Mapletree Logistics Trust · SGX:M44U
Mapletree Logistics Trust — Q4 2009 Earnings Presentation
58 slides from Mapletree Logistics Trust's earnings presentation, Jan 21, 2010
Slide 1: Results for the Fourth Quarter ended 31 December 2009
Results for the Fourth Quarter ended 31 December 2009 21 January 2010 0 0
Slide 2: Disclaimer
Disclaimer This Presentation is focused on comparing results for the three months ended 31 December 2009 versus results achieved in the three months ended 31 December 2008 and versus results achieved in the previous quarter ended 30 September 2009. This shall be read in conjunction with Mapletree Lo
Slide 3: Agenda
Agenda Key highlights Capital management Resilient portfolio Outlook Summary Appendix 2 2
Slide 4: Key highlights
Key highlights 3 3
Slide 5: Key Highlights
Key Highlights Steady FY 2009 and 4Q 2009 results Amount Distributable rises by 21% in FY 2009 Improvement in full year results on the back of 12% increase in net property income (“NPI”) and one-time gain on extension of lease of an existing property. 4Q 2009 DPU of 1.59 cents is 7% higher that 3Q 2
Slide 6: Key highlights (cont’d)
Key highlights (cont’d) No balance sheet risk Aggregate leverage as at 31 December 2009 is below 40% and lower than our medium-term range of 40%-45% Strong interest cover ratio of about 5.0x Unsecured debt funding provides MapletreeLog with significant financial flexibility “Yield + Growth” strategy
Slide 7: Key highlights (cont’d)
Key highlights (cont’d) Strong and committed Sponsor Continues to incubate development pipelines Approximately S$300 million of Sponsor’s development pipeline completed or nearing completion The Manager is committed to maintain 100% distribution payout 6 6
Slide 8: Statement of total return – 4Q 2009 vs 3Q 2009
Statement of total return – 4Q 2009 vs 3Q 2009 Q-o-Q IN S$ THOUSANDS 4Q 2009 3Q 2009 Variance GROSS REVENUE 50,785 50,767 0.0% PROPERTY EXPENSES 5,844 6,707 -12.9% NET PROPERTY INCOME 44,941 44,060 2.0% AMOUNT DISTRIBUTABLE 31,826 28,793 10.5% AVAILABLE DPU (CENTS) 1.59 1.48 7.4% PROPERTY EXPENSES /
Slide 9: Statement of total return – FY 2009 vs FY 2008
Statement of total return – FY 2009 vs FY 2008 IN S$ THOUSANDS FY 2009 FY 2008 Variance GROSS REVENUE 206,786 184,922 11.8% PROPERTY EXPENSES 25,949 23,929 8.4% NET PROPERTY INCOME 180,837 160,993 12.3% AMOUNT DISTRIBUTABLE 117,881 97,413 21.0% AVAILABLE DPU (CENTS) 6.02 7.24 -16.9% PROPERTY EXPENSE
Slide 10: Scorecard since IPO (Amount Distributable)
Scorecard since IPO (Amount Distributable) Asset Value 2 $422m $462m $715m $1.0b $1.1b $1.4b $1.5b $2.1b $2.4b $2.4b $2.5b $2.5b $2.7b $2.9b $3.0b $2.9b $2.9b $2.9b (S$) Lettable Area 0.8 0.8 0.9 1.1 1.2 1.4 1.5 1.6 1.6 1.8 1.9 2.0 2.1 2.1 2.1 2.1 2.1 2.2 (mil sqm) 3 90 31.7 33.0 28.3 28.6 28.7 28.8
Slide 11: Scorecard since IPO (DPU)
