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OUE Commercial REITPresentation for Phillip Securities Virtual Webinar
11 August 2020
Important Notice
This presentation should be read in conjunction with the announcements released by OUE Commercial REIT (ldquoOUE C-REITrdquo) on 23 July 2020 (in relation to its
Financial Results for 2nd Quarter 2020)
This presentation is for information purposes only and does not constitute an invitation offer or solicitation of any offer to acquire purchase or subscribe for units in
OUE C-REIT (ldquoUnitsrdquo) The value of Units and the income derived from them if any may fall or rise The Units are not obligations of deposits in or guaranteed by
OUE Commercial REIT Management Pte Ltd (the ldquoManagerrdquo) DBS Trustee Limited (as trustee of OUE C-REIT) or any of its affiliates An investment in the Units is
subject to investment risks including the possible loss of the principal amount invested The past performance of OUE C-REIT is not necessarily indicative of the
future performance of OUE C-REIT
This presentation may contain forward-looking statements that involve risks and uncertainties Actual future performance outcomes and results may differ materially
from those expressed in forward-looking statements as a result of a number of risks uncertainties and assumptions These forward-looking statements speak only as
at the date of this presentation Past performance is not necessarily indicative of future performance No assurance can be given that future events will occur that
projections will be achieved or that assumptions are correct 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 costs) property expenses and governmental and public policy changes You are
cautioned not to place undue reliance on these forward-looking statements which are based on the Managerrsquos current view of future events
Investors should note that they will have no right to request the Manager to redeem their Units while the Units are listed on the Singapore Exchange Securities
Trading Limited (the ldquoSGX-STrdquo) It is intended that Unitholders may only deal in their Units through trading on the SGX-ST Listing of the Units on the SGX-ST does
not guarantee a liquid market for the Units
The information and opinions contained in this presentation are subject to change without notice
2
Agenda
3
Overview
Financial Performance and Capital Management
Commercial Segment
Hospitality Segment
Impact of COVID-19
Appendices
Overview of
OUE C-REIT
Overview of OUE C-REIT
(1) As at 30 June 2020
OUE Bayfront One Raffles Place OUE Downtown Office Lippo Plaza Mandarin Orchard Singapore Crowne Plaza Changi Airport Mandarin Gallery
High quality prime assets
3 Asset classes
7Total assets under management
S$68billion(1)7High quality prime assets
6 properties in Singapore and 1 property in Shanghai
5
Investment Mandate
Commercial Hospitality Hospitality-related
One of the
Largest Diversified
SGX-listed REITs
20More than in net lettable area
upscale hotel rooms
mil sq ft
1640
Strong Support
OUE Group
478 stake(1)
FY2015FY2016 FY2017
Total assets under management increased by more than four-folds since listing in 2014
Transformative merger with OUE Hospitality Trust in 2019 creates one of the largest diversified S-REITs
S$16b
AUM
S$34b
AUM
S$34b
AUM
S$35b
AUM
S$45b
AUM
S$68b
AUM
Milestones Since Listing
Listed on SGX-ST
with two assets ndash
OUE Bayfront and
Lippo Plaza
Maiden
acquisition
of One
Raffles
Place
(6795
effective
interest)
Established S$15
billion Multi-Currency
Debt Issuance
Programme
Completed
AEI to
upgrade
common
areas and
restrooms
at Lippo
Plaza
office tower
Debut
issuance of
S$150 million
303 fixed
rate notes
due 2020
Completed
acquisition
of OUE
Downtown
Office
Commenced AEI at
One Raffles Place
Shopping Mall with
co-working operator
Spaces anchoring
the AEI
Merger
by way of a trust scheme
of arrangement (effective
from 4 Sep 2019)
6
Commenced AEI at One
Raffles Place Tower 1 to
upgrade mechanical and
engineering equipment
FY2014
FY2018
FY2019
OUE Bayfront One Raffles PlaceOUE Downtown
OfficeLippo Plaza Mandarin Gallery
Mandarin Orchard
Singapore
Crowne Plaza
Changi AirportTotal
Description A landmark Grade A
office building located
at Collyer Quay
between the Marina
Bay downtown and
Raffles Place
completed in 2011
Iconic integrated
development with two
Grade A office towers
and a retail mall located
in Singaporersquos CBD at
Raffles Place latest AEI
completed in 2019
Grade A office space a
mixed-used
development with
offices retail and
serviced residences at
Shenton Way recently
refurbished in 2017
Grade A commercial
building located along
Huaihai Zhong Road
within the established
commercial district of
Huangpu in Puxi
Shanghai
Prime retail
landmark on
Orchard Road ndash
preferred location
for flagship stores
of international
brands
A world class
hospitality icon in
Singapore since
1971 Mandarin
Orchard Singapore is
the largest hotel
along Orchard Road
Award-winning hotel
at Singapore Changi
Airport and close to
Changi Business
Park with seamless
connectivity to Jewel
Changi Airport
NLA
Office 1869003
Retail 307561
Overall 2176564
1640 hotel rooms
Attributable
NLA (sq ft)
Office 378692
Retail 21132
Office 598814
Retail 99370
Office 530487 Office 361010
Retail 60776
Retail 126283 1077 hotel rooms 563 hotel rooms
Occupancy(1) Office 1000
Retail 989
Overall 999
Office 914
Retail 965
Overall 922
Office 917 Office 811
Retail 850
Overall 817
Retail 944 - - Office 913
Retail 936
Overall 916
Valuation(2) S$11810m
(S$2954 psf)
S$18620m(3)
(S$2667 psf)
S$9120m
(S$1719 psf)
RMB29500m
RMB50409 psm GFA
S$5793m(4)
(S$1374 psf)
S$4930m
(S$3904 psf)
S$12280m
(S$11m key)
S$4970m
(S$09m key)
S$67523m
7
Premium Portfolio of Assets
Strategically-located assets in the prime business districts of Singapore and Shanghai
(3) Based on OUB Centre Limitedrsquos 8154 interest in One Raffles Place OUE C-REIT has an indirect 8333 interest in OUB Centre Limited held via its wholly-owned subsidiaries
(4) Based on SGDCNY exchange rate of 15092 as at 30 June 2020
(1) Committed Occupancy as at 30 June 2020
(2) As at 31 December 2019
One Raffles Place224
OUE Bayfront215
Mandarin Orchard Singapore
175
OUE Downtown
Office146
Lippo Plaza99
Crowne Plaza Changi Airport
88
Mandarin Gallery53
Hospitality263
Office626
Retail111
Portfolio Composition
Commercial segment comprises the office andor retail contribution from OUE Bayfront One Raffles Place (6795 effective interest) OUE Downtown Office Lippo Plaza (912 strata interest) and Mandarin Gallery
(1) Based on independent valuations as at 31 December 2019 and SGDCNY exchange rate of 15092 as at 30 June 2020
(2) For 2Q 2020
(3) Mandarin Orchard Singapore and Crowne Plaza Changi Airportrsquos master lease agreements are subject to a minimum rent of S$450 million and S$225 million per annum respectively totalling S$675 million per annum
8
No single asset contributes more than224 to total revenue
Hospitality segment revenue wassupported by the minimum rent underthe hotelsrsquo respective master leaseagreements
Hotel master lease agreements provide minimum rent of
S$675 millionper annum(3)
By Segment
Contribution(2)
By Revenue
Contribution(2)
By Asset
Value(1)
One Raffles Place276
Mandarin Orchard
Singapore182OUE Bayfront
175
OUE Downtown
Office135
Lippo Plaza
86
Crowne Plaza Changi Airport73
Mandarin Gallery73
914 of assets under management inSingapore
70
192
164
110
50
16
38 34 38
69
219
2020 2021 2022 2023 2024 and beyond
Office Retail HospitalityHospitality223
Banking Insurance amp Financial Services
201
Retail105
Accounting amp Consultancy Services
99
Food amp Beverage54
Energy amp Commodities
49
Real Estate amp Property Services
48
Legal45
IT Media amp Telecommunications
44
Manufacturing amp Distribution
43
Services37
Maritime amp Logistics
23
Others16
Pharmaceuticals amp Healthcare
14
Tenant Base and Portfolio Lease Expiry Profile
9
Note Tenant by trade sector is based on gross rental income excluding any provisions of rental rebates
(1) Refers to contribution from Mandarin Gallery and all other retail components within OUE C-REITrsquos portfolio
(2) Post the quarter-end 29 of office gross rental income remains to be renewed for the balance of 2020
(3) ldquoWALErdquo refers to the weighted average lease term to expiry Based on committed tenancies and excludes turnover rent
WALE(3) of 35 years by Gross Rental Income
As at 30 Jun 2020
(1)
As of Jun 2020
(2)
Financial Performance amp
Capital Management
Key Highlights
11
Portfolio
Performance
916
Commercial Segment(2)
Committed Occupancy
Financial
Highlights
Capital
Management
Aggregate
Leverage
401
68 - 148
Singapore Office
Rental Reversions
58
312Q 2019 35
Weighted Average
Cost of Debt
8072Q 2019 761
Fixed Rate Debt
S$504237 YoY
2Q 2020
Net Property Income
m S$683406 YoY
1H 2020 Amount Available
for Distribution
m
2Q 2019 393
2Q 2019 945
S$643239 YoY
2Q 2020
Revenue
m
S$1000
Issued in June 2020
40 Notes due 2025
m
(1) After retention of S$138 million of which S$30 million is for ongoing working capital requirements
(2) Commercial segment comprises OUE Bayfront One Raffles Place (6795 effective interest) office components of OUE Downtown (ldquoOUE Downtown Officerdquo) Lippo Plaza (912 strata
interest) and Mandarin Gallery
S$545121 YoY
1H 2020
Distribution(1)
Gross Rental Income Due for
Renewal for Balance of 2020
m
Net property income in 2Q 2020 and 1H 2020 of S$504 million and S$1125 million respectively was higher YoY due primarily to
contribution from Mandarin Gallery Mandarin Orchard Singapore and Crowne Plaza Changi Airport upon completion of the merger with
OUE Hospitality Trust in 2019 This increase was partially offset by provision for rental rebates to tenants
Amount available for distribution of S$307 million in 2Q 2020 and S$683 million in 1H 2020 were respectively higher YoY
In view of continued uncertainties posed by the COVID-19 pandemic S$138 million of distribution was retained to preserve financial
flexibility Consequently 1H 2020 distribution to Unitholders was S$545 million 121 higher YoY
2Q 2020
(S$m)
2Q 2019
(S$m)
Change
()
1H 2020
(S$m)
1H 2019
(S$m)
Change
()
Revenue 643 519 239 1420 1072 324
Net Property Income 504 408 237 1125 843 334
Amount Available for
Distribution307 225 360 683 486 406
Distribution to Unitholders 545 486 121
Distribution per Unit 100(1) 168(2) (405)
12
Summary of Results ndash 2Q 2020 amp 1H 2020
(1) Based on 5415 million Units in issue and to be issued as at 30 June 2020
(2) Based on 2872 million Units in issue and to be issued as at 30 June 2019
Issued S$100 million 40 notes due 2025 on 24 June 2020 to refinance existing borrowings
Balance of 2020 debt to be refinanced ahead of maturity with average cost of debt expected to remain stable
With 807 of debt on fixed rate basis earnings are mitigated against interest rate fluctuations
As at 30 Jun 2020 As at 31 Mar 2020
Aggregate Leverage 401 402
Total debt S$2644m(1) S$2656m(2)
Weighted average cost of debt 31 pa 32 pa
Average term of debt 18 years 19 years
fixed rate debt 807 766
unsecured debt 416 407
Average term of fixed rate debt 21 years 21 years
Interest coverage ratio(3) 28x 29x
Capital Management
13
(1) Based on SGDCNY exchange rate of 15092 as at 30 June 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(2) Based on SGDCNY exchange rate of 14885 as at 31 March 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(3) Interest coverage ratio as prescribed under Appendix 6 of the Monetary Authority of Singaporersquos Code on Collective Investment Schemes (last revised on 16 April 2020)
Debt Maturity Profile as at 30 June 2020
342
150 107
425
450
644 253
150
100
23
2020 2021 2022 2023 2024 2025
Unsecured SGD Loan Secured SGD Loan
Share of OUB Centre Limiteds Unsecured SGD Loan MTN
Secured RMB Loan
S$ million
Commercial
Segment
474
350
519
408
Revenue Net Property Income
2Q 2020 2Q 2019
15
Portfolio Performance ndash Commercial Segment
2Q 2020 amp 1H 2020
86
141
(S$ million) (S$ million)
1083
821
1072
843
Revenue Net Property Income
1H 2020 1H 2019
10
26
The lower YoY performance in revenue and net property income was mainly due to provisions for rental rebates
extended to tenants to cushion the impact of business disruption caused by COVID-19 pandemic
Rental rebates committed to commercial tenants to date amount to approximately S$138 million
1000
914 917
811
944916
OUE Bayfront One Raffles Place OUE Downtown Office Lippo Plaza Mandarin Gallery Commercial Segment
Market 854(2)
16
Commercial Segment Occupancy
Office 913
Commercial segment committed occupancy declined 27 percentage points (ldquopptrdquo) quarter-on-quarter (ldquoQoQrdquo) to
916 as at 30 June 2020
In Singapore committed office occupancy eased 20 ppt QoQ to 937 as the weak economic outlook dampened
leasing momentum compounded by the suspension of leasing activities during the circuit breaker period
Mandarin Galleryrsquos committed occupancy fell 34 ppt QoQ to 944 due to continued operating challenges facing the
retail segment amidst the pandemic situation
Lippo Plazarsquos committed office occupancy declined 47 ppt QoQ to 811 as demand continued to be weak due to
persistent business uncertainty exacerbated by COVID-19
Retail 944 Commercial 916
Market 971(1)
As at 30 Jun 2020(1) Source CBRE Singapore MarketView 2Q 2020 for Singapore Grade A office occupancy of 971
(2) Source Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai CBD Grade A office occupancy of 854
Office Segment Occupancy
Source CBRE Colliers Shanghai
Singapore
Shanghai
17
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Chart Title
OUE Bayfront One Raffles Place OUE Downtown Singapore Core CBD Office
1000
914
971
917
75
80
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Lippo Plaza Shanghai CBD Grade A Office
811
854
Committed Office Rents In Line Or Above Market
2Q 2020Average Expired
RentsCommitted Rents(1) Sub-market
Comparable Sub-market Rents
Colliers(2) Savills(3)
Singapore
OUE Bayfront S$1150 S$1320New Downtown
Marina BayS$1198 S$1298
One Raffles Place S$889 S$880 ndash S$1020 Raffles Place S$1029 S$1017
OUE Downtown
OfficeS$732 S$800 ndash S$880
Shenton Way
Tanjong PagarS$1043 S$891 ndash S$926
Shanghai
Lippo Plaza RMB973 RMB550 ndash RMB1090 Puxi RMB883 RMB1040(4)
Singapore office properties continued to achieve rents which were in line or above their respective market rents
Continued to record positive rental reversions across Singapore office properties in 2Q 2020 ranging from 68 to 148
(1) Committed rents for renewals and new leases
(2) Source Colliers Singapore Office Quarterly 2Q 2020 for Singapore comparable sub-market rents Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai comparable sub-market rents
(3) Source Savills Singapore Office Briefing 1Q 2020 for Singapore comparable sub-market rents Savills Shanghai Office Market in Minutes Update 1Q 2020 for Shanghai comparable sub-market rents
(4) Shanghai Grade A office rent for prime districts of Nanjing Road West Huaihai Middle Road and Lujiazui as defined by Savills
Note For reference CBRE Researchrsquos 2Q 2020 Grade A Singapore office rent is S$1115 psfmth Sub-market rents are not published 18
Average Passing Rents
(1) Proforma average passing rents as at 30 September 2013 as disclosed in OUE C-REITrsquos Prospectus dated 17 January 2014
Average passing office rent for all
Singapore office properties
improved as of June 2020 due to
consecutive quarters of positive
rental reversions
Lippo Plazarsquos average passing
office rent was stable at RMB964
psmday as of June 2020
19
Singapore
(Office)
Shanghai
(Office)
Mandarin
Gallery
Average retail rent at Mandarin
Gallery remained stable
1040 10581175 1185 1143 1160 1198 1203 1209
1026 1028 992 945 968 969 988
694 727 731 739
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
OUE Bayfront One Raffles Place OUE Downtown Office
S$ psfmth
(1)
906 914
945
989979 981
965 970 964
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Lippo Plaza
RMB psmday
(1)
2360
2460
2360 2360
2250 22302170 2195 2195 2202
2247
2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Mandarin Gallery
S$ psfmth
4947
46
24
2119
18 17 1714
Bank ofAmerica Merrill
Lynch
Deloitte ampTouche LLP
LuxuryVentures
L Brands Allen amp OveryLLP
Aramco AsiaSingapore Pte
Ltd
Spaces Virgin ActiveSingapore Pte
Ltd
OUELimited
Hogan LovellsLee amp Lee
Top 10 Tenants ndash Commercial Segment
As of Jun 2020
20
By Gross Rental Income 272
Top 10 Tenants
(1) Including the hotel master lease arrangements for Mandarin Orchard Singapore and Crowne Plaza Changi Airport where OUE Limited is the master lessee OUE Limitedrsquos contribution
to the portfolio by gross rental income is 235
(1)
143
311
273
166
107
111
294
253
190
152
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income
91
90
Based on committed tenancies and excludes turnover rent
(1) ldquoNLArdquo refers to net lettable area
WALE of 19 years by NLA(1) and 22 years by Gross Rental Income
21
Lease Expiry Profile - Commercial Segment
As at 30 Jun 2020
111 of OUE C-REITrsquos commercial segment gross rental income is due for renewal for the rest of
2020 This has been reduced to 58 post the quarter-end
Completed (Year-to-date)
396282
223
6633
350
288249
76
37
2020 2021 2022 2023 2024 and beyond
69
323
256234
118
66
308
257 247
122
2020 2021 2022 2023 2024 and beyond
41
347
245216
151
43
313
245 241
158
2020 2021 2022 2023 2024 and beyond
22
Lease Expiry Profile by Commercial Property
OUE Bayfront
WALE 23 years (NLA) 23 Years (GRI)
OUE Downtown Office
WALE 12 years (NLA) 13 years (GRI)
One Raffles Place
WALE 21 years (NLA) 21 Years (GRI)
Lippo Plaza
WALE 23 years (NLA) 29 years (GRI)
As at 30 Jun 2020By NLA By Gross Rental Income Completed (Year-to-date)
8682
118109
28
25
(1)
(1) Post the quarter-end 83 of NLA and 86 of gross rental income remains
to be renewed for the balance of 2020
36
273
421
137 133
29
228
333
105
305
2020 2021 2022 2023 2024 and beyond
148
114
(1)
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Important Notice
This presentation should be read in conjunction with the announcements released by OUE Commercial REIT (ldquoOUE C-REITrdquo) on 23 July 2020 (in relation to its
Financial Results for 2nd Quarter 2020)
This presentation is for information purposes only and does not constitute an invitation offer or solicitation of any offer to acquire purchase or subscribe for units in
OUE C-REIT (ldquoUnitsrdquo) The value of Units and the income derived from them if any may fall or rise The Units are not obligations of deposits in or guaranteed by
OUE Commercial REIT Management Pte Ltd (the ldquoManagerrdquo) DBS Trustee Limited (as trustee of OUE C-REIT) or any of its affiliates An investment in the Units is
subject to investment risks including the possible loss of the principal amount invested The past performance of OUE C-REIT is not necessarily indicative of the
future performance of OUE C-REIT
This presentation may contain forward-looking statements that involve risks and uncertainties Actual future performance outcomes and results may differ materially
from those expressed in forward-looking statements as a result of a number of risks uncertainties and assumptions These forward-looking statements speak only as
at the date of this presentation Past performance is not necessarily indicative of future performance No assurance can be given that future events will occur that
projections will be achieved or that assumptions are correct 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 costs) property expenses and governmental and public policy changes You are
cautioned not to place undue reliance on these forward-looking statements which are based on the Managerrsquos current view of future events
Investors should note that they will have no right to request the Manager to redeem their Units while the Units are listed on the Singapore Exchange Securities
Trading Limited (the ldquoSGX-STrdquo) It is intended that Unitholders may only deal in their Units through trading on the SGX-ST Listing of the Units on the SGX-ST does
not guarantee a liquid market for the Units
The information and opinions contained in this presentation are subject to change without notice
2
Agenda
3
Overview
Financial Performance and Capital Management
Commercial Segment
Hospitality Segment
Impact of COVID-19
Appendices
Overview of
OUE C-REIT
Overview of OUE C-REIT
(1) As at 30 June 2020
OUE Bayfront One Raffles Place OUE Downtown Office Lippo Plaza Mandarin Orchard Singapore Crowne Plaza Changi Airport Mandarin Gallery
High quality prime assets
3 Asset classes
7Total assets under management
S$68billion(1)7High quality prime assets
6 properties in Singapore and 1 property in Shanghai
5
Investment Mandate
Commercial Hospitality Hospitality-related
One of the
Largest Diversified
SGX-listed REITs
20More than in net lettable area
upscale hotel rooms
mil sq ft
1640
Strong Support
OUE Group
478 stake(1)
FY2015FY2016 FY2017
Total assets under management increased by more than four-folds since listing in 2014
Transformative merger with OUE Hospitality Trust in 2019 creates one of the largest diversified S-REITs
S$16b
AUM
S$34b
AUM
S$34b
AUM
S$35b
AUM
S$45b
AUM
S$68b
AUM
Milestones Since Listing
Listed on SGX-ST
with two assets ndash
OUE Bayfront and
Lippo Plaza
Maiden
acquisition
of One
Raffles
Place
(6795
effective
interest)
Established S$15
billion Multi-Currency
Debt Issuance
Programme
Completed
AEI to
upgrade
common
areas and
restrooms
at Lippo
Plaza
office tower
Debut
issuance of
S$150 million
303 fixed
rate notes
due 2020
Completed
acquisition
of OUE
Downtown
Office
Commenced AEI at
One Raffles Place
Shopping Mall with
co-working operator
Spaces anchoring
the AEI
Merger
by way of a trust scheme
of arrangement (effective
from 4 Sep 2019)
6
Commenced AEI at One
Raffles Place Tower 1 to
upgrade mechanical and
engineering equipment
FY2014
FY2018
FY2019
OUE Bayfront One Raffles PlaceOUE Downtown
OfficeLippo Plaza Mandarin Gallery
Mandarin Orchard
Singapore
Crowne Plaza
Changi AirportTotal
Description A landmark Grade A
office building located
at Collyer Quay
between the Marina
Bay downtown and
Raffles Place
completed in 2011
Iconic integrated
development with two
Grade A office towers
and a retail mall located
in Singaporersquos CBD at
Raffles Place latest AEI
completed in 2019
Grade A office space a
mixed-used
development with
offices retail and
serviced residences at
Shenton Way recently
refurbished in 2017
Grade A commercial
building located along
Huaihai Zhong Road
within the established
commercial district of
Huangpu in Puxi
Shanghai
Prime retail
landmark on
Orchard Road ndash
preferred location
for flagship stores
of international
brands
A world class
hospitality icon in
Singapore since
1971 Mandarin
Orchard Singapore is
the largest hotel
along Orchard Road
Award-winning hotel
at Singapore Changi
Airport and close to
Changi Business
Park with seamless
connectivity to Jewel
Changi Airport
NLA
Office 1869003
Retail 307561
Overall 2176564
1640 hotel rooms
Attributable
NLA (sq ft)
Office 378692
Retail 21132
Office 598814
Retail 99370
Office 530487 Office 361010
Retail 60776
Retail 126283 1077 hotel rooms 563 hotel rooms
Occupancy(1) Office 1000
Retail 989
Overall 999
Office 914
Retail 965
Overall 922
Office 917 Office 811
Retail 850
Overall 817
Retail 944 - - Office 913
Retail 936
Overall 916
Valuation(2) S$11810m
(S$2954 psf)
S$18620m(3)
(S$2667 psf)
S$9120m
(S$1719 psf)
RMB29500m
RMB50409 psm GFA
S$5793m(4)
(S$1374 psf)
S$4930m
(S$3904 psf)
S$12280m
(S$11m key)
S$4970m
(S$09m key)
S$67523m
7
Premium Portfolio of Assets
Strategically-located assets in the prime business districts of Singapore and Shanghai
(3) Based on OUB Centre Limitedrsquos 8154 interest in One Raffles Place OUE C-REIT has an indirect 8333 interest in OUB Centre Limited held via its wholly-owned subsidiaries
(4) Based on SGDCNY exchange rate of 15092 as at 30 June 2020
(1) Committed Occupancy as at 30 June 2020
(2) As at 31 December 2019
One Raffles Place224
OUE Bayfront215
Mandarin Orchard Singapore
175
OUE Downtown
Office146
Lippo Plaza99
Crowne Plaza Changi Airport
88
Mandarin Gallery53
Hospitality263
Office626
Retail111
Portfolio Composition
Commercial segment comprises the office andor retail contribution from OUE Bayfront One Raffles Place (6795 effective interest) OUE Downtown Office Lippo Plaza (912 strata interest) and Mandarin Gallery
(1) Based on independent valuations as at 31 December 2019 and SGDCNY exchange rate of 15092 as at 30 June 2020
(2) For 2Q 2020
(3) Mandarin Orchard Singapore and Crowne Plaza Changi Airportrsquos master lease agreements are subject to a minimum rent of S$450 million and S$225 million per annum respectively totalling S$675 million per annum
8
No single asset contributes more than224 to total revenue
Hospitality segment revenue wassupported by the minimum rent underthe hotelsrsquo respective master leaseagreements
Hotel master lease agreements provide minimum rent of
S$675 millionper annum(3)
By Segment
Contribution(2)
By Revenue
Contribution(2)
By Asset
Value(1)
One Raffles Place276
Mandarin Orchard
Singapore182OUE Bayfront
175
OUE Downtown
Office135
Lippo Plaza
86
Crowne Plaza Changi Airport73
Mandarin Gallery73
914 of assets under management inSingapore
70
192
164
110
50
16
38 34 38
69
219
2020 2021 2022 2023 2024 and beyond
Office Retail HospitalityHospitality223
Banking Insurance amp Financial Services
201
Retail105
Accounting amp Consultancy Services
99
Food amp Beverage54
Energy amp Commodities
49
Real Estate amp Property Services
48
Legal45
IT Media amp Telecommunications
44
Manufacturing amp Distribution
43
Services37
Maritime amp Logistics
23
Others16
Pharmaceuticals amp Healthcare
14
Tenant Base and Portfolio Lease Expiry Profile
9
Note Tenant by trade sector is based on gross rental income excluding any provisions of rental rebates
(1) Refers to contribution from Mandarin Gallery and all other retail components within OUE C-REITrsquos portfolio
(2) Post the quarter-end 29 of office gross rental income remains to be renewed for the balance of 2020
(3) ldquoWALErdquo refers to the weighted average lease term to expiry Based on committed tenancies and excludes turnover rent
WALE(3) of 35 years by Gross Rental Income
As at 30 Jun 2020
(1)
As of Jun 2020
(2)
Financial Performance amp
Capital Management
Key Highlights
11
Portfolio
Performance
916
Commercial Segment(2)
Committed Occupancy
Financial
Highlights
Capital
Management
Aggregate
Leverage
401
68 - 148
Singapore Office
Rental Reversions
58
312Q 2019 35
Weighted Average
Cost of Debt
8072Q 2019 761
Fixed Rate Debt
S$504237 YoY
2Q 2020
Net Property Income
m S$683406 YoY
1H 2020 Amount Available
for Distribution
m
2Q 2019 393
2Q 2019 945
S$643239 YoY
2Q 2020
Revenue
m
S$1000
Issued in June 2020
40 Notes due 2025
m
(1) After retention of S$138 million of which S$30 million is for ongoing working capital requirements
