831 - -
Saizen - - - - - - - -
Total 1501 640 5677 6724 6758 7842 3630 1315
*CCT’s acquisitions include Wilkie Edge pre-completed development (S$182m) and $1165m One George St
** Assumes Northpoint 2 and Yew Tee Mall to be acquired in 2008 and 2009 by FCT
***Assumes $400m of new acquisitions pa for A-REIT
+ New buys factored into forecast for Ascendas India
++ Announced $50m of new and completed buys to date by Cambridge
+++ Announced $228m of new and completed buys to date and assumes $700m of new buys in FY09 by MLT
Page 18
Industry Focus
Post Listing Equity Fund Raising History

Stock Date Gross Amt Raised ($m) Method
Office
Allco Jun 07 210.0 2-for-5 rights issue @ $1.04
CCT Aug 06 797.5 479m new units @ $1.665
Apr 08 280.0 Issue $280m CBs with conversion price of $2.6762
K-REIT Apr 08 551.7 8-for-5 rights issue @ $1.39
Retail/Mixed
CMT Jun 03 128.1 119.8m new units @ $1.07
Dec 03 59.9 45m new units @ $1.33
Jul 04 238.4 147m new units @ $1.62
Oct 05 407.5 173.4m new units @ $2.35
Aug 06 401.0 174.35m new units @ $2.30
Oct 07 352.1 97m new units @ $3.63
Suntec Oct 06 180.0 Placement of 120m new units @ $1.50
Feb 08 250.0 Issue $250m CBs with conversion price of $1.968
Apr 08 20.0 Exercised option for $20m CBs with conversion price of $1.968
Industrial
A-REIT Feb 04 186.2 160.5m new units @ $1.16
Jun 04 115.0 82.14m new units @ $1.40
Nov 04 400.0 258.07m new units @ $1.55
Feb 05 205.0 109.9m new units @ $1.865
Oct 05 240.0 112.68m new units @ $2.13
Feb 07 100.0 40.323m new units @ $2.48
Cambridge Oct 07 166.2 276.97m new units @ $0.60
MLT Nov 05 49.3 48.33m new units @ $1.02
Jan 06 130.0 135.94m new units @ average $0.956
Jan 07 349.0 296.82m new units @ average $1.176
Hospitality
ART Sep 06 48.4 44m new units @ $1.10
May 07 199.0 105.33m new units @ average $0.956
CDL HT Jul 07 303.1 120.16m new units @ average $2.52
Page 19
Industry Focus
SINGAPORE PROPERTY MARKET OVERVIEW
Office Rental rates vs Capital Values Demand, Supply & Occupancy

7 20%
250 6 18%
5 16%
200 14%
4
12%
150 3
10%
2
8%
100 1
6%
0 4%
50
-1 2%
0 -2 0%
90 92 94 96 98 00 02 04 06 1Q08 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08f 09f
Price Index Rental Index Annual Supply (msf ) Annual Demand (msf ) Vacancy rate (RHS)
Residential Rental rates vs Capital Values Demand, Supply & Occupancy

200
60000 10%
150 50000
8%
40000
100
30000 6%
20000
50
4%
10000
0 0 2%
90 92 94 96 98 00 02 04 06 1Q08 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08f 09f
Price Index Rental Index Annual Supply (msf) Annual Demand (msf) Vacancy rate (RHS)
Retail Rental rates vs Capital Values Demand, Supply & Occupancy

250 4.0 10%
9%
200 3.0
8%
2.0
150
7%
1.0
100
6%
0.0
50 5%
-1.0 4%
0 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08f 09f
88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08f
Annual Supply (msf ) Annual Demand (msf ) Vacancy rate (RHS)
Price Index Rental Index
Industrial Rental vs Capital Values Demand, Supply & Occupancy

120 16 14%
14 13%
110
12%
12
11%
100
10 10%
90 8 9%
6 8%
80
7%
4
6%
70
2 5%
60 0 4%
98 99 00 01 02 03 04 05 06 07 08f 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Price Index Rental Index Annual Supply (msf ) Annual Demand (msf ) Vacancy rate (RHS)
5 Star Hotel Capital Values (US$/room) Demand, Supply & Occupancy

440000 7000 35%
6000
400000 30%
5000
4000 25%
360000 3000
20%
2000
320000 1000
15%
0
280000 -1000 10%
-2000
5%
240000 -3000
-4000 0%
200000 96 97 98 99 00 01 02 03 04 05 06 07 08f 09f
1999 2000 2001 2002 2003 2004 2005 2006 2007 Annual Supply (rooms) Annual Demand (rooms) V acancy rate (RHS)
Page 20
Industry Focus
HONG KONG
REITS PERFORMANCE TRACKER Valuations
The HK–REIT market is valued at close to HK$68b in terms The HK-REIT sector average yield is estimated at 5.0%
of market cap, giving it a 1.6% of the global and 10.5% of presently while the band ranges from 7-8% for office REITs
the Far East REIT market share. In terms of asset size, about and below 4.5-5% for retail REITs. Yield spreads are at
HK$107.3b worth of assets are held under REIT structures, historical highs of 2.7% owing to lower interest rates. The
of which 91% are made up of office (38%), retail (38%) high office REIT yields are driven by financial engineering
and hotel (15%) properties. No new REITs were listed in the activities. Retail REIT yields average 4.7%, largely impacted
first 4 months of the year. by Link REIT, which had enjoyed a good run up in stock
prices. The sole hotel REIT, Regal is trading at about 10%.
Share price performance
Since the start of the year, Hong Kong REITs have staged a Key issues
better showing than property stocks. The Link REIT showed Looking ahead, there appears not to be any major near term
a gain of 12% in share price YTD amidst a shaky market, catalyst for the HK-REIT sector but we expect this sector to
thanks to its resilient income stream as well as benefiting remain in favour as it is defensive in a volatile market.
from successive interest rate cuts. Prosperity REIT and RREEF
China Commercial Trust also held up firmly. However, the The fund raising exercise by Champion REIT for its
proposed acquisition of Langham Place Mall and Office HK$12.5bn purchase of Langham Place, the largest
Towers, which was approved by unitholders, failed to boost transaction by a REIT post listing, is likely to be closely
the share price of Champion REIT. watched by the market as an indication of the market’s risk
appetite.
On the other hand, Hong Kong property stocks have been
under pressure until the recent strong rally, partly because HK-REITs were a beneficiary of the declining interest rate
of increased uncertainties for the residential market, led by a trend over the past 9 months, particularly Link REIT, which
slowdown in global economic growth. Hang Seng Property has a sizeable proportion of its debt at floating rates.
Index had once dipped 35% to its low of 24,831 in mid- However, with interest rates at already low levels, additional
March, but regained its lost ground and ended 32,341, a benefits from further rate downside are likely to be more
15% drop y-t-d, against 9.9% decline in the broader muted going forward.
market. Property stocks have seen their prices approaching
or even surpassing our price targets.
HSI vs REITs Index Property Index vs REITs Index

120 120
110 110
100 100
90 90
80 80
70 70
60 60
HSI Index Reits Reits Property
Page 21
Industry Focus
VALUATIONS
DPU /
EPS* Book Price/
Share Target
Price Price Recmd DPU / EPS * (HK$) CAGR (%) Yield (%) / PE (x)* NAV PS BV
Hong Kong FYE (HK$) (HK$) 07 08 09 07-09 07 08 09 (HK$) (x)
REITs
Champion REIT Dec 3.97 5.19 Buy 0.34 0.34 0.32 -3 8.6 8.6 8.0 7.3 0.5
Fortune REIT Dec 4.98 6.83 BUY 0.35 0.36 0.36 1 7.1 7.2 7.3 9.4 0.5
Prosperity REIT Dec 1.59 1.80 Buy 0.13 0.13 0.12 -3 8.2 8.4 7.6 2.5 0.6
GZI REIT+ Dec 2.94 n.a. NR 0.23 0.21 0.21 -4 7.7 7.0 7.1 3.5 0.8
Link REIT+ Mar 18.98 n.a. NR 0.67 0.74 0.83 11 3.6 3.9 4.4 13.6 1.4
Regal REIT+ Dec 1.94 n.a. NR 0.15 0.20 0.20 14 7.5 10.3 10.3 3.5 0.6
RREEF China REIT+ Dec 3.65 n.a. NR 0.18 0.40 0.32 34 9.2 10.8 8.8 5.7 0.6
Sunlight REIT+ Jun 2.21 n.a. NR 0.14 0.24 0.25 36 11.6 10.7 11.3 3.2 0.7
Property Developers
Cheung Kong** Dec 123.20 131.2 Buy 11.95 4.97 7.67 -20 10.3 24.8 16.1 98.1 1.3
Hang Lung Properties Jun 31.00 32 Buy 0.51 1.21 1.57 75 60.5 25.6 19.7 14.4 2.1
Henderson Land Jun 60.35 66.5 Buy 3.10 3.27 2.77 -5 19.4 18.4 21.8 53.5 1.1
Kerry Properties Dec 56.15 55.4 Buy 1.95 2.35 2.38 11 28.8 23.9 23.5 30.9 1.8
New World Dev** Jun 21.05 22.4 Buy 1.17 1.98 1.34 7 17.9 10.6 15.7 18.0 1.2
SHK Properties Jun 138.00 165.2 Buy 4.61 4.70 5.57 10 29.9 29.3 24.8 80.5 1.7
Sino Land Jun 21.20 21.5 Buy 0.87 0.67 1.24 20 24.4 31.8 17.1 11.5 1.8
Tai Cheung ** Mar 4.63 6.18 Buy 0.44 0.46 0.97 48 10.5 10.1 4.8 5.6 0.8
Property Investors
Great Eagle Dec 24.70 32 Buy 1.49 1.67 2.13 20 16.6 14.8 11.6 41.5 0.6
Hongkong Land (US$) Dec 4.82 5.21 Buy 0.15 0.20 0.29 39 32.1 24.5 16.5 5.2 0.9
Hysan Development Dec 23.35 24.05 Buy 1.10 0.95 1.03 -3 21.2 24.6 22.7 30.5 0.8
Wharf Holdings Dec 41.95 43.5 Buy 2.43 1.92 1.99 -9 17.3 21.8 21.0 35.3 1.2
Swire Pacific Dec 96.10 98.3 Hold 6.76 6.16 6.39 -3 14.2 15.6 15.0 89.4 1.1
* For property developers & investors

** EPS for CK,NWD,TC include revaluation surplus on investment properties
+ DPUs based on consensus
NR : Not Rated
Source: Company, DBS Vickers
Page 22
Industry Focus
VALUATIONS
No of Avg
Gearing (%) ROE (%) ROA (%) NPI / Gross Margins * (%) Price Performance (%) Units / Free Float Liquidity
Shares*
Hong Kong 08 08 08 07 08 09 3M 6M 12M (m) (%) (‘000)
REITs
Champion REIT 25 2.7 1.3 81.1 83.9 84.2 (7) (8) (12) 2,814 51.3 2,971
Fortune REIT 23 3.5 2.6 73.2 73.8 72.1 (5) (15) (14) 814 32.6 605
Prosperity REIT 34 2.7 1.6 78.8 79.4 79.7 (2) (1) (5) 1,276 78.4 3,242
GZI REIT NA NA NA 67.5 NA NA (1) (5) (4) 1,000 60.8 1,472
Link REIT NA NA NA 59.7 NA NA (1) 10 7 2,159 100.0 11,273
Regal REIT NA NA NA 98.9 NA NA (7) (20) (27) 3,116 27.4 2,946
RREEF China REIT NA NA NA 90.8 NA NA 5 (6) NA 484 74.9 1,114
Sunlight REIT NA NA NA 74.1 NA NA (7) (8) 1 1,503 69.9 3,162
Property Developers
Cheung Kong 15 5.0 4.1 78.0 43.4 48.0 3 (15) 13 2,316 59.9 8,854
Hang Lung Properties Cash 8.6 6.8 56.3 62.6 66.0 10 (12) 25 4,145 48.0 10,417
Henderson Land 12 6.5 4.8 38.2 33.9 38.4 (1) (16) 9 2,147 46.6 7,033
Kerry Properties 24 7.3 4.4 26.6 30.5 23.8 8 (21) 32 1,425 46.8 3,263
New World Dev 26 11.6 5.0 8.3 21.4 23.4 2 (25) 5 3,736 63.0 14,697
SHK Properties 15 6.0 4.4 40.9 43.9 47.4 (1) (7) 43 2,564 57.5 12,111
Sino Land 30 6.3 4.0 49.2 42.2 37.0 1 (18) 18 4,857 47.0 14,367
Tai Cheung cash 8.0 7.3 46.0 52.9 61.8 (18) (33) (19) 618 53.0 575
Property investors
Great Eagle 21 4.0 2.6 39.5 38.1 53.0 (1) (25) (17) 605 48.4 1,488
Hongkong Land (US$) 21 3.7 2.4 47.2 48.8 50.6 13 (2) 3 2,295 52.1 5,291
Hysan Development 8 3.0 2.3 81.8 80.9 80.9 9 5 10 1,038 58.9 3,307
Wharf Holdings 27 5.6 3.4 65.4 55.3 54.6 3 (3) 35 2,754 50.0 7,335
Swire Pacific 17 6.6 4.7 36.6 31.1 31.7 (2) (9) 7 916 85.3 4,728
* For property developers & investors
Page 23
Industry Focus
HONG KONG
Distribution By Asset Type Distribution by Geography
Hotel
15%
Industrial
Retail 2%
HK
38%
92%
China
Others
8%
7%
Office
38%
HK-REIT Yield Spread HK-REIT Yield Trend by sector

6%
9%
5% 8%
4% 7%
6%
3%
5%
2% 4%
1% 3%
2%
0%
2006 2007
1%
0%
HK-reit Yield Spread 2005 2006 2007 2008
Office Retail Hotel
HK-REIT P/BV vs Developers and Landlords

2.0 Sector Cap % Chg Implied
1.8 rates yoy Cap Rates
(%) (%)
1.6
Prime Office 4.5-5.5 Unch 5.2-5.3
1.4
Retail (high street c4% Down 4.5
1.2 shops)
1.0 Industrial 6.5-7 Down na
0.8 Hotel 5.0-6.0 Down 6.5
0.6
0.4
2006 2007 2008
HK-reit Developer Landlord
Page 24
Industry Focus
Office HK-REIT Yield Office HK-REIT P/BV

(x)
RREEF CCT RREEF CCT
Sunlight Sunlight
Prosperit y
Prospi erty
Champion
Champion
0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%
P/BV
Yield
Retail/Mixed HK-REIT Yield Retail/Mixed HK-REIT P/BV

(x)
Sunlight Sunlight
Link Link
GZI
GZI
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%
Yield 0.0 0.5 1.0 1.5
P/BV
Hospitality HK-REIT Yield and P/BV Valuations
P/BV (x)
Yield (% )
0.0 2.0 4.0 6.0 8.0 10.0 12.0
Regal
Ownership Structure of REIT Management Company

No of Shareholders in Mgmt Co* Mgmt Moves*
Sector =>3 2 1
Champion X Na
Prosperity X Na
Sunlight X Na
RREF CCT X Na
GZI X Na
Link X Na
Regal X Na
* Please refer to appendix for details
Page 25
Industry Focus
Funding Monitor
Companies RE Total Gross Gearing Targeted Corporate Ave FY07 Debt Maturity Profile (HK$b)
Assets Debt Gearing limit gearing Rating Cost Int
+ of Cover
debt
(HK$b) (HK$b) (%) (%) (%) (%) (X) 2008 2009 2010 2011 =>2012
Office
Champion 28.3 7.8 27.5 45.0 na na 0.5 36.2 7.8
Prosperity 5.2 1.8 34.1 45.0 na na 0.8 11.6 1.8
RREEF CCT 3.8 1.4 35.6 45.0 na na 6.2 2.6 1.4
Retail/Mixed
Fortune 9.72 2.4 24.1 60.0 45.0 A+ 4.6 4.2 2.4
GZI 4.7 1.3 27.3 45.0 na na 4.1 6.0 1.3
Link 42.4 12.2 28.8 45.0 na A3 3.9 4.6 2.2 5.4 - 4.6 -
Sunlight 9.9 4.0 39.6 45.0 na na 2.5 2.6 4.0
Hospitality
Regal 16.1 4.3 27.0 45.0 na na 2.8 4.2 4.3
Total 120.1 35.2 29.2 3.5 5.4 4.2 16.3 5.7
Acquisition Monitor
(HK$m) 2002 2003 2004 2005 2006 2007 2008f 2009f
Office
Champion - - - - 22670 1107 * -
Prosperity - - 4538 - 28 - -
RREEF CCT - - - - - 3978 - -
Retail/Mixed
GZI - - - 4005 - - **
Link - - - 33802 - - - -
Sunlight - - - - 9090 - - -
- - -
Hospitality - - -
Regal - - - - - 14900 - -
Total - - - 42345 31760 20013
* On 14 Feb 2008, Champion announced the acquisition of Langham Place for a consideration of HK12.5b, at a discount to appraised value of
HK$14.5b, to be paid via consideration units, placement units, CBs and bank loans.
** In Jan 08, GZI announced the acquisition of 72.3% of Yue Xiu Neo Metropolis Plaza for HK$677.3m of which HK$203m to be paid via issue of
new units @ HK$3.0 apiece and the remaining from proceeds from its proposed CB issue.

Stock Date Gross Amt Raised (HK$m) Method
Retail/Mixed
Fortune Jun-05 1986.1 318.8m new units @HK$6.23
GZI (pending) July 08 203.2 65.97m new units @ HK$3.08
Page 26
Industry Focus
HONG KONG PROPERTY MARKET OVERVIEW

Ja n -0 1 = 1 00 m sf %
250 9 1 8
8 1 6
200 7 1 4
6 1 2
150 5 1 0
4 8
100 3 6
2 4
50
1 2
0 0
0
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006F
2007F
2008F
2009F
Jan-00
Jan-01
Jan-02
Jan-03
Jan-04
Jan-05
Jan-06
Jan-07
Jan-08
C o m p le tio n ( m sf) T a k e - u p ( m sf )
O ffic e C a p ita l In d e x O ffic e R e n ta l In d e x V aca n cy (% )
Residential Capital Value Index Demand, Supply & Occupancy

115 4 0 ,0 0 0
105 3 5 ,0 0 0
95 3 0 ,0 0 0
85 2 5 ,0 0 0
75 2 0 ,0 0 0
65
1 5 ,0 0 0
55
1 0 ,0 0 0
45
35 5 ,0 0 0
25 0
1996
1998
2000
2002
2004
2006
2008E
Jan 94
Jan 95
Jan 96
Jan 97
Jan 98
Jan 99
Jan 00
Jan 01
Jan 02
Jan 03
Jan 04
Jan 05
Jan 06
Jan 07
Jan 08
C o m p le tio n ( m sf) N o o f p rim a ry u n its so ld ( u n it)
Retail Rental Rate Index Demand, Supply & Occupancy

200 m sf %
3 .5 12
180
3 .0
160 2 .5 9
140 2 .0
1 .5 5
120 1 .0
100 0 .5 2
0 .0
80 (0 .5 ) (2)
60 (1 .0 )
(1 .5 ) (6)
Jan-02
Jul-02
Jan-03
Jul-03
Jan-04
Jul-04
Jan-05
Jul-05
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006F
2007F
2008F
2009F
H ig h S tre e t S h o p s
C o m p le tio n ( m sf) ) T a k e - u p ( m sf )
P rim e A re a R e ta il C e n tre s
D e c e n t r a lise d R e t a il C e n t r e V a ca n cy (% )
5 Star Hotel Capital Values (US$/room)

800000
700000
600000
500000
400000
300000
1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: HVS International Research
Page 27
Industry Focus
THAILAND
REITS PERFORMANCE TRACKER Key issues
The Thai REIT market is made up of close-ended property The property sector including T-REITs should continue to
funds, which are publicly listed on the SET. There are currently outperform over the next 6 months. We maintain our
18 listed property funds for public offering (PFPOs) with a Overweight rating on Thai properties in view of strong FY08
market cap of Bt54b or equivalent to a 0.3% and 2.1% of the earnings growth of 38% (vs 13% for the SET). This strong
global and Far East REIT markets respectively. Within the Thai growth (although will not be seen in 1Q08 as buyers delayed
PFPO sphere, retail PFs have a slightly larger share of 26% their title transfer awaiting the tax-cut package to take effect
owing to the dominance of CPN Retail Growth Fund. The on 29 Mar 2008) should be supported by (i) rebounding
commercial, residential and airport PFs are fairly distributed at consumer confidence, and (ii) tax savings from the tax-cut
17-19% each. There were two close-ended funds listed since stimulus measure. Property-related taxes for property
beginning of this year, namely Property Perfect Fund (PFFUND), transactions were cut for 1 year from 29 Mar 2008. Currently,
a residential property fund and Quality Hospitality Leasehold property developers pay 3.3% specific business tax on real
Property Fund (QHOP), a hotel-related fund. estate sales, while the 2% transfer fee is normally shared
equally between the home buyers and developers. The
Thailand Market Summary proposed tax cuts will reduce the corresponding taxes to a
The Thai market has outperformed regional peers YTD, with total of only 0.11% vs 4.3% (developers share) previously.
the SET Index easing 1.1% vs -8.0% return for the region. The Homebuyers will also see their share of transfer fees drop from
SET Property Index rose 6.5% y-o-y due to strong showing by 1.0% to 0.005% and mortgage registration fees drop from
property companies, REITs, and contractors, thanks to the 1.0% to 0.01%.
rebounding consumer and business confidence and positive
government policy changes. Key index movers were Preuksa Property Tax Cuts
RE, Quality Houses, Property Perfect, Land & Houses and Lalin Tax Previous New
Property, which rose 16-44%. From 29/3/08-28/03/09
Specific business tax 3.3% 0.10%
The Thai REIT sector also out-performed the SET Index with Transfer fees 2.0% 0.01%
average 5.7% return YTD, thanks to the Bank of Thailand’s Mortgage registration fees 1.0% 0.01%
decision to lift the unremunerated reserve requirement (URR) Source: DBS Vickers
on short-term capital inflows, effective 3 March 2008. We see

this news as positive for the Thai REIT sector as foreign T-REITs should also benefit from the rise in demand and capital
investors can now invest in Thai REITs without being subject to values. In addition, proposed changes to guidelines for T-REITs
the 30% URR or hedging requirement. Leading the sector was including a relaxation in gearing levels, could provide a catalyst
CPN Retail Growth Property Fund (CPNRF), the largest REIT in for the sector. Our top REIT picks remain CPNRF and SPF, both
Thailand, which saw its unit price increase 16% YTD. of which are offering very generous dividend yields of 8.0%
and 9.9% respectively. CPNRF should benefit from the planned
Valuations acquisition of addition assets (potentially Central Pinklao,
Thai PFPO yields have narrowed since the end of 2007 to an Central Chiengmai, and Central Festival Phuket) in 2H08, while
average of 7.7% currently owing to the run-up in equity SPF should benefit from the additional flights from Thai
values. However, yield spreads are still at a healthy 291bps Airways International and improved tourism in Samui this year.
following a dip in long term bond yields in 1Q08. Thai REITs
are also trading at an average 8% discount to their NAVs.
SET vs REITs Index Property vs REITs Index

