February 2011

Sabana Shari’ah Compliant Industrial REITKevin Xayaraj Tay, CEO, Sabana Real Estate Investment Management Pte Ltd

Introduction to Sabana Shari’ah Compliant Industrial REIT (“Sabana REIT”)

3

What is Sabana REIT?

World’s largest listed Shari’ah Compliant REIT

First listed REIT globally to adopt stricter GCC-standard Shari’ah compliance

First Shari’ah Certificate for a Singapore listing

Largest IPO free float for industrial Singapore REITs

Access to untapped equity markets (e.g. Bahrain and Jordan)

IPO Deal of the Year

Real Estate Deal of the Year

4

Sabana Shari’ah Compliant REIT in the press

“Sabana REIT has advantage over conventional REITs, with access to investors from both Shari’ah and conventional markets. The growth in the Islamic finance industryglobally...will translate to an increase in demand for Shari’ah compliant financial products.”Bloomberg, 22 Nov 10

“It is rare for the global mutual fund operator (Fidelity) to come in as a cornerstone in IPOs, both in Asia and globally...The strong interest among Islamic investors was not surprising…”

FinanceAsia, 22 Nov 10

“A template for Islamic REITs”The Asset, Jan 11

5

Why a Shari’ah compliant REIT?

Unprecedented access to unique investor base

New source of capital Key differentiator Industrial assets are suitable

Conventional53%

Middle East 47%

Asia65%

Europe 10%

Middle East 25%

IPO demand by geography IPO cornerstone investors

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Sabana REIT - overview

Chemical Warehouse & Logistics

Listed 26 November 2010

15 Singapore industrial properties

33 & 35 PenjuruLane

General Industrial

123 Genting Lane

Source: Prospectus

Asset: c.S$885m / US$680m

Sponsored: Freight Links, a Singapore-listed logistics company

Overview

High-tech Industrial

151 LorongChuan

Warehouse & Logistics

34 Penjuru Lane

7

Sabana REIT – portfolio highlights Gross revenue by asset typeNLA by tenants’ or sub-tenants’ sector

Source: Prospectus

58.4%

16.4%

19.5%

5.7%

High-tech Industrial

Chemical Warehouse & Logistics

Warehouse & Logistics

General Indusrial

11.9%

17.5%

5.1%16.8%

8.2%

3.1%

6.1%

20.4%

4.5%3.4%

3.0%

Chemical ElectronicsEngineering Food & beverageHealthcare Information technologyLogistics OthersResearch & Development StorageTelecommunication & data warehousing

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Sabana REIT’s Shari’ah complianceActivity Shari’ah compliant Sabana REIT

Income

Distributions from Shari’ahcompliant activities only

≤5% income from non-Shari’ahactivities, which is cleansed

< 0.3% from non-compliant income

Required cleansing is immaterial

Debt If Shari’ah product not available,

debt up to 1/3 of NAV or market capitalisation

Commodity Murabaha

Insurance Shari’ah products preferred

Insurance replicates Takaful

Deposits Shari’ah compliant product

Corporate governance Shari’ah advisory panel Shari’ah Committee

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GCC-aligned Shari’ah compliance

Regulation Malaysia REIT Sabana REIT

Non-Shari’ah income contribution ≤ 20% ≤ 5%

Proportion of non-Shari’ahdebt 0% Up to 1/3 of NAV or market

capitalisation

Sabana REIT has deliberately adopted a Shari’ah compliance policy that is aligned with GCC standards

The case for Singapore REITs and the impact of the world’s largest Shari’ahcompliant REIT

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Income stability

Stable source of income from long-term rentals

Ideal for investors diversifying away from Sukuks without foregoing stability

Income stabilitySabana forecast DPU yield at IPO

8.22% 8.25%

FY2011 FY2012

Source: Prospectus

c.100.0% occupancy

WALE: 3.8 years

Annual step-up: up to 2.0%

Gearing: 26.5%

Debt headroom: US$88m to US$565m

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14.1%7.7%

10.7%7.0%

13.4%19.0%10.6%

8.6%

5.4%

5.9%5.1%

6.7%

7.0%6.0%

27.6%

14.4%15.8%12.9%

18.8%21.1%

16.6%

Sabana CapitaMall Suntec CapitaCommercialAscendas MapletreeLogistics

Average top 5

Target price differential FY11E DPU yield

Compelling total return proposition

Singapore REITs offer investors a healthy balance of income stability through stable distributions plus capital growth

FY2011E total return for Singapore REITs by assets

Source: Bloomberg (11 Feb 2011)

Singapore’s top 5 REITs by assets

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Impact on industryPrior to Sabana, none of the existing listed Shari'ah compliant REITs had : asset size >US$400mGCC Shari’ah compliance standards a sizeable investor base outside Malaysia

