Mapletree Pan Asia Commercial Trust · SGX:N2IU
Mapletree Pan Asia Commercial Trust — FY23/24 Earnings Presentation
68 slides from Mapletree Pan Asia Commercial Trust's earnings presentation, Apr 24, 2024
Slide 1: Mapletree Pan Asia Commercial Trust 4Q and FY23/24 Financial Results
Mapletree Pan Asia Commercial Trust 4Q and FY23/24 Financial Results 24 April 2024
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 8 ▪ Portfolio Highlights Page 22 ▪ Commitment to Sustainability Page 39 ▪ Outlook Page 42 ▪ Appendix 1: Market Information Page 45 ▪ Appendix 2: Other Asset Information Page 63 3
Slide 4: Key Highlights
Key Highlights VivoCity, SG
Slide 5: Navigating Market Changes with Greater Resilience and Agility
Navigating Market Changes with Greater Resilience and Agility Refining our capital structure and portfolio mix, repositioning for future opportunities Key themes shaping our business environment % Geopolitical Conflicts New Era of High Volatile Financial & Economic Interest Rates Markets and Currenc
Slide 6: Key Highlights
Key Highlights 4Q FY23/24 Assets Under Management Distribution per Unit (“DPU”) (“AUM”) 2.29 Singapore cents S$16.5 billion1 Up 1.8% year-on-year (“yoy”) 18 commercial properties across five key gateway markets of Asia NAV per Unit Portfolio Committed Occupancy S$1.75 96.1 % Mainly dampened by stron
Slide 7: Key Highlights (cont’d)
Key Highlights (cont’d) Financial Performance Portfolio Performance 4Q FY23/24 vs 4Q FY22/23 ▪ Consistent Operational Performance: Yoy improvement in portfolio committed occupancy and positive full-year rental ▪ Improved Financial Performance: Gross revenue, net reversion property income (“NPI”) and
Slide 8: Financial Performance
Financial Performance Mapletree Business City, SG
Slide 9: 4Q FY23/24 vs 4Q FY22/23: Higher DPU Driven by Income Growth Despite Stronger SGD
4Q FY23/24 vs 4Q FY22/23: Higher DPU Driven by Income Growth Despite Stronger SGD and Rise in Finance Costs Increased income from stronger performance by Singapore and stable contribution from Festival Walk Overseas contributions tempered by stronger SGD against JPY and RMB S$’000 unless 4Q FY23/24
Slide 10: 4Q FY23/24 vs 4Q FY22/23: YOY Growth in Contribution to Gross Revenue and NPI
4Q FY23/24 vs 4Q FY22/23: YOY Growth in Contribution to Gross Revenue and NPI Singapore recorded higher income with continued better performance Contribution to Gross Revenue Contribution to NPI (S$ million) (S$ million) 236.3 3.1 242.2 3.0 21.7 185.4 24.3 179.7 2.3 2.3 21.0 15.7 22.4 S$9.0m 16.4 17
Slide 11: FY23/24 vs FY22/23: Higher Income Dampened by Increased Utility and Finance Costs
FY23/24 vs FY22/23: Higher Income Dampened by Increased Utility and Finance Costs Higher income from Singapore properties due to better performance; merger gains moderated by stronger SGD against foreign currencies S$’000 unless FY23/24 FY22/23 Variance otherwise stated Gross Revenue1 958,088 826,18
Slide 12: FY23/24 vs FY22/23: Growth in Contribution to Gross Revenue and NPI
FY23/24 vs FY22/23: Growth in Contribution to Gross Revenue and NPI Driven by Merger and Singapore’s Robust Performance Singapore delivered NPI uplift of S$18.7 million after fully covering higher utility expenses Contribution to Gross Revenue Contribution to NPI (S$ million) (S$ million) By Market
Slide 13: Stability in Total Portfolio Valuation
Stability in Total Portfolio Valuation Driven by Singapore’s uplift, led by VivoCity which has continued to perform well Valuation (S$) S$ mil Variance 31 March 2024 Per Sq Ft Lettable Area 31 March 20241,2 31 March 20233 S$ mil % Cap Rate (%)4 (S$) VivoCity 3,358.0 3,232.0 126.0 3.9 3,145 4.50 Offi
