Singapore Company Focus

Frasers Centrepoint Ltd Refer to important disclosures at the end of this report

Bloomberg: FCL SP | Reuters: FRCT.SI

DBS Group Research . Equity

24 Feb 2014

Rising to the big ranks

BUY S$1.47 STI : 3,099.93



(Initiating Coverage) Price Target : S$ 2.08 Reason for Report : Initiating coverage Potential Catalyst: High presales and capital reinvestment

 

Analyst LOCK Mun Yee +65 6682 3715 [email protected]

Complete value chain player with strong niche markets. We initiate coverage on Frasers Centrepoint Ltd (FCL) with a BUY rating. As the fourth largest listed developer, FCL offers investors a sizeable listed investment option with a market cap in excess of S$4bn and asset value of S$11.5bn. An estimated 47% of its gross asset value is exposed to development properties, 33% to investment properties and REITs, and the remaining to hospitality and other activities. Its core markets are Singapore, China and Australia.

Price Relative S$

Relative Index

1.9 208 1.8 188 1.7 168 1.6

148

1.5

Geographical and business diversification leads to superior return metrics. FCL’s diverse geographic and

128

1.4

108

1.3 Jan-14

88

Frasers Centrepoint Ltd (LHS)

Relative STI INDEX (RHS)

Forecasts and Valuation FY Sep (S$ m)

Turnover EBITDA Pre-tax Profit Net Profit Net Pft (Pre Ex.) EPS (S cts) EPS Pre Ex. (S cts) EPS Gth (%) EPS Gth Pre Ex (%) Diluted EPS (S cts) Net DPS (S cts) BV Per Share (S cts) PE (X) PE Pre Ex. (X) P/Cash Flow (X) EV/EBITDA (X) Net Div Yield (%) P/Book Value (X) Net Debt/Equity (X) ROAE (%)

2012A

2013A

2014F

2015F

1,412 398 721 643 252 85.4 33.5 nm nm 33.5 20.1 654.8 1.7 4.4 nm 3.7 13.7 0.2 0.1 13.8

2,053 579 832 722 400 95.9 53.1 12 59 53.2 19.9 723.6 1.5 2.8 3.7 4.2 13.5 0.2 0.2 13.9

1,209 573 497 432 432 14.9 14.9 (84) (72) 14.9 5.6 198.0 9.8 9.8 nm 13.5 3.8 0.7 0.6 7.7

1,898 696 595 516 516 17.9 17.9 20 20 17.9 6.7 209.2 8.2 8.2 49.2 12.1 4.5 0.7 0.7 8.8

ICB Industry : Financials ICB Sector: Real Estate Principal Business: FCL is a real estate company with core businesses and assets across the residential, commercial and hospitality sectors in Singapore, China and Australia

Source of all data: Company, DBS Bank, Bloomberg Finance L.P

www.dbsvickers.com ed: TH / sa: JC

Complete value chain player with strong niche markets in Singapore, China and Australia Optimising risk and return with geographical and business diversification, strong balance sheet to support value creation activities Initiate with BUY and TP of S$2.08

business exposure that includes both emerging/developed markets and recurrent/development income, offer investors a stable cashflow base with good upside growth potential at optimal risk. This translates to superior core returns metrics of 8-9% ROE when compared to peers. Furthermore, with a strong balance sheet, the group is well placed to undertake value creating activities on its investment property portfolio, with a view to unlocking value in the medium term through its REIT platform. FCL has a good track record in reading the residential market trends, particularly in Singapore and this will stand it in good stead to restock inventory going forward.

Recommend BUY with a TP of S$2.08. We like FCL for its commanding niche in its key markets of Singapore, China and Australia and strong pre-sales that provides a very visible earnings stream over the next 2-3 years. Its sturdy balance sheet will enable the group to reinvest for future growth, as well as undertake value creation activities in its current portfolio. Key risk is its small free float, with major shareholders, TCC Group and Thai Beverage holding a total 87.9%, which we believe can be addressed in the longer run. At A Glance Issued Capital (m shrs) Mkt. Cap (S$m/US$m) Major Shareholders TCC Assets (%) Thai Beverage (%) Free Float (%) Avg. Daily Vol.(‘000)

2,890 4,248 / 3,351 59.4 28.5 12.1 1,419

Company Focus Frasers Centrepoint Ltd SWOT Analysis Strengths  Real estate company with complete value chain  Good residential market share in Singapore with strong brand recognition  Well capitalised with strong balance sheet  Good balance between developed and emerging markets to optimise growth and risks  Established capital recycling platform as an avenue to optimise value unlocking activities  Experienced management team

Weakness  Property-centric model exposed to industry risk and capital value volatility  Low landholdings limits visibility in Singapore but mitigated by ongoing activities overseas

Opportunities  Pan Asian exposure in various property segments provides local domain knowledge and network  

Threats  Rising interest rate environment may deter buyers from buying property  Property cooling measures and other policy risks may cause volatility in the residential market and dampen demand  Subject to economic, socio-politics conditions in other countries

Source: DBS Bank

Page 2

Company Focus Frasers Centrepoint Ltd Company Background and Group Structure Frasers Centrepoint Ltd (FCL) is the property spin-off of the Fraser & Neave Group (F&N) following a capital restructuring with S$1bn of capital from F&N prior to a dividend in specie exercise of FCL shares and subsequent listing of the company.

Its major shareholders are TCC Group of Thailand with a 59.4% stake, and Thai Beverage with 28.5% holdings in the company.

FCL has a four-pronged growth strategy: i) To achieve sustainable earnings growth through significant development project pipeline, investment properties and fee income; ii) To grow assets in its portfolio in a balanced manner FCL has activities that spans across major property segments across geographies and property segments to such as residential, commercial, retail and hospitality, spread preserve stability of earnings; over a global footprint. It is also a developer, owner, operator iii) To optimise capital productivity through REIT and fund manager across the property chain. FCL also owns platforms and active asset management; and 41% and 28% shares in two S-Reits; Frasers Commercial Trust iv) To develop synergies with TCC Group and build up and Frasers Centrepoint Trust respectively. Following its listing in economies of scale in each country with a country Jan 2014, the group has gross assets of S$10.4bn as at 1QFY14 focus to generate best return. and NAV of S$5.45bn.

