Thailand Company Guide

Impact Growth Real Estate Investment

Trust
Version 8 | Bloomberg: IMPACT TB | Reuters: IMPACT.BK Refer to important disclosures at the end of this report

DBS Group Research . Equity 11 Aug 2017

BUY (Upgrade from HOLD) Time to accumulate

Last Traded Price ( 10 Aug 2017): Bt13.60 (SET : 1,571.64)
Price Target 12-mth: Bt15.50 (14% upside)
Analyst
Nantika WIANGPHOEM +66 26577836 nantikaw@th.dbsvickers.com
What’s New
 1Q18 net investment income was solid at Bt317m
(+25% y-o-y, +69% q-o-q), led by higher AOR and ARR
 2Q18 outlook remains bright and long-term outlook is
intact on the back traffic boost from MRT Pink Line
 Upgrade from HOLD to BUY with TP of Bt15.50, based
on DCF valuation
Price Relative
Bt
17.1
Upgrade to BUY, with higher DCF-based TP of Bt15.5.
IMPACT’s share price has been weak of late even as it posted
strong 1Q17 net investment income on higher occupancy rates.
Also, in the longer term, we believe the MRT Pink Line’s
extension to Muang Thong Thani and real estate developments
popping up around its assets will help boost traffic in Muang
Thong Thani and the market value of its assets. Hence, we
upgrade our call from HOLD to BUY given the potential upside
and solid dividend yields. Plus, after IMPACT completes its
acquisitions, there would be potential for the stock to re-rate.
Owns completed and freehold assets. The REIT owns the largest
exhibition and convention assets in the ASEAN region, covering
66% market share by area in Thailand (as at end-Mar 2016).
The REIT has the rights of first refusal to future assets developed
by IMPACT, and with its freehold rights over the assets, the REIT
Relative Index will enjoy the benefits of asset price appreciation in the future.
206

Long-term growth outlook. We expect its long-term growth to

16.1
186
15.1
166
14.1
13.1 146
be driven by (i) revenues from a diversified group of customers,
12.1
11.1
126 (ii) growing MICE (Meeting, Incentive, Convention and
10.1
9.1
106

86
Exhibition) market, supported by higher domestic demand and
Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17
Impact Growth Real Estate Investment Trust (LHS)
the AEC initiative, and (iii) acquisitions of new assets. In
Relative SET (RHS)
addition, the MRT Pink Line (Khae Rai – Min Buri) will pass
Forecasts and Valuation through Mueng Thong Thani, where the REIT’s assets are
FY Mar (Btm) 2015A 2016A 2017A 2018F
located. This would help increase traffic, and in turn, boost
Gross Revenue 1,110 2,114 1,903 2,108
Net Property Inc 868 1,556 1,294 1,589 asset values.
Total Return 628 1,169 992 1,044 Valuation:
Distribution Inc 623 1,134 1,134 994 Following our earnings forecast upward revisions, our TP of
EPU (Bt) 0.43 0.80 0.67 0.70 Bt15.5 is based on DCF valuation with a WACC of 6.5% and a
EPU Gth (%) nm 89 (16) 5
DPU (Bt) 0.42 0.77 0.77 0.67 terminal growth rate of 2%.
DPU Gth (%) nm 82 0 (12)
NAV per shr (Bt) 10.8 10.9 10.8 11.1 Key Risks to Our View:
PE (X) 31.9 16.9 20.2 19.3 The key risk is a drop in occupancy rate at the REIT’s assets as a
Distribution Yield (%) 3.1 5.6 5.6 4.9
P/NAV (x) 1.3 1.3 1.3 1.2 result of a slower economy and political and safety issues, and
Aggregate Leverage (%) 19.9 19.9 19.9 19.9 the development of new assets by its competitors.
ROAE (%) N/A 7.4 6.2 6.4
At A Glance
Issued Capital (m shrs) 1,483
Distn. Inc Chng (%): 0 0 Mkt. Cap (Btm/US$m) 20,162 / 607
Consensus DPU (Bt): 0.68 0.69
Major Shareholders (%)
Other Broker Recs: B: 0 S: 2 H: 2
Impact Exhibition Management Co Ltd (%) 50.00
Source of all data on this page: Company, DBSVTH, Bloomberg Finance Social Security Office (%) 4.06
L.P Ayudhya Allianz Cp Life Assur (%) 2.23
Free Float (%) 49.75
3m Avg. Daily Val (US$m) 0.29
ICB Industry : Property & Construction / Property Fund & REITs