(2) Commercial segment comprises OUE Bayfront One Raffles Place (6795 effective interest) office components of OUE Downtown (ldquoOUE Downtown Officerdquo) Lippo Plaza (912 strata
interest) and Mandarin Gallery
S$545121 YoY
1H 2020
Distribution(1)
Gross Rental Income Due for
Renewal for Balance of 2020
m
Net property income in 2Q 2020 and 1H 2020 of S$504 million and S$1125 million respectively was higher YoY due primarily to
contribution from Mandarin Gallery Mandarin Orchard Singapore and Crowne Plaza Changi Airport upon completion of the merger with
OUE Hospitality Trust in 2019 This increase was partially offset by provision for rental rebates to tenants
Amount available for distribution of S$307 million in 2Q 2020 and S$683 million in 1H 2020 were respectively higher YoY
In view of continued uncertainties posed by the COVID-19 pandemic S$138 million of distribution was retained to preserve financial
flexibility Consequently 1H 2020 distribution to Unitholders was S$545 million 121 higher YoY
2Q 2020
(S$m)
2Q 2019
(S$m)
Change
()
1H 2020
(S$m)
1H 2019
(S$m)
Change
()
Revenue 643 519 239 1420 1072 324
Net Property Income 504 408 237 1125 843 334
Amount Available for
Distribution307 225 360 683 486 406
Distribution to Unitholders 545 486 121
Distribution per Unit 100(1) 168(2) (405)
12
Summary of Results ndash 2Q 2020 amp 1H 2020
(1) Based on 5415 million Units in issue and to be issued as at 30 June 2020
(2) Based on 2872 million Units in issue and to be issued as at 30 June 2019
Issued S$100 million 40 notes due 2025 on 24 June 2020 to refinance existing borrowings
Balance of 2020 debt to be refinanced ahead of maturity with average cost of debt expected to remain stable
With 807 of debt on fixed rate basis earnings are mitigated against interest rate fluctuations
As at 30 Jun 2020 As at 31 Mar 2020
Aggregate Leverage 401 402
Total debt S$2644m(1) S$2656m(2)
Weighted average cost of debt 31 pa 32 pa
Average term of debt 18 years 19 years
fixed rate debt 807 766
unsecured debt 416 407
Average term of fixed rate debt 21 years 21 years
Interest coverage ratio(3) 28x 29x
Capital Management
13
(1) Based on SGDCNY exchange rate of 15092 as at 30 June 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(2) Based on SGDCNY exchange rate of 14885 as at 31 March 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(3) Interest coverage ratio as prescribed under Appendix 6 of the Monetary Authority of Singaporersquos Code on Collective Investment Schemes (last revised on 16 April 2020)
Debt Maturity Profile as at 30 June 2020
342
150 107
425
450
644 253
150
100
23
2020 2021 2022 2023 2024 2025
Unsecured SGD Loan Secured SGD Loan
Share of OUB Centre Limiteds Unsecured SGD Loan MTN
Secured RMB Loan
S$ million
Commercial
Segment
474
350
519
408
Revenue Net Property Income
2Q 2020 2Q 2019
15
Portfolio Performance ndash Commercial Segment
2Q 2020 amp 1H 2020
86
141
(S$ million) (S$ million)
1083
821
1072
843
Revenue Net Property Income
1H 2020 1H 2019
10
26
The lower YoY performance in revenue and net property income was mainly due to provisions for rental rebates
extended to tenants to cushion the impact of business disruption caused by COVID-19 pandemic
Rental rebates committed to commercial tenants to date amount to approximately S$138 million
1000
914 917
811
944916
OUE Bayfront One Raffles Place OUE Downtown Office Lippo Plaza Mandarin Gallery Commercial Segment
Market 854(2)
16
Commercial Segment Occupancy
Office 913
Commercial segment committed occupancy declined 27 percentage points (ldquopptrdquo) quarter-on-quarter (ldquoQoQrdquo) to
916 as at 30 June 2020
In Singapore committed office occupancy eased 20 ppt QoQ to 937 as the weak economic outlook dampened
leasing momentum compounded by the suspension of leasing activities during the circuit breaker period
Mandarin Galleryrsquos committed occupancy fell 34 ppt QoQ to 944 due to continued operating challenges facing the
retail segment amidst the pandemic situation
Lippo Plazarsquos committed office occupancy declined 47 ppt QoQ to 811 as demand continued to be weak due to
persistent business uncertainty exacerbated by COVID-19
Retail 944 Commercial 916
Market 971(1)
As at 30 Jun 2020(1) Source CBRE Singapore MarketView 2Q 2020 for Singapore Grade A office occupancy of 971
(2) Source Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai CBD Grade A office occupancy of 854
Office Segment Occupancy
Source CBRE Colliers Shanghai
Singapore
Shanghai
17
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Chart Title
OUE Bayfront One Raffles Place OUE Downtown Singapore Core CBD Office
1000
914
971
917
75
80
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Lippo Plaza Shanghai CBD Grade A Office
811
854
Committed Office Rents In Line Or Above Market
2Q 2020Average Expired
RentsCommitted Rents(1) Sub-market
Comparable Sub-market Rents
Colliers(2) Savills(3)
Singapore
OUE Bayfront S$1150 S$1320New Downtown
Marina BayS$1198 S$1298
One Raffles Place S$889 S$880 ndash S$1020 Raffles Place S$1029 S$1017
OUE Downtown
OfficeS$732 S$800 ndash S$880
Shenton Way
Tanjong PagarS$1043 S$891 ndash S$926
Shanghai
Lippo Plaza RMB973 RMB550 ndash RMB1090 Puxi RMB883 RMB1040(4)
Singapore office properties continued to achieve rents which were in line or above their respective market rents
Continued to record positive rental reversions across Singapore office properties in 2Q 2020 ranging from 68 to 148
(1) Committed rents for renewals and new leases
(2) Source Colliers Singapore Office Quarterly 2Q 2020 for Singapore comparable sub-market rents Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai comparable sub-market rents
(3) Source Savills Singapore Office Briefing 1Q 2020 for Singapore comparable sub-market rents Savills Shanghai Office Market in Minutes Update 1Q 2020 for Shanghai comparable sub-market rents
(4) Shanghai Grade A office rent for prime districts of Nanjing Road West Huaihai Middle Road and Lujiazui as defined by Savills
Note For reference CBRE Researchrsquos 2Q 2020 Grade A Singapore office rent is S$1115 psfmth Sub-market rents are not published 18
Average Passing Rents
(1) Proforma average passing rents as at 30 September 2013 as disclosed in OUE C-REITrsquos Prospectus dated 17 January 2014
Average passing office rent for all
Singapore office properties
improved as of June 2020 due to
consecutive quarters of positive
rental reversions
Lippo Plazarsquos average passing
office rent was stable at RMB964
psmday as of June 2020
19
Singapore
(Office)
Shanghai
(Office)
Mandarin
Gallery
Average retail rent at Mandarin
Gallery remained stable
1040 10581175 1185 1143 1160 1198 1203 1209
1026 1028 992 945 968 969 988
694 727 731 739
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
OUE Bayfront One Raffles Place OUE Downtown Office
S$ psfmth
(1)
906 914
945
989979 981
965 970 964
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Lippo Plaza
RMB psmday
(1)
2360
2460
2360 2360
2250 22302170 2195 2195 2202
2247
2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Mandarin Gallery
S$ psfmth
4947
46
24
2119
18 17 1714
Bank ofAmerica Merrill
Lynch
Deloitte ampTouche LLP
LuxuryVentures
L Brands Allen amp OveryLLP
Aramco AsiaSingapore Pte
Ltd
Spaces Virgin ActiveSingapore Pte
Ltd
OUELimited
Hogan LovellsLee amp Lee
Top 10 Tenants ndash Commercial Segment
As of Jun 2020
20
By Gross Rental Income 272
Top 10 Tenants
(1) Including the hotel master lease arrangements for Mandarin Orchard Singapore and Crowne Plaza Changi Airport where OUE Limited is the master lessee OUE Limitedrsquos contribution
to the portfolio by gross rental income is 235
(1)
143
311
273
166
107
111
294
253
190
152
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income
91
90
Based on committed tenancies and excludes turnover rent
(1) ldquoNLArdquo refers to net lettable area
WALE of 19 years by NLA(1) and 22 years by Gross Rental Income
21
Lease Expiry Profile - Commercial Segment
As at 30 Jun 2020
111 of OUE C-REITrsquos commercial segment gross rental income is due for renewal for the rest of
2020 This has been reduced to 58 post the quarter-end
Completed (Year-to-date)
396282
223
6633
350
288249
76
37
2020 2021 2022 2023 2024 and beyond
69
323
256234
118
66
308
257 247
122
2020 2021 2022 2023 2024 and beyond
41
347
245216
151
43
313
245 241
158
2020 2021 2022 2023 2024 and beyond
22
Lease Expiry Profile by Commercial Property
OUE Bayfront
WALE 23 years (NLA) 23 Years (GRI)
OUE Downtown Office
WALE 12 years (NLA) 13 years (GRI)
One Raffles Place
WALE 21 years (NLA) 21 Years (GRI)
Lippo Plaza
WALE 23 years (NLA) 29 years (GRI)
As at 30 Jun 2020By NLA By Gross Rental Income Completed (Year-to-date)
8682
118109
28
25
(1)
(1) Post the quarter-end 83 of NLA and 86 of gross rental income remains
to be renewed for the balance of 2020
36
273
421
137 133
29
228
333
105
305
2020 2021 2022 2023 2024 and beyond
148
114
(1)
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Agenda
3
Overview
Financial Performance and Capital Management
Commercial Segment
Hospitality Segment
Impact of COVID-19
Appendices
Overview of
OUE C-REIT
Overview of OUE C-REIT
(1) As at 30 June 2020
OUE Bayfront One Raffles Place OUE Downtown Office Lippo Plaza Mandarin Orchard Singapore Crowne Plaza Changi Airport Mandarin Gallery
High quality prime assets
3 Asset classes
7Total assets under management
S$68billion(1)7High quality prime assets
6 properties in Singapore and 1 property in Shanghai
5
Investment Mandate
Commercial Hospitality Hospitality-related
One of the
Largest Diversified
SGX-listed REITs
20More than in net lettable area
upscale hotel rooms
mil sq ft
1640
Strong Support
OUE Group
478 stake(1)
FY2015FY2016 FY2017
Total assets under management increased by more than four-folds since listing in 2014
Transformative merger with OUE Hospitality Trust in 2019 creates one of the largest diversified S-REITs
S$16b
AUM
S$34b
AUM
S$34b
AUM
S$35b
AUM
S$45b
AUM
S$68b
AUM
Milestones Since Listing
Listed on SGX-ST
with two assets ndash
OUE Bayfront and
Lippo Plaza
Maiden
acquisition
of One
Raffles
Place
(6795
effective
interest)
Established S$15
billion Multi-Currency
Debt Issuance
Programme
Completed
AEI to
upgrade
common
areas and
restrooms
at Lippo
Plaza
office tower
Debut
issuance of
S$150 million
303 fixed
rate notes
due 2020
Completed
acquisition
of OUE
Downtown
Office
Commenced AEI at
One Raffles Place
Shopping Mall with
co-working operator
Spaces anchoring
the AEI
Merger
by way of a trust scheme
of arrangement (effective
from 4 Sep 2019)
6
Commenced AEI at One
Raffles Place Tower 1 to
upgrade mechanical and
engineering equipment
FY2014
FY2018
FY2019
OUE Bayfront One Raffles PlaceOUE Downtown
OfficeLippo Plaza Mandarin Gallery
Mandarin Orchard
Singapore
Crowne Plaza
Changi AirportTotal
Description A landmark Grade A
office building located
at Collyer Quay
between the Marina
Bay downtown and
Raffles Place
completed in 2011
Iconic integrated
development with two
Grade A office towers
and a retail mall located
in Singaporersquos CBD at
Raffles Place latest AEI
completed in 2019
Grade A office space a
mixed-used
development with
offices retail and
serviced residences at
Shenton Way recently
refurbished in 2017
Grade A commercial
building located along
Huaihai Zhong Road
within the established
commercial district of
Huangpu in Puxi
Shanghai
Prime retail
landmark on
Orchard Road ndash
preferred location
for flagship stores
of international
brands
A world class
hospitality icon in
Singapore since
1971 Mandarin
Orchard Singapore is
the largest hotel
along Orchard Road
Award-winning hotel
at Singapore Changi
Airport and close to
Changi Business
Park with seamless
connectivity to Jewel
Changi Airport
NLA
Office 1869003
Retail 307561
Overall 2176564
1640 hotel rooms
Attributable
NLA (sq ft)
Office 378692
Retail 21132
Office 598814
Retail 99370
Office 530487 Office 361010
Retail 60776
Retail 126283 1077 hotel rooms 563 hotel rooms
Occupancy(1) Office 1000
Retail 989
Overall 999
Office 914
Retail 965
Overall 922
Office 917 Office 811
Retail 850
Overall 817
Retail 944 - - Office 913
Retail 936
Overall 916
Valuation(2) S$11810m
(S$2954 psf)
S$18620m(3)
(S$2667 psf)
S$9120m
(S$1719 psf)
RMB29500m
RMB50409 psm GFA
S$5793m(4)
(S$1374 psf)
S$4930m
(S$3904 psf)
S$12280m
(S$11m key)
S$4970m
(S$09m key)
S$67523m
7
Premium Portfolio of Assets
Strategically-located assets in the prime business districts of Singapore and Shanghai
(3) Based on OUB Centre Limitedrsquos 8154 interest in One Raffles Place OUE C-REIT has an indirect 8333 interest in OUB Centre Limited held via its wholly-owned subsidiaries
(4) Based on SGDCNY exchange rate of 15092 as at 30 June 2020
(1) Committed Occupancy as at 30 June 2020
(2) As at 31 December 2019
One Raffles Place224
OUE Bayfront215
Mandarin Orchard Singapore
175
OUE Downtown
Office146
Lippo Plaza99
Crowne Plaza Changi Airport
88
Mandarin Gallery53
Hospitality263
Office626
Retail111
Portfolio Composition
Commercial segment comprises the office andor retail contribution from OUE Bayfront One Raffles Place (6795 effective interest) OUE Downtown Office Lippo Plaza (912 strata interest) and Mandarin Gallery
(1) Based on independent valuations as at 31 December 2019 and SGDCNY exchange rate of 15092 as at 30 June 2020
(2) For 2Q 2020
(3) Mandarin Orchard Singapore and Crowne Plaza Changi Airportrsquos master lease agreements are subject to a minimum rent of S$450 million and S$225 million per annum respectively totalling S$675 million per annum
8
No single asset contributes more than224 to total revenue
Hospitality segment revenue wassupported by the minimum rent underthe hotelsrsquo respective master leaseagreements
Hotel master lease agreements provide minimum rent of
S$675 millionper annum(3)
By Segment
Contribution(2)
By Revenue
Contribution(2)
By Asset
Value(1)
One Raffles Place276
Mandarin Orchard
Singapore182OUE Bayfront
175
OUE Downtown
Office135
Lippo Plaza
86
Crowne Plaza Changi Airport73
Mandarin Gallery73
914 of assets under management inSingapore
70
192
164
110
50
16
38 34 38
69
219
2020 2021 2022 2023 2024 and beyond
Office Retail HospitalityHospitality223
Banking Insurance amp Financial Services
201
Retail105
Accounting amp Consultancy Services
99
Food amp Beverage54
Energy amp Commodities
49
Real Estate amp Property Services
48
Legal45
IT Media amp Telecommunications
44
Manufacturing amp Distribution
43
Services37
Maritime amp Logistics
23
Others16
Pharmaceuticals amp Healthcare
14
Tenant Base and Portfolio Lease Expiry Profile
9
Note Tenant by trade sector is based on gross rental income excluding any provisions of rental rebates
(1) Refers to contribution from Mandarin Gallery and all other retail components within OUE C-REITrsquos portfolio
(2) Post the quarter-end 29 of office gross rental income remains to be renewed for the balance of 2020
(3) ldquoWALErdquo refers to the weighted average lease term to expiry Based on committed tenancies and excludes turnover rent
WALE(3) of 35 years by Gross Rental Income
As at 30 Jun 2020
(1)
As of Jun 2020
(2)
Financial Performance amp
Capital Management
Key Highlights
11
Portfolio
Performance
916
Commercial Segment(2)
Committed Occupancy
Financial
Highlights
Capital
Management
Aggregate
Leverage
401
68 - 148
Singapore Office
Rental Reversions
58
312Q 2019 35
Weighted Average
Cost of Debt
8072Q 2019 761
Fixed Rate Debt
S$504237 YoY
2Q 2020
Net Property Income
m S$683406 YoY
1H 2020 Amount Available
for Distribution
m
2Q 2019 393
2Q 2019 945
S$643239 YoY
2Q 2020
Revenue
m
S$1000
Issued in June 2020
40 Notes due 2025
m
(1) After retention of S$138 million of which S$30 million is for ongoing working capital requirements
(2) Commercial segment comprises OUE Bayfront One Raffles Place (6795 effective interest) office components of OUE Downtown (ldquoOUE Downtown Officerdquo) Lippo Plaza (912 strata
interest) and Mandarin Gallery
S$545121 YoY
1H 2020
Distribution(1)
Gross Rental Income Due for
Renewal for Balance of 2020
m
Net property income in 2Q 2020 and 1H 2020 of S$504 million and S$1125 million respectively was higher YoY due primarily to
contribution from Mandarin Gallery Mandarin Orchard Singapore and Crowne Plaza Changi Airport upon completion of the merger with
OUE Hospitality Trust in 2019 This increase was partially offset by provision for rental rebates to tenants
Amount available for distribution of S$307 million in 2Q 2020 and S$683 million in 1H 2020 were respectively higher YoY
In view of continued uncertainties posed by the COVID-19 pandemic S$138 million of distribution was retained to preserve financial
flexibility Consequently 1H 2020 distribution to Unitholders was S$545 million 121 higher YoY
2Q 2020
(S$m)
2Q 2019
(S$m)
Change
()
1H 2020
(S$m)
1H 2019
(S$m)
Change
()
Revenue 643 519 239 1420 1072 324
Net Property Income 504 408 237 1125 843 334
Amount Available for
Distribution307 225 360 683 486 406
Distribution to Unitholders 545 486 121
Distribution per Unit 100(1) 168(2) (405)
12
Summary of Results ndash 2Q 2020 amp 1H 2020
(1) Based on 5415 million Units in issue and to be issued as at 30 June 2020
(2) Based on 2872 million Units in issue and to be issued as at 30 June 2019
Issued S$100 million 40 notes due 2025 on 24 June 2020 to refinance existing borrowings
Balance of 2020 debt to be refinanced ahead of maturity with average cost of debt expected to remain stable
With 807 of debt on fixed rate basis earnings are mitigated against interest rate fluctuations
As at 30 Jun 2020 As at 31 Mar 2020
Aggregate Leverage 401 402
Total debt S$2644m(1) S$2656m(2)
Weighted average cost of debt 31 pa 32 pa
Average term of debt 18 years 19 years
fixed rate debt 807 766
unsecured debt 416 407
Average term of fixed rate debt 21 years 21 years
Interest coverage ratio(3) 28x 29x
Capital Management
13
(1) Based on SGDCNY exchange rate of 15092 as at 30 June 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(2) Based on SGDCNY exchange rate of 14885 as at 31 March 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(3) Interest coverage ratio as prescribed under Appendix 6 of the Monetary Authority of Singaporersquos Code on Collective Investment Schemes (last revised on 16 April 2020)
Debt Maturity Profile as at 30 June 2020
342
150 107
425
450
644 253
150
100
23
2020 2021 2022 2023 2024 2025
Unsecured SGD Loan Secured SGD Loan
Share of OUB Centre Limiteds Unsecured SGD Loan MTN
Secured RMB Loan
S$ million
Commercial
Segment
474
350
519
408
Revenue Net Property Income
2Q 2020 2Q 2019
15
Portfolio Performance ndash Commercial Segment
2Q 2020 amp 1H 2020
86
141
(S$ million) (S$ million)
1083
821
1072
843
Revenue Net Property Income
1H 2020 1H 2019
10
26
The lower YoY performance in revenue and net property income was mainly due to provisions for rental rebates
extended to tenants to cushion the impact of business disruption caused by COVID-19 pandemic
Rental rebates committed to commercial tenants to date amount to approximately S$138 million
1000
914 917
811
944916
OUE Bayfront One Raffles Place OUE Downtown Office Lippo Plaza Mandarin Gallery Commercial Segment
Market 854(2)
16
Commercial Segment Occupancy
Office 913
Commercial segment committed occupancy declined 27 percentage points (ldquopptrdquo) quarter-on-quarter (ldquoQoQrdquo) to
916 as at 30 June 2020
In Singapore committed office occupancy eased 20 ppt QoQ to 937 as the weak economic outlook dampened
leasing momentum compounded by the suspension of leasing activities during the circuit breaker period
Mandarin Galleryrsquos committed occupancy fell 34 ppt QoQ to 944 due to continued operating challenges facing the
retail segment amidst the pandemic situation
Lippo Plazarsquos committed office occupancy declined 47 ppt QoQ to 811 as demand continued to be weak due to
persistent business uncertainty exacerbated by COVID-19
Retail 944 Commercial 916
Market 971(1)
As at 30 Jun 2020(1) Source CBRE Singapore MarketView 2Q 2020 for Singapore Grade A office occupancy of 971
(2) Source Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai CBD Grade A office occupancy of 854
Office Segment Occupancy
Source CBRE Colliers Shanghai
Singapore
Shanghai
17
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Chart Title
OUE Bayfront One Raffles Place OUE Downtown Singapore Core CBD Office
1000
914
971
917
75
80
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Lippo Plaza Shanghai CBD Grade A Office
811
854
Committed Office Rents In Line Or Above Market
2Q 2020Average Expired
RentsCommitted Rents(1) Sub-market
Comparable Sub-market Rents
Colliers(2) Savills(3)
Singapore
OUE Bayfront S$1150 S$1320New Downtown
Marina BayS$1198 S$1298
One Raffles Place S$889 S$880 ndash S$1020 Raffles Place S$1029 S$1017
OUE Downtown
OfficeS$732 S$800 ndash S$880
Shenton Way
Tanjong PagarS$1043 S$891 ndash S$926
Shanghai
Lippo Plaza RMB973 RMB550 ndash RMB1090 Puxi RMB883 RMB1040(4)
Singapore office properties continued to achieve rents which were in line or above their respective market rents
Continued to record positive rental reversions across Singapore office properties in 2Q 2020 ranging from 68 to 148
(1) Committed rents for renewals and new leases
(2) Source Colliers Singapore Office Quarterly 2Q 2020 for Singapore comparable sub-market rents Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai comparable sub-market rents
(3) Source Savills Singapore Office Briefing 1Q 2020 for Singapore comparable sub-market rents Savills Shanghai Office Market in Minutes Update 1Q 2020 for Shanghai comparable sub-market rents
(4) Shanghai Grade A office rent for prime districts of Nanjing Road West Huaihai Middle Road and Lujiazui as defined by Savills
Note For reference CBRE Researchrsquos 2Q 2020 Grade A Singapore office rent is S$1115 psfmth Sub-market rents are not published 18
Average Passing Rents
(1) Proforma average passing rents as at 30 September 2013 as disclosed in OUE C-REITrsquos Prospectus dated 17 January 2014
Average passing office rent for all
Singapore office properties
improved as of June 2020 due to
consecutive quarters of positive
rental reversions
Lippo Plazarsquos average passing
office rent was stable at RMB964
psmday as of June 2020
19
Singapore
(Office)
Shanghai
(Office)
Mandarin
Gallery
Average retail rent at Mandarin
Gallery remained stable
1040 10581175 1185 1143 1160 1198 1203 1209
1026 1028 992 945 968 969 988
694 727 731 739
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
OUE Bayfront One Raffles Place OUE Downtown Office
S$ psfmth
(1)
906 914
945
989979 981
965 970 964
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Lippo Plaza
RMB psmday
(1)
2360
2460
2360 2360
2250 22302170 2195 2195 2202
2247
2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Mandarin Gallery
S$ psfmth
4947
46
24
2119
18 17 1714
Bank ofAmerica Merrill
Lynch
Deloitte ampTouche LLP
LuxuryVentures
L Brands Allen amp OveryLLP
Aramco AsiaSingapore Pte
Ltd
Spaces Virgin ActiveSingapore Pte
Ltd
OUELimited
Hogan LovellsLee amp Lee
Top 10 Tenants ndash Commercial Segment
As of Jun 2020
20
By Gross Rental Income 272
Top 10 Tenants
(1) Including the hotel master lease arrangements for Mandarin Orchard Singapore and Crowne Plaza Changi Airport where OUE Limited is the master lessee OUE Limitedrsquos contribution
to the portfolio by gross rental income is 235
(1)
143
311
273
166
107
111
294
253
190
152
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income
91
90
Based on committed tenancies and excludes turnover rent
(1) ldquoNLArdquo refers to net lettable area
WALE of 19 years by NLA(1) and 22 years by Gross Rental Income
21
Lease Expiry Profile - Commercial Segment
As at 30 Jun 2020
111 of OUE C-REITrsquos commercial segment gross rental income is due for renewal for the rest of
2020 This has been reduced to 58 post the quarter-end
Completed (Year-to-date)
396282
223
6633
350
288249
76
37
2020 2021 2022 2023 2024 and beyond
69
323
256234
118
66
308
257 247
122
2020 2021 2022 2023 2024 and beyond
41
347
245216
151
43
313
245 241
158
2020 2021 2022 2023 2024 and beyond
22
Lease Expiry Profile by Commercial Property
OUE Bayfront
WALE 23 years (NLA) 23 Years (GRI)
OUE Downtown Office
WALE 12 years (NLA) 13 years (GRI)
One Raffles Place
WALE 21 years (NLA) 21 Years (GRI)
Lippo Plaza
WALE 23 years (NLA) 29 years (GRI)
As at 30 Jun 2020By NLA By Gross Rental Income Completed (Year-to-date)
8682
118109
28
25
(1)
(1) Post the quarter-end 83 of NLA and 86 of gross rental income remains
to be renewed for the balance of 2020
36
273
421
137 133
29
228
333
105
305
2020 2021 2022 2023 2024 and beyond
148
114
(1)
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Overview of
OUE C-REIT
Overview of OUE C-REIT
(1) As at 30 June 2020
OUE Bayfront One Raffles Place OUE Downtown Office Lippo Plaza Mandarin Orchard Singapore Crowne Plaza Changi Airport Mandarin Gallery
High quality prime assets
3 Asset classes
7Total assets under management
S$68billion(1)7High quality prime assets
6 properties in Singapore and 1 property in Shanghai
5
Investment Mandate
Commercial Hospitality Hospitality-related
One of the
Largest Diversified
SGX-listed REITs
20More than in net lettable area
upscale hotel rooms
mil sq ft
1640
Strong Support
OUE Group
478 stake(1)
FY2015FY2016 FY2017
Total assets under management increased by more than four-folds since listing in 2014
Transformative merger with OUE Hospitality Trust in 2019 creates one of the largest diversified S-REITs
S$16b
AUM
S$34b
AUM
S$34b
AUM
S$35b
AUM
S$45b
AUM
S$68b
AUM
Milestones Since Listing
Listed on SGX-ST
with two assets ndash
OUE Bayfront and
Lippo Plaza
Maiden
acquisition
of One
Raffles
Place
(6795
effective
interest)
Established S$15
billion Multi-Currency
Debt Issuance
Programme
Completed
AEI to
upgrade
common
areas and
restrooms
at Lippo
Plaza
office tower
Debut
issuance of
S$150 million
303 fixed
rate notes
due 2020
Completed
acquisition
of OUE
Downtown
Office
Commenced AEI at
One Raffles Place
Shopping Mall with
co-working operator
Spaces anchoring
the AEI
Merger
by way of a trust scheme
of arrangement (effective
from 4 Sep 2019)
6
Commenced AEI at One
Raffles Place Tower 1 to
upgrade mechanical and
engineering equipment
FY2014
FY2018
FY2019
OUE Bayfront One Raffles PlaceOUE Downtown
OfficeLippo Plaza Mandarin Gallery
Mandarin Orchard
Singapore
Crowne Plaza
Changi AirportTotal
Description A landmark Grade A
office building located
at Collyer Quay
between the Marina
Bay downtown and
Raffles Place
completed in 2011
Iconic integrated
development with two
Grade A office towers
and a retail mall located
in Singaporersquos CBD at
Raffles Place latest AEI
completed in 2019
Grade A office space a
mixed-used
development with
offices retail and
serviced residences at
Shenton Way recently
refurbished in 2017
Grade A commercial
building located along
Huaihai Zhong Road
within the established
commercial district of
Huangpu in Puxi
Shanghai
Prime retail
landmark on
Orchard Road ndash
preferred location
for flagship stores
of international
brands
A world class
hospitality icon in
Singapore since
1971 Mandarin
Orchard Singapore is
the largest hotel
