IREIT Global · SGX:8U7U
IREIT Global — Merger or Acquisition (April 2021)
50 slides from IREIT Global's merger presentation, Apr 28, 2021
Slide 1: Decathlon Portfolio: A Sale & Leaseback of 27 Properties In France
Decathlon Portfolio: A Sale & Leaseback of 27 Properties In France 28 April 2021 Joint Sponsors of IREIT Global:
Slide 2: Important Notice
Important Notice This presentation should be read in conjunction with the announcement released by IREIT Global ("IREIT") on 28 April 2021 titled "Proposed Acquisition of a Portfolio of 27 Retail Properties Located in France” (the “Announcement”). Terms not otherwise defined in this presentation sha
Slide 3: Agenda
Agenda Transaction Overview 4 Rationale for the Acquisition 9 Benefits to Unitholders 16 Funding Structure and Financial Impact 27 Indicative Timeline 31 Conclusion 33 Appendix 35 3
Slide 4: Transaction Overview
Transaction Overview Lannion 4
Slide 5: Transaction Overview
Transaction Overview Acquisition of 27 Retail Assets in France ▪ IREIT has entered into a conditional sale agreement to acquire a portfolio of 27 retail properties located across France (the “Properties” and the acquisition of the Properties, the “Acquisition”) on a sale & leaseback arrangement with
Slide 6: Overview of the Properties
Overview of the Properties Properties are Situated in Established Retail Areas in France 95,477 sqm 100% (1) 10 years (1,2) 6 years (2) 7.1% (3) €113.9 m (4) 100% WALB Total GLA Freehold Occupancy WALE NPI Yield Valuation 14 Hauts-de- No. Property Name No. Property Name No. Property Name France Norm
Slide 7: Enlarged Property Portfolio Post Acquisition
Enlarged Property Portfolio Post Acquisition Germany Properties 5 Lettable area (sqm) Valuation (1) (€ m) 200,820 587.9 36 Properties % of enlarged portfolio (3) 70.5% Occupancy WALE (4) 99.6% 3.2 100% Freehold France Properties 27 Lettable area (sqm) Valuation (2) (€ m) 95,477 113.9 5 96.9% Occupan
Slide 8: Track Record Since IPO
Track Record Since IPO 187% Increase in Portfolio Value in 2021 YTD since IPO Number of Portfolio Value Year Key Developments Properties (€ m) ▪ IREIT Global was listed on SGX-ST as the first Singapore-listed real estate investment trust with the investment strategy 2014 4 290.6 of principally inves
Slide 9: Rationale for the Acquisition
Rationale for the Acquisition Bessoncourt 9
Slide 10: Strategic Foray into France and a New Asset Class
1 Strategic Foray into France and a New Asset Class Entry into France, Europe’s Third Largest Economy by GDP ▪ The proposed Acquisition will provide IREIT with exposure to France GDP Growth Rate (%) France, a resilient economy where GDP growth is expected to 10.0% outpace that of Europe, at a foreca
Slide 11: Out-of-Town Sub-Sector Remains Resilient
1 Strategic Foray into France and a New Asset Class Out-of-Town Sub-Sector Remains Resilient Amidst the Challenges within the Retail Sector ▪ The Out-of-Town (“OOT”) retail asset class refers to shops or Yields of OOT segment vs Other Real Estate Asset Classes facilities that are situated away from
