1

Wharf Real Estate Investment Company Limited

2017 Final Results

5 March 2018

Retail Drives IP Cashflow

Overview

2

6 Unique Properties at Prime Locations

Diamond Hill

Causeway Bay

Tsimshatsui

Central

Harbour

City

Central Portfolio

Crawford

House

Times

Square

97%

2017 Group Business Assets

Plaza

Hollywood

Wheelock

House

The

Murray

Overview

3

*Incl. 3 Marco Polo Hotels & The Murray’s Valuation; but All Hotels are Booked at Cost in Wharf REIC’s Balance Sheet

^999-yr Leasehold (Excl. Ocean Terminal & Pacific Club at Harbour City, Plaza Hollywood and The Murray)

Highlights

End-17 Valuation*

$265B +4%

2017 Sales

+9.1% (2H17:+15%)

(10-yr CAGR: +10.2%)

2017 Avg. Sales psf/mth

~$2,300 +5.4%

2017 Revenue

$14.6B +4%

2017 Market Share

9.2% (2H17: 9.8%)

2017 Retail Sales

$41B +7%

Rare 999-year Leases Offer a Differentiation^

HKIP & Hotel Harbour City Retail 3 Malls

Overview

4

The Above Refers to the 6 Key Properties in Hong Kong

*Incl. 3 Marco Polo Hotels & The Murray’s Valuation; but All Hotels are Booked at Cost in Wharf REIC’s Balance Sheet

Central Portfolio: Incl. Crawford House, Wheelock House & The Murray

Premium Quality Portfolio

Revenue

2017 Revenue

$14.6B

Harbour City

73.6%

Times Square

19.3%

Plaza Hollywood

3.9% Central Portfolio

3.2%

GFA

HKIP & Hotel

GFA

11.7M s.f

Harbour City

72.0%

Times Square

16.9%

Plaza Hollywood

4.8% Central Portfolio

6.3%

Valuation*

Valuation

$265B

Harbour City

67.2%

Times Square

21.5%

Plaza Hollywood

3.8% Central Portfolio

7.5%

Overview

• Highest HKIP Revenue & Valuation among HK Listed Landlords & REITs

• Prime Assets with 999-year Leaseholds Valued $200B+

• Strong Cashflow, Comfortable Gearing, Premium Credit Rating, Ample Capacity for New

Investment

• Competent & Persistent Management Team & Track Record

• Portfolio Value Further Enhanced with OTE and The Murray (Completed in 2017)

5

Investment Highlights

Overview

• A Premier HKIP Play with Unrivalled Productivity

• Coveted Partner of Premium International Retailers

• A Host of Brands at Harbour City among the World’s Best-performing Stores

• Quality Retail Portfolio with Critical Mass & Unique Showcase Effects

• Constant Tenant Mix Refinement & Value Creation Initiatives Drive Performance

• Proven Retail Expertise Facilitates Resilience Through Market Downturns

6

Worldwide Retail Leader

Overview

• Hold & Invest in Premium Quality Commercial Properties in HK, Providing Strong

Cashflow & Steady Income Stream

• Create, Protect & Enhance Value Through Shopper Experience Improvements Incl.

Tenant Configuration, Events, AEIs, etc.

• Maintaining a High Level of Financial Discipline & Flexibility (Gearing <30%; LTV:

20%)

• To Provide Shareholders with Stable Dividends (Dividend Payout: 65%)

7

IP Strategies

Overview

8

• Retail Revenue (72% of Total HKIP

Revenue*)