along Orchard Road
Award-winning hotel
at Singapore Changi
Airport and close to
Changi Business
Park with seamless
connectivity to Jewel
Changi Airport
NLA
Office 1869003
Retail 307561
Overall 2176564
1640 hotel rooms
Attributable
NLA (sq ft)
Office 378692
Retail 21132
Office 598814
Retail 99370
Office 530487 Office 361010
Retail 60776
Retail 126283 1077 hotel rooms 563 hotel rooms
Occupancy(1) Office 1000
Retail 989
Overall 999
Office 914
Retail 965
Overall 922
Office 917 Office 811
Retail 850
Overall 817
Retail 944 - - Office 913
Retail 936
Overall 916
Valuation(2) S$11810m
(S$2954 psf)
S$18620m(3)
(S$2667 psf)
S$9120m
(S$1719 psf)
RMB29500m
RMB50409 psm GFA
S$5793m(4)
(S$1374 psf)
S$4930m
(S$3904 psf)
S$12280m
(S$11m key)
S$4970m
(S$09m key)
S$67523m
7
Premium Portfolio of Assets
Strategically-located assets in the prime business districts of Singapore and Shanghai
(3) Based on OUB Centre Limitedrsquos 8154 interest in One Raffles Place OUE C-REIT has an indirect 8333 interest in OUB Centre Limited held via its wholly-owned subsidiaries
(4) Based on SGDCNY exchange rate of 15092 as at 30 June 2020
(1) Committed Occupancy as at 30 June 2020
(2) As at 31 December 2019
One Raffles Place224
OUE Bayfront215
Mandarin Orchard Singapore
175
OUE Downtown
Office146
Lippo Plaza99
Crowne Plaza Changi Airport
88
Mandarin Gallery53
Hospitality263
Office626
Retail111
Portfolio Composition
Commercial segment comprises the office andor retail contribution from OUE Bayfront One Raffles Place (6795 effective interest) OUE Downtown Office Lippo Plaza (912 strata interest) and Mandarin Gallery
(1) Based on independent valuations as at 31 December 2019 and SGDCNY exchange rate of 15092 as at 30 June 2020
(2) For 2Q 2020
(3) Mandarin Orchard Singapore and Crowne Plaza Changi Airportrsquos master lease agreements are subject to a minimum rent of S$450 million and S$225 million per annum respectively totalling S$675 million per annum
8
No single asset contributes more than224 to total revenue
Hospitality segment revenue wassupported by the minimum rent underthe hotelsrsquo respective master leaseagreements
Hotel master lease agreements provide minimum rent of
S$675 millionper annum(3)
By Segment
Contribution(2)
By Revenue
Contribution(2)
By Asset
Value(1)
One Raffles Place276
Mandarin Orchard
Singapore182OUE Bayfront
175
OUE Downtown
Office135
Lippo Plaza
86
Crowne Plaza Changi Airport73
Mandarin Gallery73
914 of assets under management inSingapore
70
192
164
110
50
16
38 34 38
69
219
2020 2021 2022 2023 2024 and beyond
Office Retail HospitalityHospitality223
Banking Insurance amp Financial Services
201
Retail105
Accounting amp Consultancy Services
99
Food amp Beverage54
Energy amp Commodities
49
Real Estate amp Property Services
48
Legal45
IT Media amp Telecommunications
44
Manufacturing amp Distribution
43
Services37
Maritime amp Logistics
23
Others16
Pharmaceuticals amp Healthcare
14
Tenant Base and Portfolio Lease Expiry Profile
9
Note Tenant by trade sector is based on gross rental income excluding any provisions of rental rebates
(1) Refers to contribution from Mandarin Gallery and all other retail components within OUE C-REITrsquos portfolio
(2) Post the quarter-end 29 of office gross rental income remains to be renewed for the balance of 2020
(3) ldquoWALErdquo refers to the weighted average lease term to expiry Based on committed tenancies and excludes turnover rent
WALE(3) of 35 years by Gross Rental Income
As at 30 Jun 2020
(1)
As of Jun 2020
(2)
Financial Performance amp
Capital Management
Key Highlights
11
Portfolio
Performance
916
Commercial Segment(2)
Committed Occupancy
Financial
Highlights
Capital
Management
Aggregate
Leverage
401
68 - 148
Singapore Office
Rental Reversions
58
312Q 2019 35
Weighted Average
Cost of Debt
8072Q 2019 761
Fixed Rate Debt
S$504237 YoY
2Q 2020
Net Property Income
m S$683406 YoY
1H 2020 Amount Available
for Distribution
m
2Q 2019 393
2Q 2019 945
S$643239 YoY
2Q 2020
Revenue
m
S$1000
Issued in June 2020
40 Notes due 2025
m
(1) After retention of S$138 million of which S$30 million is for ongoing working capital requirements
(2) Commercial segment comprises OUE Bayfront One Raffles Place (6795 effective interest) office components of OUE Downtown (ldquoOUE Downtown Officerdquo) Lippo Plaza (912 strata
interest) and Mandarin Gallery
S$545121 YoY
1H 2020
Distribution(1)
Gross Rental Income Due for
Renewal for Balance of 2020
m
Net property income in 2Q 2020 and 1H 2020 of S$504 million and S$1125 million respectively was higher YoY due primarily to
contribution from Mandarin Gallery Mandarin Orchard Singapore and Crowne Plaza Changi Airport upon completion of the merger with
OUE Hospitality Trust in 2019 This increase was partially offset by provision for rental rebates to tenants
Amount available for distribution of S$307 million in 2Q 2020 and S$683 million in 1H 2020 were respectively higher YoY
In view of continued uncertainties posed by the COVID-19 pandemic S$138 million of distribution was retained to preserve financial
flexibility Consequently 1H 2020 distribution to Unitholders was S$545 million 121 higher YoY
2Q 2020
(S$m)
2Q 2019
(S$m)
Change
()
1H 2020
(S$m)
1H 2019
(S$m)
Change
()
Revenue 643 519 239 1420 1072 324
Net Property Income 504 408 237 1125 843 334
Amount Available for
Distribution307 225 360 683 486 406
Distribution to Unitholders 545 486 121
Distribution per Unit 100(1) 168(2) (405)
12
Summary of Results ndash 2Q 2020 amp 1H 2020
(1) Based on 5415 million Units in issue and to be issued as at 30 June 2020
(2) Based on 2872 million Units in issue and to be issued as at 30 June 2019
Issued S$100 million 40 notes due 2025 on 24 June 2020 to refinance existing borrowings
Balance of 2020 debt to be refinanced ahead of maturity with average cost of debt expected to remain stable
With 807 of debt on fixed rate basis earnings are mitigated against interest rate fluctuations
As at 30 Jun 2020 As at 31 Mar 2020
Aggregate Leverage 401 402
Total debt S$2644m(1) S$2656m(2)
Weighted average cost of debt 31 pa 32 pa
Average term of debt 18 years 19 years
fixed rate debt 807 766
unsecured debt 416 407
Average term of fixed rate debt 21 years 21 years
Interest coverage ratio(3) 28x 29x
Capital Management
13
(1) Based on SGDCNY exchange rate of 15092 as at 30 June 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(2) Based on SGDCNY exchange rate of 14885 as at 31 March 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(3) Interest coverage ratio as prescribed under Appendix 6 of the Monetary Authority of Singaporersquos Code on Collective Investment Schemes (last revised on 16 April 2020)
Debt Maturity Profile as at 30 June 2020
342
150 107
425
450
644 253
150
100
23
2020 2021 2022 2023 2024 2025
Unsecured SGD Loan Secured SGD Loan
Share of OUB Centre Limiteds Unsecured SGD Loan MTN
Secured RMB Loan
S$ million
Commercial
Segment
474
350
519
408
Revenue Net Property Income
2Q 2020 2Q 2019
15
Portfolio Performance ndash Commercial Segment
2Q 2020 amp 1H 2020
86
141
(S$ million) (S$ million)
1083
821
1072
843
Revenue Net Property Income
1H 2020 1H 2019
10
26
The lower YoY performance in revenue and net property income was mainly due to provisions for rental rebates
extended to tenants to cushion the impact of business disruption caused by COVID-19 pandemic
Rental rebates committed to commercial tenants to date amount to approximately S$138 million
1000
914 917
811
944916
OUE Bayfront One Raffles Place OUE Downtown Office Lippo Plaza Mandarin Gallery Commercial Segment
Market 854(2)
16
Commercial Segment Occupancy
Office 913
Commercial segment committed occupancy declined 27 percentage points (ldquopptrdquo) quarter-on-quarter (ldquoQoQrdquo) to
916 as at 30 June 2020
In Singapore committed office occupancy eased 20 ppt QoQ to 937 as the weak economic outlook dampened
leasing momentum compounded by the suspension of leasing activities during the circuit breaker period
Mandarin Galleryrsquos committed occupancy fell 34 ppt QoQ to 944 due to continued operating challenges facing the
retail segment amidst the pandemic situation
Lippo Plazarsquos committed office occupancy declined 47 ppt QoQ to 811 as demand continued to be weak due to
persistent business uncertainty exacerbated by COVID-19
Retail 944 Commercial 916
Market 971(1)
As at 30 Jun 2020(1) Source CBRE Singapore MarketView 2Q 2020 for Singapore Grade A office occupancy of 971
(2) Source Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai CBD Grade A office occupancy of 854
Office Segment Occupancy
Source CBRE Colliers Shanghai
Singapore
Shanghai
17
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Chart Title
OUE Bayfront One Raffles Place OUE Downtown Singapore Core CBD Office
1000
914
971
917
75
80
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Lippo Plaza Shanghai CBD Grade A Office
811
854
Committed Office Rents In Line Or Above Market
2Q 2020Average Expired
RentsCommitted Rents(1) Sub-market
Comparable Sub-market Rents
Colliers(2) Savills(3)
Singapore
OUE Bayfront S$1150 S$1320New Downtown
Marina BayS$1198 S$1298
One Raffles Place S$889 S$880 ndash S$1020 Raffles Place S$1029 S$1017
OUE Downtown
OfficeS$732 S$800 ndash S$880
Shenton Way
Tanjong PagarS$1043 S$891 ndash S$926
Shanghai
Lippo Plaza RMB973 RMB550 ndash RMB1090 Puxi RMB883 RMB1040(4)
Singapore office properties continued to achieve rents which were in line or above their respective market rents
Continued to record positive rental reversions across Singapore office properties in 2Q 2020 ranging from 68 to 148
(1) Committed rents for renewals and new leases
(2) Source Colliers Singapore Office Quarterly 2Q 2020 for Singapore comparable sub-market rents Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai comparable sub-market rents
(3) Source Savills Singapore Office Briefing 1Q 2020 for Singapore comparable sub-market rents Savills Shanghai Office Market in Minutes Update 1Q 2020 for Shanghai comparable sub-market rents
(4) Shanghai Grade A office rent for prime districts of Nanjing Road West Huaihai Middle Road and Lujiazui as defined by Savills
Note For reference CBRE Researchrsquos 2Q 2020 Grade A Singapore office rent is S$1115 psfmth Sub-market rents are not published 18
Average Passing Rents
(1) Proforma average passing rents as at 30 September 2013 as disclosed in OUE C-REITrsquos Prospectus dated 17 January 2014
Average passing office rent for all
Singapore office properties
improved as of June 2020 due to
consecutive quarters of positive
rental reversions
Lippo Plazarsquos average passing
office rent was stable at RMB964
psmday as of June 2020
19
Singapore
(Office)
Shanghai
(Office)
Mandarin
Gallery
Average retail rent at Mandarin
Gallery remained stable
1040 10581175 1185 1143 1160 1198 1203 1209
1026 1028 992 945 968 969 988
694 727 731 739
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
OUE Bayfront One Raffles Place OUE Downtown Office
S$ psfmth
(1)
906 914
945
989979 981
965 970 964
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Lippo Plaza
RMB psmday
(1)
2360
2460
2360 2360
2250 22302170 2195 2195 2202
2247
2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Mandarin Gallery
S$ psfmth
4947
46
24
2119
18 17 1714
Bank ofAmerica Merrill
Lynch
Deloitte ampTouche LLP
LuxuryVentures
L Brands Allen amp OveryLLP
Aramco AsiaSingapore Pte
Ltd
Spaces Virgin ActiveSingapore Pte
Ltd
OUELimited
Hogan LovellsLee amp Lee
Top 10 Tenants ndash Commercial Segment
As of Jun 2020
20
By Gross Rental Income 272
Top 10 Tenants
(1) Including the hotel master lease arrangements for Mandarin Orchard Singapore and Crowne Plaza Changi Airport where OUE Limited is the master lessee OUE Limitedrsquos contribution
to the portfolio by gross rental income is 235
(1)
143
311
273
166
107
111
294
253
190
152
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income
91
90
Based on committed tenancies and excludes turnover rent
(1) ldquoNLArdquo refers to net lettable area
WALE of 19 years by NLA(1) and 22 years by Gross Rental Income
21
Lease Expiry Profile - Commercial Segment
As at 30 Jun 2020
111 of OUE C-REITrsquos commercial segment gross rental income is due for renewal for the rest of
2020 This has been reduced to 58 post the quarter-end
Completed (Year-to-date)
396282
223
6633
350
288249
76
37
2020 2021 2022 2023 2024 and beyond
69
323
256234
118
66
308
257 247
122
2020 2021 2022 2023 2024 and beyond
41
347
245216
151
43
313
245 241
158
2020 2021 2022 2023 2024 and beyond
22
Lease Expiry Profile by Commercial Property
OUE Bayfront
WALE 23 years (NLA) 23 Years (GRI)
OUE Downtown Office
WALE 12 years (NLA) 13 years (GRI)
One Raffles Place
WALE 21 years (NLA) 21 Years (GRI)
Lippo Plaza
WALE 23 years (NLA) 29 years (GRI)
As at 30 Jun 2020By NLA By Gross Rental Income Completed (Year-to-date)
8682
118109
28
25
(1)
(1) Post the quarter-end 83 of NLA and 86 of gross rental income remains
to be renewed for the balance of 2020
36
273
421
137 133
29
228
333
105
305
2020 2021 2022 2023 2024 and beyond
148
114
(1)
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Overview of OUE C-REIT
(1) As at 30 June 2020
OUE Bayfront One Raffles Place OUE Downtown Office Lippo Plaza Mandarin Orchard Singapore Crowne Plaza Changi Airport Mandarin Gallery
High quality prime assets
3 Asset classes
7Total assets under management
S$68billion(1)7High quality prime assets
6 properties in Singapore and 1 property in Shanghai
5
Investment Mandate
Commercial Hospitality Hospitality-related
One of the
Largest Diversified
SGX-listed REITs
20More than in net lettable area
upscale hotel rooms
mil sq ft
1640
Strong Support
OUE Group
478 stake(1)
FY2015FY2016 FY2017
Total assets under management increased by more than four-folds since listing in 2014
Transformative merger with OUE Hospitality Trust in 2019 creates one of the largest diversified S-REITs
S$16b
AUM
S$34b
AUM
S$34b
AUM
S$35b
AUM
S$45b
AUM
S$68b
AUM
Milestones Since Listing
Listed on SGX-ST
with two assets ndash
OUE Bayfront and
Lippo Plaza
Maiden
acquisition
of One
Raffles
Place
(6795
effective
interest)
Established S$15
billion Multi-Currency
Debt Issuance
Programme
Completed
AEI to
upgrade
common
areas and
restrooms
at Lippo
Plaza
office tower
Debut
issuance of
S$150 million
303 fixed
rate notes
due 2020
Completed
acquisition
of OUE
Downtown
Office
Commenced AEI at
One Raffles Place
Shopping Mall with
co-working operator
Spaces anchoring
the AEI
Merger
by way of a trust scheme
of arrangement (effective
from 4 Sep 2019)
6
Commenced AEI at One
Raffles Place Tower 1 to
upgrade mechanical and
engineering equipment
FY2014
FY2018
FY2019
OUE Bayfront One Raffles PlaceOUE Downtown
OfficeLippo Plaza Mandarin Gallery
Mandarin Orchard
Singapore
Crowne Plaza
Changi AirportTotal
Description A landmark Grade A
office building located
at Collyer Quay
between the Marina
Bay downtown and
Raffles Place
completed in 2011
Iconic integrated
development with two
Grade A office towers
and a retail mall located
in Singaporersquos CBD at
Raffles Place latest AEI
completed in 2019
Grade A office space a
mixed-used
development with
offices retail and
serviced residences at
Shenton Way recently
refurbished in 2017
Grade A commercial
building located along
Huaihai Zhong Road
within the established
commercial district of
Huangpu in Puxi
Shanghai
Prime retail
landmark on
Orchard Road ndash
preferred location
for flagship stores
of international
brands
A world class
hospitality icon in
Singapore since
1971 Mandarin
Orchard Singapore is
the largest hotel
along Orchard Road
Award-winning hotel
at Singapore Changi
Airport and close to
Changi Business
Park with seamless
connectivity to Jewel
Changi Airport
NLA
Office 1869003
Retail 307561
Overall 2176564
1640 hotel rooms
Attributable
NLA (sq ft)
Office 378692
Retail 21132
Office 598814
Retail 99370
Office 530487 Office 361010
Retail 60776
Retail 126283 1077 hotel rooms 563 hotel rooms
Occupancy(1) Office 1000
Retail 989
Overall 999
Office 914
Retail 965
Overall 922
Office 917 Office 811
Retail 850
Overall 817
Retail 944 - - Office 913
Retail 936
Overall 916
Valuation(2) S$11810m
(S$2954 psf)
S$18620m(3)
(S$2667 psf)
S$9120m
(S$1719 psf)
RMB29500m
RMB50409 psm GFA
S$5793m(4)
(S$1374 psf)
S$4930m
(S$3904 psf)
S$12280m
(S$11m key)
S$4970m
(S$09m key)
S$67523m
7
Premium Portfolio of Assets
Strategically-located assets in the prime business districts of Singapore and Shanghai
(3) Based on OUB Centre Limitedrsquos 8154 interest in One Raffles Place OUE C-REIT has an indirect 8333 interest in OUB Centre Limited held via its wholly-owned subsidiaries
(4) Based on SGDCNY exchange rate of 15092 as at 30 June 2020
(1) Committed Occupancy as at 30 June 2020
(2) As at 31 December 2019
One Raffles Place224
OUE Bayfront215
Mandarin Orchard Singapore
175
OUE Downtown
Office146
Lippo Plaza99
Crowne Plaza Changi Airport
88
Mandarin Gallery53
Hospitality263
Office626
Retail111
Portfolio Composition
Commercial segment comprises the office andor retail contribution from OUE Bayfront One Raffles Place (6795 effective interest) OUE Downtown Office Lippo Plaza (912 strata interest) and Mandarin Gallery
(1) Based on independent valuations as at 31 December 2019 and SGDCNY exchange rate of 15092 as at 30 June 2020
(2) For 2Q 2020
(3) Mandarin Orchard Singapore and Crowne Plaza Changi Airportrsquos master lease agreements are subject to a minimum rent of S$450 million and S$225 million per annum respectively totalling S$675 million per annum
8
No single asset contributes more than224 to total revenue
Hospitality segment revenue wassupported by the minimum rent underthe hotelsrsquo respective master leaseagreements
Hotel master lease agreements provide minimum rent of
S$675 millionper annum(3)
By Segment
Contribution(2)
By Revenue
Contribution(2)
By Asset
Value(1)
One Raffles Place276
Mandarin Orchard
Singapore182OUE Bayfront
175
OUE Downtown
Office135
Lippo Plaza
86
Crowne Plaza Changi Airport73
Mandarin Gallery73
914 of assets under management inSingapore
70
192
164
110
50
16
38 34 38
69
219
2020 2021 2022 2023 2024 and beyond
Office Retail HospitalityHospitality223
Banking Insurance amp Financial Services
201
Retail105
Accounting amp Consultancy Services
99
Food amp Beverage54
Energy amp Commodities
49
Real Estate amp Property Services
48
Legal45
IT Media amp Telecommunications
44
Manufacturing amp Distribution
43
Services37
Maritime amp Logistics
23
Others16
Pharmaceuticals amp Healthcare
14
Tenant Base and Portfolio Lease Expiry Profile
9
Note Tenant by trade sector is based on gross rental income excluding any provisions of rental rebates
(1) Refers to contribution from Mandarin Gallery and all other retail components within OUE C-REITrsquos portfolio
(2) Post the quarter-end 29 of office gross rental income remains to be renewed for the balance of 2020
(3) ldquoWALErdquo refers to the weighted average lease term to expiry Based on committed tenancies and excludes turnover rent
WALE(3) of 35 years by Gross Rental Income
As at 30 Jun 2020
(1)
As of Jun 2020
(2)
Financial Performance amp
Capital Management
Key Highlights
11
Portfolio
Performance
916
Commercial Segment(2)
Committed Occupancy
Financial
Highlights
Capital
Management
Aggregate
Leverage
401
68 - 148
Singapore Office
Rental Reversions
58
312Q 2019 35
Weighted Average
Cost of Debt
8072Q 2019 761
Fixed Rate Debt
S$504237 YoY
2Q 2020
Net Property Income
m S$683406 YoY
1H 2020 Amount Available
for Distribution
m
2Q 2019 393
2Q 2019 945
S$643239 YoY
2Q 2020
Revenue
m
S$1000
Issued in June 2020
40 Notes due 2025
m
(1) After retention of S$138 million of which S$30 million is for ongoing working capital requirements
(2) Commercial segment comprises OUE Bayfront One Raffles Place (6795 effective interest) office components of OUE Downtown (ldquoOUE Downtown Officerdquo) Lippo Plaza (912 strata
interest) and Mandarin Gallery
S$545121 YoY
1H 2020
Distribution(1)
Gross Rental Income Due for
Renewal for Balance of 2020
m
Net property income in 2Q 2020 and 1H 2020 of S$504 million and S$1125 million respectively was higher YoY due primarily to
contribution from Mandarin Gallery Mandarin Orchard Singapore and Crowne Plaza Changi Airport upon completion of the merger with
OUE Hospitality Trust in 2019 This increase was partially offset by provision for rental rebates to tenants
Amount available for distribution of S$307 million in 2Q 2020 and S$683 million in 1H 2020 were respectively higher YoY
In view of continued uncertainties posed by the COVID-19 pandemic S$138 million of distribution was retained to preserve financial
flexibility Consequently 1H 2020 distribution to Unitholders was S$545 million 121 higher YoY
2Q 2020
(S$m)
2Q 2019
(S$m)
Change
()
1H 2020
(S$m)
1H 2019
(S$m)
Change
()
Revenue 643 519 239 1420 1072 324
Net Property Income 504 408 237 1125 843 334
Amount Available for
Distribution307 225 360 683 486 406
Distribution to Unitholders 545 486 121
Distribution per Unit 100(1) 168(2) (405)
12
Summary of Results ndash 2Q 2020 amp 1H 2020
(1) Based on 5415 million Units in issue and to be issued as at 30 June 2020
(2) Based on 2872 million Units in issue and to be issued as at 30 June 2019
Issued S$100 million 40 notes due 2025 on 24 June 2020 to refinance existing borrowings
Balance of 2020 debt to be refinanced ahead of maturity with average cost of debt expected to remain stable
With 807 of debt on fixed rate basis earnings are mitigated against interest rate fluctuations
As at 30 Jun 2020 As at 31 Mar 2020
Aggregate Leverage 401 402
Total debt S$2644m(1) S$2656m(2)
Weighted average cost of debt 31 pa 32 pa
Average term of debt 18 years 19 years
fixed rate debt 807 766
unsecured debt 416 407
Average term of fixed rate debt 21 years 21 years
Interest coverage ratio(3) 28x 29x
Capital Management
13
(1) Based on SGDCNY exchange rate of 15092 as at 30 June 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(2) Based on SGDCNY exchange rate of 14885 as at 31 March 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(3) Interest coverage ratio as prescribed under Appendix 6 of the Monetary Authority of Singaporersquos Code on Collective Investment Schemes (last revised on 16 April 2020)
Debt Maturity Profile as at 30 June 2020
342
150 107
425
450
644 253
150
100
23
2020 2021 2022 2023 2024 2025
Unsecured SGD Loan Secured SGD Loan
Share of OUB Centre Limiteds Unsecured SGD Loan MTN
Secured RMB Loan
S$ million
Commercial
Segment
474
350
519
408
Revenue Net Property Income
2Q 2020 2Q 2019
15
Portfolio Performance ndash Commercial Segment
2Q 2020 amp 1H 2020
86
141
(S$ million) (S$ million)
1083
821
1072
843
Revenue Net Property Income
1H 2020 1H 2019
10
26
The lower YoY performance in revenue and net property income was mainly due to provisions for rental rebates
extended to tenants to cushion the impact of business disruption caused by COVID-19 pandemic
Rental rebates committed to commercial tenants to date amount to approximately S$138 million
1000
914 917
811
944916
OUE Bayfront One Raffles Place OUE Downtown Office Lippo Plaza Mandarin Gallery Commercial Segment
Market 854(2)
16
Commercial Segment Occupancy
Office 913
Commercial segment committed occupancy declined 27 percentage points (ldquopptrdquo) quarter-on-quarter (ldquoQoQrdquo) to
916 as at 30 June 2020
In Singapore committed office occupancy eased 20 ppt QoQ to 937 as the weak economic outlook dampened
leasing momentum compounded by the suspension of leasing activities during the circuit breaker period
Mandarin Galleryrsquos committed occupancy fell 34 ppt QoQ to 944 due to continued operating challenges facing the
retail segment amidst the pandemic situation
Lippo Plazarsquos committed office occupancy declined 47 ppt QoQ to 811 as demand continued to be weak due to
persistent business uncertainty exacerbated by COVID-19
Retail 944 Commercial 916
Market 971(1)
As at 30 Jun 2020(1) Source CBRE Singapore MarketView 2Q 2020 for Singapore Grade A office occupancy of 971
(2) Source Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai CBD Grade A office occupancy of 854
Office Segment Occupancy
Source CBRE Colliers Shanghai
Singapore
Shanghai
17
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Chart Title
OUE Bayfront One Raffles Place OUE Downtown Singapore Core CBD Office
1000
914
971
917
75
80
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Lippo Plaza Shanghai CBD Grade A Office
811
854
Committed Office Rents In Line Or Above Market
2Q 2020Average Expired
RentsCommitted Rents(1) Sub-market
Comparable Sub-market Rents
Colliers(2) Savills(3)
Singapore
OUE Bayfront S$1150 S$1320New Downtown
Marina BayS$1198 S$1298
One Raffles Place S$889 S$880 ndash S$1020 Raffles Place S$1029 S$1017
OUE Downtown
OfficeS$732 S$800 ndash S$880
Shenton Way
Tanjong PagarS$1043 S$891 ndash S$926
Shanghai
Lippo Plaza RMB973 RMB550 ndash RMB1090 Puxi RMB883 RMB1040(4)
Singapore office properties continued to achieve rents which were in line or above their respective market rents
Continued to record positive rental reversions across Singapore office properties in 2Q 2020 ranging from 68 to 148
(1) Committed rents for renewals and new leases
(2) Source Colliers Singapore Office Quarterly 2Q 2020 for Singapore comparable sub-market rents Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai comparable sub-market rents
(3) Source Savills Singapore Office Briefing 1Q 2020 for Singapore comparable sub-market rents Savills Shanghai Office Market in Minutes Update 1Q 2020 for Shanghai comparable sub-market rents
(4) Shanghai Grade A office rent for prime districts of Nanjing Road West Huaihai Middle Road and Lujiazui as defined by Savills
Note For reference CBRE Researchrsquos 2Q 2020 Grade A Singapore office rent is S$1115 psfmth Sub-market rents are not published 18
Average Passing Rents
(1) Proforma average passing rents as at 30 September 2013 as disclosed in OUE C-REITrsquos Prospectus dated 17 January 2014
Average passing office rent for all
Singapore office properties
improved as of June 2020 due to
consecutive quarters of positive
rental reversions
Lippo Plazarsquos average passing
office rent was stable at RMB964
psmday as of June 2020
19
Singapore
(Office)
Shanghai
(Office)
Mandarin
Gallery
Average retail rent at Mandarin
Gallery remained stable
1040 10581175 1185 1143 1160 1198 1203 1209
1026 1028 992 945 968 969 988
694 727 731 739
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
OUE Bayfront One Raffles Place OUE Downtown Office
S$ psfmth
(1)
906 914
945
989979 981
965 970 964
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Lippo Plaza
RMB psmday
(1)
2360
2460
2360 2360
2250 22302170 2195 2195 2202
2247
2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Mandarin Gallery
S$ psfmth
4947
46
24
2119
18 17 1714
Bank ofAmerica Merrill
Lynch
Deloitte ampTouche LLP
LuxuryVentures
L Brands Allen amp OveryLLP
Aramco AsiaSingapore Pte
Ltd
Spaces Virgin ActiveSingapore Pte
Ltd
OUELimited
Hogan LovellsLee amp Lee
Top 10 Tenants ndash Commercial Segment
As of Jun 2020
20
By Gross Rental Income 272