Slide 14: Overseas Assets Valuation Decline Mostly due to Stronger SGD
Overseas Assets Valuation Decline Mostly due to Stronger SGD Operational valuation impact represents a small portion of the overall variance for overseas assets Mainly due to revised market expectations for China and adjustments for SII Makuhari Building1 Valuation Valuation Variance Variance As at
Slide 15: Stable Balance Sheet
Stable Balance Sheet Value of investment properties dampened by stronger SGD against all currencies NAV per Unit would have been S$1.77 excluding this forex impact As at As at S$’000 unless otherwise stated 31 March 2024 31 March 2023 Investment Properties 16,248,855 16,321,443 Investment in Joint V
Slide 16: Sustained Financial Resilience
Sustained Financial Resilience Balancing stability and flexibility while keeping costs at reasonable levels As at As at As at 31 March 2024 31 December 2023 31 March 2023 Gross Debt Outstanding1 S$6,803.0 mil S$6,830.3 mil S$6,940.8 mil Aggregate Leverage Ratio2 40.5% 40.8% 40.9% Adjusted Interest C
Slide 17: Boosting Capital Efficiency and Stability Through Debt Mix Optimisation
Boosting Capital Efficiency and Stability Through Debt Mix Optimisation and Liquidity Measures (as at 31 March 2024) S$200 million 10-year fixed rate senior green notes issued in March 2024 to boost long-term stability Supported by ample financial Well-distributed debt maturity with no more than 21%
Slide 18: Enhancing Certainty Through Prudent Hedging Measures
Enhancing Certainty Through Prudent Hedging Measures (as at 31 March 2024) Fixed rate debts kept above 70% to shield against interest rate uncertainties ~93% of expected distributable income derived from or hedged into SGD to safeguard income stability ~77% of total debt hedged or fixed ~93% of Expe
Slide 19: MPACT Unit Price Performance
MPACT Unit Price Performance Long-term journey remains resolute in spite of near-term market fluctuations Relative price performance from Listing Date of 27 April 2011 to 31 March 2024 300% 250% Unit Price on 31 March 2024 S$1.28 200% Unit Price at IPO S$0.88 150% MPACT +45.5% STI +1.3% 100% FTSE ST
Slide 20: Total Returns to Unitholders
Total Returns to Unitholders Emphasis on delivering long-term sustainable returns Unit Price of S$1.28 Since IPO For FY23/24 as at 31 March 2024 Capital Appreciation / (Depreciation) 45.5%1 (28.9)%2 Total Distributions Paid Out / Payable3 122.3% 5.0% Total Returns 167.7% (23.9)% 1. Based on closing
Slide 21: Distribution Details
Distribution Details Unitholders will receive 4Q FY23/24 DPU of 2.29 Singapore cents on 6 June 2024 Distribution Period 1 January 2024 to 31 March 2024 Distribution Amount 2.29 Singapore cents per Unit Distribution Timetable Notice of Record Date Wednesday, 24 April 2024 Last Day of Trading on “cum”
Slide 22: Portfolio Highlights
Portfolio Highlights VivoCity, SG
Slide 23: Portfolio Highlights
Portfolio Highlights Portfolio1 Committed Occupancy Total Lettable Area Renewed & Re-let 96.1% 515,464 sq ft 2,035,711 sq ft Retail Office/Business Park Rental Reversion Tenant Retention Rate +2.9% 72.5% VivoCity Festival Walk Tenant Sales Shopper Traffic Tenant Sales Shopper Traffic 2.6% 10.1%
Slide 24: Portfolio Committed Occupancy Remained High at 96.1%
Portfolio Committed Occupancy Remained High at 96.1% Year-on-year improvement notwithstanding some quarterly transitions Continued emphasis on sustaining healthy occupancy and stable rental income As at As at As at 31 March 2024 31 December 2023 31 March 2023 (%) (%) (%) MBC, SG 96.0 97.0 95.4 VivoC
Slide 25: Positive Full-Year Rental Reversion and Improved Committed Occupancy
