Mapletree Industrial Trust · SGX:ME8U

Mapletree Industrial Trust — Investor Presentation (May 2023)

47 slides from Mapletree Industrial Trust's investor presentation, May 8, 2023

  1. Slide 1: Investor Presentation May 2023

    Investor Presentation May 2023

  2. Slide 2: Important Notice

    Important Notice This presentation shall be read in conjunction with Mapletree Industrial Trust’s (“MIT”) financial results for Fourth Quarter Financial Year 2022/2023 in the SGXNET announcement dated 27 April 2023. This presentation is for information only and does not constitute an offer or solici

  3. Slide 3: Contents

    Contents 01 Overview of Mapletree Industrial Trust 02 Key Highlights 03 Portfolio Update 04 4Q & FY22/23 Financial Highlights 05 Outlook and Strategy 06 Evolving Portfolio Profile 3

  4. Slide 4: Overview of Mapletree Industrial Trust

    OVERVIEW OF MAPLETREE INDUSTRIAL TRUST Hi-Tech Buildings, 18 Tai Seng, Singapore

  5. Slide 5: Overview of Mapletree Industrial Trust

    Overview of Mapletree Industrial Trust 141 NLA (sq ft) AUM Properties 24.8 million1 S$8.8 billion2 Investment Mandate Focused on (i) industrial real estate assets in Singapore, excluding properties primarily used for logistics purposes and (ii) data centres worldwide beyond Singapore Trust Structure

  6. Slide 6: 141 Properties Across 6 Property Segments

    141 Properties Across 6 Property Segments S$8.8 billion1 24.8 million2 >2,000 tenants AUM NLA (sq ft) Tenant Base Light Industrial Buildings Stack-up/Ramp-up 0.6% Data Centres: 53.7% Buildings North America: 50.3% 5.8% Singapore: 3.4% Flatted Factories 16.4% Data Centres Flatted Factories AUM1 Bus

  7. Slide 7: Diverse Portfolio of 141 Properties

    Diverse Portfolio of 141 Properties DATA CENTRES FLATTED FACTORIES Facilities used primarily for the storage and High-rise multi-tenanted industrial buildings processing of data. These include core-and-shell with basic common facilities used for light to fully-fitted facilities, which include buildi

  8. Slide 8: 56 Data Centres Across North America

    56 Data Centres Across North America Total WALE Weighted Average Unexpired Occupancy NLA1 (By GRI)2 Lease Term of Underlying Land3 Rate4 8.3m sq ft 5.6 years Freehold 93.7% Minnesota Ontario 2 1 Wisconsin 1 1 Michigan Massachusetts 2 2 Pennsylvania 2 2 Connecticut 1 Illinois 1 2 New Jersey Ohio 2 In

  9. Slide 9: Diversified Mix of Data Centres (North America)

    Diversified Mix of Data Centres (North America)  90.1% of the North American Portfolio are on triple net lease structures whereby all outgoings1 are borne by the tenants  Good mix of powered shell, fitted hyperscale and fitted data centres SPLIT BETWEEN LEASE TYPES FOR SPLIT BETWEEN TENANT TYPES F

  10. Slide 10: 85 Properties in Singapore

    85 Properties in Singapore Total WALE Weighted Average Unexpired Occupancy NLA (By GRI)1 Lease Term of Underlying Land1 Rate2 16.5m sq ft 2.9 years 33.6 years 95.4% Data Centres Hi-Tech Buildings Flatted Factories Business Park Buildings Stack-up/Ramp-up Buildings Light Industrial Buildings 1 As at

  11. Slide 11: Healthy Returns since IPO

    Healthy Returns since IPO COMPARATIVE TRADING PERFORMANCE SINCE IPO¹ 400 MIT UNIT PRICE 350 151.6% 300 250 200 FTSE ST REITS INDEX 150 9.0% 100 50 FTSE STRAITS TIMES INDEX 2.8% 0 Oct 2010 Oct 2011 Oct 2012 Oct 2013 Oct 2014 Oct 2015 Oct 2016 Oct 2017 Oct 2018 Oct 2019 Oct 2020 Oct 2021 Oct 2022 Reba

  12. Slide 12: Reputable Sponsor with Aligned Interest

    Reputable Sponsor with Aligned Interest About the Sponsor, Mapletree Investments  Global real estate development, investment, capital and property management company  As at 31 Mar 2022, the Sponsor owns and manages S$78.7 billion of assets across Asia Pacific, Europe, the United Kingdom and North

