Mapletree Pan Asia Commercial Trust · SGX:N2IU
Mapletree Pan Asia Commercial Trust — FY2022/23 Earnings Presentation
71 slides from Mapletree Pan Asia Commercial Trust's earnings presentation, Apr 27, 2023
Slide 1: Mapletree Pan Asia Commercial Trust 4Q & FY22/23 Financial Results
Mapletree Pan Asia Commercial Trust 4Q & FY22/23 Financial Results 27 April 2023
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 20 ▪ Commitment to Sustainability Page 39 ▪ Outlook Page 43 ▪ Appendix 1: Market Information Page 48 ▪ Appendix 2: Asset Information Page 66 3
Slide 4: Key Highlights
Key Highlights VivoCity, SG
Slide 5: Key Highlights
Key Highlights FY22/23 DPU Assets Under Management (“AUM”) 9.611 Singapore cents S$16.6 billion2 Up 0.8% year-on-year (“yoy”) 18 commercial properties across five key gateway markets of Asia NAV per Unit Portfolio Committed Occupancy S$1.76 95.4 % Up 1.1% as compared Steady occupancy level on the ba
Slide 6: Key Highlights (cont’d)
Key Highlights (cont’d) Financial Performance Portfolio Performance ▪ FY22/23 gross revenue and net property income ▪ Core assets continued to provide steady income stream, (“NPI”) up 65.4% and 62.6% yoy to accounting for 54% of the total contribution to NPI S$826.2 million and S$631.9 million respe
Slide 7: Financial Performance
Financial Performance Mapletree Business City, SG
Slide 8: 4Q FY22/23 Financial Performance
4Q FY22/23 Financial Performance Boosted by full quarter contribution from properties acquired through the merger and increased contribution from all Singapore properties; positive impact offset by higher finance costs S$’000 unless otherwise stated 4Q FY22/23 4Q FY21/22 Variance Gross Revenue 233,2
Slide 9: FY22/23 Financial Performance
FY22/23 Financial Performance Higher utility and finance costs cushioned by better performance of core assets, VivoCity and MBC; FY22/23 DPU totalled 9.61 cents, up 6.1% yoy excluding retained cash released in FY21/22 S$’000 unless otherwise stated FY22/23 FY21/22 Variance Gross Revenue 826,1851 499
Slide 10: FY22/23 Segmental Results
FY22/23 Segmental Results Singapore assets recorded S$33.0 million higher NPI, which more than offset increase in utility 33.0 expenses and cost of SGD borrowings Contribution to Gross Revenue1 Contribution to NPI1 67.1% 64.2% By Country By Country 8.32 65% 66% 834.5 68.12 18% 638.1 6.22 17% S$4
Slide 11: Portfolio Valuation
Portfolio Valuation Singapore portfolio’s valuation grew slightly compared to a year ago mainly driven by VivoCity, with constant capitalisation rates across all properties Valuation (S$) S$ mil Variance 31 Mar 2023 31 Mar 20231 31 Mar 20221 S$ mil % Per Sq Ft NLA (S$) Cap Rate (%)2 VivoCity 3,232.0
Slide 12: Portfolio Valuation (cont’d)
Portfolio Valuation (cont’d) Total portfolio property valuation dampened by overseas properties despite constant capitalisation rates Mostly due to the impact of weaker foreign currencies against the Singapore dollar Valuation Valuation Variance Variance As at 31 Mar 2023 (Local currency mil) (S$ mi
Slide 13: Financial Position
Financial Position NAV per Unit up yoy to S$1.76 mainly due to higher investment properties resulting from the merger As at As at S$’000 unless otherwise stated 31 March 2023 31 March 2022 Investment Properties 16,321,443 8,821,000 Investment in Joint Venture1 119,943 - Other Assets 387,434 163,523
Slide 14: Key Financial Indicators
Key Financial Indicators Issued S$150.0 million fixed rate senior green notes to broaden funding pool; maintained sound balance sheet despite rising interest rate environment As at As at As at 31 March 2023 31 December 2022 31 March 2022 Gross Debt Outstanding S$6,940.8 mil1 S$6,865.6 mil1 S$3,014.0
Slide 15: Debt Profile (as at March 2023)
Debt Profile (as at 31 March 2023) Obtained in aggregate over S$1.4 billion of committed bank facilities post-merger to ensure financial flexibility and liquidity Healthy capital structure & liquidity Well-distributed debt maturity profile Bonds and Notes Total Gross Debt 1,5091 1,455 1,4511 Gross D
Slide 16: Interest Rate and Forex Management