Scorecard since IPO (DPU) Asset Value 3 $422m $462m $715m $1.0b $1.1b $1.4b $1.5b $2.1b $2.4b $2.4b $2.5b $2.5b $2.7b $2.9b $3.0b $2.9b $2.9b $2.9b (S$) Lettable Area 0.8 0.8 0.9 1.1 1.2 1.4 1.5 1.6 1.6 1.8 1.9 2.0 2.1 2.1 2.1 2.1 2.1 2.2 (mil sqm) 90 2.04 2.10 1.90 80 1.84 1.78 1.90 1.72 4 70 Numbe
Slide 12: Attractive yield vs other investments
Attractive yield vs other investments 1 8.0% 7.7% 7.0% Trading at 8% discount to NAV 5 6.0% 4.8% yield spread over 5.0% 10-Year Bond Yield % 4.0% 3.0% 2 4 2.6% 2.5% 2.0% 2 1.5% 1.0% 3 0.5% 0.0% MapletreeLog FY 10-Year Singapore 5-Year Singapore Bank 12-month Fixed CPF Ordinary 2009 Yield Government
Slide 13: Capital management
Capital management 12 12
Slide 14: Capital management
Capital management Balance Sheet 30 Sep 2009 31 Dec 2009 S$’000 S$’000 Total assets 3,034,927 3,000,194 Including Investment Properties 2,896,273 2,933,250 Revaluation Gains - (16,539) Total liabilities 1,330,930 1 1,246,845 2 Net assets attributable to unitholders 1,703,997 1,753,349 NAV per Unit S
Slide 15: Over 80% of total debt is long term
Over 80% of total debt is long term 100% 20% 20% 22% 19% 24% 80% 60% 40% 80% 80% 78% 81% 76% 20% 0% Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Total Debt4 1.2bn 1.2bn 1.2bn 1.2bn 1.1bn Gearing 38.5% 39.0%1 38.7%2 38.9%3 36.7% 1: Excluding approximately S$40m cash earmarked for debt-financing - 38.3% Long Term 2:
Slide 16: 19% or S$204 million of debt due in FY 2010
19% or S$204 million of debt due in FY 2010 Actual Debt as at 31 December 2009 Actual Debt as at 30 September 2009 S$m S$m 80% Average Duration 80% Average Duration = 1.9 years = 2.0 years 70% 4% 70% 4% 60% 60% 50% 50% 44% 40% 40% 41% 30% 30% 0% 20% 20% 2% 1% 6% 2% 22% 4% 10% 5% 10% 21% 3% 5% 1% 2%
Slide 17: Natural hedge our preferred forex hedging policy
Natural hedge our preferred forex hedging policy Local currency loans set up natural hedge against currency fluctuations Gearing level – by country (as at 31 December 2009) 100% 2% 18% 80% 58% 55% 60% 89% 98% 100% 40% 82% 20% 42% 45% 11% 0% Singapore China Hong Kong Malaysia Japan Korea Equity % 89%
Slide 18: Interest rate management – overall portfolio
Interest rate management – overall portfolio (% terms) 81 Properties asHedging at 30Profile September 2009 100% 80% 34% 39% 57% 69% 60% 78% 96% 40% 66% 61% 20% 43% 31% 22% 0% 4% 2009 2010 2011 2012 2013 2014 Weighted average no. of years of hedged rates = 2.1 1 82 Properties as at 31 December 2009 1
Slide 19: Simulation 1: Impact of base rate increase
Simulation 1: Impact of any potential increase in base interest rates on average interest cost Every potential 0.25% increase in base rates1, may result in around 0.08% change in average interest cost Average Interest Cost (all- Change in Base Rate Change in) Current 2.58% - + 0.25% 2.66% 0.08% + 0.