ed: CK / sa:CS, PY
Company Guide
Impact Growth Real Estate Investment
Trust

WHAT’S NEW

Strong 1Q18 net investment income

Solid 1Q18 net investment income: The REITs posted 1Q18
net investment income of Bt317m (+25% y-o-y, +69% q-o-
q). The q-o-q strong improvement in earnings stemmed from
the full recovery from the passing away of King RAMA IV in
3Q17. The solid y-o-y performance can be mainly attributed
to:
i) Average occupancy rate (AOR) rising to 52% from
46%, on the back of the improvement in AOR of
IMPACT Arena (40% vs 33% in 1Q17), IMPACT
Exhibition Hall (1-8) (48% vs 44% in 1Q17) and
IMPACT Challenger (63% vs 55% in 1Q17), thanks to
higher number of concerts and events including an
international bi-annual event.
ii) Average rental rate (ARR) increasing to
Bt65.8/sqm/month (+4.9% y-o-y) on the back of
annual rate revisions.
Declares Bt0.19 DPU for 1Q18. IMPACT has declared a
dividend of Bt0.19 per unit for 1Q18 – equivalent to 5.6%
annualised dividend yield or 90% dividend payout ratio. The
ex-date for 1Q18 DPU is 22 Aug 2017, with a payment date
of 7 Sep 2017.
Strong outlook remains in 2Q18: The REIT expects the high
occupancy rate to stay high in 2Q18 and targets a 1H18
occupancy rate of 55% vs 51% last year. However, we
expect some negative impact in 3Q18 when King Rama II’s
[or IV?] funeral will take place but the y-o-y impact should be
less pronounced.
Maintain full-year forecast and upgrade from HOLD to BUY
with unchanged TP of Bt15.50. We derived our TP of Bt15.50
for IMPACT using DCF valuation with a WACC of 6.5% and a
terminal growth rate of 2%. Given the potential upside,
generous dividend yield and strong growth outlook, we
upgrade our HOLD to BUY rating.

Quarterly / Interim Income Statement (Btm)

FY Mar 1Q2017 4Q2017 1Q2018 % chg yoy % chg qoq

Gross revenue 486 395 562 15.6 42.5

Property expenses (68.7) (51.8) (68.3) (0.6) 32.0
Net Property Income 418 343 494 18.3 44.1
Other Operating expenses (126) (121) (143) 13.5 18.0
Other Non Opg (Exp)/Inc 1.09 2.43 1.33 22.2 (45.0)
Net Interest (Exp)/Inc (41.5) (39.0) (38.6) 6.8 0.9
Exceptional Gain/(Loss) 1.44 2.27 2.27 N/A N/A
Net Income 253 188 317 25.1 68.6
Tax 0.0 0.0 0.0 N/A N/A
Minority Interest 0.0 0.0 0.0 N/A N/A
Net Income after Tax 253 188 317 25.1 68.6
Total Return 252 185 314 24.9 69.5
Non-tax deductible Items 14.2 14.2 14.2 0.0 0.0
Net Inc available for Dist. 0.0 0.0 0.0 nm nm
Ratio (%)
Net Prop Inc Margin 85.9 86.9 87.9
Dist. Payout Ratio 100.7% 120.3% 90.2%

Source of all data: Company, DBSVTH

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 Company Guide
Impact Growth Real Estate Investment Trust

Net Property Income and Margins (%)

CRITICAL DATA POINTS TO WATCH Bt m
1,600
84.6%
1,400
Critical Factors 1,200
79.6%
Higher occupancy rates. The REIT expects overall occupancy rate 1,000
800
to improve to 58-62% over the longer term, driven by the 74.6%
600
growing MICE market, supported by higher domestic demand 400 69.6%
and the AEC initiative. Furthermore, the REIT is able to attract 200

and retain customers because of its strategically located assets 0

2015A 2016A 2017A 2018F
64.6%

with full facilities. IMPACT currently has 66% of the total MICE
Net Property Income Net Property Income Margin %
market share by area in Thailand (at end-Sep 2016) with an
average occupancy rate of 54% in FY16 and 51% in 1H17. This
indicates strong earnings growth ahead. Net Property Income and Margins (%)
89%
506
88%
486
Higher ARR (Average Rental Rate). Management plans to raise 466
88%
87%
rents for new leases and renewals by 1-5%, depending on 446 87%
426
current rent, rental period, and other factors. The REIT’s 406
86%
86%
diversified asset offering gives it flexibility to meet demand for a 386 85%

large range of meetings and exhibitions. Specifically, the REIT 366

346
85%
84%
has a major competitive advantage in being able to offer space 326 84%

