ascott residence trust · guan cun (beijing) properties under developmentproperties under...

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ASCOTT RESIDENCE TRUST

October 2006

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Disclaimer

IMPORTANT NOTICE

The value of units in ART and the income derived from them may fall as well as rise. Units in ART are not obligations of, deposits in, or guaranteed by the Manager or any of its affiliates. An investment in the units in ART is subject to investment risks, include the possible loss of the principal amount invested. The past performance of ART is not necessarily indicative of its future performance.

This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income, changes in operating expenses, including employee wages, benefits and training, property expenses and governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. Investors are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of the Manager on future events.

Investors have no right to request the Manager to redeem their units in ART while the units in ART are listed. It is intended that unitholders may only deal in their units in ART through trading on the SGX-ST. Listing of the units in ART on the SGX-ST does not guarantee a liquid market for the units in ART.

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Agenda

Introduction

Financial Highlights

Management StrategiesGrowth by AcquisitionActive Asset ManagementCapital and Risk Management

Conclusion

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ART’s Pan-Asian Portfolio

Singapore

China

Indonesia

Japan

The Philippines

Vietnam

Somerset Liang Court,

Singapore

Somerset Liang Court,

Singapore

Somerset Grand Cairnhill,

Singapore

Somerset Grand Cairnhill,

Singapore

Ascott BeijingAscott Beijing Somerset Grand Fortune Garden,

Beijing

Somerset Grand Fortune Garden,

Beijing

Somerset Grand CitraSomerset

Grand Citra Country WoodsCountry Woods

Somerset Roppongi, Tokyo*

Somerset Roppongi, Tokyo*

Somerset Millennium,

Makati

Somerset Millennium,

MakatiSomerset

Salcedo, MakatiSomerset

Salcedo, Makati

Somerset Grand Hanoi

Somerset Grand Hanoi Somerset

Ho Chi Minh CitySomerset

Ho Chi Minh City

Somerset Xu Hui, ShanghaiSomerset Xu Hui, Shanghai

Somerset Olympic Tower,

Tianjin*

Somerset Olympic Tower,

Tianjin*

Ascott JakartaAscott Jakarta

ChinaChina

PhilippinesPhilippines

IndonesiaIndonesia

VietnamVietnam

SingaporeSingapore

S$952million portfolio value (US$600 million)

14 properties2,304 apartment units

JapanJapan

* Recent acquisitions

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Serviced residences — an attractive asset class

Lease Structure & Terms

Lease Structure & Terms

Short-term accommodationHybrid between hotels and apartments/condominiumsVariable lease terms from one week to one year or longer

HotelsHotelsServiced ResidencesServiced Residences

Range of ServicesRange of Services

Full range of hospitality serviceRole and involvement of property manager most intensive

Limited services providedRole and involvement of property manager less intensive compared to hotels

SeasonalitySeasonalitySeasonal nature of hotel industryHighly correlated with the tourism industry

Some seasonality of hospitality industry, though longer lease terms provide certain level of rental support

Cost StructureCost Structure

Less intensive staffingrequirements as only limited services are providedLower maintenance costs as average length of stay is longer

More intensive staffingrequirements due to need to cater complete range of servicesHigh maintenance due to significant wear and tear

Long-term leases

Apartmentsfor Rent

Apartmentsfor Rent

No service provided

Dependent on general property sector conditions

Minimal staff cost and low maintenance costs

4

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Structure of ART

Serviced residence management fees

Management fees Trustee’s fees

Distributions

Ownership of assets Ownership of shares

Serviced residence management fees

Acts on behalf of Unitholders

UnitholdersUnitholders

Manager Manager (Ascott (Ascott

Residence Trust Residence Trust Management Management

Limited)Limited)

Serviced residence management services

Management servicesHolding of units

Net profit Dividends

Serviced residence management services

Each of the overseas properties are held indirectly through property holding companies

ARTART

Singapore Singapore propertiesproperties

Overseas propertiesOverseas properties

Trustee Trustee (for Unitholders)(for Unitholders)