• 3 Iconic Malls as Main Contributors

• Relentless Value Creation Initiatives

Driving Strong IP Income Base

Sturdy Recurrent Income Base

Retail

71.6%

Office

26.0%

Serviced Apts

2.4%

2017 HKIP Revenue Split

HKIP Revenue

$13.3B

*Excl. Hotel

Overview

9

Retail Resilience Through Market Down-cycles

16.1%

17.7%

14.6%

13.3%

19.6%

15.1% 14.7%

17.4%

5.3% 4.6% 4.7%

12.8%

10.3%

0.6%

18.3%

24.9%

9.8%

11.0%

-0.2%

-3.7%

-8.1%

2.2%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

HC/TS/PH Total Retail Revenue Growth vs HK Retail Sales Growth

3 Malls Retail Revenue HK Retail Sales Growth

Total Retail Revenue

10-yr CAGR 12.6%

Market Downturn Market Downturn

Overview Financial Highlights

HKD Million 2017 2016 % Chg

Group Revenue 20,904 16,851 +24%

Operating Profit 15,442 11,824 +31%

Core Profit** 9,500 8,516 +12%

Profit Before IP Revaluation Surplus 9,236 8,706 +6%

Net IP Revaluation Surplus 7,982 1,211 +559%

Profit After IP Revaluation Surplus 17,218 9,917 +74%

Earnings Per Share (HK$)

- Attributable to Shareholders

- Core**

5.67

3.13

3.27

2.81

+73%

+11%

Dividend Per Share (HK$) $0.95 NA

10

• Core Profit +12% to $9.5B, 94% from 6

Core Properties

• DPS $0.95 (65% of Recurring HKIP Core

Profit for 2H17)

• NAV $207B ($68.29/Share)

• Net Debt to Total Equity 19.9%

**Exclude IP Revaluation Surplus and Exceptional Items

Harbour City

Agenda

11

Harbour City (HC)

Times Square (TS)

Central Portfolio

Plaza Hollywood (PH)

Financial Management

Agenda

Harbour City Productivity

12

LFA (’000 s.f.)

(as of 31 Aug 2017) Occupancy

Retail 1,286 96%

Office 4,239 98%

Serviced Apartments 661 95% ^

Hotel* & Club NA NA

2017 Retail Sales

$30.2B +9.1%

2017 Sales psf/mth

~$2,300

2017 Retail Revenue

6,627M

+7%

Total GFA

8.4M s.f

HC is a 999-yr Leasehold Property (Excl. Ocean Terminal, Pacific Club)

*3 Marco Polo Hotels: Total 1,459 rooms; ^ Excl. the Vacation of Hampton Court for Premise Conversion

As Part of Asset Enhancement Strategy, Hampton Court will be

Converted into Office Premises (Completion: Jun 2019)

Harbour City “GHC” Cluster

13

• HC Mall: ~36% of GFA of Key Malls in

Greater Harbour City Cluster

• 8 Michelin-Starred Fine Dining

Restaurants*

• 14% of No. of Hotel Rooms in GHC

Cluster

* Total 55 Relevant Restaurants in GHC Cluster

Harbour City

Harbour City Global-showcase

14

• The Largest Retail Offerings in Town (570

Tenants)

• 2M s.f Mall Incl. 530m Retail Frontage

(Canton Rd)

• Must-have Location & Showcase to

Mainland Market for World’s Best Brands

• 2017 HK Market Share 6.8%*

Stores at HC -

Among their Top 3 Best Performing Stores in the World

(Selected Brands only)

2015 Retail Sales: HC US$3,681 psf = 2x U.S. Top 10 Malls Avg. US$1,828

*HK Incl. Wet Market

Harbour City

• Proven Management Driving Rental

Growth

• Tenant-mix Refinement & AEIs Driving

Value Creation

• Compelling Marketing Initiatives Driving

Patronage

15

“Retailtainment”

“Bubble Up” Art Project

“Master David Chan Contemporary

Chinese Calligraphy Performance &

Exhibition”

“Christmas in the Air”

“Giants of Christmas Forest”

Exhibition

Harbour City

Renewed

Outperformance

16

Best-in-class-management

27.3%

18.3%

15.8%

30.0%

33.8%

13.2%

10.0%

3.3%

-12.1% -9.9%

9.1%

12.8%

10.3%

0.6%

18.3%

24.9%

9.8%

11.0%

-0.2% -3.7%

-8.1%

2.2%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Retail Sales Growth (YoY)