Assets (US$m) 680 365 295 395

Listing

Asset type Industrial Healthcare Plantation Mixed

Shari’ah compliance

Mkt cap (US$m) 472 214 266 289

Float (%) 86.7 37.9 32.5 71.8

Sources: Company reports, Bloomberg (11 Feb 2011), Factset

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Impact on industry (cont’d)

Increased industry market capitalisation by 62% and total assets by 64%

Total assets (US$m)Aggregate market capitalisation (US$m)

1,725

998910852

1Q10 2Q10 3Q10 4Q10

+64%

Sources: Company reports, Bloomberg (11 Feb 2011)Note: Assuming Al-Aqar had same amount of assets in 3Q and 4Q

0

200

400

600

800

1,000

1,200

1,400

Aug 05 Aug 06 Sep 07 Oct 08 Nov 09 Dec 10

+62%

Axis Al-Aqar Al-Hadharah Sabana

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Impact on industry (cont’d)

Establishes the listed REIT as a viable Shari’ah vehicle

Education of conventional investors on the benefits of Shari’ah compliance

Tipping point: New Shari’ah compliant REITs expected in Asia

Why is this important?

The End

Appendix: Additional details

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S$636m Sabana Shari’ah Compliant REIT IPOTransaction summary

Issuer: Sabana Shari’ah Compliant Industrial REIT (“Sabana REIT”)

Offering type: IPO on Mainboard SGX

Pricing date: 18 Nov 10

Listing date: 26 Nov 10

Base offering size:

S$636m / US$491m, or

605.8m units (100% primary)

Mkt cap: S$664m / US$513m

Free float: 95.7% of share capital

Price range: S$1.00 – 1.10 per unit

Final price: S$1.05

FY11E DPU yield:

8.22%

Premium to NAV: 5.8%

Gearing: 26.50%Offering structure:

International Offering (87.5%)

Public Offer in Singapore, including Reserved tranche (12.5%)

Cornerstone investors:

(% of int’l offering)

Fidelity (5.2%), Al Salam Bank-Bahrain (5.4%), Metro Holdings Singapore (4.5%), Capital Investment & Brokerage Jordan (3.4%)

Selling restrictions:

Reg S only

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S$636m Sabana Shari’ah Compliant REIT IPO

Largest and first Shari’ah certified industrial REIT globally

Second largest REIT IPO in Asia since 2006

Unique Shari’ah Compliant nature of this landmark transaction attracted a whole new set of investors

Attracted quality institutional accounts internationally with a healthy mix between Shari’ah and conventional investors

Cornerstone investors include Fidelity, Capital Bank, Al Salam Bank-Bahrain, Metro Holdings

Orderbook multiple times oversubscribed, with participation from over 100 investors

Attractive yield pick-up of 6.0% over the Singapore risk-free rate

Low gearing of 26.5% vs. an average of 34.4% for Industrial S-REITs

Transaction highlights

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Sabana REIT – benchmarking against peers

12-mth forward DPU yield (%) (5) 8.2% 6.7% 7.3% 8.8% 8.4% 9.1% 6.9%

No. of properties at IPO 15 8 70 12 6 27 15

No. of properties currently 15 93 70 26 6 42 82

Assets at IPO (S$m)(4) 885 617 2,164 319 738 527 439

Assets currently (S$m)(4) 885 4,854 2,164 658 749 915 3,000

Free float at IPO (S$m) 606 240 553 297 417 140 211

GFA at IPO (‘000 sqft) 3,286 2,639(2) 16,368 2,474 3,857 4,593 2,993(2)(3)

GFA (‘000 sqft) 3,286 25,801 16,368 4,359 3,860 7,013 17,849(2)(3)

Occupancy rate (%) 100.0% 95.7% 90.9% 96.0% 100.0% 99.8% 98.1%

(1)

Sources: Bloomberg, Company annual reportsNotes:1. Assuming offering price S$1.052. GFA data not available. Represents net lettable area3. Excludes Pulau Sebarok as this property comprises land only4. Including property values provided by Independent property valuers5. As at 26 Nov 2010, listing date

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Sabana REIT – benchmarking against peers

Weighted average lease term to expiry 3.8 years 4.8 years 2.6 years 4.4 years 6.1 years 4.7 years 5.0 years

Weighted average unexpired lease term 41 years 53 years(2) 49 years 47 years(2) 37 years 41 years 60 years

Current cost of debt 4.5% 3.9% 2.4% 4.2% 4.1% 5.9% 2.4%Current gearing 26.5% 33.5% 38.4% 28.8% 24.7% 42.3% 38.7%Mgmt fee % distributable income 8.2% 10.0% 15.9% 10.6% 9.3% 10.6% 18.5%P / NAV 5.8% 31.3% 25.6% (3.9%) 12.3% 3.3% 3.5%Investment focus Asia Singapore Singapore Asia Asia Asia Asia

