Mapletree Industrial Trust · SGX:ME8U

Mapletree Industrial Trust — Investor Presentation (March 2019)

39 slides from Mapletree Industrial Trust's investor presentation, Mar 4, 2019

  1. Slide 1: Investor Presentation March 2019

    Investor Presentation March 2019

  2. Slide 2: Important Notice

    Important Notice This presentation shall be read in conjunction with Mapletree Industrial Trust’s (“MIT”) financial results for Third Quarter Financial Year 2018/2019 in the SGXNET announcement dated 22 January 2019. This presentation is for information only and does not constitute an offer or solic

  3. Slide 3: Contents

    Contents 1 Overview of Mapletree Industrial Trust 2 Portfolio Highlights 3 3QFY18/19 Financial Performance 4 Outlook and Strategy 3

  4. Slide 4: Overview of Mapletree Industrial Trust

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

  5. Slide 5: Overview of Mapletree Industrial Trust

    Overview of Mapletree Industrial Trust Mapletree Investments Pte Ltd Public & Inst MIPL Sponsor (“MIPL”) Unitholders 68.5% 31.5%1 Owns 31.5% of MIT1 Trustee Focused on (i) industrial real estate assets in Singapore, excluding Manager Investment properties primarily used for logistics mandate purpose

  6. Slide 6: Sustainable and Growing Returns

    Sustainable and Growing Returns Distributable Income DPU (S$ million) (cents) 70 3.07 3.20 3.00 3.00 3.01 2.95 2.85 2.832.83 2.88 2.92 2.88 2.79 2.82 2.81 2.73 2.67 2.65 58.3 2.80 60 2.60 56.9 56.7 2.43 2.47 2.512.512.51 54.0 53.5 55.5 2.37 52.9 2.32 51.5 50.6 51.1 51.8 2.22 2.26 2.29 50.350.4 2.40

  7. Slide 7: Healthy Returns since IPO

    Healthy Returns since IPO COMPARATIVE TRADING PERFORMANCE SINCE IPO¹ 250 MIT UNIT PRICE +116.1% 200 FTSE ST REITS INDEX 150 +23.6% 100 FTSE STRAITS TIMES INDEX 2.3% 50 0 Oct 10 Oct 11 Oct 12 Oct 13 Oct 14 Oct 15 Oct 16 Oct 17 Oct 18 Rebased MIT Unit Price Rebased FTSE ST REITS Index Rebased FTSE Str

  8. Slide 8: 101 Properties Across 5 Property Segments

    101 Properties Across 5 Property Segments FLATTED FACTORIES STACK-UP/RAMP-UP BUILDINGS High-rise multi-tenanted industrial buildings with basic common facilities used for light Stacked-up factory space with vehicular manufacturing activities. access to upper floors. Multi-tenanted space suitable for

  9. Slide 9: Properties in Singapore

    87 Properties in Singapore1 Total WALE Weighted Average Unexpired Occupancy NLA1 (By GRI)2 Lease Term of Underlying Land2 Rate3 16.4m sq ft 3.6 years 37.6 years 87.7% Hi-Tech Buildings Flatted Factories Business Park Buildings Stack-up/Ramp-up Buildings Light Industrial Buildings 1 Included 18 Tai S

  10. Slide 10: Data Centres Across States in United States

    14 Data Centres Across 9 States in United States1 Total WALE Weighted Average Unexpired Occupancy NLA2 (By GRI)3 Lease Term of Underlying Land Rate5 2.3m sq ft 5.3 years Freehold4 97.4% CALIFORNIA 1 7337 Trade Street, San Diego GEORGIA 2 180 Peachtree, Atlanta 3 1001 Windward Concourse, Alpharetta 4

  11. Slide 11: Portfolio Growth since IPO

    Portfolio Growth since IPO S$4.32 S$4.72 billion3 3 Asset Enhancement billion FY18/19 Initiatives (“AEI”) FY17/18 S$3.75 4 Build-to-Suit (“BTS”) S$3.56 billion Projects S$3.42 billion FY16/17 billion 5 Acquisitions S$3.17 FY14/15 FY15/16 billion S$2.88 FY13/14 S$2.70 billion billion FY12/13 Jun 2017

  12. Slide 12: Portfolio Highlights

    PORTFOLIO HIGHLIGHTS Flatted Factory, Toa Payoh North 2

  13. Slide 13: Portfolio Overview

    Portfolio Overview Singapore Portfolio US Portfolio Overall Number of properties 86 14 100 NLA (million sq ft) 16.0 2.31 18.31 Average passing rental S$2.04 US$2.04 rate ($ psf/mth) 97.4% 97.4% 2 86.2% 87.7% 86.7% 88.2% 1 Excludes the parking decks (150 Carnegie Way and 171 Carnegie Way) at 180 Peac