Top 10 Tenants
(1) Including the hotel master lease arrangements for Mandarin Orchard Singapore and Crowne Plaza Changi Airport where OUE Limited is the master lessee OUE Limitedrsquos contribution
to the portfolio by gross rental income is 235
(1)
143
311
273
166
107
111
294
253
190
152
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income
91
90
Based on committed tenancies and excludes turnover rent
(1) ldquoNLArdquo refers to net lettable area
WALE of 19 years by NLA(1) and 22 years by Gross Rental Income
21
Lease Expiry Profile - Commercial Segment
As at 30 Jun 2020
111 of OUE C-REITrsquos commercial segment gross rental income is due for renewal for the rest of
2020 This has been reduced to 58 post the quarter-end
Completed (Year-to-date)
396282
223
6633
350
288249
76
37
2020 2021 2022 2023 2024 and beyond
69
323
256234
118
66
308
257 247
122
2020 2021 2022 2023 2024 and beyond
41
347
245216
151
43
313
245 241
158
2020 2021 2022 2023 2024 and beyond
22
Lease Expiry Profile by Commercial Property
OUE Bayfront
WALE 23 years (NLA) 23 Years (GRI)
OUE Downtown Office
WALE 12 years (NLA) 13 years (GRI)
One Raffles Place
WALE 21 years (NLA) 21 Years (GRI)
Lippo Plaza
WALE 23 years (NLA) 29 years (GRI)
As at 30 Jun 2020By NLA By Gross Rental Income Completed (Year-to-date)
8682
118109
28
25
(1)
(1) Post the quarter-end 83 of NLA and 86 of gross rental income remains
to be renewed for the balance of 2020
36
273
421
137 133
29
228
333
105
305
2020 2021 2022 2023 2024 and beyond
148
114
(1)
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
FY2015FY2016 FY2017
Total assets under management increased by more than four-folds since listing in 2014
Transformative merger with OUE Hospitality Trust in 2019 creates one of the largest diversified S-REITs
S$16b
AUM
S$34b
AUM
S$34b
AUM
S$35b
AUM
S$45b
AUM
S$68b
AUM
Milestones Since Listing
Listed on SGX-ST
with two assets ndash
OUE Bayfront and
Lippo Plaza
Maiden
acquisition
of One
Raffles
Place
(6795
effective
interest)
Established S$15
billion Multi-Currency
Debt Issuance
Programme
Completed
AEI to
upgrade
common
areas and
restrooms
at Lippo
Plaza
office tower
Debut
issuance of
S$150 million
303 fixed
rate notes
due 2020
Completed
acquisition
of OUE
Downtown
Office
Commenced AEI at
One Raffles Place
Shopping Mall with
co-working operator
Spaces anchoring
the AEI
Merger
by way of a trust scheme
of arrangement (effective
from 4 Sep 2019)
6
Commenced AEI at One
Raffles Place Tower 1 to
upgrade mechanical and
engineering equipment
FY2014
FY2018
FY2019
OUE Bayfront One Raffles PlaceOUE Downtown
OfficeLippo Plaza Mandarin Gallery
Mandarin Orchard
Singapore
Crowne Plaza
Changi AirportTotal
Description A landmark Grade A
office building located
at Collyer Quay
between the Marina
Bay downtown and
Raffles Place
completed in 2011
Iconic integrated
development with two
Grade A office towers
and a retail mall located
in Singaporersquos CBD at
Raffles Place latest AEI
completed in 2019
Grade A office space a
mixed-used
development with
offices retail and
serviced residences at
Shenton Way recently
refurbished in 2017
Grade A commercial
building located along
Huaihai Zhong Road
within the established
commercial district of
Huangpu in Puxi
Shanghai
Prime retail
landmark on
Orchard Road ndash
preferred location
for flagship stores
of international
brands
A world class
hospitality icon in
Singapore since
1971 Mandarin
Orchard Singapore is
the largest hotel
along Orchard Road
Award-winning hotel
at Singapore Changi
Airport and close to
Changi Business
Park with seamless
connectivity to Jewel
Changi Airport
NLA
Office 1869003
Retail 307561
Overall 2176564
1640 hotel rooms
Attributable
NLA (sq ft)
Office 378692
Retail 21132
Office 598814
Retail 99370
Office 530487 Office 361010
Retail 60776
Retail 126283 1077 hotel rooms 563 hotel rooms
Occupancy(1) Office 1000
Retail 989
Overall 999
Office 914
Retail 965
Overall 922
Office 917 Office 811
Retail 850
Overall 817
Retail 944 - - Office 913
Retail 936
Overall 916
Valuation(2) S$11810m
(S$2954 psf)
S$18620m(3)
(S$2667 psf)
S$9120m
(S$1719 psf)
RMB29500m
RMB50409 psm GFA
S$5793m(4)
(S$1374 psf)
S$4930m
(S$3904 psf)
S$12280m
(S$11m key)
S$4970m
(S$09m key)
S$67523m
7
Premium Portfolio of Assets
Strategically-located assets in the prime business districts of Singapore and Shanghai
(3) Based on OUB Centre Limitedrsquos 8154 interest in One Raffles Place OUE C-REIT has an indirect 8333 interest in OUB Centre Limited held via its wholly-owned subsidiaries
(4) Based on SGDCNY exchange rate of 15092 as at 30 June 2020
(1) Committed Occupancy as at 30 June 2020
(2) As at 31 December 2019
One Raffles Place224
OUE Bayfront215
Mandarin Orchard Singapore
175
OUE Downtown
Office146
Lippo Plaza99
Crowne Plaza Changi Airport
88
Mandarin Gallery53
Hospitality263
Office626
Retail111
Portfolio Composition
Commercial segment comprises the office andor retail contribution from OUE Bayfront One Raffles Place (6795 effective interest) OUE Downtown Office Lippo Plaza (912 strata interest) and Mandarin Gallery
(1) Based on independent valuations as at 31 December 2019 and SGDCNY exchange rate of 15092 as at 30 June 2020
(2) For 2Q 2020
(3) Mandarin Orchard Singapore and Crowne Plaza Changi Airportrsquos master lease agreements are subject to a minimum rent of S$450 million and S$225 million per annum respectively totalling S$675 million per annum
8
No single asset contributes more than224 to total revenue
Hospitality segment revenue wassupported by the minimum rent underthe hotelsrsquo respective master leaseagreements
Hotel master lease agreements provide minimum rent of
S$675 millionper annum(3)
By Segment
Contribution(2)
By Revenue
Contribution(2)
By Asset
Value(1)
One Raffles Place276
Mandarin Orchard
Singapore182OUE Bayfront
175
OUE Downtown
Office135
Lippo Plaza
86
Crowne Plaza Changi Airport73
Mandarin Gallery73
914 of assets under management inSingapore
70
192
164
110
50
16
38 34 38
69
219
2020 2021 2022 2023 2024 and beyond
Office Retail HospitalityHospitality223
Banking Insurance amp Financial Services
201
Retail105
Accounting amp Consultancy Services
99
Food amp Beverage54
Energy amp Commodities
49
Real Estate amp Property Services
48
Legal45
IT Media amp Telecommunications
44
Manufacturing amp Distribution
43
Services37
Maritime amp Logistics
23
Others16
Pharmaceuticals amp Healthcare
14
Tenant Base and Portfolio Lease Expiry Profile
9
Note Tenant by trade sector is based on gross rental income excluding any provisions of rental rebates
(1) Refers to contribution from Mandarin Gallery and all other retail components within OUE C-REITrsquos portfolio
(2) Post the quarter-end 29 of office gross rental income remains to be renewed for the balance of 2020
(3) ldquoWALErdquo refers to the weighted average lease term to expiry Based on committed tenancies and excludes turnover rent
WALE(3) of 35 years by Gross Rental Income
As at 30 Jun 2020
(1)
As of Jun 2020
(2)
Financial Performance amp
Capital Management
Key Highlights
11
Portfolio
Performance
916
Commercial Segment(2)
Committed Occupancy
Financial
Highlights
Capital
Management
Aggregate
Leverage
401
68 - 148
Singapore Office
Rental Reversions
58
312Q 2019 35
Weighted Average
Cost of Debt
8072Q 2019 761
Fixed Rate Debt
S$504237 YoY
2Q 2020
Net Property Income
m S$683406 YoY
1H 2020 Amount Available
for Distribution
m
2Q 2019 393
2Q 2019 945
S$643239 YoY
2Q 2020
Revenue
m
S$1000
Issued in June 2020
40 Notes due 2025
m
(1) After retention of S$138 million of which S$30 million is for ongoing working capital requirements
(2) Commercial segment comprises OUE Bayfront One Raffles Place (6795 effective interest) office components of OUE Downtown (ldquoOUE Downtown Officerdquo) Lippo Plaza (912 strata
interest) and Mandarin Gallery
S$545121 YoY
1H 2020
Distribution(1)
Gross Rental Income Due for
Renewal for Balance of 2020
m
Net property income in 2Q 2020 and 1H 2020 of S$504 million and S$1125 million respectively was higher YoY due primarily to
contribution from Mandarin Gallery Mandarin Orchard Singapore and Crowne Plaza Changi Airport upon completion of the merger with
OUE Hospitality Trust in 2019 This increase was partially offset by provision for rental rebates to tenants
Amount available for distribution of S$307 million in 2Q 2020 and S$683 million in 1H 2020 were respectively higher YoY
In view of continued uncertainties posed by the COVID-19 pandemic S$138 million of distribution was retained to preserve financial
flexibility Consequently 1H 2020 distribution to Unitholders was S$545 million 121 higher YoY
2Q 2020
(S$m)
2Q 2019
(S$m)
Change
()
1H 2020
(S$m)
1H 2019
(S$m)
Change
()
Revenue 643 519 239 1420 1072 324
Net Property Income 504 408 237 1125 843 334
Amount Available for
Distribution307 225 360 683 486 406
Distribution to Unitholders 545 486 121
Distribution per Unit 100(1) 168(2) (405)
12
Summary of Results ndash 2Q 2020 amp 1H 2020
(1) Based on 5415 million Units in issue and to be issued as at 30 June 2020
(2) Based on 2872 million Units in issue and to be issued as at 30 June 2019
Issued S$100 million 40 notes due 2025 on 24 June 2020 to refinance existing borrowings
Balance of 2020 debt to be refinanced ahead of maturity with average cost of debt expected to remain stable
With 807 of debt on fixed rate basis earnings are mitigated against interest rate fluctuations
As at 30 Jun 2020 As at 31 Mar 2020
Aggregate Leverage 401 402
Total debt S$2644m(1) S$2656m(2)
Weighted average cost of debt 31 pa 32 pa
Average term of debt 18 years 19 years
fixed rate debt 807 766
unsecured debt 416 407
Average term of fixed rate debt 21 years 21 years
Interest coverage ratio(3) 28x 29x
Capital Management
13
(1) Based on SGDCNY exchange rate of 15092 as at 30 June 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(2) Based on SGDCNY exchange rate of 14885 as at 31 March 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(3) Interest coverage ratio as prescribed under Appendix 6 of the Monetary Authority of Singaporersquos Code on Collective Investment Schemes (last revised on 16 April 2020)
Debt Maturity Profile as at 30 June 2020
342
150 107
425
450
644 253
150
100
23
2020 2021 2022 2023 2024 2025
Unsecured SGD Loan Secured SGD Loan
Share of OUB Centre Limiteds Unsecured SGD Loan MTN
Secured RMB Loan
S$ million
Commercial
Segment
474
350
519
408
Revenue Net Property Income
2Q 2020 2Q 2019
15
Portfolio Performance ndash Commercial Segment
2Q 2020 amp 1H 2020
86
141
(S$ million) (S$ million)
1083
821
1072
843
Revenue Net Property Income
1H 2020 1H 2019
10
26
The lower YoY performance in revenue and net property income was mainly due to provisions for rental rebates
extended to tenants to cushion the impact of business disruption caused by COVID-19 pandemic
Rental rebates committed to commercial tenants to date amount to approximately S$138 million
1000
914 917
811
944916
OUE Bayfront One Raffles Place OUE Downtown Office Lippo Plaza Mandarin Gallery Commercial Segment
Market 854(2)
16
Commercial Segment Occupancy
Office 913
Commercial segment committed occupancy declined 27 percentage points (ldquopptrdquo) quarter-on-quarter (ldquoQoQrdquo) to
916 as at 30 June 2020
In Singapore committed office occupancy eased 20 ppt QoQ to 937 as the weak economic outlook dampened
leasing momentum compounded by the suspension of leasing activities during the circuit breaker period
Mandarin Galleryrsquos committed occupancy fell 34 ppt QoQ to 944 due to continued operating challenges facing the
retail segment amidst the pandemic situation
Lippo Plazarsquos committed office occupancy declined 47 ppt QoQ to 811 as demand continued to be weak due to
persistent business uncertainty exacerbated by COVID-19
Retail 944 Commercial 916
Market 971(1)
As at 30 Jun 2020(1) Source CBRE Singapore MarketView 2Q 2020 for Singapore Grade A office occupancy of 971
(2) Source Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai CBD Grade A office occupancy of 854
Office Segment Occupancy
Source CBRE Colliers Shanghai
Singapore
Shanghai
17
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Chart Title
OUE Bayfront One Raffles Place OUE Downtown Singapore Core CBD Office
1000
914
971
917
75
80
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Lippo Plaza Shanghai CBD Grade A Office
811
854
Committed Office Rents In Line Or Above Market
2Q 2020Average Expired
RentsCommitted Rents(1) Sub-market
Comparable Sub-market Rents
Colliers(2) Savills(3)
Singapore
OUE Bayfront S$1150 S$1320New Downtown
Marina BayS$1198 S$1298
One Raffles Place S$889 S$880 ndash S$1020 Raffles Place S$1029 S$1017
OUE Downtown
OfficeS$732 S$800 ndash S$880
Shenton Way
Tanjong PagarS$1043 S$891 ndash S$926
Shanghai
Lippo Plaza RMB973 RMB550 ndash RMB1090 Puxi RMB883 RMB1040(4)
Singapore office properties continued to achieve rents which were in line or above their respective market rents
Continued to record positive rental reversions across Singapore office properties in 2Q 2020 ranging from 68 to 148
(1) Committed rents for renewals and new leases
(2) Source Colliers Singapore Office Quarterly 2Q 2020 for Singapore comparable sub-market rents Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai comparable sub-market rents
(3) Source Savills Singapore Office Briefing 1Q 2020 for Singapore comparable sub-market rents Savills Shanghai Office Market in Minutes Update 1Q 2020 for Shanghai comparable sub-market rents
(4) Shanghai Grade A office rent for prime districts of Nanjing Road West Huaihai Middle Road and Lujiazui as defined by Savills
Note For reference CBRE Researchrsquos 2Q 2020 Grade A Singapore office rent is S$1115 psfmth Sub-market rents are not published 18
Average Passing Rents
(1) Proforma average passing rents as at 30 September 2013 as disclosed in OUE C-REITrsquos Prospectus dated 17 January 2014
Average passing office rent for all
Singapore office properties
improved as of June 2020 due to
consecutive quarters of positive
rental reversions
Lippo Plazarsquos average passing
office rent was stable at RMB964
psmday as of June 2020
19
Singapore
(Office)
Shanghai
(Office)
Mandarin
Gallery
Average retail rent at Mandarin
Gallery remained stable
1040 10581175 1185 1143 1160 1198 1203 1209
1026 1028 992 945 968 969 988
694 727 731 739
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
OUE Bayfront One Raffles Place OUE Downtown Office
S$ psfmth
(1)
906 914
945
989979 981
965 970 964
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Lippo Plaza
RMB psmday
(1)
2360
2460
2360 2360
2250 22302170 2195 2195 2202
2247
2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Mandarin Gallery
S$ psfmth
4947
46
24
2119
18 17 1714
Bank ofAmerica Merrill
Lynch
Deloitte ampTouche LLP
LuxuryVentures
L Brands Allen amp OveryLLP
Aramco AsiaSingapore Pte
Ltd
Spaces Virgin ActiveSingapore Pte
Ltd
OUELimited
Hogan LovellsLee amp Lee
Top 10 Tenants ndash Commercial Segment
As of Jun 2020
20
By Gross Rental Income 272
Top 10 Tenants
(1) Including the hotel master lease arrangements for Mandarin Orchard Singapore and Crowne Plaza Changi Airport where OUE Limited is the master lessee OUE Limitedrsquos contribution
to the portfolio by gross rental income is 235
(1)
143
311
273
166
107
111
294
253
190
152
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income
91
90
Based on committed tenancies and excludes turnover rent
(1) ldquoNLArdquo refers to net lettable area
WALE of 19 years by NLA(1) and 22 years by Gross Rental Income
21
Lease Expiry Profile - Commercial Segment
As at 30 Jun 2020
111 of OUE C-REITrsquos commercial segment gross rental income is due for renewal for the rest of
2020 This has been reduced to 58 post the quarter-end
Completed (Year-to-date)
396282
223
6633
350
288249
76
37
2020 2021 2022 2023 2024 and beyond
69
323
256234
118
66
308
257 247
122
2020 2021 2022 2023 2024 and beyond
41
347
245216
151
43
313
245 241
158
2020 2021 2022 2023 2024 and beyond
22
Lease Expiry Profile by Commercial Property
OUE Bayfront
WALE 23 years (NLA) 23 Years (GRI)
OUE Downtown Office
WALE 12 years (NLA) 13 years (GRI)
One Raffles Place
WALE 21 years (NLA) 21 Years (GRI)
Lippo Plaza
WALE 23 years (NLA) 29 years (GRI)
As at 30 Jun 2020By NLA By Gross Rental Income Completed (Year-to-date)
8682
118109
28
25
(1)
(1) Post the quarter-end 83 of NLA and 86 of gross rental income remains
to be renewed for the balance of 2020
36
273
421
137 133
29
228
333
105
305
2020 2021 2022 2023 2024 and beyond
148
114
(1)
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
OUE Bayfront One Raffles PlaceOUE Downtown
OfficeLippo Plaza Mandarin Gallery
Mandarin Orchard
Singapore
Crowne Plaza
Changi AirportTotal
Description A landmark Grade A
office building located
at Collyer Quay
between the Marina
Bay downtown and
Raffles Place
completed in 2011
Iconic integrated
development with two
Grade A office towers
and a retail mall located
in Singaporersquos CBD at
Raffles Place latest AEI
completed in 2019
Grade A office space a
mixed-used
development with
offices retail and
serviced residences at
Shenton Way recently
refurbished in 2017
Grade A commercial
building located along
Huaihai Zhong Road
within the established
commercial district of
Huangpu in Puxi
Shanghai
Prime retail
landmark on
Orchard Road ndash
preferred location
for flagship stores
of international
brands
A world class
hospitality icon in
Singapore since
1971 Mandarin
Orchard Singapore is
the largest hotel
along Orchard Road
Award-winning hotel
at Singapore Changi
Airport and close to
Changi Business
Park with seamless
connectivity to Jewel
Changi Airport
NLA
Office 1869003
Retail 307561
Overall 2176564
1640 hotel rooms
Attributable
NLA (sq ft)
Office 378692
Retail 21132
Office 598814
Retail 99370
Office 530487 Office 361010
Retail 60776
Retail 126283 1077 hotel rooms 563 hotel rooms
Occupancy(1) Office 1000
Retail 989
Overall 999
Office 914
Retail 965
Overall 922
Office 917 Office 811
Retail 850
Overall 817
Retail 944 - - Office 913
Retail 936
Overall 916
Valuation(2) S$11810m
(S$2954 psf)
S$18620m(3)
(S$2667 psf)
S$9120m
(S$1719 psf)
RMB29500m
RMB50409 psm GFA
S$5793m(4)
(S$1374 psf)
S$4930m
(S$3904 psf)
S$12280m
(S$11m key)
S$4970m
(S$09m key)
S$67523m
7
Premium Portfolio of Assets
Strategically-located assets in the prime business districts of Singapore and Shanghai
(3) Based on OUB Centre Limitedrsquos 8154 interest in One Raffles Place OUE C-REIT has an indirect 8333 interest in OUB Centre Limited held via its wholly-owned subsidiaries
(4) Based on SGDCNY exchange rate of 15092 as at 30 June 2020
(1) Committed Occupancy as at 30 June 2020
(2) As at 31 December 2019
One Raffles Place224
OUE Bayfront215
Mandarin Orchard Singapore
175
OUE Downtown
Office146
Lippo Plaza99
Crowne Plaza Changi Airport
88
Mandarin Gallery53
Hospitality263
Office626
Retail111
Portfolio Composition
Commercial segment comprises the office andor retail contribution from OUE Bayfront One Raffles Place (6795 effective interest) OUE Downtown Office Lippo Plaza (912 strata interest) and Mandarin Gallery
(1) Based on independent valuations as at 31 December 2019 and SGDCNY exchange rate of 15092 as at 30 June 2020
(2) For 2Q 2020
(3) Mandarin Orchard Singapore and Crowne Plaza Changi Airportrsquos master lease agreements are subject to a minimum rent of S$450 million and S$225 million per annum respectively totalling S$675 million per annum
8
No single asset contributes more than224 to total revenue
Hospitality segment revenue wassupported by the minimum rent underthe hotelsrsquo respective master leaseagreements
Hotel master lease agreements provide minimum rent of
S$675 millionper annum(3)
By Segment
Contribution(2)
By Revenue
Contribution(2)
By Asset
Value(1)
One Raffles Place276
Mandarin Orchard
Singapore182OUE Bayfront
175
OUE Downtown
Office135
Lippo Plaza
86
Crowne Plaza Changi Airport73
Mandarin Gallery73
914 of assets under management inSingapore
70
192
164
110
50
16
38 34 38
69
219
2020 2021 2022 2023 2024 and beyond
Office Retail HospitalityHospitality223
Banking Insurance amp Financial Services
201
Retail105
Accounting amp Consultancy Services
99
Food amp Beverage54
Energy amp Commodities
49
Real Estate amp Property Services
48
Legal45
IT Media amp Telecommunications
44
Manufacturing amp Distribution
43
Services37
Maritime amp Logistics
23
Others16
Pharmaceuticals amp Healthcare
14
Tenant Base and Portfolio Lease Expiry Profile
9
Note Tenant by trade sector is based on gross rental income excluding any provisions of rental rebates
(1) Refers to contribution from Mandarin Gallery and all other retail components within OUE C-REITrsquos portfolio
(2) Post the quarter-end 29 of office gross rental income remains to be renewed for the balance of 2020
(3) ldquoWALErdquo refers to the weighted average lease term to expiry Based on committed tenancies and excludes turnover rent
WALE(3) of 35 years by Gross Rental Income
As at 30 Jun 2020
(1)
As of Jun 2020
(2)
Financial Performance amp
Capital Management
Key Highlights
11
Portfolio
Performance
916
Commercial Segment(2)
Committed Occupancy
Financial
Highlights
Capital
Management
Aggregate
Leverage
401
68 - 148
Singapore Office
Rental Reversions
58
312Q 2019 35
Weighted Average
Cost of Debt
8072Q 2019 761
Fixed Rate Debt
S$504237 YoY
2Q 2020
Net Property Income
m S$683406 YoY
1H 2020 Amount Available
for Distribution
m
2Q 2019 393
2Q 2019 945
S$643239 YoY
2Q 2020
Revenue
m
S$1000
Issued in June 2020
40 Notes due 2025
m
(1) After retention of S$138 million of which S$30 million is for ongoing working capital requirements
(2) Commercial segment comprises OUE Bayfront One Raffles Place (6795 effective interest) office components of OUE Downtown (ldquoOUE Downtown Officerdquo) Lippo Plaza (912 strata
interest) and Mandarin Gallery
S$545121 YoY
1H 2020
Distribution(1)
Gross Rental Income Due for
Renewal for Balance of 2020
m
Net property income in 2Q 2020 and 1H 2020 of S$504 million and S$1125 million respectively was higher YoY due primarily to
contribution from Mandarin Gallery Mandarin Orchard Singapore and Crowne Plaza Changi Airport upon completion of the merger with
OUE Hospitality Trust in 2019 This increase was partially offset by provision for rental rebates to tenants
Amount available for distribution of S$307 million in 2Q 2020 and S$683 million in 1H 2020 were respectively higher YoY
In view of continued uncertainties posed by the COVID-19 pandemic S$138 million of distribution was retained to preserve financial
flexibility Consequently 1H 2020 distribution to Unitholders was S$545 million 121 higher YoY
2Q 2020
(S$m)
2Q 2019
(S$m)
Change
()
1H 2020
(S$m)
1H 2019
(S$m)
Change
()
Revenue 643 519 239 1420 1072 324
Net Property Income 504 408 237 1125 843 334
Amount Available for
Distribution307 225 360 683 486 406
Distribution to Unitholders 545 486 121
Distribution per Unit 100(1) 168(2) (405)
12
Summary of Results ndash 2Q 2020 amp 1H 2020
(1) Based on 5415 million Units in issue and to be issued as at 30 June 2020
(2) Based on 2872 million Units in issue and to be issued as at 30 June 2019
Issued S$100 million 40 notes due 2025 on 24 June 2020 to refinance existing borrowings
Balance of 2020 debt to be refinanced ahead of maturity with average cost of debt expected to remain stable
With 807 of debt on fixed rate basis earnings are mitigated against interest rate fluctuations
As at 30 Jun 2020 As at 31 Mar 2020
Aggregate Leverage 401 402
Total debt S$2644m(1) S$2656m(2)
Weighted average cost of debt 31 pa 32 pa
Average term of debt 18 years 19 years
fixed rate debt 807 766
unsecured debt 416 407
Average term of fixed rate debt 21 years 21 years
Interest coverage ratio(3) 28x 29x
Capital Management
13
(1) Based on SGDCNY exchange rate of 15092 as at 30 June 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(2) Based on SGDCNY exchange rate of 14885 as at 31 March 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(3) Interest coverage ratio as prescribed under Appendix 6 of the Monetary Authority of Singaporersquos Code on Collective Investment Schemes (last revised on 16 April 2020)
Debt Maturity Profile as at 30 June 2020
342
150 107
425
450
644 253
150
100
23
2020 2021 2022 2023 2024 2025
Unsecured SGD Loan Secured SGD Loan
Share of OUB Centre Limiteds Unsecured SGD Loan MTN
Secured RMB Loan
S$ million
Commercial
Segment
474
350
519
408
Revenue Net Property Income
2Q 2020 2Q 2019
15
Portfolio Performance ndash Commercial Segment
2Q 2020 amp 1H 2020
86
141
(S$ million) (S$ million)
1083
821
1072
843
Revenue Net Property Income
1H 2020 1H 2019
10
26
The lower YoY performance in revenue and net property income was mainly due to provisions for rental rebates
extended to tenants to cushion the impact of business disruption caused by COVID-19 pandemic
Rental rebates committed to commercial tenants to date amount to approximately S$138 million
1000
914 917
811
944916
OUE Bayfront One Raffles Place OUE Downtown Office Lippo Plaza Mandarin Gallery Commercial Segment
Market 854(2)
16
Commercial Segment Occupancy
Office 913
Commercial segment committed occupancy declined 27 percentage points (ldquopptrdquo) quarter-on-quarter (ldquoQoQrdquo) to
916 as at 30 June 2020
In Singapore committed office occupancy eased 20 ppt QoQ to 937 as the weak economic outlook dampened
leasing momentum compounded by the suspension of leasing activities during the circuit breaker period
Mandarin Galleryrsquos committed occupancy fell 34 ppt QoQ to 944 due to continued operating challenges facing the
retail segment amidst the pandemic situation
Lippo Plazarsquos committed office occupancy declined 47 ppt QoQ to 811 as demand continued to be weak due to
persistent business uncertainty exacerbated by COVID-19
Retail 944 Commercial 916
Market 971(1)
As at 30 Jun 2020(1) Source CBRE Singapore MarketView 2Q 2020 for Singapore Grade A office occupancy of 971
(2) Source Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai CBD Grade A office occupancy of 854
Office Segment Occupancy
Source CBRE Colliers Shanghai
Singapore
Shanghai
17
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Chart Title
OUE Bayfront One Raffles Place OUE Downtown Singapore Core CBD Office
1000
914
971
917
75
80
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Lippo Plaza Shanghai CBD Grade A Office
811
854
Committed Office Rents In Line Or Above Market
2Q 2020Average Expired
RentsCommitted Rents(1) Sub-market
Comparable Sub-market Rents
Colliers(2) Savills(3)
Singapore
OUE Bayfront S$1150 S$1320New Downtown
Marina BayS$1198 S$1298
One Raffles Place S$889 S$880 ndash S$1020 Raffles Place S$1029 S$1017
OUE Downtown
OfficeS$732 S$800 ndash S$880
Shenton Way
Tanjong PagarS$1043 S$891 ndash S$926
Shanghai
Lippo Plaza RMB973 RMB550 ndash RMB1090 Puxi RMB883 RMB1040(4)
Singapore office properties continued to achieve rents which were in line or above their respective market rents
Continued to record positive rental reversions across Singapore office properties in 2Q 2020 ranging from 68 to 148
(1) Committed rents for renewals and new leases