4Q2015

1Q2016

2Q2016

3Q2016

4Q2016

1Q2017

2Q2017

3Q2017

4Q2017

1Q2018
for meetings and exhibitions that require a large area. The REIT
is also targeting to grow the international customer segment Net Property Income Net Property Income Margin %
because it can normally charge higher rental rates. Hence, we
expect ARR to increase by 1-3% y-o-y as we expect the Distribution Paid / Net Operating CF
competition to persist. (x)
0.8
0.7
Cost-saving projects. The REIT is trying to keep cost of services 0.6
at less than 15% of total service income (13.7% in FY16). This 0.5
has led to several cost-saving initiatives that were implemented 0.4
since last year, including switching to LED light bulbs, and 0.3

improving the efficiency of the cooling tower. The REIT is also 0.2

considering solar panel installations in parking lots and TES 0.1

(Thermal Energy System) to reduce electricity costs. 0.0

2015A 2016A 2017A 2018F

New assets acquisition in the long term. The REIT plans to

acquire three key assets from BLAND in the next few years with Interest Cover (x)
(x)
a total value of c.Bt5bn: i) Novotel Bangkok IMPACT (380 7.60
rooms, occupancy rate 79%, average room rate Bt1,829/night); 7.40

ii) The Geneva office building (50,000 sqm, occupancy rate 7.20

c.86%, rent Bt280-340/sqm/month); and iii) indoor car park 7.00

6.80
near the Geneva building. The terms and conditions, including
6.60
the price, are still being discussed with BLAND. Furthermore, 6.40
BLAND is constructing an IBIS hotel (587 rooms with an average 6.20
room rate of Bt1,000/night) which may be sold to the REIT 6.00

when completed. The hotel is expected to be completed in the 5.80

2015A 2016A 2017A 2018F
first half of 2017. The financing sources of these acquisitions
are still being considered, between bond issuance and equity
Source: Company, DBSVTH
raising or both sources. This suggests strong earnings growth
from the year of acquisition onwards (not imputed in our
forecast).

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Company Guide
Impact Growth Real Estate Investment
Trust

Aggregate Leverage (%)

Balance Sheet:
Investment properties accounted for 96% of total assets at the
20.0%
end of Jun 2017. The properties will be revalued annually. The
REIT has a strong balance sheet with a low leverage ratio of 18.0%

0.24x at end-Jun 2017, represented by Bt3.9bn long-term 16.0%

loans. However, leverage could surge if the REIT decides to 14.0%

finance FY18 acquisitions with debt. For FY16, the fund has 12.0%
paid out an average of 95% of distributable earnings
10.0%
amounting to Bt0.765 per unit, and management plans to keep 2015A 2016A 2017A 2018F

the payout ratio at above 90%.

Share Price Drivers: ROE (%)

Acquisition of new assets. The REIT plans to acquire three key 7.0%
assets; i) Novotel Bangkok IMPACT, ii) Geneva Building, and iii) 6.0%
new car park. After the acquisitions, the REIT will generate a
5.0%
higher DPU which should help re-rate its share price.
4.0%

3.0%
Key Risks:
Slowing economy, political turmoil and safety issues. These 2.0%

could lead to lower occupancy rates at the REIT’s assets, which 1.0%

would reduce its investment income. 0.0%

2016A 2017A 2018F
Development of competitors’ assets. Bangkok International
Trade & Exhibition Centre and Queen Sirikit National
Convention Center are expanding. Once the expansions are Distribution Yield (%)
(%)
completed, there will be an opportunity for customers to 8.2 +2sd: 8.1%
switch to other assets.
Higher REIT management and property management fees in 6.2
+1sd: 5.6%
later periods. As stipulated in its prospectus, the percentage 4.2

rate charged for REIT and property management fees will Avg: 3%
2.2
increase (c.1% p.a.) until the fifth year, after which it will be
fixed. This could lead to the lower DPU in the first five years. 0.2 -1sd: 0.5%
2013 2014 2015 2016
-1.8
Company Background
IMPACT is one of Thailand’s leading property funds. The fund
has invested in IMPACT Muang Thong Thani, the largest PB Band (x)
exhibition and convention centre in Southeast Asia, covering a 1.8
(x)
total exhibition area of over 158,165 sqm. The REIT’s assets are 1.7

i) IMPACT Arena, ii) IMPACT Forum, iii) IMPACT Exhibition Hall 1.6
+2sd: 1.57x
1.5
1-8, and iv) IMPACT Challenger. IMPACT’s customers can be
1.4 +1sd: 1.4x
divided into three segments; government, domestic private and 1.3

internal sectors. Typically, the rental contract is a short-term 1.2

Avg: 1.23x

contract with a renewal option, with the terms and conditions 1.1
-1sd: 1.07x
1.0
of the contract being subject to negotiation upon renewal. 0.9 -2sd: 0.9x
0.8
Mar-15 Sep-15 Mar-16 Sep-16 Mar-17