FCL Group Structure

Source: Company

Page 3

Company Focus Frasers Centrepoint Ltd Multi-Sector, Global Presence

Source: Company

Page 4

Company Focus Frasers Centrepoint Ltd Management Composition FCL’s management team has wide and in-depth experience in the real estate sector with tenures ranging from 18 to 30 years in real estate, corporate finance asset management and other related activities. Mr Lim Ee Seng has been FCL’s Group CEO since Oct 2004. Mr Lim has close to 30 years of real estate experience. From 19962004, he was the Managing Director at MCL Land. Prior to this, he was the General Manager of the Property Division at First Capital Corporation (now known as Guocoland). He holds a Master of Science (Project Management) and Bachelor of Engineering (Civil) from National University of Singapore. He is also the second vice president of the Real Estate Developers’ Association of Singapore.

of Philosophy (Management Studies) from Cambridge University and Bachelor of Commerce (Accounting and Finance) from University of Western Australia. Mr Choe Peng Sum was appointed as CEO of Frasers Hospitality in 1998. Previously, he served as the General Manager of Hospitality in Frasers Centrepoint from 1996-98. Prior to joining the group, Mr Choe worked in Portman Shangri-la Hotel Shanghai, and Shangri-la Singapore. He holds a Bachelor of Science with Distinction from Cornell University and attained the President’s Honor Roll from Washington State University and attended the Executive Development Programme at the International College of Hospitality Administration, BRIG, Switzerland. Mr Christopher Tang was appointed as CEO Greater China in Oct 2010 and CEO of Frasers Centrepoint Commercial in Oct 2006. He joined the company in 2001 and was the CEO of Frasers Centrepoint Asset Management (manager of FCT) from 2006-10. He holds an MBA and Bachelor of Science from National University of Singapore.

Mr Cheang Kok Kheong became the CEO, Development and Property in Nov 2010 and joined Frasers Centrepoint in 2007. Mr Cheang has close to 20 years of property management and development experience, having been a senior manager at DBS Land from 1994-98 and senior manager at Ascendas from 1998-2002. Hew was the general manager at MCL Land from Mr Uten Lohachipitaks was appointed as CIO on 1 Oct 2013. He 2002-07. He holds a Master of Science in Tourism, Planning and has 18 years of banking and finance experience. His previous Development from University of Surrey and Bachelor of appointment was as Managing Director in the strategic advisory Architecture from National university of Singapore. team of DBS Bank, where he was responsible for originating, structuring and executing M&A transactions. Prior to this, he Mr Chia Khong Shoong was appointed as CFO in Mar 2009 and was with UOB Thailand from 2005-06. From 1995-96, he was as CEO of ANZ and UK in Nov 2010. He was previously an with The Thai Danu Bank. He holds a Bachelor of Business investment banker with HSBC from 2004-2008 and with Administration and MBA from Assumption University Thailand. Citigroup/Salomon Smith Barney from 1996-2004, where he was responsible for originating and executing corporate finance and investment banking assignments. Mr Chia holds a Master Key Management Team  

Lim Ee Seng Group CEO

Commercial

Hospitality

Finance

Investment

Cheang Kok Kheong

Tang Kok Kai Christopher

Choe Peng Sum

Chia Khong Shoong

CEO Singapore

CEO Frasers Centrepoint Commercial

Uten Lohachitpitaks CIO

Development

Tang Kok Kai Christopher CEO Greater China

Chia Khong Shoong CEO ANZ, UK

Source: Company

Page 5

CEO Frasers Hospitality

CFO

Company Focus Frasers Centrepoint Ltd A force to be reckoned with FCL’s listing has provided investors with a sizeable investment opportunity in the listed real estate space. FCL has a market cap in excess of S$4bn, making it the fifth largest listed property developer on the SGX and fourth ranked when compared with those that have both Singapore and Asian exposure. It has a total assets size of $11.5b as at 1QFY14. Peer Asset and Market Cap Comparison

Good mix of developed and emerging market exposure to optimise risk and growth profile. The group’s footprint spans across developed economies of Singapore, Australia and UK, where it makes up 86% of GAV and generates 96% of PBIT. Its assets are located in key gateway cities in these countries thus, providing a stable base of income and value for the group. In addition, FCL is also present in growth hubs such as China, Thailand and other countries. With anticipated stronger economic growth in these emerging countries, this will also enable the group to generate more beta on its income and asset value profile.

40000 35000

Total Assets

30000

Breakdown of Gross Asset Value by Geography (FY13)

Mkt Cap (S$m)

25000 Aust 5%

20000 15000

UK 7%

10000

Spore 74%

China 11%

5000 0 CAPL

GLP

CIT

KPLD

Source: Bloomberg Finance L.P.

FCL

UOL

Thai 1% Others 2%

WINGT HOBEE BKT SEMB

Source: Company

FCL’s Total Assets S$m 12000

Breakdown on PBIT By Geography (1QFY14)

10000 8000

Aust 38%

6000

UK 9% 4000

China 1% Thai 0% Others 2%

Spore 49% 2000 0 FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12 1HFY13

Source: Company

Source: Company

Complete value chain business model. FCL’s businesses span across the various property segments, comprising residential, commercial, retail and hospitality. Its key residential markets are in Singapore, China and Australia while its hospitality business spans across a global footprint including Asia, UK, Europe and Middle East. In addition, it is also a fund manager being the Sponsor with significant stakes and REIT Manager of 2 S-REITs – Frasers Centrepoint Trust and Frasers Commercial Trust

Balanced mix of recurrent and development income, providing a fairly stable income base. Residential development activities is generated from almost half of assets while recurring income businesses such as commercial, REIT and hospitality businesses accounts for the remaining half of asset profile. Breakdown of Gross Asset Value by Business Segment (1QFY14) Others 2%

FCL Portfolio At A Glance 10841 units 21%

NLA 6.8msf

AUM $3.5m

12%

8008 rms 11%

17%

10%

40% 75%

Source: Company Page 6

Commercial/Retail Europe Aust

REIT 9%

Devt props 50%

83%

31%

Residential Others

Invt props 21%

12% 7%

13%

69%

Hospitality  18%

REIT China

Hospitality Spore

Source: Company

Company Focus Frasers Centrepoint Ltd Singapore

Breakdown of 1QFY14 PBIT by Business Segment

High pre-sales, strong brand visibility. FCL has a strong brand visibility in Singapore under “Frasers Centrepoint Homes” brand and has garnered a strong market share over the past few years. Based on units sold in the primary market, we reckon FCL’s market share had been growing from 11% in FY11 to 13+% in FY13. This had enabled the group to lock in significant presales, to be progressively recognised over the next 2-3 years. The group had an unrecognised residential revenue balance of S$2.1bn in Singapore as at end 1QFY14.