(2) Source Colliers Singapore Office Quarterly 2Q 2020 for Singapore comparable sub-market rents Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai comparable sub-market rents
(3) Source Savills Singapore Office Briefing 1Q 2020 for Singapore comparable sub-market rents Savills Shanghai Office Market in Minutes Update 1Q 2020 for Shanghai comparable sub-market rents
(4) Shanghai Grade A office rent for prime districts of Nanjing Road West Huaihai Middle Road and Lujiazui as defined by Savills
Note For reference CBRE Researchrsquos 2Q 2020 Grade A Singapore office rent is S$1115 psfmth Sub-market rents are not published 18
Average Passing Rents
(1) Proforma average passing rents as at 30 September 2013 as disclosed in OUE C-REITrsquos Prospectus dated 17 January 2014
Average passing office rent for all
Singapore office properties
improved as of June 2020 due to
consecutive quarters of positive
rental reversions
Lippo Plazarsquos average passing
office rent was stable at RMB964
psmday as of June 2020
19
Singapore
(Office)
Shanghai
(Office)
Mandarin
Gallery
Average retail rent at Mandarin
Gallery remained stable
1040 10581175 1185 1143 1160 1198 1203 1209
1026 1028 992 945 968 969 988
694 727 731 739
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
OUE Bayfront One Raffles Place OUE Downtown Office
S$ psfmth
(1)
906 914
945
989979 981
965 970 964
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Lippo Plaza
RMB psmday
(1)
2360
2460
2360 2360
2250 22302170 2195 2195 2202
2247
2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Mandarin Gallery
S$ psfmth
4947
46
24
2119
18 17 1714
Bank ofAmerica Merrill
Lynch
Deloitte ampTouche LLP
LuxuryVentures
L Brands Allen amp OveryLLP
Aramco AsiaSingapore Pte
Ltd
Spaces Virgin ActiveSingapore Pte
Ltd
OUELimited
Hogan LovellsLee amp Lee
Top 10 Tenants ndash Commercial Segment
As of Jun 2020
20
By Gross Rental Income 272
Top 10 Tenants
(1) Including the hotel master lease arrangements for Mandarin Orchard Singapore and Crowne Plaza Changi Airport where OUE Limited is the master lessee OUE Limitedrsquos contribution
to the portfolio by gross rental income is 235
(1)
143
311
273
166
107
111
294
253
190
152
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income
91
90
Based on committed tenancies and excludes turnover rent
(1) ldquoNLArdquo refers to net lettable area
WALE of 19 years by NLA(1) and 22 years by Gross Rental Income
21
Lease Expiry Profile - Commercial Segment
As at 30 Jun 2020
111 of OUE C-REITrsquos commercial segment gross rental income is due for renewal for the rest of
2020 This has been reduced to 58 post the quarter-end
Completed (Year-to-date)
396282
223
6633
350
288249
76
37
2020 2021 2022 2023 2024 and beyond
69
323
256234
118
66
308
257 247
122
2020 2021 2022 2023 2024 and beyond
41
347
245216
151
43
313
245 241
158
2020 2021 2022 2023 2024 and beyond
22
Lease Expiry Profile by Commercial Property
OUE Bayfront
WALE 23 years (NLA) 23 Years (GRI)
OUE Downtown Office
WALE 12 years (NLA) 13 years (GRI)
One Raffles Place
WALE 21 years (NLA) 21 Years (GRI)
Lippo Plaza
WALE 23 years (NLA) 29 years (GRI)
As at 30 Jun 2020By NLA By Gross Rental Income Completed (Year-to-date)
8682
118109
28
25
(1)
(1) Post the quarter-end 83 of NLA and 86 of gross rental income remains
to be renewed for the balance of 2020
36
273
421
137 133
29
228
333
105
305
2020 2021 2022 2023 2024 and beyond
148
114
(1)
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
One Raffles Place224
OUE Bayfront215
Mandarin Orchard Singapore
175
OUE Downtown
Office146
Lippo Plaza99
Crowne Plaza Changi Airport
88
Mandarin Gallery53
Hospitality263
Office626
Retail111
Portfolio Composition
Commercial segment comprises the office andor retail contribution from OUE Bayfront One Raffles Place (6795 effective interest) OUE Downtown Office Lippo Plaza (912 strata interest) and Mandarin Gallery
(1) Based on independent valuations as at 31 December 2019 and SGDCNY exchange rate of 15092 as at 30 June 2020
(2) For 2Q 2020
(3) Mandarin Orchard Singapore and Crowne Plaza Changi Airportrsquos master lease agreements are subject to a minimum rent of S$450 million and S$225 million per annum respectively totalling S$675 million per annum
8
No single asset contributes more than224 to total revenue
Hospitality segment revenue wassupported by the minimum rent underthe hotelsrsquo respective master leaseagreements
Hotel master lease agreements provide minimum rent of
S$675 millionper annum(3)
By Segment
Contribution(2)
By Revenue
Contribution(2)
By Asset
Value(1)
One Raffles Place276
Mandarin Orchard
Singapore182OUE Bayfront
175
OUE Downtown
Office135
Lippo Plaza
86
Crowne Plaza Changi Airport73
Mandarin Gallery73
914 of assets under management inSingapore
70
192
164
110
50
16
38 34 38
69
219
2020 2021 2022 2023 2024 and beyond
Office Retail HospitalityHospitality223
Banking Insurance amp Financial Services
201
Retail105
Accounting amp Consultancy Services
99
Food amp Beverage54
Energy amp Commodities
49
Real Estate amp Property Services
48
Legal45
IT Media amp Telecommunications
44
Manufacturing amp Distribution
43
Services37
Maritime amp Logistics
23
Others16
Pharmaceuticals amp Healthcare
14
Tenant Base and Portfolio Lease Expiry Profile
9
Note Tenant by trade sector is based on gross rental income excluding any provisions of rental rebates
(1) Refers to contribution from Mandarin Gallery and all other retail components within OUE C-REITrsquos portfolio
(2) Post the quarter-end 29 of office gross rental income remains to be renewed for the balance of 2020
(3) ldquoWALErdquo refers to the weighted average lease term to expiry Based on committed tenancies and excludes turnover rent
WALE(3) of 35 years by Gross Rental Income
As at 30 Jun 2020
(1)
As of Jun 2020
(2)
Financial Performance amp
Capital Management
Key Highlights
11
Portfolio
Performance
916
Commercial Segment(2)
Committed Occupancy
Financial
Highlights
Capital
Management
Aggregate
Leverage
401
68 - 148
Singapore Office
Rental Reversions
58
312Q 2019 35
Weighted Average
Cost of Debt
8072Q 2019 761
Fixed Rate Debt
S$504237 YoY
2Q 2020
Net Property Income
m S$683406 YoY
1H 2020 Amount Available
for Distribution
m
2Q 2019 393
2Q 2019 945
S$643239 YoY
2Q 2020
Revenue
m
S$1000
Issued in June 2020
40 Notes due 2025
m
(1) After retention of S$138 million of which S$30 million is for ongoing working capital requirements
(2) Commercial segment comprises OUE Bayfront One Raffles Place (6795 effective interest) office components of OUE Downtown (ldquoOUE Downtown Officerdquo) Lippo Plaza (912 strata
interest) and Mandarin Gallery
S$545121 YoY
1H 2020
Distribution(1)
Gross Rental Income Due for
Renewal for Balance of 2020
m
Net property income in 2Q 2020 and 1H 2020 of S$504 million and S$1125 million respectively was higher YoY due primarily to
contribution from Mandarin Gallery Mandarin Orchard Singapore and Crowne Plaza Changi Airport upon completion of the merger with
OUE Hospitality Trust in 2019 This increase was partially offset by provision for rental rebates to tenants
Amount available for distribution of S$307 million in 2Q 2020 and S$683 million in 1H 2020 were respectively higher YoY
In view of continued uncertainties posed by the COVID-19 pandemic S$138 million of distribution was retained to preserve financial
flexibility Consequently 1H 2020 distribution to Unitholders was S$545 million 121 higher YoY
2Q 2020
(S$m)
2Q 2019
(S$m)
Change
()
1H 2020
(S$m)
1H 2019
(S$m)
Change
()
Revenue 643 519 239 1420 1072 324
Net Property Income 504 408 237 1125 843 334
Amount Available for
Distribution307 225 360 683 486 406
Distribution to Unitholders 545 486 121
Distribution per Unit 100(1) 168(2) (405)
12
Summary of Results ndash 2Q 2020 amp 1H 2020
(1) Based on 5415 million Units in issue and to be issued as at 30 June 2020
(2) Based on 2872 million Units in issue and to be issued as at 30 June 2019
Issued S$100 million 40 notes due 2025 on 24 June 2020 to refinance existing borrowings
Balance of 2020 debt to be refinanced ahead of maturity with average cost of debt expected to remain stable
With 807 of debt on fixed rate basis earnings are mitigated against interest rate fluctuations
As at 30 Jun 2020 As at 31 Mar 2020
Aggregate Leverage 401 402
Total debt S$2644m(1) S$2656m(2)
Weighted average cost of debt 31 pa 32 pa
Average term of debt 18 years 19 years
fixed rate debt 807 766
unsecured debt 416 407
Average term of fixed rate debt 21 years 21 years
Interest coverage ratio(3) 28x 29x
Capital Management
13
(1) Based on SGDCNY exchange rate of 15092 as at 30 June 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(2) Based on SGDCNY exchange rate of 14885 as at 31 March 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(3) Interest coverage ratio as prescribed under Appendix 6 of the Monetary Authority of Singaporersquos Code on Collective Investment Schemes (last revised on 16 April 2020)
Debt Maturity Profile as at 30 June 2020
342
150 107
425
450
644 253
150
100
23
2020 2021 2022 2023 2024 2025
Unsecured SGD Loan Secured SGD Loan
Share of OUB Centre Limiteds Unsecured SGD Loan MTN
Secured RMB Loan
S$ million
Commercial
Segment
474
350
519
408
Revenue Net Property Income
2Q 2020 2Q 2019
15
Portfolio Performance ndash Commercial Segment
2Q 2020 amp 1H 2020
86
141
(S$ million) (S$ million)
1083
821
1072
843
Revenue Net Property Income
1H 2020 1H 2019
10
26
The lower YoY performance in revenue and net property income was mainly due to provisions for rental rebates
extended to tenants to cushion the impact of business disruption caused by COVID-19 pandemic
Rental rebates committed to commercial tenants to date amount to approximately S$138 million
1000
914 917
811
944916
OUE Bayfront One Raffles Place OUE Downtown Office Lippo Plaza Mandarin Gallery Commercial Segment
Market 854(2)
16
Commercial Segment Occupancy
Office 913
Commercial segment committed occupancy declined 27 percentage points (ldquopptrdquo) quarter-on-quarter (ldquoQoQrdquo) to
916 as at 30 June 2020
In Singapore committed office occupancy eased 20 ppt QoQ to 937 as the weak economic outlook dampened
leasing momentum compounded by the suspension of leasing activities during the circuit breaker period
Mandarin Galleryrsquos committed occupancy fell 34 ppt QoQ to 944 due to continued operating challenges facing the
retail segment amidst the pandemic situation
Lippo Plazarsquos committed office occupancy declined 47 ppt QoQ to 811 as demand continued to be weak due to
persistent business uncertainty exacerbated by COVID-19
Retail 944 Commercial 916
Market 971(1)
As at 30 Jun 2020(1) Source CBRE Singapore MarketView 2Q 2020 for Singapore Grade A office occupancy of 971
(2) Source Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai CBD Grade A office occupancy of 854
Office Segment Occupancy
Source CBRE Colliers Shanghai
Singapore
Shanghai
17
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Chart Title
OUE Bayfront One Raffles Place OUE Downtown Singapore Core CBD Office
1000
914
971
917
75
80
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Lippo Plaza Shanghai CBD Grade A Office
811
854
Committed Office Rents In Line Or Above Market
2Q 2020Average Expired
RentsCommitted Rents(1) Sub-market
Comparable Sub-market Rents
Colliers(2) Savills(3)
Singapore
OUE Bayfront S$1150 S$1320New Downtown
Marina BayS$1198 S$1298
One Raffles Place S$889 S$880 ndash S$1020 Raffles Place S$1029 S$1017
OUE Downtown
OfficeS$732 S$800 ndash S$880
Shenton Way
Tanjong PagarS$1043 S$891 ndash S$926
Shanghai
Lippo Plaza RMB973 RMB550 ndash RMB1090 Puxi RMB883 RMB1040(4)
Singapore office properties continued to achieve rents which were in line or above their respective market rents
Continued to record positive rental reversions across Singapore office properties in 2Q 2020 ranging from 68 to 148
(1) Committed rents for renewals and new leases
(2) Source Colliers Singapore Office Quarterly 2Q 2020 for Singapore comparable sub-market rents Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai comparable sub-market rents
(3) Source Savills Singapore Office Briefing 1Q 2020 for Singapore comparable sub-market rents Savills Shanghai Office Market in Minutes Update 1Q 2020 for Shanghai comparable sub-market rents
(4) Shanghai Grade A office rent for prime districts of Nanjing Road West Huaihai Middle Road and Lujiazui as defined by Savills
Note For reference CBRE Researchrsquos 2Q 2020 Grade A Singapore office rent is S$1115 psfmth Sub-market rents are not published 18
Average Passing Rents
(1) Proforma average passing rents as at 30 September 2013 as disclosed in OUE C-REITrsquos Prospectus dated 17 January 2014
Average passing office rent for all
Singapore office properties
improved as of June 2020 due to
consecutive quarters of positive
rental reversions
Lippo Plazarsquos average passing
office rent was stable at RMB964
psmday as of June 2020
19
Singapore
(Office)
Shanghai
(Office)
Mandarin
Gallery
Average retail rent at Mandarin
Gallery remained stable
1040 10581175 1185 1143 1160 1198 1203 1209
1026 1028 992 945 968 969 988
694 727 731 739
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
OUE Bayfront One Raffles Place OUE Downtown Office
S$ psfmth
(1)
906 914
945
989979 981
965 970 964
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Lippo Plaza
RMB psmday
(1)
2360
2460
2360 2360
2250 22302170 2195 2195 2202
2247
2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Mandarin Gallery
S$ psfmth
4947
46
24
2119
18 17 1714
Bank ofAmerica Merrill
Lynch
Deloitte ampTouche LLP
LuxuryVentures
L Brands Allen amp OveryLLP
Aramco AsiaSingapore Pte
Ltd
Spaces Virgin ActiveSingapore Pte
Ltd
OUELimited
Hogan LovellsLee amp Lee
Top 10 Tenants ndash Commercial Segment
As of Jun 2020
20
By Gross Rental Income 272
Top 10 Tenants
(1) Including the hotel master lease arrangements for Mandarin Orchard Singapore and Crowne Plaza Changi Airport where OUE Limited is the master lessee OUE Limitedrsquos contribution
to the portfolio by gross rental income is 235
(1)
143
311
273
166
107
111
294
253
190
152
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income
91
90
Based on committed tenancies and excludes turnover rent
(1) ldquoNLArdquo refers to net lettable area
WALE of 19 years by NLA(1) and 22 years by Gross Rental Income
21
Lease Expiry Profile - Commercial Segment
As at 30 Jun 2020
111 of OUE C-REITrsquos commercial segment gross rental income is due for renewal for the rest of
2020 This has been reduced to 58 post the quarter-end
Completed (Year-to-date)
396282
223
6633
350
288249
76
37
2020 2021 2022 2023 2024 and beyond
69
323
256234
118
66
308
257 247
122
2020 2021 2022 2023 2024 and beyond
41
347
245216
151
43
313
245 241
158
2020 2021 2022 2023 2024 and beyond
22
Lease Expiry Profile by Commercial Property
OUE Bayfront
WALE 23 years (NLA) 23 Years (GRI)
OUE Downtown Office
WALE 12 years (NLA) 13 years (GRI)
One Raffles Place
WALE 21 years (NLA) 21 Years (GRI)
Lippo Plaza
WALE 23 years (NLA) 29 years (GRI)
As at 30 Jun 2020By NLA By Gross Rental Income Completed (Year-to-date)
8682
118109
28
25
(1)
(1) Post the quarter-end 83 of NLA and 86 of gross rental income remains
to be renewed for the balance of 2020
36
273
421
137 133
29
228
333
105
305
2020 2021 2022 2023 2024 and beyond
148
114
(1)
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
70
192
164
110
50
16
38 34 38
69
219
2020 2021 2022 2023 2024 and beyond
Office Retail HospitalityHospitality223
Banking Insurance amp Financial Services
201
Retail105
Accounting amp Consultancy Services
99
Food amp Beverage54
Energy amp Commodities
49
Real Estate amp Property Services
48
Legal45
IT Media amp Telecommunications
44
Manufacturing amp Distribution
43
Services37
Maritime amp Logistics
23
Others16
Pharmaceuticals amp Healthcare
14
Tenant Base and Portfolio Lease Expiry Profile
9
Note Tenant by trade sector is based on gross rental income excluding any provisions of rental rebates
(1) Refers to contribution from Mandarin Gallery and all other retail components within OUE C-REITrsquos portfolio
(2) Post the quarter-end 29 of office gross rental income remains to be renewed for the balance of 2020
(3) ldquoWALErdquo refers to the weighted average lease term to expiry Based on committed tenancies and excludes turnover rent
WALE(3) of 35 years by Gross Rental Income
As at 30 Jun 2020
(1)
As of Jun 2020
(2)
Financial Performance amp
Capital Management
Key Highlights
11
Portfolio
Performance
916
Commercial Segment(2)
Committed Occupancy
Financial
Highlights
Capital
Management
Aggregate
Leverage
401
68 - 148
Singapore Office
Rental Reversions
58
312Q 2019 35
Weighted Average
Cost of Debt
8072Q 2019 761
Fixed Rate Debt
S$504237 YoY
2Q 2020
Net Property Income
m S$683406 YoY
1H 2020 Amount Available
for Distribution
m
2Q 2019 393
2Q 2019 945
S$643239 YoY
2Q 2020
Revenue
m
S$1000
Issued in June 2020
40 Notes due 2025
m
(1) After retention of S$138 million of which S$30 million is for ongoing working capital requirements
(2) Commercial segment comprises OUE Bayfront One Raffles Place (6795 effective interest) office components of OUE Downtown (ldquoOUE Downtown Officerdquo) Lippo Plaza (912 strata
interest) and Mandarin Gallery
S$545121 YoY
1H 2020
Distribution(1)
Gross Rental Income Due for
Renewal for Balance of 2020
m
Net property income in 2Q 2020 and 1H 2020 of S$504 million and S$1125 million respectively was higher YoY due primarily to
contribution from Mandarin Gallery Mandarin Orchard Singapore and Crowne Plaza Changi Airport upon completion of the merger with
OUE Hospitality Trust in 2019 This increase was partially offset by provision for rental rebates to tenants
Amount available for distribution of S$307 million in 2Q 2020 and S$683 million in 1H 2020 were respectively higher YoY
In view of continued uncertainties posed by the COVID-19 pandemic S$138 million of distribution was retained to preserve financial
flexibility Consequently 1H 2020 distribution to Unitholders was S$545 million 121 higher YoY
2Q 2020
(S$m)
2Q 2019
(S$m)
Change
()
1H 2020
(S$m)
1H 2019
(S$m)
Change
()
Revenue 643 519 239 1420 1072 324
Net Property Income 504 408 237 1125 843 334
Amount Available for
Distribution307 225 360 683 486 406
Distribution to Unitholders 545 486 121
Distribution per Unit 100(1) 168(2) (405)
12
Summary of Results ndash 2Q 2020 amp 1H 2020
(1) Based on 5415 million Units in issue and to be issued as at 30 June 2020
(2) Based on 2872 million Units in issue and to be issued as at 30 June 2019
Issued S$100 million 40 notes due 2025 on 24 June 2020 to refinance existing borrowings
Balance of 2020 debt to be refinanced ahead of maturity with average cost of debt expected to remain stable
With 807 of debt on fixed rate basis earnings are mitigated against interest rate fluctuations
As at 30 Jun 2020 As at 31 Mar 2020
Aggregate Leverage 401 402
Total debt S$2644m(1) S$2656m(2)
Weighted average cost of debt 31 pa 32 pa
Average term of debt 18 years 19 years
fixed rate debt 807 766
unsecured debt 416 407
Average term of fixed rate debt 21 years 21 years
Interest coverage ratio(3) 28x 29x
Capital Management
13
(1) Based on SGDCNY exchange rate of 15092 as at 30 June 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(2) Based on SGDCNY exchange rate of 14885 as at 31 March 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(3) Interest coverage ratio as prescribed under Appendix 6 of the Monetary Authority of Singaporersquos Code on Collective Investment Schemes (last revised on 16 April 2020)
Debt Maturity Profile as at 30 June 2020
342
150 107
425
450
644 253
150
100
23
2020 2021 2022 2023 2024 2025
Unsecured SGD Loan Secured SGD Loan
Share of OUB Centre Limiteds Unsecured SGD Loan MTN
Secured RMB Loan
S$ million
Commercial
Segment
474
350
519
408
Revenue Net Property Income
2Q 2020 2Q 2019
15
Portfolio Performance ndash Commercial Segment
2Q 2020 amp 1H 2020
86
141
(S$ million) (S$ million)
1083
821
1072
843
Revenue Net Property Income
1H 2020 1H 2019
10
26
The lower YoY performance in revenue and net property income was mainly due to provisions for rental rebates
extended to tenants to cushion the impact of business disruption caused by COVID-19 pandemic
Rental rebates committed to commercial tenants to date amount to approximately S$138 million
1000
914 917
811
944916
OUE Bayfront One Raffles Place OUE Downtown Office Lippo Plaza Mandarin Gallery Commercial Segment
Market 854(2)
16
Commercial Segment Occupancy
Office 913
Commercial segment committed occupancy declined 27 percentage points (ldquopptrdquo) quarter-on-quarter (ldquoQoQrdquo) to
916 as at 30 June 2020
In Singapore committed office occupancy eased 20 ppt QoQ to 937 as the weak economic outlook dampened
leasing momentum compounded by the suspension of leasing activities during the circuit breaker period
Mandarin Galleryrsquos committed occupancy fell 34 ppt QoQ to 944 due to continued operating challenges facing the
retail segment amidst the pandemic situation
Lippo Plazarsquos committed office occupancy declined 47 ppt QoQ to 811 as demand continued to be weak due to
persistent business uncertainty exacerbated by COVID-19
Retail 944 Commercial 916
Market 971(1)
As at 30 Jun 2020(1) Source CBRE Singapore MarketView 2Q 2020 for Singapore Grade A office occupancy of 971
(2) Source Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai CBD Grade A office occupancy of 854
Office Segment Occupancy
Source CBRE Colliers Shanghai
Singapore
Shanghai
17
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Chart Title
OUE Bayfront One Raffles Place OUE Downtown Singapore Core CBD Office
1000
914
971
917
75
80
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Lippo Plaza Shanghai CBD Grade A Office
811
854
Committed Office Rents In Line Or Above Market
2Q 2020Average Expired
RentsCommitted Rents(1) Sub-market
Comparable Sub-market Rents
Colliers(2) Savills(3)
Singapore
OUE Bayfront S$1150 S$1320New Downtown
Marina BayS$1198 S$1298
One Raffles Place S$889 S$880 ndash S$1020 Raffles Place S$1029 S$1017
OUE Downtown
OfficeS$732 S$800 ndash S$880
Shenton Way
Tanjong PagarS$1043 S$891 ndash S$926
Shanghai
Lippo Plaza RMB973 RMB550 ndash RMB1090 Puxi RMB883 RMB1040(4)
Singapore office properties continued to achieve rents which were in line or above their respective market rents
Continued to record positive rental reversions across Singapore office properties in 2Q 2020 ranging from 68 to 148
(1) Committed rents for renewals and new leases
(2) Source Colliers Singapore Office Quarterly 2Q 2020 for Singapore comparable sub-market rents Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai comparable sub-market rents
(3) Source Savills Singapore Office Briefing 1Q 2020 for Singapore comparable sub-market rents Savills Shanghai Office Market in Minutes Update 1Q 2020 for Shanghai comparable sub-market rents
(4) Shanghai Grade A office rent for prime districts of Nanjing Road West Huaihai Middle Road and Lujiazui as defined by Savills
Note For reference CBRE Researchrsquos 2Q 2020 Grade A Singapore office rent is S$1115 psfmth Sub-market rents are not published 18
Average Passing Rents
(1) Proforma average passing rents as at 30 September 2013 as disclosed in OUE C-REITrsquos Prospectus dated 17 January 2014
Average passing office rent for all
Singapore office properties
improved as of June 2020 due to
consecutive quarters of positive
rental reversions
Lippo Plazarsquos average passing
office rent was stable at RMB964
psmday as of June 2020
19
Singapore
(Office)
Shanghai
(Office)
Mandarin
Gallery
Average retail rent at Mandarin
Gallery remained stable
1040 10581175 1185 1143 1160 1198 1203 1209
1026 1028 992 945 968 969 988
694 727 731 739
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
OUE Bayfront One Raffles Place OUE Downtown Office
S$ psfmth
(1)
906 914
945
989979 981
965 970 964
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Lippo Plaza
RMB psmday
(1)
2360
2460
2360 2360
2250 22302170 2195 2195 2202
2247
2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Mandarin Gallery
S$ psfmth
4947
46
24
2119
18 17 1714
Bank ofAmerica Merrill
Lynch
Deloitte ampTouche LLP
LuxuryVentures
L Brands Allen amp OveryLLP
Aramco AsiaSingapore Pte
Ltd
Spaces Virgin ActiveSingapore Pte
Ltd
OUELimited
Hogan LovellsLee amp Lee
Top 10 Tenants ndash Commercial Segment
As of Jun 2020
20
By Gross Rental Income 272
Top 10 Tenants
(1) Including the hotel master lease arrangements for Mandarin Orchard Singapore and Crowne Plaza Changi Airport where OUE Limited is the master lessee OUE Limitedrsquos contribution
to the portfolio by gross rental income is 235
(1)
143
311
273
166
107
111
294
253
190
152
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income
91
90
Based on committed tenancies and excludes turnover rent
(1) ldquoNLArdquo refers to net lettable area
WALE of 19 years by NLA(1) and 22 years by Gross Rental Income
21
Lease Expiry Profile - Commercial Segment
As at 30 Jun 2020
111 of OUE C-REITrsquos commercial segment gross rental income is due for renewal for the rest of
2020 This has been reduced to 58 post the quarter-end
Completed (Year-to-date)
396282
223
6633
350
288249
76
37
2020 2021 2022 2023 2024 and beyond
69
323
256234
118
66
308
257 247
122
2020 2021 2022 2023 2024 and beyond
41
347
245216
151
43
313
245 241
158
2020 2021 2022 2023 2024 and beyond
22
Lease Expiry Profile by Commercial Property
OUE Bayfront
WALE 23 years (NLA) 23 Years (GRI)
OUE Downtown Office
WALE 12 years (NLA) 13 years (GRI)
One Raffles Place
WALE 21 years (NLA) 21 Years (GRI)
Lippo Plaza
WALE 23 years (NLA) 29 years (GRI)
As at 30 Jun 2020By NLA By Gross Rental Income Completed (Year-to-date)
8682
118109
28
25
(1)
(1) Post the quarter-end 83 of NLA and 86 of gross rental income remains
to be renewed for the balance of 2020
36
273
421
137 133
29
228
333
105
305
2020 2021 2022 2023 2024 and beyond
148
114
(1)
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Financial Performance amp
Capital Management
Key Highlights
11
Portfolio
Performance
916
Commercial Segment(2)
Committed Occupancy
Financial
Highlights
Capital
Management
Aggregate
Leverage
401
68 - 148
Singapore Office
Rental Reversions
58
312Q 2019 35
Weighted Average
Cost of Debt
8072Q 2019 761
Fixed Rate Debt
S$504237 YoY
2Q 2020
Net Property Income
m S$683406 YoY
1H 2020 Amount Available
for Distribution
m
2Q 2019 393
2Q 2019 945
S$643239 YoY
2Q 2020
Revenue
m
S$1000
Issued in June 2020
40 Notes due 2025
m
(1) After retention of S$138 million of which S$30 million is for ongoing working capital requirements
(2) Commercial segment comprises OUE Bayfront One Raffles Place (6795 effective interest) office components of OUE Downtown (ldquoOUE Downtown Officerdquo) Lippo Plaza (912 strata
interest) and Mandarin Gallery
S$545121 YoY
1H 2020
Distribution(1)
Gross Rental Income Due for
Renewal for Balance of 2020
m
Net property income in 2Q 2020 and 1H 2020 of S$504 million and S$1125 million respectively was higher YoY due primarily to
