Mapletree Pan Asia Commercial Trust · SGX:N2IU
Mapletree Pan Asia Commercial Trust — H1 FY24/25 Earnings Presentation
67 slides from Mapletree Pan Asia Commercial Trust's earnings presentation, Oct 24, 2024
Slide 1: 2Q and 1H FY24/25 Financial Results
Mapletree Pan Asia Commercial Trust 2Q and 1H FY24/25 Financial Results 24 October 2024
Slide 2: Important Notice
Important Notice This presentation is for information only and does not have regard to your specific investment objectives, financial situation or your particular needs. This presentation does not constitute an invitation, offer or solicitation of any offer to sell or subscribe for, acquire or purch
Slide 3: Content
Content ▪ Key Highlights Page 4 ▪ Financial Performance Page 7 ▪ Portfolio Highlights Page 17 ▪ Divestment Completion of Mapletree Page 32 Anson ▪ Commitment to Sustainability Page 34 ▪ Outlook Page 37 ▪ Appendix 1: Market Information Page 41 ▪ Appendix 2: Other Asset Information Page 59 3
Slide 4: Key Highlights
Key Highlights VivoCity, SG
Slide 5: Key Highlights
Key Highlights Financials and Capital Management 2Q FY24/25 Distribution per Unit NAV per Unit Aggregate Leverage (“DPU”) S$1.71 38.4 % 1.98 Singapore cents Operational Performance Assets Under Management Portfolio Committed (“AUM”)1 Occupancy Portfolio WALE S$15.5 billion 90.3 % 2.3 years 17 commer
Slide 6: Key Highlights (cont'd)
Key Highlights (cont’d) Financial Performance Portfolio Performance 2Q FY24/25 vs 2Q FY23/24 ▪ Portfolio resilience: Sustained by healthy committed occupancy and positive rental reversion ▪ Singapore’s strength and accretive divestment of Mapletree Anson: Cushioned against lower overseas ▪ Singapore
Slide 7: Financial Performance
Financial Performance Mapletree Business City, SG
Slide 8: 2Q FY24/25 vs 2Q FY23/24: Singapore Strength and Accretive Divestment
2Q FY24/25 vs 2Q FY23/24: Singapore Strength and Accretive Divestment Fortify MPACT against Overseas Headwinds VivoCity drives 0.7% yoy growth in Singapore’s gross revenue (excluding Mapletree Anson) despite AEI and tenant rejuvenation impact. Debt reduction successfully offsets higher interest rate
Slide 9: 2Q FY24/25 Contribution to Gross Revenue and NPI
2Q FY24/25 vs 2Q FY23/24: Singapore Records Higher YOY Contribution to Gross Revenue and NPI on Comparable Basis1 Stability of Singapore cushions shifts in overseas markets S$1.0m2 S$0.2m3 higher revenue from SG assets higher NPI from SG assets on comparable basis1 on comparable basis1 243.3 3.1 228
Slide 10: 1H FY24/25 vs 1H FY23/24 Results
1H FY24/25 vs 1H FY23/24: VivoCity Drives Singapore’s Comparable Gross Revenue Up 1.9% Despite Impact from AEI Reduced borrowings post-divestment buffer against impact of elevated interest rates S$’000 unless 1H FY24/25 1H FY23/24 Variance otherwise stated Gross Revenue1 462,273 477,280 3.1% Gross
Slide 11: 1H FY24/25 Contribution to Gross Revenue and NPI
1H FY24/25: Singapore Continues to Provide Cushion Against Fluctuations in Overseas Markets Higher YOY Contribution to Gross Revenue and NPI by Singapore on a comparable basis S$5.1m1 S$3.2m2 higher revenue from SG assets higher NPI from SG assets on on comparable basis comparable basis By Market By
Slide 12: Stable Balance Sheet
Stable Balance Sheet Lower investment properties largely due to Mapletree Anson divestment and interim valuation of three properties in the Makuhari submarket of Chiba, Japan1 As at As at S$’000 unless otherwise stated 30 September 2024 31 March 2024 Investment Properties 15,298,415 16,248,855 Inves
