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Understanding Real Estate Investment Trusts (REITs) & REIT Valuation Modelling

Workshop Objective: This 1 day workshop explores the global REIT market to understand the various REIT models, markets and statistics. The course examines the process of converting to a REIT, taxation issues, the question of how REITs are priced, REIT investment strategies and risk management. An important part of the workshop is to undertake hands on valuation modelling of REITs. Learn how to project a REITs income, NOI from a portfolio of properties, development and redevelopment, acquisitions and dispositions. The modelling will be extended to overlay a debt schedule and calculate FFO, AFFO and dividends issued. Throughout the workshop you will have access to a group of REIT specialists fund managers, legal and tax experts and financiers who will conduct a very practical and applied workshop on understanding REITs and REIT valuation modelling.

Workshop Structure: Overview of the size of the global REIT market, their structural characteristics and why some markets are more successful than others Regional comparison of REITs performance, regulatory frameworks and tax considerations How to analyse a REIT investment Capital management of a REIT and recent innovations How to assess risks associated with REIT investments Review of valuation models to price REITs Practical hands-on modelling session applying REIT valuation models

Asia Pacific Real Estate Association 13 Amoy Street #02-01 Far East Square Singapore 049955 Tel +65 6438 1110 Fax +65 6438 5550 www.aprea.asia

Workshop Outline: Session Day 1 1. Overview of REITs Time 9.00am 9.30am Content REIT history Types of REITs REIT assets REIT structures Sponsor motivations Asset Managers/Fund Managers/Portfolio Managers/Property Managers/Property Developers Rating Agencies Financiers Global REIT market & statistics - number, market capitalisation, performance Asia-Pacific REIT market & statistics number, market capitalisation, performance External analysis of operating environment macro-economic analysis Sectorial analysis Global & Regional REIT market Australia, Japan, Singapore, Hong Kong, Malaysia o Regional Regulatory Framework comparisons o Corporate Governance o Shariah Compliant REITs o Regulatory Issues and Updates Break Australia, Japan, Singapore, Hong Kong, Malaysia o Regional comparisons o Considerations to comply with the tax code Regulatory & Tax considerations Lunch How to invest in a REIT Presenter

2. Global REIT Market & Statistics

9.30am 10.00am

Q&A session 3. Individual REIT Market Comparisons Regulation

10.00am 10.15am 10.15am 11.15am

4. Individual REIT Market Comparisons Taxation Q&A Session

11.15am 11.30am 11.30am 12.30pm

5. REIT Investment

12.30pm 1.00pm 1.00pm 2.00pm 2.00pm

Asia Pacific Real Estate Association 13 Amoy Street #02-01 Far East Square Singapore 049955 Tel +65 6438 1110 Fax +65 6438 5550 www.aprea.asia

Strategies

2.45pm

Q&A Session

6. Capital Management of a REIT

2.45pm 3.15pm 3.15pm 3.30pm 3.30pm 4.15pm

Who are the typical investors in REITs What should investors look for when investing in a REIT what makes a successful REIT How do investors gauge a REITs ability to pay dividends How to capture value through a REIT Capital structure Methods & options for raising capital Financing options Advantages & drawbacks of balance sheet management strategies Impact of leverage on market value Distribution models of income Returns - Yields versus leveraged capital gains How to develop a REIT investment portfolio Trading strategies Case study on examples of REITs that have been successful REIT Investment Strategies Break What is capital management? o 1st Pillar borrowings o 2nd Pillar - equity Gearing profile of a REIT Why gearing is important Structuring debt Types of debt structures available to the Manager Types of equity issuance Recent innovations What are the risks? o Acquisition risk o Refinancing risk o Downside dividend yields o Valuations pressure o Dilutive capital raising o Economic, political and regulatory o Borrowing risk o Investment risk

7. Risks associated with REIT Investments

4.15pm 5.00pm

Asia Pacific Real Estate Association 13 Amoy Street #02-01 Far East Square Singapore 049955 Tel +65 6438 1110 Fax +65 6438 5550 www.aprea.asia

Q&A Day 2 1. Pricing & Investing in REITs

5.00pm 5.30pm 9.00am 10.00am

How to manage risks Capital Management & Risk

2. REIT Valuation Modelling

10.00am 1.00pm

Valuation techniques DCF, DDM, NAV, Replacement Cost Analytical ratios How to price REITs Liquidity issues Class Exercise on REIT Valuation modelling

Asia Pacific Real Estate Association 13 Amoy Street #02-01 Far East Square Singapore 049955 Tel +65 6438 1110 Fax +65 6438 5550 www.aprea.asia