115
115
110
110
105
105
100 100
95
95
90 90
85 85
80 80
January-08 February-08 March-08 April-08 May-08 January-08 February-08 March-08 April-08 May-08
SET Property
Reits SET
Page 28
Industry Focus
VALUATIONS
Share Target NAV
Price Price Recmd DPU / EPS * (Bt) CAGR (%) Yield (%) / PE (x)* PS BV
Thailand FYE (Bt) (Bt) 07 08 09 07-09 07 08 09 (Bt) (Bt)
REITs
CPN Retail Growth Property
Fund Dec 10.50 12.00 Buy 0.82 0.84 0.86 2 7.8 8.0 8.2 10.3 1.0
Samui Airport Property Fund Dec 9.05 11.83 Buy 0.92 0.90 0.94 1 10.2 9.9 10.4 11.4 0.8
Developers
Industrial
Amata Corporation Dec 17.60 21.26 Buy 0.99 1.42 1.45 21 17.8 12.4 12.2 4.1 4.3
Hemaraj Land Dec 1.24 1.68 Buy 0.12 0.13 0.10 -9 10.0 9.6 12.1 0.8 1.6
Rojana Industrial Park Dec 15.60 20.39 Buy 1.21 1.24 1.46 10 12.9 12.6 10.7 5.9 2.6
Residential
Asian Property Dec 7.40 8.71 Buy 0.39 0.54 0.60 25 19.2 13.6 12.3 2.4 3.1
Lalin Property Dec 3.80 4.32 Buy 0.15 0.39 0.43 71 26.1 9.7 8.9 4.0 0.9
Land & Houses Dec 9.00 9.9 Hold 0.36 0.42 0.45 11 24.7 21.4 20.1 2.9 3.1
LPN Development Dec 7.60 8.3 Buy 0.63 0.83 0.80 13 12.1 9.2 9.4 2.6 2.9
M.K. Real Estate Dec 2.28 2.94 Buy 0.38 0.49 0.49 13 6.0 4.7 4.6 5.4 0.4
Noble Development Dec 4.06 5.06 Buy 0.54 0.72 0.72 16 7.5 5.6 5.6 7.1 0.6
Property Perfect Dec 4.96 6.85 Buy 0.52 0.93 0.92 33 9.5 5.3 5.4 7.7 0.6
Prinsiri Dec 2.64 3.76 Buy 0.08 0.34 0.55 165 34.0 7.8 4.8 2.2 1.2
Preuksa Real Estate Dec 12.10 14.21 Buy 0.58 0.95 1.07 36 20.8 12.8 11.3 3.8 3.2
Quality Houses Dec 2.68 3.00 Buy 0.15 0.19 0.21 19 18.4 13.9 13.0 1.2 2.2
SC Asset Corp Dec 13.20 14.76 Sell 1.97 1.90 1.78 -5 6.7 7.0 7.4 16.0 0.8
Sansiri Dec 3.82 4.31 Buy 0.48 0.66 0.76 26 8.0 5.8 5.0 5.7 0.7
Supalai Dec 3.74 5.21 Buy 0.53 0.74 0.83 25 7.0 5.0 4.5 3.0 1.3
Landlord
Central Pattana Dec 27.50 32.66 Buy 0.82 0.82 0.90 5 33.6 33.5 30.5 6.0 4.6
* For property developers & landlords

Page 29
Industry Focus
VALUATIONS
No of Avg
Gearing (%) ROE (%) ROA (%) NPI / Gross Margins * (%) Price Performance (%_ Units/ Free Float Liquidity
Shares*
Thailand 08 08 08 07 08 09 3M 6M 12M (m) (%) (‘000)
REITs
CPN Retail Growth Property Fund Cash 8.3 8.0 88.4 91.1 91.1 9 9 5 1,092 59.3 858
Samui Airport Property Fund Cash 7.3 7.2 n.a. n.a. n.a. 5 12 (9) 950 59.8 1,244
Developers
Industrial
Amata Corporation 43 27.1 15.1 49.1 49.1 49.2 9 7 42 1,067 33.1 1,665
Hemaraj Land 74 16.8 8.4 41.6 40.6 40.3 3 (14) 25 9,376 78.0 11,655
Rojana Industrial Park 181 17.4 5.9 27.9 31.2 30.3 (1) (9) 31 833 40.1 612
Residential
Asian Property 71 19.6 10.8 32.6 31.9 32.1 25 9 64 2,331 64.2 9,207
Lalin Property 26 9.3 7.3 39.2 39.5 39.5 28 3 (14) 825 26.4 455
Land & Houses 33 14.6 7.4 30.5 30.0 30.0 18 22 26 9,920 57.0 24,192
LPN Development 28 29.7 16.2 34.7 30.0 30.6 21 (7) 22 1,476 45.9 9,680
M.K. Real Estate 23 8.8 6.0 37.5 36.5 36.5 1 (7) (7) 867 63.0 819
Noble Development 89 10.0 4.8 37.1 35.6 35.6 3 (12) (19) 456 58.4 311
Property Perfect 71 12.2 6.2 29.9 29.5 29.5 38 19 51 788 48.3 2,221
Prinsiri 54 15.0 6.9 23.0 25.7 30.2 (10) (14) (6) 1,005 29.7 639
Preuksa Real Estate 14 21.2 15.2 34.9 35.0 33.0 52 51 118 2,186 21.8 2,436
Quality Houses 97 15.9 6.6 28.9 30.6 30.5 23 47 109 7,673 40.6 38,825
SC Asset Corp 30 11.4 6.9 36.9 36.2 36.1 9 41 55 321 37.1 6,249
Sansiri 91 11.3 4.4 30.3 28.5 30.4 8 10 29 1,474 65.6 4,719
Supalai 75 24.6 13.4 40.2 37.5 38.3 8 (1) 8 1,635 74.4 5,749
Landlord
Central Pattana 108 13.2 4.5 41.8 42.1 42.2 13 4 7 2,179 35.5 1,973
*For property developers & landlords
Page 30
Industry Focus
THAILAND
Distribution By Asset Type and Value Distribution by Geography
Industrial Thailand
10%
Commercial
Residential
18%
19%
Lifestyle
4%
Retail
26% Airport
17%
Svc Apt
6%
T-REIT Yield Spread Office and Retail T-REIT Yield Trend

10% 10%
9%
8%
8%
6%
7%
4%
6%
2%
5%
0% 4%
-2% 3%
D-03 J-04 D-04 J-05 D-05 J-06 D-06 J-07 D-07 D-03 J-04 D-04 J-05 D-05 J-06 D-06 J-07 D-07
T-reit Yield Spread Retail Office
Residential and Serviced Apartment T-REIT Yield Industrial, Airport and Lifestyle T-REIT Yield
Trend
8%
11.0%
7%
10.0%
6%
9.0%
5% 8.0%
4% 7.0%
D-03 J-04 D-04 J-05 D-05 J-06 D-06 J-07 D-07

Svc Apt Residential
6.0%
D-03 J-04 D-04 J-05 D-05 J-06 D-06 J-07 D-07
Airport Lifestyle Industrial
T-REIT P/BV vs Developers

Sector Cap rates Chg yoy Implied Cap
5.0
(%) Rates (%)
4.0 Prime Office 7-8 Unch 8.3
Retail 10 Up 9.5
3.0 Industrial 8-9 Unch 9-10
Hotel na Down -
2.0
Residential 6 Down 7.5
1.0 Svcd Apartment 8 Down 8-9
Cinema 9 Unch 8.0
0.0
2004 2005 2006 2007 2008
T-reit Developer Landlord
Page 31
Industry Focus
Commercial T-REIT Yield Commercial T-REIT P/BV

(x)
QHPF QHPF
M IPF
M IPF
JCP
JCP
BKKCP
BKKCP
0.0 0.2 0.4 0.6 0.8 1.0 1.2
0% 2% 4% 6% 8%
P/ BV
Yield
Industrial T-REIT Yield Industrial T-REIT P/BV Valuations
TFUND TFUND
TIF1 TIF1
0.0% 2.0% 4.0% 6.0% 8.0% 0.0 0.2 0.4 0.6 0.8 1.0
Yield P/ BV
Residential T-REIT Yield Residential T-REIT P/BV
MNIT M NIT
SIRIPF SIRIPF
0% 2% 4% 6% 8% 0.0 0.2 0.4 0.6 0.8
Yield P/ BV
Svcd Apartment T-REIT Yield Svcd Apartment T-REIT P/BV
URBNPF URBNPF
UOBAPF UOBAPF
GOLDPF GOLDPF
0.0% 2.0% 4.0% 6.0% 8.0% 0.0 0.2 0.4 0.6 0.8 1.0
Yield P/ BV
Airport and Lifestyle T-REIT Yield Airport and Lifestyle P/BV
M JLF MJLF
SPF
SPF
0.0 0.2 0.4 0.6 0.8 1.0

0% 2% 4% 6% 8% 10% 12% P/ BV
Yield
Page 32
Industry Focus
Acquisition Monitor
(Btm) 2002 2003 2004 2005 2006 2007 2008f 2009f
Airport
SPF - - - - 9301.4 - - -
Svc Apt
GoldPF - - - - - 2074.7 - -
UOBAPF - 818 - - - - - -
URBNPF - - - - - 711 - -
Retail
FuturePF - - - - 4778.8 - - -
CPNRF - - - 10613 - - - -
Residential
SiriPF - - - 850 - - - -
MNIT - - - 700 67 - - -
Industrial
TIF1 491.3 - 395 - -
Tfund 1730 2050 1970.25
Commercial
BKKCP - 956 - - - - - -
JCP - - - - 610.1 - - -
MIPF - - 1880 - - - - -
QHPF - - - - 7214.3 - - -
Miscellanous
MJLF (Entertainment) - - - - - 2301 - -
TUPF (dormitory) - - - - 829.6 - - -
QHOP (Hotel) - - - - - - 1849.6 -
Total - 1774 1880 14384.3 24851.2 7452.0 1849.6

Stock Date Gross Amt Raised (Btm) Method
Industrial
MNIT Oct 2006 670 Issue of new units via rights and public offering @ Bht10 each
Issue of new units via rights and private placement @
TICON 7 April 2006 2050.0
Bht10.65 each
Oct 2007 1970.25 Issue of new units via rights and public offering
TIF1 May 2007 395 Issue of new units via rights and private placement
Page 33
Industry Focus
THAILAND PROPERTY MARKET OVERVIEW

700 90000 0.6 35%
80000 30%
600 0.5
70000
500 25%
60000 0.4
400 20%
50000
0.3
300 40000 15%
0.2
30000 10%
200
20000 0.1 5%
100
10000
0 0%
0 0
2000 2001 2002 2003 2004 2005 2006 2007 2008F
J-00 J-01 J-02 J-03 J-04 J-05 J-06 J-07 J-08
Annual Supply (msm) Annual Demand (msm) Vacancy rate (RHS)
Gross Rents (THB/sm/mth) Capital Values (THB/sm)
Retail Rental Rates vs Capital Values Demand, Supply & Occupancy

2000 150 0.4 16%
1900 145
14%
140
1800 0.3 12%
135
1700 130 10%
1600 125 0.2 8%
1500 120 6%
115
1400 0.1 4%
110
1300 105 2%
1200 100 0.0 0%

J-00 J-01 J-02 J-03 J-04 J-05 J-06 J-07 J-08 2000 2001 2002 2003 2004 2005 2006 2007
Gross Rentals (THB/sm/mth) Capital Value (THB/sm) Annual Supply (msm) Annual Demand (msm) Vacancy rate (RHS)
Cumulative Supply of Serviced Industrial Land Plots (rai) Cumulative Supply of Purpose Built Factories
R ai
100,000 6% 700 35%
Cu m ulativ e Sto ck
Cu m u lativ e Sto ck % y -o-y ( R HS)
95,000 5% 600 30%
% y -o -y ( R HS)
90,000 4% 500 25%
85,000 3% 400 20%
80,000 2% 300 15%
75,000 1% 200 10%
100 5%
70,000 0%
2000 2001 2002 2003 2004 2005 2006 2007 0 0%
2004 2005 2006 1Q 07 2Q 07 3Q 07 4Q 07
5 Star Hotel Capital values New Hotel Room Supply

230000 Rooms Bangkok Others
1,400
1,200
210000
1,000
800
190000 600
400
170000 200
0
Mid-class
First-class
Economy
Luxury
2009
2009
2009
2009
2007
2007
2007
2007
150000
1999 2000 2001 2002 2003 2004 2005 2006 2007
Bangkok Phuket
Annual Supply, Demand of Condominiums in Bangkok

7000 35%
6000 30%
5000 25%
4000 20%
3000 15%
2000 10%
1000 5%
0 0%
2000 2001 2002 2003 2004 2005 2006 2007
Annual Supply (units) Annual Demand (units) Vacancy rate (RHS)
Page 34
Industry Focus
MALAYSIA
REITS PERFORMANCE TRACKER
The M-REIT market has grown from the initial listing of Axis Valuations
REIT in Aug 2005 to 11 REITs with a total market cap of The M-REIT sector is trading at about 7-7.5% FY08 yield
RM4.6b, accounting for 0.3% of the global and close to 2% while yield spreads have widened to about 320-360bps over
of the Far East segment. In terms of asset types, there is a the 10yr MGS rate, thanks to both DPU growth as well as a
diverse range from office to plantations. Office and retail lowering in the long term rates. Plantation REIT, Al-Hadhrah
assets account for 69% of asset value while industrial, Boustead REIT put on a strong showing, with REIT yields
healthcare and plantation players account for the remaining narrowing from 11% to 8% while office and industrial REITs
31%. There has been no new REIT listing YTD 2008. are yielding 5-6%.
Share Price Performance Key issues

The KLCI Property index declined 22% YTD, versus KLCI’s The key driver to the M-REIT sector over the next few
decline of 12%. Prices of property stocks in our universe months would remain organic growth. Favourable demand-
were down between 14- 43% YTD and now trading at an supply dynamics for commercial space in Malaysia, upside
average 50% to RNAV and 8.4x CY09 EPS. Despite the potential from rental revisions, ongoing asset improvement
weak property sentiment, we have yet to see the big plans and yield and earnings accretive acquisitions of 6-
correction in physical property prices. Take-up rate for 6.5% vs cost of debt of 4-5%, should continue to be the
recent launches in prime areas such as Damansara Heights, major uplift to DPU.
KLCC, Mont’ Kiara, etc were still good and land prices
within prime areas such as KLCC are still on the uptrend. Financing concerns are low as the bulk of the existing loan
Nevertheless, we expect delay in launches for high-end profiles are maturing from 2010 and average gearing for M-
segment due to weak property sentiment. REITs is at a manageable 22% against the maximum limit of
50%.
During this period, MREITs outperformed KLCI with YTD
decline of 4% against KLCI’s 12% due to its defensive In terms of our preferred buys, the clear winners will be
earnings quality and attractive yields. QCT’s announcement those with attractive underlying assets, good asset pipeline
of a proposed RM94.5m acquisition of 3 properties caused and proven acquisition track record such as Axis (Buy). Our
share price to spike to a recent high of RM1.47 before NEUTRAL stance for M-REITs is maintained.
dipping again.
KLCI vs REITs Index Property vs REITs Index

110
110
105
105
100
100
95
95
90
90
85
85
80 80
75 75
70 70
KLCI Reits Reits Property
Page 35
Industry Focus
VALUATIONS
Share Target NAV
Price Price Recmd DPU / EPS *(sen) CAGR (%) Yield (%) / PE (x)* PS BV
Malaysia FYE (RM) (RM) 07 08 09 07-09 07 08 09 (sen) (x)
REITs
Axis REIT Dec 1.77 2.60 Buy 11.0 13.5 13.8 12 6.2 7.5 7.7 148 1.2
Not Under Coverage #

Starhill REIT June 0.88 NR NR 6.7 6.8 7.1 3 7.6 7.7 8.1 98 0.9
Al-Hadharah Boustead REIT Dec 1.40 NR NR 10.9 11.1 12.0 5 7.8 7.9 8.6 103 1.4
Hektar REIT Dec 1.39 NR NR 10.7 10.2 11.6 4 7.7 7.3 8.3 197 0.7
Amanahraya REIT Mar 0.93 NR NR 2.0 7.6 9.0 115 2.1 8.2 9.7 95 1.0
AMFirst REIT Dec 0.97 NR NR 3.6 7.0 8.0 49 3.7 7.3 8.3 104 0.9
Tower REIT Dec 1.23 NR NR 8.5 9.8 10.0 8 6.9 8.0 8.1 147 0.8
Al-Aqar KPJ REIT Dec 1.29 NR NR 8.5 8.9 9.9 8 6.6 6.9 7.7 106 1.2
UOA REIT Dec 0.95 NR NR 5.4 6.4 7.0 13 5.7 6.7 7.4 140 0.7
Atrium REIT Dec 0.91 NR NR 6.5 8.5 9.0 18 7.2 9.4 9.9 99 0.9
Property Developers
SP Setia Oct 4.16 5.10 Buy 25.8 26.9 31.6 11 16.1 15.5 13.1 198 2.1
KLCC Property Mar 3.04 4.40 Buy 21.7 24.8 26.5 10 NM 12.3 11.5 450 0.7
Sunway City Jun 2.78 5.50 Buy 31.3 35.8 48.0 24 8.9 7.8 5.8 370 0.8
Eastern & Oriental Bhd Mar 1.70 3.80 Buy 17.0 14.9 18.7 5 10.0 11.4 9.1 134 1.3
Sunrise Berhad Jun 2.48 4.00 Buy 25.3 26.5 44.6 33 9.8 9.4 5.6 163 1.5
YTL Land Jun 1.22 2.70 Buy 4.6 8.7 25.2 134 26.6 14.0 4.8 159 0.8
* For property developers

# DPUs based on consensus. Book NAV Per Share, Gearing, ROA and ROE based on latest reported by company
NR: Not Rated
Prices as at 7 May 2008
Page 36
Industry Focus
VALUATIONS
No of
Gearing (%) ROE(%) ROA (%) NPI / Gross Margins *(%) Price Performance (%) Units / Free Float Avg
Shares* Liquidity
Malaysia 08 08 08 07 08 09 3M 6M 12M (m) (%) (‘000)
REITs
Axis REIT 2 9.5 8.6 82.6 78.4 78.4 (2) (7) (12) 256 40.0 128
Not Under Coverage #

Starhill REIT 13 6.3 5.3 80 NA NA (5) (6) (15) 1,179 33.3 352
Al-Hadharah Boustead REIT 0 10.5 9.7 89 NA NA (7) 9 10 472 61.7 296
Hektar REIT 31 3.2 2.0 NA NA NA (4) (7) 19 320 28.0 11
Amanahraya REIT 13 1.9 1.6 NA NA NA 7 2 0 429 59.9 213
AMFirst REIT 27 7.3 5.1 71 NA NA (1) (2) 2 429 54.6 164
Tower REIT 15 5.7 4.2 70 NA NA (4) (9) 5 246 31.3 22
Al-Aqar KPJ REIT 24 7.2 5.3 72 NA NA (1) (3) 30 281 67.5 241
UOA REIT 32 2.6 1.3 92 NA NA (3) 2 9 432 80.4 144
Atrium REIT 25 6.7 4.6 87 NA NA (5) (12) (9) 122 59.3 70
Property Developers
SP Setia 12 14.1 9.1 32.7 32.6 30.3 (20) (16) (28) 1,017 82.4 3,493
KLCC Property 25 5.3 2.4 87.0 88.8 89.0 (12) (17) (22) 934 68.3 1,171
Sunway City 33 11.8 3.5 53.5 51.8 53.2 (26) (49) (38) 470 40.0 504
Eastern & Oriental Bhd 46 30.3 6.4 20.6 46.0 47.8 (32) (31) (45) 419 75.0 221
Sunrise Berhad 13 23.7 11.9 36.3 30.2 38.6 (10) (24) (35) 450 63.5 1,046
YTL Land 9 5.6 3.2 20.1 35.1 32.1 (6) (19) (10) 796 38.9 331
*For property developers

#Book NAV Per Share, Gearing, ROA and ROE based on latest reported by company
Page 37
Industry Focus
MALAYSIA
Distribution By Asset Type and Value Distribution by Geography
Healthcare Malaysia
11%
Commercial Industrial
38% 12%
Plantation
8%
Retail
31%
M-REIT Yield Spread Retail and Office M-REIT Yield Trend