Harbour City Hong Kong

CAGR HC HK

2007-2017 10.2% 6.1%

2017 HK Tourist Arrival +3.2%

(Mainlander: +3.9%)

Outperformance

Harbour City

17

Rental Growth (2007-2017)

1.8 2.2

2.6 2.9

3.6 4.2

4.9

5.7 5.9 6.2

6.6

1.3

1.6

1.7 1.6

1.6

1.7

1.9

2.1

2.3 2.4

2.5

0.2

0.3

0.3 0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

HC Revenue Breakdown (HKD billion)

2017 $9.4B (+5%)

Retail Office S.A

Total Revenue

(2007 vs 2017)

Retail Rental Income*

(2007 vs 2017)

2.8x

(CAGR: 11%)

4.1x

(CAGR: 15%)

A Quantum Jump in Rental Income

+21%

+20%

+11%

+6%

+15%

+14%

+14%

+14%

+6%

+5%

+5%

* Excl. Management Fee, Carpark & Others

Harbour City OT Extension

18

• Breathtaking 270° Panorama of Victoria

Harbour

• West-facing Extension – Best Sunset &

Night Views of HK

• 11 Dining Outlets (7 are HK Debuts)

with Alfresco Area & Upgraded Cruise

Terminal Facilities

• Designed by Foster+Partners

Tsukada Nojo

HEXA Xihe Ya Yuan Beijing

Duck Restaurant

Paper Moon

ANA Ten

Mellow Brown Café by UCC A Nu Retrouvez-vous

Luna Cake Premium FU-RONG

Harbour City

19

New Icon

New Driver of Incremental Patronage

Times Square

20

Agenda

Harbour City (HC)

Times Square (TS)

Central Portfolio

Plaza Hollywood (PH)

Financial Management

Times Square

21

Vertical-landmark

LFA (’000 s.f.)

(as of 31 Aug 2017) Occupancy

Retail 531 96%

Office 1,026 99%

2017 Retail Sales

$8.2B +1.1%

2017 Sales psf/mth

~$1,300

2017 Retail Revenue

2,112M

-1%

Total GFA

2.0M s.f

TS is a 999-yr Leasehold Property

Times Square “GTS” Cluster

22

• CWB: Leading Shopping District on HK

Island

– Shopping Malls & Major Pedestrian

Streets

– Hotels & Office Developments

– Tourist Spots

• TS Mall: ~28% of GFA of Key Malls in

High-Traffic Greater Times Square Cluster

Times Square Lifestyle-hub

23

• Iconic Lifestyle Destination

• Linked to Causeway Bay MTR Station

• “The Living Room Museum”: Centre

Stage of Exhibitions

Mall: 17-level, ~230 Tenants

Times Square

• Constant Value-accretive Initiatives

Driving Performance

• Exciting Openings of Facesss & LEGO

Certified Store Offer Pleasant Surprises

• Innovative Cultural Exhibitions/ Events

Add Excitements

24

Excitements

“Winnie the Pooh: Be My Friend”

Exhibition

“Snoopy Celebrate Christmas at

Times Square”

“The Picasso and Jacqueline” Exhibition

Times Square

25

Sales-recovery

12.4%

10.7%

4.8%

20.0%

23.9%

1.5% 1.6%

11.1%

-12.8% -11.3%

1.1%

12.8%

10.3%

0.6%

18.3%

24.9%

9.8% 11.0%

-0.2%

-3.7%

-8.1%

2.2%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Retail Sales Growth (YoY)

Times Square Hong Kong

CAGR TS HK

2007-2017 4.4% 6.1%

2017 HK Tourist Arrival +3.2%

(Mainlander: +3.9%)

Returned to

Positive Territory

Market Downturn Market Downturn

Times Square

26

Rental Growth (2007-2017)

0.8 0.9

1.0 1.1

1.3 1.4

1.5

1.9 2.0

2.1 2.1 0.4

0.4 0.5

0.5

0.5

0.6

0.6

0.7

0.7

0.7 0.7

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

TS Revenue Breakdown (HKD billion)

