Mapletree Industrial Trust · SGX:ME8U

Mapletree Industrial Trust — Shareholder Meeting (July 2012)

34 slides from Mapletree Industrial Trust's shareholder meeting presentation, Jul 20, 2012

  1. Slide 1: Industrial Strength: 2nd Annual General Meeting

    INDUSTRIAL STRENGTH 2nd Annual General Meeting 20 July 2012

  2. Slide 2: AGM Resolutions

    AGM RESOLUTIONS RESOLUTION 1 To receive and adopt the Trustee's Report, the Manager's Statement, the Audited Financial Statements of MIT for the financial year ended 31 March 2012 and the Auditors' Report thereon. RESOLUTION 2 To re-appoint PricewaterhouseCoopers LLP as Auditors and authorise the Ma

  3. Slide 3: Agenda

    AGENDA 1 Overview of FY2011/2012 2 Key Highlights – 1 April 2011 to 31 March 2012 3 Operational Updates 4 Financial Review 5 Outlook and Strategy 6 Question & Answer 2

  4. Slide 4: Overview of FY2011/2012

    Overview of FY2011/2012 mapletree

  5. Slide 5: Year in Brief

    YEAR IN BRIEF August 2011 Established a S$1.0 billion Multi-Currency Medium Term July 2011 Note Programme Won Tranche 2 of JTC Corporation‟s Second Phase Divestment Exercise September 2011 Portfolio at S$400.3 million Fitch Ratings affirmed MIT‟s „BBB+‟ Rating with a stable outlook Successfully laun

  6. Slide 6: Key Highlights – April 2011 to March 2012

    Key Highlights – 1 April 2011 to 31 March 2012 5

  7. Slide 7: MIT FY11/12 Unit Price and Trading Performance

    MIT FY11/12 UNIT PRICE AND TRADING PERFORMANCE Total Unitholder Return of 12.8% Unit Price 4.8% FY11/12 Distribution Yield 8.0%¹ Source: Bloomberg 6 For the period 1 April 2011 to 31 March 2012 1 Based on FY11/12 closing price of S$1.100 as at 31 March 2012

  8. Slide 8: Comparative Trading Performance in FY11/12

    COMPARATIVE TRADING PERFORMANCE IN FY11/12 Market Capitalisation of 16.2% S$1.79 billion 120 115 110 105 MIT + 5.8% 100 STI: - 3.5% 95 S-REITs: - 4.8% 90 85 80 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Rebased MIT Price Rebased FTSE STI Rebased FTSE SREIT In

  9. Slide 9: Performance Exceeded FY11/12 Forecast

    PERFORMANCE EXCEEDED FY11/12 FORECAST Gross Revenue of S$246.4 mil 14.9% over Forecast¹ Net Property Income of S$171.3 mil 16.9% over Forecast1 Distribution per Unit of 8.41 cents 12.7% over Forecast1 8.41 7.46 3.45 Actual FY10/11² Forecast FY11/12 Actual FY11/12 Distribution Per Unit (cents) 1 The

  10. Slide 10: Property Type (by Net Property Income)

    PROPERTY TYPE (BY NET PROPERTY INCOME) 1.2% 4.6% 17.5% FY10/11 20.2% 56.5% 9

  11. Slide 11: Positive Rental Revisions

    POSITIVE RENTAL REVISIONS $4.50 $4.00 $3.82 $3.51 $3.50 $3.16 $3.00 Gross Rental Rate (S$ psf/mth) $2.50 $2.00 $1.80 $1.60 $1.50 $1.29 $1.31 $1.30 $1.38 $1.01 $1.08 $1.00 $0.82 $0.50 $0.00 Flatted Factories Business Park Buildings Stack-up/Ramp-up Buildings Warehouse Before renewal After renewal New

