13 May 2016 18:42:00
Management Discussion and Analysis Quarter 1 Ending 31-Mar-2016
Management Discussion and Analysis Company name : DIGITAL TELECOMMUNICATIONS INFRASTRUCTURE FUND Year : 2016 Quarter : Quarter 1 Ending : 31-Mar-2016 Note : JorTor 11-590210 May 13, 2016 To: The President The Stock Exchange of Thailand Re: Clarification on the change in the net increase in net assets from operations in excess of 20% of Digital Telecommunications Infrastructure Fund (DIF) SCB Asset Management Co., Ltd., the Management Company of Digital Telecommunications Infrastructure Fund ("the Fund"), would like to clarify the change in the net increase in net assets from operations for three months ended March 31, 2016 which increased in excess of 20%, compared to that of the same period in 2015. The Fund has the net increase in net assets from operations for three months ended March 31, 2016 amounted to Baht 14,649.78 million, or an increase of Baht 13,374.68 million (1048.91%) from that of the same period last year. This is mainly a result of an increase of net unrealized gain from investment totaled Baht 13,486.11 million (for three-month period ended March 31, 2016: Baht 13,486.96 million; three-month period ended March 31, 2015: Baht 0.85 million). The incremental net unrealized gain in Q1 2016 stems mainly from an incremental asset re-appraisal. For this period, the independent appraiser has adjusted certain assumptions in order to make the investment value more in line with what is stated in the relevant agreements and the Fund's operation, for instance, adjusting discount rate, applying mid-year discount convention, modifying the assumption about additional rental incomes from co-tenants, and adjusting the assumption about certain relevant expenses. However, the Fund has not conducted the periodic re-appraisal of its whole assets during 2015 (there was only the appraisal of recently-invested assets in Q1 2015, where the source of funding is loan from the group of five banking and financial institutions; therefore, there was no impact toward net asset value in 2015), leading to no unrealized gain from asset re-appraisal recorded in the financial statement in 2015. The incremental asset re-appraisal which grew significantly in Q1 2016 resulted in the unrealized gain in the financial statement and/or reviewed financial statement by auditor, but did not impact the cash flows to be considered for distributions to the unitholders and/or capital reduction of the Fund. Also, please be noted that the Fund has changed the asset re-appraisal policy from January 2015 onwards to re-evaluate the assets of the Fund once a year, unless there is any significant event impacting the value of assets of the Fund. Please be informed accordingly. Yours Faithfully, Digital Telecommunications Infrastructure Fund By SCB Asset Management Company (Ms. Pijittra Trirattanathada) Senior Vice President, Property and Infrastructure Investment Group This announcement was prepared and disseminated by listed company or issuer through the electronic system which is provided for the purpose of dissemination of the information and related documents of listed company or issuer to the Stock Exchange of Thailand only. The Stock Exchange of Thailand has no responsibility for the correctness and completeness of any statements, figures, reports or opinions contained in this announcement, and has no liability for any losses and damages in any cases. In case you have any inquiries or clarification regarding this announcement, please directly contact listed company or issuer who made this announcement.