Hospitality  9% Others ‐2%

Devt props 71%

Invt props 11% REIT 7%

Source: Company

Residential Residential activities will continue to be the major contributor to group earnings and growth. It accounted for 74% of PBIT as at 1QFY14 and we expect this segment of contributions to remain above the 70% mark over the next 2-3 years. FCL has a total of 10,841 residential units under development and a further 22.93m sf GFA of land bank spread over Singapore, Australia, China and other countries. The land holdings can provide a potential inventory of 12,797 units. The gross development value of its land holdings is estimated at S$6.9bn, of which FCL’s attributable stake is S$4.47bn. This should provide strong earnings visibility over the next few years. Development Status and Land Bank Status Under devt (units) Land bank (msf) (units) GDV ($m)

Spore 7,465 0.75 (746)

China Australia 1,061 2,315 12.58 (8,766) 3.95 (3,285)

757

2,330

3,819

Others 5.65 -

Source: Company

FCL has a long track record of developing properties in Singapore and overseas. This diversified strategy had enabled the group to balance the fluctuations in home sales in Singapore and overseas. Going forward, the group intends to launch 1,000 new homes in Singapore and another 1,000 units overseas annually. Number of Homes Sold in Singapore and Overseas 4,000 3,500 3,000 2,500 2,000

More importantly, the land cost of these ongoing projects make up only 24-42% of average selling prices, indicating that the group could generate healthy PBT margins of c.15-20% from these projects. Development and Sale Status of Ongoing Projects Project

Units

% Sold

Stake (%)

Site area (msf)

GFA (msf)

ASP ($psf)

Land cost ($psfppr)

50

Est compln date Jan-14

Waterfront Gold Flamingo Valley Waterfront Isle Eight Courtyards Seastrand Boathouse Residences Twin Waterfalls EC Watertown Palm Isles eCO Q Bay Residences Twin Fountains EC Esparina Residences

361

100

0.16

0.39

973

240

393

95

100

Dec-13

0.34

0.49

1,222

415

563

97

50

Nov-14

0.22

0.57

1,037

240

656

100

50

May-14

0.29

0.69

807

321

475 494

98 100

50 50

Sep-14 Jan-15

0.22 0.14

0.43 0.48

915 909

334 320

728

99

80

Mar-15

0.27

0.83

710

270

992 430 750 632

99 95 89 93

33.3 100 33.3 33.3

Aug-16 Jun-15 Jan-16 May-16

0.32 0.23 0.31 0.22

0.79 0.43 0.67 0.68

1,191 865 1,316 1,022

482 325 534 418

418

82

70

Nov-15

0.18

0.49

742

302

573

99

80

Complete d

0.22

0.61

743

315

Source: Company

Going forward, FCL has a remaining 0.25m sf of GFA to be launched. The first to be marketed will be RiverTrees, by end Feb 14. We estimate a breakeven cost of c.S$950-1,000psf of saleable area. Based on transacted prices in the vicinity of S$1,000-1,100psf, we reckon, the group can rake in 10-15% PBT margin. The recent launch of UOL’s Riverbank nearby, averaging $1,000psf, was well received with an estimated 40% of the entire project taken up within 2 weeks of launch. We expect RiverTrees to receive a warm response as well.

1,500

Singapore Land Bank

1,000

Sites

500 0 FY04

FY05

FY06

FY07

FY08

Singapore

Source: Company

FY09

FY10

FY11

FY12 9MFY13

51 Cuppage Rd RiverTrees

Overseas

Holland Park

Source: Company Page 7

Location

Stake (%) Orchard Rd 100 Fernvale, 40 Sengkang Holland 100 Village

Units Land area Est GFA (msf) (msf) 249 0.07 0.24 495 0.16 0.48 2

0.02

0.03

746

0.25

0.75

Land cost ($psf ppr) 1,152 534

Company Focus Frasers Centrepoint Ltd In terms of land banking, the group is looking at selectively building their land inventory. Its recent win of the mixed development parcel at Yishun Central for c$1.43bn has increased the group’s residential land bank by an estimated 796,021sf of residential GFA, based upon a 60% residential usage. The remaining 40% is slated for retail space.

China Early mover, low land cost. FCL was one of the first movers into the China residential market. As at end 1QFY14, China made up c7% of FCL’s gross asset value. It has 1,061 residential units that are currently being built and a land bank that can house another 8,766 homes. Its residential projects in China are largely in Suzhou (Baitang ) and Shanghai (Gemdale City), in which the group has a 45% share. We expect the early acquisition of these sites and the subsequent appreciation in home prices in the country to enable the group to generate robust returns from these projects. For example, ASP for Baitang is RMB13,000psm compared to its land cost of RMB2,508psm ppr. Development and Sale Status of Ongoing Projects in China Project

Location Units % Stake Est Land Est ASP Land cost Sold (%) compln area GFA (RMB (RMBpsm (msf) (msf) psm) ppr) Baitang One Suzhou 538 59 100 Sep-13 0.34 0.85 11,718 2,508 P2A Baitang One Suzhou 360 3 100 May-14 0.52 0.77 13,834 2,508 P2B Chengdu Chengdu 163 18 80 Oct-13 0.18 0.65 9,093 323 Logistics Hub P2

Source: Company

China Landbank Sites

Location

Stake (%)

Units

Land area (msf)

Est GFA (msf)

Baitang One P3 Shanshui Four Seasons P2-5 (Gemdale City) Residential Chengdu Logistics Hub (P2&4) Commercial Total

Suzhou Shanghai

100 45

2,062 6,067

1.51 4.8

2.79 7.03

80

8,129 637

6.31 0.85

9.82 2.76

637 8,766

0.85 7.16

2.76 12.58

Land cost (RMB psmppr) 2,551 1,927

Its One Central Park development is a large mixed-development in Sydney with 2.3msf of NLA. Presales achieved in FY13 amounted to 495 units with another 160 units in 1QFY14. The latter came mainly from Central Park and Putney Hill in Sydney and Queens Riverside in Perth. Two phases, One Central Park and Park Lane, received good take-up at an average selling price of A$1,100-1,200psf. We reckon the Australian landbank is sufficient to last the group another 4-5 years. Development and Sale Status of Ongoing Projects in Australia Project

Location Units

One Central Sydney 623 Park Park Lane Sydney 393 The Mark Sydney 412 Frasers Mandurah 171 Landing Putney Hill Sydney 449 QIII Perth 267

% Stake Est Land Est ASP Sold (%) compln area GFA (A$psf) (msf) (msf) Dec-13 0.13 0.46

1,143

Land cost (A$psf ppr) 252

76 38 Oct-13 0.05 0.24 55 38 Jul-14 0.05 0.24 25 56.25 Sep-15 1.64 0.67

1,218 1,243 885

257 256 6

615 889

100 29

89

42 82

38

75 Mar-16 0.68 0.49 87.5 Jun-14 0.03 0.22

Source: Company

Australia Land Bank Sites Central Park Land Bank A Central Park Land Bank B Frasers Landing Parramatta River Putney Hill QI and QII

Location Sydney

Stake (%) 38

Sydney

Units 1,096

Land area (msf) 0.17

Est GFA (msf) 0.95

Land cost (A$psfppr) 163

75

558

0.14

0.34

163

Mandurah

56

282

3.98

1.37

6

Sydney

75

774

0.53

0.69

Na

Sydney Perth

75 87.5

342 233 3,285

0.54 0.06 5.42

0.34 0.26 3.95

100 30

Source: Company

Investment properties Chengdu

na

Source: Company

We reckon the existing landbank of 8,766 units should last the group over the next 7-8 years.