Source: Company, DBSVTH

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 Company Guide
Impact Growth Real Estate Investment Trust

Key Assumptions
FY Mar 2015A 2016A 2017A 2018F

Occupancy rate (%) 54.6% 54.4% 53.7% 55.7%

Cost of services (%) 13.6% 13.8% 14.5% 14.5%
Fund management fee 13.2% 10.0% 12.3% 16.9%
Dividend
(%) payout ratio 99% 95% 95% 95%
(%)
Income Statement (Btm)
FY Mar 2015A 2016A 2017A 2018F
Gross revenue 1,110 2,114 1,903 2,108
Property expenses (241) (558) (609) (519)
Net Property Income 868 1,556 1,294 1,589
Other Operating expenses (147) (212) (151) (361)
Other Non Opg (Exp)/Inc 2.87 10.7 8.06 8.30
Net Interest (Exp)/Inc (96.8) (186) (158) (192)
Exceptional Gain/(Loss) 3.92 23.3 2.18 0.0
Net Income 632 1,192 994 1,044
Tax 0.0 0.0 0.0 0.0
Minority Interest 0.0 0.0 0.0 0.0
Preference Dividend 0.0 0.0 0.0 0.0
Net Income After Tax 632 1,192 998 1,044
Total Return 628 1,169 992 1,044
Non-tax deductible Items 14.2 0.0 0.0 0.0
Net Inc available for Dist. 623 1,134 1,134 994
Growth & Ratio
Revenue Gth (%) N/A 90.5 (10.0) 10.8
N Property Inc Gth (%) nm 79.2 (16.9) 22.8
Net Inc Gth (%) nm 88.8 (16.3) 4.5
Dist. Payout Ratio (%) 98.7 95.2 95.2 95.2
Net Prop Inc Margins (%) 78.3 73.6 68.0 75.4
Net Income Margins (%) 56.9 56.4 52.5 49.5
Dist to revenue (%) 56.1 53.6 59.6 47.1
Managers & Trustee’s fees 13.2 10.0 8.0 17.1
to sales(%)
ROAE %) N/A 7.4 6.2 6.4
ROA (%) N/A 5.8 4.9 5.1
ROCE (%) N/A 6.7 5.7 6.1
Int. Cover (x) 7.5 7.2 7.2 6.4
Source: Company, DBSVTH

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Company Guide
Impact Growth Real Estate Investment
Trust

Quarterly / Interim Income Statement (Btm)

FY Mar 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018

Gross revenue 486 535 486 395 562

Property expenses (68.7) (70.5) (57.9) (51.8) (68.3)
Net Property Income 418 465 428 343 494
Other Operating expenses (126) (130) (135) (121) (143)
Other Non Opg (Exp)/Inc 1.09 3.46 1.08 2.43 1.33
Net Interest (Exp)/Inc (41.5) (39.1) (38.9) (39.0) (38.6)
Exceptional Gain/(Loss) 1.44 1.41 1.34 2.27 2.27
Net Income 253 301 257 188 317
Tax 0.0 0.0 0.0 0.0 0.0
Minority Interest 0.0 0.0 0.0 0.0 0.0
Net Income after Tax 253 301 257 188 317
Total Return 252 300 255 185 314
Non-tax deductible Items 14.2 14.2 14.2 14.2 14.2
Net Inc available for Dist. 0.0 0.0 0.0 0.0 0.0
Growth & Ratio
Revenue Gth (%) (11) 10 (9) (19) 43
N Property Inc Gth (%) (12) 11 (8) (20) 44
Net Inc Gth (%) (23) 19 (15) (27) 69
Net Prop Inc Margin (%) 85.9 86.8 88.1 86.9 87.9
Dist. Payout Ratio (%) 0.0 0.0 0.0 0.0 0.0

Balance Sheet (Btm)

FY Mar 2015A 2016A 2017A 2018F

Investment Properties 19,603 19,619 19,619 19,619

Other LT Assets 0.0 0.0 0.0 0.0
Cash & ST Invts 607 755 758 1,005
Inventory 0.0 0.0 0.0 0.0
Debtors 180 129 81.8 90.7
Other Current Assets 13.8 15.1 12.8 0.0
Total Assets 20,404 20,518 20,472 20,715

ST Debt 0.0 0.0 0.0 0.0

Creditor 79.4 109 74.4 0.0
Other Current Liab 335 303 388 430
LT Debt 3,900 3,900 3,900 3,899
Other LT Liabilities 84.3 97.4 89.8 0.0
Unit holders’ funds 16,005 16,108 16,025 16,387
Minority Interests 0.0 0.0 0.0 0.0
Total Funds & Liabilities 20,404 20,518 20,477 20,715