8.0% 10%
7.0%
6.0% 8%
5.0%
4.0% 6%
3.0%
2.0% 4%
1.0%
0.0%
2%
2006 2007 2008 2006 2007 2008
M-reit Yield Spread Retail Office
Industrial M-REIT Yield Trend Healthcare and Plantation M-REIT Yield Trend
8.0%
13%
7.5% 12%
11%
7.0%
10%
6.5% 9%
8%
6.0% 7%
6%
5.5%
5%
5.0% 4%
2007 2008
2006 2007 2008
Healthcare Plantation
M-REIT P/BV vs Developers and Landlords

3.0 (x) Sector Cap rates % Chg Implied Cap
(%) yoy Rates (%)
2.5
Prime Office 4.25-4.5 Unch 6.1
2.0 Retail 5.0-5.5 Unch 7.5
Industrial 6.5-7.5 Up 4.5-13
1.5 Hotel 5-6 Down na
1.0 Healthcare 4.7 Unch 4.8
Plantation na na 15.9
0.5
0.0
2006 2007 2008
M-reit Developer Landlord
Page 38
Industry Focus
Office M-REIT Yield Office M-REIT P/BV

(x)
AARET AARET
UOAR UOAR
TRET TRET
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 0.0 0.2 0.4 0.6 0.8 1.0 1.2
Yield
P/ BV
Industrial M-REIT Yield Industrial M-REIT P/BV

(x)
ATRM ATRM
AXRB AXRB
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4
Yield P/BV
Retail M-REIT Yield Retail M-REIT P/BV

(x)
STRH STRH
HEKT
HEKT
0.0 0.2 0.4 0.6 0.8 1.0 1.2

0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
P/BV
Yield
Healthcare and Plantation M-REIT Yield Healthcare and Plantation M-REIT P/BV
(x)
BIRT BIRT
AQAR
AQAR
6.0% 6.5% 7.0% 7.5% 8.0%

Yield 1.1 1.2 1.2 1.3 1.3 1.4 1.4 1.5
P/BV
Ownership Structure of REIT Management Company

No of shareholders in Mgmt Co Mgmt Moves*
Company =>3 2 1
Tower X na
UOA X na
AmanahRaya X na
Hektar X na
Starhill X na
Axis X na
Atrium X na
Al Aqar X na
AlHadharah Boustead X na
*Please refer to appendix for details
Page 39
Industry Focus
Funding Monitor
Ave
FY07
RE Total Gross Gearing Targeted Corporate Cost
Companies Int Debt Maturity Profile (RMb)
Assets Debt Gearing+ limit gearing Rating of
Cover
debt
(RMb) (RMb) (%) (%) (%) (%) (X) 2008 2009 2010 2011 =>2012
Al Aqar* 481.0 133.3 27.7 50 na na na 20.3 7.4 7.4 7.4 7.4 138.3
Axis 570.4 209.8 36.8 50 40.0# na 6.0 4.2 209.8 - - - -
AlHadharah 50 na na
477.3 0.0 0.0 nil nil - - - - -
Boustead
Hektar 559.4 184.0 32.9 50 na na 10.7 - - - 184.0 -
Starhill 1275.0 180.0 14.1 50 na na 4.8 9.4 - - 180.0 - -
50 na na 4.19-
550.0 135.5 24.6 35.3 30.0 105.5 - - -
4.32
50 na na 3.9-
UOA 425.3 64.3 15.1 2.4 64.3 - - - -
4.35
50 na na 4.5-
AmanahRaya 645.5 253.0 39.2 10.5 - - - 253.0 -
5.25
4.04-
Atrium 154.8 43.7 29.2 50 na na 7.0 - - - - 43.7
4.28
Total 5138.7 1203.6 23.4 50 311.5 112.9 187.4 444.4 182.0
* Al Aqar has secured a syndicated Bai’ Bithamin Ajil financing facility arrangement that enables them to pay in 59 equal monthly installments plus
RM134.6m beginning July 2006. Total assets have not included acquisition of 5 hospitals valued at RM170m in Mar 08
# Estimate
Acquisition Monitor
(RMm) 2002 2003 2004 2005 2006 2007 2008f 2009f
Commercial
Tower - - - - 390.0 - - -
UOA REIT - - - - 345.5 - - -
Amanah Raya - - - - - 645.5 - -
Retail/Mixed
Hektar - - - - - 515.4 - -
Starhill - - - 1150.0 - - - -
Industrial
Axis - - - 332.0 - 64.0 - -
Atrium 154.8 - -

Al Aqar KPJ - - - - 481.0 170.0 - -
Al Hadharah -
- - - - 477.3 - -
Boustead
Total - - - 1482.0 1216.5 2027.0 -

Stock Date Gross Amt Raised (RMm) Method
Commercial
Amanahraya Dec 07 93.0 Placement of 98.9m new units @ RM0.94
Industrial
Axis Jan 08 90.0 Placement of 50m new units @ RM1.80 each
Al Aqar KPJ Mar 08 81.5 Issue of 85.75m new units @ RM0.95
Page 40
Industry Focus
MALAYSIA PROPERTY MARKET OVERVIEW

6 700 5 25%
4
5 600
3 20%
500 2
4
15%
400 1
3 0
300 10%
-1
2
200
-2 5%
1 100 -3
-4 0%
0 0
92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Annual Supply (msf ) Annual Demand (msf ) Vacancy Rate (RHS)
Prime office value (RM psf) Ave rental (prime) RM psf/mth
Ave rental (overall) RM psf /mth
Residential Capital Values Demand, Supply & Occupancy

130 50000
40000
120 30000
20000
110
10000
0
100
-10000
90 -20000
-30000
80 01 02 03 04 05 06 07
Annual Supply (units) Annual Demand (units)
99 00 01 02 03 04 05 06 07
5 Star Hotel Capital Values (US$/room) Demand, Supply & Occupancy

180000 3000 60%
2500
50%
160000
2000
40%
140000 1500
1000 30%
120000
500
20%
0
100000
10%
-500
80000 -1000 0%
2000 2001 2002 2003 2004 2005 2006 2007
60000 Annual Supply (rooms) Annual Demand (rooms) Vacancy rate (RHS)
1999 2000 2001 2002 2003 2004 2005 2006 2007
Retail Demand, Supply & Occupancy

1.4 60%
1.2
50%
1.0
40%
0.8
0.6 30%
0.4
20%
0.2
10%
0.0
92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
-0.2 0%
Annual Supply (msf ) Annual Demand (msf ) Vacancy rate (RHS)
Page 41
Industry Focus
Page 42
Industry Focus
Singapore
Page 43
Corporate Profile
Allco Commercial REIT
Bloomberg: ALLC SP | Reuters: ALCR.SI
BUY S$0.825 FSSTI: 3,228.95 Allco is a geographically diversified REIT with exposure to the
office and retail markets in Singapore, Australia and Japan.
Pricce Target : 12 Month S$1.23 Recent negative newsflow on its corporate rating downgrade
to Ba2 and re-financing concerns dragged on stock
Description
Allco REIT (Allco) invests primarily in income producing performance. However, we believe this has largely been
commercial and office assets in Singapore, Australia and factored into share price. The group had extended the
Japan. As at 31st Dec 07, its portfolio consists of 9 assets refinancing of $550m loan to Dec 09 and an ongoing strategic
and a stake in AWPF private property fund, worth a total of review of its Australian assets could unlock cash to further pare
S$1.96bn. down gearing of 46%.
Manager & Strategy We believe a catalyst for a re-rating of the stock could hinge
Allco’s manager is Allco Singapore Pte Ltd, an indirect on outcome of its strategic review as well as clarity on the
wholly owned subsidiary of its sponsor Allco Finance Group restructuring exercise at its parent AFG and API. In the
(AFG). The manager aims to optimize yields for unitholders meantime, AEI at Keypoint and positive rental reversion should
through, I) opportunistic accretive acquisitions, ii) active drive DPU expansion.
asset management and efficient capital management.
Maintain BUY with a target price of S$1.23 based on 20%
discount to its DCF valuation.
PRICE PERFORMANCE
S$ (x)
1.8 1.2
Ceiling 4%
1.6
1.0
1.4
1.2 0.8
Mid
1.0 6 5%
ALL 0.6
0.8 C
0.6 0.4
Floor 10%
0.4
0.2
0.2
0.0 0.0
Mar-06 Jul-06 Nov-06 Mar-07 Jul-07 Nov-07 Mar-08 Jul-08 Nov-08 M ar-06 Jun-06 Sep-06 Dec-06 M ar-07 Jun-07 Sep-07 Dec-07 M ar-08
(%)
(x) 12
1.8
10
1.6
1.4 8
1.2
1.0 6
0.8
4
0.6
0.4 2
0.2
0
0.0
M ar-06 Jun-06 Sep-06 Dec-06 M ar-07 Jun-07 Sep-07 Dec-07
M ar-06 Sep-06 M ar-07 Sep-07 M ar-08
A LLC FSSTI Index FSTRE Real Estate ALLC M AS 10 year Govt Bond
Page 44
www.dbsvickers.com
Corporate Profile
Allco Commercial REIT
EARNINGS DATA
Gross Revenues vs NPI Margin Portfolio Details:
S$m
120 86% Valuation
85% LH / FH NLA sqf S$'m* S$ / sqf
100
China Square Central LH 2096 368,238 567.5 1,541
84%
80 55 Market Street LH 2825 72,109 148 2,052
83% Key Point LH 2075 311,892 374.4 1,200
60
82% Cosmo Plaza Shoyu-kun 224,470 84.7 377
40
81% Galleria Otemae Shoyu-kun* 108,735 87 800
20
Azabu Aco Shoyu-kun* 15,944 26 1,631
80%
Ebara Techno-Serve Shoyu-kun* 52,050 39.6 761
0 79%
Central Park FH 356,865 411 1,152
06A 07A 08F 09F
Centrelink HQ LH 2,101 215,278 137.9 641
Gross Revenues LHS NPI Margins RHS
AWPF Units - - 75.1 -
1951.2
DPU Performance ( since listing) Portfolio Size (since Listing)
S$ m
S cts 2000
8.0 1800
1600 612
7.0
6.0 1400
121
1200
5.0 141
1000 182
4.0 73
800
140
3.0 0 1219
600
892
2.0 400
663 668
1.0 200
0
0.0
Jun-06 Dec'06 30-Jun-07 31-Dec-07
06A 07A 08F 09F
B ase P o rtfo lio Revaluatio n A cquisitio n

35% S$m
600
30%
25%
500
20% 400
15% 300
10% 200
5%
100
0%
0
2008 2009 2010 2011 2012 2013
2008 2009 2010 > 2011

Property expenses (6) (14) (18) (19) Net Income Margins (%) (28.8) 22.7 31.8 32.6
Net Interest (Exp)/Inc (7) (16) (35) (35) ROAE (%) (1.7) 2.1 3.0 3.2
Exceptional Gain/(Loss) 3 15 0 0 ROA (%) (1.1) 1.2 1.6 1.7
Net Income 22 48 35 37 ROCE (%) (1.4) 1.2 3.4 3.5
Tax (32) (31) (4) (4) Int. Cover (x) 3.6 3.1 2.0 2.1
Net Income After Tax (10) 17 32 33 Aggregate Leverage (%) 36.8 48.1 46.5 47.1
Non-tax deductible Items (83) 30 16 16 Free CFPS (S cts) (138.5) (121.2) 4.4 4.6
NAV per shr (S cts) 117.1 149.0 143.4 138.1

DPU (S cts) 4.6 6.7 6.6 6.7
Revenue Gth (%) N/A 115.7 32.2 2.6
N Property Inc Gth (%) N/A 113.6 32.8 2.4
Net Inc Gth (%) N/A NM 85.2 5.2
Page 45
Corporate Profile
Ascendas India Trust
Bloomberg: AIT SP I Reuters: AINT.SI
BUY S$1.26 FSSTI: 3,228.95 With its 4 assets located strategically in the IT parks in India, AIT
is well positioned to ride the office real estate market boom in
Price Target: 12 Month S$1.84
India. Its portfolio has an average occupancy of 98% with a
Description strong tenant base consisting of internationally recognized
Ascendas India Trust (ART) invests in high-growth business companies who are looking to outsource their US operations to
space located in India. Its portfolio consists of 4 IT parks, IT hubs in India including GM, IBM and Infineon Technologies.
namely ITPB , ITPC, Cyberpearl and The V with a total SBA Development pipeline is visible and strong, with plans to
of 4.7m. As of 31 March’08, its portfolio has an appraised complete more space at its existing 4 properties. Together these
value of S$1bn.
can add 4.2msf of new space of 89% of existing portfolio when
completed. In terms of acquisition growth, it has the ROFR from
Manager & Strategy
Ascendas Land and Ascendas India Development Trust for
A-iTrust is managed by Ascendas Property Fund Trustee Pte.
Ltd., a wholly-owned subsidiary of Ascendas Land. The trust another 10.8msf of pipeline.
aims to acquire, own and develop land or uncompleted AIT offers a unique exposure into the fast growing business parks
developments to be used for business space with the leasing business in India. The stock offers FY09 and FY10 yields
objective of holding the properties upon completion. It also of 5.7% and 6.4% 46% upside to our price target of $1.84.
has 2 ROFR with Ascendas India Development Trust and
Ascendas over their properties in India.
Sponsor
Ascendas Land is Asia's leading provider of business space
solutions. They provide AREIT with a pipeline of potential
acquisition opportunities.

S$ (x)
2.0 1.6
1.8 1.4
1.2
Ceiling 4%
1.6
1.0
1.4 0.8
Mid 5% 0.6
1.2
AiT 0.4
1.0 0.2
Floor 6%
0.8 0.0
Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08
(x) (% )
1 .4 7.0
1 .3 6.0
1 .2 5.0
1 .1
4.0
1 .0
3.0
0 .9
2.0
0 .8
0 .7 1.0
0 .6 0.0
Ju l-0 7 A u g -0 7 Sep -0 7 O ct -0 7 N o v-0 7 D ec-0 7 Jan -0 8 Feb -0 8 M ar-0 8 A p r-0 8 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08
Ait M AS 10 year bond yield
A iT FSSTI FSTRE
Page 46
www.dbsvickers.com
Corporate Profile
Ascendas India Trust
EARNINGS DATA
Gross Revenues vs NPI Margin Portfolio Details
(S$m)
(% ) Operating
180 64
160
Buildings m Proposed Devt
63
140 62
sqft m sqft Remarks
120
61 24 acres/ 2.7m sqft
100
80
60 SBA available for
60
59
ITPB 1.7 0.7 future devt
58
40
57
ITPC 1.3 0.7
20
0 56 The V 0.4 -
07 08
Gross Revenues LHS
09F 10F
Net Property Income Margin RHS
CyberPearl 1.3 -
Total 4.7 1.5
DPU Performance ( since listing) Portfolio (NLA) by Country Tenant sector by base
rental
S cts Others F&B
10.0
5% 1%
9.0
Chennai
8.0 ITES
28%
Hyderabad 19%
7.0
36%
6.0
5.0
4.0
IT/ITES
3.0
10%
IT
2.0 65%
1.0
0.0
Bangalore
07 08 09F 10F
36%
Occupancy Debt Maturity Profile

S$ m
45
100% 100%
40
35
30
25
20
95%
15
94%
10
5
0
2008 2009 2010 2011 >2012
ITPB ITPC The V CyberPearl

FY Mar 2007A 2008A 2009F 2010F FY Mar 2007A 2008A 2009F 2010F
Other Operating expenses 1 (10) (9) (11) Managers & Trustee’s fees (1.1) 9.7 7.3 7.1
Net Interest (Exp)/Inc (5) (7) 0 (7) ROAE (%) 8.5 0.4 6.3 7.8
Exceptional Gain/(Loss) (3) 2 0 0 ROA (%) 4.5 0.3 4.1 4.3
Net Income 47 39 65 82 ROCE (%) 5.9 1.3 5.9 7.0
Tax (5) (31) (12) (16) Int. Cover (x) 8.1 6.8 NM 12.5
Minority Interest (2) (5) (2) (3) Current Ratio (x) 0.6 1.1 1.1 1.1
Total Return 41 62 51 63 Operating CFPS (S cts) 5.1 (1.5) 8.6 9.2
Non-tax deductible Items 0 (15) 6 8
NAV per shr (S cts) 63.1 103.9 103.5 103.9
DPU (S cts) 5.4 6.1 7.3 8.3
Revenue Gth (%) N/A 50.2 20.6 28.4
Net Inc Gth (%) N/A (93.2) 1,751.7 25.0
Sources: Company, Bloomberg, DBS Vickers AIT was listed on 1/8/07
Page 47
Corporate Profile
Ascendas REIT
Bloomberg: AREIT SP | Reuters: AEMN.SI
BUY S$2.68 FSSTI: 3,228.95 AREIT offers attractive yields of 5.8% and a steady income
stream supported by a weighted average length of lease of 5.9
Target Price : 12-Month S$2.86
years. An estimated 47% of its portfolio caters to long-term sale
Description and leaseback properties.
AREIT invests primarily in income producing industrial and Its science and business park properties are also enjoying the
st
business space that are located in Singapore. As at 31 spillover effect of the present shortage of new tight office
March ’08, its portfolio consists of 84 assets with a supply and high office rents in the prime areas.
combined appraised value of S$4.0bn.
Acquisition pipeline growth, although moderated from the peak
Manager & Strategy of $1b pa, is still a commendable $300-400m a year. With a low
AREIT’s manager is Ascendas Funds Management limited, a gearing of 38.3%, it can fund these new buys via debt. Move
100% subsidiary of its sponsor Ascendas. The investment into development activities could raise risks, however, as returns
strategy of AFM is to invest in a diverse portfolio of Business of c8% are better than the 6.5-7% for completed properties,
Park, hi-tech and light industrial properties, distribution and these deals are earnings accretive.
logistics centres and warehouse retail properties in
Singapore. A-REIT is currently trading at FY09 and FY10 yields of 5.8-5.9%.
Maintain Buy with a price target of S$2.86.
Sponsor
Ascendas is Asia's leading provider of business space
solutions. They provide AREIT with a pipeline of potential
acquisition opportunities to be injected to the REIT.
PRICE PERFORMANCE
S$ (x)
4.00 Ceiling 4% 2.1
3.50
1.9
3.00 AREIT
2.50 1.7
2.00 M id 6.5%
1.5
1.50
1.00 Floor 10% 1.3
0.50
1.1
0.00
Jan-03 Nov-03 Sep-04 Jul-05 M ay-06 M ar-07 Jan-08 Nov-08 0.9
Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07
(x) (%)
5.0 12
4.5
4.0 10
3.5
3.0 8
2.5
2.0 6
1.5
1.0 4
0.5
0.0 2
Jan-03 Oct-03 Jul-04 A pr-05 Jan-06 Oct-06 Jul-07 A pr-08
0
A REIT FSSTI Index FSTRE Real Estate Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08
Sources: Company, Bloomberg, DBS Vickers A REIT M as 10 yr Govt Bond
Page 48
www.dbsvickers.com
Corporate Profile
Ascendas REIT
EARNINGS DATA
Gross Revenues vs NPI Margin Portfolio Details ( Top ten properties by Valuation)
Valuation Val %
S$m (%)
450 77 NLA sqf S$'m1 S$psf Portfolio
400 77 Telepark (Biz & Sc Park) 260,952 242 927 6%
350 76 The Gemini (Biz & Sc Park) 282,633 102.7 363 3%
300 The Capricon (Biz & Sc Park) 239,485 103.4 432 3%
76
250 Kim Chuan Tele Complex (Hi-
75 Tech) 270,388 116 429 3%
200
75 Techlink (Hi-Tech) 371,898 111.9 301 3%
150 Techplace I (Flatted Factories) 641,274 121.9 190 3%
100 74
50 74 Techplace II (Flatted Factories) 762,335 148.4 195 4%
0 73 C&P Logistics Hub (Logistics) 1,377,506 237 172 6%
SenKee Logistics (Logistics) 305,810 106.6 349 3%
05 06 07 08 09F 10F
TT International Tradepark
Gross Revenues NP I M argin (Logistics) 460,151 106 230 3%
DPU Performce ( since listing) Asset Class by Valuation

S cts Investment
18.0 Warehouse
Retail Facilit ies Properties
16.0
3% 4%
14.0
12.0 Logistics & Distribution

Science &
Centres
10.0 Business Parks
25%
8.0 22%
6.0
4.0
Flatted
2.0 Hi-Tech Fact ories
0.0 Industrials 7%
Light Industrials
05 06 07 08 09F 10F 25%
14%

60% S$m
1000
50%
800
40%
600
30%
20% 400
10% 200
0% 0
FY08 FY09 FY10 FY11 FY12 > FY12 2008/09 2009/10 2010/11 2011/12

FY Mar 2007A 2008A 2009F 2010F FY Mar 2007A 2008A 2009F 2010F
Net Income 148 175 194 210 ROCE (%) 6.4 6.0 6.1 6.1
Tax 0 0 0 0 Int. Cover (x) 4.9 5.3 4.3 4.0
Non-tax deductible Items 15 12 13 15 Free CFPS (S cts) 15.4 17.0 16.0 15.5
NAV per shr (S cts) 149.1 184.2 181.7 180.8