Interest Rate and Forex Management (as at 31 March 2023) Prudent capital management to mitigate impact of fluctuating interest and foreign currency exchange rates ~75% of total debt hedged or fixed ~93% of Distributable Income Derived from or Hedged into SGD Unhedged 7% Floating 25% As a result, eve
Slide 17: FY22/23 – Performance In A Glance
FY22/23 – Performance In A Glance Firmly committed to delivering steady results despite macro challenges and global economic turbulence As at or for As at or for Key Indicators Financial Year ended Financial Year ended 31 March 2022 31 March 2023 Gross Revenue (S$ million) 499.5 65.4% 826.2 NPI (S$
Slide 18: MPACT Unit Price Performance
MPACT Unit Price Performance Long-term unit price performance continued to outpace broader market Relative Price Performance from Listing Date of 27 April 2011 to 31 March 2023 300% Unit Price on 250% 31 March 2023 S$1.80 Unit Price at MPACT +104.5% 200% IPO S$0.88 150% STI REIT +10.6% STI RE +4.0%
Slide 19: Total Returns to Unitholders
Total Returns to Unitholders Focus on creating long-term sustainable returns for our investors Unit Price of S$1.80 Since IPO For FY22/23 as at 31 March 2023 Capital Appreciation / (Depreciation) 104.5%1 (4.8)%2 Total Distributions Paid Out / Payable3 112.1% 5.1% Total Returns 216.7%4 0.3% 1. Based
Slide 20: Distribution Details
Distribution Details Unitholders will receive 4Q FY22/23 DPU of 2.25 Singapore cents on 15 June 2023 Distribution Period 1 January 2023 to 31 March 2023 Distribution Amount 2.25 Singapore cents per Unit Distribution Timetable Notice of Record Date Thursday, 27 April 2023 Last Day of Trading on “cum”
Slide 21: Portfolio Highlights
Portfolio Highlights Festival Walk, HK
Slide 22: Portfolio Highlights
Portfolio Highlights Portfolio1 Committed Occupancy Total NLA Renewed & Re-let 95.4% 369,426 sq ft 2,093,879 sq ft Retail Office/Business Park Rental Reversion Key Leases Renewed +0.7% Arup BMW Bank of America Google2 VivoCity Festival Walk Tenant Sales Shopper Traffic Tenant Sales Shopper Traffic
Slide 23: Portfolio Committed Occupancy
Portfolio Committed Occupancy Greater China assets navigate prolonged after-effects of COVID but successful renewal of key leases during the year adds resilience amid market changes and shifts in the tech and finance sectors As at As at As at 31 March 2023 31 December 2022 31 March 2022 (%) (%) (%)
Slide 24: FY22/23 Leasing Update
FY22/23 Leasing Update Positive rental uplifts recorded by all markets except Greater China Improving rental reversion at Festival Walk as it progressively overcomes challenges from the last two years Number of Leases Retention Rate by NLA Rental Committed (sq ft) (%) Reversion1 (%) MBC, SG 22 62.9
Slide 25: Lease Expiry Profile
Lease Expiry Profile (as at 31 March 2023) Portfolio resilience supported by well-staggered lease expiries Weighted Average Lease Expiry (“WALE”) by Gross Monthly Income (“GRI”) Portfolio Retail Office/Business Park 2.6 years1 2.0 years 3.0 years Lease Expiry Profile by Percentage of Monthly GRI2 13
Slide 26: Performance of Office/Business Park Assets
Performance of Office/Business Park Assets Healthy operating performance amid global market Easing COVID restrictions bring opportunities to drive turmoil and shifts in the tech and finance sectors performance but lingering after-effects remain Committed Occupancy Total NLA Renewed/Re-let Committed
Slide 27: Performance of Retail Assets
Performance of Retail Assets VivoCity – Achieved solid performance by seizing post- Festival Walk – Committed to adapt and overcome COVID opportunities bumps along the post-COVID recovery journey Committed Occupancy Total NLA Renewed/Re-let Committed Occupancy Total NLA Renewed/Re-let 99.1% 175 99.6
Slide 28: VivoCity – Capturing Post-COVID Recovery Momentum
VivoCity – Capturing Post-COVID Recovery Momentum to Achieve Strong Performance Full-year tenant sales surpassed S$1 billion, setting new record and exceeding pre-pandemic levels1 Shopper Traffic (mil) Tenant Sales (S$ mil)2 48.4% 30.6% year-on-year year-on-year 1,050.23 907.13 51.5 247.3 804.0
Slide 29: VivoCity – Asset Enhancement Initiative
VivoCity – Asset Enhancement Initiative Ready for progressive opening from end-May 2023 After AEI – L1 Floorplan ▪ ~80,000 square feet of space reconfiguration, includes Escalators converting part L1 anchor space into new retail zone linking B2, B1 and L1 ▪ Further enriches shopping experience and i