contribution from Mandarin Gallery Mandarin Orchard Singapore and Crowne Plaza Changi Airport upon completion of the merger with
OUE Hospitality Trust in 2019 This increase was partially offset by provision for rental rebates to tenants
Amount available for distribution of S$307 million in 2Q 2020 and S$683 million in 1H 2020 were respectively higher YoY
In view of continued uncertainties posed by the COVID-19 pandemic S$138 million of distribution was retained to preserve financial
flexibility Consequently 1H 2020 distribution to Unitholders was S$545 million 121 higher YoY
2Q 2020
(S$m)
2Q 2019
(S$m)
Change
()
1H 2020
(S$m)
1H 2019
(S$m)
Change
()
Revenue 643 519 239 1420 1072 324
Net Property Income 504 408 237 1125 843 334
Amount Available for
Distribution307 225 360 683 486 406
Distribution to Unitholders 545 486 121
Distribution per Unit 100(1) 168(2) (405)
12
Summary of Results ndash 2Q 2020 amp 1H 2020
(1) Based on 5415 million Units in issue and to be issued as at 30 June 2020
(2) Based on 2872 million Units in issue and to be issued as at 30 June 2019
Issued S$100 million 40 notes due 2025 on 24 June 2020 to refinance existing borrowings
Balance of 2020 debt to be refinanced ahead of maturity with average cost of debt expected to remain stable
With 807 of debt on fixed rate basis earnings are mitigated against interest rate fluctuations
As at 30 Jun 2020 As at 31 Mar 2020
Aggregate Leverage 401 402
Total debt S$2644m(1) S$2656m(2)
Weighted average cost of debt 31 pa 32 pa
Average term of debt 18 years 19 years
fixed rate debt 807 766
unsecured debt 416 407
Average term of fixed rate debt 21 years 21 years
Interest coverage ratio(3) 28x 29x
Capital Management
13
(1) Based on SGDCNY exchange rate of 15092 as at 30 June 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(2) Based on SGDCNY exchange rate of 14885 as at 31 March 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(3) Interest coverage ratio as prescribed under Appendix 6 of the Monetary Authority of Singaporersquos Code on Collective Investment Schemes (last revised on 16 April 2020)
Debt Maturity Profile as at 30 June 2020
342
150 107
425
450
644 253
150
100
23
2020 2021 2022 2023 2024 2025
Unsecured SGD Loan Secured SGD Loan
Share of OUB Centre Limiteds Unsecured SGD Loan MTN
Secured RMB Loan
S$ million
Commercial
Segment
474
350
519
408
Revenue Net Property Income
2Q 2020 2Q 2019
15
Portfolio Performance ndash Commercial Segment
2Q 2020 amp 1H 2020
86
141
(S$ million) (S$ million)
1083
821
1072
843
Revenue Net Property Income
1H 2020 1H 2019
10
26
The lower YoY performance in revenue and net property income was mainly due to provisions for rental rebates
extended to tenants to cushion the impact of business disruption caused by COVID-19 pandemic
Rental rebates committed to commercial tenants to date amount to approximately S$138 million
1000
914 917
811
944916
OUE Bayfront One Raffles Place OUE Downtown Office Lippo Plaza Mandarin Gallery Commercial Segment
Market 854(2)
16
Commercial Segment Occupancy
Office 913
Commercial segment committed occupancy declined 27 percentage points (ldquopptrdquo) quarter-on-quarter (ldquoQoQrdquo) to
916 as at 30 June 2020
In Singapore committed office occupancy eased 20 ppt QoQ to 937 as the weak economic outlook dampened
leasing momentum compounded by the suspension of leasing activities during the circuit breaker period
Mandarin Galleryrsquos committed occupancy fell 34 ppt QoQ to 944 due to continued operating challenges facing the
retail segment amidst the pandemic situation
Lippo Plazarsquos committed office occupancy declined 47 ppt QoQ to 811 as demand continued to be weak due to
persistent business uncertainty exacerbated by COVID-19
Retail 944 Commercial 916
Market 971(1)
As at 30 Jun 2020(1) Source CBRE Singapore MarketView 2Q 2020 for Singapore Grade A office occupancy of 971
(2) Source Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai CBD Grade A office occupancy of 854
Office Segment Occupancy
Source CBRE Colliers Shanghai
Singapore
Shanghai
17
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Chart Title
OUE Bayfront One Raffles Place OUE Downtown Singapore Core CBD Office
1000
914
971
917
75
80
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Lippo Plaza Shanghai CBD Grade A Office
811
854
Committed Office Rents In Line Or Above Market
2Q 2020Average Expired
RentsCommitted Rents(1) Sub-market
Comparable Sub-market Rents
Colliers(2) Savills(3)
Singapore
OUE Bayfront S$1150 S$1320New Downtown
Marina BayS$1198 S$1298
One Raffles Place S$889 S$880 ndash S$1020 Raffles Place S$1029 S$1017
OUE Downtown
OfficeS$732 S$800 ndash S$880
Shenton Way
Tanjong PagarS$1043 S$891 ndash S$926
Shanghai
Lippo Plaza RMB973 RMB550 ndash RMB1090 Puxi RMB883 RMB1040(4)
Singapore office properties continued to achieve rents which were in line or above their respective market rents
Continued to record positive rental reversions across Singapore office properties in 2Q 2020 ranging from 68 to 148
(1) Committed rents for renewals and new leases
(2) Source Colliers Singapore Office Quarterly 2Q 2020 for Singapore comparable sub-market rents Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai comparable sub-market rents
(3) Source Savills Singapore Office Briefing 1Q 2020 for Singapore comparable sub-market rents Savills Shanghai Office Market in Minutes Update 1Q 2020 for Shanghai comparable sub-market rents
(4) Shanghai Grade A office rent for prime districts of Nanjing Road West Huaihai Middle Road and Lujiazui as defined by Savills
Note For reference CBRE Researchrsquos 2Q 2020 Grade A Singapore office rent is S$1115 psfmth Sub-market rents are not published 18
Average Passing Rents
(1) Proforma average passing rents as at 30 September 2013 as disclosed in OUE C-REITrsquos Prospectus dated 17 January 2014
Average passing office rent for all
Singapore office properties
improved as of June 2020 due to
consecutive quarters of positive
rental reversions
Lippo Plazarsquos average passing
office rent was stable at RMB964
psmday as of June 2020
19
Singapore
(Office)
Shanghai
(Office)
Mandarin
Gallery
Average retail rent at Mandarin
Gallery remained stable
1040 10581175 1185 1143 1160 1198 1203 1209
1026 1028 992 945 968 969 988
694 727 731 739
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
OUE Bayfront One Raffles Place OUE Downtown Office
S$ psfmth
(1)
906 914
945
989979 981
965 970 964
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Lippo Plaza
RMB psmday
(1)
2360
2460
2360 2360
2250 22302170 2195 2195 2202
2247
2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Mandarin Gallery
S$ psfmth
4947
46
24
2119
18 17 1714
Bank ofAmerica Merrill
Lynch
Deloitte ampTouche LLP
LuxuryVentures
L Brands Allen amp OveryLLP
Aramco AsiaSingapore Pte
Ltd
Spaces Virgin ActiveSingapore Pte
Ltd
OUELimited
Hogan LovellsLee amp Lee
Top 10 Tenants ndash Commercial Segment
As of Jun 2020
20
By Gross Rental Income 272
Top 10 Tenants
(1) Including the hotel master lease arrangements for Mandarin Orchard Singapore and Crowne Plaza Changi Airport where OUE Limited is the master lessee OUE Limitedrsquos contribution
to the portfolio by gross rental income is 235
(1)
143
311
273
166
107
111
294
253
190
152
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income
91
90
Based on committed tenancies and excludes turnover rent
(1) ldquoNLArdquo refers to net lettable area
WALE of 19 years by NLA(1) and 22 years by Gross Rental Income
21
Lease Expiry Profile - Commercial Segment
As at 30 Jun 2020
111 of OUE C-REITrsquos commercial segment gross rental income is due for renewal for the rest of
2020 This has been reduced to 58 post the quarter-end
Completed (Year-to-date)
396282
223
6633
350
288249
76
37
2020 2021 2022 2023 2024 and beyond
69
323
256234
118
66
308
257 247
122
2020 2021 2022 2023 2024 and beyond
41
347
245216
151
43
313
245 241
158
2020 2021 2022 2023 2024 and beyond
22
Lease Expiry Profile by Commercial Property
OUE Bayfront
WALE 23 years (NLA) 23 Years (GRI)
OUE Downtown Office
WALE 12 years (NLA) 13 years (GRI)
One Raffles Place
WALE 21 years (NLA) 21 Years (GRI)
Lippo Plaza
WALE 23 years (NLA) 29 years (GRI)
As at 30 Jun 2020By NLA By Gross Rental Income Completed (Year-to-date)
8682
118109
28
25
(1)
(1) Post the quarter-end 83 of NLA and 86 of gross rental income remains
to be renewed for the balance of 2020
36
273
421
137 133
29
228
333
105
305
2020 2021 2022 2023 2024 and beyond
148
114
(1)
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Key Highlights
11
Portfolio
Performance
916
Commercial Segment(2)
Committed Occupancy
Financial
Highlights
Capital
Management
Aggregate
Leverage
401
68 - 148
Singapore Office
Rental Reversions
58
312Q 2019 35
Weighted Average
Cost of Debt
8072Q 2019 761
Fixed Rate Debt
S$504237 YoY
2Q 2020
Net Property Income
m S$683406 YoY
1H 2020 Amount Available
for Distribution
m
2Q 2019 393
2Q 2019 945
S$643239 YoY
2Q 2020
Revenue
m
S$1000
Issued in June 2020
40 Notes due 2025
m
(1) After retention of S$138 million of which S$30 million is for ongoing working capital requirements
(2) Commercial segment comprises OUE Bayfront One Raffles Place (6795 effective interest) office components of OUE Downtown (ldquoOUE Downtown Officerdquo) Lippo Plaza (912 strata
interest) and Mandarin Gallery
S$545121 YoY
1H 2020
Distribution(1)
Gross Rental Income Due for
Renewal for Balance of 2020
m
Net property income in 2Q 2020 and 1H 2020 of S$504 million and S$1125 million respectively was higher YoY due primarily to
contribution from Mandarin Gallery Mandarin Orchard Singapore and Crowne Plaza Changi Airport upon completion of the merger with
OUE Hospitality Trust in 2019 This increase was partially offset by provision for rental rebates to tenants
Amount available for distribution of S$307 million in 2Q 2020 and S$683 million in 1H 2020 were respectively higher YoY
In view of continued uncertainties posed by the COVID-19 pandemic S$138 million of distribution was retained to preserve financial
flexibility Consequently 1H 2020 distribution to Unitholders was S$545 million 121 higher YoY
2Q 2020
(S$m)
2Q 2019
(S$m)
Change
()
1H 2020
(S$m)
1H 2019
(S$m)
Change
()
Revenue 643 519 239 1420 1072 324
Net Property Income 504 408 237 1125 843 334
Amount Available for
Distribution307 225 360 683 486 406
Distribution to Unitholders 545 486 121
Distribution per Unit 100(1) 168(2) (405)
12
Summary of Results ndash 2Q 2020 amp 1H 2020
(1) Based on 5415 million Units in issue and to be issued as at 30 June 2020
(2) Based on 2872 million Units in issue and to be issued as at 30 June 2019
Issued S$100 million 40 notes due 2025 on 24 June 2020 to refinance existing borrowings
Balance of 2020 debt to be refinanced ahead of maturity with average cost of debt expected to remain stable
With 807 of debt on fixed rate basis earnings are mitigated against interest rate fluctuations
As at 30 Jun 2020 As at 31 Mar 2020
Aggregate Leverage 401 402
Total debt S$2644m(1) S$2656m(2)
Weighted average cost of debt 31 pa 32 pa
Average term of debt 18 years 19 years
fixed rate debt 807 766
unsecured debt 416 407
Average term of fixed rate debt 21 years 21 years
Interest coverage ratio(3) 28x 29x
Capital Management
13
(1) Based on SGDCNY exchange rate of 15092 as at 30 June 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(2) Based on SGDCNY exchange rate of 14885 as at 31 March 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(3) Interest coverage ratio as prescribed under Appendix 6 of the Monetary Authority of Singaporersquos Code on Collective Investment Schemes (last revised on 16 April 2020)
Debt Maturity Profile as at 30 June 2020
342
150 107
425
450
644 253
150
100
23
2020 2021 2022 2023 2024 2025
Unsecured SGD Loan Secured SGD Loan
Share of OUB Centre Limiteds Unsecured SGD Loan MTN
Secured RMB Loan
S$ million
Commercial
Segment
474
350
519
408
Revenue Net Property Income
2Q 2020 2Q 2019
15
Portfolio Performance ndash Commercial Segment
2Q 2020 amp 1H 2020
86
141
(S$ million) (S$ million)
1083
821
1072
843
Revenue Net Property Income
1H 2020 1H 2019
10
26
The lower YoY performance in revenue and net property income was mainly due to provisions for rental rebates
extended to tenants to cushion the impact of business disruption caused by COVID-19 pandemic
Rental rebates committed to commercial tenants to date amount to approximately S$138 million
1000
914 917
811
944916
OUE Bayfront One Raffles Place OUE Downtown Office Lippo Plaza Mandarin Gallery Commercial Segment
Market 854(2)
16
Commercial Segment Occupancy
Office 913
Commercial segment committed occupancy declined 27 percentage points (ldquopptrdquo) quarter-on-quarter (ldquoQoQrdquo) to
916 as at 30 June 2020
In Singapore committed office occupancy eased 20 ppt QoQ to 937 as the weak economic outlook dampened
leasing momentum compounded by the suspension of leasing activities during the circuit breaker period
Mandarin Galleryrsquos committed occupancy fell 34 ppt QoQ to 944 due to continued operating challenges facing the
retail segment amidst the pandemic situation
Lippo Plazarsquos committed office occupancy declined 47 ppt QoQ to 811 as demand continued to be weak due to
persistent business uncertainty exacerbated by COVID-19
Retail 944 Commercial 916
Market 971(1)
As at 30 Jun 2020(1) Source CBRE Singapore MarketView 2Q 2020 for Singapore Grade A office occupancy of 971
(2) Source Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai CBD Grade A office occupancy of 854
Office Segment Occupancy
Source CBRE Colliers Shanghai
Singapore
Shanghai
17
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Chart Title
OUE Bayfront One Raffles Place OUE Downtown Singapore Core CBD Office
1000
914
971
917
75
80
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Lippo Plaza Shanghai CBD Grade A Office
811
854
Committed Office Rents In Line Or Above Market
2Q 2020Average Expired
RentsCommitted Rents(1) Sub-market
Comparable Sub-market Rents
Colliers(2) Savills(3)
Singapore
OUE Bayfront S$1150 S$1320New Downtown
Marina BayS$1198 S$1298
One Raffles Place S$889 S$880 ndash S$1020 Raffles Place S$1029 S$1017
OUE Downtown
OfficeS$732 S$800 ndash S$880
Shenton Way
Tanjong PagarS$1043 S$891 ndash S$926
Shanghai
Lippo Plaza RMB973 RMB550 ndash RMB1090 Puxi RMB883 RMB1040(4)
Singapore office properties continued to achieve rents which were in line or above their respective market rents
Continued to record positive rental reversions across Singapore office properties in 2Q 2020 ranging from 68 to 148
(1) Committed rents for renewals and new leases
(2) Source Colliers Singapore Office Quarterly 2Q 2020 for Singapore comparable sub-market rents Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai comparable sub-market rents
(3) Source Savills Singapore Office Briefing 1Q 2020 for Singapore comparable sub-market rents Savills Shanghai Office Market in Minutes Update 1Q 2020 for Shanghai comparable sub-market rents
(4) Shanghai Grade A office rent for prime districts of Nanjing Road West Huaihai Middle Road and Lujiazui as defined by Savills
Note For reference CBRE Researchrsquos 2Q 2020 Grade A Singapore office rent is S$1115 psfmth Sub-market rents are not published 18
Average Passing Rents
(1) Proforma average passing rents as at 30 September 2013 as disclosed in OUE C-REITrsquos Prospectus dated 17 January 2014
Average passing office rent for all
Singapore office properties
improved as of June 2020 due to
consecutive quarters of positive
rental reversions
Lippo Plazarsquos average passing
office rent was stable at RMB964
psmday as of June 2020
19
Singapore
(Office)
Shanghai
(Office)
Mandarin
Gallery
Average retail rent at Mandarin
Gallery remained stable
1040 10581175 1185 1143 1160 1198 1203 1209
1026 1028 992 945 968 969 988
694 727 731 739
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
OUE Bayfront One Raffles Place OUE Downtown Office
S$ psfmth
(1)
906 914
945
989979 981
965 970 964
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Lippo Plaza
RMB psmday
(1)
2360
2460
2360 2360
2250 22302170 2195 2195 2202
2247
2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Mandarin Gallery
S$ psfmth
4947
46
24
2119
18 17 1714
Bank ofAmerica Merrill
Lynch
Deloitte ampTouche LLP
LuxuryVentures
L Brands Allen amp OveryLLP
Aramco AsiaSingapore Pte
Ltd
Spaces Virgin ActiveSingapore Pte
Ltd
OUELimited
Hogan LovellsLee amp Lee
Top 10 Tenants ndash Commercial Segment
As of Jun 2020
20
By Gross Rental Income 272
Top 10 Tenants
(1) Including the hotel master lease arrangements for Mandarin Orchard Singapore and Crowne Plaza Changi Airport where OUE Limited is the master lessee OUE Limitedrsquos contribution
to the portfolio by gross rental income is 235
(1)
143
311
273
166
107
111
294
253
190
152
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income
91
90
Based on committed tenancies and excludes turnover rent
(1) ldquoNLArdquo refers to net lettable area
WALE of 19 years by NLA(1) and 22 years by Gross Rental Income
21
Lease Expiry Profile - Commercial Segment
As at 30 Jun 2020
111 of OUE C-REITrsquos commercial segment gross rental income is due for renewal for the rest of
2020 This has been reduced to 58 post the quarter-end
Completed (Year-to-date)
396282
223
6633
350
288249
76
37
2020 2021 2022 2023 2024 and beyond
69
323
256234
118
66
308
257 247
122
2020 2021 2022 2023 2024 and beyond
41
347
245216
151
43
313
245 241
158
2020 2021 2022 2023 2024 and beyond
22
Lease Expiry Profile by Commercial Property
OUE Bayfront
WALE 23 years (NLA) 23 Years (GRI)
OUE Downtown Office
WALE 12 years (NLA) 13 years (GRI)
One Raffles Place
WALE 21 years (NLA) 21 Years (GRI)
Lippo Plaza
WALE 23 years (NLA) 29 years (GRI)
As at 30 Jun 2020By NLA By Gross Rental Income Completed (Year-to-date)
8682
118109
28
25
(1)
(1) Post the quarter-end 83 of NLA and 86 of gross rental income remains
to be renewed for the balance of 2020
36
273
421
137 133
29
228
333
105
305
2020 2021 2022 2023 2024 and beyond
148
114
(1)
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Net property income in 2Q 2020 and 1H 2020 of S$504 million and S$1125 million respectively was higher YoY due primarily to
contribution from Mandarin Gallery Mandarin Orchard Singapore and Crowne Plaza Changi Airport upon completion of the merger with
OUE Hospitality Trust in 2019 This increase was partially offset by provision for rental rebates to tenants
Amount available for distribution of S$307 million in 2Q 2020 and S$683 million in 1H 2020 were respectively higher YoY
In view of continued uncertainties posed by the COVID-19 pandemic S$138 million of distribution was retained to preserve financial
flexibility Consequently 1H 2020 distribution to Unitholders was S$545 million 121 higher YoY
2Q 2020
(S$m)
2Q 2019
(S$m)
Change
()
1H 2020
(S$m)
1H 2019
(S$m)
Change
()
Revenue 643 519 239 1420 1072 324
Net Property Income 504 408 237 1125 843 334
Amount Available for
Distribution307 225 360 683 486 406
Distribution to Unitholders 545 486 121
Distribution per Unit 100(1) 168(2) (405)
12
Summary of Results ndash 2Q 2020 amp 1H 2020
(1) Based on 5415 million Units in issue and to be issued as at 30 June 2020
(2) Based on 2872 million Units in issue and to be issued as at 30 June 2019
Issued S$100 million 40 notes due 2025 on 24 June 2020 to refinance existing borrowings
Balance of 2020 debt to be refinanced ahead of maturity with average cost of debt expected to remain stable
With 807 of debt on fixed rate basis earnings are mitigated against interest rate fluctuations
As at 30 Jun 2020 As at 31 Mar 2020
Aggregate Leverage 401 402
Total debt S$2644m(1) S$2656m(2)
Weighted average cost of debt 31 pa 32 pa
Average term of debt 18 years 19 years
fixed rate debt 807 766
unsecured debt 416 407
Average term of fixed rate debt 21 years 21 years
Interest coverage ratio(3) 28x 29x
Capital Management
13
(1) Based on SGDCNY exchange rate of 15092 as at 30 June 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(2) Based on SGDCNY exchange rate of 14885 as at 31 March 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(3) Interest coverage ratio as prescribed under Appendix 6 of the Monetary Authority of Singaporersquos Code on Collective Investment Schemes (last revised on 16 April 2020)
Debt Maturity Profile as at 30 June 2020
342
150 107
425
450
644 253
150
100
23
2020 2021 2022 2023 2024 2025
Unsecured SGD Loan Secured SGD Loan
Share of OUB Centre Limiteds Unsecured SGD Loan MTN
Secured RMB Loan
S$ million
Commercial
Segment
474
350
519
408
Revenue Net Property Income
2Q 2020 2Q 2019
15
Portfolio Performance ndash Commercial Segment
2Q 2020 amp 1H 2020
86
141
(S$ million) (S$ million)
1083
821
1072
843
Revenue Net Property Income
1H 2020 1H 2019
10
26
The lower YoY performance in revenue and net property income was mainly due to provisions for rental rebates
extended to tenants to cushion the impact of business disruption caused by COVID-19 pandemic
Rental rebates committed to commercial tenants to date amount to approximately S$138 million
1000
914 917
811
944916
OUE Bayfront One Raffles Place OUE Downtown Office Lippo Plaza Mandarin Gallery Commercial Segment
Market 854(2)
16
Commercial Segment Occupancy
Office 913
Commercial segment committed occupancy declined 27 percentage points (ldquopptrdquo) quarter-on-quarter (ldquoQoQrdquo) to
916 as at 30 June 2020
In Singapore committed office occupancy eased 20 ppt QoQ to 937 as the weak economic outlook dampened
leasing momentum compounded by the suspension of leasing activities during the circuit breaker period
Mandarin Galleryrsquos committed occupancy fell 34 ppt QoQ to 944 due to continued operating challenges facing the
retail segment amidst the pandemic situation
Lippo Plazarsquos committed office occupancy declined 47 ppt QoQ to 811 as demand continued to be weak due to
persistent business uncertainty exacerbated by COVID-19
Retail 944 Commercial 916
Market 971(1)
As at 30 Jun 2020(1) Source CBRE Singapore MarketView 2Q 2020 for Singapore Grade A office occupancy of 971
(2) Source Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai CBD Grade A office occupancy of 854
Office Segment Occupancy
Source CBRE Colliers Shanghai
Singapore
Shanghai
17
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Chart Title
OUE Bayfront One Raffles Place OUE Downtown Singapore Core CBD Office
1000
914
971
917
75
80
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Lippo Plaza Shanghai CBD Grade A Office
811
854
Committed Office Rents In Line Or Above Market
2Q 2020Average Expired
RentsCommitted Rents(1) Sub-market
Comparable Sub-market Rents
Colliers(2) Savills(3)
Singapore
OUE Bayfront S$1150 S$1320New Downtown
Marina BayS$1198 S$1298
One Raffles Place S$889 S$880 ndash S$1020 Raffles Place S$1029 S$1017
OUE Downtown
OfficeS$732 S$800 ndash S$880
Shenton Way
Tanjong PagarS$1043 S$891 ndash S$926
Shanghai
Lippo Plaza RMB973 RMB550 ndash RMB1090 Puxi RMB883 RMB1040(4)
Singapore office properties continued to achieve rents which were in line or above their respective market rents
Continued to record positive rental reversions across Singapore office properties in 2Q 2020 ranging from 68 to 148
(1) Committed rents for renewals and new leases
(2) Source Colliers Singapore Office Quarterly 2Q 2020 for Singapore comparable sub-market rents Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai comparable sub-market rents
(3) Source Savills Singapore Office Briefing 1Q 2020 for Singapore comparable sub-market rents Savills Shanghai Office Market in Minutes Update 1Q 2020 for Shanghai comparable sub-market rents
(4) Shanghai Grade A office rent for prime districts of Nanjing Road West Huaihai Middle Road and Lujiazui as defined by Savills
Note For reference CBRE Researchrsquos 2Q 2020 Grade A Singapore office rent is S$1115 psfmth Sub-market rents are not published 18
Average Passing Rents
(1) Proforma average passing rents as at 30 September 2013 as disclosed in OUE C-REITrsquos Prospectus dated 17 January 2014
Average passing office rent for all
Singapore office properties
improved as of June 2020 due to
consecutive quarters of positive
rental reversions
Lippo Plazarsquos average passing
office rent was stable at RMB964
psmday as of June 2020
19
Singapore
(Office)
Shanghai
(Office)
Mandarin
Gallery
Average retail rent at Mandarin
Gallery remained stable
1040 10581175 1185 1143 1160 1198 1203 1209
1026 1028 992 945 968 969 988
694 727 731 739
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
OUE Bayfront One Raffles Place OUE Downtown Office
S$ psfmth
(1)
906 914
945
989979 981
965 970 964
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Lippo Plaza
RMB psmday
(1)
2360
2460
2360 2360
2250 22302170 2195 2195 2202
2247
2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Mandarin Gallery
S$ psfmth
4947
46
24
2119
18 17 1714
Bank ofAmerica Merrill
Lynch
Deloitte ampTouche LLP
LuxuryVentures
L Brands Allen amp OveryLLP
Aramco AsiaSingapore Pte
Ltd
Spaces Virgin ActiveSingapore Pte
Ltd
OUELimited
Hogan LovellsLee amp Lee
Top 10 Tenants ndash Commercial Segment
As of Jun 2020
20
By Gross Rental Income 272
Top 10 Tenants
(1) Including the hotel master lease arrangements for Mandarin Orchard Singapore and Crowne Plaza Changi Airport where OUE Limited is the master lessee OUE Limitedrsquos contribution
to the portfolio by gross rental income is 235
(1)
143
311
273
166
107
111
294
253
190
152
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income
91
90
Based on committed tenancies and excludes turnover rent
(1) ldquoNLArdquo refers to net lettable area
WALE of 19 years by NLA(1) and 22 years by Gross Rental Income
21
Lease Expiry Profile - Commercial Segment
As at 30 Jun 2020
111 of OUE C-REITrsquos commercial segment gross rental income is due for renewal for the rest of
2020 This has been reduced to 58 post the quarter-end
Completed (Year-to-date)
396282
223
6633
350
288249
76
37
2020 2021 2022 2023 2024 and beyond
69
323
256234
118
66
308
257 247
122
2020 2021 2022 2023 2024 and beyond
41
347
245216
151
43
313
245 241
158
2020 2021 2022 2023 2024 and beyond
22
Lease Expiry Profile by Commercial Property
OUE Bayfront
WALE 23 years (NLA) 23 Years (GRI)
OUE Downtown Office
WALE 12 years (NLA) 13 years (GRI)
One Raffles Place
WALE 21 years (NLA) 21 Years (GRI)
Lippo Plaza
WALE 23 years (NLA) 29 years (GRI)
As at 30 Jun 2020By NLA By Gross Rental Income Completed (Year-to-date)
8682
118109
28
25
(1)
(1) Post the quarter-end 83 of NLA and 86 of gross rental income remains
to be renewed for the balance of 2020
36
273
421
137 133
29
228
333
105
305
2020 2021 2022 2023 2024 and beyond
148
114
(1)
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Issued S$100 million 40 notes due 2025 on 24 June 2020 to refinance existing borrowings
Balance of 2020 debt to be refinanced ahead of maturity with average cost of debt expected to remain stable
With 807 of debt on fixed rate basis earnings are mitigated against interest rate fluctuations