2017 $2.8B (Flat)

Retail Office

Total Revenue

(2007 vs 2017)

Retail Rental Income*

(2007 vs 2017)

2.4x

(CAGR: 10%)

3.0x

(CAGR: 12%)

+14%

+15%

+9%

+8%

+13%

+10%

+10%

+21%

+6%

+6% Flat

* Excl. Management Fee, Carpark & Others

Central

Portfolio

27

Agenda

Harbour City (HC)

Times Square (TS)

Central Portfolio

Plaza Hollywood (PH)

Financial Management

Central

Portfolio

28

Central Portfolio

Crawford House Wheelock House The Murray, a Niccolo Hotel

Central

Portfolio Crawford House – Premium-commercial

29

• Strategically Located in HK’s Core CBD

• Houses Zara’s HK Flagship

• 999-yr Leasehold

• 2017 Office Passing Rent $57 psf/mth

(+6%)

• 2017 Office Rental Reversion +9%

Central

Portfolio

• Prime Grade A Office, on Top of MTR

Station

• First-rate Management

• 999-yr Leasehold

• 2017 Office Passing Rent $74 psf/mth

(+7%)

• 2017 Office Rental Reversion +19%

30

Wheelock House – Ground-zero

Central

Portfolio The Murray – Contemporary Urban Chic

31

• Converted from Iconic Murray Building

• Historical Landmark Under Government’s

Conserving Central Initiative

• A Signature Piece of Architecture (~50

Yrs) Comes to Life Again

• Completion 15 Months Ahead of

Schedule

Attending the Plaque Unveiling Ceremony at The Murray are (from Left) Mr. Douglas Woo,

Mr. Peter Woo, Mrs. Carrie Lam, Mr. Stephen Ng & Ms. Yen Leng

Completion of Preservation of The Murray (20 Dec 2017),

as a Celebration for the 20th Anniversary of HKSAR

Central

Portfolio The Murray – Contemporary Urban Chic

32

• Strategic Investment in CBD with Long-

term Perspective

• A Luxury Hotel Overseeing the City’s

CBD & Serene Green Surroundings

• Soft Opening: 15 Jan 2018

Included in CNN Travel’s 2018 List

of Must-visit Luxurious New Hotel

Included in the List of World’s Best

New Hotel to Discover in 2018

by The New York Times

Central

Portfolio

33

The Murray – Accommodation

The Murray Suite

• 298 Rooms & 38 Suites (25 Floors)

• The Murray Suite

– Eponymous Suite with Panoramic

City Views

– Offers Ultimate Accommodation

Experience & Finest of Creature

Comforts

Central

Portfolio

• Popinjays

– Stunning Rooftop Restaurant, Bar &

Terrace

– Offers Breath-taking Views of CBD &

Green Oasis of HK Park

• The Tai Pan (Modern European)

• Murray Lane (Lobby Bar)

• The Garden Lounge

• Guo Fu Lou (國福樓)

34

The Murray – Restaurants & Bars

Popinjays

(Rooftop Restaurant & Bar)

Central

Portfolio

35

The Murray – Facilities

Niccolo Room

• Meeting & Event Spaces>20,000 s.f

• Leisure Facilities: Spa, Gymnasium &

Swimming Pool

Plaza

Hollywood

36

Agenda

Harbour City (HC)

Times Square (TS)

Central Portfolio

Plaza Hollywood (PH)

Financial Management

Plaza

Hollywood CBD2-destination

37

• Exploit Growth Opportunities in

Kowloon East (Govt-designated CBD2)

• Atop Diamond Hill MTR Station

(Interchange for Shatin to Central Link)

– Tai Wai to Hung Hom via Diamond

Hill (2019*)

– Hung Hom to Admiralty (2021*)

• Collaborate with Kai Tak Cruise Terminal

to Drive Patronage & Boost Tourist

Spending

Mall: 210 Tenants, 24 Restaurants & a Purpose-built Stadium

* Commissioning Date

Plaza

Hollywood CBD2-destination

38

LFA (’000 s.f.)