Positive Full-Year Rental Reversion and Improved Committed Occupancy Against Last Year Demonstrate Operational Resilience Singapore market achieved robust rental reversions Festival Walk continues to move towards rental stabilisation Retention Rate by Number of Leases Rental Lettable Area Committed
Slide 26: Well-Staggered Lease Expiry Profile
Well-Staggered Lease Expiry Profile (as at 31 March 2024) Balanced lease expiry profile enhances portfolio resilience Weighted Average Lease Expiry (“WALE”) by Gross Monthly Income (“GRI”) Portfolio Retail Office/Business Park 2.4 years1 2.1 years 2.7 years Lease Expiry Profile by Percentage of Mont
Slide 27: Performance of Office/Business Park Assets
Performance of Office/Business Park Assets Singapore continues to excel, achieving high to full China assets outperformed market; leasing efforts commitment across all office/business park assets remain dedicated to sustaining occupancy levels Committed Occupancy Total Lettable Area Committed Occupa
Slide 28: Performance of Retail Assets
Performance of Retail Assets VivoCity – Consistent and all-rounded excellence Festival Walk – Resilience supported by strong committed anchor MPACT’s core stability occupancy and continued progress towards rental stability Total Lettable Area Total Lettable Area Committed Occupancy Committed Occupan
Slide 29: VivoCity – Charting New Heights in Tenant Sales
VivoCity – Charting New Heights in Tenant Sales Robust 6.4% sales growth in 4Q FY23/24 propelled full-year tenant sales to near S$1.1 billion mark, surpassing previous record Shopper Traffic (mil) Tenant Sales (S$ mil)1 10.1% 2.6% year-on-year year-on-year 1,050.2 1,077.1 43.9 263.4 247.3 39.9 1
Slide 30: VivoCity – Continued Enhancements to Drive Performance
VivoCity – Continued Enhancements to Drive Performance Ongoing efforts to maximise retail space potential and elevate mall’s appeal to shoppers 6th AEI completed and opened in May 2023 L1 F&B cluster reconfiguration completed and opened in 3Q FY23/24 ▪ ~80,000 square feet of space reconfiguration, i
Slide 31: VivoCity – Proactively Revitalising our Space and Retail Mix
VivoCity – Proactively Revitalising our Space and Retail Mix Elevated shopping experience with new arrivals and refreshed storefronts Introducing new and trendy offerings Kenangan Coffee, L2 – Fastest-growing grab- Rollney, L2 – First Singapore outlet Chimichanga, L1 – Popular Mexican chain opens it
Slide 32: VivoCity – Large-Scale Celebratory Events to Usher in the Year of Dragon
VivoCity – Large-Scale Celebratory Events to Usher in the Year of Dragon Spreading festive cheer and delighting shoppers with vibrant activities VivoCity’s Outdoor Plaza transformed into a garden of fortune, TANGS Chinese New Year Fair - Over 45 stalls offering featuring a towering 6-metre tall pros
Slide 33: VivoCity – Unique Events and Campaigns that Attract and Captivate
VivoCity – Unique Events and Campaigns that Attract and Captivate Transforming VivoCity’s distinctive spaces, boosting footfall with entertainment and excitement Destination of Fun as VivoCity Hosted Product Launches and Pop-Up Events Kung Fu Panda 4’s Exciting Campaign and Activities Outdoor Plaza
Slide 34: Festival Walk – Stable Performance Supported by YOY Recovery in Shopper Activities
Festival Walk – Stable Performance Supported by YOY Recovery in Shopper Activities Recovery path impacted by surge in cross-border consumption following the reopening of border with Mainland China Shopper Traffic (mil) Tenant Sales (HKD mil)1 0.6% 0.1% year-on-year year-on-year 3,931.2 3,934.8 2
Slide 35: Festival Walk – Intensifying Marketing Efforts to Boost Footfall