As at 30 Jun 2020 As at 31 Mar 2020
Aggregate Leverage 401 402
Total debt S$2644m(1) S$2656m(2)
Weighted average cost of debt 31 pa 32 pa
Average term of debt 18 years 19 years
fixed rate debt 807 766
unsecured debt 416 407
Average term of fixed rate debt 21 years 21 years
Interest coverage ratio(3) 28x 29x
Capital Management
13
(1) Based on SGDCNY exchange rate of 15092 as at 30 June 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(2) Based on SGDCNY exchange rate of 14885 as at 31 March 2020 and includes OUE C-REITrsquos share of OUB Centre Limitedrsquos loan
(3) Interest coverage ratio as prescribed under Appendix 6 of the Monetary Authority of Singaporersquos Code on Collective Investment Schemes (last revised on 16 April 2020)
Debt Maturity Profile as at 30 June 2020
342
150 107
425
450
644 253
150
100
23
2020 2021 2022 2023 2024 2025
Unsecured SGD Loan Secured SGD Loan
Share of OUB Centre Limiteds Unsecured SGD Loan MTN
Secured RMB Loan
S$ million
Commercial
Segment
474
350
519
408
Revenue Net Property Income
2Q 2020 2Q 2019
15
Portfolio Performance ndash Commercial Segment
2Q 2020 amp 1H 2020
86
141
(S$ million) (S$ million)
1083
821
1072
843
Revenue Net Property Income
1H 2020 1H 2019
10
26
The lower YoY performance in revenue and net property income was mainly due to provisions for rental rebates
extended to tenants to cushion the impact of business disruption caused by COVID-19 pandemic
Rental rebates committed to commercial tenants to date amount to approximately S$138 million
1000
914 917
811
944916
OUE Bayfront One Raffles Place OUE Downtown Office Lippo Plaza Mandarin Gallery Commercial Segment
Market 854(2)
16
Commercial Segment Occupancy
Office 913
Commercial segment committed occupancy declined 27 percentage points (ldquopptrdquo) quarter-on-quarter (ldquoQoQrdquo) to
916 as at 30 June 2020
In Singapore committed office occupancy eased 20 ppt QoQ to 937 as the weak economic outlook dampened
leasing momentum compounded by the suspension of leasing activities during the circuit breaker period
Mandarin Galleryrsquos committed occupancy fell 34 ppt QoQ to 944 due to continued operating challenges facing the
retail segment amidst the pandemic situation
Lippo Plazarsquos committed office occupancy declined 47 ppt QoQ to 811 as demand continued to be weak due to
persistent business uncertainty exacerbated by COVID-19
Retail 944 Commercial 916
Market 971(1)
As at 30 Jun 2020(1) Source CBRE Singapore MarketView 2Q 2020 for Singapore Grade A office occupancy of 971
(2) Source Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai CBD Grade A office occupancy of 854
Office Segment Occupancy
Source CBRE Colliers Shanghai
Singapore
Shanghai
17
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Chart Title
OUE Bayfront One Raffles Place OUE Downtown Singapore Core CBD Office
1000
914
971
917
75
80
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Lippo Plaza Shanghai CBD Grade A Office
811
854
Committed Office Rents In Line Or Above Market
2Q 2020Average Expired
RentsCommitted Rents(1) Sub-market
Comparable Sub-market Rents
Colliers(2) Savills(3)
Singapore
OUE Bayfront S$1150 S$1320New Downtown
Marina BayS$1198 S$1298
One Raffles Place S$889 S$880 ndash S$1020 Raffles Place S$1029 S$1017
OUE Downtown
OfficeS$732 S$800 ndash S$880
Shenton Way
Tanjong PagarS$1043 S$891 ndash S$926
Shanghai
Lippo Plaza RMB973 RMB550 ndash RMB1090 Puxi RMB883 RMB1040(4)
Singapore office properties continued to achieve rents which were in line or above their respective market rents
Continued to record positive rental reversions across Singapore office properties in 2Q 2020 ranging from 68 to 148
(1) Committed rents for renewals and new leases
(2) Source Colliers Singapore Office Quarterly 2Q 2020 for Singapore comparable sub-market rents Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai comparable sub-market rents
(3) Source Savills Singapore Office Briefing 1Q 2020 for Singapore comparable sub-market rents Savills Shanghai Office Market in Minutes Update 1Q 2020 for Shanghai comparable sub-market rents
(4) Shanghai Grade A office rent for prime districts of Nanjing Road West Huaihai Middle Road and Lujiazui as defined by Savills
Note For reference CBRE Researchrsquos 2Q 2020 Grade A Singapore office rent is S$1115 psfmth Sub-market rents are not published 18
Average Passing Rents
(1) Proforma average passing rents as at 30 September 2013 as disclosed in OUE C-REITrsquos Prospectus dated 17 January 2014
Average passing office rent for all
Singapore office properties
improved as of June 2020 due to
consecutive quarters of positive
rental reversions
Lippo Plazarsquos average passing
office rent was stable at RMB964
psmday as of June 2020
19
Singapore
(Office)
Shanghai
(Office)
Mandarin
Gallery
Average retail rent at Mandarin
Gallery remained stable
1040 10581175 1185 1143 1160 1198 1203 1209
1026 1028 992 945 968 969 988
694 727 731 739
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
OUE Bayfront One Raffles Place OUE Downtown Office
S$ psfmth
(1)
906 914
945
989979 981
965 970 964
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Lippo Plaza
RMB psmday
(1)
2360
2460
2360 2360
2250 22302170 2195 2195 2202
2247
2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Mandarin Gallery
S$ psfmth
4947
46
24
2119
18 17 1714
Bank ofAmerica Merrill
Lynch
Deloitte ampTouche LLP
LuxuryVentures
L Brands Allen amp OveryLLP
Aramco AsiaSingapore Pte
Ltd
Spaces Virgin ActiveSingapore Pte
Ltd
OUELimited
Hogan LovellsLee amp Lee
Top 10 Tenants ndash Commercial Segment
As of Jun 2020
20
By Gross Rental Income 272
Top 10 Tenants
(1) Including the hotel master lease arrangements for Mandarin Orchard Singapore and Crowne Plaza Changi Airport where OUE Limited is the master lessee OUE Limitedrsquos contribution
to the portfolio by gross rental income is 235
(1)
143
311
273
166
107
111
294
253
190
152
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income
91
90
Based on committed tenancies and excludes turnover rent
(1) ldquoNLArdquo refers to net lettable area
WALE of 19 years by NLA(1) and 22 years by Gross Rental Income
21
Lease Expiry Profile - Commercial Segment
As at 30 Jun 2020
111 of OUE C-REITrsquos commercial segment gross rental income is due for renewal for the rest of
2020 This has been reduced to 58 post the quarter-end
Completed (Year-to-date)
396282
223
6633
350
288249
76
37
2020 2021 2022 2023 2024 and beyond
69
323
256234
118
66
308
257 247
122
2020 2021 2022 2023 2024 and beyond
41
347
245216
151
43
313
245 241
158
2020 2021 2022 2023 2024 and beyond
22
Lease Expiry Profile by Commercial Property
OUE Bayfront
WALE 23 years (NLA) 23 Years (GRI)
OUE Downtown Office
WALE 12 years (NLA) 13 years (GRI)
One Raffles Place
WALE 21 years (NLA) 21 Years (GRI)
Lippo Plaza
WALE 23 years (NLA) 29 years (GRI)
As at 30 Jun 2020By NLA By Gross Rental Income Completed (Year-to-date)
8682
118109
28
25
(1)
(1) Post the quarter-end 83 of NLA and 86 of gross rental income remains
to be renewed for the balance of 2020
36
273
421
137 133
29
228
333
105
305
2020 2021 2022 2023 2024 and beyond
148
114
(1)
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Commercial
Segment
474
350
519
408
Revenue Net Property Income
2Q 2020 2Q 2019
15
Portfolio Performance ndash Commercial Segment
2Q 2020 amp 1H 2020
86
141
(S$ million) (S$ million)
1083
821
1072
843
Revenue Net Property Income
1H 2020 1H 2019
10
26
The lower YoY performance in revenue and net property income was mainly due to provisions for rental rebates
extended to tenants to cushion the impact of business disruption caused by COVID-19 pandemic
Rental rebates committed to commercial tenants to date amount to approximately S$138 million
1000
914 917
811
944916
OUE Bayfront One Raffles Place OUE Downtown Office Lippo Plaza Mandarin Gallery Commercial Segment
Market 854(2)
16
Commercial Segment Occupancy
Office 913
Commercial segment committed occupancy declined 27 percentage points (ldquopptrdquo) quarter-on-quarter (ldquoQoQrdquo) to
916 as at 30 June 2020
In Singapore committed office occupancy eased 20 ppt QoQ to 937 as the weak economic outlook dampened
leasing momentum compounded by the suspension of leasing activities during the circuit breaker period
Mandarin Galleryrsquos committed occupancy fell 34 ppt QoQ to 944 due to continued operating challenges facing the
retail segment amidst the pandemic situation
Lippo Plazarsquos committed office occupancy declined 47 ppt QoQ to 811 as demand continued to be weak due to
persistent business uncertainty exacerbated by COVID-19
Retail 944 Commercial 916
Market 971(1)
As at 30 Jun 2020(1) Source CBRE Singapore MarketView 2Q 2020 for Singapore Grade A office occupancy of 971
(2) Source Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai CBD Grade A office occupancy of 854
Office Segment Occupancy
Source CBRE Colliers Shanghai
Singapore
Shanghai
17
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Chart Title
OUE Bayfront One Raffles Place OUE Downtown Singapore Core CBD Office
1000
914
971
917
75
80
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Lippo Plaza Shanghai CBD Grade A Office
811
854
Committed Office Rents In Line Or Above Market
2Q 2020Average Expired
RentsCommitted Rents(1) Sub-market
Comparable Sub-market Rents
Colliers(2) Savills(3)
Singapore
OUE Bayfront S$1150 S$1320New Downtown
Marina BayS$1198 S$1298
One Raffles Place S$889 S$880 ndash S$1020 Raffles Place S$1029 S$1017
OUE Downtown
OfficeS$732 S$800 ndash S$880
Shenton Way
Tanjong PagarS$1043 S$891 ndash S$926
Shanghai
Lippo Plaza RMB973 RMB550 ndash RMB1090 Puxi RMB883 RMB1040(4)
Singapore office properties continued to achieve rents which were in line or above their respective market rents
Continued to record positive rental reversions across Singapore office properties in 2Q 2020 ranging from 68 to 148
(1) Committed rents for renewals and new leases
(2) Source Colliers Singapore Office Quarterly 2Q 2020 for Singapore comparable sub-market rents Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai comparable sub-market rents
(3) Source Savills Singapore Office Briefing 1Q 2020 for Singapore comparable sub-market rents Savills Shanghai Office Market in Minutes Update 1Q 2020 for Shanghai comparable sub-market rents
(4) Shanghai Grade A office rent for prime districts of Nanjing Road West Huaihai Middle Road and Lujiazui as defined by Savills
Note For reference CBRE Researchrsquos 2Q 2020 Grade A Singapore office rent is S$1115 psfmth Sub-market rents are not published 18
Average Passing Rents
(1) Proforma average passing rents as at 30 September 2013 as disclosed in OUE C-REITrsquos Prospectus dated 17 January 2014
Average passing office rent for all
Singapore office properties
improved as of June 2020 due to
consecutive quarters of positive
rental reversions
Lippo Plazarsquos average passing
office rent was stable at RMB964
psmday as of June 2020
19
Singapore
(Office)
Shanghai
(Office)
Mandarin
Gallery
Average retail rent at Mandarin
Gallery remained stable
1040 10581175 1185 1143 1160 1198 1203 1209
1026 1028 992 945 968 969 988
694 727 731 739
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
OUE Bayfront One Raffles Place OUE Downtown Office
S$ psfmth
(1)
906 914
945
989979 981
965 970 964
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Lippo Plaza
RMB psmday
(1)
2360
2460
2360 2360
2250 22302170 2195 2195 2202
2247
2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Mandarin Gallery
S$ psfmth
4947
46
24
2119
18 17 1714
Bank ofAmerica Merrill
Lynch
Deloitte ampTouche LLP
LuxuryVentures
L Brands Allen amp OveryLLP
Aramco AsiaSingapore Pte
Ltd
Spaces Virgin ActiveSingapore Pte
Ltd
OUELimited
Hogan LovellsLee amp Lee
Top 10 Tenants ndash Commercial Segment
As of Jun 2020
20
By Gross Rental Income 272
Top 10 Tenants
(1) Including the hotel master lease arrangements for Mandarin Orchard Singapore and Crowne Plaza Changi Airport where OUE Limited is the master lessee OUE Limitedrsquos contribution
to the portfolio by gross rental income is 235
(1)
143
311
273
166
107
111
294
253
190
152
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income
91
90
Based on committed tenancies and excludes turnover rent
(1) ldquoNLArdquo refers to net lettable area
WALE of 19 years by NLA(1) and 22 years by Gross Rental Income
21
Lease Expiry Profile - Commercial Segment
As at 30 Jun 2020
111 of OUE C-REITrsquos commercial segment gross rental income is due for renewal for the rest of
2020 This has been reduced to 58 post the quarter-end
Completed (Year-to-date)
396282
223
6633
350
288249
76
37
2020 2021 2022 2023 2024 and beyond
69
323
256234
118
66
308
257 247
122
2020 2021 2022 2023 2024 and beyond
41
347
245216
151
43
313
245 241
158
2020 2021 2022 2023 2024 and beyond
22
Lease Expiry Profile by Commercial Property
OUE Bayfront
WALE 23 years (NLA) 23 Years (GRI)
OUE Downtown Office
WALE 12 years (NLA) 13 years (GRI)
One Raffles Place
WALE 21 years (NLA) 21 Years (GRI)
Lippo Plaza
WALE 23 years (NLA) 29 years (GRI)
As at 30 Jun 2020By NLA By Gross Rental Income Completed (Year-to-date)
8682
118109
28
25
(1)
(1) Post the quarter-end 83 of NLA and 86 of gross rental income remains
to be renewed for the balance of 2020
36
273
421
137 133
29
228
333
105
305
2020 2021 2022 2023 2024 and beyond
148
114
(1)
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
474
350
519
408
Revenue Net Property Income
2Q 2020 2Q 2019
15
Portfolio Performance ndash Commercial Segment
2Q 2020 amp 1H 2020
86
141
(S$ million) (S$ million)
1083
821
1072
843
Revenue Net Property Income
1H 2020 1H 2019
10
26
The lower YoY performance in revenue and net property income was mainly due to provisions for rental rebates
extended to tenants to cushion the impact of business disruption caused by COVID-19 pandemic
Rental rebates committed to commercial tenants to date amount to approximately S$138 million
1000
914 917
811
944916
OUE Bayfront One Raffles Place OUE Downtown Office Lippo Plaza Mandarin Gallery Commercial Segment
Market 854(2)
16
Commercial Segment Occupancy
Office 913
Commercial segment committed occupancy declined 27 percentage points (ldquopptrdquo) quarter-on-quarter (ldquoQoQrdquo) to
916 as at 30 June 2020
In Singapore committed office occupancy eased 20 ppt QoQ to 937 as the weak economic outlook dampened
leasing momentum compounded by the suspension of leasing activities during the circuit breaker period
Mandarin Galleryrsquos committed occupancy fell 34 ppt QoQ to 944 due to continued operating challenges facing the
retail segment amidst the pandemic situation
Lippo Plazarsquos committed office occupancy declined 47 ppt QoQ to 811 as demand continued to be weak due to
persistent business uncertainty exacerbated by COVID-19
Retail 944 Commercial 916
Market 971(1)
As at 30 Jun 2020(1) Source CBRE Singapore MarketView 2Q 2020 for Singapore Grade A office occupancy of 971
(2) Source Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai CBD Grade A office occupancy of 854
Office Segment Occupancy
Source CBRE Colliers Shanghai
Singapore
Shanghai
17
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Chart Title
OUE Bayfront One Raffles Place OUE Downtown Singapore Core CBD Office
1000
914
971
917
75
80
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Lippo Plaza Shanghai CBD Grade A Office
811
854
Committed Office Rents In Line Or Above Market
2Q 2020Average Expired
RentsCommitted Rents(1) Sub-market
Comparable Sub-market Rents
Colliers(2) Savills(3)
Singapore
OUE Bayfront S$1150 S$1320New Downtown
Marina BayS$1198 S$1298
One Raffles Place S$889 S$880 ndash S$1020 Raffles Place S$1029 S$1017
OUE Downtown
OfficeS$732 S$800 ndash S$880
Shenton Way
Tanjong PagarS$1043 S$891 ndash S$926
Shanghai
Lippo Plaza RMB973 RMB550 ndash RMB1090 Puxi RMB883 RMB1040(4)
Singapore office properties continued to achieve rents which were in line or above their respective market rents
Continued to record positive rental reversions across Singapore office properties in 2Q 2020 ranging from 68 to 148
(1) Committed rents for renewals and new leases
(2) Source Colliers Singapore Office Quarterly 2Q 2020 for Singapore comparable sub-market rents Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai comparable sub-market rents
(3) Source Savills Singapore Office Briefing 1Q 2020 for Singapore comparable sub-market rents Savills Shanghai Office Market in Minutes Update 1Q 2020 for Shanghai comparable sub-market rents
(4) Shanghai Grade A office rent for prime districts of Nanjing Road West Huaihai Middle Road and Lujiazui as defined by Savills
Note For reference CBRE Researchrsquos 2Q 2020 Grade A Singapore office rent is S$1115 psfmth Sub-market rents are not published 18
Average Passing Rents
(1) Proforma average passing rents as at 30 September 2013 as disclosed in OUE C-REITrsquos Prospectus dated 17 January 2014
Average passing office rent for all
Singapore office properties
improved as of June 2020 due to
consecutive quarters of positive
rental reversions
Lippo Plazarsquos average passing
office rent was stable at RMB964
psmday as of June 2020
19
Singapore
(Office)
Shanghai
(Office)
Mandarin
Gallery
Average retail rent at Mandarin
Gallery remained stable
1040 10581175 1185 1143 1160 1198 1203 1209
1026 1028 992 945 968 969 988
694 727 731 739
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
OUE Bayfront One Raffles Place OUE Downtown Office
S$ psfmth
(1)
906 914
945
989979 981
965 970 964
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Lippo Plaza
RMB psmday
(1)
2360
2460
2360 2360
2250 22302170 2195 2195 2202
2247
2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Mandarin Gallery
S$ psfmth
4947
46
24
2119
18 17 1714
Bank ofAmerica Merrill
Lynch
Deloitte ampTouche LLP
LuxuryVentures
L Brands Allen amp OveryLLP
Aramco AsiaSingapore Pte
Ltd
Spaces Virgin ActiveSingapore Pte
Ltd
OUELimited
Hogan LovellsLee amp Lee
Top 10 Tenants ndash Commercial Segment
As of Jun 2020
20
By Gross Rental Income 272
Top 10 Tenants
(1) Including the hotel master lease arrangements for Mandarin Orchard Singapore and Crowne Plaza Changi Airport where OUE Limited is the master lessee OUE Limitedrsquos contribution
to the portfolio by gross rental income is 235
(1)
143
311
273
166
107
111
294
253
190
152
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income
91
90
Based on committed tenancies and excludes turnover rent
(1) ldquoNLArdquo refers to net lettable area
WALE of 19 years by NLA(1) and 22 years by Gross Rental Income
21
Lease Expiry Profile - Commercial Segment
As at 30 Jun 2020
111 of OUE C-REITrsquos commercial segment gross rental income is due for renewal for the rest of
2020 This has been reduced to 58 post the quarter-end
Completed (Year-to-date)
396282
223
6633
350
288249
76
37
2020 2021 2022 2023 2024 and beyond
69
323
256234
118
66
308
257 247
122
2020 2021 2022 2023 2024 and beyond
41
347
245216
151
43
313
245 241
158
2020 2021 2022 2023 2024 and beyond
22
Lease Expiry Profile by Commercial Property
OUE Bayfront
WALE 23 years (NLA) 23 Years (GRI)
OUE Downtown Office
WALE 12 years (NLA) 13 years (GRI)
One Raffles Place
WALE 21 years (NLA) 21 Years (GRI)
Lippo Plaza
WALE 23 years (NLA) 29 years (GRI)
As at 30 Jun 2020By NLA By Gross Rental Income Completed (Year-to-date)
8682
118109
28
25
(1)
(1) Post the quarter-end 83 of NLA and 86 of gross rental income remains
to be renewed for the balance of 2020
36
273
421
137 133
29
228
333
105
305
2020 2021 2022 2023 2024 and beyond
148
114
(1)
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
1000
914 917
811
944916
OUE Bayfront One Raffles Place OUE Downtown Office Lippo Plaza Mandarin Gallery Commercial Segment
Market 854(2)
16
Commercial Segment Occupancy
Office 913
Commercial segment committed occupancy declined 27 percentage points (ldquopptrdquo) quarter-on-quarter (ldquoQoQrdquo) to
916 as at 30 June 2020
In Singapore committed office occupancy eased 20 ppt QoQ to 937 as the weak economic outlook dampened
leasing momentum compounded by the suspension of leasing activities during the circuit breaker period
Mandarin Galleryrsquos committed occupancy fell 34 ppt QoQ to 944 due to continued operating challenges facing the
retail segment amidst the pandemic situation
Lippo Plazarsquos committed office occupancy declined 47 ppt QoQ to 811 as demand continued to be weak due to
persistent business uncertainty exacerbated by COVID-19
Retail 944 Commercial 916
Market 971(1)
As at 30 Jun 2020(1) Source CBRE Singapore MarketView 2Q 2020 for Singapore Grade A office occupancy of 971
(2) Source Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai CBD Grade A office occupancy of 854
Office Segment Occupancy
Source CBRE Colliers Shanghai
Singapore
Shanghai
17
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Chart Title
OUE Bayfront One Raffles Place OUE Downtown Singapore Core CBD Office
1000
914
971
917
75
80
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Lippo Plaza Shanghai CBD Grade A Office
811
854
Committed Office Rents In Line Or Above Market
2Q 2020Average Expired
RentsCommitted Rents(1) Sub-market
Comparable Sub-market Rents
Colliers(2) Savills(3)
Singapore
OUE Bayfront S$1150 S$1320New Downtown
Marina BayS$1198 S$1298
One Raffles Place S$889 S$880 ndash S$1020 Raffles Place S$1029 S$1017
OUE Downtown
OfficeS$732 S$800 ndash S$880
Shenton Way
Tanjong PagarS$1043 S$891 ndash S$926
Shanghai
Lippo Plaza RMB973 RMB550 ndash RMB1090 Puxi RMB883 RMB1040(4)
Singapore office properties continued to achieve rents which were in line or above their respective market rents
Continued to record positive rental reversions across Singapore office properties in 2Q 2020 ranging from 68 to 148
(1) Committed rents for renewals and new leases
(2) Source Colliers Singapore Office Quarterly 2Q 2020 for Singapore comparable sub-market rents Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai comparable sub-market rents
(3) Source Savills Singapore Office Briefing 1Q 2020 for Singapore comparable sub-market rents Savills Shanghai Office Market in Minutes Update 1Q 2020 for Shanghai comparable sub-market rents
(4) Shanghai Grade A office rent for prime districts of Nanjing Road West Huaihai Middle Road and Lujiazui as defined by Savills
Note For reference CBRE Researchrsquos 2Q 2020 Grade A Singapore office rent is S$1115 psfmth Sub-market rents are not published 18
Average Passing Rents
(1) Proforma average passing rents as at 30 September 2013 as disclosed in OUE C-REITrsquos Prospectus dated 17 January 2014
Average passing office rent for all
Singapore office properties
improved as of June 2020 due to
consecutive quarters of positive
rental reversions
Lippo Plazarsquos average passing
office rent was stable at RMB964
psmday as of June 2020
19
Singapore
(Office)
Shanghai
(Office)
Mandarin
Gallery
Average retail rent at Mandarin
Gallery remained stable
1040 10581175 1185 1143 1160 1198 1203 1209
1026 1028 992 945 968 969 988
694 727 731 739
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
OUE Bayfront One Raffles Place OUE Downtown Office
S$ psfmth
(1)
906 914
945
989979 981
965 970 964
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Lippo Plaza
RMB psmday
(1)
2360
2460
2360 2360
2250 22302170 2195 2195 2202
2247
2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Mandarin Gallery
S$ psfmth
4947
46
24
2119
18 17 1714
Bank ofAmerica Merrill
Lynch
Deloitte ampTouche LLP
LuxuryVentures
L Brands Allen amp OveryLLP
Aramco AsiaSingapore Pte
Ltd
Spaces Virgin ActiveSingapore Pte
Ltd
OUELimited
Hogan LovellsLee amp Lee
Top 10 Tenants ndash Commercial Segment
As of Jun 2020
20
By Gross Rental Income 272
Top 10 Tenants
(1) Including the hotel master lease arrangements for Mandarin Orchard Singapore and Crowne Plaza Changi Airport where OUE Limited is the master lessee OUE Limitedrsquos contribution
to the portfolio by gross rental income is 235
(1)
143
311
273
166
107
111
294
253
190
152
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income
91
90
Based on committed tenancies and excludes turnover rent
(1) ldquoNLArdquo refers to net lettable area
WALE of 19 years by NLA(1) and 22 years by Gross Rental Income
21
Lease Expiry Profile - Commercial Segment
As at 30 Jun 2020
111 of OUE C-REITrsquos commercial segment gross rental income is due for renewal for the rest of
2020 This has been reduced to 58 post the quarter-end
Completed (Year-to-date)
396282
223
6633
350
288249
76
37
2020 2021 2022 2023 2024 and beyond
69
323
256234
118
66
308
257 247
122
2020 2021 2022 2023 2024 and beyond
41
347
245216
151
43
313
245 241
158
2020 2021 2022 2023 2024 and beyond
22
Lease Expiry Profile by Commercial Property
OUE Bayfront
WALE 23 years (NLA) 23 Years (GRI)
OUE Downtown Office
WALE 12 years (NLA) 13 years (GRI)
One Raffles Place
WALE 21 years (NLA) 21 Years (GRI)
Lippo Plaza
WALE 23 years (NLA) 29 years (GRI)
As at 30 Jun 2020By NLA By Gross Rental Income Completed (Year-to-date)
8682
118109
28
25
(1)
(1) Post the quarter-end 83 of NLA and 86 of gross rental income remains
to be renewed for the balance of 2020
36
273
421
137 133
29
228
333
105
305
2020 2021 2022 2023 2024 and beyond
148
114
(1)
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Office Segment Occupancy
Source CBRE Colliers Shanghai
Singapore
Shanghai
17
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Chart Title
OUE Bayfront One Raffles Place OUE Downtown Singapore Core CBD Office
1000
914
971
917
75
80
85
90
95
100
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
Lippo Plaza Shanghai CBD Grade A Office
811
854
Committed Office Rents In Line Or Above Market
2Q 2020Average Expired
RentsCommitted Rents(1) Sub-market
Comparable Sub-market Rents
Colliers(2) Savills(3)
Singapore
OUE Bayfront S$1150 S$1320New Downtown
Marina BayS$1198 S$1298
One Raffles Place S$889 S$880 ndash S$1020 Raffles Place S$1029 S$1017
OUE Downtown
OfficeS$732 S$800 ndash S$880
Shenton Way
Tanjong PagarS$1043 S$891 ndash S$926
Shanghai
Lippo Plaza RMB973 RMB550 ndash RMB1090 Puxi RMB883 RMB1040(4)
Singapore office properties continued to achieve rents which were in line or above their respective market rents
Continued to record positive rental reversions across Singapore office properties in 2Q 2020 ranging from 68 to 148
(1) Committed rents for renewals and new leases
(2) Source Colliers Singapore Office Quarterly 2Q 2020 for Singapore comparable sub-market rents Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai comparable sub-market rents
(3) Source Savills Singapore Office Briefing 1Q 2020 for Singapore comparable sub-market rents Savills Shanghai Office Market in Minutes Update 1Q 2020 for Shanghai comparable sub-market rents
(4) Shanghai Grade A office rent for prime districts of Nanjing Road West Huaihai Middle Road and Lujiazui as defined by Savills
Note For reference CBRE Researchrsquos 2Q 2020 Grade A Singapore office rent is S$1115 psfmth Sub-market rents are not published 18
Average Passing Rents
(1) Proforma average passing rents as at 30 September 2013 as disclosed in OUE C-REITrsquos Prospectus dated 17 January 2014