FCL has established a complete value chain model for its investment property business unit, as a property developer, owner, operator and REIT manager. FCL has a portfolio of commercial and retail properties, held directly and through its REITs. FCL directly owns an attributable 961,832sf of retail space, 991,885sf of office and 704,857sf of industrial space in Singapore, Australia, China and Vietnam, valued at a total of c.S$3.7bn, as well as another 3.5msf valued S$3.8b worth of assets through its two REITs.

Growth in this segment can be derived from both enhancing existing properties as well as recycling and reinvesting capital Australia is also FCL’s core market, making up 5% of FCL’s gross asset into new developments. value. Perth and Sydney are the two key cities that FCL has invested in. In addition to 2,315 homes under development, the group has While some of its properties in the REITs, such as Causeway sufficient landbank for another 3,285 new units. As at 1QFY14, Point and Northpoint, had undergone extensive asset Australian residential activities has a remaining unrecognised revenue enhancement initiatives in the last 2 years and benefited from of S$0.8m. improved rents post-makeover, not much had been done to its Australia

Page 8

Company Focus Frasers Centrepoint Ltd directly held portfolio of assets. We see this as a potential catalyst to unlock significant value from its current portfolio. We estimate the directly held portfolio is currently generating an effective blended NPI yield of c4%, based on annualising 1QFY14 rental PBIT of cS$20.3m. We believe this return can be raised with benefits of asset enhancements on the properties. Likewise, the under-rentedness is reflected in the current valuations of some of its assets, which in some cases, are, we believe, below replacement cost. Upgrading these properties can only provide more upside to boost the NAV of the group. Among its portfolio, we believe the group’s downtown assets such as The Centrepoint, Robertson Walk and Valley Point, which are currently commanding average rents of S$5.239.90psf/mth, has good upside potential as their market rents are significantly below its comparable peers in the vicinity such as Plaza Singapura, Paragon, Mandarin Gallery as well as ION Orchard, ranging between $15-28psf/mth. Moreover, upgrading these properties could make it more attractive as potential assets to be injected into its REIT platforms in the longer run. Property Portfolio Property Retail Compass Point Changi City Point* Eastpoint Mall Robertson Walk The Centrepoint Valley Point (retail) Waterway Point Beijing Crosspoint Sydney Central Office Alexandra Point Valley Point (office) One@ Changi City Starhub Centre Industrial Chengdu Logistics Park Me Linh Point Vietnam

Stake (%)

NLA (sf) Book value Value ($m) ($psf)

Occ (%)

Avg Rent (psf/mth)

19 50

266,586 207,237

530 199*

1,988 960

100 98

11.89 9.08

0 100 100 100

189,986 97,044 333,329 39,817

na 99 640 36

1,020 1,920 904

na 99 98 100

Na 6.54 9.90 5.96

33 100

360,591 161,509

732 58

2,030 359

na 92

Na RMB12.58

38

149,652

141

942

na

Na

100 100

199,380 183,109

271 233

1,359 1,272

100 91.8

5.18 5.23

50

665,914

281

422

93

3.66

100

276,439

392

1,418

66.4

6.34

80

703,981

89

126

76

RMB2.42

75

188,896

51

270

100

US$2.82

Valuers’ valuation of Changi City Point at June 2013 is $286m

Source: Company

Furthermore, recent successful tender of two land parcels– a commercial site at Cecil St/Telok Ayer St and a mixed retail/residential site in Yishun, has replenished the group’s pipeline, in addition to Waterway Point, currently under development. These assets could also potentially for a potential acquisition growth pipeline for its REITs.

Page 9

Waterway Point, in which FCL owns a one third share, is part of a mixed 542,489sf GFA retail and 992-unit residential development. The development is expected to complete by 2017. The residential component has been largely pre-sold. The commercial site at Cecil St/Telok Ayer St, purchased for c$924m or $1,112psf ppr, is slated for an office development with 830,572sf. We estimate a cost on completion of $1,2001,300psf ppr. Assuming an office rent of $7-8psf/mth when completed by 2017, the net yield on cost works out to be 45%. The Yishun land parcel was purchased for a total $1.43b. The 442,238sf site can house up to 1,326,714sf GFA of which 60% is slated for residential. The site is located next to the present Northpoint and potential for creating seamless connectivity to the existing shopping mall exists, thus potentially creating one of the largest mall in the northern part of Singapore.

REIT and fee income FCL has put in place its capital recycling model by setting up its REIT platform. It has 28% and 41% shares in Frasers Centrepoint Trust (retail) and Frasers Commercial Trust (commercial) respectively, with a total AUM of cS$3.8b. Frasers Centrepoint Trust (FCT) is a retail S-REIT that focuses on investing in retail properties in Singapore and overseas. The Trust owns and manages five suburban malls in Singapore, which were collectively valued at S$2.02b as at FY13. Its two largest malls, Causeway Point and Northpoint, are located in the north of Singapore, and comprise c80% of the Trust’s rental income and portfolio valuation. In addition to its Singapore malls, FCT also owns a 31.2% stake in Hektar REIT, a retailfocused REIT in Malaysia, which owns and operates five malls in various Malaysian states. Properties Held by FCT Property Causeway Point Northpoint Bedok Point YewTee Point Anchor Point Total

NLA (sf) 416,137 235,653 81,393 73,669 71,610 878,462

Valuation (S$m) 1,006 638 128.5 161 86 2,019.5

FY13 Revenue (S$m) 75.1 48.8 12.2 13.2 8.6 158.0

Source: Company

Frasers Commercial Trust (FCOT) is an S-REIT that focuses on investing in commercial properties. The Trust owns and manages five properties in Singapore and Australia, collectively valued at S$1.8b as of 30 Sept 2013.