  12. Slide 12: Healthy Occupancy & Passing Rents

    HEALTHY OCCUPANCY & PASSING RENTS Gross Rental Rate Occupancy (S$ psf/mth) 100% $1.70 94.3% 94.5% 95.1% 94.9% 91.0% 91.0% 90.7% 90.3% 91.2% 92.3% 93.2% 89.0% 89.0% 89.7% 90.3% 80% $1.60 $1.55 $1.54 $1.53 $1.52 $1.49 60% $1.50 $1.45 $1.44 $1.40 40% $1.40 $1.35 $1.31 $1.31 $1.29 20% $1.30 $1.26 $1.23

  13. Slide 13: Stability from Extended Leases

    STABILITY FROM EXTENDED LEASES 35.0% 30% take-up rate for longer leases beyond 3 years 30.3% 30.0% 29.0% 25.0% by Gross Rental Income 23.2% % Expiring Leases 20.0% 17.5% 15.0% 10.0% 5.0% 0.0% FY12/13 FY13/14 FY14/15 FY15/16 & beyond Business Park Flatted Factories Stack-up / Ramp-up Light industrial

  14. Slide 14: Strong Tenant Retention

    STRONG TENANT RETENTION Long Staying Tenants High Retention Rate For FY11/12 Average Retention Rate 100.0% 91.4% 92.8% 89.6% 82.6% 82.9% 80.7% 80.0% 77.7% 73.0% 63.5% 60.0% 51.7% 40.0% 20.0% N.A. 0.0% Flatted Factories Business Park Stack-up/Ramp-up Light Industrial Warehouse Portfolio Buildings Bui

  15. Slide 15: Large and Diverse Tenant Base

    LARGE AND DIVERSE TENANT BASE • Over 2,000 tenants 4% • Largest tenant contributes <4% of Portfolio‟s Gross Rental Income 3.7% • Top 10 Tenants form <19% of Portfolio‟s Gross Rental Income 3% 2.8% 2.1% 2% 1.8% 1.8% 1.4% 1.4% 1.3% 1.1% 1.0% 1% 0% By Gross Rental Income As at 31 March 2012 14

  16. Slide 16: Diversity of Tenant Trade Sector

    DIVERSITY OF TENANT TRADE SECTOR No concentration in any single trade sector By Revenue As at 31 March 2012 15

  17. Slide 17: Operational Updates

    16 Operational Updates mapleiree trust

  18. Slide 18: Build-to-Suit Facility for Kulicke & Soffa

    BUILD-TO-SUIT FACILITY FOR KULICKE & SOFFA  Customised five-storey high specification light industrial building for Kulicke & Soffa (“K&S”), an existing MIT tenant:  K&S is a global leader in the design and manufacture of semiconductor and LED assembly equipment and is listed on the NASDAQ Stock E

  19. Slide 19: Build-to-Suit Facility for Kulicke & Soffa

    BUILD-TO-SUIT FACILITY FOR KULICKE & SOFFA  Located in the North-East region of Singapore  Easily accessible via major expressways  Located close to mature housing estates  Well-connected by the public transportation network  Suitable for high-tech industrial usage Artist’s impression of the co

  20. Slide 20: Asset Enhancement Initiatives – Woodlands Central Cluster

    ASSET ENHANCEMENT INITIATIVES (“AEI”) – WOODLANDS CENTRAL CLUSTER  Located at 33 & 35 Marsiling Industrial Estate Road 3  Near Woodlands MRT station and Woodlands Bus Interchange  Close proximity to various amenities Before Redevelopment  15 minutes drive to Malaysia  Business 2 zoning Woodland

  21. Slide 21: AEI – Woodlands Central Cluster

    AEI – WOODLANDS CENTRAL CLUSTER Existing GFA 549,223 sq ft Additional GFA 50,000 sq ft (estimated) Land Tenure 60 years commencing 1 July 2008 Proposed AEI - Reposition cluster as a high-tech industrial space for biomedical and medical technology companies - Extension of six-storey wing, multi-store

  22. Slide 22: AEI – Toa Payoh North 1 Cluster

    AEI – TOA PAYOH NORTH 1 CLUSTER  Located at 970, 970A & 998 Toa Payoh North  Central location with convenient access to various amenities  Near Braddell Mass Rapid Transit Before Redevelopment (“MRT”) Station  Well-connected to Central Business District via major expressways  Business 1 zoning

