Singapore Exchange Ltd. · SGX:S68

Singapore Exchange — Mapletree Commercial Trust — Q1 FY17/18 Earnings Presentation

25 slides from Singapore Exchange's earnings presentation, Jul 27, 2017

  1. Slide 1: Mapletree Commercial Trust 1Q FY17/18 Financial Results

    Mapletree Commercial Trust 1Q FY17/18 Financial Results 27 July 2017 1

  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 units in MCT (“Units”). The past performance of the Units and MCT is not indic

  3. Slide 3: Agenda

    Agenda  Key Highlights  Financial Performance  Portfolio Updates  Outlook 3

  4. Slide 4: Key Highlights

    Key Highlights VivoCity 4

  5. Slide 5: Key Highlights: Financial and Portfolio Performance

    Key Highlights Financial Performance  Gross revenue and net property income (“NPI”) for 1Q FY17/18 grew 46.9% and 49.6% respectively from 1Q FY16/17  Distribution per unit (“DPU”) for 1Q FY17/18 grew 9.9% to 2.23 Singapore cents, driven by the accretive acquisition of Mapletree Business City I (“M

  6. Slide 6: Key Highlights: Capital Management

    Key Highlights Capital Management  Well-distributed debt maturity profile, with no more than 20% of debt due for refinancing in any financial year. No refinancing due in FY17/18  Maintained healthy balance sheet with 36.4% aggregate leverage and 3.8 years average term to maturity of debt. Weighted

  7. Slide 7: Financial Performance

    Financial Performance Bank of America Merrill Lynch HarbourFront 7

  8. Slide 8: 1Q FY17/18 Financial Scorecard

    1Q FY17/18 Financial Scorecard 1Q FY17/18 DPU up 9.9% to 2.23 Singapore cents Led by Positive Contributions from MBC I, VivoCity, Mapletree Anson and PSA Building S$’000 unless otherwise stated 1Q FY17/18 1Q FY16/17 Variance Gross Revenue 107,766 73,377 46.9% Property Operating Expenses (23,585) (17

  9. Slide 9: Balance Sheet

    Balance Sheet Robust Balance Sheet through Proactive Capital Management As at As at S$’000 unless otherwise stated 30 June 2017 31 March 2017 Investment Properties 6,341,720 6,337,000 Other Assets 56,847 68,653 Total Assets 6,398,567 6,405,653 Borrowings 2,328,498 2,329,754 Other Liabilities 115,930

  10. Slide 10: Key Financial Indicators

    Key Financial Indicators Maintained Healthy Financial Indicators As at As at 30 June 2017 31 March 2017 Total Debt Outstanding S$2,327.6 mil S$2,327.6 mil % Fixed Debt 73.7% 81.2% Gearing Ratio 36.4%1 36.3% Interest Coverage Ratio (YTD) 4.9 times 4.9 times Average Term to Maturity of Debt 3.8 years

  11. Slide 11: Debt Maturity Profile (as at June 2017)

    Debt Maturity Profile (as at 30 June 2017) Well-Distributed with less than 20% of Debt Due for Refinancing in Any Financial Year Total gross debt: S$2,327.6 mil • No refinancing due in FY17/18 452.7 464.0 Fixed Rate Notes 439.3 Bank Debt 397.6 70.0 Gross Debt (S$ mil) 50.0 160.0 200.0 314.0 175.0 34

  12. Slide 12: Distribution Details

    Distribution Details 1Q FY17/18 DPU of 2.23 Singapore cents Distribution Period 1 April 2017 – 30 June 2017 Distribution Amount 2.23 Singapore cents per unit Distribution Timetable Notice of Books Closure Date Thursday, 27 July 2017 Last Day of Trading on “cum” Basis Tuesday, 1 August 2017 Ex-Date W