Company Focus Frasers Centrepoint Ltd Properties Held By FCOT Property

Location

NLA(sf)

Valuation (S$m)

FY13 Revenue (S$m) 28.1 5.3 22.0 37.0 25.3

China Square Central Spore 372,453 573 55 Market Street Spore 71,796 133 Alexandra Technopark Spore 1,045,227 465 Central Park* Perth 714,372 408 Caroline Chishom Canberra 433,182 232.4 Centre Others** 0.52 Total 2,637,030 1,811.4 118.2 *FCOT holds a 50% stake in Central Park, ** Japanese properties have been divested

Source: Company

Potential for asset recycling to further boost return metrics. With an established REIT platform, FCL is well positioned to unlock value from its investment property portfolio such as the Changi City Point, as well as enhance underperforming assets, particularly those in the downtown area as well as from the new properties under development.

Hospitality Frasers Hospitality is an international serviced residences owner and management company. Its portfolio consists of 2,280 apartments across 49 properties in 30 cities in Asia, Australia, Europe and the Middle East. Under its “Fraser Suites”, “Fraser Place”, “Fraser Residence” and “Modena by Fraser” brand names. Owned Serviced Residence Portfolio Property Fraser Suites Perth Fraser Suites Sydney Fraser Suites Melbourne Fraser Suites Beijing Fraser Residence Sudirman Jakarta Fraser Place Canary Wharf Fraser Suites Kensington Fraser Suites Queens Gate Fraser place Manila Fraser Suites Glasgow Fraser Suites Edinburgh Fraser Place Spore Fraser Suites Spore Capri by Fraser Changi City

Source: Company

Stake (%) 88 81 100

Units Occ (%)

ADR (/rm night) A$270.55 A$252.95 A$142.41

FY13 Book Value A$125m A$99m A$28m

236 201 112

65 89 75

100 100

357 108

82 93

100

97

80

£148.84

£35m

100

69

84

£252.53

£99m

100

106

11

£150.49

£53m

100 100 100

89 99 75

86 78 84

PHP7117.44 £68.87 £110.79

PHP953m £10m £13m

100 100 50

163 255 313

76 82 77

S$366.41 S$330.67 S$248.36

S$232m S$357m S$101m

RMB841.82 RMB1,150m US$134.37 US$33m

acquire and/or manage some 3,700 additional hospitality related keys/rooms in Thailand. This translates to a 29% CAGR in room inventory over this period. In addition, the hospitality business currently generates a ROA of c1.9% (derived by annualising 1QFY14 PATMI of $8.5m and measured against GAV of $1.83b). By growing through management contracts and adopting a more asset light model, this will further enhance ROE and ROA going forward. Managed Serviced Residence Portfolio Property Fraser Suites Bahrain Fraser Place Shekou Fraser Residence Shanghai Fraser Suites Shanghai Fraser Residence CBD East Beijing Fraser Suites Nanjing Modena Shanghai Putuo Modena Heping Tianjin Fraser Suites Changdu Fraser Suites Suzhou Modena Jinjihu Suzhou Fraser Suites Guangzhou Fraser Suites Harmonie Paris La Defense Fraser Suites Le Claridge Paris Fraser Residence Budapest Fraser Suites New Delhi Fraser Residence Nankai Osaka Fraser Residence Prince of Wales Fraser Residence Bishopgate Fraser Residence Blackfriars Fraser residence Monument Fraser Residence City Fraser Place KL Fraser Suites Doha Fraser Place Fusionpolis Fraser Residence Orchard Fraser Suites Insadong Seoul Fraser Place Central Seoul Fraser Place Namdaemun Fraser Suites Sukhumvit Bangkok Fraser Place Anthill Istanbul Fraser Suites Dubai Fraser Suites Hanoi Capri by Fraser District 7 HCMC

Units 91 232 324 186 228 210 348 104 360 276 237 332 134 110 51 92 114 18 26 12 14 22 315 138 50 72 213 254 25 163 116 180 185 175

Source: Company

Properties Under Management 20000 18000 16000

Potential additions from TCC  Group (through asset mgmt) Apts signed up for next 3 years Apts under mgmt

>3700

>6400

14000 12000 10000 8000

8008

6000 4000 2000

More importantly, hospitality is a scalable business, particularly 0 2001 2003 for hotel management contracts. The company currently Source: Company manages 8,008 apartments as of 30 June 2013, and over the next three years, this is expected to rise to 14,400. Furthermore, the company is currently in discussions with TCC Group to Page 10

2005

2007

2009

2011

3Q13

By 2017

Company Focus Frasers Centrepoint Ltd Potential to leverage on major shareholder

Financials

TCC Group and Thai Beverage Ltd are the major shareholders of FCL, with a total 87.9% stake. With a strong alignment of interest, in the longer run, the prospect of working together with TCC exists.

We project FCL’s PATMI (ecxl revals and one-off items) to grow by 7.6% and 19.6% in FY14 and FY15 from $401.1m in FY13. The growth will be underpinned by largely by development profits as well as better rental and serviced residence earnings.

TCC’s portfolio includes 8.1msf of office space, 5.1msf of retail space and over 10,300 hotel keys. TCC has granted FCL the first right of refusal for any opportunity to invest in, develop or manage TCC’s property assets and a right to participate in any bidding process with respect to TCC’s property assets globally, except Thailand. At present, with the exception of hospitality assets, TCC Group’s retail and commercial properties are largely located in Thailand.

FCL offers superior ROE metrics amongst its peers with a projected 7.7% and 8.8% and ROA of 5.1-5.4%. We believe the good balance of recurrent and development income will form a strong cashflow base for the group. Based on annualising 1QFY14 REIT and fee income from REIT and service residence management activities, we estimate that the group can generate some $104-120m of net-of-tax recurring cashflow. This is equivalent to an estimated EPS of 3.64Scts/share p.a. and provides a firm 1.7-2% ROE base to the group. Further upside in these metrics will come from the strong flow of locked-in contributions from property development activities. Our numbers have not assumed any potential asset enhancement activities on its investment properties that would elevate returns on these properties when completed.

List of Hotels Owned or Managed by TCC Land Outside of Thailand Hotel Le Meridien Angkor Siem Reap The Grand Luang Prebang Melia Hanoi InterContinental Hotel & Resorts Singapore Sakura Hotel Kunming Bank Hotel Kunming ANA Crowne Plaza Hotel Kobe Westin Hotel KL Novotel Rockford Darling Harbour Australia InterContinental Adelaide Australia Hyatt Hotel Canberra The Park International Hotel London Plaza Athenee New York

Rooms 420 78 238 403 235 285 593 230 367 142

Balance sheet remains robust with a 50% net debt to equity ratio as at 1QFY14. We estimate FCL’s gearing level to hover around 50-60% over the next two years with the progressive payment of the Yishun land parcel and capex for development of new investment properties on hand.