DPU (S cts) 12.7 14.1 15.6 15.9
Revenue Gth (%) 24.6 13.9 18.0 10.0
Net Inc Gth (%) 12.4 17.9 10.7 8.2
Page 49
Corporate Profile
Ascott Residence Trust
Bloomberg: ART SP | Reuters: ASRT.SI
BUY S$1.30 FSSTI: 3,228.95 Started from an initial portfolio of 12 properties, its asset base
has tripled to 37 properties valued at S$1.53b as at Dec 07. It
Price Target : 12-Month S$ 2.30
has a well-balanced portfolio of 52% emerging market and 48%
Description stable economies to provide both earnings growth and stability.
Ascott Residence Trust (ART) is the first and only listed
service residence investment trust in Singapore, focusing on Strong FDI into parts of Asia such as Vietnam, China, Philippines
high-growth serviced residence and rental housing markets and Singapore would enable ART to enjoy strong demand for its
st
located in Asia. Since its listing on the 31 March 06, ART services and boost room and occupancy rates. Together these 4
has almost doubled its asset portfolio from S$856m to markets account for up to 82% of topline.
S$1.5bn with a high portfolio occupancy of c.80% as at 31
Dec 07. Acquisition visibility is clear with a strong pipeline from parent
Ascott and the group is likely on track to achieve its targeted
Manager & Strategy portfolio size of $2b by end 2008. With a gearing of 35%, it has
ART is managed by is managed by Ascott Residence Trust sufficient capacity to fund these purchases via debt.
Management Limited, a wholly-owned subsidiary of The
Ascott Group Limited (Ascott). The manager aims to actively We continue to like ART’s exposure to the relatively more stable
pursue acquisition opportunities and yield optimization segment component of the hospitality market. Our price target
through leveraging on the experience of its management of $2.30 offers potential upside of 77%.
team and through the support of the sponsor.
Sponsor
The Ascott Group is the largest international serviced
residence owner-operator, with over 20,000 serviced
residence units in key cities of Asia Pacific, Europe and the
Gulf region.
PRICE PERFORMANCE
S$ (x)
3.0 1.6
Ceiling 3%
1.5
2.5
1.4
2.0 1.3
M id 4.5 %
1.2
1.5 ART
1.1
1.0 Floor 6% 1.0
0.9
0.5
0.8
0.0 0.7
Apr-06 Sep-06 Feb-07 Jul-07 Dec-07 M ay-08 Oct-08 M ar-06 Aug-06 Jan-07 Jun-07 Nov-07 Apr-08
(x) (%)
2.0 7
1.8 6
1.6 5
1.4 4
3
1.2
2
1.0
1
0.8
0
Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07
M ar-06 Sep-06 M ar-07 Sep-07
FSSTI Index FTSRE Real Estate ART
ART M as 10 year Govt Bond
Page 50
www.dbsvickers.com
Corporate Profile
Ascott Residence Trust
EARNINGS DATA
Gross Revenues vs NPI Margin Valuation by Country Revenue by Sector
Industrial
S$m % Japan
250 48 18%
20% Singapore
27% Others
47
200 34%
Australia
46
150 1%
45 Vietnam Healthcare
100
11% 17%
44
50 Philippines
43
9%
China Consumers
0 42 Manufacturing
Indonesia 26% 9% IT
06 07 08F 09F 12%
Gross Revenues LHS Net Property Margins RHS 6% 10%
DPU Performance ( since listing) Tenant – Length of Stay

S cts
10.0 Less than 1 mth
more than 12 27%
8.0 mths
37%
6.0
4.0
2.0
1 - 6 mths
0.0 6 - 12 mths 22%
06 07 08F 09F 14%

(S$ m) (%) S$m
250 92
400
90 350
200
88
300
150 250
86
200
100
84 150
50 100
82
50
0 80
0
4Q06 1Q07 2Q07 3Q07 4Q07
2008 2009 2010 2011
A OR (LHS) Rev P A R (LHS) Occupancy Rate (RHS)

Exceptional Gain/(Loss) (7) (7) 0 0 ROA (%) 0.9 0.9 2.4 2.7
Net Income 22 41 56 64 ROCE (%) 3.0 2.4 4.2 4.6
Tax (6) (22) (8) (10) Int. Cover (x) 3.8 4.3 4.0 4.4
Minority Interest (6) (6) (7) (8) Current Ratio (x) 1.0 0.4 0.4 0.4
Non-tax deductible Items (3) (115) 12 12 Free CFPS (S cts) (0.1) 10.5 8.7 9.6
NAV per shr (S cts) 132.7 160.5 158.6 156.8

DPU (S cts) 4.8 7.7 8.6 9.5
Revenue Gth (%) 6.6 72.4 23.3 9.3
Net Inc Gth (%) (45.7) 37.8 209.8 13.8
Page 51
Corporate Profile
CapitaCommercial Trust
Bloomberg: CCT SP | Reuters: CACT.SI
BUY S$2.35 FSSTI: 3,228.95 As one of the largest commercial REIT with a total portfolio
NLA of 2.5msf or an estimated 7% of the prime Grade office
stock, CCT is well placed to ride on the office upcycle.
Description CCT will continue to benefit from the positive rental reversion
CCT invests primarily in income producing commercial trend with a total 56% of rental income due to be reviewed
assets. Since listing, its has grown to be Singapore’s biggest over the remaining 2008 to 2010. Large spreads between new
st
commercial REIT by market capitalization. As at 31 Dec 07, and previous leases should translate to strong earnings growth
its assets, located mostly in downtown core and in the CBD over the next 2 years. In addition, acquisition of One George St
has a combined appraised value of S$5.1bn.
for $1.165b or at a NPI yield of 4.25% is accretive to earnings.
Progressive AEI at Raffles City office and retail area should
Manager & Strategy
provide another boost to bottom line in the medium term.
CCT is managed CapitaCommercial Trust Management
Limited ("CCTML"), an indirect wholly-owned subsidiary of We continue to like CCT for its strong organic earnings growth
CapitaLand. The manager aims to actively manage its assets prospects. FY08 and FY09 yields are attractive at 4.5-5.5%.
and source for accretive acquisition opportunities when Our price target of $2.93 offers a potential upside of 25%.
available.
Sponsor
Capitaland is one of Asia’s largest listed real estate
companies, providing CMT with an encompassing pipeline
of potential asset injections.
PRICE PERFORMANCE
(x)
S$
1.8
3.9 Ceiling 3%
1.6
3.4
1.4
2.9
CCT Mid 4.5% 1.2
2.4
Floor 6% 1.0
1.9
0.8
1.4
0.6
0.9 Mar-05 Aug-05 Jan-06 Jun-06 Nov-06 Apr-07 Sep-07 Feb-08
May-04 Oct-04 Mar-05 Aug-05 Jan-06 Jun-06 Nov-06 Apr-07 Sep-07 Feb-08 Jul-08 Dec-08
(x) (%)
3.5
7
3.0
6
2.5 5
2.0 4
1.5 3
1.0 2
0.5 1
0.0 0
May-04 Nov-04 May-05 Nov-05 May-06 Nov-06 May-07 Nov-07
May-04 Oct-04 Mar-05 Aug-05 Jan-06 Jun-06 Nov-06 Apr-07 Sep-07 Feb-08
CCT FSSTI FSTRE Real CCT MAS 10 year Govt Bond
Page 52
www.dbsvickers.com
Corporate Profile
CapitaCommercial Trust
EARNINGS DATA
300.0
S$'m % 82.0 Valuation
80.0
NLA S$'m Val psf % Portfolio
Capital Tower 740,665 1,090 1,472 24%
250.0
78.0
200.0 6 Battery Road 495,606 1,031 2,080 23%

76.0
HSBC Building 200,394 230 1,146 5%
Starhub Cebtre 280,083 295 1,053 7%
150.0 74.0
100.0
72.0
Robinson Pt 133,090 169 1,270 4%
70.0
Bugis Village 118,737 70 590 2%
50.0
68.0 Golden Shoe Carpark 42,416 110 2,593 2%
0.0 66.0 Market Street Carpark 21,197 59 2,783 1%
01 02 03 04 05 06 07 08F 09F
Raffles City- 60% 440,435 1,447 3,284 32%
Gro ss Revenues LHS NPI M argin RHS
4500.2
DPU Performance ( since listing) Top 10 Tenant Profile
S cts
14.0 StarHub Ltd.
EDB
12.0
CapitaLand Group(2)
10.0 Cisco Systems (USA) Pte. Ltd.
8.0 Robinson & Co

JP M organ
6.0
HSBC
4.0
Standard Chartered Bank
2.0 GIC
RC Hotels (Pte) Ltd
0.0
04 05 06 07 08F 09F
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
35.0% S$'m
31.5% 700
30.0%
30.0% 600
25.0% 500
21.8%
20.0% 400
300
15.0% 12.6%
200
10.0%
100
4.1%
5.0%
-
0.0% FY08 FT09 FY10 FY11
FY08 FY09 FY10 FY11 > FY12

Net Income 70 110 139 174 ROCE (%) 3.6 3.5 3.4 3.9
Tax 0 0 0 0 Int. Cover (x) 3.6 3.2 3.0 2.9
Total Return 427 1,416 139 174 Operating CFPS (S cts) 8.5 11.6 9.2 11.2
Non-tax deductible Items 9 10 11 15 Free CFPS (S cts) (114.6) 9.7 (73.2) 12.0
NAV per shr (S cts) 191.2 284.5 273.4 262.8
DPU (S cts) 7.3 8.7 10.7 12.9
Revenue Gth (%) 35.3 54.2 13.9 24.9
Net Inc Gth (%) 14.1 56.6 26.5 24.9
Page 53
Corporate Profile
CDL Hospitality Trust
Bloomberg: CDREIT SP | Reuters: CDLT.SI
BUY S$2.05 FSSTI: 3,228.95 CDL HT is Singapore’s purest listed hotel player with a total
inventory of 2,324 rooms or an 8% market share.
Target Price : 12 Month S$2.90
The group is well placed to benefit from various government
Description initiatives to position Singapore as a MICE and tourist
CDL H-REIT invests primarily in income producing hospitality destination with events like F1 in Sept’08, opening of the 2 IRs
assets. Its initial portfolio consists of four quality hotels in 2009/2010 as well as hosting the Youth Olympics.
located at and near the CBD. Since its listing, it has added 2
more hotels to its portfolio, with a combined appraised Strong industry fundamentals such as a lack of new room
value of S$1.6bn as at 31 Dec 2007. supply over FY08 and strong demand should underpin strong
Revpar growth. In 1Q08, room rates in Singapore grew a
Manager & Strategy strong 30% yoy.
CDL H-REIT is managed by M&C REIT Management Limited,
an indirect wholly owned subsidiary of Millennium & We reiterate Buy on CDL HT’s given its strong positioning in a
Copthorne Hotels plc. The manager works with master buoyant sector. Based on our DPU estimates of 11.9cts and
lessees of the hotels to implement asset enhancement plans 13.1cts for FY08 and FY09, CDL HT is trading at 5.8-6.4%
and source for acquisitions with the expertise from its yield respectively. Our price target of $2.90 offers 41% upside.
sponsor, Millennium & Copthorne Hotels Plc (M&C) as well
as its parents, City Developments Ltd.
Sponsor
M&C is an internationally recognized hotel group with a
portfolio of c.105 hotels in 18 countries around the world,
representing a wide variety of hotel styles with high
standards of service and facilities.
PRICE PERFORMANCE
S$
4.4
(x)
Ceiling 3% 2.6
3.9
2.4
3.4
2.2
2.9 CDL HT 2.0
Mid pt 5%
2.4 1.8
1.9 Floor 7% 1.6
1.4 1.4
1.2
0.9
1.0
0.4
0.8
Jul-06 Dec-06 May-07 Oct-07 Mar-08 Aug-08
Jul-06 Nov-06 Mar-07 Jul-07 Nov-07 Mar-08
S$
3.0 (% )
7
2.5
6
2.0 5
4
1.5
3
1.0 2
1
0.5
0
0.0 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08
Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 A pr-08 CD REIT MAS 10 year Govt Bond
CDL HT FTSRE FSSTI
Page 54
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Corporate Profile
CDL Hospitality Trust
EARNINGS DATA
S$m % Number Valuation Val / room
160 95 of Rooms S$'m S$'000
140 Orchard Hotel 653.0 458.0 701.4
94
120 Grand Copthorne
93
100 Waterfront Hotel 550.0 334.0 607.3
80 92 M Hotel 413.0 253.0 612.6
60
91
Copthorne King's Hotel 310.0 141.0 454.8
40 Orchard Hotel Shopping
20
90 Arcade - 40.3 -
0 89
Rendezvous Hotel
03 04 05 06 07 08F 09F Auckland 455.0 127.5 280.2
Gross Revenue LHS NPI Margin RHS Novotel Quay 398.0 275.0 691.0
2,779.0 1,628.8
DPU Performance ( since listing) Rooms by Hotel Rooms by

S cts Region
14.0
Novotel Quay
12.0 New Zealand
14% Orchard Hotel
10.0 16%
Rendezvous 24%
8.0
Hotel
6.0
Auckland
4.0 16% Grand
2.0 Corpthorne
Copthorne Singapore
0.0 M Hotel Waterfront
King's Hotel 84%
04 05 06 07 08F 09F 15% Hotel
11%
20%
Operational Data Debt Maturity Profile
S$
250 90% S$m
89%
200
300
88%
87%
150
86%
200
85%
100
84% 100
50 83%
82% 0
0
4Q06 1Q07 2Q07 3Q07 4Q07
81%
FY08 FY09
RevPAr (LHS) AOR (LHS) Occupancy (RHS)

Net Income 23 60 91 101 ROCE (%) 2.0 5.6 6.6 7.1
Tax 0 0 0 0 Int. Cover (x) 4.6 4.8 6.5 7.8
Non-tax deductible Items (3) 7 8 8 Free CFPS (S cts) (134.0) (16.3) 8.8 12.1
NAV per shr (S cts) 102.9 175.1 159.1 157.3

DPU (S cts) 2.9 9.0 11.9 13.1
Revenue Gth (%) N/A 221.6 39.6 9.1
Net Inc Gth (%) N/A 161.8 50.9 11.2
Page 55
Corporate Profile
Frasers Centerpoint Trust
Bloomberg: FCT SP | Reuters: FCRT.SI
BUY S$1.33 FSSTI: 3,228.95 We like FCT for its exposure to the resilient Singapore’s suburban
retail sector. FCT’s well-located properties, within huge
Price Target: 12 Month S$1.66
population catchment areas of Woodlands and Yishun, will
Description ensure continued strong patronage at its malls. Its overseas
FCT invests primarily in income producing retail properties. expansion, via a stake in Malaysian-listed Hektar Reit, should
Its initial portfolio consists of three quality suburban malls provide another wing of growth in the medium term.
with a combined appraised value of S$989 million as at 30
September 2007. We expect FCT to grow its DPU from its i) positive rental
reversions from its tenant expiry profile of c. 60% over FY08-
Manager & Strategy FY09, ii) accretive acquisition lineup of properties over the next
The manager, Frasers Centerpoint Asset Management Ltd, few years starting with Northpoint II in FY08 and Yew Tee Point
is a wholly owned subsidiary of the Sponsor Frasers in FY09.
Centerpoint Limited (“FCL”). It aims to actively manage its
properties and invest in income producing retail assets or In addition, asset enhancement activities such as downsizing of
properties that could be developed into income generating ‘big box’ space at Causeway Point and active tenant mix
properties. management should provide the organic component of growth.
Sponsor Maintain Buy on FCT with a price target of S$1.66. At the

FCL is a wholly-owned subsidiary of F&N Limited, a leading current price, the stock offers FY08 and FY09 yields of 5.4-5.6%.
international and diversified business group. FCL is one of
the fastest growing real estate developers in Singapore,
offering a ready pipeline of assets for injection.
PRICE PERFORMANCE
S$ (x)
2.3 Ceiling 3.5%
2.1 1.95
1.9 1.70
1.7 Mid 4.5%
1.5 FCT Share Px 1.45
1.3
1.1 1.20
0.9
0.95
0.7
Floor 6%
0.5 0.70
Jul-06 Nov-06 Mar-07 Jul-07 Nov-07 Mar-08 Jul-08 Dec-08 Jul-06 Nov-06 Mar-07 Jul-07 Nov-07
(x) (% )
1.8 7
1.7
6
1.6
1.5 5
1.4 4
1.3 3
1.2
1.1 2
1.0 1
0.9 0
0.8
Jul-06 Nov-06 Mar-07 Jul-07 Nov-07
Jul-06 Nov-06 M ar-07 Jul-07 Nov-07 M ar-08
FCT MAS 10 yr Govt bond
FCT FTSE STI FTSRE Real Estate
Page 56
www.dbsvickers.com
Corporate Profile
Frasers Centerpoint Trust
EARNINGS DATA
S$m Valuation Value
120 71%
NLA (sf) ($m) ($psf)
100 70%
Causeway Point 418,543 676 1,615
80 69%
Northpoint 149,243 266 1,782
60 68%
Anchorpoint 71,000 47 662
40 67%
Total 638,786 989
20 66%
0 65%
FY03 FY04 FY05 FY06 FY07 FY08F FY09F
Gross Revenues (LHS) NPI Margin (RHS)
DPU Performance ( since listing) Top 5 Tenant - Retail

S cts
8.0 14%
7.0
12%
6.0
10%
5.0
8%
4.0
6%
3.0
2.0 4%
1.0 2%
0.0 0%
06 07 08F 09F Cold Storage Metro Courts John Little Cathay Cineplexes

No. of Leases % NLA
S$m
120 35% 300
100 30%
250
25%
80 200
20%
60 150
15%
40 100
10%
20 5% 50
0 0% 0
FY08 FY09 FY10 FY11 FY12
No. of leases LHS % of NLA RHS FY08 FY09 FY10 FY11 FY12

FY Sep 2006A 2007A 2008F 2009F FY Sep 2006A 2007A 2008F 2009F
Net Income 8 35 37 39 ROCE (%) 1.2 4.6 4.4 4.6
Tax 0 0 0 0 Int. Cover (x) 4.1 3.9 3.4 2.8
Non-tax deductible Items 1 4 4 4 Free CFPS (S cts) (0.8) 7.5 (18.2) (10.0)
NAV per shr (S cts) 107.8 115.4 113.6 114.6

DPU (S cts) 1.5 6.5 7.2 7.4
Revenue Gth (%) (75.6) 346.8 8.4 15.2
N Property Inc Gth (%) (75.6) 331.4 10.4 16.0
Net Inc Gth (%) (73.9) 331.9 5.6 6.1
Page 57
Corporate Profile
K-REIT Asia
Bloomberg: KREIT SP | Reuters: KASA.SI
BUY S$1.43 FSSTI: 3,228.95 K-REIT is a beneficiary of the positive office rental reversion
market. An estimated 42% of its portfolio NLA is due for lease
renewals over 2008-10. Average gross rent within its portfolio
Description is a low $6.86psf while current prime office rents are at an
KREIT Asia invests primarily in income producing office and average $16psf/mth as at end 1Q08.
commercial real estate assets. As at 31 Dec’07, its portfolio Balance sheet has strengthened post its rights issue, with
consists of 5 commercial assets located at and near the CBD gearing down to 27.6%, giving it significant headroom for
with a combined appraised value of S$2.1bn . new acquisitions. In the near term, it has an estimated
remaining short-term debt of $390m to be refinanced.
Manager & Strategy
K-REIT Asia is managed by K-REIT Asia Management Ltd, a
While the recent 8-for-5 rights issue, completed in May 08,
wholly-owned subsidiary of Keppel Land Ltd. The manager
aims to maximize yields to unitholders through actively may dampen DPU growth, it is likely to have been anticipated
managing its assets, practising prudent capital management and factored into share price.
and sourcing for acquisitions opportunities from third
parties and leveraging on the expertise from its sponsor, K-REIT offers post-rights FY08 and FY09 DPU yield of 5.2%
Keppel Land. and 6.1% respectively. Price target of $1.96 offers upside of
37%.
Sponsor
Keppel Land is the property arm of the Keppel Group, one
of Singapore's largest conglomerates.
PRICE PERFORMANCE
S$ (x)
3.5 Ceiling 3% 1.8
3.0 1.6
1.4
2.5
M id 5% 1.2
2.0 1.0
1.5 0.8
Floor 8%
0.6
1.0 K REIT 0.4
0.5 0.2
0.0 0.0
Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08
Historical Relative Tend Analysis Yield vs 10-yr Govt Bond (since listing)
(x) (%)
2.5
8
2.0 7
6
1.5
5
1.0 4
3
0.5 2
1
0.0
0
Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08
Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08
K-REIT FSSTI Index FTSRE Real Estate
K-REIT M A S 10 year Go vt B ond
Page 58
www.dbsvickers.com
Corporate Profile
K-REIT Asia
EARNINGS DATA
S$ m %
NLA Value Value
70 72
Property (sq f) (S$'m) (S$ psf)
60 70
Prudential Tower 108,396 227 2,094
50 68
66
40
64 Keppel Towers and GE Tower 430,422 580 1,348
30
62 Bugis Junction Towers 247,372 303 1,225
20
60
10 58 One Raffles Quay* 445,023 992 2,229
0 56
05 06 07 08F 09F
Total 1,231,213 2,102
Gro ss Revenues LHS NP I M argins RHS
* K-REIT Asia owns a one-third interest of One Raffles Quay,
which has a total net lettable area of 124,078 sq
DPU Performance ( since listing) Top 10 Tenants by NLA

S cts Keppel Land
10.0 P rudential A ssurance

9.0 B arclays P LC
8.0 Ernst & Yo ung
7.0
Credit Suisse
6.0
GE P acific
5.0
A B N A M RO
4.0
I.E Singapo re
3.0
2.0 UB S A G
1.0 Deutche B ank
0.0 0% 1% 2% 3% 4% 5% 6% 7% 8%
06 07 08F 09F
Operational Data Debt Maturity Profile

S$m
20% 1.00
0.90
0.80
15% 0.70
0.60
0.50
10% 0.40
0.30
0.20
5% 0.10
0.00
2008 2009 2010 2011 >2012
0%
FY2008 FY2009 FY2010 FY2011 FY2012
* K-reit has recently completed a 8-for-5 rights issue ro raise
Lease Expiry Rent Review
S$551.7m. Post rights issue 2008 debt would reduce to S$0.6bn.