Serviced residence management companies

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Financial Highlights

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Higher Net Distributable Income and DPU Than Forecast

3.14

14.0

3.08

14.3

Distribution (S$million) DPU (cents)

Forecast

Actual

Net Distributable Income and DPU# Exceeded Forecast* by 2%

+ 2 %

For the period 31 March 2006 – 30 September 2006For the period 31 March 2006 – 30 September 2006

# There is no distribution declared for the period from 01 July to 30 September 2006. Distribution declared for the period from 31 March to 30 June was paid on 28 August 2006. ART makes distributions to unitholders on a semi-annual basis, with the amount calculated as at 30 June and 31 December each year for the six-month period ending on each of the said dates.

* The forecast numbers for 2006 are extracted from the forecast which was disclosed in the prospectus and pro-rated to correspond to the period from 31 March to 30 September.

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Distributable Income Exceeded Forecast by S$0.3 million

Statement of Total Return

Public Trust

For the period 31 March 2006 – 30 September 2006For the period 31 March 2006 – 30 September 2006

S$m Actual Forecast Growth (%)

Distribution Per Unit (cents) 3.14 3.08 +2%

Revenue 52.3 52.7 - 1%

Gross Profit 25.2 24.1 +5%

Unitholders’ Distribution 14.3 14.0 +2%

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Double Digit RevPAU Growth in Singapore and the Philippines

135

161

120

84

55

115

164

143130

8270

120

0

50

100

150

200

Singapore China Vietnam Indonesia Philippines Overall

S$/

day

Q3 2005 Q3 2006

+ 21 %

+ 8 %

+ 4 %

+ 27 %

China:- Reconfiguring bigger

apartment units into smaller units to meet growing demand

Indonesia:- Drop in occupancy for Ascott

Jakarta due to massive construction activities surrounding the residence (expected to be completed around mid 2007)

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6.11

6.43

2006F 2007P

Growth in Projected DPU

Commitment to pay out 100% of ART’s taxable income and net overseas income for FY2006 and FY2007 and at least 90% thereafter

Semi-annual distributions, calculated as at 30 June and 31 December each year

Distribution Per Unit* (cents)Distribution Per Unit* (cents)

5.2% growth

* Annualised figures as stated in the Prospectus

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Management Strategies

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Capital and Risk Management

Growth By Acquisition

Active Asset Management

Deliver Stable and Growing Distributions

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Focus on acquisitions in the Pan-Asian region

Acquisition of Ascott’s remaining Pan-Asian portfolio (given right of right refusal)

Acquisition by leveraging on strategic relationship with the CapitaLand Group

Key Acquisition StrategiesKey Acquisition Strategies

Growth by Acquisition

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Focus on acquisitions in the Pan-Asian region

Explore attractive investment opportunities in the Pan-Asian regionFocus on locations where Ascott has an established presence

Tap growth of Asia economies

Leverage on the increasing popularity of serviced residences as an alternative accommodation concept

Increasing trend in business travel into Asia

Increasing preference of corporate executives for home-styled accommodation for extended stays

China

Vietnam

Philippines

Singapore

Indonesia

ThailandJapan

Korea

Malaysia

India

Australia

New Zealand

Countries with existing ART-owned propertiesCountries with investment opportunities


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Recent Investments & Management Contracts by The Ascott Group