Slide 20: Prudent capital management
Prudent capital management Have sufficient resources to meet all 2010 debt obligations when they become due Comfortable gearing ratio – 36.7% in Dec 09, which is lower than our medium-term target range of 40%-45% Interest cover ratio maintained at about 5.0x Hedges on borrowings increased to approxi
Slide 21: Resilient portfolio
Resilient portfolio 20 20
Slide 22: Resilient portfolio
Resilient portfolio Occupancy rate improves to 98.1% in Dec 09 vs 97.1% in Sep 09 Stable tenant base Approximately 95% of leases due for renewal in 2009 have been renewed and/or replaced1 Balance 5% expected to be leased soon Tenant retention improves to approximately 80% Stability from long leases
Slide 23: Resilient portfolio (cont’d)
Resilient portfolio (cont’d) Arrears ratio steady at around 1% of annualised gross revenue Enquiry levels for space improving across countries Diversification in terms of geography, tenants and end-users 22 22
Slide 24: Successful lease renewals in FY 2009
Successful lease renewals in FY 2009 Around 95% of leases1 expiring in 2009 have been renewed/replaced to date (19.6% of overall portfolio revenue) Average reversion rate flat2 due to priority in retaining tenants Balance space left to be renewed/replaced is approx 13,000 sqm (0.6% of portfolio NLA
Slide 25: Successful lease renewals in FY 2009 (cont’d)
Successful lease renewals in FY 2009 (cont’d) 100% 5% 5% 90% % renewed to date 80% 70% 60% 50% 95% 95% 40% 30% 20% 10% 0% By Gross Revenue By Lettable Area Renewed to date Balance to be renewed 24 24
Slide 26: Portfolio value remains steady
Portfolio value remains steady Revaluation loss of S$16.5 million or less than 1% in FY 2009 Breakdown by Countries Revaluation gain/loss (in S$ '000) 1 Singapore -1,596 Hong Kong 2,245 2 Japan -17,628 China 2,602 Malaysia 38 2 South Korea -2,201 Total -16,539 1: Drop in market value in Singapore is
Slide 27: MapletreeLog’s warehouse space
MapletreeLog’s warehouse space High occupancy levels sustained MLog MLog 81 properties as at 82 properties as at 30 Sep 2009 31 Dec 2009 Weighted Average 97.1% 98.1% Occupancy Rate 100.0% 100.0% 100.0% 99.6% 98.9% 98.1% 98.0% 96.0% 95.7% 94.0% 93.4% URA Avg: 92% 92.0% 90.0% 88.0% Singapore Hong Japa
Slide 28: Diversified tenant mix provides portfolio stability
Diversified tenant mix provides portfolio stability 235 tenants in portfolio, no single tenant accounts for >5% of total revenue Top 10 tenants by gross revenue 81 properties as at 30 September 2009 82 properties as at 31 December 2009 5% 4.7% 3.9% Multinational logistics operators 4% 3.5% 3.5% Sing
Slide 29: Professional 3PLs face leasing stickiness
Professional 3PLs face leasing stickiness Gross revenue contribution by trade sector Gross revenue contribution by trade sector (81 properties as at 30 Sep 2009) (82 properties as at 31 Dec 2009) Total 3PL: 57.2% Total 3PL: 57.5% Oil & Chemical Oil & FTZ 3PL Logistics Chemical FTZ 3PL 5.8% 3.2% Logi
Slide 30: Exposure to stable end-users
Exposure to stable end-users Tenants more reliant on inland and sea channels Gross revenue contribution by Stable gross revenue contribution by tenant distribution channel1 (as at 31 Dec 2009) end-user industry (as at 31 Dec 2009) Air Utilities & Telecommunication 13% Services Chemicals 5% 1% Consum
Slide 31: Single-tenanted vs multi-tenanted buildings
Single-tenanted vs multi-tenanted buildings (by gross revenue) Single-tenanted vs multi-tenanted by gross revenue (as at 31 Dec 09) Multi- tenanted 41% Single- tenanted 59% 30 30 30
Slide 32: Long leases provide rental baseload
Long leases provide rental baseload Weighted average lease term to expiry: ~5 years Lease Expiry Profile by Gross Revenue 40% 36.6% 36.6% 30% 20% 17.9% 16.7% 16.7% 15.7% 12.3% 12.6% 10% 8.9% 7.5% 3.4% 3.3% 0% Expiring in Expiring in Expiring in Expiring in Expiring in Expiring after 1 2010 2011 2012
Slide 33: Bulk of leases expiring only beyond 2014
Bulk of leases expiring only beyond 2014 Lease Expiry Profile by Gross Revenue (by country) 17.0% 18% Singapore Hong Kong China Malaysia Japan S. Korea 14.7% 16% 14% As % of total portfolio revenue 12% 9.9% 9.2% 10% 7.5% 8% 6.2% 5.7% 6% 4.4% 3.2% 4% 2.8% 2.2% 2.1% 2.0% 1.6% 1.3% 1.3% 1.1% 2% 0.7% 0.