Source: TCC Land website

Sales Trend

Profitability Trend S$ m 828

S$ m

2,000

60.0% 728

40.0%

1,500

628

20.0% 1,000 500 0

528

-20.0%

428

-40.0% 2012A

2013A

Total Revenue

Source: Company, DBS Bank

Page 11

0.0%

2014F

2015F

Revenue Growth (%) (YoY)

328 2012A Operating EBIT

2013A

2014F Pre tax Profit

2015F Net Profit

Company Focus Frasers Centrepoint Ltd Valuation and recommendation We have used the sum of parts methodology to derive the RBAV estimate for FCL. We have marked to market its directly owned investment properties and serviced residence, estimated the development surplus from its Singapore, China and Australia residential projects and ascribed a 15x PE multiple to the group’s fee income business. This translates to a RNAV estimate of $2.98/share. Our target price of $2.08 for FCL is premised on a 30% discount to RNAV, similar to the level of discount applied to other big cap developers.

its core markets of Singapore, China and Australia while a mix of developed and emerging markets exposure as well as balance of development and recurring income and strong locked in presales, provides a stable income profile with strong income visibility going forward. The key risk at this point is the small free float of the stock, as TCC Group and Thai Beverage owns a total 87.9% of the stock. We believe this issue can be addressed in the medium term and can only result in upside for the stock as the stock price gap vs its asset backing narrows due to greater liquidity and free float.

We recommend BUY on FCL with 41% upside to our TP of $2.08. We like the group’s ability to establish a strong niche in Peer Comparison Table FYE Company

Mkt

Price

Cap

21-Feb-14

RNAV

*Assumed

Target Price

Upside

(S$m)

(S$)

(S$)

Discount (%)

(S$)

%

2.87

5.57

-30%

3.90

36%

P/RNAV

Latest Qtr

Latest Qtr

Rcmd

(x)

NBV/Share

P/NBV

Buy

0.52

3.69

0.78

Residential Developers Capitaland

Dec

12,204

Capitamall Asia

Dec

7,084

1.82

2.85

-20%

2.28

25%

Buy

0.64

1.78

1.02

City Dev

Dec

8,484

9.33

12.33

-10%

11.09

19%

Hold

0.76

8.03

1.16

Ho Bee

Dec

1,342

2.01

3.50

-40%

2.10

4%

Hold

0.57

2.70

0.74

Wheelock

Dec

1,867

1.56

2.57

-30%

2.06

32%

Hold

0.61

2.57

0.61

Wing Tai

Jun

1,439

1.83

4.06

-40%

2.22

21%

Buy

0.45

3.62

0.51

Landlords Global Logistic Properties

Mar

13,280

2.79

3.31

0%

3.31

19%

Buy

0.84

2.27

1.23

Keppel Land

Dec

5,024

3.25

6.64

-30%

4.65

43%

Buy

0.49

4.06

0.80

Singland

Dec

3,485

8.45

13.89

-30%

9.72

15%

Hold

0.61

12.72

0.66

UIC

Dec

4,068

2.95

3.10

0%

3.10

5%

Hold

0.95

3.51

0.84

UOL

Dec

4,571

5.93

9.82

-20%

7.75

31%

Buy

0.60

8.50

0.70

Source: Bloomberg Finance L.P., DBS Bank

Page 12

Company Focus Frasers Centrepoint Ltd

RNAV Breakdown I nv e s t m e nt pr o pe rt ie s P ro pe rt y Re t a il Compass Point Changi City Point Robertson Walk The Centrepoint Valley Point (ret ail) Beijing Crosspoint Sydney Central* Tot al O ffic e Alexandra Point Valley Point (office) Starhub Centre One@ Changi City Tot al I ndus t ria l/Biz pa rk Chengdu Logistics Park Me Linh Point Vietnam Tot al S e rv ic e d re s ide nc e Fraser Suite Pert h Fraser Suites Sydney Fraser Place Melbourne Fraser Suites Beijing Fraser Residence Sudirman Fraser Place Canary Wharf Fraser Suites Kensington Fraser Suites Queens Gate Fraser Place Manila Fraser Suites Glasgow Fraser Suites Edinburgh Fraser Place Singapore Fraser Suites Singapore Capri by Fraser, Changi City

S t a ke (%)

NL A (s f)

Av g Re nt (ps f/m t h)

Ca p ra t e

Va lue ($ps f/rm )

19 50 100 100 100 100 38

266,586 207,237 97,044 333,329 39,817 161,509 149,652

13 9.08 10 13 8 RMB12.58 Na

5.5% 5.5% 5.0% 4.8% 5.0% 8.0%

1,985 1,387 1,680 2,275 1,344 377

100.6 143.7 163.0 758.3 53.5 61.0 141.0 1,421.1

100 100 100 50

199,380 183,109 276,439 665,914

7 7.5 6.34 5

4.5% 4.5% 4.0% 5.0%

1,400 1,500 1,427 900

279.1 274.7 394.3 299.7 1,247.8

80 75

703,981 188,896

RMB2.42 US$2.82

8.0% 10.0%

73 426

40.9 60.4 101.3

88 81 100 100 100 100 100 100 100 100 100 100 100 50

Ro o m s 236 201 112 357 108 97 69 106 89 99 75 163 255 313

ADR (S $) 325 304 170 168 168 298 504 300 237 138 222 366 331 248

6.5% 6.0% 6.0% 4.5% 7.0% 6.0% 4.0% 5.0% 9.0% 7.0% 7.0% 4.0% 4.0% 5.0%

802,160 904,058 456,104 655,637 384,293 797,647 2,540,948 963,600 408,898 287,829 509,331 1,469,490 1,328,965 651,744

166.6 147.2 51.1 234.1 41.5 77.4 175.3 102.1 36.4 28.5 38.2 239.5 338.9 102.0 1,778.8

Tot al less book value S urplus

L is t e d s e c urit ie s FCT FCOT Total less book value S urplus

O MV ($m )

4,548.9 3,840.6 708.3

S t a ke 28% 41%

S ha re c a p (m ) 825.1 669.7

T P (S $) 2.14 1.46

492.6 400.9 893.5 835.8 57.7

Surplus from invt properties under devt - Cecil St, Yishun, Waterway Point

216.1

NPV of development profit Singapore China Australia

516.4 234.4 303.1

Fee income Book NAV RNAV No of shares RNAV/s ha re ($) Discount T P ($) * ba se d on book va lue