Apr 2006Citadines Suzhou XinghaiCitadines Suzhou LejiaCitadines Hong Kong Ashley

Apr 2006Citadines Suzhou XinghaiCitadines Suzhou LejiaCitadines Hong Kong Ashley

May 2006Citadines Bangkok Sukhumvit 11Citadines Bangkok Sukhumvit 8

May 2006Citadines Bangkok Sukhumvit 11Citadines Bangkok Sukhumvit 8

Jul 2006Ascott Singapore Raffles PlaceCitadines Singapore Scotts

Jul 2006Ascott Singapore Raffles PlaceCitadines Singapore Scotts

Jan 2005Ascott GuangzhouJan 2005Ascott Guangzhou

Dec 2005Citadines Bangkok Sukhumvit 16

Dec 2005Citadines Bangkok Sukhumvit 16

Dec 2005Somerset Nusasiri PattayaCitadines Suzhou Emerald City

Dec 2005Somerset Nusasiri PattayaCitadines Suzhou Emerald City

Oct 2005Somerset Grand Sukhumvit, BangkokSomerset Jadaf, Dubai

Oct 2005Somerset Grand Sukhumvit, BangkokSomerset Jadaf, Dubai

Mar 2005Somerset Park Suanplu, Bangkok

Mar 2005Somerset Park Suanplu, Bangkok

Feb 2005Somerset Berlian, Jakarta

Feb 2005Somerset Berlian, Jakarta

Apr 2006Citadines Xi’an CentralAgreement with Addax to manage 15 MENA properties

Apr 2006Citadines Xi’an CentralAgreement with Addax to manage 15 MENA properties

Aug 2006Somerset Zhong Guan Cun, BeijingSomerset Youyi, TianjinMaster development agreement with Rattha Holdings for seven properties in South India – First property Somerset Greenways, Chennai

Aug 2006Somerset Zhong Guan Cun, BeijingSomerset Youyi, TianjinMaster development agreement with Rattha Holdings for seven properties in South India – First property Somerset Greenways, Chennai

Sep 2006MOU to manage Citadines Singapore Mount Sophia

Sep 2006MOU to manage Citadines Singapore Mount Sophia

Mar 2006Sale of 12 properties to ARTMar 2006Sale of 12 properties to ART

May 2006Liang Court Shopping CentreMay 2006Liang Court Shopping Centre

August 2006The Ascott MayfairAugust 2006The Ascott Mayfair

Jan 2006Citadines Bangkok Sukhumvit 23

Jan 2006Citadines Bangkok Sukhumvit 23


Divestment Proceeds Of S$650 million (US$410 million)Divestment Proceeds Of S$650 million (US$410 million)2005 2006

Equity Investment Of More Than S$550 million (US$350 million)Equity Investment Of More Than S$550 million (US$350 million)

Management ContractsManagement Contracts

2005 2006

2005 2006

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Pan-Asian assets owned* by The Ascott Group (1/2)

MalaysiaChina

VietnamAscott Sathorn (Bangkok)

Somerset West Lake (Hanoi)

Somerset Chancellor Court (Ho Chi Minh City)

Thailand

Ascott Pudong (Shanghai) Ascott Kuala Lumpur Somerset Seri Bukit

Ceylon (Kuala Lumpur)Somerset Orchard (Singapore)

SingaporeProperties in operationProperties in operation


* Companies either wholly owned, majority or minority stake

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Pan-Asian assets owned* by The Ascott Group (1/2)

China

Thailand

Ascott Guangzhou

Ascott Singapore Raffles Place

Singapore

Citadines Singapore Scotts

Citadines Bangkok Sukhumvit 16




Somerset Youyi (Tianjin)

Citadines Suzhou Lejia

Citadines Hong Kong Ashley

Citadines Suzhou Xinghai

Somerset Zhong Guan Cun (Beijing)

Properties under developmentProperties under development

* Companies either wholly owned, majority or minority stake

India

Somerset Greenways, Chennai

Ascott owns* about 3,100 Ascott owns* about 3,100 apartment units in 12 citiesapartment units in 12 cities


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Pan-Asian assets managed/ leased* by The Ascott Group

China 1,333 unitsChina 1,333 units

Indonesia 601 unitsIndonesia 601 units

Japan 272 unitsJapan 272 units

Malaysia 124 unitsMalaysia 124 units

Philippines 134 unitsPhilippines 134 units

Singapore 630 unitsSingapore 630 units

South Korea 432 unitsSouth Korea 432 units

Thailand 1,767 unitsThailand 1,767 units

Australia & New Zealand 745 unitsAustralia & New Zealand 745 units

Beijing

Dalian

Guangzhou

Jakarta

Tokyo

Kuala Lumpur

Manila

Singapore

Seoul

Bangkok

Pattaya

Shanghai

Suzhou

Xi’an

Sydney

Melbourne

Hobart

Auckland

* As at 2 October 2006. Excludes ART portfolio, owned assets in Pan-Asian region and assets in Europe and the Gulf region.