Festival Walk – Intensifying Marketing Efforts to Boost Footfall Success in attracting shoppers with festive celebrations, events and celebrity appearances Chinese New Year Celebration 2024 Drawing in Shoppers over Easter Long Weekend and Ching Ming Festival Famous sports anime “Haikyu!!”’s first po
Slide 36: Festival Walk – Intensifying Marketing Efforts to Boost Footfall (cont’d)
Festival Walk – Intensifying Marketing Efforts to Boost Footfall (cont’d) Success in attracting shoppers with festive celebrations, events and celebrity appearances Diverse Line-up of Events and Campaigns Leveraging Festival Walk’s Ice Rink and Cinema LINE FRIENDS meets URDU- “Love In Fukuheya” Char
Slide 37: Overall Top 10 Tenants
Overall Top 10 Tenants (as at 31 March 2024) Top ten tenants contributed 21.6%1 of gross rental income % of Gross Rental Income Tenant Property(ies) (as at 31 March 2024) 1 Google Asia Pacific Pte. Ltd. MBC 6.0% 2 BMW Gateway Plaza 3.2% 3 TaSTe Festival Walk 2.0% 4 The Hongkong and Shanghai Banking
Slide 38: Portfolio Tenant Trade Mix
Portfolio Tenant Trade Mix (as at 31 March 2024) Trade Mix % of Gross Rental Income 1 F&B 13.8% 2 IT Services & Consultancy 13.8% 3 Banking & Financial Services 8.3% 4 Fashion 7.4% 5 Machinery / Equipment / Manufacturing 5.8% 6 Departmental Store / Supermarket / Hypermarket 5.2% 7 Real Estate / Cons
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 6. Health and Safety 10. Energy an
Slide 41: Our Journey Towards Net-Zero by 2050
Our Journey Towards Net-Zero by 2050 Reached notable milestones during the year; ongoing initiatives to raise awareness and do good Key Sustainability Achievements in FY23/24 Green Certificates and Achievements Solar Energy Awards and Recognition ✓ Obtained 3 Green Building Certifications: ✓ Install
Slide 42: Outlook
Outlook Mapletree Business City, SG
Slide 43: Outlook
Outlook Conclusion ▪ Amidst global uncertainty and anticipated economic weaknesses, the broad market is navigating through a series of complexities, including persistent geopolitical conflicts, high inflation rates, prolonged periods of elevated interest rates and volatile financial markets. These e
Slide 44: Thank You
Thank You For enquiries, please contact: Teng Li Yeng Investor Relations Tel: +65 6377 6111 Email: teng.liyeng@mapletree.com.sg 44
Slide 45: Appendix 1: Market Information
Appendix 1: Market Information Festival Walk, HK
Slide 46: Singapore Retail – Market Overview
Singapore Retail – Market Overview Healthy demand for retail space and limited upcoming supply are expected to support upward trajectory of rents, albeit at a moderated pace Key Retail Malls and Submarkets Average Rent Orchard Suburban S$39.27 S$19.66 per sq ft per month per sq ft per month 1.1% q
Slide 47: Singapore Retail – Market Overview (cont’d)
Singapore Retail – Market Overview (cont’d) Planned New Supply (2024 – 2026) Area Expected Area Expected Submarket Property Submarket Property (’000 sq ft) Completion (’000 sq ft) Completion Rest of Central Hotel/Retail Development at Rest of Central 20.2 1Q 2024 CanningHill Square 90.5 2025 Area Cl
Slide 48: Singapore Retail Sales Performance
Singapore Retail Sales Performance Retail sales in the first two months of 2024 grew 3.0% yoy, with lower proportion of online retail sales after year-end online sales festivals (S$ bil) (Online Sales Proportion) 5.0 30.0% 26.3% 4.5 4.3 4.2 3.9 25.0% 4.0 3.8 3.8 3.8 3.6 3.6 3.6 3.7 3.5 21.0% 17.9% 3
Slide 49: Singapore Visitor Arrivals
Singapore Visitor Arrivals Tourist arrivals surged 29.7% yoy to 3.8 million for the first three months of 2024, and recovery momentum expected to continue through 2024 25.0 20.0 19.1 18.5 17.4 International Visitor Arrivals (million) International Visitor Arrivals (million) 15.0 13.6 10.0 6.3 5.0 3.