  23. Slide 23: AEI – Toa Payoh North 1 Cluster

    AEI – TOA PAYOH NORTH 1 CLUSTER Artist’s impression of the new high-tech building Existing GFA 517,996 sq ft Additional GFA 150,000 sq ft (estimated) Land Tenure 30 years commencing 1 July 2008 Proposed AEI - New high-tech industrial building (on existing canteen space) - New amenity block with mult

  24. Slide 24: Financial Review

    23 Financial Review mapleiree trust

  25. Slide 25: Statement of Total Returns (FY11/12 vs FY10/11)

    STATEMENT OF TOTAL RETURNS (FY11/12 VS FY10/11) FY11/12 FY10/111  / () (S$’000) (S$’000) Gross revenue 246,371 196,492 25.4% Property operating expenses (75,051) (61,792) 21.5% Net Property Income 171,320 134,700 27.2% Interest on borrowings (23,573) (43,264) (45.5%) Trust expenses (21,410) (14,16

  26. Slide 26: FY11/12 Actual vs Prospect Statement

    FY11/12 ACTUAL VS PROSPECT STATEMENT Actual Forecast1 FY11/12 FY11/12  / () (S$’000) (S$’000) Gross revenue 246,371 214,401 14.9% Property operating expenses (75,051) (67,810) 10.7% Net Property Income 171,320 146,591 16.9% Interest on borrowings (23,573) (21,282) 10.8% Trust expenses (21,410) (17

  27. Slide 27: Healthy Balance Sheet

    HEALTHY BALANCE SHEET Actual Actual 31 Mar 2012 31 Mar 2011 Total Assets (S$‟000) 2,822,205 2,308,038 Total Liabilities (S$‟000) 1,167,669 924,208 Net Assets Attributable to Unitholders (S$’000) 1,654,536 1,383,830 Net Asset Value per Unit (S$) 1.02 0.95 Aggregate Leverage Ratio (%) 37.8 36.1 Intere

  28. Slide 28: Robust Capital Structure

    ROBUST CAPITAL STRUCTURE Debt Maturity Profile As at 31 March 2012 400 344 S$1,069.2 350 Total Debt million 300 Fixed as a % of Total Debt 85% Gross Debt (S$ million) 251 250 Average Borrowing Costs 2.2% for FY11/12 200 Weighted Average Tenure 3.0 years 150 139 of Debt 126 Assets Unencumbered as 100

  29. Slide 29: Outlook & Strategy

    28 Outlook & Strategy mapletree

  30. Slide 30: Healthy Market Demand for Flatted Factories

    HEALTHY MARKET DEMAND FOR FLATTED FACTORIES Demand and Supply for Flatted Factories Demand and Supply for Business Parks („000 sq m) Occupancy Rate (%) („000 sq m) Occupancy Rate (%) 350 100.0% 250 100.0% 300 200 250 80.0% 80.0% 200 150 150 60.0% 100 60.0% 100 50 40.0% 50 0 2003 2004 2005 2006 2007

  31. Slide 31: Outlook and Strategy

    OUTLOOK AND STRATEGY Active Asset Acquisition Growth and Capital and Risk Management Selective Development Management  Proactive leasing and  Identify and source  Maintain a strong balance marketing initiatives acquisition and sheet  Deliver quality service and development opportunities  Employ

  32. Slide 32: Stable Portfolio with Growth Potential

    STABLE PORTFOLIO WITH GROWTH POTENTIAL Continued Focus on Organic Growth within Portfolio Large, Diversified and Resilient Portfolio with Market Presence Potential Growth from Acquisitions and Selective Developments Experienced Manager and Committed Sponsor 31

  33. Slide 33: Question & Answer

    32 Question & Answer mapleiree trust

  34. Slide 34: Thank You

    Thank You mapleiree trust

Mapletree Industrial Trust — Shareholder Meeting (July 2012) on 6ix