Source: Company, DBS Bank

Page 13

15 x

434.4 6,128.8 8,599.2 2,889.8 2.98 30% 2.08

Company Focus Frasers Centrepoint Ltd

Margins Trend

Income Statement (S$ m) FY Sep

2012A

2013A

2014F

2015F

47.0%

Revenue

1,412

2,053

1,209

1,898

42.0%

Cost of Goods Sold

(785)

(1,241)

(638)

(1,059)

37.0%

626

812

571

840

(298)

(300)

(175)

(275)

328

511

395

565

0

0

0

0

61

60

169

123

Net Interest (Exp)/Inc

(60)

(61)

(67)

(93)

Exceptional Gain/(Loss)

391

322

0

0

Pre-tax Profit

721

832

497

595

Tax

(92)

(97)

(58)

(69)

14

(13)

(8)

(10)

0

0

0

0

Net Profit

643

722

432

516

Net Profit before Except.

252

400

432

516

EBITDA

398

579

573

696

Revenue Gth (%)

nm

45.4

(41.1)

57.1

EBITDA Gth (%)

nm

45.6

(1.1)

21.5

Opg Profit Gth (%)

nm

55.7

(22.6)

42.8

Net Profit Gth (%)

nm

12.3

(40.2)

19.6

Gross Margins (%)

44.4

39.5

47.2

44.2

Opg Profit Margin (%)

23.3

24.9

32.7

29.8

Net Profit Margin (%)

45.6

35.2

35.7

27.2

ROAE (%)

13.8

13.9

7.7

8.8

ROA (%)

6.4

6.9

3.8

4.0

ROCE (%)

3.6

5.3

3.6

4.4

Div Payout Ratio (%)

23.5

20.8

37.4

37.4

Net Interest Cover (x)

5.4

8.4

5.9

6.1

Gross Profit Other Opng (Exp)/Inc Operating Profit Other Non Opg (Exp)/Inc Associates & JV Inc

Minority Interest Preference Dividend

Growth

Margins & Ratio

Source: Company, DBS Bank

Page 14

32.0% 27.0% 22.0% 2012A

2013A

Operating Margin %

2014F

2015F

Net Income Margin %

Company Focus Frasers Centrepoint Ltd

Balance Sheet (S$ m) FY Sep

Net Fixed Assets

Asset Breakdown 2012A

2013A

2014F

2015F

33

32

23.9

16

Invts in Assocs & JVs

1,224

1,056

1,225

1,348

Invt & Devt Properties

2,821

3,115

4,518

5,118

Other LT Assets

202

281

281

281

Cash & ST Invts

1,267

507

382

175

Dev Props held for sale

4,471

5,135

5,457

6,205

4

4

2

4

328

303

302

380

7

13

13

13

10,357

10,445

12,204

13,539

Inventory Debtors Other Current Assets Total Assets ST Debt

168

629

629

629

Creditor

1,660

1,725

1,260

1,751

Other Current Liab

138

116

61

72

LT Debt

1,425

1,175

3,175

3,675

Other LT Liabilities

2,011

1,321

1,321

1,321

Shareholder’s Equity

4,932

5,451

5,721

6,045

Minority Interests

23

27

35

45

Total Cap. & Liab.

10,357

10,445

12,204

13,539

Non-Cash Wkg. Capital

3,013

3,614

4,454

4,778

Net Cash/(Debt)

(326)

(1,298)

(3,423)

(4,129)

Debtors Turn (avg days)

130.0

56.1

91.3

65.6

Creditors Turn (avg days)

779.0

510.7

730.0

608.3

Inventory Turn (avg days)

2.0

1.1

1.2

1.2

Asset Turnover (x)

0.1

0.2

0.1

0.1

Current Ratio (x)

3.1

2.4

3.2

2.8

Quick Ratio (x)

0.8

0.3

0.4

0.2

Net Debt/Equity (X)

0.1

0.2

0.6

0.7

Net Debt/Equity ex MI (X)

0.1

0.2

0.6

0.7

Capex to Debt (%)

0.7

0.3

0.0

0.0

Source: Company, DBS Bank

Page 15

Debtors 15.9%

Net Fixed Assets 1.7%

Assocs'/JVs 55.6% Inventory 0.2% Bank, Cash and Liquid Assets 26.7%

Strong capital reinvestment into new investment properties

Company Focus Frasers Centrepoint Ltd

Cash Flow Statement (S$ m) FY Sep

Capital Expenditure 2012A

2013A

2014F

2015F

667

786

497

595

10

7

8

8

8

8

(141)

(87)

(113)

(58)

6

(61)

(60)

(169)

(123)

4

Chg in Wkg.Cap.

(367)

(164)

(785)

(336)

2

Other Operating CF

(663)

(180)

0

0

0

Net Operating CF

(558)

303

(561)

86

Capital Exp.(net)

(11)

(5)

0

0

Other Invts.(net)

(72)

61

0

0

Invts in Assoc. & JV

(16)

(34)

0

0

Div from Assoc & JV

60

61

0

0

(18)

234

0

0

12

Pre-Tax Profit Dep. & Amort. Tax Paid Assoc. & JV Inc/(loss)

Other Investing CF Net Investing CF

(57)

317

0

0

(152)

(151)

(161)

(193)

449

(462)

2,000

500

12

0

0

0

Other Financing CF

629

(1)

0

0

Net Financing CF

937

(613)

1,839

307

0

0

0

0

321

6

1,278

393

Opg CFPS (S cts)

(25.3)

62.0

7.8

14.6

Free CFPS (S cts)

(75.5)

39.5

(19.4)

3.0

Div Paid Chg in Gross Debt Capital Issues

Currency Adjustments Chg in Cash

Source: Company, DBS Bank

Page 16

2012A

2013A

2014F

Capital Expenditure (-)

2015F

Company Focus Frasers Centrepoint Ltd

Quarterly / Interim Income Statement (S$ m) FY Sep

Revenue

1Q2013

1Q2014

337

632

(177)

(387)

Gross Profit

160

244

Other Oper. (Exp)/Inc

(66)

(79)

94

165

Cost of Goods Sold

Operating Profit Other Non Opg (Exp)/Inc Associates & JV Inc Net Interest (Exp)/Inc Exceptional Gain/(Loss)

0

0

15

11

(18)

(10)

59

2

Pre-tax Profit

151

169

Tax

(21)

