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1Q18 Investor Newsletter CPN Commercial Growth Leasehold Property Fund 14 May 2018

Prepared by Central Pattana Public Company Limited, CPNCG Property Manager

SHARE INFO: As of 30 March 2018 Unit Price (Bt)

14.20

NAV (Btmln) /1

4,681.9

Shares Outstanding (mln)

426.6

NAV per Unit (Bt) /1

10.9741

Market Capital (Btmln)

6,058.2

Premium/ (Discount) /1

29.3%

Note: /1 NAV as of 31 March 2018

Net investment income for 1Q18 increased by 1.0%yoy. CPNCG reported net investment income of Baht 113.9 million, mainly from an increase of 1.8%yoy of rental and service income resulting from an increase of average rental rate (ARR) from renewed and new contracts. The occupancy rate at the end of 1Q18 was 98.9%. Total income increased by 2.6%yoy. Total income was recorded at Baht 156.2 million, increased from Baht 152.2 million. Total expense was Baht 42.3 million, increased by 7.3%yoy. CONTENTS MD&A

1

Financial Summary

4

Operation summary

5

Fund Information

6

Request for additional information should be directed to: Customer Relations – Fund Manager www.scbam.com (66) 2949-1500 CPNCG Investor Relations www.cpncg.com (66) 2667-5555

Distribution per unit increased by 1.7%yoy. CPNCG announced 1Q18 distribution of Baht 104.1 million or Baht 0.2440 per unit, for 1Q18 operation period, which will be distributed on 1 June 2018.

Source: CPNCG. Based on (reviewed/audited) financial statements and reports of Certified Public Accountant of each quarter


CPN Commercial Growth Leasehold Property Fund

1Q18 Investor Newsletter

MANAGEMENT DISCUSSION AND ANALYSIS Statement of Income Total income CPNCG reported total income for 1Q18 of Baht 156.2 million, an increase of 2.6%yoy. This was attributable to 1.8%yoy increase in rental and service income to Baht 152.3 million. Occupancy rate increased slightly to 98.9% from that of the end of 1Q18. Renewed and new contracts for 1Q18 were accounted for 5.1% of total leasable area with average rental rate growth of 3.6%.

Total expense Total expense for 1Q18 was Baht 42.3 million, an increase of 7.3%yoy, mainly due to 24.8%yoy increase in cost of rental and service to Baht 28.0 million, step up parking fee every 5 years. (Remark: more details are presented in CPNCG prospectus, www.cpncg.com)

Net investment income and distribution Net investment income for 1Q18 totaled Baht 113.9 million, up 1.0%yoy. CPNCG announced distribution of Baht 104.1 million or Baht 0.2440 per unit from 1Q18 operation period, equivalent to annualized yield of 6.0% at the unit price of Baht 14.20 per unit as at 30 March 2018. The distribution will be paid on 1 June 2018.

Profitability 1Q18 Net property income margin stood at 75.5%, decreased by 2.0%yoy. Net investment income margin was 73.1%, decreased by 1.7%yoy. This was mainly resulting from an increase of cost of rental and service.

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CPN Commercial Growth Leasehold Property Fund

1Q18 Investor Newsletter

Statement of financial position As of 31 March 2018, CPNCG reported total investment in properties of Baht 4,797.0 million, decreased from Baht 4,846.0 million at the end of 2017, while liabilities decreased to Baht 490.5 million from lower borrowings and other liabilities. Therefore, Net Asset Value (“NAV�) was Baht 4,682.0 million or Baht 10.9741 per unit, a decrease from Baht 11.0819 per unit at the end of 2017. In 1Q18, CPNCG had the net unrealized loss from investment of Baht 55.9 million. As a result, the net increase in net assets from operation of the Fund increased by 206.6%yoy.

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CPN Commercial Growth Leasehold Property Fund

1Q18 Investor Newsletter

FINANCIAL SUMMARY Income Statement Unit: Baht Million

1Q18

4Q17

155.8

Property income Rental and service income Other income Interest income Total income Property expenses Cost of rental and service

155.6

Change QoQ

0.1%

1Q17

151.6

Change YoY

2.8%

152.3

155.5

(2.1%)

149.6

1.8%

3.5

0.1

6108.9%

2.0

74.5%

0.4

0.2

139.7%

0.6

(33.0%)

156.2

155.8

0.3%

152.2

2.6%

38.2

36.3

5.4%

34.8

9.8%

28.0

22.9

22.1%

22.4

24.8%

Selling and administrative expenses

0.4

0.6

(32.6%)

0.5

(25.0%)

Property management fee

9.8

12.8

(23.0%)

11.8

(17.0%)

Other expenses

0.0

0.0

72.6%

0.0

(30.8%)

Interest expense

2.7

2.8

(4.8%)

3.2

(15.1%)

Other management fees and expenses

1.4

1.4

(1.9%)

1.4

(3.9%)

Total expense Net investment income Net realised gain (loss) from changes in investment value

42.3

40.5

4.4%

39.4

7.3%

113.9

115.2

(1.2%)

112.8

1.0%

(0.1)

2125.4%

0.0

n.a

(0.4)

1.5

Net unrealised gain (loss) from changes in investment value

(55.9)

Net increase in net assets from operations Income available for distribution Distribution Distribution per unit (in Baht)

15087.8%

(168.5)

66.8%

59.5

114.8

(48.2%)

(55.8)

206.6%

113.9

115.2

112.8

1.0% n.a 1.7%

0.2400

104.1

105.5

(1.2%) n.a (1.3%)

