ANNOUNCEMENT

Company, has, pursuant to a series of transactions, purchased from the open market an

aggregate number of 35,068,000 units in Suntec Real Estate Investment Trust (&ldquo

1Q14 results in line No DPU top-up for the first quarter since 4Q12.

Average rent for Phase 1 and 2 AEI hit SGD12.69 psf/mth, above original target of SGD12.59 psf/mth.

Maintain HOLD with a higher DDM-derived TP of SGD1.70.

Results in line with expectations

Suntec REIT' s 1Q14 DPU of 2.23 SGD cts marked a 13% QoQ contraction but flat YoY. The decline was mainly due to the absence of capital distribution from the sales proceeds of Chijmes (additional 0.120 SGD cts in 1Q13 and 0.175 SGD cts in 4Q13) and income loss following the start of Phase 3 AEI at Suntec City. Stripping out the top-up, 1Q14 DPU would have shrunk 6.6% QoQ but up 5.7% YoY. Suntec received cash proceeds of ~SGD147m from the sale of Chijmes in 1Q12. So far, management has topped up SGD19m in FY13 and did not rule out top-ups for the remainder of FY14. A SGD800m loan facility at a margin of 100+bps has been secured, extending its debt maturity to 4.2 years (4Q13: 2.44 years). This means no refinancing need for Suntec until 2016. Following its SGD350m private placement in March last year and loan reduction, gearing slid to 35.1% in 1Q14 from 38.4% in 4Q13.

Suntec City AEI on track

Following the completion of Phase 1 AEI, Suntec achieved 100% occupancy rate (4Q13: 99.6%), while 95% of Phase 2 NLA has been pre-committed (4Q13: 97%). Phase 2 will open in two stages before 31 Jun 2014, with GV cinema to start at the later phase. The combined average rent committed for both phases reached SGD12.69 psf/mth, above management' s original target of SGD12.59 psf/mth. We adjust our FY14E-16E DPU by 1.9-3.4% on revised rental assumptions and interest cost savings. This translates to a three-year FY13-16E CAGR of 3.4%. Maintain HOLD with a higher DDM-derived TP of SGD1.70 (previously SGD1.63).

Source: Maybank Kim Eng Research        ...last:$1.725...

ISSUE OF 218,069,000 NEW UNITS IN SUNTEC REIT PURSUANT TO THE PLACEMENT
1. Introduction
Further to its announcements dated 18 March 2014, 19 March 2014 and 24 March 2014 in
relation to the placement of 218,069,000 new units (?New Units?) in Suntec REIT at an
issue price of S$1.605 per New Unit (the ?Private Placement?), the Board of Directors of
ARA Trust Management (Suntec) Limited, in its capacity as manager of Suntec REIT (the
?Manager?), wishes to announce that the Manager has issued the New Units. With the
issue of 218,069,000 New Units, the total number of Units in issue is 2,488,608,850 as at
the date of this announcement. The New Units will commence trading on the Main Board
of Singapore Exchange Securities Trading Limited (the ?SGX-ST?) at 9.00 a.m. on 27
March 2014.
2. Status of the Private Placement New Units
The New Units issued pursuant to the Private Placement will, upon issue, rank pari passu
in all respects with the Units in issue immediately prior to the issue of the New Units
(?Existing Units?), other than in respect of the Advanced Distribution (as defined herein).
Suntec REIT?s policy is to distribute its distributable income on a quarterly basis to its
unitholders (?Unitholders?). In connection with the Private Placement, the Manager
however has declared, in respect of the Suntec REIT counter, a distribution of the
distributable income for the period from 1 January 2014 to 26 March 2014 (the ?Advanced
Distribution?).
2
The next distribution thereafter will comprise Suntec REIT?s distributable income for the
period from 27 March 2014 to 31 March 2014. Quarterly distributions will resume
thereafter.
The Advanced Distribution is intended to ensure that the distributable income accrued by
Suntec REIT up to and including 26 March 2014 (which at this point, will be entirely
attributable to the Existing Units) is only distributed in respect of the Existing Units, and is
being proposed as a means to ensure fairness to holders of the Existing Units.