Slide 13: Strengthened Balance Sheet with Under 40% Gearing Level
Strengthened Balance Sheet with Under 40% Gearing Level Reduced floating-rate debt after accretive divestment of non-core asset but leverage ratio affected by interim valuation of Makuhari properties As at As at As at 30 September 2024 30 June 2024 30 September 2023 Gross Debt Outstanding1 S$6,084.3
Slide 14: A Holistic and Risk-Based Approach to Capital Management
A Holistic and Risk-Based Approach to Capital Management (as at 30 September 2024) Balancing flexibility and stability while keeping costs at reasonable levels Supported by ample liquidity Proactive debt mix alignment with AUM composition Foreign-denominated debt, 46% Total Gross Debt Total Gross S$
Slide 15: Maintaining Stability Through Prudent Hedging Measures
Maintaining Stability Through Prudent Hedging Measures (as at 30 September 2024) Fixed rate debts kept above 70% to shield against interest rate volatility ~90% of expected distributable income derived from or hedged into SGD to provide income stability ~84% of total debt hedged or fixed ~90% of Exp
Slide 16: Distribution Details
Distribution Details Unitholders will receive 2Q FY24/25 DPU of 1.98 Singapore cents on 6 December 2024 Distribution Period 1 July 2024 to 30 September 2024 Distribution Amount 1.98 Singapore cents per Unit Distribution Timetable Notice of Record Date Thursday, 24 October 2024 Last Day of Trading on
Slide 17: Portfolio Highlights
Portfolio Highlights VivoCity, SG
Slide 18: Portfolio Highlights
Portfolio Highlights Portfolio1 Committed Occupancy Total Lettable Area Renewed & Re-let 90.3% 320,843 sq ft 954,022 sq ft Retail Office/Business Park Rental Reversion Tenant Retention Rate +4.1% 44.1% VivoCity Festival Walk Tenant Sales Shopper Traffic Tenant Sales Shopper Traffic 4.1% 2.0% 1
Slide 19: Resilient Portfolio Committed Occupancy
Resilient Portfolio Committed Occupancy Singapore records healthy commitments despite transitional vacancies Proactive measures to mitigate anticipated peak challenges for Makuhari properties in FY25/261 As at As at As at 30 September 2024 30 June 2024 30 September 2023 (%) (%) (%) MBC, SG 92.5 92.8
Slide 20: Core Resilience Driven by Positive Portfolio Rental Reversion
1H FY24/25: Core Resilience Driven by Positive Portfolio Rental Reversion Singapore spearheads stability with robust rental uplift Retention Rate by Lettable Area Number of Leases Rental Lettable Area Renewed/Re-Let Committed Reversion1,2 (%) (sq ft) (%) (’000 sq ft)1 MBC, SG 7 81.6 274.0 2.5 VivoCi
Slide 21: Well-Staggered Lease Expiry Profile
Well-Staggered Lease Expiry Profile (as at 30 September 2024) Proactive lease management that prioritises overall resilience Weighted Average Lease Expiry (“WALE”) by Gross Monthly Income (“GRI”) Portfolio Retail Office/Business Park 2.3 years1 2.2 years 2.5 years Lease Expiry Profile by Percentage
Slide 22: Performance of Office/Business Park Assets
Performance of Office/Business Park Assets Cornerstone of long-term stability amid diverging Continued efforts to preserve occupancy while global currents positioning for eventual upturn Committed Occupancy Total Lettable Area Committed Occupancy Total Lettable Area Renewed/Re-let YTD Renewed/Re-let
Slide 23: Interim Valuation for Three Properties in Makuhari Submarket
Interim Valuation for Three Properties in Makuhari Submarket of Chiba, Japan Conducted to address localised market softness in Makuhari Manager actively assessing various strategic options to mitigate challenges Valuation1 Valuation Variance Variance As at 30 Sep 2024 (Local currency mil) (S$ mil) V