Slide 34: Long land leases provide stability to the portfolio
Long land leases provide stability to the portfolio Weighted average of unexpired lease term of underlying land: approx 153 yrs1 Remaining Years to Expiry of Underlying Land Lease 50% 42.1% 41.3% 40% % of Total Lettable Area 30% 27.8% 26.7% 20% 12.2% 12.5% 11.4% 9.7% 10% 7.2% 7.1% 0.9% 0.9% 0% 0 - 2
Slide 35: Outlook
Outlook 34 34
Slide 36: MapletreeLog’s strategy for 2010
MapletreeLog’s strategy for 2010 Challenging but improving environment some easing of pressure on warehousing rentals and occupancy Response Yield protection & tenant retention are our key priorities Growth via accretive acquisitions “Yield + Growth” strategy intact - focusing on yield preservation
Slide 37: MapletreeLog’s strategy for 2010
MapletreeLog’s strategy for 2010 Challenging but improving environment some easing of pressure on warehousing rentals and occupancy Response Yield protection & tenant retention are our key priorities Look for growth via accretive acquisitions 2 Optimise yield from existing portfolio Active leasing a
Slide 38: Outlook for 2010 – improving but still challenging
Outlook for 2010 – improving but still challenging Action plan Execution Resilient cash flows –full effect of recently announced acquisitions to improve topline 1 Growing top line Tenant stickiness, high renewal rates sustained ~80% in 4Q 091 Stable rentals: 59% from single-tenanted buildings with b
Slide 39: Summary
Summary 38 38
Slide 40: In Summary
In Summary Resilient portfolio will continue to provide stability to revenue & DPU Continue to focus on yield optimisation and maintaining occupancy Recently announced acquisitions to add to revenue and DPU in 2010 Explore accretive acquisitions Experienced team with proven track record Maintain rig
Slide 41: Strength in adversity
Strength in adversity Amount distributable: S$118 million in FY 2009; 21% higher than in FY 2008 S$32 million in 4Q 2009; 12% higher than in 4Q 2008 4Q 2009 DPU is 7% higher than 3Q 2009 DPU 1.59 cents Expect NPI and amount distributable in FY 2010 to be better than FY 2009 40 40
Slide 42: Recap
Recap IN S$ THOUSANDS FY 2009 FY 2008 Variance GROSS REVENUE 206,786 184,922 11.8% PROPERTY EXPENSES 25,949 23,929 8.4% NET PROPERTY INCOME 180,837 160,993 12.3% AMOUNT DISTRIBUTABLE 117,881 97,413 21.0% AVAILABLE DPU (CENTS) 6.02 7.24 -16.9% PROPERTY EXPENSES / 12.5% 12.9% -0.4% GROSS REVENUE NPI /
Slide 43: Thank you
Thank you 42 42
Slide 44: Appendix
Appendix 43 43
Slide 45: Distribution details
Distribution details Counter Name Distribution Period Distribution per unit (S$ Cents) MapletreeLog 4Q 2009 1.59 Distribution Time Table Notice of book closure date 21 January 2010 Last day of trading on “cum” basis 26 January 2010, 5:00pm Ex-date 27 January 2010, 9:00am Books closure date 29 Januar
Slide 46: Geographical Diversification
Geographical Diversification Country Allocation - By NPI – FY 2008 vs FY 2009 South South Japan Japan Korea Korea 13% 15% 1% 1% Malaysia 5% Malaysia 5% China 7% China 5% Singapore Singapore 50% 52% Hong Hong Kong Kong 22% FY 2008 FY 2009 24% Note: FY 2008 started with 70 properties and ended with 81
Slide 47: Geographical Diversification
Geographical Diversification Country Allocation - By NPI – 3Q 2009 vs 4Q 2009 South South Japan Korea Japan Korea 15% 1% 16% 1% Malaysia Malaysia 5% 5% China China 7% 8% Singapore Singapore 48% 51% Hong Kong 21% Hong Kong 22% 3Q 2009 4Q 2009 Note : 4Q 2009 started with 81 properties and ended with 8