Other Non Opg (Exp)/Inc 0 0 (28) (28) to sales (%)
Net Income 8 13 18 28 ROCE (%) 2.0 1.5 0.7 1.1
Tax 0 0 (5) (5) Int. Cover (x) 2.7 2.5 1.0 1.6
Total Return 8 445 13 23 Operating CFPS (S cts) 8.4 10.5 (3.9) (3.2)
Non-tax deductible Items 3 9 35 35 Free CFPS (S cts) (63.3) 11.3 (3.5) (2.8)
NAV per shr (S cts) 190.1 319.9 219.8 222.4

DPU (S cts) 4.6 8.8 7.4 8.8
Revenue Gth (%) N/A 67.9 19.4 22.8
Net Inc Gth (%) N/A 49.7 5.9 72.9
Page 59
Corporate Profile
Macquarie MEAG Prime REIT
Bloomberg: MMP SP | Reuters: MMPR.SI
BUY S$1.20 FSSTI: 3,228.95 MMP is an attractive undervalued play with its retail properties
located in prime Orchard Road. We expect MMP to benefit
from Government’s push to remake Orchard Road area as a
Description premier tourist draw in Singapore
MMP invests primarily in income producing retail assets The opening of ION Orchard will further enhance the product
located in the Asia Pacific Region. Its portfolio consists of 10 offerings along the Orchard Road belt, sustaining the capital
assets with a total combined appraised value ofS$2.2bn as values for its 2 prime assets. In the near term, catalysts for re-
at 31 Dec 07. Among these, it prides itself to have two rating could come from (i) Toshin rent review that should kick
distinctive local icons Wisma Atria and Nee Ann City in its
in from June 2008, (ii) outcome of its strategic review that is
portfolio.
expected to be concluded by Nov 2008.
Manager & Strategy We have a BUY rating and DCF-based S$1.63 target price.
MMP’s manager is MacquarieStar Prime REIT Management
Ltd, jointly held by Macquarie Bank (50%), Investmeore
(25%) and MEAG (25%). The manager aims to optimize
yields for unitholders through prudent capital management
and strategic and opportunistic acquisitions to grow its asset
base.
PRICE PERFORMANCE
S$ (x)
1.6 1.2
Ceiling 5%
1.5
1.1
1.4
1.3 1.0
M id 6%
1.2
0.9
1.1 MMP
1.0 Flo o r 7% 0.8
0.9 0.7
0.8
0.6
0.7
0.6 0.5
Sep-05 M ar-06 Sep-06 M ar-07 Sep-07 M ar-08 Sep-08 Sep-05 M ar-06 Sep-06 M ar-07 Sep-07 M ar-08
(x) (%)
2.1
8.0
1.9
7.0
1.7
6.0
1.5
1.3 5.0
1.1 4.0
0.9 3.0
0.7
2.0
0.5
Sep-05 Feb-06 Jul-06 Dec-06 M ay-07 Oct-07 1.0
MMP FSSTI Index FSTRE Real Estate 0.0

Sep-05 Jan-06 M ay-06 Sep-06 Jan-07 M ay-07 Sep-07 Jan-08
Sources: Company, Bloomberg, DBS Vickers M M P Yield M A S 10 yr Go vt B o nd
Page 60
www.dbsvickers.com
Corporate Profile
Macquarie MEAG Prime REIT
EARNINGS DATA
S$ m % NLA Valuation S$'m Val psf % Portfolio
140 80 1
Wisma Atria 227,631 901.5 3,960 41%
120 79 Nee Ann City 2 397,008 1030.9 2,597 47%
78 Terzo Roppongi 16,005 42.1 2,630 2%
100
Secondo Harajuku 2,253 6.3 2,796 0%
77
80 Holon L. Aoyoma 4,865 21.8 4,481 1%
76 Primo Roppongi 5,069 16.9 3,334 1%
60
75 Nakameguro 3,528 7.4 2,098 0%
40 Daikanyama 8,087 25.3 3,128 1%
74
Ebisu Fort 27,917 79.6 2,851 4%
20 73 Chengdu 101,000 76.8 760 3%
0 72 793,363 2,208.6
1
06 07A 08F 09F : represents 74.23% of total share value fo the strata lots in WA
Gro ss Revenues LHS NP I M argin RHS
Retail component: 128,718 sqf, Office: 98,913 sqf
2
: represents 27.23% of total share value fo the strata lots in NAC.
Retail component: 256,022, Office 140,986
DPU Performance ( since listing) Exposure by Asset and Country ( NLA)

S cts
China
9.0
13%
8.0
Office
7.0 30%
Japan
9%
6.0
5.0
4.0
3.0
2.0 Retail
70%
1.0 Singapore
0.0
78%
05 06 07A 08F 09F
Portfolio Lease Expiry Debt Maturity Profile

S$ m
50.0% 45.4% 450
38.8% 400
40.0%
350
30.0%
23.0% 24% 22.5% 300
20.0% 15.7% 14% 16% 250
200
10.0%
150
0.0% 100
FY08 FY09 FY10 FY11
50
by Gross Rent By NLA 0

2008 2009 2010 2011 >2012

Net Income 46 41 64 67 ROCE (%) 4.4 3.3 3.5 3.6
Tax 0 (3) 0 0 Int. Cover (x) 4.6 4.0 4.7 4.9
Non-tax deductible Items 8 21 7 8 Free CFPS (S cts) 7.0 (11.0) 3.9 6.6
NAV per shr (S cts) 115.7 160.1 158.9 157.6

DPU (S cts) 5.8 6.2 7.4 7.7
Revenue Gth (%) 256.5 14.6 14.9 3.3
Net Inc Gth (%) 201.5 (17.6) 67.8 3.7
Page 61
Corporate Profile
MapleTree Logistics Trust
Bloomberg: MLT SP | Reuters: MAPL.SI
BUY S$1.03 FSSTI: 3,228.95 MLT is one of the larger industrial REITs in Singapore by
portfolio size. Led by an experienced management team and a
strong sponsor backing, MLT’s strong Pan-Asian exposure gives
Description investors the opportunity to ride the growth in the Asian
MLT invests primarily in income producing industrial and logistics sector.
business space that are located in Asia Pacific Region. Its Looking ahead, MLT expects to benefit from (i) optimizing
portfolio consists of 70 assets with a combined appraised yields through rental reversions for the remaining 124k sqm of
value of S$2.4bn as at 31 Dec 07. NLA between 2Q08 – 4Q08, (ii) additional income from
completion of another eight asset acquisitions throughout
Manager & Strategy
FY08F for a total consideration of S$291m. With gearing of
MLT’s manager is Mapletree Logistics Trust Management
60.9%, and a limited S$329m debt headroom, may prove to
Limited, a 100% subsidiary of its sponsor Mapletree
Investment. The investment strategy of the manager is to be a drag on share price in the near term.
invest in a diverse portfolio of good quality logistics We maintain BUY on MLT with DCF-backed target price of
properties in the Asian Region. S$1.51. P/BV valuation of 1.1x is on the lower end of the peer
group range of 0.8-1.5x. However, a re-rating of the stock
Sponsor could be triggered if it de-gears its balance sheet.
Mapletree Investments Pte Ltd is the Sponsor of the trust. It
has granted first right of refusal to MLT over its future sales
of logistics properties and will support MLT by warehousing
assets with good growth potential for possible future
acquisition.
PRICE PERFORMANCE
Historical Yield Band Price/BV
S$
(x)
2.1
Ceiling 1.2
1.9
1.1
1.7
1.5 M id 5.5% 1.0
1.3 0.9
1.1 M LT Flo o r 0.8
0.9 0.7
0.7
0.6
0.5
0.5
0.3
Sep-05 M ar-06 Sep-06 M ar-07 Sep-07 M ar-08
Jul-05 Mar-06 Nov-06 Jul-07 Mar-08 Nov-08
(x) (%)
2.5
8.0
2.0 7.0
6.0
1.5
5.0
1.0 4.0
3.0
0.5
2.0
1.0
0.0
Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 0.0
Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08
M LT FSSTI Index FSTRE Real Estate
M LT M A S 10 yr Go vt B o nd
Page 62
www.dbsvickers.com
Corporate Profile
Mapletree Logistics Trust
EARNINGS DATA
Gross Revenues vs NPI Margin Portfolio Details (Top 10 properties by Value)
S$ m % Valuation
250 100
% revnue NLA S$'m Val psf Location
200 TIC Tech Centre 4.80% 330,956 65.9 199 Singapore
90
Pulau Sebarok 4.80% 5,492,464 99 18 Singapore
150 Jurong Logistics Hub 10.40% 1,340,814 186 139 Singapore
80
Shatin 2 3.3% 280,040 86.4 309 HK
100
Shantin 3 3.2% 261,963 84.7 323 HK
70 Shatin 4 9.1% 647,913 205.7 317 HK
50
Grandtech Centre 4.6% 508,991 162.1 318 HK
0 60 Tsuen Wan 1 2.1% 183,931 52.2 284 HK
05 06 07 08F 09F
Kyoto Centre 2.8% 242,208 105.9 437 Japan
Gro ss Revenues LHS NP I M argins RHS
Zama Centre 3.2% 443,000 135.8 307 Japan
DPU Performance ( since listing) Asset Class by Country / Trade Sector
S cts Oil & Chemical
9.0 Wareho using
Lo gistics
Japan 4% FTZ 3 P L
8.0 14%
13% 5%
7.0 China
6.0 4%
5.0 Distributio n Ctre

22%
4.0 Singapore
Hong Kong 53%
3.0 25% No n-FTZ 3P L
49%
2.0
Fo o d & Co ld Sto rage
1.0 6%
Malaysia
0.0 5%
06 07 08F 09F

S $m
45%
700
39%
40%
600
35%
30% 500
25% 400
21%
20%
16%
300
15%
9% 200
10% 8% 7%
5% 100
0%
0
FY08 FY09 FY10 FY11 FY12 > FY12
FY0 8 FY0 9 FY1 0 FY1 1 FY1 2

Other Non Opg (Exp)/Inc (18) (4) 0 0 to sales (%)
Net Income 23 72 93 99 ROCE (%) 3.5 4.7 5.3 5.4
Tax (11) (15) (8) (8) Int. Cover (x) 3.3 3.3 2.9 2.8
Non-tax deductible Items (28) (111) 0 1 Free CFPS (S cts) (77.7) (67.6) (21.8) 8.2
NAV per shr (S cts) 73.1 94.1 94.0 94.0

DPU (S cts) 5.1 6.6 7.7 8.2
Revenue Gth (%) 183.6 76.3 30.6 7.5
Net Inc Gth (%) (4.8) 354.9 50.4 6.3
Page 63
Corporate Profile
Parkway Life REIT
Bloomberg: PREIT SP | Reuters: PWLR.SI
PREIT is a defensive play, allowing investors to enjoy potential

BUY S$1.26 FSSTI: 3,228.95 upside from Singapore and Asia’s healthcare sector while
limiting downside with minimum guaranteed rental growth
structure pegged to 1% above the preceding year’s CPI.
Description The other strategy to PREIT’s growth is expansion via
Parkway Life REIT owns or invests in hospitals or healthcare acquisitions. This had started with the recent purchase of a
related properties through ownership of SPVs. As at Dec 07, pharmaceutical products distribution facility in Japan for
its portfolio consists of Mt Elizabeth hospital, Gleneagles
S$35m. The group has obtained a BBB+ credit rating, which
hospital and Eastshore hospital in Singapore.
would enable them to gear up to 60% vs the present 4%.
Based on a targeted gearing of 45%, this gives them a debt
Manager & Strategy
PREIT is managed by Parkway Trust Management Ltd. The headroom of $1.1b.
manager is expected to formulate and execute PREIT’s Prospects for PREIT remain positive with supportive industry
investment strategy, including determining the geography fundamentals ranging from an aging population, increasing life
and asset type of PREIT’s portfolio. expectancy, growing affluence and Singapore’s drive to
promote medical tourism. Downside is protected by a rental
Sponsor structure that is pegged to adjusted hospital revenue. PREIT is
Parkway Holdings is one of Asia’s premier, fully integrated
healthcare providers. It has one of the largest network of trading at 5.2 -5.4% FY08 and FY09 yield. Our price target of
hospitals and healthcare services in the region with 15 $1.50 offers a potential upside of 19%.
hospitals in Singapore, Brunei, India and Malaysia. It also has
an ambulatory surgical center in China and an aesthetics
clinic in Vietnam.
PRICE PERFORMANCE
S$
1.40 Ceiling 5% (%)
1.35 0.94
1.30 0.92
M id pt 5.5%
1.25 0.9
1.20 0.88
P REITT Flo o r 6%
1.15 0.86
1.10
0.84
1.05
0.82
1.00
0.8
A ug-07 No v-07 Feb-08 M ay-08 A ug-08 No v-08
A ug-07 Oct-07 Dec-07 Feb-08 A pr-08
(x)
%
1.2 7.0
6.0
1.1
5.0
4.0
1.0
3.0
2.0
0.9
1.0
0.0
0.8
Aug-07 Oct-07 Dec-07 Feb-08 Apr-08
Au g -07 Oct -07 Dec-07 Feb -08 Ap r -08
PREIT FSSTI FSTRE
PREIT M As 10 year Govt Bo nd
Page 64
www.dbsvickers.com
Corporate Profile
Parkway Life REIT
EARNINGS DATA
S$ m No of
60 96% Operational Valuatio Valuation/
50
Property Hospital Beds n (S$m) bed (S$m)
95% Mt Elizabeth Hospital 339 400.1 1.18
40
Medical centres 30 171.6 5.7
30 94%
Gleneagles Hospital 280 200.5 0.72
20
Medical centres 10 24.8 2.48
93%
10 Eastshore Hospital and 154 34.5 4.46
0 92% Medical centres 28 - -
07A 08F 09F
Gro ss Revenue LHS NP I M argins RHS
DPU Performance ( since listing) Rent Contribution by Property

S cts Eastshore
8.0 5%
Gleneagles
7.0 32%
6.0
5.0
4.0
3.0
2.0
1.0
Mt Elizabeth
0.0 63%
07A 08F 09F
Parkway’s Singapore Hospital Revenue Growth Debt Maturity Profile

S$m S$ m
40
35
30
25
20
15
10
5
0
2008 2009 2010 2011 >2012

FY Dec 2007A 2008F 2009F FY Dec 2007A 2008F 2009F
Gross revenue 17 48 51 Net Prop Inc Margins (%) 93.6 94.3 94.6
Property expenses (1) (3) (3) Net Income Margins (%) 75.1 80.9 79.3
Net Property Income 16 45 48 Dist to revenue (%) 80.7 83.6 81.5
Other Operating expenses (2) (6) (6) Managers & Trustee’s fees 13.1 12.0 11.9
Other Non Opg (Exp)/Inc 0 0 0 to sales (%)
Net Interest (Exp)/Inc (1) (1) (2) ROAE (%) 1.5 4.7 4.9
Exceptional Gain/(Loss) 0 0 0 ROA (%) 1.5 4.4 4.5
Net Income 13 38 40 ROCE (%) 1.6 4.6 4.8
Tax 0 0 0 Int. Cover (x) 15.0 57.1 24.3
Minority Interest 0 0 0 Current Ratio (x) 0.7 0.3 0.3
Preference Dividend 0 0 0 Quick ratio (x) 0.7 0.3 0.3
Net Income After Tax 13 38 40 Aggregate Leverage (%) 4.0 7.9 7.9
Total Return 69 38 40 Operating CFPS (S cts) 2.3 6.4 6.7
Non-tax deductible Items (55) 1 1 Free CFPS (S cts) (79.0) 1.0 6.7
Net Inc available for Dist. 14 40 41
NAV per shr (S cts) 136.3 135.9 135.5

DPU (S cts) 2.3 6.6 6.8
Distribution Yield (%) 1.8 5.2 5.4
Revenue Gth (%) N/A 181.1 6.6
N Property Inc Gth (%) N/A 183.5 6.9
Net Inc Gth (%) N/A 202.6 4.5
Page 65
Corporate Profile
Suntec REIT
Bloomberg: SUN SP | Reuters: SUNT.SI
BUY S$1.61 FSSTI: 3,228.95 Suntec REIT offers investors exposure to the local office and retail
scene through its portfolio of 1.9msf NLA of retail and
Price Target : 12 month S$1.98
commercial space.
Description
Suntec REIT invests primarily in income producing DPU growth over the next 2 years are expected to be derived
commercial and retail real estate assets. Its initial portfolio from office lease reversions as well as higher retail rents post its
consists of the retail and office portion of Suntec City AEI at Suntec City. The group is scheduled to renew an
located along the CBD. Since its listing, Suntec has added 3 estimated 53% of NLA over FY09-10 and the significant spreads
more assets to its portfolio, bringing its combined appraised between new and expiring contracts will provide strong earnings
value to S$5.7bn as at 31st Dec 07. uplift. In addition, plans to enhance Park Mall and add a further
67,000sf GFA (from the purchase of adjacent two state land
Manager & Strategy sites) could provide another earnings growth driver in the
Suntec REIT is managed by ARA Asset Management Limited, medium term. Refinancing concerns are largely allayed with the
a listed firm on the SGX and an affiliate of Cheung Kong recent $270m CB issue (with greenshoe option). The remaining
Group. The manager aims to grow and deliver stable $400m short-term debt to be refinanced by Oct 08, are also
distributions through active asset management to maximize being progressively addressed.
property yields and to source for accretive acquisition
opportunities, leveraging on the good relationship it has We have a BUY rating on Suntec REIT with a target price of
established with Cheung Kong. S$1.98.
PRICE PERFORMANCE
(x)
S$
1.2
2.5 Ceiling 4%
2.3 1.1
2.1
M id 5% 1.0
1.9
1.7 0.9
SUN
1.5 0.8
1.3
0.7
1.1 Flo o r 6.5%
0.9 0.6
0.7 0.5
0.5
0.4
Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08
Dec-05 A pr-06 A ug-06 Dec-06 A pr-07 A ug-07 Dec-07
(x)
3.0 (%)
8.0
2.5
7.0
2.0 6.0
1.5
5.0
4.0
1.0
3.0
0.5 2.0
1.0
0.0
0.0
Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08
Suntec FSSTI Index FTSRE Real Estate Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08
Suntec REIT M A S 10 year Go vt B o nd

Page 66
www.dbsvickers.com
Corporate Profile
Suntec REIT
EARNINGS DATA
Gross Revenues vs NPI Margin Portfolio Details (Top 10 properties by Value)
S$m
300
%
76
Valuation Val %
76
NLA S$'m psf Portfolio
250
75 Suntec City 2,070,854 4,118 1,989 75%
200 75 ORQ 445,192 942 2,115 17%
74
150 Park Mall 270,191 313 1,157 6%
74
100 73 Chijmes 79,977 139 1,738 3%
73 2,866,214 5,511
50
72
0 72
05 06 07 08F 09F
Gross Revenues LHS NPI Margin RHS
DPU Performance ( since listing) Top 5 Tenant – Office / Retail

S cts
12.0 20.00%
15.00%
10.0
15.00%
8.0 10.00%
6.0 10.00%
4.0 5.00%
5.00%
2.0
0.0 0.00% 0.00%

05 06 07 08F 09F UBS IDA Lehman Brothers Oracle Corp Yahoo Carefour Rock RSH Suntec Food & Lei Garden
Leisure

S$ m
50%
800
Office Retail 700

40%
600
30% 500
400
20% 300
200
10%
100
0
0%
FY08 FY09 FY10 FY11 > FY12
FY08 FY09 FY10 FY11 FY12>

FY Sep 2006A 2007A 2008F 2009F FY Sep 2006A 2007A 2008F 2009F
Net Income 79 88 127 148 ROCE (%) 4.0 3.1 3.1 3.2
Tax 0 0 0 0 Int. Cover (x) 3.6 3.6 3.9 4.4
Total Return 645 1,379 127 148 Operating CFPS (S cts) 12.4 8.8 7.4 8.0
Non-tax deductible Items 16 28 23 24 Free CFPS (S cts) 10.3 10.2 (60.2) 8.0
NAV per shr (S cts) 166.1 252.5 246.9 234.1
DPU (S cts) 7.3 8.1 9.0 9.8
Revenue Gth (%) 60.1 11.1 26.7 12.4
Net Inc Gth (%) 39.7 10.7 44.7 16.7
Page 67
Industry Focus
Page 68
Industry Focus
Hong Kong
Page 69
Corporate Profile
Champion REIT
Bloomberg: 2778 HK | Reuters: 2778.HK
BUY HK$3.97 HSI : 25,610 Champion is a beneficiary of rising office rents. In FY07, an
estimated 50% of its leases was marked to market. Average
Price Target: 12-month HK$5.19 passing rents surged 74% from Jan 07 to HK67.06psf in Dec 07.
Description Champion’s proposed acquisition of Langham Place Mall, Office