(30)

0

(17)

130

121

70

118

2

2

Revenue Gth (%)

nm

nm

EBITDA Gth (%)

nm

nm

Opg Profit Gth (%)

nm

nm

Net Profit Gth (%)

nm

nm

Gross Margins (%)

47.4

38.7

Opg Profit Margins (%)

27.9

26.1

Net Profit Margins (%)

38.5

19.1

Minority Interest Net Profit Net profit bef Except. EBITDA Growth

Margins

Source: Company, DBS Bank

Page 17

Boosted largely by development profits

Company Focus Frasers Centrepoint Ltd DBS Bank 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 (-10% to +15% total return over the next 12 months for small caps, -10% to +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 GENERAL DISCLOSURE/DISCLAIMER This report is prepared by DBS Bank Ltd. This report is solely intended for the clients of DBS Bank Ltd and DBS Vickers Securities (Singapore) Pte Ltd, its respective connected and associated corporations and affiliates (collectively, the “DBS Vickers Group”) only and no part of this document may be (i) copied, photocopied or duplicated in any form or by any means or (ii) redistributed without the prior written consent of DBS Bank Ltd. The research set out in this report is based on information obtained from sources believed to be reliable, but we (which collectively refers to DBS Bank Ltd., its respective connected and associated corporations, affiliates and their respective directors, officers, employees and agents (collectively, the “DBS Group”)) do not make any representation or warranty as to its accuracy, completeness or correctness. Opinions expressed are subject to change without notice. This document is prepared for general circulation. Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific addressee. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees, who should obtain separate independent legal or financial advice. The DBS Group accepts no liability whatsoever for any direct, indirect and/or consequential loss (including any claims for loss of profit) arising from any use of and/or reliance upon this document and/or further communication given in relation to this document. This document is not to be construed as an offer or a solicitation of an offer to buy or sell any securities. The DBS Group, along with its affiliates and/or persons associated with any of them may from time to time have interests in the securities mentioned in this document. The DBS Group may have positions in, and may effect transactions in securities mentioned herein and may also perform or seek to perform broking, investment banking and other banking services for these companies. Any valuations, opinions, estimates, forecasts, ratings or risk assessments herein constitutes a judgment as of the date of this report, and there can be no assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments. The information in this document is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the company (or companies) referred to in this report. The valuations, opinions, estimates, forecasts, ratings or risk assessments described in this report were based upon a number of estimates and assumptions and are inherently subject to significant uncertainties and contingencies. It can be expected that one or more of the estimates on which the valuations, opinions, estimates, forecasts, ratings or risk assessments were based will not materialize or will vary significantly from actual results. Therefore, the inclusion of the valuations, opinions, estimates, forecasts, ratings or risk assessments described herein IS NOT TO BE RELIED UPON as a representation and/or warranty by the DBS Group (and/or any persons associated with the aforesaid entities), that: (a) (b)

such valuations, opinions, estimates, forecasts, ratings or risk assessments or their underlying assumptions will be achieved, and there is any assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments stated therein.

Any assumptions made in this report that refers to commodities, are for the purposes of making forecasts for the company (or companies) mentioned herein. They are not to be construed as recommendations to trade in the physical commodity or in the futures contract relating to the commodity referred to in this report. DBS Vickers Securities (USA) Inc ("DBSVUSA")"), a U.S.-registered broker-dealer, does not have its own investment banking or research department, nor has it participated in any investment banking transaction as a manager or co-manager in the past twelve months. ANALYST CERTIFICATION 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 the date the report is published,the analyst and his/her spouse and/or relatives who are financially dependent on the analyst, do not hold interests in the securities recommended in this report (“interest” includes direct or indirect ownership of securities). COMPANY-SPECIFIC / REGULATORY DISCLOSURES 1. DBS Bank Ltd., DBS Vickers Securities (Singapore) Pte Ltd (“DBSVS”), their subsidiaries and/or other affiliates do not have a proprietary position in the securities recommended in this report except for Capitaland, Capitamall Asia, Wing Tai, Global Logistic Properties, Keppel Land, UOL as of 31 Dec 2013. 2. DBS Bank Ltd., DBSVS, DBSVUSA, their subsidiaries and/or other affiliates may beneficially own a total of 1% of any class of common equity securities of the company mentioned as of 31 Dec 2013. 3. Compensation for investment banking services: DBS Bank Ltd., DBSVS, DBSVUSA, their subsidiaries and/or other affiliates have received compensation, within the past 12 months, and within the next 3 months may receive or intends to seek compensation for investment banking services from the Capitaland, Wing Tai, Keppel Land, UOL. DBSVUSA does not have its own investment banking or research department, nor has it participated in any investment banking transaction as a manager or co-manager in the past twelve months. Any US persons wishing to obtain further information, including any clarification on disclosures in this disclaimer, or to effect a transaction in any security discussed in this document should contact DBSVUSA exclusively. Page 18

Company Focus Frasers Centrepoint Ltd

RESTRICTIONS ON DISTRIBUTION General This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. Australia

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This report is distributed in Malaysia by HwangDBS Vickers Research Sdn Bhd ("HDBSVR"). Recipients of this report, received from HDBSVR are to contact the undersigned at 603-2711 2222 in respect of any matters arising from or in connection with this report. In addition to the General Disclosure/Disclaimer by DBS Bank Ltd, the preparer of this report found at the preceding page, recipients of this report are advised that HDBSVR, its holding company HwangDBS Investment Bank Berhad, their directors, employees and parties related or associated with any of them may have positions in, and may effect transactions in the securities mentioned herein and may also perform or seek to perform broking, investment banking/corporate advisory and other services for the subject companies. They may also have received compensation and/or seek to obtain compensation for broking, investment banking/corporate advisory and other services from the subject companies. Wong Ming Tek Head of Research, HDBSVR

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This report is distributed in Singapore by DBS Bank Ltd (Company Regn. No. 196800306E) or DBSVS (Company Regn No. 198600294G), both of which are Exempt Financial Advisers as defined in the Financial Advisers Act and regulated by the Monetary Authority of Singapore. DBS Bank Ltd and/or DBSVS, may distribute reports produced by its respective foreign entities, affiliates or other foreign research houses pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, DBS Bank Ltd accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact DBS Bank Ltd at 6327 2288 for matters arising from, or in connection with the report.

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This report is being distributed in the UK by DBS Vickers Securities (UK) Ltd, who is an authorised person in the meaning of the Financial Services and Markets Act and is regulated by The Financial Conduct Authority. Research distributed in the UK is intended only for institutional clients.

Dubai

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