Slide 24: Performance of Retail Assets
Performance of Retail Assets VivoCity – Core asset’s sustained operational Festival Walk – Proactive management, leasing and excellence continues to anchor portfolio stability marketing efforts to navigate changing landscape Total Lettable Area Total Lettable Area Committed Occupancy Committed Occup
Slide 25: VivoCity – Steady Trajectory Towards Long-Term Success
VivoCity – Steady Trajectory Towards Long-Term Success Temporary yoy dip in 2Q FY24/25 mostly due to increased downtime from future-focused enhancements1; solid fundamentals persist Shopper Traffic (mil) Tenant Sales (S$ mil)2 2.0% 4.1% year-on-year year-on-year 22.2 21.7 523.1 501.7 11.1 11.2 2
Slide 26: VivoCity – Progress Update on Phased Upgrading at Basement 2
VivoCity – Progress Update on Phased Upgrading at Basement 2 Upgrading of food kiosk area progressing well; initial group of tenants began operations from October 2024 Enhanced F&B options and enhancements designed to maximise capture of high traffic at Basement 2 ▪ Major AEI implemented in phases,
Slide 27: VivoCity – An Ongoing Journey Of Retail Renewal
VivoCity – An Ongoing Journey Of Retail Renewal Fresh concepts and active rejuvenations enhance offerings and broaden market reach Partnering tenants on their expansion and rejuvenation efforts Sephora, L1 – Iconic beauty retailer expanded Brotzeit, L1 – German Beer Bar & Tori Sanwa, L1 – Renowned f
Slide 28: VivoCity – Mixing Festive Traditions with Fun Entertainment
VivoCity – Mixing Festive Traditions with Fun Entertainment Innovative collaboration sparks joyful moments and strengthens connections across generations Donald Duck’s 90th Birthday x Mid-Autumn Festival Celebration Sky Park transformed into a beach party for Donald’s birthday bash, featuring a 7.5-
Slide 29: Festival Walk – Rebound in 2Q FY24/25 Shopper Traffic and Tenant Sales
Festival Walk – Rebound in 2Q FY24/25 Shopper Traffic and Tenant Sales from Previous Quarter 7.9% quarter-on-quarter (“qoq”)1 shopper growth and 3.1% qoq tenant sales uptick driven by adaptive marketing and tenant remixing efforts, despite continued impact from currency-driven outbound travel Shoppe
Slide 30: Festival Walk – Tailoring Our Offerings to Local Tastes
Festival Walk – Tailoring Our Offerings to Local Tastes Actively curating our retail mix to satisfy increased demand for experiential and lifestyle concepts 24/7 Fitness, LG2 – 24-hour fitness centre Boutique by the Grand, LG2 – French provides easy and convenient access for locals confectionary off
Slide 31: Festival Walk – Intensifying Marketing Efforts to Raise Profile
Festival Walk – Intensifying Marketing Efforts to Raise Profile and Draw Footfall High-impact celebrity appearances and events to draw crowds Product Launches with Celebrity Appearances Unique Pop-up Events SHO-CHAN Playful Studio – Pop-up event of well- Launch of NESCAFÉ’s Korean Café Collection –
Slide 32: Divestment Completion of Mapletree Anson
Divestment Completion of Mapletree Anson Mapletree Anson, SG
Slide 33: Accretive Divestment of Non-Core Asset Completed on 31 July 2024
Accretive Divestment of Non-Core Asset Completed on 31 July 2024 Divestment proceeds channelled towards debt repayment, further boosting capital structure and ability to weather diverging overseas currents Date of Acquisition 4 February 2013 Key Transaction Rationale Divestment S$775.0 mil ➢ 1 Stren
Slide 34: Commitment to Sustainability