Champion REIT is a single-asset REIT with direct exposure to Tower and Carpark in Mongkok from Great Eagle for HK$12.5b
the buoyant office market in Central. It owns 1.21m sf of is viewed positively. Not only will it reduce the former’s reliance
gross rental area of Citibank Plaza, a Grade A office building on Citibank Plaza for income and tenant diversity, it will also
in Central .
allow Champion to gain exposure to the thriving retail sector. In
th
addition to gaining size to become the 6 largest REIT,
Manager & Strategy
Champion will remove financial engineering from its income
The REIT is managed by Eagle Asset Management (CP)
structure, which should facilitate its future new acquisitions in
Limited, a wholly owned subsidiary of Great Eagle Group.
The manager aims to grow and deliver stable distributions HK and Asia.
through active asset management to maximize property
yields and to source for accretive acquisition opportunities, The stock is currently trading at 0.5x P/BV and offers an 8.6%
leveraging on the good relationship it has established with FY08 yield. Our DDM-based price target of HK$5.19, translates
its sponsor. to a 31% upside.
Sponsor
Great Eagle develops, invests in and manages office, retail,
residential and hotel properties in Hong Kong, North
America and Europe. Its key assets include nine hotels (Hong
Kong and overseas), Langham Place in Mongkok and 48.5%
stake in Champion REIT.
PRICE PERFORMANCE
(x)
HK$ 0.8
8.5
0.75
0.7
6.5 Ceiling 5%
0.65
M id 7 %
0.6
4.5
Champio n
Flo o r 9%
0.55
0.5
M ay-06 O c t-06 M ar-07 A ug-07 Jan-08
2.5
May-06 Oct-06 Mar-07 Aug-07 Jan-08 Jun-08 Nov-08
(x)
1.20 10%
1.15
1.10 8%
1.05
1.00 6%
0.95
0.90
4%
0.85
0.80
2%
0.75
0.70
0%
May-06 Oct-06 Mar-07 Aug-07 Jan-08
Champion HSI Index
Champion HK 30 year govt bond
Page 70
www.dbsvickers.com
Corporate Profile
Champion REIT
EARNINGS DATA
HK$m Asset Value GRA (sf) Value (HK$psf)
1400 86
1200 84 Total 1.213 msf

1000 82
1.17msf (office),
Citibank Plaza HK$ 28.3bn 43000sf (retail) 23366
800 80
600 78
400 76
200 74
0 72
2006 2007 2008f 2009f
Revenue NPI margin
(HK$) (%)
DPU Performance ( since listing) Debt Maturity Profile

HK$
HK$m
0.4 9,000
0.3
7,000
0.2
5,000
0.1
3,000
0
FY06 FY07 FY08F FY09F
1,000
Sources: Company, DBS Vickers 2008 2009 2010
Statement of Total Return (HK$ m) Rates & Ratio

Gross revenue 340 839 1,171 1,308 Net Prop Inc Margins (%) 76.8 81.1 83.9 84.2
Net Property Income 261 680 983 1,101 Dist to revenue (%) 75.7 79.8 73.8 69.5
Exceptional Gain/(Loss) 827 3,696 0 0 ROA (%) 2.8 11.7 1.3 1.5
Net Income 882 3,931 476 561 ROCE (%) 0.9 2.0 2.7 2.8
Tax (156) (693) (63) (95) Int. Cover (x) 1.3 1.7 2.3 2.4
Net Income After Tax 726 3,238 412 466 Aggregate Leverage (%) 31.4 26.8 25.3 24.9
Total Return 726 3,238 412 466 Operating CFPS (HK cts) 8.2 17.3 30.5 32.0
Non-tax deductible Items (469) (2,568) 453 443 Free CFPS (HK cts) (407.2) (6.0) 30.7 32.3
NAV per shr (HK$) 6.03 6.98 7.34 7.41

DPU (HK$) 0.20 0.34 0.34 0.32
Revenue Gth (%) N/A 147.1 39.6 11.6
Net Inc Gth (%) N/A 346.1 (87.3) 13.0
Page 71
Corporate Profile
Fortune REIT
Bloomberg: FRT SP | Reuters: FORT.SI
BUY HK$4.98 HSI : 25,610 Fortune REIT enjoyed a healthy rental reversion of 13.9% upon
lease renewal in 1Q08. However, due to more down time
Price Target: 12-month HK$6.83
incurred in association with progressive repositioning of tenant
Description mix at The Metropolis Mall and Jubilee Court Shopping Mall,
Fortune REIT has an initial portfolio of five suburban net property income fell marginally by1.8% y-o-y in 1Q08.
shopping malls in Hong Kong when it was listed in Portfolio occupancy stood at 90.7% at Mar 08 but committed
Singapore in August 2003. In June 2005, it acquired six occupancy reached 94.2%
retail properties for HK$3.4bn, doubling its asset size.
Currently, its eleven suburban malls has total rentable area Fortune REIT completed the second phase of asset
of 1.7m sf with appraised valuation of HK$9.7bn at Dec 07. enhancement works at The Waldorf Garden property in Mar
08, with strong leasing commitment. Over 90% of enhanced
Manager & Strategy area has been committed with new rents about 60% higher
The REIT is managed by ARA Asset Management than the previous ones. Fortune REIT also plans new asset
(Singapore) Limited, a a member of Singapore-listed ARA enhancement initiatives at City One Shatin property and
Asset Management.The manager aims to provide stable Smartland to optimize rental returns.
distributions with long-term growth potential through
implementing asset management strategies, making yield- Fortune offers high distribution yield of 7.2% and 37% to its
accretive acquisition opportunities and optimizing capital price target of HK$6.83. Maintain Buy
structure.
Sponsor
Cheung Kong (CK) is one of the largest developers in Hong
Kong and holds 49.9% stake in Hutchison Whampoa (HW).
CK holds investment properties, including shopping malls,
directly or indirectly through HW.
PRICE PERFORMANCE
HK$ (x)
8 1.9
Ceilin g 5% 1.8
1.7
7
1.6
1.5
Mid 5%
6 1.4
Fo r t u n e 1.3
5 Flo o r 7% 1.2
1.1
1
4 Aug-05 Dec-05 Apr-06 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07
Jan-04 Jun-04 Nov-04 Apr-05 Sep-05 Feb-06 Jul-06 Dec-06 May-07 Oct-07
4.0 (x)
3.5
3.0 7.0%
2.5
6.0%
2.0
1.5 5.0%
1.0
4.0%
0.5
0.0 3.0%
Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08
2.0%
Jan-04 Jun-04 Nov-04 Apr-05 Sep-05 Feb-06 Jul-06 Dec-06 May-07 Oct-07
Fortune Reit HSI Fortune REIT HKD 30 year Soverign Bond
Page 72
www.dbsvickers.com
Corporate Profile
Fortune REIT
EARNINGS DATA
Valuation
HKD'm %
720 74% NLA sqf HK$'m Val per sqf % portfolio
700 74% Cityone Shatin Property 414,469 3,450 8,324 36%

Ma On Shan Plaza 310,084 1,900 6,127 20%
680 73%
The Metropolis Mall 332,168 1,830 5,509 19%
660 73%
Waldorf Garden Property 80,842 768 9,500 8%
640 72%
Smartland 123,544 434 3,513 4%
620 72% Jubilee Court Shopping Centre 170,616 322 1,887 3%
600 71% Tsing Yi Square Property 78,836 323 4,097 3%
580 71% The Household Center 91,779 326 3,552 3%
560 70% Centre de Laguna Property 43,000 188 4,372 2%

2006A 2007A 2008F 2009F
Lido Garden Property 9,836 110 11,183 1%
Rhine Garden Property 14,604 62 4,245 1%
Gross Revenues LHS Net Property Margins RHS
1,669,778 9,713
DPU Performance ( since listing) Portfolio by Asset Type

HK$ Food & Beverages 27%
37
Services & Education 26%
36 Banking & Real Estate 14%
35
Supermarkets 9%
Fashion & Shoes 6%
34
Gits & Specialty Shops 4%
33
Others 14%
32
FY04 F Y05 FY06 F Y07 FY08F F Y09F

40% HK$m
50 0
35%
30%
40 0
25%
20% 30 0
15%
20 0
10%
5%
10 0
0%
FY2008 FY2009 FY2010 FY2011
0
20 08 2009 20 10 20 11
Statement of Total Return (HK$m) Rates & Ratio

Other Operating expenses 0 0 0 0 Managers & Trustee’s fees 6.5 6.8 6.8 6.6
Other Non Opg (Exp)/Inc (49) (42) (45) (46) to sales (%)
Net Income 998 764 327 349 ROCE (%) 4.5 4.2 3.7 3.8
Tax (59) (60) (64) (68) Int. Cover (x) 4.1 4.0 4.3 4.4
Total Return 939 704 263 281 Operating CFPS (HK cts) 53.7 54.7 56.9 60.0
Non-tax deductible Items (663) (419) 31 14 Free CFPS (HK cts) 51.1 48.3 49.4 52.0
NAV per shr (HK$) 8.56 9.01 9.39 9.82

DPU (HK$) 0.34 0.35 0.36 0.36
Revenue Gth (%) 35.6 0.1 4.8 7.9
Net Inc Gth (%) (17.1) (25.1) (62.7) 6.9
Page 73
Corporate Profile
Prosperity REIT
Bloomberg: 808 HK | Reuters: 0808.HK
BUY HK1.59 HSI : 25,610 Prosperity REIT’s net property income grew 15.1% to
HK$193m in FY07, thanks to positive rental reversion and
Price Target: 12-month HK$1.80
effective cost control. The rental reversion averaged 18.2%,
Description with average effective unit rents rising 11.7% y-o-y to
Prosperity REIT is the first private sector REIT listed on the HK$13.38psf. Cost-to-revenue ratio improved to 21.2% from
Stock Exchange of Hong Kong (SEHK) in December 2005. It FY06’s 22.8%. But net property income growth was partially
owns seven office, industrial/office and industrial properties offset by higher cash finance cost due to its interest rate
throughout Hong Kong, totalling 1.22m sf of gross rental swap’s step-up structure. Overall, Prosperity REIT’s distribution
area. income grew 9.4% y-o-y to HK$166m.
Manager & Strategy Portfolio occupancy edged up to 98.4% in Dec 07 from 97%
The REIT is managed by ARA Asset Management (Prosperity) in Jun 07. At end Dec 07, Prosperity REIT’s gearing stood at
Limited, a member of Singapore-listed ARA Asset 33.4%.
Management. The manager aims to provide stable
distributions with long-term growth potential through Our DDM-based target price stands at HK$1.80, which
implementing asset management strategies, making yield- suggests a total return of 22%. Hence we re-iterate our BUY
accretive acquisition opportunities and optimizing capital recommendation on the counter.
structure.
Sponsor
Cheung Kong (CK) is one of the largest developers in Hong
Kong and holds 49.9% stake in Hutchison Whampoa (HW).
CK holds office and industrial properties for rental purpose
directly or indirectly through HW.
PRICE PERFORMANCE
HK$
8.5 (x)
0.8
0.75
6.5 Ceiling 5%
0.7
M id 7 % 0.65
4.5 0.6
Champio n
Flo o r 9%
0.55
2.5 0.5
May-06 Oct-06 Mar-07 Aug-07 Jan-08 Jun-08 Nov-08 May-06 Oct-06 Mar-07 Aug-07 Jan-08
(x)
1.20 10%
1.15
1.10 8%
1.05
1.00 6%
0.95
0.90 4%
0.85
0.80
2%
0.75
0.70
0%
Champion HSI Index
Champion HK 30 year govt bond
Page 74
www.dbsvickers.com
Corporate Profile
Prosperity REIT
EARNINGS DATA
Valuation Value
300 (HK$m) 80
Property GRA (sf) (HK$m) (HK$psf)
250 Metropolis Tower 271418 1970 7258
79
200
Prosperity Millenia Plaza 217955 1080 4955
Harbourfront Landmark 77021 350 4544
150 78
Modern Warehouse 240000 609 2538
100 Trendy Centre 173764 568 3269
77
50 Prosperity Centre 149253 482 3229
New Treasure 86168 166 1926
0 76
2006 2007 2008f 2009f
Revenue (HK$m) LHS NPI margin (%) RHS
DPU Performance ( since listing) Debt Maturity Profile

HK$ 2000 HK$m
0.14
1600
0.13
1200
800
0.12
400
0.11
06 07 08F 09F 0
2008 2009 2010 >2010
Source: Company, DBS Vickers
Statement of Total Return (HK m) Rates & Ratio

Net Income 368 381 101 108 ROCE (%) 2.4 2.8 2.8 2.8
Tax (57) (54) (19) (23) Int. Cover (x) 1.7 1.8 2.6 2.7
Total Return 311 327 82 85 Operating CFPS (HK cts) 12.4 14.4 15.1 15.5
Non-tax deductible Items (159) (161) 89 74 Free CFPS (HK cts) 16.1 12.1 15.1 15.5
NAV per shr (HK$) 2.35 2.46 2.33 2.36

DPU (HK$) 0.12 0.13 0.13 0.12
Revenue Gth (%) N/A 12.7 5.0 3.9
Net Inc Gth (%) N/A 5.3 (74.9) 3.4
Page 75
Industry Focus
Page 76
Industry Focus
Thailand
Page 77
Corporate Profile
CPN Retail Growth Property Fund
Bloomberg: CPNRF TB | Reuters: CPMRF.BK
BUY Bt10.5 SET: 848.71 CPNRF offers an attractive value proposition with a generous
dividend yield of 8.0%. Our target price of Bt12 offers a
Price Target : 12-month Bt12
potential upside of 14.3%
Description
CPN Retail Growth Property Fund invests in retail assets As the largest listed property fund, CPNRF is likely to be a key
located in Thailand. beneficiary of the proposed relaxation in rules for property
funds.
Fund Manager
The REIT is managed by TMB Asset Management Company Plans to acquire Central Plaza Pinklao from parent CPN, earlier
Limited. The manager aims to grow and deliver stable postponed, are now back on track after the BOT recently lifted
distributions through active asset management to maximize the 30% capital control. The Fund is considering three
yields and the fund NAV. investment alternatives to acquire (i) Central Pinklao, (ii)
Central Pinklao + Central Chiangmai, and (iii) Central Pinklao +
Property Manager Central Chiangmai + Central Phuket (owned by Central Group,
Central Pattana Public Company Limited ("CPN") has not CPN). Final conclusion has yet to be reached, probably
experienced over 25 years of success in developing and soon and assets are to be injected into the fund by 3Q08.
managing its properties and is one of the largest and most
sophisticated retail property developers in Thailand. We also like CPNRF for its organic growth angle coming from
rental reversions. In addition to rising rents, asset enhancement
activities implemented at Central Rama 2 and Central Rama 3
should expand leasable area and improve rates.
PRICE PERFORMANCE
Bt (x)
15
Mid 6%
1.20
14
13 1.10
12 Mid 7%
1.00
11
10
CPNRF
0.90
9 Flo o r 9%
0.80
8
Aug-05 Dec-05 Apr-06 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07 Apr-08 Aug-08 Dec-08 0.70
Au g -05No v-05 Feb -06May-06Au g -06 No v -06 Feb -07 May-07Au g -07No v -07 Feb -08
(x)
1.4 10%
1.3 8%
1.2
6%
1.1
4%
1
2%
0.9
0%
0.8 Aug-05 Dec-05 Apr-06 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07 Apr-08
Aug-05 Jan-06 Jun-06 Nov-06 Apr-07 Sep-07 Feb-08
CPN Retail Grow th PF Thailand Bond rate

CPNRF SET Index
Page 78
www.dbsvickers.com
Corporate Profile
CPN Retail Growth Property Fund
EARNINGS DATA
1400 (Btm) 92%
Valuation (TH NLA(sf) Value (THBpsf) Occupancy
1200
1002720 5932
1000 Central Rama II 5,939 (93155sm) (63754/sm) 99%
90%
800
422099 11613
600 Central Plaza
4,902 (39214sm) (125002/sm) 92%
88% Ratchada-Rama III
400
200
0 86%
05 06 07 08f 09f
Revenue (Btm) NPI Margins
Prortfolio Lease Expiry Portfolio by Trade Sector

Others Dept Store
35% 16% 20%
30%
25%
20% Entertainment
16%
15% Electronics, IT
16%
10%
Food & Beverage
5%
11%
0% Fashion
Vacant
2008 2009 2010 20011-2024 2025 18%
3%
Rama II Rama III Portfolio
Statement of Total Return (Bt m) Rates & Ratio

Gross revenue 1,120 1,186 1,261 1,301 Net Prop Inc Margins (%) 88.5 88.4 91.1 91.1
Net Property Income 992 1,048 1,149 1,185 Dist to revenue (%) 76.1 75.7 72.3 72.4
Interest and Other Income 81 85 3 3 Managers & Trustee’s fees
Fund Manager Fees & (21) (21) (27) (27) to sales (%) 15.5 15.8 15.3 15.1
Property Manager's Fees (153) (166) (166) (170) ROAE (%) 7.3 7.7 8.3 8.5
Amortization Expenses (49) (49) (28) 0 ROA (%) 7.3 7.6 8.0 8.4
Net Investment Income 850 897 931 991 ROCE (%) 7.7 8.0 8.3 8.8
Asset revaluation loss 55 61 0 0 Int. Cover (x) Cash Cash Cash Cash
Net Income 905 958 931 991 Current Ratio (x) 1.8 1.9 1.8 1.9
Asset revaluation loss 55 61 0 0 Quick ratio (x) 1.8 1.9 1.8 1.9
Distributable Income 899 946 959 991 Operating CFPS (S cts) 0.9 0.9 0.8 0.9
Dividend pay-out ratio 95% 95% 95% 95% Free CFPS (S cts) 0.6 0.8 0.8 0.9
Dividends 853 898 911 942
NAV per shr (Bt) 10.18 10.25 10.27 10.32

DPU (Bt) 0.78 0.82 0.84 0.86
Revenue Gth (%) n.m. 5.88 6.31 3.13
N Property Inc Gth (%) n.m. 5.65 9.61 3.15
Net Invest. Inc Gth (%) n.m. 5.52 3.78 6.49
Page 79
Corporate Profile
Samui Airport Property Fund
Bloomberg: SPF TB | Reuters: SPF.BK
SPF is a value play, trading at a 23% discount to its NAV of

BUY Bt9.05 SET: 848.71 THB11.83 and offers an attractive dividend yield of 9.9%. Our
Price Target : 12-month Bt11.83 DCF-backed price target of THB11.83, premised on a
conservative 8% hike in passenger volume growth in FY08,
Description offers potential upside of 31%.
Samui Airport Property Fund (SPF) is a Thailand Property
Fund for Public Offering (PFPO - similar to REIT). It was set Prospects for SPF have improved given the additional flights
up in late Nov 2006 with an initial fund size of Bt9.5bn to from Thai Airways International and better tourism outlook.
acquire 30-year leasehold rights to Samui Airport. Thai Airways started its twice-daily service to Samui Airport
since 15 Feb 2008, which boosted passenger and flight traffic
Manager & Strategy sharply. 1Q08 passenger number growth came in at an
The REIT is managed by SCI Asset Management. The impressive 11.4% yoy compare to a 1.3% decline for the
manager aims to grow and deliver stable distributions whole of 2007.
through active asset management to maximize yields and to
source for accretive acquisition opportunities. The key risk is a drop in domestic and international tourists in
Thailand and on Samui Island. SPF’s revenue is dependent on
the number of departing passengers from and flights to Samui
Airport. If the actual number differs from our assumptions,
SPF’s yield may be affected. But note that SPF has a guarantee
of minimum revenue of 6% of the Fund size from Bangkok
Airways, the Property Manager. This suggests an estimated
guaranteed dividend yield at about 6% at current price, given
that all airport maintenance and operating expenses are borne
by Bangkok Airways, and SPF has to pay only fund
administration expenses amounting to Bt30-40m annually.
PRICE PERFORMANCE
Bt (x)
10.5 1.1
Ce i li n g 9%
1
10
0.9
9.5
M id 10% 0.8
9
SPF 0.7
8.5 0.6
Flo o r 11%
8 0.5
No v -06 Fe b -07 M ay -07 Au g -07 No v -07 Fe b -08
Nov-06 Feb-07 May-07 Aug-07 Nov-07 Feb-08 May-08 Aug-08 Nov-08
(x)
1.4
12%
1.3
10%
1.2
8%
1.1
6%
1
4%
0.9
2%
0.8
0%
Nov-06 Feb-07 May-07 Aug-07 Nov-07 Feb-08
Nov-06 Feb-07 May-07 Aug-07 Nov-07 Feb-08
Samui Airport Property Fund SET Index
SPF Thai Govt Fund
Page 80
www.dbsvickers.com
Corporate Profile
Samui Airport Property Fund
EARNINGS DATA
Assets:
THB'm
1000 91%
Leased Assets I) The Leased Land, 719,935 sqm
900 91%
800 ii) 45 x 2,060 meter runway
90%
700
90% iii) Parking Apron ( 2 125 x 150m)
600
500 89% iv) Passenger terminals (1,939sqm)
400 89% v) New terminals (U/C) size 7,905 sqm
300
200
88% Bangkok Airways Company Limited
100 88% Lessor (for 30 yrs ending Nov 2036)
0 87% Bangkok Airways Company Limited
FY06 FY07 FY08F FY09F (for 3 yrs, with an option to renew for
Sub lessee 9 terms of 3 years each)
Gross Revenues NI Margin
Investment in properties 10960THBm
DPU Performance ( since listing) SPF: Monthly Passenger Number and YoY Growth
THB 81,000 16%
1
0.9 78,000 14%
0.8 75,000 12%
0.7
72,000 10%
0.6
69,000 8%
0.5
0.4 66,000 6%
0.3 63,000 4%
0.2 60,000 2%
0.1
57,000 0%
0
Jan Feb Mar
FY06 FY07 FY08F FY09F
2008 2007 y-o-y (RHS)
Statement of Total Return (Bt m) Rates & Ratio