Slide 48: Single-tenanted vs multi-tenanted buildings (by gross revenue)
Single-tenanted vs multi-tenanted buildings (by gross revenue) Country split of SUA Hong Kong S. Korea 1 2% 1% China 2% Single-tenanted vs multi-tenanted Malaysia by gross revenue (as at 31 Dec 09) 8% Japan Multi- 27% tenanted Singapore 60% 41% Single- tenanted 1 59% Country split of MTB Malaysia 1%
Slide 49: Single-tenanted vs multi-tenanted buildings (by no. of assets and NLA)
Single-tenanted vs multi-tenanted buildings (by no. of assets and NLA) By no. of assets By NLA Multi- Single- Multi- Single- tenanted, tenanted, tenanted, tenanted, 16 66 52% 48% 48 Note: As at 31 Dec 09 48 48
Slide 50: Singapore warehouse oversupply exaggerated
Singapore warehouse oversupply exaggerated Over 69% of upcoming supply in Singapore has already been pre-leased or is being built by end-users balance amount (191k sqm) is not a big threat No new spaces coming up in Hong Kong in the next 2 years Upcoming supply of warehouses in Upcoming supply of wa
Slide 51: Singapore warehouse occupancy trend
Singapore warehouse occupancy trend Existing Stock Upcoming Supply Occupancy Current Financial Crisis, Jul 07 8,000 100% Bali Bombing, Oct 05 Asian Financial Crisis, 7,000 Jul 97 SARS, 95% Dot Com Burst, Nov 02 Mar 00 6,000 91.8% 90% Occupancy ('000 sqm) 5,000 85% 4,000 80% 3,000 2,000 75% Q1 94 Q3
Slide 52: Warehouse sector is less volatile
Warehouse sector is less volatile Capital values Rental values Multiple User Warehouse (Average) Office (Average) Retail (Average) Multiple User Warehouse (Average) Office (Average) Retail (Average) 100 Capital values hit bottom: Capital values peaked: 14,000 Rentals hit bottom: 1Q 2004 Rentals peak
Slide 53: Lack of new supply in HK is supportive to revenues
Lack of new supply in HK is supportive to revenues Warehouse Supply Occupancy Current Financial Crisis, Jul 07 7,000 100% Dot Com Burst, Mar 00 98% 6,000 Hand over of HK, Jul 97 Asian Financial Crisis, Jul 97 HK Influenza, Dec 97 96% 5,000 No New 94% Occupancy 4,000 Bali Bombing, Oct 05 Supply ('000
Slide 54: Steady increase in Asia’s share of the global logistics market
Steady increase in Asia’s share of the global logistics market 1200 43% Asia-Pacific Rest of the World Asia-Pacific as % of Global Logistics 42% 41% 1000 40% Share of Asia-Pacific in global logistics 39% Logistics Market Value US$ billion 38% 800 37% 36% 35% 35% 600 34% 33% 32% 400 31% 31% 30% 29% 2
Slide 55: Higher growth compared to the rest of the world
…due to higher growth compared to the rest of the world Asia-Pacific Logistics Market Rest of the World Logistics Market Logistics Market Value US$ billion 800 700 CAGR = 5.3% 609 600 532 CAGR = 9.7% 500 432 400 272 300 200 100 0 2007 2012F 2007 2012F 54 Source: Datamonitor, December 2008 54
Slide 56: MIPL’s commitment in development projects
MIPL’s commitment in development projects Approximately S$300m completed or nearing completion GFA No Country Project name Status (sqm) Mapletree Yangshan Bonded Logistics Park 1 China 46,000 Completed/leasing (Shanghai) 2 China Mapletree Wuxi Logistics Park (Wuxi) 45,400 Completed/leasing Mapletree
Slide 57: Important notice
Important notice The information contained in this presentation is for information purposes only and does not constitute an offer to sell or any solicitation of an offer or invitation to purchase or subscribe for units in Mapletree Logistics Trust (“MLog”, and units in MLog, “Units”) in Singapore or
Slide 58: Thank you
Thank you 57 57
Mapletree Logistics Trust — Q4 2009 Earnings Presentation on 6ix