Slide 30: VivoCity – Asset Enhancement Initiative (cont’d)
VivoCity – Asset Enhancement Initiative (cont’d) Reinforces VivoCity’s positioning as a key destination mall with enhanced offerings ▪ Majority of space committed with a vibrant tenant mix ▪ Includes a new retail zone featuring popular F&B establishments and an enhanced beauty & fragrance cluster Re
Slide 31: VivoCity – Continuously Curating and Refreshing Our Retail Offerings
VivoCity – Continuously Curating and Refreshing Our Retail Offerings Adding new retail brands and revamping existing tenants’ stores to elevate VivoCity’s appeal Bonia, L1 – Lifestyle brand that offers timeless and T2tea, L2 – Australian tea specialist renowned for reimagined classics of bags and ac
Slide 32: VivoCity – Return of Hallmark Large-Scale Celebrative Events
VivoCity – Return of Hallmark Large-Scale Celebrative Events Exciting line-up of events created joyous atmosphere and well-received by shoppers of all ages Towering 6-metre tall Chinese New Year Rabbit on Tangs Chinese New Year Fair - Chinese New Year shopping extravaganza with over display at the O
Slide 33: Festival Walk – Year-on-Year Improvement in Shopper Traffic and Tenant Sales
Festival Walk – Year-on-Year Improvement in Shopper Traffic and Tenant Sales Mainly due to the relaxation of COVID-19 measures and reopening of border with Mainland China Shopper Traffic (mil) Tenant Sales (HKD mil)1 16.0% 9.3 % year-on-year year-on-year 41.3 5,326.4 10.1 1,320.0 8.5 3,931.22 29
Slide 34: Festival Walk – Shopper Traffic and Tenant Sales
Festival Walk – Shopper Traffic and Tenant Sales Removal of COVID-19 measures is crucial for eventual recovery; proactive management is key in overcoming expected bumps along the journey Monthly Tenant Sales and Shopper Traffic Shopper traffic (year-on-year comparison) Retail sales Lifting of all re
Slide 35: Festival Walk – Strengthening its Appeal as A Lifestyle Hub
Festival Walk – Strengthening its Appeal as A Lifestyle Hub Revamping existing stores and invigorating retail tenant mix J. Lindeberg, LG2 – Revamped store of Scandinavian fashion house Pinko, LG1 – Independent Italian fashion specialising in men’s and women’s fashion, golf and ski collections brand
Slide 36: Festival Walk – Diverse Activities Designed to Attract Shoppers
Festival Walk – Diverse Activities Designed to Attract Shoppers Carefully curated line-up of events contributed to lively and vibrant shopping experience Exclusive e-coupon redemptions for My Welcoming the Chinese New Year with an exciting Festival Walk members at the Sweet Home Traditional displays
Slide 37: Overall Top 10 Tenants
Overall Top 10 Tenants (as at 31 March 2023) Top ten tenants contributed 22.7%1,2 of gross rental income % of Gross Rental Income Tenant Property(ies) (as at 31 March 2023) 1 Google Asia Pacific Pte. Ltd. MBC 5.9% 2 BMW Gateway Plaza 3.6% 3 Seiko Instruments Inc. SII Makuhari Building 2.0% The Hongk
Slide 38: Portfolio Tenant Trade Mix
Portfolio Tenant Trade Mix (as at 31 March 2023) Trade Mix % of Gross Rental Income 1 IT Services & Consultancy 14.8% 2 F&B 12.7% 3 Banking & Financial Services 8.4% 4 Fashion 7.5% 5 Machinery / Equipment / Manufacturing 6.1% 6 Real Estate / Construction 5.0% 7 Departmental Store / Supermarket / Hyp
Slide 39: Commitment to Sustainability
Commitment to Sustainability Mapletree Business City, SG
Slide 40: 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 Responsible Business Engaging People and Business Resilience A Greener Environment Practices Communities 4. Ethical Business Material Facto
Slide 41: Reaffirming Our Commitment to Sustainability (cont’d)
Reaffirming Our Commitment to Sustainability (cont’d) Transforming our business to reach net-zero by 2050 A phased approach in line with the Mapletree Group ✓ Mapletree signed on to the United Nations-supported Principles for Responsible Investment (“PRI”) ✓ To develop a roadmap to achieve net-zero
Slide 42: Our Malls’ Effort in Greening
Our Malls’ Effort in Greening Paving the way for greener practices and lifestyle habits Solar Energy Lighting ✓ VivoCity and Festival Walk partially powered by solar panels with total ✓ Thoughtful designs that optimise natural light and insulate building, as rated power of >1,300 kWp, with plans to