  13. Slide 13: Key Highlights

    KEY HIGHLIGHTS Data Centres, 44490 Chilum Place, Ashburn

  14. Slide 14: Sustainable and Growing Returns

    Sustainable and Growing Returns Distributable Income DPU (S$ million) (cents) 3.47 3.493.49 3.49 100 3.283.30 3.35 3.39 3.36 3.33 3.50 3.13 3.16 92.1 3.10 3.10 90.3 88.4 89.5 90 88.4 89.0 87.2 2.852.87 81.1 82.7 3.00 80 72.9 70.6 70.7 69.469.2 70 2.50 63.263.5 60 2.00 50 1.50 40 30 1.00 20 0.50 10 0

  15. Slide 15: Evolving MIT Portfolio Profile

    Evolving MIT Portfolio Profile Reshaping and Building a Portfolio of Assets for Higher Value Uses Through Development Projects and Acquisitions 70 Properties 141 Properties AUM by geography AUM by geography Singapore 100.0% North America 50.3% Singapore 49.7% 1 Based on MIT’s book value of investmen

  16. Slide 16: Portfolio Growth since IPO

    Portfolio Growth since IPO FY21/22 FY22/23 3 Asset Enhancement S$8.8b S$8.8b Initiatives (“AEI”) 5 Build-to-Suit (“BTS”) FY20/21 Projects S$6.8b 9 Acquisitions FY19/20 Acquisition S$5.9b 29 US DCs US$1.32b FY18/19 FY17/18 S$4.8b BTS Mapletree S$4.3b Hi-Tech Park FY16/17 @ Kallang Way FY15/16 S$300m

  17. Slide 17: 4QFY22/23 Highlights

    4QFY22/23 Highlights  Higher Net Property Income driven by contribution from the acquisition of 29 data centres in the United States, offset by higher borrowing costs • FY22/23 Net Property Income: S$518.0 million ( 9.7% y-o-y) • FY22/23 Distributable Income: S$356.6 million ( 1.6% y-o-y) • FY22/23

  18. Slide 18: Redevelopment – Mapletree Hi-Tech Park @ Kallang Way

    Redevelopment – Mapletree Hi-Tech Park @ Kallang Way 161, 163 & 165 Kallang Way GFA Plot Ratio Kolam Ayer 2 Cluster Two Flatted Factories and an amenity centre 506,720 sq ft 1.5 New Hi-Tech Buildings, including a After Redevelopment 865,600 sq ft 2.5 seven-storey BTS Facility for Anchor Tenant Maple

  19. Slide 19: Portfolio Update

    PORTFOLIO Data Centres, UPDATE 13831 Katy Freeway, Houston

  20. Slide 20: Portfolio Overview

    Portfolio Overview Singapore North American Overall Portfolio Portfolio Portfolio Number of properties 85 56 141 NLA (million sq ft) 16.5 8.31 24.81 Occupancy (%) 4QFY22/23 95.4 93.7 94.92 3QFY22/23 96.9 93.1 95.72 SEGMENTAL OCCUPANCY RATES1 2 2 93.8% 94.3% 94.8% 98.0% 98.4% 99.4% 99.4% 97.5% 97.1%

  21. Slide 21: Lease Expiry Profile

    Lease Expiry Profile EXPIRING LEASES BY GROSS RENTAL INCOME1 As at 31 March 2023 WALE based on date of commencement of leases (years)2 North American Portfolio 5.6 Singapore Portfolio 2.9 Overall Portfolio1 3.9 28.1% 16.1% 16.0% 17.3% 13.5% 9.0% FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 & Beyo

  22. Slide 22: Large and Diversified Tenant Base

    Large and Diversified Tenant Base TOP 10 TENANTS BY GROSS RENTAL INCOME1 As at 31 March 2023  Over 2,000 tenants 5.9%  Largest tenant contributes 5.9% of Portfolio’s Gross Rental Income 5.4%  Top 10 tenants forms about 29.5% of Portfolio’s Gross Rental Income Hi-Tech Buildings Data Centres 3.2% 3

  23. Slide 23: Tenant Diversification Across Trade Sectors

    Tenant Diversification Across Trade Sectors1 No single trade sector accounted >18% of Portfolio’s Gross Rental Income By Gross Rental Income As at 31 Mar 2023 1 Based on MIT’s 50% interest of the joint venture with MIPL in three fully fitted hyperscale data centres and 10 powered shell data centres

  24. Slide 24: Singapore Portfolio Performance

    Singapore Portfolio Performance Occupancy Gross Rental Rate S$ psf/mth 100% 96.8%96.9% $2.50 96.0% 95.4% 94.4% 93.6%93.7% 92.9%93.4% 92.2% 91.5% 90.5%90.2%90.5%90.7%90.2% 90% $2.12 $2.13 $2.13 $2.13 $2.13 $2.11 $2.10 $2.10 80% $2.13 $2.15 $2.15 $2.16 $2.11 $2.08 $2.03 $2.05 $2.00 70% 60% 50% $1.50 4