Slide 12: Blue-chip Tenant, Decathlon, Operates within a Defensive Industry
2 Blue-chip Tenant, Decathlon, Operates within a Defensive Industry Sporting Goods Industry Emerged as a Defensive Industry Through COVID-19 ▪ The sporting goods industry has emerged as a defensive Global Sportswear Market (€ bn) industry as COVID-19 has reshaped consumer patterns with two key trend
Slide 13: Decathlon is the Largest Sporting Goods Retailer
2 Blue-chip Tenant, Decathlon, Operates within a Defensive Industry Decathlon is the Largest Sporting Goods Retailer within the Sporting Goods Industry French leader in the Sporting Goods industry… …with a strong international footprint ▪ Decathlon was founded in 1976 as part of the Mulliez family ▪
Slide 14: Decathlon's Innovation and Services Drives Growth
2 Blue-chip Tenant, Decathlon, Operates within a Defensive Industry Decathlon’s Innovation and Services Drives Growth Innovation Keeps Decathlon Competitive In-store Customer Experience Differentiates it from Competitors ▪ Since 1986, Decathlon has been developing and marketing its ▪ Decathlon emplo
Slide 15: Decathlon Remains Resilient Amidst Challenges in Retail
2 Blue-chip Tenant, Decathlon, Operates within a Defensive Industry Decathlon Remains Resilient Amidst Challenges in the Retail Industry ▪ Sporting Goods retailers are increasingly under threat from Sales Approach of Decathlon vs. Competitors Point of sales (in France) brands that are developing the
Slide 16: Benefits to Unitholders
Benefits to Unitholders Dinan 16
Slide 17: Benefits of the Acquisition
Benefits of the Acquisition 1 Quality Retail Portfolio that Complements IREIT’s Existing Portfolio 2 Strengthens IREIT’s Portfolio Resilience and Diversification 3 Attractive Value Proposition 4 Increases Market Capitalisation and Liquidity Leveraging on Strategic Investors’ Knowledge, Expertise, Su
Slide 18: Quality Retail Portfolio that Complements IREIT's Existing Portfolio
1 Quality Retail Portfolio that Complements IREIT’s Existing Portfolio Well Located Retail Properties Primarily Leased to Decathlon Group ▪ The Acquisition comprises of 27 properties with a total GLA of 95,477 sqm ▪ All 27 Properties will be leased back to Decathlon with a 10-year initial duration a
Slide 19: Properties are Well-Suited to the Decathlon Concept
1 Quality Retail Portfolio that Complements IREIT’s Existing Portfolio Properties are Well-Suited to the Decathlon Concept ▪ The Properties have an average age of 15 years (by GLA), with 12 out Age of Properties Sales Floor Area (sqm) (by GLA) (by GRI) of the 27 assets being less than 10 years old ▪
Slide 20: Acquisition of the Properties Accelerates IREIT's Growth
2 Strengthens IREIT’s Portfolio Resilience and Diversification Acquisition of the Properties Accelerates IREIT’s Growth ▪ Since 2018, IREIT’s property portfolio value has grown at a CAGR of 19.4%, from €504.9 m to €719.6 m by 2020. The Acquisition builds on IREIT’s growth momentum, increasing portfo