Slide 43: Outlook
Outlook Mapletree Business City, SG
Slide 44: Outlook
Outlook ▪ The easing of COVID restrictions, resumption of major physical events and the return of tourists have led to higher physical retail sales in 2022. The higher retail sales value was also partially due to higher prices resulting from inflationary pressure. ▪ Approximately 1.39 million square
Slide 45: Outlook
Outlook ▪ Retail sales for January and February 2023 grew 17.3% yoy due to improving consumer sentiment and the removal of COVID restrictions, as well as the low base of comparison. ▪ The lifting of border restrictions have benefitted tourism and sales, and led to improved leasing demand and stabili
Slide 46: Outlook
Outlook ▪ In 1Q 2023, a mixed trend in rents was observed across the different submarkets. Rents in Tokyo 5 wards and Yokohama increased slightly as new supply with higher rents entered the market, while Tokyo 18 wards and Chiba experienced varying levels of rental decline due to weaker demand. Japa
Slide 47: Thank You
Thank You For enquiries, please contact: Teng Li Yeng Investor Relations Tel: +65 6377 6111 Email: teng.liyeng@mapletree.com.sg 47
Slide 48: Appendix 1: Market Information
Appendix 1: Market Information VivoCity, SG
Slide 49: Singapore Retail – Market Overview
Singapore Retail – Market Overview Expected recovery in tourism and limited upcoming supply expected to support occupancies and rents Key Retail Malls and Submarkets Average Rent Orchard Suburban S$37.73 S$18.07 per sq ft per month per sq ft per month 0.9% quarter-on- 7.3% qoq quarter (“qoq”) Oc
Slide 50: Singapore Retail – Market Overview (cont’d)
Singapore Retail – Market Overview (cont’d) Planned new supply (2023 – 2025) Area Expected Area Expected Submarket Property Submarket Property (’000 sq ft) Completion (’000 sq ft) Completion Orchard Boulevard 88 29.9 2023 Suburban Pasir Ris 8 250.0 2024 Dairy Farm Residences/Dairy Suburban Surbana J
Slide 51: Singapore Retail Sales Performance
Singapore Retail Sales Performance Proportion of online retail sales have dipped slightly from the levels in 2021 and 2022 in tandem with easing COVID restrictions, return of major physical events, tourists, and more shopping and dining out (S$ bil) (Online Sales Proportion) 4.4 4.3 30.0% 26.3% 3.9
Slide 52: Singapore Visitor Arrivals
Singapore Visitor Arrivals Tourist arrivals in March 2023 reached over 1 million in March 2023, the highest level since the start of COVID-19 in February 2020; tourist arrivals from Mainland China on a steady increase since the country’s reopening in early 2023 25.0 20.0 19.1 18.5 International Visi
Slide 53: Singapore Office – Market Overview
Singapore Office – Market Overview Weaker economic outlook, inflationary pressures and higher borrowing costs likely to lead to slowdown in office demand Key Office Districts Average Rent Occupancy Islandwide Islandwide S$5.87 88.7% per sq ft per month 0.4 p.p. 1.6% qoq from last quarter ▪ Rents
Slide 54: Singapore Office – Market Overview (cont’d)
Singapore Office – Market Overview (cont’d) Planned new supply (2023 – 2025) Submarket Property Area (’000 sq ft) Expected Completion Suburban Surbana Jurong Campus (Office Component) 110.8 2023 Core CBD Guoco Midtown Office/Midtown House @ Old Police Station 709.1 2023 Core CBD IOI Central Boulevar
Slide 55: Singapore Business Parks – Market Overview
Singapore Business Parks – Market Overview Rents likely to remain stable, despite global economic uncertainties, weakened outlook of outward- oriented sectors and continued tech layoffs affecting outlook in 2023 Existing and Planned Business Park Clusters Planned New Supply (2023-2025) Area Expected
Slide 56: Hong Kong Retail – Market Overview
Hong Kong Retail – Market Overview Gradual sector recovery expected to be supported by government support policies and full resumption of cross-border travel Key Retail Areas Average Rent Kowloon East HKD240 per sq ft per month unchanged qoq ▪ Retail sales for January and February 2023 grew 17.3% yo
Slide 57: Hong Kong Retail – Market Overview (cont’d)