  25. Slide 25: Rental Revisions (Singapore)

    Rental Revisions (Singapore) GROSS RENTAL RATE (S$ PSF/MTH)1 For Period 4QFY22/23 Before Renewal $4.30 $3.94 After Renewal $3.82 $3.71 $3.76 New Leases $3.63 Passing Rent $3.27 $2.34 $2.01 $1.89 $1.85 $1.54 $1.79 $1.32 $1.37 $1.43 $1.31 Hi-Tech Buildings Business Park Buildings Flatted Factories Sta

  26. Slide 26: Healthy Tenant Retention (Singapore)

    Healthy Tenant Retention (Singapore) LONG STAYING TENANTS RETENTION RATE FOR 4QFY22/23 Up to 1 yr 9.6% >10 yrs 95.1% 95.0% 93.2% 33.1% 88.0% >1 to 2 yrs 80.7% 11.9% 4 yrs or less More than 36.1% > 2 to 3 yrs 4 yrs 7.8% 63.9% >3 to 4 yrs 6.8% N.A. 0.0% Data Hi-Tech Business Flatted Stack-up / Light S

  27. Slide 27: ESG Highlights and Commitments

    ESG Highlights and Commitments Environmental Social Governance Aligned with Mapletree Group’s Donated S$12,000 commitment 25% female to 170 beneficiaries representation on the to achieve from Children’s Board Net Zero by 2050 Wishing Well Completed solar panel installation Introduced Align reporting

  28. Slide 28: Sustainability Updates

    Sustainability Updates GREENING THE ENVIRONMENT Adopt Nature-Based Solutions Accelerate Use of Renewable Energy Over 10,000 shrubs and Solar Panel Installation (Phase 2) 296 trees to be planted at Mapletree Generating capacity of about Hi-Tech Park @ Kallang Way 4,000 kWp Tree planting initiative at

  29. Slide 29: 4Q & FY22/23 Financial Highlights

    4Q & FY22/23 FINANCIAL HIGHLIGHTS Business Park Buildings, The Strategy and The Synergy, Singapore

  30. Slide 30: Statement of Profit or Loss (Year-on-Year)

    Statement of Profit or Loss (Year-on-Year) 4QFY22/23 4QFY21/22  / () (S$’000) (S$’000) Gross revenue 171,099 164,092 4.3% Property operating expenses (42,183) (39,885) 5.8% Net property income 128,916 124,207 3.8% Borrowing costs (27,822) (18,979) 46.6% Trust expenses1 (16,916) (20,913) (19.1%) Ne

  31. Slide 31: Statement of Profit or Loss (Year-on-Year)

    Statement of Profit or Loss (Year-on-Year) FY22/23 FY21/22  / () (S$’000) (S$’000) Gross revenue 684,865 610,063 12.3% Property operating expenses (166,914) (138,082) 20.9% Net property income 517,951 471,981 9.7% Borrowing costs (97,599) (70,857) 37.7% Trust expenses1 (66,331) (57,868) 14.6% Gain

  32. Slide 32: Statement of Profit or Loss (Qtr-on-Qtr)

    Statement of Profit or Loss (Qtr-on-Qtr) 4QFY22/23 3QFY22/23  / () (S$’000) (S$’000) Gross revenue 171,099 170,449 0.4% Property operating expenses (42,183) (41,642) 1.3% Net property income 128,916 128,807 0.1% Borrowing costs (27,822) (26,060) 6.8% Trust expenses1 (16,916) (16,359) 3.4% Net fair

  33. Slide 33: Statement of Financial Position

    Statement of Financial Position 31 Mar 2023 31 Dec 2022  / () 31 Mar 2022  / () Total assets (S$’000) 8,546,802 8,619,961 (0.8%) 8,479,971 0.8% Total liabilities (S$’000) 3,170,867 3,148,673 0.7% 3,201,113 (0.9%) Net assets attributable to 5,074,133 5,171,816 (1.9%) 4,977,056 2.0% Unitholders (S

  34. Slide 34: Portfolio Valuation

    Portfolio Valuation Valuation as at 31 Mar 2023 Valuation as at Property segment Local currency 31 Mar 2022 Capitalisation rate S$ million1 (S$ million)2 (million) Data Centres (Singapore) S$283.7 283.7 282.0 6.00% to 6.50% Hi-Tech Buildings S$1,510.3 1,510.3 1,415.0 5.25% to 6.75% Business Park Bui