Surabaya

Kuching

Ascott manages/ leases about Ascott manages/ leases about 6,100 apartment units in 20 cities6,100 apartment units in 20 cities


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Acquisitions by leveraging on strategicrelationship with the CapitaLand Group

May tap into CapitaLand’s real estate expertise, experience and knowledge to source for potential acquisitions for ART

E.g. Ascott acquired a serviced residence development in Guangzhou in the prime Tianhe East Road from CapitaLand Group in January 2005

Ascott Guangzhou, China


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Yield-Accretive Acquisitions

Two yield-accretive acquisitions since listingSomerset Olympic Tower Property in Tianjin, China acquired at a 7% yield1 on 24 July 2006

Somerset Roppongi, Tokyo in Japan acquired at a 5% yield1 on 4 September 2006

Funded by equity and assumption of bank debtPlacement on 19 September 2006 of 44,000,000 new units @ S$1.10

Raised S$48.4 m (US$31m)

1.5 times subscribed

Increased free float from 23% to 30%

Somerset Olympic Tower Property, Tianjin

Somerset Roppongi, Tokyo

# Annualised property yield. For the forecast year 2006.2 VWAP of S$1.14 from 18 September 2006 to 19 September 2006 (up to 12.30pm).


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Diversification across geography and economic cycles

¹ Based on ART’s share of interest in the Properties. 2 Based on the assumptions set out in the Prospectus and ART’s proportionate share of the gross profit of the Properties for

the Forecast Year 2006. Assumes the acquisitions of the Somerset Olympic Tower, Tianjin and Somerset Roppongi, Tokyo took place on 1 January 2006.

Diversification enhances earnings stabilityLow reliance of ART’s earnings on any single marketReduced portfolio volatilityStrong growth potential in key Asian cities

ART’s Share of Gross ProfitFor the Forecast Year 2006ART’s Share of Gross ProfitFor the Forecast Year 2006Property ValuesProperty Values

Total Property Value1 = S$952.1m (US$600m) Total Gross Profit2 = S$48.6m (US$31m)

Indonesia 10%

Vietnam 13%

Singapore 30%

China42%

The Philippines

3%

Japan 2%

Vietnam19%

Indonesia15%

Singapore21%

China41%

The Philippines

3%

Japan 1%


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Geographic Diversification of Gross Profit- And further diversification of China portfolio

Post-Acquisitions*Post-Acquisitions*

* Based on the assumptions set out in the Prospectus and ART’s proportionate share of the gross profit of the Properties for the Forecast Year 2006. Assumes the acquisitions took place on 1 January 2006.

Pre-AcquisitionsPre-AcquisitionsSingapore

24% China34%

Indonesia16.5%

Philippines3.5%

Vietnam22%

Singapore21% China

41%

Indonesia15%

Philippines3%

Vietnam19%

Japan1%

Beijing85%

Shanghai15%

Beijing63%

Tianjin26%

Shanghai11%


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1 to 6 months21%

> 12 months38%

6 to 12 months18%

<1 month23%

Extended length of stay profile and diversity in market segment

Stability in earnings

Relocation44%

Project19%

Family/ Leisure

3%

Business Trip30%

Others4%

Apartment rental income by length of stay1

Apartment rental income by length of stay1

Apartment rental income by market segment1

Apartment rental income by market segment1

¹ For the 6 months ended 30 June 2006. Assumes the acquisitions took place on 1 January 2006.


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Diverse tenant mix and quality clientele

Earnings not reliant on a single industry or tenant

Manufacturing 14%IT 9%

Others 39%

Financial Institutions 10%

Energy & Utilities 6%Government/

NGOs 5%

Media & Telecom 5%

Consumers 4%

Industrial 3%

Healthcare 1%

Real estate/ lodging 1%

Legal 1% Capital Goods/ Unlisted 2%

Apartment rental income by industry1Apartment rental income by industry1


¹ For the 6 months ended 30 June 2006. Assumes the acquisitions took place on 1 January 2006.