Hong Kong Retail – Market Overview (cont’d) Planned new supply (2023 – 2025) Submarket Property Area (’000 sq ft) Expected Completion Kowloon East Airside (Retail Portion) 700.0 2023 Q2 Sha Tin The Wai 652.5 2023 Kowloon East Lifestyle at Kai Tak (SOGO Kai Tak Phase 1) 450.0 2023 Q4 Others The South
Slide 58: Hong Kong Retail Sales Performance
Hong Kong Retail Sales Performance January and February retail sales picked up 17.3% yoy due to improving consumer sentiment and removal of COVID restrictions, as well as the low base of comparison (HKD$ bil) (Online Sales Proportion) 40.0 37.7 12.0% 14.0% 12.8% 33.8 35.0 31.4 10.8% 12.0% 32.5 30.2
Slide 59: Hong Kong Visitor Arrivals
Hong Kong Visitor Arrivals Visitor arrivals likely to continue upward momentum due to reopening of cross-border checkpoints with Mainland China and tourism campaigns 70,000 60,000 14,109 14,027 Total Visitor Arrivals (’000) 50,000 12,138 40,000 30,000 51,038 44,445 43,775 20,000 26 (Other visitor 66
Slide 60: Beijing Office Market – Market Overview
Beijing Office Market – Market Overview Market activities have increased significantly due to the removal of COVID restrictions, but tenants remained cautious in making leasing decisions Key Office Districts Average Rent Occupancy Lufthansa (Grade A) Lufthansa (Grade A) RMB292 78.9% per sq m per mon
Slide 61: Beijing Office Market – Market Overview (cont’d)
Beijing Office Market – Market Overview (cont’d) Planned new supply (2023 – 2025) Submarket Property Area (’000 sq m) Expected Completion AGV & Olympic Park Beijing Polpas Center 90.0 2023 Q2 Zhongguancun Hevol Group Headquarters Building 56.6 2023 Q2 Dongcheng Business District K11 HACC 13.1 2023 Q
Slide 62: Shanghai Business Parks – Market Overview
Shanghai Business Parks – Market Overview Slow start in 1Q 2023 but long-term fundamentals expected to be healthy with demand driven by biomedicine, integrated circuits and AI sectors Core and Emerging Business Parks Average Rent Occupancy Zhangjiang Zhangjiang RMB4.96 89.6% per sq m per day 0.3 p
Slide 63: Shanghai Business Parks – Market Overview (cont’d)
Shanghai Business Parks – Market Overview (cont’d) Planned new supply (2023 – 2025) Area Expected Area Expected Submarket Property Submarket Property (‘000 sq m) Completion (‘000 sq m) Completion Caohejing Golden Union Park Phase I 82.0 2023 Q1 Zhangjiang C-6-3 25.5 2024 Q2 Jinqiao Oriental Valley S
Slide 64: Greater Tokyo Office – Market Overview
Greater Tokyo Office – Market Overview Relatively stable average rents in Tokyo 18 wards, Yokohama and Chiba with no significant change in rental trends Map of Office Markets Planned New Supply (2023 – 2025)1 Expected Submarket Property Area (tsubo) Completion Tokyo 5 wards Toranomon Hills Station T
Slide 65: Seoul Office – Market Overview
Seoul Office – Market Overview GBD rents continue to be underpinned by strong demand and limited supply despite vacancies increasing slightly due to new supply Map of Major Office Submarkets Planned New Supply (2023 – 2025) Area Expected Submarket Property (million pyeong) Completion Central Busines
Slide 66: Appendix 2: Asset Information
Appendix 2: Asset Information Hewlett-Packard Japan Headquarters Building, Tokyo, Japan
Slide 67: 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 2011 (IPO) 2016 2019 Leasehold 99 years Strata Lease from 25 Augu
Slide 68: Assets in Singapore
Assets in Singapore mTower Mapletree Anson BOAHF Address 460 Alexandra Road 60 Anson Road 2 HarbourFront Place Asset type Office and Retail Office Office Year of acquisition 2011 (IPO) 2013 2011 (IPO) Leasehold 99 years Leasehold 99 years Leasehold 99 years Title from 1 October 1997 from 22 October
Slide 69: 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, Blocks 1 to 5 and 7 to 9, No.2290 No.80 Tat Chee Avenue, East 3rd Ring Road 343, Hakdong-ro, Gangnam- Address Zuchong
Slide 70: 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 71: Assets in Greater Tokyo
Assets in Greater Tokyo ABAS Shin- Higashi-nihonbashi mBAY POINT Fujitsu Makuhari SII Makuhari Yokohama 1-chome Building, Makuhari, Chiba, Building, Chiba, Building, 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,
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