Non-Cash Wkg. Capital (221) (269) (367) (339)

Net Cash/(Debt) (3,293) (3,145) (3,142) (2,893)
Ratio
Current Ratio (x) 1.9 2.2 1.8 2.6
Quick Ratio (x) 1.9 2.1 1.8 2.6
Aggregate Leverage (%) 19.9 19.9 19.9 19.9
Z-Score (X) 3.1 3.3 3.2 3.2
Source: Company, DBSVTH

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Impact Growth Real Estate Investment Trust

Cash Flow Statement (Btm)

FY Mar 2015A 2016A 2017A 2018F

Pre-Tax Income 632 1,192 994 1,044

Dep. & Amort. 0.0 0.0 0.0 0.0
Tax Paid 0.0 0.0 0.0 0.0
Associates &JV Inc/(Loss) 0.0 0.0 0.0 0.0
Chg in Wkg.Cap. (18,355) (110) 78.0 (118)
Other Operating CF (3.9) (23.3) (6.5) 352
Net Operating CF (17,727) 1,059 1,070 1,277
Net Invt in Properties 0.0 0.0 0.0 0.0
Other Invts (net) (402) (98.1) (51.8) 0.0
Invts in Assoc. & JV 0.0 0.0 0.0 0.0
Div from Assoc. & JVs 0.0 0.0 0.0 0.0
Other Investing CF 0.0 0.0 0.0 0.0
Net Investing CF (402) (98.1) (51.8) 0.0
Distribution Paid (341) (341) (341) (1,029)
Chg in Gross Debt 3,900 0.0 0.0 (1.2)
New units issued 15,715 0.0 0.0 0.0
Other Financing CF 0.0 0.0 0.0 0.0
Net Financing CF 19,274 (341) (341) (1,030)
Currency Adjustments 0.0 0.0 0.0 0.0
Chg in Cash 1,144 620 677 247

Operating CFPS (Bt) 0.42 0.79 0.67 0.94

Free CFPS (Bt) (12.0) 0.71 0.72 0.86
Source: Company, DBSVTH

Target Price & Ratings History

Bt
16.92 12- mt h
Dat e of Closing
S.No. T arget Rat ing
Report Price
16.42 Price
4 1: 15 Aug 16 15.20 14.60 FULLY V ALUED
15.92 2: 12 Sep 16 15.20 14.60 FULLY V ALUED
2 6 3: 17 Oct 16 15.70 14.60 FULLY V ALUED
15.42 3
4: 14 Nov 16 15.80 14.60 FULLY V ALUED
14.92 1 5: 25 J an 17 14.90 15.50 HOLD
8
5 6: 15 Feb 17 15.20 15.50 HOLD
14.42 7: 05 May 17 14.60 15.50 HOLD
7
8: 30 May 17 14.50 15.50 HOLD
13.92

13.42

12.92
Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-17

Not e : Share price and Target price are adjusted for corporate actions.
Source: DBSVTH
Analyst: Nantika WIANGPHOEM

THAI-CAC n/a
Corporate Governance CG Rating 2016 n/a

THAI-CAC is Companies participating in Thailand's Private Sector Score Description

Collective Action Coalition Against Corruption programme (Thai Declared Companies that have declared their intention to join CAC
CAC) under Thai Institute of Directors (as of June 27, 2017) are Certified Companies certified by CAC.
categorised into:
Score Range Number of Logo Description
Corporate Governance CG Rating is based on Thai Institute of
Directors (IOD)’s annual assessment of corporate governance 90-100 Excellent
practices of listed companies. The assessment covers 235 criteria 80-89 Very Good
in five categories including board responsibilities (35% weighting), 70-79 Good
disclosure and transparency (20%), role of stakeholders (20%),
equitable treatment of shareholders (10%) and rights of 60-69 Satisfactory
shareholders (15%). The IOD then assigns numbers of logos to 50-59 Pass
each company based on their scoring as follows: <50 No logo given N/A

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 Company Guide
Impact Growth Real Estate Investment
Trust

DBSVTH recommendations are based an Absolute Total Return* Rating system, defined as follows:
STRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame)
BUY (>15% total return over the next 12 months for small caps, >10% for large caps)
HOLD (-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps)
FULLY VALUED (negative total return i.e. > -10% over the next 12 months)
SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame)
Share price appreciation + dividends

Completed Date: 11 Aug 2017 13:27:31 (THA)

Dissemination Date: 11 Aug 2017 16:50:28 (THA)

Sources for all charts and tables are DBSVTH unless otherwise specified.