0.2440

0.2472

(1.3%)

102.4

1.7%

Net property income margin

75.5%

76.7%

(1.6%)

77.0%

(2.0%)

Net investment income margin

73.1%

74.1%

(1.3%)

74.4%

(1.7%)

Source: CPNCG. Based on financial statements and review/audit reports of Certified Public Accountant of each quarter and year

Statement of Financial Position Unit: Baht Million

Investment at fair value

2Q16

5,389.8

3Q16

5,415.1

4Q16

5,310.4

1Q17

5,168.8

2Q17

5,122.5

3Q17

5,128.0

4Q17

5,097.6

1Q18

5,049.1

5,103.0

5,133.0

5,051.0

4,882.0

4,849.0

4,847.0

4,846.0

4,797.0

286.8

282.1

259.4

286.8

273.5

281.0

251.6

252.1

56.0

78.8

104.2

59.2

76.0

80.9

123.3

118.6

Other assets

7.8

7.1

5.1

4.1

9.1

7.5

5.0

4.8

Total assets

5,453.6

5,501.0

5,419.6

5,232.2

5,207.6

5,216.4

5,225.9

5,172.5

Deposits received from customers

183.5

189.2

191.8

183.4

186.9

192.4

193.7

200.1

Borrowing

317.3

310.3

303.4

296.0

288.6

281.2

273.8

266.4

Other liabilities

13.8

24.4

37.0

20.6

25.0

25.2

30.4

24.0

Total liabilities

514.6

523.9

532.2

499.9

500.5

498.8

497.9

490.5

Net asset

4,939.0

4,977.0

4,887.4

4,732.2

4,707.1

4,717.6

4,728.0

4,682.0

Capital received from unitholders

4,394.4

4,394.4

4,394.4

4,394.4

4,394.4

4,394.4

4,394.4

4,394.4

539.7

582.6

493.0

337.8

312.7

323.3

333.6

287.6

11.5649

11.6656

11.4556

11.0918

11.0329

11.0576

11.0819

10.9741

The Offices@CentralWorld Investment in securities Cash on hand and at banks

Retained earnings NAV per unit (in Baht)

Source: CPNCG. Based on financial statements and review/audit reports of Certified Public Accountant for each quarter

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CPN Commercial Growth Leasehold Property Fund

1Q18 Investor Newsletter

OPERATIONS SUMMARY I.

Leasable Area and Occupancy Area (sqm)

The Offices @ CentralWorld CPNCG

Occupancy Rate

Gross Area

Leasable Area

31 Mar 17

30 Jun 17

30 Sep 17

31 Dec 17

31 Mar 18

121,989 121,989

81,400 81,400

99.6% 99.6%

97.6% 97.6%

98.0% 98.0%

98.7% 98.7%

98.9% 98.9%

Source: CPN

II. Renewals and New Leases From 1 September to 31 March 2018/1 Renewals and New Leases The Offices @ CentralWorld CPNCG

No. of Leases 13

Area (sqm.) 4,101

% of Total /2 5.1%

13

4,101

5.1%

Note: /1Exclude rental agreements < 1 year /2 Percentage of leasable area as at 31 March 2018 /3 Exclude rental agreements with revenue sharing clause Source: CPN

III. Lease Expiry Profile

Note: 1. Percentage of total occupied area as at 31 March 2018 2. Exclude rental agreements < 1 year Source: CPN

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CPN Commercial Growth Leasehold Property Fund

1Q18 Investor Newsletter

ABOUT CPNCG I. Fund Information Name

CPN Commercial Growth Leasehold Property Fund (“CPNCG”)

Property Manager

Central Pattana Public Company Limited (“CPN”)

Fund Manager

SCB Asset Management Company Limited

Trustee

Kasikorn Bank Public Company Limited

Registrar

Siam Commercial Bank Public Company Limited

Assets

The Offices at CentralWorld

Type

Property Fund Type I (Indefinite Life)

Total Fund Size

Baht 4,764 million

Fund Registered Date

13 September 2012

Fund Investing Date

14 September 2012 for The Offices at CentralWorld Part 1

(Initial Investment)

21 December 2012 for The Offices at CentralWorld Part 2

Fund Listed Date

21 September 2012

Secondary Market

The Stock Exchange of Thailand (“SET”)

II. Fund Structure

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CPN Commercial Growth Leasehold Property Fund

1Q18 Investor Newsletter

DISCLAIMERS

The information contained in this document is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for units in CPN Commercial Growth Leasehold Property Fund (“CPNCG” and units in CPNCG, “Units”) in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever.

This document may include information which is forward-looking in nature. Forward-looking information involves known and unknown risks, uncertainties and other factors which may impact on the actual outcomes, including economic conditions in the markets in which CPNCG operates and general achievement of CPNCG business forecasts, which will cause the actual results, performance or achievements of CPNCG to differ, perhaps materially, from the results, performance or achievements expressed or implied in this document.

This document has been prepared by the CPNCG Property Manager. The information in this document has not been independently verified. No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions in this document. None of the CPNCG Property Manager or CPNCG Fund Manager or any of its agents or advisers, or any of their respective affiliates, advisers or representatives, shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document.

This document is made, furnished and distributed for information purposes only. No part of this document shall be relied upon directly or indirectly for any investment decision-making or for any other purposes.

This document and all other information, materials or documents provided in connection therewith, shall not, either in whole or in part, be reproduced, redistributed or made available to any other person, save in strict compliance with all applicable laws.

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cpncg newsletter 1q18 en  
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