Commitment to Sustainability Mapletree Business City, SG
Slide 35: Reaffirming Our Commitment to Sustainability
Reaffirming Our Commitment to Sustainability 12 material factors mapped to United Nations Sustainable Development Goals (“SDGs”) Underpinned by four ESG pillars Enhancing Social Value Building a Safeguarding Against the Upholding High Ethical in Our Workplace Resilient Business Impact of Climate Cha
Slide 36: Net Zero by 2050: Building a Climate-Resilient Portfolio
Net Zero by 2050: Building a Climate-Resilient Portfolio Methodical approach to decarbonisation from baseline assessment, target setting, pathway identification to strategic implementation Roadmap to Building a Climate-Resilient Portfolio Refine Sustainability Formulate Decarbonisation Compensate &
Slide 37: Outlook
Outlook Mapletree Business City, SG
Slide 38: Maintaining Singapore's Continued Significance in a Diversified Portfolio
Maintaining Singapore’s Continued Significance in a Diversified Portfolio, Repositioning for Future Opportunities Singapore accounts for more than 50% of portfolio and remains a cornerstone of stability amid diverging market currents Diverging currents shaping our business environment Ongoing Geopol
Slide 39: Outlook
Outlook Conclusion ▪ The broad market landscape remains complex, influenced by geopolitical conflicts and their knock-on effects. However, the Fed’s rate cut and China’s economic stimulus measures could potentially boost overall market sentiment and provide some relief. ▪ Singapore continues to be M
Slide 40: Thank You
Thank You For enquiries, please contact: Teng Li Yeng Investor Relations Tel: +65 6377 6111 Email: teng.liyeng@mapletree.com.sg 40
Slide 41: Appendix 1: Market Information
Appendix 1: Market Information Festival Walk, HK
Slide 42: Singapore Retail – Market Overview
Singapore Retail – Market Overview Overall retail sales impacted by strong Singapore dollar and higher outbound travel; continued tourism recovery, strong pipeline of events, and limited new supply expected to support the retail sector Key Retail Malls and Submarkets Average Rent Orchard Suburban S$
Slide 43: Singapore Retail – Market Overview (cont'd)
Singapore Retail – Market Overview (cont’d) Planned New Supply (2024 – 2026) Area Expected Area Expected Submarket Property Submarket Property (’000 sq ft) Completion (’000 sq ft) Completion City Fringe Labrador Tower 26.4 3Q 2024 Suburban Lentor Modern 60.3 2026 Grand Hyatt Hotel Singapore Downtown
Slide 44: Singapore Retail Sales Performance
Singapore Retail Sales Performance As motor vehicle sales surged, retail sales across the other sectors declined 2.2% yoy for July-August 2024 Likely impact from surge in outbound travel driven by a stronger Singapore dollar (S$ bil) (Online Sales Proportion) 5.0 25.0% 4.5 4.3 4.2 18.0% 4.0 4.0 3.8
Slide 45: Singapore Visitor Arrivals
Singapore Visitor Arrivals YOY growth in visitor arrivals buoyed by pipeline of entertainment events and higher Chinese tourist arrivals amid ongoing recovery of flight connectivity and capacity 25.0 20.0 19.1 18.5 17.4 International Visitor Arrivals (million) International Visitor Arrivals (million
Slide 46: Singapore Office – Market Overview
Singapore Office – Market Overview New supply and subdued demand expected to continue to exert pressure on occupancy levels and rents, but quality spaces in prime locations better positioned to benefit from flight-to-quality trend Key Office Districts Average Rent Occupancy Islandwide Islandwide S$6