Turnover 81 828 884 927 Net Invest Inc Margins (%) 88.7 88.5 89.3 90.8
Interest income 1 9 9 10 Dist to revenue (%) 0.0 104.8 95.6 95.7
Total revenue 82 837 893 937 Managers & Trustee's fees 4.4 1.0 1.1 1.0
Fund's admin expenses (4) (38) (39) (40) to sales (%)
Amortization expense (6) (66) (65) (55) ROAE (%) 0.7 6.5 7.3 8.1
Total expenses (10) (104) (104) (96) ROA (%) 0.7 6.5 7.2 8.0
Net investment income 72 733 789 841 ROCE (%) 0.7 6.5 7.3 8.1
Asset revaluation loss (2) 1,661 (378) (378) Int. Cover (x) Cash Cash Cash Cash
Net income 69 2,394 411 463 Current Ratio (x) 1.55 3.43 4.21 4.62
Amortization expense 6 66 65 55 Quick ratio (x) 1.55 3.43 4.21 4.62
Asset revaluation loss 2 (1,661) 378 378 Operating CFPS (Bt) 0% 0% 0% 0%
Distributable income 78 799 854 897 Free CFPS (Bt) (9.80) 0.74 0.90 0.95
Div. Payout 0% 110% 100% 100%
Distribution 0 877 854 897
NAV per shr (Bt) 10.07 11.86 11.43 10.98

DPU (Bt) 0.00 0.92* 0.90 0.94
Revenue Gth (%) n.m. n.m. 6.70 4.97
Net Invest Inc Gth (%) n.m. n.m. 7.59 6.68
* For the period of 22 Nov 2006 – 31 Dec 2007

Page 81
Industry Focus
Page 82
Industry Focus
Malaysia
Page 83
Corporate Profile
Axis REIT
Bloomberg: AXRB MK | Reuters: AXSR.KL
BUY RM1.77 KLCI : 1,287.15 Axis REIT offers the twin growth story of organic and
acquisition expansion. As an independent REIT, Axis has
Target Price: 12-month RM2.60 demonstrated an impressive track record for yield accretive
acquisitions. Purchase of 7 properties in 2007 at net yields of
Description
Axis REIT invests primarily in income producing office and 6.3% vs cost of debt of 4-5% will enhance earnings from
industrial real estate assets located in Malaysia. Its portfolio FY08.
consists of 14 properties with a total appraised value of RM
570m as at 31 Dec 07. Acquisition growth remains strong with properties such as
Wisma Academy, Proton Logistic Centre and Toyota Logistic
Manager & Strategy Centre. With a gearing of 48% vs the limit of 50%, it has
Axis REIT is managed by Axis Managers Berhad. The sufficient debt headroom for new purchases. In addition,
manager aims to grow and deliver stable distributions organic growth potentials could arise from enhancements of
through active asset management to maximize property Menara Axis, Crystal Plaza and Infinite Centre.
yields and to source for accretive acquisition opportunities.
Our DCF-backed price target of RM2.60 translates to an upside
of 47% from current price levels. Potential catalysts could
come in the form of rising rental income, asset enhancement
plans and new acquisitions.
PRICE PERFORMANCE
RM (x)
2.4 1.9
2.3 1.8
2.2 Ceilin g 6% 1.7
2.1 1.6
2 1.5
Mid 7 %
1.9 1.4
1.8 Axis 1.3
1.7 1.2
1.6 Flo o r 8% 1.1
1.5 1
1.4 Aug-05 Dec-05 Apr-06 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07
Aug-05 Dec-05 Apr-06 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07 Apr-08 Aug-08 Dec-08
(x) 9.0%
2.10
1.90 8.0%
1.70 7.0%
1.50 6.0%
1.30 5.0%
1.10
4.0%
0.90
3.0%
0.70 Aug-05 Dec-05 Apr-06 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07 Apr-08
Aug-05 Dec-05 Apr-06 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07 Apr-08
Axis REIT Malaysian Bond Yield
Axis REIT KLSE Index KLPROP Index
Page 84
www.dbsvickers.com
Corporate Profile
Axis REIT
EARNINGS DATA
Appraised Value (RM'm) NLA (sf) Value (RMpsf) Occupancy
60 RM 'm 85%
Menara Axis 87.7 147686 593.8 100%
Crystal Plaza 82.8 203376 407.1 100%
50
Nestle House 41 106000 386.8 100%
40 FCI 13.9 136619 101.7 100%
Axis Plaza 30.7 118765 258.5 82%
30 80% Axis Business Park 97.8 341065 286.7 98%
Infinite Centre 35.2 147408 238.8 100%
20 Wisma Kemajuan 45.9 200117 229.4 66%
Kayanqan Depot 21.8 163769 133.1 69%
10
Wisma Bintang (C&C) 36 172967 208.1 100%
0 75% Nestel Office & WH (Shah Alam) 7.5 27554 272.2 100%
Axis Shag Alam Distribution Centre 1 18.5 110591 167.3 100%
FY05 FY06 FY07 FY08F FY09F Axis North Port Logistics Center 1 13.6 130000 104.6 100%
Giant Hypermarket (Sungei Petani) 38 138000 275.4 100%
Gross Revenues LHS NPI Margins RHS 570.4
DPU Performance ( since listing) Portfolio by Asset Type

RM sen
16 Light Industrial
14 Warehouse/ 6%
Logistics
12
11%
10
Warehouse Retail
8
Facilities
6 6% Office/ Industrial
4 55%
2
Office
0
22%
F Y05 FY06 FY07 F Y08F FY09F

40%
RM ’ m
35% 200
30%
150
25%
20%
100
15%
10%
50
5%
0%
0
FY2008 FY2009 FY2010 FY2011
FY08 > FY08
Statement of Total Return (RM m) Rates & Ratio

Net Interest (Exp)/Inc (3) 1 0 0 ROAE (%) 15.0 8.7 9.5 9.6
Net Income 43 30 36 37 ROCE (%) 8.5 7.5 9.4 9.7
Tax 0 (1) 0 0 Int. Cover (x) 9.6 6.1 96.8 107.4
Total Return 0 0 0 0 Operating CFPS (sen) 14.3 11.2 14.1 14.4
Non-tax deductible Items (16) (1) (2) (2) Free CFPS (sen) (13.1) 10.9 14.1 17.5
NAV per shr (sen) 142.8 147.5 148.0 148.5

DPU (sen) 13.0 11.0 13.5 13.8
Revenue Gth (%) 197.7 2.0 31.0 1.9
Net Inc Gth (%) 328.8 (31.7) 22.0 2.2
Source: Company; DBS Vickers
Page 85
Industry Focus
Page 86
Industry Focus
ECONOMIC FORECASTS
GDP Inflation Forecast
GDP 2005 2006 2007 2008f 2009f Inflation 2005 2006 2007 2008f 2009f
US 3.2 3.3 2.2 2.0 2.6 US 3.2 3.2 2.9 3.5 2.3
Japan 1.9 2.4 2.0 1.5 2.1 Japan -0.3 0.2 0.1 0.8 0.2
Eurozone 1.6 2.9 2.6 2.0 2.2 Eurozone 2.2 2.2 2.1 2.8 2.1
Indonesia 5.7 5.5 6.3 6.3 6.5 Indonesia 10.5 13.3 6.3 10.0 7.0
Malaysia 5.0 5.9 6.3 5.8 6.0 Malaysia 3.1 3.6 2.0 2.8 2.0
Philippines 4.9 5.4 7.3 6.6 6.7 Philippines 7.7 6.3 2.8 5.9 3.1
Singapore 6.9 7.9 7.7 6.0 6.8 Singapore 0.5 1.0 2.1 5.0 2.8
Thailand 4.5 5.1 4.8 5.6 5.2 Thailand 4.5 4.6 2.2 5.0 2.8
China 10.4 11.1 11.5 10.0 9.0 China 1.8 1.5 4.8 5.5 4.5
Hong Kong 7.1 6.8 6.3 5.2 4.7 Hong Kong 1.0 2.0 2.0 3.8 4.0
Taiwan 4.2 4.9 5.7 5.0 5.4 Taiwan 2.3 0.6 1.8 2.5 2.4
Korea 4.2 5.0 4.9 4.6 5.0 Korea 2.8 2.2 2.5 3.7 3.0
India 9.0 9.9 8.7 8.6 8.6 India 4.4 5.4 4.3 6.5 4.9
Interest rates Current 2Q08f 3Q08f 4Q08f 1Q09f USD X rates Current 2Q08f 3Q08f 4Q08f 1Q09f
US 2.0 1.75 1.75 1.75 2.25 US - - - - -
Japan 0.5 0.5 0.5 0.5 0.75 Japan 104.7 105.0 100.0 95.0 98.0
Eurozone 4.0 4.0 4.0 4.0 4.0 Eurozone 1.55 1.48 1.50 1.54 1.50
Indonesia 8.25 8.5 8.75 8.75 8.75 Indonesia 9242 9300 9000 8700 9000
Malaysia 3.5 3.5 3.5 3.5 3.5 Malaysia 3.23 3.25 3.15 3.00 3.15
Philippines 5.0 5.0 5.0 5.0 5.0 Philippines 42.8 42.5 41.0 39.0 41.0
Singapore na na na na na Singapore 1.37 1.39 1.36 1.33 1.36
Thailand 3.25 3.25 3.25 3.75 4.0 Thailand 32.3 33.0 32.0 30.0 31.0
China 7.5 7.7 8.0 8.0 8.0 China 6.99 6.90 6.70 6.50 6.30
Hong Kong na na na na na Hong Kong 7.80 7.80 7.78 7.75 7.78
Taiwan 3.5 3.6 3.6 3.6 3.6 Taiwan 30.9 31.0 30.5 29.5 30.5
Korea 5.0 5.0 4.75 4.5 4.5 Korea 1047.0 1050.0 1100.0 1075.0 1075.0
India 7.75 8.0 8.25 8.25 8.25 India 42.2 41.5 40.5 39.5 40.5
Global Property Market Trends

Luxury Residential Rents Luxury Residential Capital Values
US$psf/mth % chg qoq % chg yoy US$psf/mth % chg % chg Yield (%)
qoq yoy
New York Na Na Na New York Na Na Na 5.0
London 7.67 Na -5.0 London 2299.6 -5.0 30.0 4.0
Sydney Na Na Na Sydney Na Na Na 6.0
Hong Kong 5.0 5.0 18.0 Hong Kong 1942.3 8.0 25.0 3.0
Tokyo Na Na Na Tokyo Na Na Na Na
Shanghai 2.7 -1.0 -2.0 Shanghai 427.5 2.0 14.0 8.0
Beijing 1.3 -2.0 -11.0 Beijing 267.0 8.0 33.0 6.0
Kuala Lumpur 1.1 0.0 3.0 Kuala Lumpur 174.3 0.0 10.0 8.0
Singapore 4.2 7.0 38.0 Singapore 1902.2 6.0 53.0 3.0
Bangkok 0.9 -2.0 -8.0 Bangkok 225.4 0.0 -1.0 5.0
Prime Office Rents Prime Office Capital Values

US$psf/mth % chg qoq % chg yoy US$psf/mth % chg % chg Yield (%)
qoq yoy
New York 38.2 3.0 15.0 New York 10186.7 -2.0 35.0 5.0
London 23.0 8.0 30.0 London 5520.0 -5.0 30.0 5.0
Sydney 4.9 7.8 13.6 Sydney 946.1 9.0 23.0 6.0
Hong Kong 12.3 9.1 31.7 Hong Kong 1907.6 19.0 40.0 8.0
Tokyo 15.0 7.7 20.8 Tokyo 3338.3 2.0 28.0 5.0
Shanghai 3.2 5.0 14.3 Shanghai 507.3 5.0 20.0 8.0
Beijing 3.0 4.8 8.8 Beijing 279.6 2.0 6.0 13.0
Kuala Lumpur 1.5 3.7 12.0 Kuala Lumpur 185.3 1.0 6.0 10.0
Singapore 9.3 8.0 80.0 Singapore 2005.9 0.0 71.0 6.0
Bangkok 2.0 0.0 -0.5 Bangkok 247.5 0.0 2.0 10.0
Source CBRE, JLL, DBSV estimates
Page 87
Industry Focus
Pasir Gudang Industrial Area, which is about 35km away from

APPENDIX Johor Bahru city centre. In Apr 08, Axis REIT proposed to
acquire two freehold industrial factories for RM27m. The
REIT NEWS factories are located within the Iskandar Development Region
Singapore and about 5km to the north of Senai town.
Goodman is selling its 40% stake in A-REIT manager as well as
a 6.28% stake in the trust itself for $158.16 million or about Hektar Asset Management Sdn Bhd is keen on more mall
$1.90 per A-REIT unit. (BT – 13 Mar) acquisitions for its Hektar REIT, following the acquisition of a
hotel and a mall in Johor in mid-February.
MMP REIT has refinanced $220 million of ST loans, $190
million of which are due in May and $30 million in August to Thailand
allow its strategic review to proceed with flexibility. (BT – 14 Thailand’s Securities and Exchange Commission (SEC) recently
Mar) agreed in principle to some changes related to the placement,
allocation, and management of property funds for public
Allco REIT has failed in an attempt to prevent Moody’s from offering (PFPO: or REIT) to improve the attractiveness of
downgrading their stock to “Ba2” from “Ba1”. Moody’s rating investing in PFPO in Thailand and at the same time close
cuts was on the back of Allco having S$620m of debt expiring existing legal loopholes. The resolution has not been enforced
in the current year. (BT – 19 Mar) yet. The changes cover 7 key areas of which two most
important are: (i) foreign limit of 49% for freehold properties,
CCT has option to buy One George St at $1.165bn or and (ii) allowable gearing level of 10% of NAV.
$2600psf, based on a guaranteed NPI yield of 4.25%.
The Bank of Thailand (BoT) lifted the unremunerated reserve
Hong Kong requirement (URR) on short-term capital inflows from 3 March
In Jan 08, GZI REIT proposed to acquire 72.3% stake of Yue 2008.
Xiu Neo Metropolis Plaza in Guangzhou from GZI
Following the Bank of Thailand’s decision to lift the 30%
In Feb 08, RREEF China Commercial Trust proposed to seek a capital control, CPN Retail Growth Property Fund (CPNRF) has
general mandate from the unitholders to repurchase units on resumed its plan to acquire Central Pinklao (and probably more
the market assets) from Central Pattana (CPN) in 3Q08.
In Feb 08, Champion REIT proposed to acquire Langham Place UOB Apartment Fund I (UOBAPF) plan to dispose its leasehold
Mall, Office Towers and Carparks in Mongkok from its major interest in Natural Ville Residence, a serviced apartment in Soi
shareholder Great Eagle for HK$12.5bn Langsuan, return the proceeds to unit-holders and dissolve the
fund. It has recently assigned a property consultant to assist in
Malaysia the disposition process. The main reasons for the Fund’s
Sunway City Bhd is on track to list the country’s first integrated decision to dispose the asset are the extremely low trading
resort REIT in 2008 worth RM3.7bn, but is still undecided liquidity on the Stock Exchange of Thailand (SET) and the unit
between listing in Malaysia or Singapore. price (Bt8.20), which is now trading at a deep discount to its
NAV at Bt10.74 as of 31 Mar 2008.
Capitaland aims to launch a new Malaysian retail REIT in 2008.
It has acquired two retail assets in Malaysia - Gurney Plaza in TMB Asset Management (TMBAM) plans to launch the initial
Penang (RM336.8m) and Mines Shopping Fair in Selangor public offering units of Luxury Property Fund (LUXF) from 7-15
(RM190.3m). May 2008. The fund, with an estimated fund size of
Bt1.965bn will invest in “Six Senses Hideaway” project, a
In Jan 08, QCT proposed to acquire three assets for RM94.5m freehold luxury 5-star resort on Koh Yaonoi, Pang-nga
from Quill Land Sdn Bhd - Quill Building 5-IBM (RM43.0m), a province. The fund will guarantee dividend yields for the first
five-storey property located in Cyberjaya; Quill Building 8-DHL five years at 6.0% in year 1, 6.5% in year 2, and 7.0% in year
(RM28.8m), a three-storey property sited at Shah Alam and 3-5, respectively.
Quill Building 10-HSBC (RM22.7m), a four-storey property
located in Section 13, Petaling Jaya.
In Feb 08, AXIS REIT proposed to acquire two leasehold

industrial buildings for RM27m. These buildings are located at
Page 88
Industry Focus
Property News Snippets CIMB Mapletree Management Sdn Bhd, a joint venture
Singapore between CIMB Group and Mapletree, a leading real estate
URA plans to double the size of Singapore's Marina Bay company in Singapore, is targeting to set up RM4.7b to RM5b
financial district to 2.82m sm or 2x the size of London's Canary property fund early 2009.
Wharf financial district. (BT – 13 Mar)
Property developer Petaling Tin Bhd plans to spend some
ARA Asset Management has bought the remaining 53 units at RM1bn to build luxury villas and a boutique hotel on
Grange Infinite freehold condo project for almost $400 million Karambunai Peninsular, 30km east of Kota Kinabalu in Sabah.
or at $2,600-$2,700 psf.
Mar 08 Property developer UEM Land Sdn Bhd is in talks with
SINGAPORE'S retail sales in January rose 7.8% yoy. Retail sales Singapore real estate firms about joint projects in a US$105b
rose just 1.5%, adjusted for inflation. Excluding motor vehicles, (about RM332b) industrial and tourism zone in south Malaysia.
retail sales in January were 15.1% higher. The strongest
increases were seen in sales of petrol, food and beverages, and Thailand
at department stores and supermarkets. (BT – 15 Mar) The Thai cabinet recently agreed with the Ministry of Finance’s
proposed property-related tax cuts to boost the economy.
CWT will invest more than $80m in two new integrated These include (i) reduction in specific business tax from 3.3%
logistics hubs at Tanjong Penjuru with 850000sf of warehouse to 0.1%, (ii) reduction in transfer fees from 2% to 0.01%, (iii)
space for the handling of hazardous and chemical goods. reduction in mortgage registration fees from 1% to 0.1%.
These measures will be effective for one year from 29 Mar
SINGAPORE has risen two notches to become the 12th most 2008 to 28 Mar 2009.
expensive industrial location in the world. Excluding Japan,
Singapore is the most expensive location in Asia, surpassing According to the Bank of Thailand, retail sales index surged
Hong Kong (23rd), Mumbai (26th) and Taipei (36th). Average 12.1% y-o-y in Jan 2008. This is very encouraging considering
net rents are now at $1.70 psf/mth, up 26% yoy last year. the 0.4% and 2.1% growth in 2006 and 2007, respectively.
Total occupancy cost was US$14.64 psf/yr at end-Dec 2007. The strong retail sales reflected the rebounding consumer
confidence after the general election and the new government
URA Property Price Index recorded a 3.7% rise in 1Q08. is in place.
However transaction volumes for new sales fell to 730 units.
With political tension rising again as the three coalition parties
Hong Kong are facing the risks of possible dissolution and constitution
In Feb/Mar 08, the launch of Cheung Kong’s Capitol in Tseung amendment under way. We believe political development is
Kwan O was well received with all of 2096 units completely what investors need to monitor closely as it will have a
pre-sold within a short period of time substantial impact on consumer and business confidence and
thus the retail sales number.
In May 08, Deutsche Bank agreed to take up 12 floors totaling
420,000sf at SHKP’s Intl Commerce Centre at Kowloon MTR Suzuki Motor Corporation, a leading car manufacturer has
Station and has an option to lease up to 18 floors signed an agreement with Hemaraj Land And Development
Plc., to purchase land of 412 rai at Hemaraj Eastern Seaboard
Industrial enbloc transactions totalled 1.35msf valued at Industrial Estate or the Detroit of the East II. The land will be
HK$1.98b in 1Q08. Notable transactions include Piazza used for the construction of Suzuki’s BOI promoted Eco-car
Industrial Building, sold at HK600m or HK$1470psf and manufacturing and CKD kit assembly plant, scheduled to
Oriental News Building at HK$525m or HK$1684psf. commence operation in 2010. Total value of investment is
Bt9.5bn.
Total value of retail sales in Feb 08 was estimated at HK$22.8b,
up 9.5% yoy. Amata Corporation (AMATA) has recently signed an
agreement to sell 90-rai land at Amata Nakorn Industrial Estate
Trade Square in Cheung Sha Wan was sold for HK1.518b or to Mitsubishi Turbocharger Asia (MTA) for the construction of
HK$4000psf (excluding car park spaces) in Apr 08. its plant to produce turbocharger for the automotive industry.
Malaysia Golden Tulip Hospitality Group, a Swiss-based hotel and resort

In Apr 08, YTL group paid a record RM2,000 per sq ft for a management company, is preparing to invest Bt5.05bn in
piece of land in Jalan Stonor, and indicated that it intends to Thailand as part of its plans to spend about Bt25bn in
make more acquisitions in the Kuala Lumpur city centre. Southeast Asia over the next four years. It hopes to develop 20
hotels in Thailand.
In Mar 08, UOL Group Ltd's freehold luxurious condominium
project, Panorama, has seen a take-up rate of 60%.
Page 89
Industry Focus
Regional REIT Guidelines