  35. Slide 35: Strong Balance Sheet

    Strong Balance Sheet 31 Mar 2023 31 Dec 2022 DEBT CURRENCY PROFILE As at 31 March 2023 Total debt S$2,848.4 million S$2,854.6 million Weighted average 19.9% 3.7 years 3.1 years tenor of debt Aggregate leverage 37.4% 37.2% ratio1 Strong balance sheet to pursue growth opportunities  ‘BBB+’ rating wit

  36. Slide 36: Well Diversified Debt Maturity Profile

    Well Diversified Debt Maturity Profile DEBT MATURITY PROFILE As at 31 March 2023 29.3% 25.0% 21.0% 14.2% 835.6 538.4 710.7 6.1% 278.7 4.4% 175.0 125.0 125.0 60.0 FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 MTN Bank Loans Amounts in S$ million Weighted Average Tenor of Debt = 3.7 years 36

  37. Slide 37: Risk Management

    Risk Management 31 Mar 2023 31 Dec 2022 Fixed as a % of total debt 75.5% 74.3% Weighted average hedge tenor 3.5 years 3.8 years Weighted average all-in funding 3.5% 3.3% cost for the quarter Interest coverage ratio (“ICR”) 4.5 times 4.8 times for the quarter ICR for the trailing 12 months1 5.0 times

  38. Slide 38: Outlook and Strategy

    OUTLOOK AND Data Centres, 2601 West Broadway Road, Tempe STRATEGY

  39. Slide 39: Singapore Industrial Property Market

    Singapore Industrial Property Market DEMAND AND SUPPLY FOR MULTI-USER FACTORIES DEMAND AND SUPPLY FOR BUSINESS PARKS  Total stock for factory and business park space: 40.8 million sq m  Potential net new supply of 1.3 million sq m in 20231, of which • Multi-user factory space accounts for 0.2 mill

  40. Slide 40: Outlook

    Outlook Challenging operating environment in view of global uncertainties  2023 will be a challenging year with increased risk to global financial stability due to the banking crisis and geo-economic fragmentation. Increasing property operating expenses and borrowing costs continue to exert pressur

  41. Slide 41: Diversified and Resilient

    Diversified and Resilient  Anchored by large and diversified tenant base with low dependence Stable and on any single tenant or trade sector Resilient Portfolio  Focus on tenant retention to maintain a stable portfolio occupancy  Hedged borrowings of 75.5% and weighted average hedge tenor of Acti

  42. Slide 42: Evolving Portfolio Profile

    EVOLVING Hi-Tech Buildings, 1 & 1A Depot Close, Singapore PORTFOLIO PROFILE

  43. Slide 43: Attracting Higher Value Tenants

    Attracting Higher Value Tenants Hi-Tech Buildings and Data Centres Focused on higher-specification buildings with the introduction of Hi-Tech Buildings in FY13/14 and reclassification of Data Centres in FY20/21 as a standalone property segment (previously under Hi-Tech Buildings) Light Industrial Bu

  44. Slide 44: Lengthening Lease Expiry Profile

    Lengthening Lease Expiry Profile EXPIRING LEASES BY GROSS RENTAL INCOME EXPIRING LEASES BY GROSS RENTAL INCOME As at 30 June 2010 As at 31 March 2023 33.6% 27.5% 28.1% 20.1% 16.1% 17.3% 16.0% 13.5% 9.5% 9.3% 9.0% FY10/11 FY11/12 FY12/13 FY13/14 FY14/15 & FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 FY28/

  45. Slide 45: Increasing Proportion of Freehold Assets

    Increasing Proportion of Freehold Assets REMAINING YEARS TO EXPIRY ON UNDERLYING LAND LEASES1 (BY LAND AREA) 65.6% 57.1% 18.4% 17.8% 10.1% 12.3% 8.7% 3.5% 4.2% 2.2% 0.1% 0.0% 0 to 20 years >20 to 30 years >30 to 40 years >40 to 50 years More than 50 years Freehold As at 30 Jun 2010 As at 31 Mar 2023

  46. Slide 46: Reconfiguring Tenant Base

    Reconfiguring Tenant Base TENANT DIVERSIFICATION ACROSS TRADE SECTORS (BY GROSS RENTAL INCOME) As at 30 June 2010 As at 31 March 2023 46

  47. Slide 47: End of Presentation

    End of Presentation For enquiries, please contact Ms Melissa Tan, Director, Investor Relations, DID: (65) 6377 6113, Email: melissa.tanhl@mapletree.com.sg

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