GENERAL DISCLOSURE/DISCLAIMER
This report is prepared by DBS Vickers Securities (Thailand) Co Ltd (''DBSVTH''). This report is solely intended for the clients of DBS Bank Ltd, its
respective connected and associated corporations and affiliates only and no part of this document may be (i) copied, photocopied or duplicated in
any form or by any means or (ii) redistributed without the prior written consent of DBS Vickers Securities (Thailand) Co Ltd (''DBSVTH'').

The research set out in this report is based on information obtained from sources believed to be reliable, but we (which collectively refers to DBS
Bank Ltd, its respective connected and associated corporations, affiliates and their respective directors, officers, employees and agents (collectively,
the “DBS Group”) have not conducted due diligence on any of the companies, verified any information or sources or taken into account any other
factors which we may consider to be relevant or appropriate in preparing the research. Accordingly, we do not make any representation or
warranty as to the accuracy, completeness or correctness of the research set out in this report. Opinions expressed are subject to change without
notice. This research is prepared for general circulation. Any recommendation contained in this document does not have regard to the specific
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only and is not to be taken in substitution for the exercise of judgement by addressees, who should obtain separate independent legal or financial
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arising from any use of and/or reliance upon this document and/or further communication given in relation to this document. This document is not
to be construed as an offer or a solicitation of an offer to buy or sell any securities. The DBS Group, along with its affiliates and/or persons
associated with any of them may from time to time have interests in the securities mentioned in this document. The DBS Group, may have
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other banking services for these companies.

Any valuations, opinions, estimates, forecasts, ratings or risk assessments herein constitutes a judgment as of the date of this report, and there can
be no assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments.
The information in this document is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed, it may
not contain all material information concerning the company (or companies) referred to in this report and the DBS Group is under no obligation to
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The valuations, opinions, estimates, forecasts, ratings or risk assessments described in this report were based upon a number of estimates and
assumptions and are inherently subject to significant uncertainties and contingencies. It can be expected that one or more of the estimates on
which the valuations, opinions, estimates, forecasts, ratings or risk assessments were based will not materialize or will vary significantly from actual
results. Therefore, the inclusion of the valuations, opinions, estimates, forecasts, ratings or risk assessments described herein IS NOT TO BE RELIED
UPON as a representation and/or warranty by the DBS Group (and/or any persons associated with the aforesaid entities), that:

(a) such valuations, opinions, estimates, forecasts, ratings or risk assessments or their underlying assumptions will be achieved, and
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Please contact the primary analyst for valuation methodologies and assumptions associated with the covered companies or price targets.
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mentioned herein. They are not to be construed as recommendations to trade in the physical commodity or in the futures contract relating to the
commodity referred to in this report.

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 Company Guide
Impact Growth Real Estate Investment Trust

DBSVUSA, a US-registered broker-dealer, does not have its own investment banking or research department, has not participated in any public
offering of securities as a manager or co-manager or in any other investment banking transaction in the past twelve months and does not engage
in market-making.

ANALYST CERTIFICATION
The research analyst(s) primarily responsible for the content of this research report, in part or in whole, certifies that the views about the
companies and their securities expressed in this report accurately reflect his/her personal views. The analyst(s) also certifies that no part of his/her
compensation was, is, or will be, directly or indirectly, related to specific recommendations or views expressed in the report. The research analyst (s)
primarily responsible for the content of this research report, in part or in whole, certifies that he or his associate 1 does not serve as an officer of the
issuer or the new listing applicant (which includes in the case of a real estate investment trust, an officer of the management company of the real
estate investment trust; and in the case of any other entity, an officer or its equivalent counterparty of the entity who is responsible for the
management of the issuer or the new listing applicant) and the research analyst(s) primarily responsible for the content of this research report or
2
his associate does not have financial interests in relation to an issuer or a new listing applicant that the analyst reviews. DBS Group has
procedures in place to eliminate, avoid and manage any potential conflicts of interests that may arise in connection with the production of
research reports. The research analyst(s) responsible for this report operates as part of a separate and independent team to the investment
banking function of the DBS Group and procedures are in place to ensure that confidential information held by either the research or investment
banking function is handled appropriately. There is no direct link of DBS Group's compensation to any specific investment banking function of the
DBS Group.

COMPANY-SPECIFIC / REGULATORY DISCLOSURES

1. DBS Bank Ltd, DBS HK, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), DBSV HK or their subsidiaries and/or other affiliates do not
have a proprietary position in the securities recommended in this report as of 30 June 2017.
2. Neither DBS Bank Ltd, DBS HK nor DBSV HK market makes in equity securities of the issuer(s) or company(ies) mentioned in this Research
Report.