  14. Slide 14: Lease Expiry Profile

    Lease Expiry Profile1 EXPIRING LEASES BY GROSS RENTAL INCOME As at 31 December 2018 WALE by Gross Rental Income (years) Singapore Portfolio 3.6 34.0% US Portfolio 5.3 Overall 1 3.7 25.0% 20.8% 17.9% 2.3% FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 & Beyond Flatted Factories Hi-Tech Buildings US Data Cen

  15. Slide 15: Large and Diversified Tenant Base

    Large and Diversified Tenant Base TOP 10 TENANTS BY GROSS RENTAL INCOME1 As at 31 December 2018 9.9%  Over 2,000 tenants  Largest tenant contributes 9.9% of Portfolio’s Gross Rental Income  Top 10 tenants forms about 26.3% of Portfolio’s Gross Rental Income 3.4% 2.9% 2.8% 1.3% 1.3% 1.3% 1.3% 1.2%

  16. Slide 16: Tenant Diversification Across Trade Sectors

    Tenant Diversification Across Trade Sectors1 No single trade sector accounted >22% of Portfolio’s Gross Rental Income By Gross Rental Income As at 31 Dec 2018 1 Includes MIT’s 40% interest of the joint venture with Mapletree Investments Pte Ltd in a portfolio of 14 data centres in the United States

  17. Slide 17: Singapore Portfolio Performance

    Singapore Portfolio Performance Gross Rental Rate Occupancy S$ psf/mth 100% $2.50 95.2% 95.4% 95.5% 94.3% 94.5% 95.1% 95.0% 94.9% 95.0% 93.9% 93.5% 93.8% 94.7% 94.6% 93.2% 92.5% 93.0% 92.5% 93.1% 92.6% 92.3% 92.1% 91.3% 90.7% 91.5% 90.8% 90.2% 90.4% 90.1% 89.6% 90% 87.8% 87.7% 86.2% 80% $2.01 $1.97

  18. Slide 18: Segmental Occupancy Levels (Singapore)

    Segmental Occupancy Levels (Singapore) 97.5% 97.1% 90.2% 90.1% 88.9% 85.9% 86.4% 84.4% 86.2% 87.7% 79.6% 81.5% Flatted Factories Hi-Tech Buildings Business Park Stack-Up/Ramp-Up Light Industrial Singapore Buildings Buildings Buildings Portfolio Left Bar Right Bar (2QFY18/19) (3QFY18/19) 18

  19. Slide 19: Rental Revisions (Singapore)

    Rental Revisions (Singapore) GROSS RENTAL RATE (S$ PSF/MTH)1, 2 For Period 3QFY18/19 Before Renewal $4.04 $3.78 After Renewal New Leases $3.13 $3.72 $3.24 $2.70 Passing Rent $2.33 $2.26 $2.01 $1.98 $1.69 $1.38 $1.33 $1.79 $1.23 $1.30 Flatted Factories Hi-Tech Buildings Business Park Buildings Stack-

  20. Slide 20: Tenant Retention (Singapore)

    Tenant Retention (Singapore) LONG STAYING TENANTS RETENTION RATE FOR 3QFY18/19 Up to 1 yr >10 yrs 13.0% 24.8% >1 to 2 yrs 76.5% 76.7% 7.8% 71.4% 73.3% 4 yrs or 57.5% less More than 34.2% > 2 to 3 yrs 4 yrs 7.8% 65.8% >3 to 4 yrs 5.6% N.A. >4 to 5 yrs Flatted Hi-Tech Business Stack-Up / Light Portfol

  21. Slide 21: Acquisition of 18 Tai Seng

    Acquisition of 18 Tai Seng Successfully completed the acquisition of 18 Tai Seng on 1 Feb 2019, a unique nine-storey mixed-use industrial development with Business 2 industrial, office and retail spaces Address 18 Tai Seng Street, Singapore 539775 Agreed property value S$268.3 million Total acquisit

  22. Slide 22: Acquisition of 18 Tai Seng

    Acquisition of 18 Tai Seng At the Centre of Paya Lebar iPark: Singapore’s Modern Industrial Park Short drive from mature housing estates like Hougang, Bedok and Toa Payoh and Central Business District  Prominent frontage along Upper Paya Lebar Road  Easily accessible via major expressways (Kallang

  23. Slide 23: Financing and Pro Forma Impact of Acquisition of 18 Tai Seng

    Financing and Pro Forma Impact of Acquisition of 18 Tai Seng  Raised gross proceeds of ~S$201.0 million1 from the private placement (upsize option of S$25.0 million exercised) on 12 Feb 2019, which was 2.2 times covered  Total acquisition outlay of S$271.0 million for 18 Tai Seng funded by a combi

  24. Slide 24: Upgrading of 7 Tai Seng Drive

    Upgrading of 7 Tai Seng Drive Estimated Project Cost S$95 million GFA 256,600 sq ft Completion of Upgrading 2H2019 Artist’s impression of 7 Tai Seng Drive after upgrading works  Acquisition of a seven-storey property at a purchase consideration of S$68.0 million and upgrading the property into a da