Slide 47: Singapore Office – Market Overview (cont'd)
Singapore Office – Market Overview (cont’d) Planned New Supply (2024 – 2026) Submarket Property Area (’000 sq ft) Expected Completion Rest of Central Region Labrador Tower 696.8 3Q 2024 Suburban Punggol Digital District (Office development at Punggol Way) 267.1 4Q 2024 Keppel South Central (Keppel T
Slide 48: Singapore Business Parks – Market Overview
Singapore Business Parks – Market Overview Singapore’s business park sector is poised for sustained attractiveness in the long term given the government’s continued efforts in fostering high-value and knowledge-based industries Existing and Planned Business Park Clusters Planned New Supply (2024 – 2
Slide 49: Hong Kong Retail – Market Overview
Hong Kong Retail – Market Overview Near-term pressures remain, but tourism rebound and government initiatives could support consumption, with added potential for positive spillover from China’s economic measures Key Retail Areas Average Rent Occupancy Kowloon East Kowloon East HKD246 85.4% per sq ft
Slide 50: Hong Kong Retail – Market Overview (cont'd)
Hong Kong Retail – Market Overview (cont’d) Planned New Supply (2024 – 2026) Submarket Property Area (’000 sq ft) Expected Completion CWB/Wan Chai Hopewell Centre II (Mall) 270.0 2024 Others 11 Skies (Retail Portion - Phase 1) 1,620.0 2024 Kowloon East The Twins (Phase 1) 450.0 2024 Kowloon East The
Slide 51: Hong Kong Retail Sales Performance
Hong Kong Retail Sales Performance Monthly retail sales for July and August 2024 dipped yoy, driven by summer outbound travel surge; share of online retail sales declined in tandem (HKD bil) (Online Sales Proportion) 40.0 14.0% 36.3 36.5 36.2 34.5 12.8% 33.7 34.2 35.0 33.8 33.1 34.7 33.8 11.7% 33.5
Slide 52: Hong Kong Visitor Arrivals
Hong Kong Visitor Arrivals Higher outbound travel in 3Q 2024 due to ongoing trend for Mainland China trips and summer peak Tourist arrivals rebounded 15% qoq but remained below pre-2018 social incidents and pre-COVID-19 levels 70,000 60,000 14,109 Total Visitor Arrivals (’000) 14,027 50,000 12,138 4
Slide 53: Beijing Office Market – Market Overview
Beijing Office Market – Market Overview Despite current headwinds, recent government measures offer encouraging signs and China maintains positive long-term prospects Key Office Districts Average Rent Occupancy Lufthansa (Grade A) Lufthansa (Grade A) RMB246 78.6% per sq m per month 1.4 pp 5.0% q
Slide 54: Beijing Office Market – Market Overview (cont'd)
Beijing Office Market – Market Overview (cont’d) Planned New Supply (2024 – 2026) Submarket Property Area (’000 sq m) Expected Completion Lize National Financial Information Center 60.0 4Q 2024 The office building section of China National Convention Center Office AGV & Olympic Park 31.1 1Q 2025 Pha
Slide 55: Shanghai Business Parks – Market Overview
Shanghai Business Parks – Market Overview Landlord incentives and rental reductions boosted net absorption and stable occupancy in 3Q 2024. New supply to pressure rents but high-tech sector growth could drive a rebound in leasing demand Core and Emerging Business Parks Average Rent Occupancy Zhangji
Slide 56: Shanghai Business Parks – Market Overview (cont'd)
Shanghai Business Parks – Market Overview (cont’d) Planned New Supply (2024 – 2026) Area Expected Area Expected Area Expected Submarket Property Submarket Property Submarket Property (‘000 sq m) Completion (‘000 sq m) Completion (‘000 sq m) Completion Shanghai Riverfront Jinqiao Jinqiao One Center 1
Slide 57: Greater Tokyo Office – Market Overview