Slide 21: Greater Income Diversification by Property, Geography and Trade Sector
2 Strengthens IREIT’s Portfolio Resilience and Diversification Greater Income Diversification by Property, Geography and Trade Sector ▪ Acquisition reduces IREIT’s reliance on any single property, geographical location and trade sector, benefitting unitholders from increased scale and diversificatio
Slide 22: Improves Quality of Portfolio Tenant Base
2 Strengthens IREIT’s Portfolio Resilience and Diversification Improves Quality of Portfolio Tenant Base ▪ Acquisition improves quality of IREIT’s tenant base with the inclusion of Decathlon, the world’s largest sporting goods retailer that is rated A-2 by S&P Global Ratings ▪ Post-acquisition, GRI
Slide 23: Portfolio WALE will increase from 3.5 years to 4.5 years
2 Strengthens IREIT’s Portfolio Resilience and Diversification Portfolio WALE (by GRI) will increase from 3.5 years to 4.5 years ▪ The Properties have a WALE of 10 Years and a WALB of 6 Years(1) ▪ Post-acquisition, the WALE of IREIT’s portfolio is expected to increase from 3.5 years to 4.5 years, wi
Slide 24: Attractive Value Proposition
3 Attractive Value Proposition Portfolio is Acquired at an Attractive Discount to Valuation ▪ Manager and Decathlon have agreed on the property value of €110.5 m for the Properties, representing a c.3.0% discount to independent valuation ▪ The Acquisition will increase IREIT’s adjusted NPI Yield fro
Slide 25: Increases Market Capitalisation and Liquidity
4 Increases Market Capitalisation and Liquidity IREIT is Expected to Benefit from a Larger Market Capitalisation ▪ The increased market capitalisation increases probability of inclusion in key indices, which offers benefits of a wider and more diversified investor base, higher trading liquidity, inc
Slide 26: Leveraging on Strategic Investors' Knowledge, Expertise and Support in France
Leveraging on Strategic Investors’ Knowledge, Expertise, 5 Support and Resources in France Deep Knowledge, Expertise and Support from Strategic Investors, Tikehau Capital and CDL ▪ The Acquisition marks IREIT’s second portfolio acquisition since December 2019, and demonstrates the deep knowledge, ex
Slide 27: Funding Structure and Financial Impact
Funding Structure and Financial Impact Lannion 27
Slide 28: Method of Financing
Method of Financing Method of Financing Illustrative Uses Total Acquisition Cost: €122.3 m (S$195.7 m)(1) Cost of the Proposed ▪ Total Purchase Consideration: €110.5 m (S$176.8 m)(1); Acquisition ▪ Acquisition Fee: €1.1 m (S$1.8 m)(1); and ▪ Other Transaction Costs: €10.7 m(2) (S$17.1 m)(1) Illustra
Slide 29: Illustrative Pro Forma Financial Impact
Illustrative Pro Forma Financial Impact FOR ILLUSTRATIVE PURPOSES ONLY – NOT A FORWARD LOOKING PROJECTION Adjusted Distribution per Unit (€ Cents) Adjusted Net Asset Value per Unit (€) 2.84 0.47 2.81 0.44 Adjusted FY2020 (1) Pro-forma Adjusted FY2020 (2) Adjusted FY2020 (1) Pro-forma Adjusted FY2020
Slide 30: Illustrative Pro Forma Financial Impact: Aggregate Leverage