Singapore Hong Kong Malaysia Thailand
History Started in July 2002. Real estate investment trust Started in Dec 2005. Real estate Started in Aug 2005. Real estate Started in Sep 2003. Open ended property fund structure
structure investment trust structure investment trust structure
No of REITs/Property Funds 20 7 11 18
Asset Types Retail, Office, Industrial, Hotel, Healthcare, Svcd Retail, Office, Industrial, Hotel Retail, Office, Industrial, Hotel, Airport, Svcd Apartments, Retail, Residential, Lifestyle,
Apartments, Residential Healthcare, Plantations Industrial, Hotel, Commercial, Dormitory
Regulations on Assets
Geographic Restrictions Nil Nil Nil Local assets only
Investment Restrictions Min 70% in real estate Partial ownership of assets must >50% Min 75% in real estate Min 75% in real estate
in general
Investment in Property 10% of deposited property value Investment in uncompleted units Prohibited Prohibited, unless 80% completed
Development and In- limited to 10% of NAV, prohibited
development Assets from investing in vacant land or
engaging in property development
Asset Valuations At least once a year At least once a year At least once every 3 yrs Reviewed once a year, Revalued once every 2 years
Asset Holding Period Nil 2-yr holding period Nil 1-yr holding period
REIT Management
Structure Externally managed Externally and internally managed Externally managed Externally managed
Manager licensing Nil Yes Yes Fund Manager – Yes
requirement Property Manager - No
REIT Structure
Gearing Max 60% of asset value (with credit rating) Max 45% of asset value Max 50% of asset value No gearing allowed currently. (likely to be relaxed soon, with
35% (without credit rating) max gearing at 10% of NAV)
Dividend Payout Ratio At least 90% At least 90% of after tax income At least 90% At least 90%
Foreign Ownership No restrictions No restrictions No restrictions No restrictions currently. (likely to impose 49% foreign
ownership restriction for property funds investing in freehold
assets)
Taxation
Stamp duty Stamp duty for transfer of properties waived for Transfer of properties subject to stamp Stamp duty for transfer of Stamp duty for transfer of properties waived
5 years from 2002 duty properties waived
REIT Taxation Full tax transparency Profit tax on property companies Full tax transparency Full tax transparency
Unitholder taxation Local and foreign individuals – tax exempt Nil Tax residents taxed at individual Non-residents exempt from Thai withholding income taxes on
Local institutions/corporates – corporate tax rate tax level. Non-residents subject to dividends and capital gains
Non-resident institutional investors – 10% withholding tax of 26% Dividends are subject to 10% withholding income tax for
withholding tax for 5 years from 2002 residents, no tax on capital gains
M&A Guideline
M&A activities Singapore Code of Mergers & takeovers Nil Nil One third holding limit for any person(s) of the same group,
extended to REITs from June 2007. Anyone who except for the following persons:
acquires 30% or more of a REIT must make a - the Govt Pension Fund, Social Security Fund,
general offer for the remaining units. Anyone Provident Fund or Mutual Fund for retail investors
who owns 30-50% of a REIT and acquires a - those persons not subject to corporate income
further 1% must make a GO for the remaining tax eg Government Savings Bank, Stock
units. Exchange, Charities or Temples
- Any other person with a waiver granted by the
SEC as necessary and appropriate
Source: DBSV
Page 90
Industry Focus
Regional REIT Fee Structure

REIT Manager Manager Fee Structure Trustee fee Property Mgmt Acquisition Divestment Manager
Name Ownership Base (% of Performance (% of prop fee Fee (% of prop Fee (% of prop Termination
prop value) value) value) value) Clause
Allco 3% of property
revenue, min $36k pa, $20m payable by
Allco Singapore Allco Finance 3.5% of net real estate fee of 0.2% of unitholders if
0.5% 1% 0.5%
Ltd Group (100%) income fee less base fee acquisition price, fee of removed within 5
0.01% of divestment years of listing
price
A-India Project mgmt fee - 2%
construction cost,
Ascendas Property Ascendas Land property mgmt fee -
Fund Trustee Pte International Pte 0.5% 4% of NPI 0.02% 2% of mthly gross 1% 0.5%
Ltd Ltd (100%) revenue, lease mgmt
fee 1mth-2% of lease
value
A-REIT 0.03% of
0.1% of property value (if deposited
Ascendas Funds Ascendas annual DPU growth > property value, 2% of gross rev, 1% of
Management (S) Investments Pte 0.5% 2.5% yoy), additional up to a max of gross rev for lease 1% 0.5%
Ltd Ltd (100%) 0.1% of value (if DPU 0.25% of management service
growth> 5% yoy) deposited
property value
ART 4% of share of GP. If GP
growth >6%, additional 2-3% of gross revenue
Ascott Residence outperformance fee of plus incentive
The Ascott
Trust 0.3% 1% of the difference management fee of 5- 1% 0.5%
Group (100%)
Management Ltd between share of that 10% of gross
year's GP and 106% of operating profit
previous year's GP
Cambridge Tier 1 performance fee =
5% of total return of
trust index over
benchmark index x mkt
Cambridge CREIM (60%), 2% of gross revenue
cap of CREIT, Tier 2
Industrial Trust CWT (20%), 0.5% 0.1% and 1% of gross 1% 0.5%
performance fee = 15%
Management Ltd Mitsui (20%) revenue
of the total return of trust
index in excess of the 2%
total return of benchmark
index x mkt cap of CREIT
CCT CapitaCommercial
Capitaland 5.25% of net investment
Trust 0.1% 0.1% 3% of NPI 1% 0.5%
(100%) income
Management Ltd
CMT 2% of gross revenue,
CapitaMall Trust Capitaland 2% of NPI and 0.5%
0.25% 2.85% of gross revenue 0.1% 1% 0.5%
Management Ltd (100%) of NPI in lieu of lease
management fee
Page 91
Industry Focus
Regional REIT Fee Structure (cont’d)

Name Ownership Base (% of Performance (% of prop value) fee Fee (% of prop Fee (% of prop Termination
prop value) value) value) Clause
M&C REIT
Management Ltd,
.25% of
CDL HT M&C Business M&C (100%) 5% of NPI 0.1% 10% of PBT 1% 0.5%
property value
Trust
Management Ltd
Battery Rd Ltd
(10%), Golden
0.4% of
Bowsprit Capital Decade Intl Ltd 0.03% of deposited
First deposited 5% of NPI 1%
Corporation Ltd (10%), LK REIT property value
property value
Management Ltd
(80%)
ARA Asset ARA Asset
0.3% of
Fortune Management Management Ltd 3% of NPI 0.3% 3% of gross property revenue 1%
property value
(Singapore) Ltd (100%)
2% of gross revenue, 2% of NPI
and 0.5% of rental income for
Frasers Frasers 0.3% of lease management, project mgmt
FCT Centrepoint Asset Centrepoint Ltd deposited 5% of NPI 0.1% fee of 3% (construction cost 1%
Management Ltd (100%) property value <$2m), 2% (construction cost
>$2m), 1.5% (construction cost
$20m-$50m)
0.5% of 3% of property income, 0.25-
K-REIT Asia Keppel Land
K-REIT Asia deposited 3% of NPI 0.03% 1mths gross rent for leases <1yr- 1% 0.5%
Management Ltd (100%)
value >2yrs
Mapletree
Capital (40%),
Peninsula
Lippo-Mapletree
Investment, a 0.25% of 2% of gross revenue, 2% of NPI,
Lippo- Indonesia Retail
wholly owned deposited 4% of NPI 0.03% 0.5% of NPI in lieu of leasing 1% 0.5%
Mapletree Trust
indirect property value commission
Management Ltd
subsidiary of PT
Lippo Karawaci
Tbk (60%)
2% of rental income and 1% of
rental income in lieu of lease
Mapletree Mapletree 0.5% of management fee, project
Mapletree
Logistics Trust Investments Pte deposited 3.6% of NPI 0.1% management fee 3% (construction 1% 0.5%
Logistics Trust
Management Ltd Ltd property value cost <$2m), 2% (construction cost
>$2m), 1.5% (construction cost
$20m-$50m)
Page 92
Industry Focus

Name Ownership Base (% of Performance (% of prop fee Fee (% of prop Fee (% of prop Termination
prop value) value) value) value) Clause
2% of rental income and
0.1% of property value if 1% of rental income in lieu
MacarthurCook MacarthurCook DPU growth >2.5% yoy of lease management fee,
0.5% of
MacarthurCook Investment Ltd (92.5%), and an additional 0.1% project management fee 3%
deposited 0.1% 1% 0.5%
Industrial Managers (Asia) United Engineers of deposited property (construction cost <$2m),
property value
Ltd Ltd (7.5%) value if DPU growth > 2% (construction cost
5% yoy >$2m), 1.5% (construction
cost $20m-$50m)
2% of rental income and
1% of rental income in lieu
of lease management fee,
Mapletree Mapletree 0.5% of
Mapletree project management fee 3%
Logistics Trust Investments Pte deposited 3.6% of NPI 0.1% 1% 0.5%
Logistics Trust (construction cost <$2m),
Management Ltd Ltd property value
2% (construction cost
>$2m), 1.5% (construction
cost $20m-$50m)
Tier 1 performance fee =
5% of total return of
trust index over
Pacific Star Payment of $21.7m
benchmark index x mkt
Macquarie Pacific (50%), 0.5% of licensing agreement
cap of MMP, Tier 2
MM Prime Star Prime REIT Macquarie deposited 0.1% 3% of gross revenue 1% 0.5% in the event the
performance fee = 15%
Management Ltd (25%), Ergo property value manager is
of the total return of trust
(25%) terminated
index in excess of the 2%
total return of benchmark
index x mkt cap of MMP
2% of property revenue and
Parkway 0.3% of
Parkway Trust 1% of property revenue in
Parkway Life Holdings Ltd deposited 4.5% of NPI 0.03% 1% 0.5%
Management Ltd lieu of lease management
(100%) property value
fee
0.5% of 0.5% of latest
monthly property asset value
Japan Residential Japan Regional 3% of property net profits
weighted in the event of early
Saizen Assets Manager Assets Manager Nil 0.03% before asset management 1% 0.3%
average of termination of
Ltd Ltd (100%) fee and expenses
property asset manager before 5
value years of listing
2.5% of gross revenue
(<$100m), 3% of additional
ARA Trust ARA Asset 0.3% of
gross revenue (for revenue
Suntec Management Management Ltd deposited 4.5% of NPI 0.25% 1% 0.5%
between $100m and
(Suntec) (100% property value
$130m), 3.5% of additional
revenue (>$130m)
Page 93
Industry Focus

REIT Manager Manager Fee Structure Property Mgmt Trustee fee Acquisition Divestment Manager
Name Ownership Base (% of prop Performance fee (% of prop value) Fee (% of prop Fee (% of prop Termination
value) value) value) Clause
Hong Kong
Champion Eagle Asset Mgmt Great Eagle Hldgs 3% of gross 1% of prop
(CP) Ltd Ltd (100%) 12% of NPI prop. rev. 0.03% of prop. value value 0.5% of prop value
GZI GZI REIT Asset GZI (100%) 0.3% of prop. 3-4% of gross 1% of prop
Management value 3% of NPI prop. Rev 0.03% of prop. value value 0.5% of prop value
Prosperity ARA Asset Mgmt ARA Asset Mgmt 0.4% of prop. 3% of gross 1% of prop
(Prosperity) Ltd Ltd (100%) value 3% of NPI prop. rev. 0.05% of prop. value value 0.5% of prop value
Regal Regal Portfolio Regal (100%) 0.3% of prop. 1% of prop
Management value 3% of NPI 0.015-0.025% of prop. value value 0.5% of prop value
RREEF CCT RREEF China REIT Deutsche Asia
Management Pacific Holdings
(80%); Mr Tin Lik 0.4% of prop. 6% of operating 1% of prop
(20%) value 3% of NPI expenses 0.03% of prop. value value 0.5% of prop value
Henderson Sunlight Henderson Land 0.4% of prop. 3% of gross 1% of prop
Sunlight REIT Asset Management (100%) value 3% of NPI prop. rev. 0.03% of prop. value value 0.5% of prop value
The Link Internally
The Link REIT* Management managed 0.008% of prop. value
Malaysia
Axis Axis REIT Managers Axis Development Max of 1% of None 0.05% of NAV Graduated scale fees 1%
Bhd Sdn Bhd NAV 0.5%
Quill Capita Quill Capita Mgmt Quill Resources 0.4% of GAV 3% of net investment 0.021% 5% (gross rental inc 1% 0.5%
Sdn Bhd Hldgs Sdn Bhd, inc <RM30k, 3% (gross rental
Capitaland RECM inc <RM100k, 2% (gross
Pte Ltd, Coast rental inc >RM100k)
Capital Sdn Bhd
Page 94
Industry Focus

REIT Manager Manager Fee Structure Fund Mgmt Trustee fee Registrar Acquisition Divestment
Name Ownership Base (% of prop Performance fee Fee Fee (% of prop Fee (% of
value) value) property)
Thailand
CPNRF Central Pattana 33% Max 0.3% of Incentive fee - <= Fund manager 0.05% of NAV Registrar fee of 1.5% 0.75%
NAV. Rental 2.35% of net property fee of no more no more than
collection - <= income than 1% of net 0.05% of net
3% of net rental assets assets
and service
income. Leasing
commission (both
new & renewal) -
0.5-1.5 months of
rental fees.
SPF Bangkok Airways 32% Fund Manager Not more than 0.15% of Not more than
fee of 1% of net NAV, min of THB250000pa 0.1% of NAV or
assets, min of THB1.9m
pa
TFUND TICON Industrial 21% Base Fees - 4% of Performance fees 0- Fund manager 0.055% of net assets Registrar fee of
Connection Rental & Service 20% of Net Property fee of 0.15% of (min of Bt30,000 per month) 0.06% of net
Revenue. Leasing Income. net assets assets
commission - 2
months of Rental
& Service Revenue
Page 95
Industry Focus
Page 96
Industry Focus
Research Team Directory

Analyst Sector E-mail
Sanjit Maitra Head, DBS Group Research sanjitmaitra@dbs.com
Regional
Timothy Wong Head, Regional Equity Research timothywongkc@dbsvickers.com
Joanne Goh Regional Equity Strategist Joanne gohsc@dbs.com
Hong Kong / China

Dr Peter So Head of Research, Strategy peter_so@hk.dbsvickers.com
Alice Hui CFA Dy Head of Research, Consumer alice_hui@hk.dbsvickers.com
Gideon Lo CFA Dy Head of Research, Oil & Petrochemicals, gideon_lo@hk.dbsvickers.com
Pharmaceuticals, Shipping
Carol Wu China Properties Carol_wu@hk.dbsvickers.com
Dennis Lam Electronics & Technology dennis_lam@hk.dbsvickers.com
Helen Wang Basic Materials helen_wang@hk.dbsvickers.com
Jasmine Lai Banking & Finance jasmine_lai@hk.dbsvickers.com
Jeff Yau CFA Conglomerates, Property jeff_yau@hk.dbsvickers.com
Johnson Yuen Technical Analysis johnson_yuen@hk.dbsvickers.com
Mavis Hui Media & General Retail mavis_hui@hk.dbsvickers.com
Patricia Yeung Industrials patricia_yeung@hk.dbsvickers.com
Rachel Miu Agricultural, Auto & Machinery Rachel_miu@hk.dbsvickers.com
Steven Liu CFA Software & Telecom steven_liu@hk.dbsvickers.com
Indonesia
Agus Pramono, CFA Strategy, Banking, Consumer , agus.pramono@id.dbsvickers.com
Automotive
Yusuf Ade Winoto, CFA Basic Materials, Oil, Gas & Energy yusuf.winoto id.dbsvickers.com
Andrey Wijaya Consumer, Property andrey.wijaya@id.dbsvickes.com
Devianita Tjandera Generalist devianita@id.dbsvickers.com
Ong Boon Leong, CFA Telecommunications boonleong@hwangdbsvickers.com.my
Malaysia
Wong Ming Tek Head of Research, Strategy mingtek@hwangdbsvickers.com.my
Construction, Concessionaires
Goh Yin Foo CFA Retail/ Technical Product yinfoo@hwangdbsvickers.com.my
Lim Sue Lin Banking suelin@hwangdbsvickers.com.my
Ong Boon Leong CFA Motor, Telecommunications, Technology Services boonleong@hwangdbsvickers.com.my
June Ng Power, Oil & Gas, Conglomerates, REITs june@hwangdbsvickers.com.my
Ben Santoso Plantation bensantoso@dbsvickers.com
Azida Nor Azizi Steel azida@hwangdbsvickers.com.my
Kok Chiew Sia Consumer, IPO/ Retail Product chiewsia@hwangdbsvickers.com.my
Juliana Ramli Shipping, Logistic, Manufacturing, Plantation juliana@hwangdbsvickers.com.my
Iman Zaman Manufacturing iman@hwangdbsvickers.com.my
Singapore
Janice Chua Head of Research, Strategy, Industrials janicechua@dbsvickers.com
Jesvinder Sandhu Dy Head of Research, Industrials jesvinder@dbsvickers.com
Chong Wee Lee, CFA Industrials weelee@dbsvickers.com
Lock Mun Yee Property munyee@dbsvickers.com
Jeremy Thia Industrials, Property jeremythia@dbsvickers.com
Paul Yong, CFA Consumer paulyong@dbsvickers.com
Andy Sim, CFA Consumer andysim@dbsvickers.com
Tan Ai Teng Electronics aiteng@dbsvickers.com
Ho Pei Hwa Electronics peihwa@dbsvickers.com
Sachin Mittal Electronics, Telecom sachin@dbsvickers.com
Ben Santoso Plantations bensantoso@dbsvickers.com
Yeo Kee Yan Trader Spectrum keeyan@dbsvickers.com
Ling Lee Keng Trader Spectrum leekeng@dbsvickers.com
Thailand
Chanpen Sirithanarattanakul Head of Research chanpens@th.dbsvickers.com
Property, Transportation
Chirasit Vuttigrai Telecoms, Entertainment chirasitv@th.dbsvickers.com
Vichitr Kuladejkhuna CFA Building Materials, Energy (Oil& Gas), vichitrk@th.dbsvickers.com
Petrochemicals, Chemicals, Energy (electricity)
Sugittra Kongkhajornkidsuk Banks, Securities sugittrak@th.dbsvickers.com
Parin Kitchatornpitak Automotive, Commerce, Electronics parink@th.dbsvickers.com
Page 97
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 (0-15% total return over the next 12 months for small caps, 0-10% 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
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The research is based on information obtained from sources believed to be reliable, but we do not make any representation or warranty as to its
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Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation and the particular
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The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies
and their securities expressed in this report accurately reflect his/her personal views. The analyst also certifies that no part of his/her
compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report. As of 14 May
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of 14 May 2008.
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4. Compensation for investment banking services:

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Page 98
Industry Focus
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Page 99
Industry Focus
Asian Equities Sales, Sales Trading and Research Contacts
Sales Heads Tel: Email:
Singapore Chai Szue Yin 65-6398 7319 szueyin@dbsvickers.com

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New York Robert Koh 1-212-826 3553 robertkoh@us.dbsvickers.com
Thailand Tasamol Witayanukusl 662-657 7000 tasamolweth@th.dbsvickers.com
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Sales Trading Contacts Tel: Email:
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New York Liew Shao Hoong +1 212 826 3550 shaohoong@us.dbsvickers.com
Research Contacts Tel: Email:
Regional Timothy Wong 65-6398 7952 timothywongkc@dbsvickers.com

Singapore Janice Chua 65-6398 7954 janicechua@dbsvickers.com
Hong Kong Dr Peter So 852-2820 4619 peter_so@hk.dbsvickers.com
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Thailand Chanpen Sirithanarattanakul 662-657 7824 chanpens@th.dbsvickers.com
Indonesia Agus Pramono 6221-3983 2668 agus.pramono@id.dbsvickers.com
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Industry Focus

Shopping for REITs

Relative attraction of Singapore over HK: The better

Lock Mun Yee (65) 6398-7972

Jeff Yau (852) 2820-4912 Regional Summary 3

MICA (P) NO.031/10/2007

Retail, retail 2.0%

expansion through acquisitions. Firstly, retail rents are still low

Global REIT Performance YTD

Regional REIT Relative Performance Regional Property Relative Performance

Source: Bloomberg, DBS Vickers

Breakdown of Global REIT Market Cap by Region

Source: Bloomberg, DBS Vickers

REGIONAL YIELD COMPARISONS

Yields of Regional REITs

REIT Yield By Sector and Region

T-reit HK-reit M-reit S-reit

Regional P/BV Comparison

REIT VALUATION SCREEN

* Bloomberg consensus * Price target includes new acquisitions

Ranking by DCF-based Target Price Upside Ranking by P/BV

* Price target includes new acquisitions

Ranking by ROE Ranking by FY08 Gearing (x)

Source: DBS Vickers

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2.5 Floor 7% 1.2

Sources: Company, Bloomberg, DBS Vickers

DPU Performance ( since listing) Asset Class by Valuation

Lease Expiry Profile Debt Maturity Profile

Statement of Total Return (S$ m) Rates & Ratio

NAV per shr (S cts) 190.5 235.5 223.0 222.2

Share Price Performance Key issues

FSSTI vs REITs Index Property vs REITs Index

FSSTI Index Spore Reits Spore Reits Spore Property

Source: Bloomberg, DBS Vickers

* For developers & landlords

Sources: Company, Bloomberg & DBS Vickers

*For developers / landlords & others

Sources: Company, Bloomberg & DBS Vickers

S-REIT Yield Spread S-REIT Yield Trend by sector

S-REIT Yield Trend by sector S-REIT P/BV vs Developers and Landlords

Retail Hospitality Reits Developers Landlords

Implied Cap Rates

Industrial S-REIT Yield Industrial S-REIT P/BV

Office S-REIT Yield Office S-REIT P/BV

Retail S-REIT Yield Retail S-REIT P/BV

Shareholding Structure of REIT Management Company

Total 39.11 12.34 31.6% 2.08 3.81 1.07 2.22 3.62

* K-REIT’s estimated debt position post rights issue

Healthcare and others

Post Listing Equity Fund Raising History

SINGAPORE PROPERTY MARKET OVERVIEW

Office Rental rates vs Capital Values Demand, Supply & Occupancy

Residential Rental rates vs Capital Values Demand, Supply & Occupancy

Retail Rental rates vs Capital Values Demand, Supply & Occupancy

Industrial Rental vs Capital Values Demand, Supply & Occupancy

5 Star Hotel Capital Values (US$/room) Demand, Supply & Occupancy

HSI vs REITs Index Property Index vs REITs Index

HSI Index Reits Reits Property

Source: Bloomberg, DBS Vickers

* For property developers & investors

Source: Company, DBS Vickers