(as of 31 Aug 2017)

Occupancy

Retail 375 97%

2017 Retail Sales

$2.5B +1.9%

Total GFA

562K s.f

2017 Retail Revenue

574M

+5%

65% GFA Lettable (Highly Efficient)

Financial

Management

39

Agenda

Harbour City (HC)

Times Square (TS)

Central Portfolio

Plaza Hollywood (PH)

Financial Management

Financial

Management Prudent Financial Management

40

• Gearing: 19.9%

• Average Interest Cost: 3.2%

• 2018 Capex for 6 Key Assets: $0.8B

(2017: $2.1B)

20.3*

1.5

4.9

3.0

7.6 6.5

Jan18-Dec18 Jan19-Dec19 Jan20-Dec20 Jan21-Dec21 Jan22-Dec22 Jan23 & After

Debt Maturity (HKD billion)

(As at 28 Feb 2018)

For Debt with Maturity in 2023 & After Incl. the 10-yr Bond of US$600M Issued

in Jan 2018

As of Late Feb 2018, Long-term Facility Available for Drawdown Amounted to

Approximately $12B, which Could be Utilized to Repay the Bridging Loan ($20B)

if Needed .

*Incl. Bridging Loan of $20B

Financial

Management

• Same Rating as HK Land, Swire Properties & Link REIT

• Per Moody’s, the Rating

– Reflects WREIC’s Sizable & Good Quality Assets, & Diversity of its Asset Types

– Considers WREIC’s Strong Management Ability in Tenancy Management, which

Provides Good Revenue & Profit Visibility

– Reflects that WREIC will Maintain a Sustainable Business Strategy & Prudent

Financial Management

41

Moody’s A2 Issuer Rating; Outlook Stable

Source: Moody’s Investors Service

42

Corporate Social Responsibility

Business-in-

Community The Star Ferry

43

• First & Only Public Transport Operator in HK

Offering Free Rides to Eligible Elderly &

Concessionary Fares to Those in Need,

Without Government Subsidies

Benefit

~1 Million Elderly Over 65

~1 Million Children & Vulnerable People

Business-in-

Community Project WeCan

44

Launched in 2011 by Wharf, Project WeCan

is a Business-in-Community Initiative

Providing Students who are Disadvantaged

in Learning with Opportunities and Care.

Using an “Adopt a School” Model, it is

Now an Open Platform Encompassing:

34 Companies: 11 Wharf Business Units + 23 External Companies

5 Universities

3 Consulates

3 Organisations

Beneficiaries 2017 2018

50,000 66,000 (est.)

53 75

Business-in-

Community Wharf Architectural Design Internship

45

Project Partners

2 Universities

Awardees

24 Architectural Postgraduates

Countries

Denmark, Dubai, France, Germany, India, Italy,

Japan, the Netherlands, Spain, Switzerland, the

United Kingdom and the United States

Business-in-

Community Wharf Art Scholarship

46

• Launched in 2013

• Support Students to Pursue an Undergraduate

Degree in Creativity Related Subjects at a

Tertiary Institution of Their Choice

• 12 Students have Received Scholarships to

Study Art & Design Related Subjects at

Renowned Institutions Around the World

Appendix

47

Appendix

Appendix

48

Harbour City Times Square Plaza Hollywood

2017

(HKD million) Revenue % Chg Revenue % Chg Revenue % Chg

Retail 6,627 +7% 2,112 -1% 574 +5%

Office 2,492 +2% 712 +2% - -

Hotels & Club 1,336 +4% - - - -

Serviced Apt. 325 +3% - - - -

Total 10,780 +5% 2,824 Flat 574 +5%

Valuation* as of

31 Dec 2017 $178.1B $56.6B $9.6B

Retail Sales

Jan-Dec 2017 $30.2B (+9.1%) $8.2B (+1.1%) $2.5B (+1.9%)

2017 Avg. Retail

Passing Rent

(HK$ psf per

Month)

