Singapore Exchange Ltd. · SGX:S68

Singapore Exchange — Mapletree Commercial Trust — H1 2021 Earnings Presentation

29 slides from Singapore Exchange's earnings presentation, Oct 22, 2020

  1. Slide 1: Mapletree Commercial Trust 1H FY20/21 Financial Results

    Mapletree Commercial Trust 1H FY20/21 Financial Results 22 October 2020 0

  2. Slide 2: Important Notice

    Important Notice This presentation is for information only and does not constitute an offer or solicitation of an offer to sell or invitation to subscribe for or acquire any units in Mapletree Commercial Trust (“MCT”, and the units in MCT, the “Units”). The past performance of MCT and Mapletree Comm

  3. Slide 3: Content

    Content  Key Highlights Page 3  Financial Performance Page 6  Portfolio Updates Page 13  Outlook Page 24 2

  4. Slide 4: Key Highlights

    Key Highlights VivoCity

  5. Slide 5: Key Highlights

    Key Highlights Financial Performance  1H FY20/21 gross revenue and net property income (“NPI”) down 2.5% and 2.6% respectively mainly due to COVID-19 rental rebates but offset by contribution from Mapletree Business City (“MBC”) II  1H FY20/21 Distribution per Unit (“DPU”) totalled 4.17 Singapore

  6. Slide 6: Key Highlights

    Key Highlights Value Creation at VivoCity  Completed reconfiguration of mini-anchor space on Level 2 and recovered prime space to accommodate home-grown online-to-offline fashion retailer  Work in progress to revitalise Level 1 promenade-facing F&B cluster, targeting to complete by 3Q FY20/21 Capi

  7. Slide 7: Financial Performance

    Financial Performance VivoCity

  8. Slide 8: 1H FY20/21 Financial Scorecard

    1H FY20/21 Financial Scorecard 1H FY20/21 gross revenue and NPI down 2.5% and 2.6% respectively mainly due to COVID-19 rental rebates granted to eligible tenants but offset by contribution from MBC II S$’000 unless otherwise stated 1H FY20/21 1H FY19/20 Variance Gross Revenue 218,671 224,169 2.5% Pr

  9. Slide 9: Portfolio Valuation

    Portfolio Valuation Portfolio revalued to S$8.7 bil mainly due to COVID-19 impact Capitalisation rates remained unchanged Valuation Valuation as at 30 September 20201 as at 31 March 20201 S$ million S$ per sq ft NLA Capitalisation Rate (%) S$ million VivoCity 3,148.0 2,924 psf 4.625% 3,262.0 Office:

  10. Slide 10: Balance Sheet

    Balance Sheet NAV per Unit eased to S$1.71 mainly due to revised valuation of investment properties As at As at S$’000 unless otherwise stated 30 September 2020 31 March 2020 Investment Properties 8,717,000 8,920,000 Other Assets 163,789 87,073 Total Assets 8,880,789 9,007,073 Net Borrowings 3,001,6

  11. Slide 11: Key Financial Indicators

    Key Financial Indicators Maintained robust balance sheet Every 25 bps change in Swap Offer Rate estimated to impact DPU by 0.06 cents p.a As at As at As at 30 September 2020 30 June 2020 30 September 2019 Total Debt Outstanding S$2,998.9 mil S$3,068.2 mil S$2,349.0 mil Gearing Ratio 33.8%1 33.7% 31.

  12. Slide 12: Debt Maturity Profile (as at September 2020)

    Debt Maturity Profile (as at 30 September 2020) Financial flexibility from more than S$600 mil of cash and undrawn committed facilities Well-distributed debt maturity profile with no more than 21% of debt due in any financial year Total gross debt: S$2,998.9 mil  Redeemed S$160.0 mil of Fixed Rate

  13. Slide 13: Distribution Details

    Distribution Details 1H FY20/21 distribution of 4.17 Singapore cents Distribution Period 1 April 2020 – 30 September 2020 Distribution Amount 4.17 Singapore cents per unit Distribution Timetable Notice of Record Date Thursday, 22 October 2020 Last Day of Trading on “cum” Basis Wednesday, 28 October

  14. Slide 14: Portfolio Updates

    Portfolio Updates Mapletree Business City I

  15. Slide 15: 1H FY20/21 Financial Scorecard

    1H FY20/21 Financial Scorecard COVID-19 impact cushioned by MBC II and higher contribution from Mapletree Anson Gross Revenue Property Expenses Net Property Income 2.5% 1.8% 2.6% 224.2 218.7 10.0 9.9 176.11 14.7 171.5 17.0 8.0 8.0 25.4 11.4 21.2 13.7 19.3 15.6 52.0 48.11 47.2 42.1 48.0 65.2 2.0 1.9