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Asset Management Strategies

Responsive yield management to maximise RevPAU

Leverage on the branding and marketing expertise of serviced residence management company to attract quality clientele

Ensure effective cost management by improving operating efficiencies and economies of scale

Implement asset enhancement plans to enhance property yields and maintain quality of portfolio


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Somerset Xu Hui, Shanghai, ChinaCompleted reconfiguration of clubhouse layout with 15,000 sqf NLA of commercial space in Q3 2006

Asset Enhancement For Better Yield

Ascott Beijing, ChinaWork to reconfigure layout of some larger units into smaller one-bedroom units – First phase started in Q4 2006

Ascott Beijing Somerset Xu Hui, Shanghai


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Maintain strong balance sheet and optimise gearingGearing of 30.1% after the acquisitions in Tianjin and Tokyo

Adopt conservative interest rate management strategy

ART’s proportionate share of asset

value S$992.8m

DebtS$298.8m (30.1%)

Equity & Other

Liabilities S$694.0m (69.9%)

ART gearing profileART gearing profile

Fixed/ 5-yearsS$256.4m*

FloatingS$42.6m#

Notes:* 100% of ART’s borrowings (amounting to S$220.3 million) and

45% of its subsidiaries’ borrowings (amounting to S$36.1 million ART’s share)

# 55% of subsidiaries’ borrowings (amounting to S$42.6 million—ART’s share) are on a floating basis

Bank LoansBank Loans

14%

86%

Capital & Risk Management

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Managing foreign exchange exposure

Capital valuesAdopt natural hedge strategy, as far as possible

Borrowing in the same currency as underlying asset

CashflowsManage volatility of foreign currency cash flow from overseas assets, examples:

In China, majority of revenue and operating expenses are in RMBFor Indonesia, Philippines & Vietnam, majority of revenue in US$while operating expenses are in local currencies In Japan, majority of revenue and operating expenses are in Yen

Monitor foreign exchange risks associated with remitting RMB, US$ and Yen to Singapore for distribution, to the extent feasible, hedge these currency risks

Capital & Risk Management

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Conclusion

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Conclusion – Key attractions of ART

Stable and Growing Distributions

Exposure to growing serviced residence industry in the fastest growing region — Asia

Quality Portfolio — Well located and quality assets in key gateway cities

Strong Sponsorship from The Ascott Group

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Thank You

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Assets owned* by Ascott Residence Trust (1/2)

Somerset Liang Court Property (Singapore)

Singapore

•Located on the fringe of Singapore’s CBD, along River Valley Road

•193 apartment units

Somerset Grand Cairnhill (Singapore)

•Located along Orchard Road, Singapore’s main shopping area


Somerset Grand Hanoi

Vietnam

•Located within Hanoi’s CBD•185 apartment units

Somerset Ho Chi Minh City

•Located within Ho Chi Minh City’s CBD


Ascott Beijing

ChinaSomerset Grand Fortune Garden, Beijing

Somerset Xu Hui, Shanghai

Somerset Olympic Tower, Tianjin

•Located along Jian Guo Road, in the Chaoyang District


•Located along Liangmaqiao Road, in the Chaoyang District


•Located in Shanghai’s prime residential district


•Located in the Heping District, in Tianjin’s business district


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Assets owned* by Ascott Residence Trust (2/2)

Somerset Millennium, Makati

The Philippines

•Located in Makati City’s shopping and business district


Somerset Salcedo, Makati

•Located in Makati City’s shopping and business district


Somerset Roppongi, Tokyo

Japan

•Located in the heart of Minato-Ku in Tokyo’s Central Business District


Ascott Jakarta

IndonesiaSomerset Grand Citra, Jakarta

Country Woods, Jakarta

•Located in the Golden Triangle, Jakarta’s business and shopping district


•Located in the Golden Triangle, Jakarta’s business and shopping district


•Located in South Jakarta•251 apartment units

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