Compensation for investment banking services:

3. DBSVUSA does not have its own investment banking or research department, nor has it participated in any public offering of securities as a
manager or co-manager or in any other investment banking transaction in the past twelve months. Any US persons wishing to obtain further
information, including any clarification on disclosures in this disclaimer, or to effect a transaction in any security discussed in this document
should contact DBSVUSA exclusively.
Disclosure of previous investment recommendation produced:
4. DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates may have published other
investment recommendations in respect of the same securities / instruments recommended in this research report during the preceding 12
months. Please contact the primary analyst listed in the first page of this report to view previous investment recommendations published by
DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates in the preceding 12 months.

1
An associate is defined as (i) the spouse, or any minor child (natural or adopted) or minor step-child, of the analyst; (ii) the trustee of a trust of
which the analyst, his spouse, minor child (natural or adopted) or minor step-child, is a beneficiary or discretionary object; or (iii) another person
accustomed or obliged to act in accordance with the directions or instructions of the analyst.
2
Financial interest is defined as interests that are commonly known financial interest, such as investment in the securities in respect of an issuer or
a new listing applicant, or financial accommodation arrangement between the issuer or the new listing applicant and the firm or analysis. This
term does not include commercial lending conducted at arm's length, or investments in any collective investment scheme other than an issuer or
new listing applicant notwithstanding the fact that the scheme has investments in securities in respect of an issuer or a new listing applicant.

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RESTRICTIONS ON DISTRIBUTION
General This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or
located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be
contrary to law or regulation.

Australia This report is being distributed in Australia by DBS Bank Ltd. (“DBS”) or DBS Vickers Securities (Singapore) Pte Ltd
(“DBSVS”). DBS holds Australian Financial Services Licence no. 475946.

DBSVS is exempted from the requirement to hold an Australian Financial Services Licence under the Corporation Act 2001
(“CA”) in respect of financial services provided to the recipients. DBSVS is regulated by the Monetary Authority of Singapore
under the laws of Singapore, which differ from Australian laws.

Distribution of this report is intended only for “wholesale investors” within the meaning of the CA.

Hong Kong This report has been prepared by an entity(ies) which is not licensed by the Hong Kong Securities and Futures Commission
to carry on the regulated activity of advising on securities pursuant to the Securities and Futures Ordinance (Chapter 571 of
the Laws of Hong Kong). This report is being distributed in Hong Kong and is attributable to DBS Vickers Hong Kong
Limited, a licensed corporation licensed by the Hong Kong Securities and Futures Commission to carry on the regulated
activity of advising on securities pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

For any query regarding the materials herein, please contact Paul Yong (CE. No. ASE988) at equityresearch@dbs.com.

Indonesia This report is being distributed in Indonesia by PT DBS Vickers Sekuritas Indonesia.

Malaysia This report is distributed in Malaysia by AllianceDBS Research Sdn Bhd ("ADBSR"). Recipients of this report, received from
ADBSR are to contact the undersigned at 603-2604 3333 in respect of any matters arising from or in connection with this
report. In addition to the General Disclosure/Disclaimer found at the preceding page, recipients of this report are advised
that ADBSR (the preparer of this report), its holding company Alliance Investment Bank Berhad, their respective connected
and associated corporations, affiliates, their directors, officers, employees, agents and parties related or associated with any
of them may have positions in, and may effect transactions in the securities mentioned herein and may also perform or seek
to perform broking, investment banking/corporate advisory and other services for the subject companies. They may also
have received compensation and/or seek to obtain compensation for broking, investment banking/corporate advisory and
other services from the subject companies.

Wong Ming Tek, Executive Director, ADBSR

Singapore This report is distributed in Singapore by DBS Bank Ltd (Company Regn. No. 196800306E) or DBSVS (Company Regn No.
198600294G), both of which are Exempt Financial Advisers as defined in the Financial Advisers Act and regulated by the
Monetary Authority of Singapore. DBS Bank Ltd and/or DBSVS, may distribute reports produced by its respective foreign
entities, affiliates or other foreign research houses pursuant to an arrangement under Regulation 32C of the Financial
Advisers Regulations. Where the report is distributed in Singapore to a person who is not an Accredited Investor, Expert
Investor or an Institutional Investor, DBS Bank Ltd accepts legal responsibility for the contents of the report to such persons
only to the extent required by law. Singapore recipients should contact DBS Bank Ltd at 6327 2288 for matters arising from,
or in connection with the report.

Thailand This report is being distributed in Thailand by DBS Vickers Securities (Thailand) Co Ltd. Research reports distributed are only
intended for institutional clients only and no other person may act upon it.

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United This report is produced by DBS Vickers Securities (Thailand) Co Ltd which is regulated by the Securities and Exchange
Kingdom Commission, Thailand.