Illustrative Pro Forma Financial Impact FOR ILLUSTRATIVE PURPOSES ONLY – NOT A FORWARD LOOKING PROJECTION Aggregate Leverage (%) 36.0% 34.8% (1) (2) Pre-acquisition Post-acquisition Note: Please refer to announcement titled "Proposed Acquisition of a Portfolio of 27 Retail Properties Located in Fran
Slide 31: Indicative Timeline
Indicative Timeline Calais 31
Slide 32: Indicative Timeline
Indicative Timeline Timing Events 27 April 2021 Signing of the conditional sale agreement Early June 2021 Dispatch of Circular and notice of EGM By 29 June 2021 EGM 3Q 2021 Expected Completion of the Acquisition Note: The timeline above is indicative only and subject to change. Please refer to futur
Slide 33: Conclusion
IREIT GLOBAL Conclusion 33
Slide 34: Key Transaction Highlights
Key Transaction Highlights 1 Strategic Foray into France and a New Asset Class 2 Blue-chip Tenant, Decathlon, Operates within a Defensive Industry 3 Quality Retail Portfolio that Complements IREIT’s Existing Portfolio 4 Strengthens IREIT’s Portfolio Resilience and Diversification 5 Attractive Value
Slide 35: Appendix
I IREIT GLOBAL Appendix 35
Slide 36: Portfolio Asset List
Portfolio Asset List Vichy Aurillac Land tenure ▪ Freehold Land tenure ▪ Freehold Completion Year ▪ 2002 Completion Year ▪ 2003 GLA (sqm) ▪ 3,293 GLA (sqm) ▪ 3,240 Occupancy Rate (%) ▪ 100% Occupancy Rate (%) ▪ 100% Valuation (€ m) (1) ▪ 3.6 Valuation (€ m) (1) ▪ 4.1 WALE (2) ▪ 10.0 WALE (2) ▪ 10.0
Slide 37: Portfolio Asset List (Cont'd)
Portfolio Asset List (Cont’d) Mâcon Belfort Bessoncourt Land tenure ▪ Freehold Land tenure ▪ Freehold Completion Year ▪ 1994 Completion Year ▪ 2013 GLA (sqm) ▪ 5,990 GLA (sqm) ▪ 3,365 Occupancy Rate (%) ▪ 100% Occupancy Rate (%) ▪ 100% Valuation (€ m) (1) ▪ 7.7 Valuation (€ m) (1) ▪ 4.1 WALE (2) ▪ 1
Slide 38: Portfolio Asset List (Cont'd)
Portfolio Asset List (Cont’d) Lannion Dinan Land tenure ▪ Freehold Land tenure ▪ Freehold Completion Year ▪ 2012 Completion Year ▪ 2011 GLA (sqm) ▪ 3,569 GLA (sqm) ▪ 2,402 Occupancy Rate (%) ▪ 100% Occupancy Rate (%) ▪ 100% Valuation (€ m) (1) ▪ 3.9 Valuation (€ m) (1) ▪ 2.3 WALE (2) ▪ 10.0 WALE (2)
Slide 39: Portfolio Asset List (Cont'd)
Portfolio Asset List (Cont’d) Concarneau Pontivy Land tenure ▪ Freehold Land tenure ▪ Freehold Completion Year ▪ 2013 Completion Year ▪ 2012 GLA (sqm) ▪ 2,385 GLA (sqm) ▪ 2,369 Occupancy Rate (%) ▪ 100% Occupancy Rate (%) ▪ 100% Valuation (€ m) (1) ▪ 2.3 Valuation (€ m) (1) ▪ 2.2 WALE (2) ▪ 10.0 WAL
Slide 40: Portfolio Asset List (Cont'd)
Portfolio Asset List (Cont’d) Châteauroux Dreux Land tenure ▪ Freehold Land tenure ▪ Freehold Completion Year ▪ 1999 Completion Year ▪ 2004 GLA (sqm) ▪ 4,529 GLA (sqm) ▪ 2,633 Occupancy Rate (%) ▪ 100% Occupancy Rate (%) ▪ 100% Valuation (€ m) (1) ▪ 5.7 Valuation (€ m) (1) ▪ 3.6 WALE (2) ▪ 10.0 WALE
Slide 41: Portfolio Asset List (Cont'd)
Portfolio Asset List (Cont’d) Verdun Sarrebourg Land tenure ▪ Freehold Land tenure ▪ Freehold Completion Year ▪ 1997 Completion Year ▪ 2012 GLA (sqm) ▪ 2,928 GLA (sqm) ▪ 2,848 Occupancy Rate (%) ▪ 100% Occupancy Rate (%) ▪ 100% Valuation (€ m) (1) ▪ 3.0 Valuation (€ m) (1) ▪ 2.7 WALE (2) ▪ 10.0 WALE