Manager’s mgmt base fee0.5% p.a. of deposited property

0.5% p.a. of deposited property

0.5% p.a. of deposited property

0.5% p.a. of deposited property

0.5% p.a. of deposited property

0.5% p.a. of deposited property

0.5% p.a. of deposited property

Manager’s mgmt performance fee0.5% p.a. of NPI (DPU

growth>10%)

0.1% p.a. of deposited

property (DPU growth>2.5%)

3.6% p.a. of NPI

0.1% p.a. of deposited

property (DPU growth>2.5%)

1.5% p.a. of NPI

Capped at 0.8% p.a. of deposited property

3.6% p.a. of NPI

Asset type breakdown by valuation(5)

Sources: Bloomberg, Company annual reportsNotes:1. Assuming offering price S$1.052. A-REIT is weighted by NLA; AA-REIT is weighted by land area3. As at 26 Nov 2010, listing date

52%

4%

44%3%

24%

17%

56% 60%26%

14%

Warehousing & LogisticsOthersChemical Warehousing & Logistics

High-tech Industrial General Industrial

17%

19%

6%

58%

1%

78%

21%

100%

(1)

92%

8%

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Shari’ah Committee scholarsDr Mohamed A. ElgariDr. Elgari is Professor of Islamic Economic at King Abdulaziz University, Jeddah, Saudi Arabia and Former Director of the Center for Research in Islamic Economics, in the same university. He is an Expert at the Islamic Jurisprudence Academy of the OIC and the Islamic Jurisprudence Academy of the Islamic World League and a member of the Shari'ah Council of AAOFI

He is member of editorial board of several academic publications in the field of Islamic Finance and Jurisprudence among them, Journal of the Jurisprudence Academy (of the IWL), Journal of Islamic Economic Studies (IDB), Journal of Islamic Economic (IAIE, London), and the advisory board of Harvard Series in Islamic Law, Harvard Law School

Dr. Elgari is member of numerous Shari'ah Boards of Islamic Banks and Takaful Companies world wide. He authored several books in Islamic finance and published tens of articles on the subject both in Arabic and English. Dr. Elgari is also a frequent speaker in conferences worldwide. Dr. Elgari is the recipient of the Islamic Development Bank prize in Islamic Banking and Finance for the year 1424H (2004)

Dr. Elgari holds a PhD from the University of California and was born in Makkah, Saudi Arabia in the year 1950

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Shari’ah Committee scholars – cont’dDr Obiyathulla Ismath BachaProf. Obiyathulla is professor of Finance and Director of the Management Centre. Prior to joining IIUM, Prof. Obiyathulla was at Malayan Banking Bhd from May 1984 – August 1985. He was an Assistant Professor of Finance at Boston University where he received the Allen E. Beckwith Teaching Award. He teaches finance courses at both MBA and undergraduate levels. The courses taught by him for the MBA Program are Financial Planning & Strategy, International Finance, and Managing Risks with Futures & Options

He is vice-president of the Malaysian Economic Association (MEA) and Committee Member of the Malaysian Finance Association. Dr. Obiyathulla has also been a trainer at several institutions such as the Securities Commission and Central Bank of Malaysia

He has published in numerous local and international journals and presented papers at several international finance conferences. His paper on the Nikkei Stock Index Futures Contract won the 1993 Chicago Mercantile Exchange; Competitive Research Award

He received his DBA (Finance), MBA (High Honors) and MA (Economics) from Boston University and B. Soc. Sc from the University Science Malaysia

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Shari’ah Committee scholars – cont’dDr. Ashraf Bin Md HashimDr. Ashraf Bin Md Hashim is currently an Associate Professor at the Department of Islamic Law, Ahmad Ibrahim Kuliyyah of Laws, International Islamic University Malaysia (“IIUM”). Dr. Ashraf has to his credit, a book and a number of articles relating to Islamic law and Islamic finance published in local and international journals and was a Visiting Research Fellow at the Oxford Centre for Islamic Studies, United Kingdom from November 2006 to August 2007.

Dr. Ashraf has vast experience in providing Shari’ah views on retail and investment banking products, Sukukstructuring and unit trusts and is also actively involved in advising Takaful and Retakaful companies. He is currently a Shari’ah committee member for Al-Rajhi Banking and Investment Corporation (Malaysia) and Securus Data Centre Fund, and was previously a Shari’ah committee member for Takaful Malaysia and Asean Retakaful International Limited, to name a few.

Dr. Ashraf holds a Postgraduate Diploma in Shari’ah Law and Practice from IIUM, a Doctor of Philosophy in Islamic Law from Birmingham University (U.K.), a Master of Arts, Fiqh and Usul al-Fiqh (Jordan) and a Bachelor of Arts, Shari’ah (Madinah) and is proficient in English, Arabic and Malay.

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