$430 $299 $108

* Incl. Hotels at Valuation as of 31 Dec 2017

HC/TS/PH Performance

Appendix

49

Premium Quality IP Driving Growth

9.7

11.3

12.0

12.8

13.3

8.4

9.8

10.4

11.2 11.7

2013 2014 2015 2016 2017

HK IP Revenue & Operating Profit (HKD Billion)

Revenue Operating Profit

Appendix Highest HKIP Revenue & Valuation (Among HK Listed Landlords & REITs)

50

Note: Excl. Hotel (Not Classified as IP Per Accounting Std.); Data for Peers Either as of End-2016 or Mar-2017

241.4

Wharf REIC Peer A Peer B Peer C Peer D Peer E Peer F

2016 HKIP Valuation (HKD Billion)

12.8

Wharf REIC Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6

2016 HKIP Revenue (HKD Billion)

Appendix

51

Transforming a Wharf & Godown to Harbour City in 1960s-Present

• Under the Government’s PUD, Kwai Chung was the Selected

Location for Cargo Containerization

• Resulting in the Creation of The Hongkong Hotel, Ocean

Centre & Rest of Harbour City (“HC”)

• Ocean Terminal (Part of HC) - 1st All-weather Mall in HK;

1st Cruise Terminal in HK

• HC is Now an International Retail Landmark & a Must Visit

“Shoppertainment” Destination for Locals & Tourists

• Ocean Terminal Extension (“OTE”) is Scheduled to Open in

4Q17, Further Enhances OT’s Positioning

Appendix One Harbour, One Harbour City

52

Unrivalled Power Centres:

• Cosmetics: Largest Single Cluster in the

City (250+ Brands)

• Shoes: Most Diversified Choices (200+

Brands)

• KidX “Petite Canton Road”: Best-in-class

Selection (50+ Brands)

• Jewellery & Watches: (100+ Brands)

• SportX: Full Range of Sporting Goods

(50+ Brands)

• F&B / Confectionary: (100+ Outlets)

One Harbour, One Harbour City

(一個海港, 只有一個海港城)

Appendix

53

Creating a Times Square from an Old Tram Depot in 1989

From an Old Tram Depot & Wet Markets To a 17-storey Vertical Mall (1M s.f)

Among the World’s Most Successful Vertical Malls

Appendix

54

3,681

3,185

2,349 2,200 2,170

1,615 1,595 1,595 1,550 1,475 1,457 1,440

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Harbour City Bal Harbour Times Square The Grove The Mall at

Rockingham

Park

Forum Shop at

Caesars

Aventura Mall Phesant Lane

Mall

Woodbury

Common

Premium

Outlets

The Village at

Corte Madera

Century City Ala Moana

Centre

2015 Retail Sales (USD psf)

(California)

(L.A.)

(Honolulu)

Source: CNBC

Average: USD1,828 psf

(New York )

(Florida) (L.A.)

(New Hampshire)

(Las Vegas)

(Florida)

(New

Hampshire)

HC Annual Retail Sales psf 2x Top 10 N. America Malls’ Avg.

Appendix Overview of Application of Funds

55

HKD 2017

(Actual) 2018

(Projected)

HKIP 0.5B 0.5B

China IP 0.8B 1.4B

China DP 0.5B 0.5B

Hotels & Others 1.6B 0.4B

Total 3.4B 2.8B

* China DP Self-financed by Sales

Major Capital & Development Expenditure

56

Thank You

Retail Drives IP Cashflow

57

End of Presentation

Wharf Real Estate Investment Company Limited [HKEx Stock Code: 1997.HK]

Disclaimer

1) All information and data are provided for information purposes only. All opinions included herein constitute

Wharf’s judgment as of the date hereof and are subject to change without notice. The Group, its

subsidiaries and affiliates hereby disclaim (i) all express, implied, and statutory warranties of any kind to

user and/or any third party including warranties as to accuracy, timeliness, completeness, or fitness for any

particular purpose; and (ii) any liability whatsoever for any loss howsoever arising from or in reliance upon

the whole or any part of the information and data contained herein.