Average passing office rent for all
Singapore office properties
improved as of June 2020 due to
consecutive quarters of positive
rental reversions
Lippo Plazarsquos average passing
office rent was stable at RMB964
psmday as of June 2020
19
Singapore
(Office)
Shanghai
(Office)
Mandarin
Gallery
Average retail rent at Mandarin
Gallery remained stable
1040 10581175 1185 1143 1160 1198 1203 1209
1026 1028 992 945 968 969 988
694 727 731 739
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
OUE Bayfront One Raffles Place OUE Downtown Office
S$ psfmth
(1)
906 914
945
989979 981
965 970 964
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Lippo Plaza
RMB psmday
(1)
2360
2460
2360 2360
2250 22302170 2195 2195 2202
2247
2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Mandarin Gallery
S$ psfmth
4947
46
24
2119
18 17 1714
Bank ofAmerica Merrill
Lynch
Deloitte ampTouche LLP
LuxuryVentures
L Brands Allen amp OveryLLP
Aramco AsiaSingapore Pte
Ltd
Spaces Virgin ActiveSingapore Pte
Ltd
OUELimited
Hogan LovellsLee amp Lee
Top 10 Tenants ndash Commercial Segment
As of Jun 2020
20
By Gross Rental Income 272
Top 10 Tenants
(1) Including the hotel master lease arrangements for Mandarin Orchard Singapore and Crowne Plaza Changi Airport where OUE Limited is the master lessee OUE Limitedrsquos contribution
to the portfolio by gross rental income is 235
(1)
143
311
273
166
107
111
294
253
190
152
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income
91
90
Based on committed tenancies and excludes turnover rent
(1) ldquoNLArdquo refers to net lettable area
WALE of 19 years by NLA(1) and 22 years by Gross Rental Income
21
Lease Expiry Profile - Commercial Segment
As at 30 Jun 2020
111 of OUE C-REITrsquos commercial segment gross rental income is due for renewal for the rest of
2020 This has been reduced to 58 post the quarter-end
Completed (Year-to-date)
396282
223
6633
350
288249
76
37
2020 2021 2022 2023 2024 and beyond
69
323
256234
118
66
308
257 247
122
2020 2021 2022 2023 2024 and beyond
41
347
245216
151
43
313
245 241
158
2020 2021 2022 2023 2024 and beyond
22
Lease Expiry Profile by Commercial Property
OUE Bayfront
WALE 23 years (NLA) 23 Years (GRI)
OUE Downtown Office
WALE 12 years (NLA) 13 years (GRI)
One Raffles Place
WALE 21 years (NLA) 21 Years (GRI)
Lippo Plaza
WALE 23 years (NLA) 29 years (GRI)
As at 30 Jun 2020By NLA By Gross Rental Income Completed (Year-to-date)
8682
118109
28
25
(1)
(1) Post the quarter-end 83 of NLA and 86 of gross rental income remains
to be renewed for the balance of 2020
36
273
421
137 133
29
228
333
105
305
2020 2021 2022 2023 2024 and beyond
148
114
(1)
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Committed Office Rents In Line Or Above Market
2Q 2020Average Expired
RentsCommitted Rents(1) Sub-market
Comparable Sub-market Rents
Colliers(2) Savills(3)
Singapore
OUE Bayfront S$1150 S$1320New Downtown
Marina BayS$1198 S$1298
One Raffles Place S$889 S$880 ndash S$1020 Raffles Place S$1029 S$1017
OUE Downtown
OfficeS$732 S$800 ndash S$880
Shenton Way
Tanjong PagarS$1043 S$891 ndash S$926
Shanghai
Lippo Plaza RMB973 RMB550 ndash RMB1090 Puxi RMB883 RMB1040(4)
Singapore office properties continued to achieve rents which were in line or above their respective market rents
Continued to record positive rental reversions across Singapore office properties in 2Q 2020 ranging from 68 to 148
(1) Committed rents for renewals and new leases
(2) Source Colliers Singapore Office Quarterly 2Q 2020 for Singapore comparable sub-market rents Colliers Shanghai Office Property Market Overview 2Q 2020 for Shanghai comparable sub-market rents
(3) Source Savills Singapore Office Briefing 1Q 2020 for Singapore comparable sub-market rents Savills Shanghai Office Market in Minutes Update 1Q 2020 for Shanghai comparable sub-market rents
(4) Shanghai Grade A office rent for prime districts of Nanjing Road West Huaihai Middle Road and Lujiazui as defined by Savills
Note For reference CBRE Researchrsquos 2Q 2020 Grade A Singapore office rent is S$1115 psfmth Sub-market rents are not published 18
Average Passing Rents
(1) Proforma average passing rents as at 30 September 2013 as disclosed in OUE C-REITrsquos Prospectus dated 17 January 2014
Average passing office rent for all
Singapore office properties
improved as of June 2020 due to
consecutive quarters of positive
rental reversions
Lippo Plazarsquos average passing
office rent was stable at RMB964
psmday as of June 2020
19
Singapore
(Office)
Shanghai
(Office)
Mandarin
Gallery
Average retail rent at Mandarin
Gallery remained stable
1040 10581175 1185 1143 1160 1198 1203 1209
1026 1028 992 945 968 969 988
694 727 731 739
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
OUE Bayfront One Raffles Place OUE Downtown Office
S$ psfmth
(1)
906 914
945
989979 981
965 970 964
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Lippo Plaza
RMB psmday
(1)
2360
2460
2360 2360
2250 22302170 2195 2195 2202
2247
2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Mandarin Gallery
S$ psfmth
4947
46
24
2119
18 17 1714
Bank ofAmerica Merrill
Lynch
Deloitte ampTouche LLP
LuxuryVentures
L Brands Allen amp OveryLLP
Aramco AsiaSingapore Pte
Ltd
Spaces Virgin ActiveSingapore Pte
Ltd
OUELimited
Hogan LovellsLee amp Lee
Top 10 Tenants ndash Commercial Segment
As of Jun 2020
20
By Gross Rental Income 272
Top 10 Tenants
(1) Including the hotel master lease arrangements for Mandarin Orchard Singapore and Crowne Plaza Changi Airport where OUE Limited is the master lessee OUE Limitedrsquos contribution
to the portfolio by gross rental income is 235
(1)
143
311
273
166
107
111
294
253
190
152
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income
91
90
Based on committed tenancies and excludes turnover rent
(1) ldquoNLArdquo refers to net lettable area
WALE of 19 years by NLA(1) and 22 years by Gross Rental Income
21
Lease Expiry Profile - Commercial Segment
As at 30 Jun 2020
111 of OUE C-REITrsquos commercial segment gross rental income is due for renewal for the rest of
2020 This has been reduced to 58 post the quarter-end
Completed (Year-to-date)
396282
223
6633
350
288249
76
37
2020 2021 2022 2023 2024 and beyond
69
323
256234
118
66
308
257 247
122
2020 2021 2022 2023 2024 and beyond
41
347
245216
151
43
313
245 241
158
2020 2021 2022 2023 2024 and beyond
22
Lease Expiry Profile by Commercial Property
OUE Bayfront
WALE 23 years (NLA) 23 Years (GRI)
OUE Downtown Office
WALE 12 years (NLA) 13 years (GRI)
One Raffles Place
WALE 21 years (NLA) 21 Years (GRI)
Lippo Plaza
WALE 23 years (NLA) 29 years (GRI)
As at 30 Jun 2020By NLA By Gross Rental Income Completed (Year-to-date)
8682
118109
28
25
(1)
(1) Post the quarter-end 83 of NLA and 86 of gross rental income remains
to be renewed for the balance of 2020
36
273
421
137 133
29
228
333
105
305
2020 2021 2022 2023 2024 and beyond
148
114
(1)
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Average Passing Rents
(1) Proforma average passing rents as at 30 September 2013 as disclosed in OUE C-REITrsquos Prospectus dated 17 January 2014
Average passing office rent for all
Singapore office properties
improved as of June 2020 due to
consecutive quarters of positive
rental reversions
Lippo Plazarsquos average passing
office rent was stable at RMB964
psmday as of June 2020
19
Singapore
(Office)
Shanghai
(Office)
Mandarin
Gallery
Average retail rent at Mandarin
Gallery remained stable
1040 10581175 1185 1143 1160 1198 1203 1209
1026 1028 992 945 968 969 988
694 727 731 739
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
OUE Bayfront One Raffles Place OUE Downtown Office
S$ psfmth
(1)
906 914
945
989979 981
965 970 964
2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Lippo Plaza
RMB psmday
(1)
2360
2460
2360 2360
2250 22302170 2195 2195 2202
2247
2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Mandarin Gallery
S$ psfmth
4947
46
24
2119
18 17 1714
Bank ofAmerica Merrill
Lynch
Deloitte ampTouche LLP
LuxuryVentures
L Brands Allen amp OveryLLP
Aramco AsiaSingapore Pte
Ltd
Spaces Virgin ActiveSingapore Pte
Ltd
OUELimited
Hogan LovellsLee amp Lee
Top 10 Tenants ndash Commercial Segment
As of Jun 2020
20
By Gross Rental Income 272
Top 10 Tenants
(1) Including the hotel master lease arrangements for Mandarin Orchard Singapore and Crowne Plaza Changi Airport where OUE Limited is the master lessee OUE Limitedrsquos contribution
to the portfolio by gross rental income is 235
(1)
143
311
273
166
107
111
294
253
190
152
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income
91
90
Based on committed tenancies and excludes turnover rent
(1) ldquoNLArdquo refers to net lettable area
WALE of 19 years by NLA(1) and 22 years by Gross Rental Income
21
Lease Expiry Profile - Commercial Segment
As at 30 Jun 2020
111 of OUE C-REITrsquos commercial segment gross rental income is due for renewal for the rest of
2020 This has been reduced to 58 post the quarter-end
Completed (Year-to-date)
396282
223
6633
350
288249
76
37
2020 2021 2022 2023 2024 and beyond
69
323
256234
118
66
308
257 247
122
2020 2021 2022 2023 2024 and beyond
41
347
245216
151
43
313
245 241
158
2020 2021 2022 2023 2024 and beyond
22
Lease Expiry Profile by Commercial Property
OUE Bayfront
WALE 23 years (NLA) 23 Years (GRI)
OUE Downtown Office
WALE 12 years (NLA) 13 years (GRI)
One Raffles Place
WALE 21 years (NLA) 21 Years (GRI)
Lippo Plaza
WALE 23 years (NLA) 29 years (GRI)
As at 30 Jun 2020By NLA By Gross Rental Income Completed (Year-to-date)
8682
118109
28
25
(1)
(1) Post the quarter-end 83 of NLA and 86 of gross rental income remains
to be renewed for the balance of 2020
36
273
421
137 133
29
228
333
105
305
2020 2021 2022 2023 2024 and beyond
148
114
(1)
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
4947
46
24
2119
18 17 1714
Bank ofAmerica Merrill
Lynch
Deloitte ampTouche LLP
LuxuryVentures
L Brands Allen amp OveryLLP
Aramco AsiaSingapore Pte
Ltd
Spaces Virgin ActiveSingapore Pte
Ltd
OUELimited
Hogan LovellsLee amp Lee
Top 10 Tenants ndash Commercial Segment
As of Jun 2020
20
By Gross Rental Income 272
Top 10 Tenants
(1) Including the hotel master lease arrangements for Mandarin Orchard Singapore and Crowne Plaza Changi Airport where OUE Limited is the master lessee OUE Limitedrsquos contribution
to the portfolio by gross rental income is 235
(1)
143
311
273
166
107
111
294
253
190
152
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income
91
90
Based on committed tenancies and excludes turnover rent
(1) ldquoNLArdquo refers to net lettable area
WALE of 19 years by NLA(1) and 22 years by Gross Rental Income
21
Lease Expiry Profile - Commercial Segment
As at 30 Jun 2020
111 of OUE C-REITrsquos commercial segment gross rental income is due for renewal for the rest of
2020 This has been reduced to 58 post the quarter-end
Completed (Year-to-date)
396282
223
6633
350
288249
76
37
2020 2021 2022 2023 2024 and beyond
69
323
256234
118
66
308
257 247
122
2020 2021 2022 2023 2024 and beyond
41
347
245216
151
43
313
245 241
158
2020 2021 2022 2023 2024 and beyond
22
Lease Expiry Profile by Commercial Property
OUE Bayfront
WALE 23 years (NLA) 23 Years (GRI)
OUE Downtown Office
WALE 12 years (NLA) 13 years (GRI)
One Raffles Place
WALE 21 years (NLA) 21 Years (GRI)
Lippo Plaza
WALE 23 years (NLA) 29 years (GRI)
As at 30 Jun 2020By NLA By Gross Rental Income Completed (Year-to-date)
8682
118109
28
25
(1)
(1) Post the quarter-end 83 of NLA and 86 of gross rental income remains
to be renewed for the balance of 2020
36
273
421
137 133
29
228
333
105
305
2020 2021 2022 2023 2024 and beyond
148
114
(1)
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
143
311
273
166
107
111
294
253
190
152
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income
91
90
Based on committed tenancies and excludes turnover rent
(1) ldquoNLArdquo refers to net lettable area
WALE of 19 years by NLA(1) and 22 years by Gross Rental Income
21
Lease Expiry Profile - Commercial Segment
As at 30 Jun 2020
111 of OUE C-REITrsquos commercial segment gross rental income is due for renewal for the rest of
2020 This has been reduced to 58 post the quarter-end
Completed (Year-to-date)
396282
223
6633
350
288249
76
37
2020 2021 2022 2023 2024 and beyond
69
323
256234
118
66
308
257 247
122
2020 2021 2022 2023 2024 and beyond
41
347
245216
151
43
313
245 241
158
2020 2021 2022 2023 2024 and beyond
22
Lease Expiry Profile by Commercial Property
OUE Bayfront
WALE 23 years (NLA) 23 Years (GRI)
OUE Downtown Office
WALE 12 years (NLA) 13 years (GRI)
One Raffles Place
WALE 21 years (NLA) 21 Years (GRI)
Lippo Plaza
WALE 23 years (NLA) 29 years (GRI)
As at 30 Jun 2020By NLA By Gross Rental Income Completed (Year-to-date)
8682
118109
28
25
(1)
(1) Post the quarter-end 83 of NLA and 86 of gross rental income remains
to be renewed for the balance of 2020
36
273
421
137 133
29
228
333
105
305
2020 2021 2022 2023 2024 and beyond
148
114
(1)
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
396282
223
6633
350
288249
76
37
2020 2021 2022 2023 2024 and beyond
69
323
256234
118
66
308
257 247
122
2020 2021 2022 2023 2024 and beyond
41
347
245216
151
43
313
245 241
158
2020 2021 2022 2023 2024 and beyond
22
Lease Expiry Profile by Commercial Property
OUE Bayfront
WALE 23 years (NLA) 23 Years (GRI)
OUE Downtown Office
WALE 12 years (NLA) 13 years (GRI)
One Raffles Place
WALE 21 years (NLA) 21 Years (GRI)
Lippo Plaza
WALE 23 years (NLA) 29 years (GRI)
As at 30 Jun 2020By NLA By Gross Rental Income Completed (Year-to-date)
8682
118109
28
25
(1)
(1) Post the quarter-end 83 of NLA and 86 of gross rental income remains
to be renewed for the balance of 2020
36
273
421
137 133
29
228
333
105
305
2020 2021 2022 2023 2024 and beyond
148
114
(1)
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
38
23
18
9
5
5 2
Fashion amp Accessories Food amp Beverage Hair amp BeautyLiving amp Lifestyle Travel Watches amp JewelleryServices
57
14
12
4
7
5 1
152
343
245
129 131
91
291
197182
239
2020 2021 2022 2023 2024 and beyond
By NLA By Gross Rental Income Completed (Year-to-date)
110
103
(1) Excludes pop-up stores
(2) Excludes turnover rent
Mandarin Gallery ndash Stable Performance
23
Differentiated Tenant Mix
WALE 21 years (NLA) 27 Years (GRI(2))
Committed Occupancy(1)
As of Jun 2020
As at 30 Jun 2020
By NLA By GRI
968 991 1000 995 982 983 978944
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Hospitality
Segment
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
25
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
Hospitality segment revenue for 2Q 2020 of S$169 million and S$338 million for 1H 2020 was the minimum rent under the
master lease arrangements of the hotel properties
OUE C-REITrsquos hotel properties have sought alternative demand sources such as healthcare and eldercare workers
inbound travellers serving out Stay-Home Notices and workers affected by border shutdowns
(S$ million) (S$ million)
1H 20202Q 2020
338
304
Revenue Net Property Income
169154
Revenue Net Property Income
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
26
Portfolio Performance ndash Hospitality Segment
2Q 2020 amp 1H 2020
For 2Q 2020 Mandarin Orchard Singaporersquos RevPAR declined 795 YoY to S$40 while RevPAR for Crowne Plaza
Changi Airport declined 562 YoY to S$83 Hospitality segment RevPAR was 717 lower YoY in 2Q 2020 at S$55
The relatively smaller decline in RevPAR for Crowne Plaza Changi Airport was due to additional demand from the air crew
segment
1H 2020 RevPAR
795 562 717
2Q 2020 RevPAR
402
40
83
55
196189 193
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
2Q 2020 2Q 2019
75
112
88
203187
198
Mandarin OrchardSingapore
Crowne Plaza ChangiAirport
Hospitality Portfolio
1H 2020 1H 2019
630 556
(S$) (S$)
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Re-branding of Mandarin Orchard Singapore to
Hilton Singapore Orchard
27
Transformational re-branding with addition of new income-generating spaces
to drive growth in sustainable returns and value
Rebranding will allow the hotel to leverage on
Hiltonrsquos strong brand recognition and global sales amp distribution network
Re-branded hotel set to become Hiltonrsquos flagship in Singapore and
the largest Hilton hotel in Asia-Pacific
Major refurbishments to complete by end-2021 to capitalise on weak operating environment
due to COVID-19
Expected re-launch of hotel in 2022
Income assurance for Unitholders Downside protection from master lease throughout phased renovation and ramping-up period
~10 expected return on investment of approx S$90 mil on a stabilised basis
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Impact of
COVID-19
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Tenant Support Measures
bull Passing on in full property tax rebate from the Singapore Government
bull Eligible tenants have been extended flexible rental payment schemes
SG Office (554 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
SG Hospitality (263 of Revenue)
SG Retail (84 of Revenue)
bull Passing on in full property tax rebate from the Singapore Government
bull Various assistance schemes such as rental rebates flexible rental
payment and rental reductions have been extended to eligible tenants
Shanghai Office amp Retail (99 of Revenue)
bull Rental rebates and flexible payment schemes have been extended to
eligible tenants
Less than 10 tenants have invoked the
COVID-19 (Temporary Measures) Act to defer
rental payments
Total relief commitment to tenants is
S$138 million to date
Includes provision for rental rebates to be
extended to qualifying tenants under the
New Rental Relief Framework for Small
and Medium Enterprises (ldquoSMErdquo)
announced on 5 June 2020 by the
Singapore Government(1)
Excludes an estimated S$199 million of
support from the Singapore Government
comprising property tax rebates and
mandated share of SME relief
29
(1) ldquoMinistry of Law Press Release New Rental Relief Framework for SMEs 3 June 2020
URL httpswwwmlawgovsgnewspress-releasesnew-rental-relief-framework-for-smes
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Priorities for 2020
Tenant retention through
proactive lease management
Focus on cost management
and cash conservation and
maintaining financial flexibility
Preserve sustainable long
term returns for Unitholders
Operations Flexible leasing terms to selected tenants to sustain occupancy and
preserve cash flows
Intensified frequency of cleaning and implemented various safe
management measures to ensure a safe and clean environment for
tenants and visitors
Suspension of non-essential capital and operating expenditure across
OUE C-REITrsquos properties
Capital Management Issued S$100 million of 40 notes due 2025 for refinancing existing
borrowings in June 2020 Balance of borrowings due in latter part of
2020 to be refinanced ahead of maturity Average cost of debt is
expected to remain stable
Balance sheet remains healthy with available credit facilities to tap on
where necessary
Asset values would need to correct by ~20 before regulatory limit
of 50 is reached
30
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Appendices Singapore Office Market
Shanghai Office Market
Singapore Hospitality Market
Hotel Master Lease Details
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Singapore Office Market
32
Core CBD Grade A occupancy declined 05 ppt QoQ to 971 in 2Q 2020 while core CBD Grade A office rents
corrected 30 QoQ to S$1115 psfmth
While the supply of new Grade A office space in the medium-term is limited both occupancy and office rents are
expected to come under pressure in view of subdued demand as occupiers focus on cost containment
Note Excluding strata-titled officeSource CBRE Research
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
(000 sq ft)
Singapore CBD Grade A Rents and Occupancy
955955975
10251060
10951120
11401130
10901040
990950
930 910895 895
910940 970
10101045
10801115
11301145
11551150
1115
950
935
952
957958
966
957
961962
958952
952951
959
958 956
941
925
938941
941
946
948
952
961
965
961
976
971
2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Grade A rents (S$ psfmth) Core CBD Occupancy
140 131
650 635
1258
0
500
1000
1500
2000
2500
2020 2021 2022 and beyond
Shenton Way Robinson Road Fringe CBD
Raffles Place Marina Bay
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Singapore Office
Demand and Supply vs Office Rental
Source URA statistics CBRE Research
2Q 2011 was the last period where CBRE provided Prime Office Rental data Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand Supply and Office Rents
33
-4
-2
0
2
4
6
8
10
12
14
16
18
20
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1Q20
Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS)
(000 sq ft)(S$ psfmth)
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
88 88 88 90 91 93 94 95 94 96 95 93 92 914 914 931 946 951 954 955 954 956 946 915
883
886
890
917
909
922
928
949963 936
900
885
872
876
853
857
862
907
915
925
897
919
902
904
867 869
20
30
40
50
60
70
80
90
100
750
800
850
900
950
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
Puxi Grade A Average Rent (RMB psmday) Puxi CBD Grade A Office Occupancy
910 920 930 949 970 990 1010 1030 1030 1050 1040 1040
1030 1015
1021 1026 1036 1035
1035 1032 1027 1020 1010
968 928
928922
944
926
938
940
950
960 928
902898
876
871
861
861
865
894
897
900
876
884
875
876
854
854
200
300
400
500
600
700
800
900
1000
1100
800
820
840
860
880
900
920
940
960
980
1000
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20
CBD Grade A Rents (RMB psmday) Shanghai CBD Grade A Occupancy
Shanghai Office Market
Source Colliers International
Shanghai CBD Grade A office occupancy
remained stable in 2Q 2020 at 854
Rents declined 43 QoQ to RMB928
psmday due to intense leasing
competition among landlords
Puxi Grade A office occupancy remained
relatively stable at 869 as at 2Q 2020
while rents corrected a further 35 QoQ
to RMB883 psmday
Given the significant office supply
pipeline which only peaks in the medium
term the rental outlook is expected to
remain subdued
Shanghai
Puxi
34
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
-
100
200
300
400
500
600
700
2020 2021 2022 2023 2024
Zhuyuan Old Hongqiao amp Gubei
Xujiahui Nanjing Road West
The Bund Huaihai Middle Road amp Xintiandi
Zhongshan Park Jingan (Other)
(000 sq m)
353
600
192
321276
Shanghai CBD
Demand Supply and Vacancy
Source Colliers International
35
Office Supply Pipeline in Shanghai CBD
Shanghai CBD Grade A office supply expected to
abate after 2022
Grade A Office Net Absorption New Supply and Vacancy Rate
00
20
40
60
80
100
120
140
160
-200
-
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20
Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS)
(000 sq m)
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
7661
83 8998 103 101 97
116132
145156 151 152
164174
185 191
27
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Visitor Arrivals YTD Jun 2020
Sep lsquo11 and SARS Sub-Prime
Singapore Hospitality Market
36
Visitor Arrivals in Singapore
Source Singapore Tourism Board International Visitor Arrival Statistics JLL Industry Sources
Singapore Hotel Supply
-
10000
20000
30000
40000
50000
60000
70000
80000
2014 2015 2016 2017 2018 2019 2020F 2021F 2022F
Total No of Rooms Net Increase in Supply New Supply
(No of Hotel Rooms)(million)
For Jan to Jun 2020 due to restrictions on inbound short-term visitors to stem the spread of COVID-19 Singapore visitor
arrivals have fallen 714 YoY to 27 million
Top source markets saw major declines led by China (-814 YoY) Indonesia (-702 YoY) India (-771 YoY) Malaysia
(-749 YoY) and Australia (-621)
The World Tourism Organisation (UNWTO) has forecasted a 58-78 annual decline in international tourist arrivals
worldwide due to COVID-19
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Upcoming Attractions and Developments
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Mandai Nature Precinct Rejuvenation of Mandai into an
integrated nature and wildlife destination
New developments include the Bird Park Rainforest Park and a Nature Resort
Jurong Lake District (JLD) Set to become the largest commercial
and regional centre outside Singaporersquos CBD
A new tourism development consisting of an attraction retail FampB entertainment hotel and open public spaces is envisioned to support JLDrsquos position as a lsquomust visitrsquo leisure and recreational cluster
Expansion of Marina Bay Sands to include a 15000-seat arena a luxury hotel tower
and additional MICE space
Information amp Image Sources Websites of Changi Airport Group Mandai Project Sentosa Development Corporation Singapore Tourism Board Womenrsquos Tennis Association International Rugby Board F1 International Champions Cup Singapore Las Vegas Sands Resorts World
Sentosa Singapore Art Week Singapore Food Festival Ultra Singapore Urban Redevelopment Authority of Singapore and The Worldrsquos 50 Best Restaurants
Rejuvenation of Orchard Road
37
Greater Flight Connectivity New and increased flights to key markets of China India Japan and USA
Partnerships to drive visitor arrivalsSTB CAG and Royal Caribbean collaborated on a new multimillion-dollar five-year tripartite marketing partnership to promote fly-cruises The collaboration is expected to bring some 623000 international fly-cruise visitors to Singapore and generate over S$430 million in tourism receipts between end-2019 and 2024
Source Singapore Tourism Board Changi Airport Group and Singapore Airlines Media Releases
Tourism Investment
Singapore Hospitality Market
ndash Investment in Tourism
Jurong Lake District
developmental project (~2026)
Strong Leisure and Events Calendar
Greater Southern Waterfront
(~2027)
Rejuvenation and Expansion of Mandai
Nature Precinct (~2020)
Resorts World Sentosarsquos expansion includes new
attractions hotels and lifestyle offerings
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Hotel Master Lease Details
(1) GOR Gross operating revenue
(2) GOP Gross operating profit
(3) The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent
Property Mandarin Orchard Singapore Crowne Plaza Changi Airport
No of Guestrooms 1077 563
Master Lease
Rental
Variable Rent Comprising Sum of
(i) 330 of MOS GOR(1) and
(ii) 275 of MOS GOP(2)
subject to minimum rent of S$450 million(3)
Variable Rent Comprising Sum of
(i) 4 of Hotel FampB Revenues
(ii) 33 of Hotel Rooms and Other Revenues not related to FampB
(iii) 30 Hotel GOP and
(iv) 80 of Gross Rental Income from leased space
subject to minimum rent of S$225 million(3)
Master Lessee OUE Limited OUE Airport Hotel Pte Ltd (OUEAH)
Tenure First term of 15 years to expire in July 2028
Option to renew for an additional 15 years on the same
terms and conditions
First term of Master Lease to expire in May 2028
Option to renew for an additional two consecutive 5-year terms
FFampE Reserve Capital Replacement Contribution
3 of GOR Aligned with hotel management agreement between OUEAH and IHG
Generally at 3 of GOR
38
Thank You
Thank You