LIPPO-MAPLETREE - Lippo Malls Indonesia Retail Trust - Investor ...

• Under each of the Master Lease Agreements, the relevant Retail Space Indonesian SPC will be entitledto receive from the Master Lessee rental payments comprising:- A fixed base rent amount for the period commencing from Listing Date to 31 December 2007.- An annual increment of 8.0% over the lease rental payable for the immediately preceding financialyear for each of FY2008 to FY2011.- For each of FY2012 to FY2016, an amount equivalent to the lease rental payable in respect of FY2011and 4.25% of the amount by which the net revenue of the Master Lessee derived from the RetailSpaces for the immediately preceding financial year exceeds the net revenue of the Master Lesseederived from the Retail Spaces for FY2010. The Master Lessee’s operations in each of the individualRetail Spaces will be audited annually by an international accounting firm.• The Manager believes that the structure of the Master Lease Agreements provides LMIR Trust withstable and growing rental income from the Retail Spaces.Stable and growing distributions for LMIR Trust• LMIR Trust’s distribution policy is to distribute 100.0% of its tax-exempt income (after deduction ofapplicable expenses) and capital receipts for the period from the Listing Date to 31 December 2007, theyear ending 31 December 2008 (“Projection Year 2008”) and the year ending 31 December 2009(“Projection Year 2009”) and at least 90.0% of its tax-exempt income (after deduction of applicableexpenses) and capital receipts thereafter. The tax-exempt income comprises dividends received fromthe Target Singapore SPCs (see “—Structure of LMIR Trust”). The income of the Target SingaporeSPCs is derived mainly from interest income earned and dividends from the Indonesian SPCs. Capitalreceipts comprise amounts received by LMIR Trust from the redemption of its investment in theredeemable preference shares in the Target Singapore SPCs.• The actual proportion of tax-exempt income and capital receipts distributed to Unitholders may begreater than 90.0% if the Manager considers this to be appropriate, having regard to LMIR Trust’sfunding requirements, other capital management considerations, and the need to ensure the overallstability of distributions.• Distributions will be paid on a quarterly basis for the three-month periods ending on 31 March, 30 June,30 September and 31 December each year. LMIR Trust’s first distribution after the Listing Date will be forthe period from the Listing Date to 31 March 2008 and will be paid by the Manager on or before 30 May2008. Subsequent distributions will be made on a quarterly basis (see “Distributions”).• The table below sets out the percentage of forecast Gross Rent attributable to Committed Leases for(i) the period from 1 July 2007 to 31 December 2007 (“Forecast Period 2007”), (ii) the Projection Year2008, and (iii) the Projection Year 2009.Percentage of forecast and projected Gross Rent attributable to Committed LeasesForecast Period 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91.3%Projection Year 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80.9%Projection Year 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66.8%• The table below sets out the Manager’s forecast and projected distribution yields for the time periodsindicated, which are based on the assumption that LMIR Trust distributes 100.0% of its tax-exemptincome (after deduction of applicable expenses) and capital receipts.Distribution yieldBased on theOffering Price(%)Forecast Period 2007 (1) ............................................. 6.9Projection Year 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.3Projection Year 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.8Note:(1) Annualised figures for Forecast Period 2007.• Such yields will vary accordingly for investors who purchase the Units in the secondary market at amarket price different from the Offering Price. The profit forecast and profit projections from which this6