  25. Slide 25: Reputable Sponsor with Aligned Interest

    Reputable Sponsor with Aligned Interest About the Sponsor, Mapletree Investments  Leading real estate development, investment and capital and property management company  Able to support growth of MIT by providing development capabilities  Right of first refusal to MIT over future sale of (i) ind

  26. Slide 26: 3QFY18/19 Financial Performance

    3QFY18/19 FINANCIAL PERFORMANCE Business Park Buildings, The Strategy and The Synergy

  27. Slide 27: 3QFY18/19 Results Highlights

    3QFY18/19 Results Highlights  Growth bolstered by contributions from development projects in Singapore and 40% interest in portfolio of 14 data centres in United States • 3QFY18/19 Distributable Income: S$58.3 million ( 9.0% y-o-y) • 3QFY18/19 DPU: 3.07 cents ( 6.6% y-o-y)  Investment update • Ann

  28. Slide 28: Statement of Total Returns (Year-on-Year)

    Statement of Total Returns (Year-on-Year) 3QFY18/19 3QFY17/18  / () (S$’000) (S$’000) Gross revenue 93,571 91,465 2.3% Property operating expenses (21,696) (20,610) 5.3% Net property income 71,875 70,855 1.4% Borrowing costs (10,058) (8,407) 19.6% Trust expenses (8,383) (7,850) 6.8% Share of profi

  29. Slide 29: Statement of Total Returns (Year-on-Year)

    Statement of Total Returns (Year-on-Year) YTD FY18/19 YTD FY17/18  / () (S$’000) (S$’000) Gross revenue 277,279 272,839 1.6% Property operating expenses (65,359) (63,115) 3.6% Net property income 211,920 209,724 1.0% Borrowing costs (29,729) (24,786) 19.9% Trust expenses (24,808) (23,296) 6.5% Sha

  30. Slide 30: Statement of Total Returns (Qtr-on-Qtr)

    Statement of Total Returns (Qtr-on-Qtr) 3QFY18/19 2QFY18/19  / () (S$’000) (S$’000) Gross revenue 93,571 92,221 1.5% Property operating expenses (21,696) (21,635) 0.3% Net property income 71,875 70,586 1.8% Borrowing costs (10,058) (10,313) (2.5%) Trust expenses (8,383) (8,577) (2.3%) Share of pro

  31. Slide 31: Balance Sheet

    Balance Sheet 31 Dec 2018 30 Sep 2018  / () Total assets (S$’000) 4,266,058 4,251,663 0.3% Total liabilities (S$’000) 1,456,205 1,462,714 (0.4%) Net assets attributable to Unitholders (S$’000) 2,809,853 2,788,949 0.7% Net asset value per Unit (S$)1 1.48 1.48 - 1 Net tangible asset per unit was the

  32. Slide 32: Strong Balance Sheet

    Strong Balance Sheet 31 Dec 2018 30 Sep 2018 Strong balance sheet to pursue growth opportunities Total debt S$1,320.1 million S$1,333.5 million (MIT Group)  ‘BBB+’ rating with Stable Weighted average Outlook by Fitch Ratings 3.1 years 2.9 years tenor of debt Aggregate 34.7% 35.1%  100% of loans un

  33. Slide 33: Well Diversified Debt Maturity Profile

    Well Diversified Debt Maturity Profile DEBT MATURITY PROFILE As at 31 December 2018 Weighted Average Tenor of Debt = 3.1 years 18.9% 16.6% 14.6% 14.0% 13.1% 13.3% 9.5% 205.2 125.0 219.1 192.9 172.9 175.0 125.0 45.0 60.0 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 MTN Bank Borrowi

  34. Slide 34: Risk Management

    Risk Management 31 Dec 2018 30 Sep 2018  S$175 million of interest rate hedges are Fixed as a % of due to expire in 75.3% 78.3% total debt 4QFY18/19 Weighted average 2.3 years 2.4 years hedge tenor  100% capital hedge: 3QFY18/19 2QFY18/19 US$ investment in joint venture matched with Weighted avera

  35. Slide 35: Outlook and Strategy

    OUTLOOK AND STRATEGY Hi-Tech Buildings, build-to-suit project for HP

  36. Slide 36: 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 space: 38.1 million sq m  Potential net new supply of 1.3 million sq m in 2019, of which • Multi-user factory space accounts for 0.3 million sq m • Business

  37. Slide 37: Outlook

    Outlook Singapore  Challenging operating environment • Singapore economy grew by 1.9% y-o-y in the quarter ended 31 Dec 2018, easing from 2.4% growth in preceding quarter¹ • Ongoing trade tensions weigh on business sentiments and pace of global economic expansion • Continued supply of competing ind

  38. Slide 38: Resilient and Poised for Growth

    Resilient and Poised for Growth  Only 2.3% of the Overall  Aggregate leverage of  Successfully completed Portfolio’s leases (by 34.7% as at 31 Dec the acquisition of gross rental income) 2018 provides financial 18 Tai Seng due for renewal in flexibility to pursue FY18/19 investment opportunities

  39. Slide 39: End of Presentation

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

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