Greater Tokyo Office – Market Overview Diverse trends in Tokyo’s office market, with Yokohama and Chiba continuing to face supply-demand imbalance Map of Office Markets Planned New Supply (2024 – 2026)1 Expected Submarket Property Area (tsubo) Completion Tokyo 5 wards Yaesu 1-Chome East District B 4
Slide 58: Seoul Office – Market Overview
Seoul Office – Market Overview Market remained resilient in 3Q 2024. New supply expected from 2026 with most of it concentrated in the CBD Planned New Supply (2024 – 2026) Map of Major Office Submarkets Area Expected Submarket Property (million pyeong) Completion Central Business District GBD Centre
Slide 59: Appendix 2: Other Asset Information
Appendix 2: Other Asset Information The Pinnacle Gangnam, South Korea
Slide 60: MPACT's Property Valuation
MPACT’s Property Valuation Singapore constitutes majority of portfolio Valuation Latest Valuation1 Latest Valuation1 Capitalisation Rate2 per sq ft Lettable Area (Local currency mil) (S$ mil) (%) (Local currency/S$) Singapore Properties - VivoCity S$3,358.0 3,358.0 S$3,145 4.50 - MBC I S$2,287.0 2,2
Slide 61: Overall Top 10 Tenants
Overall Top 10 Tenants (as at 30 September 2024) Top ten tenants contributed 21.7%1 of gross rental income % of Gross Rental Income Tenant Property(ies) (as at 30 September 2024) 1 Google Asia Pacific Pte. Ltd. MBC 5.8% 2 BMW Gateway Plaza 3.6% 3 The Hongkong and Shanghai Banking Corporation Limited
Slide 62: Portfolio Tenant Trade Mix
Portfolio Tenant Trade Mix (as at 30 September 2024) Trade Mix % of Gross Rental Income 1 F&B 14.7% 2 IT Services & Consultancy 14.5% 3 Fashion 7.9% 4 Banking & Financial Services 6.8% 5 Departmental Store / Supermarket / Hypermarket 5.1% 6 Beauty & Health 4.5% 7 Machinery / Equipment / Manufacturin
Slide 63: Assets in Singapore
Assets in Singapore VivoCity MBC I MBC II Part 20, 40, 50, 60, 70, 80 Address 1 HarbourFront Walk 10, 20, 30 Pasir Panjang Road Pasir Panjang Road Asset Type Retail Office and Business Park Business Park and Retail Year of Acquisition N.A.1 2016 2019 Leasehold 99 years Strata Lease from 25 August 20
Slide 64: Assets in Singapore
Assets in Singapore mTower BOAHF Address 460 Alexandra Road 2 HarbourFront Place Asset Type Office and Retail Office Year of Acquisition 2011 (IPO) 2011 (IPO) Leasehold 99 years Leasehold 99 years Title from 1 October 1997 from 1 October 1997 Carpark Lots 749 94 Lettable Area (sq ft)1 524,874 215,96
Slide 65: Assets in Hong Kong, China and Seoul
Assets in Hong Kong, China and Seoul Festival Walk, Gateway Plaza, Sandhill Plaza, The Pinnacle Gangnam, Hong Kong Beijing, China Shanghai, China Seoul, South Korea No.18 Xiaguangli, East 3rd Blocks 1 to 5 and 7 to 9, No.80 Tat Chee Avenue, 343, Hakdong-ro, Gangnam- Address Ring Road North, Chaoyang
Slide 66: Assets in Greater Tokyo
Assets in Greater Tokyo Hewlett-Packard Japan IXINAL Monzen-nakacho Omori Prime Building, TS Ikebukuro Building, Headquarters Building, Building, Tokyo, Japan Tokyo, Japan Tokyo, Japan Tokyo, Japan 2-1, Ojima 2-chome 5-4, Fukuzumi 21-12, Minami-oi 6-chome, 63-4, Higashi-Ikebukuro Address Koto-ku 2-c
Slide 67: Assets in Greater Tokyo
Assets in Greater Tokyo ABAS Shin- Higashi-nihonbashi mBAY POINT Fujitsu Makuhari Makuhari Bay Yokohama 1-chome Building, Makuhari, Chiba, Building, Chiba, Tower1, Chiba, Building, Tokyo, Japan Japan Japan Japan Yokohama, Japan 4-6, Higashi- 9-3, Nakase 1- 6-1, Shin-Yokohama 6, Nakase 1-chome, 8, Na
Mapletree Pan Asia Commercial Trust — H1 FY24/25 Earnings Presentation on 6ix