Slide 50: Singapore Office – Market Overview
Singapore Office – Market Overview Ongoing economic uncertainties and upcoming supply could dampen demand and rental growth although an improvement can be expected from 2H 2024 on the back of economic recovery and possible easing of interest rates Key Office Districts Average Rent Occupancy Islandwi
Slide 51: Singapore Office – Market Overview (cont’d)
Singapore Office – Market Overview (cont’d) Planned New Supply (2024 – 2026) Submarket Property Area (’000 sq ft) Expected Completion Core CBD IOI Central Boulevard Towers 1,258.0 1Q 2024 Rest of Central Region Labrador Tower 696.8 2Q 2024 Core CBD Grand Hyatt Hotel Singapore A&A 14.5 2Q 2024 Keppel
Slide 52: Singapore Business Parks – Market Overview
Singapore Business Parks – Market Overview Islandwide rents expected to observe minimal growth in 2024; long-term attractiveness remains given government efforts in promoting high-value and knowledge-based industries Existing and Planned Business Park Clusters Planned New Supply (2024 – 2026) Area E
Slide 53: Hong Kong Retail – Market Overview
Hong Kong Retail – Market Overview Tourist arrivals continued to recover but remained below pre-social incidents and pre-COVID levels, and rents have similarly not recovered fully. Government campaigns are expected to support tourism and consumption. Key Retail Areas Average Rent Occupancy Kowloon E
Slide 54: Hong Kong Retail – Market Overview (cont’d)
Hong Kong Retail – Market Overview (cont’d) Planned New Supply (2024 – 2026) Submarket Property Area (’000 sq ft) Expected Completion CWB/Wan Chai Hopewell Centre II (Mall) 270.0 2024 Others 11 Skies (Retail Portion - Phase 1) 1,620.0 2024 Kowloon East The Millennity 500.0 2024 Kowloon East The Twin
Slide 55: Hong Kong Retail Sales Performance
Hong Kong Retail Sales Performance Marginal yoy increase in retail sales for January and February due to launch of government campaigns but largely dampened by higher outbound travelling particularly during the festive periods and long weekends (HKD$ bil) (Online Sales Proportion) 40.0 14.0% 37.7 12
Slide 56: Hong Kong Visitor Arrivals
Hong Kong Visitor Arrivals 1Q 2024 tourist arrivals improved qoq but remained less than half of pre-social incidents and pre-COVID levels. Increased weekend travel to Mainland China by Hong Kong residents further led to net outflow 70,000 60,000 14,109 Total Visitor Arrivals (’000) 14,027 50,000 12,
Slide 57: Beijing Office Market – Market Overview
Beijing Office Market – Market Overview An improvement in the sector hinges on a recovery in the macroeconomic environment Key Office Districts Average Rent Occupancy Lufthansa (Grade A) Lufthansa (Grade A) RMB264 77.8% per sq m per month 0.9 pp 2.2% qoq from last quarter ▪ China recorded 5.2% G
Slide 58: Beijing Office Market – Market Overview (cont’d)
Beijing Office Market – Market Overview (cont’d) Planned New Supply (2024 – 2026) Submarket Property Area (’000 sq m) Expected Completion The office building section of China National Convention Center Office AGV & Olympic Park 35.0 4Q 2024 Phase II Zhongguancun Dinghao DH3 Tower B 70.0 4Q 2024 Lize
Slide 59: Shanghai Business Parks – Market Overview
Shanghai Business Parks – Market Overview Influx of new supply expected to drive up vacancies; companies with high-tech capabilities to benefit from favourable government policies and provide demand support Core and Emerging Business Parks Average Rent Occupancy Zhangjiang Zhangjiang RMB4.86 79.3% p
Slide 60: Shanghai Business Parks – Market Overview (cont’d)
Shanghai Business Parks – Market Overview (cont’d) Planned New Supply (2024 – 2026) Area Expected Area Expected Area Expected Submarket Property Submarket Property Submarket Property (‘000 sq m) Completion (‘000 sq m) Completion (‘000 sq m) Completion Zhangjiang 899 Halei Road 16.8 2Q 2024 Zhangjian
Slide 61: Greater Tokyo Office – Market Overview
Greater Tokyo Office – Market Overview Projected supply in 2024 expected to be half the amount in 2023, supporting occupancies and rents Map of Office Markets Planned New Supply (2024 – 2026)1 Area Expected Submarket Property (tsubo) Completion Tokyo 5 wards TODA Building 14,006.0 3Q 2024 Tokyo 5 wa
Slide 62: Seoul Office – Market Overview
Seoul Office – Market Overview Favourable market dynamics expected to continue given sustained demand and no significant office supply expected until 2026 Planned New Supply (2024 – 2026) Map of Major Office Submarkets Area (million Expected Submarket Property pyeong) Completion Central Business Dis
Slide 63: Appendix 2: Other Asset Information
Appendix 2: Other Asset Information The Pinnacle Gangnam, South Korea
Slide 64: 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 N.A.1 2016 2019 Leasehold 99 years Strata Lease from 25 August 20
Slide 65: 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 66: 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, East 3rd Blocks 1 to 5 and 7 to 9, No.80 Tat Chee Avenue, 343, Hakdong-ro, Gangnam- Address Ring Road North, Chaoyang
Slide 67: 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 68: 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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