Ann: Market Update, page-2

At first glance, this looks to be a good update,... however, delving deeper into it,...we will see that :-

1) AWH is the largest tenant in CIP’s portfolio, occupying 11% of its GLA2.
Comment : AWH 'controls' 11% of CIP's gross rental income then. If AWH pulls-out due to whatever reasons, this 11% will need to be replaced, which is not going to be easy.

2) The renewal will extend AWH’s tenure by an average of 5.6 years across both properties, significantly reducing CIP’s FY20 lease expiry profile.
Comment : in an earlier presentation, it is mentioned that the WALE for this property is ONLY of 2.7 years on settlement.

Furthermore, why is there no mention of rental increase for this renewal ?

3) The new term will come into effect upon completion of the purchase of Lot 14 Sudlow Road, Bibra Lake.
Comment : There is still NO binding agreement yet here,... hence, this deal can still be called-off before the due date of September 29th....