This report is disseminated in the United Kingdom by DBS Vickers Securities (UK) Ltd, ("DBSVUK"). DBSVUK is authorised
and regulated by the Financial Conduct Authority in the United Kingdom.

In respect of the United Kingdom, this report is solely intended for the clients of DBSVUK, its respective connected and
associated corporations and affiliates only and no part of this document may be (i) copied, photocopied or duplicated in any
form or by any means or (ii) redistributed without the prior written consent of DBSVUK. This communication is directed at
persons having professional experience in matters relating to investments. Any investment activity following from this
communication will only be engaged in with such persons. Persons who do not have professional experience in matters
relating to investments should not rely on this communication.

Dubai This research report is being distributed by DBS Bank Ltd., (DIFC Branch) having its office at PO Box 506538, 3rd Floor,
International Building 3, East Wing, Gate Precinct, Dubai International Financial Centre (DIFC), Dubai, United Arab Emirates. DBS Bank
Financial Ltd., (DIFC Branch) is regulated by The Dubai Financial Services Authority. This research report is intended only for
Centre professional clients (as defined in the DFSA rulebook) and no other person may act upon it.

United Arab This report is provided by DBS Bank Ltd (Company Regn. No. 196800306E) which is an Exempt Financial Adviser as defined
Emirates in the Financial Advisers Act and regulated by the Monetary Authority of Singapore. This report is for information purposes
only and should not be relied upon or acted on by the recipient or considered as a solicitation or inducement to buy or sell
any financial product. It does not constitute a personal recommendation or take into account the particular investment
objectives, financial situation, or needs of individual clients. You should contact your relationship manager or investment
adviser if you need advice on the merits of buying, selling or holding a particular investment. You should note that the
information in this report may be out of date and it is not represented or warranted to be accurate, timely or complete. This
report or any portion thereof may not be reprinted, sold or redistributed without our written consent.

United States This report was prepared by DBS Vickers Securities (Thailand) Co Ltd (''DBSVTH''). DBSVUSA did not participate in its
preparation. The research analyst(s) named on this report are not registered as research analysts with FINRA and are not
associated persons of DBSVUSA. The research analyst(s) are not subject to FINRA Rule 2241 restrictions on analyst
compensation, communications with a subject company, public appearances and trading securities held by a research
analyst. This report is being distributed in the United States by DBSVUSA, which accepts responsibility for its contents. This
report may only be distributed to Major U.S. Institutional Investors (as defined in SEC Rule 15a-6) and to such other
institutional investors and qualified persons as DBSVUSA may authorize. Any U.S. person receiving this report who wishes
to effect transactions in any securities referred to herein should contact DBSVUSA directly and not its affiliate.

Other In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is intended only for qualified,
jurisdictions professional, institutional or sophisticated investors as defined in the laws and regulations of such jurisdictions.

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DBS Regional Research Offices

HONG KONG MALAYSIA SINGAPORE

DBS Vickers (Hong Kong) Ltd AllianceDBS Research Sdn Bhd DBS Bank Ltd
Contact: Paul Yong Contact: Wong Ming Tek (128540 U) Contact: Janice Chua
18th Floor Man Yee Building 19th Floor, Menara Multi-Purpose, 12 Marina Boulevard,
68 Des Voeux Road Central Capital Square, Marina Bay Financial Centre Tower 3
Central, Hong Kong 8 Jalan Munshi Abdullah 50100 Singapore 018982
Tel: 65 6878 8888 Kuala Lumpur, Malaysia. Tel: 65 6878 8888
Fax: 65 65353 418 Tel.: 603 2604 3333 Fax: 65 65353 418
e-mail: equityresearch@dbs.com Fax: 603 2604 3921 e-mail: equityresearch@dbs.com
Participant of the Stock Exchange of Hong Kong e-mail: general@alliancedbs.com Company Regn. No. 196800306E

INDONESIA THAILAND
PT DBS Vickers Sekuritas (Indonesia) DBS Vickers Securities (Thailand) Co Ltd
Contact: Maynard Priajaya Arif Contact: Chanpen Sirithanarattanakul
DBS Bank Tower 989 Siam Piwat Tower Building,
Ciputra World 1, 32/F 9th, 14th-15th Floor
Jl. Prof. Dr. Satrio Kav. 3-5 Rama 1 Road, Pathumwan,
Jakarta 12940, Indonesia Bangkok Thailand 10330
Tel: 62 21 3003 4900 Tel. 66 2 657 7831
Fax: 6221 3003 4943 Fax: 66 2 658 1269
e-mail: research@id.dbsvickers.com e-mail: research@th.dbsvickers.com
Company Regn. No 0105539127012
Securities and Exchange Commission, Thailand

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