Slide 42: Portfolio Asset List (Cont'd)
Portfolio Asset List (Cont’d) Douai Calais Land tenure ▪ Freehold Land tenure ▪ Freehold Completion Year ▪ 1998 Completion Year ▪ 2011 GLA (sqm) ▪ 2,454 GLA (sqm) ▪ 3,623 Occupancy Rate (%) ▪ 100% Occupancy Rate (%) ▪ 100% Valuation (€ m) (1) ▪ 3.1 Valuation (€ m) (1) ▪ 4.5 WALE (2) ▪ 10.0 WALE (2)
Slide 43: Portfolio Asset List (Cont'd)
Portfolio Asset List (Cont’d) Abbeville Cergy Land tenure ▪ Freehold Land tenure ▪ Freehold Completion Year ▪ 2017 Completion Year ▪ 2013 GLA (sqm) ▪ 2,485 GLA (sqm) ▪ 5,909 Occupancy Rate (%) ▪ 100% Occupancy Rate (%) ▪ 100% Valuation (€ m) (1) ▪ 2.6 Valuation (€ m) (1) ▪ 7.8 WALE (2) ▪ 10.0 WALE (
Slide 44: Portfolio Asset List (Cont'd)
Portfolio Asset List (Cont’d) Pont-Audemer Evreux Land tenure ▪ Freehold Land tenure ▪ Freehold Completion Year ▪ 2000 Completion Year ▪ 2000 GLA (sqm) ▪ 1,476 GLA (sqm) ▪ 5,793 Occupancy Rate (%) ▪ 100% Occupancy Rate (%) ▪ 100% Valuation (€ m) (1) ▪ 1.6 Valuation (€ m) (1) ▪ 5.5 WALE (2) ▪ 10.0 WA
Slide 45: Portfolio Asset List (Cont'd)
Portfolio Asset List (Cont’d) Châtellerault Foix Land tenure ▪ Freehold Land tenure ▪ Freehold Completion Year ▪ 2010 Completion Year ▪ 2000 GLA (sqm) ▪ 3,467 GLA (sqm) ▪ 4,579 Occupancy Rate (%) ▪ 100% Occupancy Rate (%) ▪ 100% Valuation (€ m) (1) ▪ 3.5 Valuation (€ m) (1) ▪ 4.0 WALE (2) ▪ 10.0 WAL
Slide 46: Portfolio Asset List (Cont'd)
Portfolio Asset List (Cont’d) Laval Sables d'Olonne Land tenure ▪ Freehold Land tenure ▪ Freehold Completion Year ▪ 2001 Completion Year ▪ 2014 GLA (sqm) ▪ 4,653 GLA (sqm) ▪ 2,543 Occupancy Rate (%) ▪ 100% Occupancy Rate (%) ▪ 100% Valuation (€ m) (1) ▪ 5.3 Valuation (€ m) (1) ▪ 3.3 WALE (2) ▪ 10.0
Slide 47: Portfolio Asset List (Cont'd)
Portfolio Asset List (Cont’d) Cholet Gap Land tenure ▪ Freehold Land tenure ▪ Freehold Completion Year ▪ 2010 Completion Year ▪ 1995 GLA (sqm) ▪ 6,856 GLA (sqm) ▪ 2,795 Occupancy Rate (%) ▪ 100% Occupancy Rate (%) ▪ 100% Valuation (€ m) (1) ▪ 10.5 Valuation (€ m) (1) ▪ 4.0 WALE (2) ▪ 10.0 WALE (2) ▪
Slide 48: Portfolio Asset List (Cont'd)
Portfolio Asset List (Cont’d) Istres Sens Land tenure ▪ Freehold Land tenure ▪ Freehold Completion Year ▪ 2011 Completion Year ▪ 2009 GLA (sqm) ▪ 2,934 GLA (sqm) ▪ 3,050 Occupancy Rate (%) ▪ 100% Occupancy Rate (%) ▪ 100% Valuation (€ m) (1) ▪ 3.6 Valuation (€ m) (1) ▪ 3.1 WALE (2) ▪ 10.0 WALE (2) ▪
Slide 49: Portfolio Asset List (Cont'd)
Portfolio Asset List (Cont’d) Bergerac Land tenure ▪ Freehold Completion Year ▪ 2012 GLA (sqm) ▪ 3,309 Occupancy Rate (%) ▪ 100% Valuation (€ m) (1) ▪ 3.1 WALE (2) ▪ 10.0 Net Initial Yield (%) (3) ▪ 6.79% Catchment Area (Number ▪ 48,522 of Inhabitants) ▪ “Stand alone” Direct Environment location ▪ S
Slide 50: Thank You
Thank You For enquiries, please contact: Mr Kevin Tan Head of Investor Relations and Capital Markets Tel: (65) 6718 0593 Email: kevin.tan@ireitglobal.com Châteauroux 50