FORTUNE REIT

ENTERS

SINGAPORE

----------------

Acquisition of Stars of Kovan Property

(7 August 2022)

First foray into overseas market

16 Neighborhood retail properties in HK

2

New Territories

10

3

Tai Wai

1

8

15

16

6

11

Tsuen Wan West

12

Kowloon

Diamond Hill

Mei Foo

Kowloon Tong

7

4

14

5 Hung Hom

13

9

Lantau

Island

Hong Kong

New addition in SG as

a strategic fit with existing portfolio

17

Stars of Kovan Property │ 2

Property overview

Stars of Kovan Property

36 Shop Units and Public Carpark

S$88 M

7.4%

Consideration

Discount to valuation

Stars of Kovan Property

Address

988 Upper Serangoon Road,

--------------------------------------------

Singapore

Completion

2019

Land Tenure

99 year from Feb 2015

GRA

22,638 sf

Occupancy

100%

Carparking space

80 nos.

Stars of Kovan Property │ 3

Key rationales and benefits to Unitholders

Portfolio

Singapore is a

Maintained Fortune

diversification

suitable

REIT's risk profile

to drive

destination for

for retaining

sustainable

our 1st overseas

exposure in

growth

investment

neighborhood

retail

High occupancy with

ARA's strong

stable income

presence in

contribution from non-

Singapore

discretionary trades

renders local

support

Stars of Kovan Property │ 4

Financial impact

Consideration

S$88M (~HK$501M)

Appraised Value

S$95M (~HK$541M)

Net Property Yield

3.4%

Financing

100% debt

Proforma Gearing

23.4%

Expected Completion

DPU

Oct 2022

Accretive

Debt Maturity Profile - Post Acquisition

(HK$M)

3,500

New 5Y ESG

Loan to finance

2,500

the Acquisition

1,500

528

1,200

0

230

2022

2023

2024

2025

2026

2027

Un-

committed

-

15.9%

-

26.4%

37.0%

18.3%

2.4%

Debt expiry profile is based on the amount of loan drawn. S$93M is expected to draw from the new ESG loan upon completion of the acquisition.

SGD loan as natural currency hedge Financial position remains prudent

Note: Based on the exchange rate 1 SGD = 5.69 HKD quoted on Bloomberg on 1 Aug 2022

Stars of Kovan Property │ 5

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Disclaimer

Fortune Real Estate Investment Trust published this content on 07 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2022 10:33:08 UTC.