  16. Slide 16: Portfolio Occupancy

    Portfolio Occupancy Achieved healthy portfolio committed occupancy of 97.7% MBC continues to provide stability September 2020 September 2019 June 2020 Actual Committed1 VivoCity 99.8% 98.3% 96.0% 97.9% MBC I 98.9% 96.4% 97.9% 98.2% MBC II - 99.4% 100% 100% PSA Building 91.3% 88.7% 69.7%2 87.9% Maple

  17. Slide 17: FY20/21 Leasing Update

    FY20/21 Leasing Update Portfolio rental reversion impacted by uncertain COVID-19 outlook Number of Leases Retention Rate % Change in 1 Committed (by NLA) Fixed Rents Retail 71 79.1% -8.9%2 Office/Business Park 20 77.5% -1.6%3 MCT Portfolio 91 77.7% -3.7%3 1. Based on the average of the fixed rents o

  18. Slide 18: Lease Expiry Profile (as at September 2020)

    Lease Expiry Profile (as at 30 September 2020) Portfolio resilience supported by manageable lease expiries WALE Committed Basis Portfolio 2.5 years1 Retail 2.1 Years Office/Business Park 2.8 years As % of Gross Rental Revenue 19.5% 13.0% 13.2% 12.9% 9.8% 8.0% 7.4% 5.8% 6.4% 4.1% FY20/21 FY21/22 FY22

  19. Slide 19: VivoCity – Shopper Traffic and Tenant Sales

    VivoCity – Shopper Traffic and Tenant Sales 1Q FY20/21 impacted by ten weeks of mandatory business closures 1 Progressive recovery in 2Q FY20/21 since Phase Two of re-opening from 19 June 2020 Shopper Traffic (mil) Tenant Sales (S$ mil)2 64.6% 41.5% 500 450 444.3 28 27.1 400 23 350 235.0 14.0 300 18

  20. Slide 20: VivoCity – Progressive Recovery in Shopper Traffic and Tenant Sales

    VivoCity – Progressive Recovery in Shopper Traffic and Tenant Sales Rebound in tenant sales has outpaced shopper traffic But COVID-19 protocols continue to be in place and pose disruptions Monthly Shopper Traffic and Tenant Sales (rebased against 2019) 100% Heightened 90% safe distancing measures 80

  21. Slide 21: Assisting Our Tenants to Weather the COVID-19 Headwinds

    Assisting Our Tenants to Weather the COVID-19 Headwinds Rendered timely and meaningful rental assistance To help eligible retail tenants offset on average more than 4 months 1 of their fixed rents Average quantum of rental rebate/waiver Period for eligible tenants March 2020 ~0.5 month 1Q FY20/21 ~2

  22. Slide 22: VivoCity – Reconfigured Mini-Anchor Space on Level 2

    VivoCity – Reconfigured Mini-Anchor Space on Level 2 Recovered prime frontage to accommodate home-grown online-to-offline fashion retailer Achieved more than 30% ROI on a stabilised basis1 Before After  Best Denki reconfigured layout and doubled shopfront width Lobby L Before Lobby L  Love, Bonito

  23. Slide 23: VivoCity – Work in Progress to Further Drive Performance

    VivoCity – Work in Progress to Further Drive Performance Revitalising Level 1 promenade-facing F&B cluster to improve layout and offerings Entire exercise to deliver ~30% ROI on stabilised basis1  Reconfiguration of cluster to optimise space efficiency  New cluster will house four new F&B tenants:

  24. Slide 24: VivoCity – Refreshing Tenant Mix

    VivoCity – Refreshing Tenant Mix New and popular concepts added in 1H FY20/21 Beyond Coffee – Trendy café offering quality Butter Bean – Nanyang coffee-based beverages Fragrance – Well-loved for its and innovative coffee-based beverages and baked goods with a modern twist signature barbecued meat Be

  25. Slide 25: Outlook

    Outlook Bank of America Merrill Lynch HarbourFront

  26. Slide 26: Outlook

    Outlook Singapore Economy  Based on the Ministry of Trade and Industry’s (“MTI”) advanced estimates, the Singapore economy contracted by 7.0% on a year-on-year basis in the third quarter of 2020, an improvement from the 13.3% contraction in the second quarter. On a quarter-on-quarter seasonally-adj

  27. Slide 27: Outlook

    Outlook Office  Coupled with a bleak employment outlook, office demand continued to dampen. As vacancies are expected to rise, landlords are realigning their rental expectations, thus narrowing the rental expectation gap between tenants and landlords. However, the rate of rental decline has been cu

  28. Slide 28: Outlook

    Outlook Business Park (cont’d)  Looking ahead, more downsizing could be on the horizon as tenants recalibrate their footprints. Nonetheless, firms still consider business parks favourably in their long-term plans. The City Fringe business parks will continue to garner interest despite their tight s

  29. Slide 29: Thank You

    Thank You For enquiries, please contact: Teng Li Yeng Investor Relations Tel: +65 6377 6836 Email: teng.liyeng@mapletree.com.sg 28

Mapletree Commercial Trust — H1 2021 Earnings Presentation on 6ix