  13. Slide 13: Portfolio Updates

    Key Highlights Portfolio Updates Mapletree Business City I 13

  14. Slide 14: Portfolio Revenue and Net Property Income

    Portfolio Revenue and Net Property Income Strong Growth in Gross Revenue and NPI Driven by MBC I Existing Portfolio1 Gross Revenue and NPI up 4.1% and 3.4% respectively Gross Revenue Net Property Income 46.9% 49.6% 2 84.2 107.8 26.0 31.4 56.3 73.4 3.4 4.4 3.7 (S$mil) 4.6 (S$mil) 6.5 7.0 8.1 8.7 12.4

  15. Slide 15: Portfolio Occupancy

    Portfolio Occupancy Overall Portfolio Committed Occupancy at 98.5% As at As at 31 March 2017 30 June 2017 VivoCity 99.0% 98.9%1 MBC I 99.0% 99.1%2 3 PSA Building 98.3% 95.5% Mapletree Anson 100% 99.2% MLHF 79.2% 91.6% MCT Portfolio 97.9% 98.1% 1. Committed occupancy for VivoCity is 99.6% 2. Committe

  16. Slide 16: 1Q FY17/18 Leasing Update

    1Q FY17/18 Leasing Update Achieved 0.5% Rental Uplift for Entire Portfolio in 1Q FY17/18 Number of Leases Retention Rate % Change in 1 Committed (by NLA) Fixed Rents Retail 57 79.4% 1.7%2 Office/ 8 69.4% -3.3%3 Business Park3 MCT Portfolio 65 74.4% 0.5% 1. Based on average of the fixed rents over th

  17. Slide 17: Lease Expiry Profile (as at June 2017)

    Lease Expiry Profile (as at 30 June 2017) Portfolio Resilience Supported by Manageable Lease Expiries Portfolio WALE 2.7 years Office/Business Park 3.4 years Retail 2.0 years 18.2% 17.6% 14.6% 14.4% As % of Gross Rental Revenue 7.9% 6.9% 7.2% 5.0% 4.4% 3.9% FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 &

  18. Slide 18: VivoCity – Shopper Traffic and Tenant Sales

    VivoCity – Shopper Traffic and Tenant Sales Continued Growth in Shopper Traffic and Tenant Sales 1 Shopper Traffic (mil) Tenant Sales (S$ mil) 7.2% 3.8% 230.0 227.2 218.8 14.0 13.4 220.0 12.5 12.0 210.0 200.0 10.0 190.0 8.0 180.0 6.0 170.0 4.0 160.0 2.0 150.0 1Q FY16/17 1Q FY17/18 1Q FY16/17 1Q FY17

  19. Slide 19: VivoCity – Asset Enhancement Initiatives

    VivoCity – Asset Enhancement Initiatives Ongoing Conversion of Space on Level 1 and Level 2 to Improve Yield  Fully committed with estimated ROI of approximately 25% on stabilised basis1  Shops progressively commenced trading from May 2017. AEI expected to complete by 2Q FY17/18 1. Based on estima

  20. Slide 20: VivoCity – Asset Enhancement Initiatives: Public Library

    VivoCity – Asset Enhancement Initiatives Adding a Public Library on Level 3 to strengthen VivoCity’s offerings  Convert part of Level 3 to a 3,000 square metre public library, with bonus GFA granted under the CSFS  Further enhances VivoCity’s positioning as a family-centric destination mall  AEI

  21. Slide 21: VivoCity – Focusing on Families and Children

    VivoCity – Focusing on Families and Children Successful Launch of VivoCity Kids Club  Overwhelming and positive response from shoppers  More than 5,500 registered kids club members over launch weekend (17-18 June 2017)  Complements VivoCity’s family-centric positioning and encourages continued pa

  22. Slide 22: Outlook

    Outlook VivoCity 22

  23. Slide 23: Outlook: Singapore Economy, Retail and Office

    Outlook Singapore Economy  The Singapore economy grew 2.5% year-on-year in the second quarter of 2017, the same pace of growth as in the previous quarter. On a quarter-on-quarter seasonally-adjusted annualised basis, the economy expanded 0.4%, in contrast to the 1.9% contraction in the preceding qu

  24. Slide 24: Outlook: Business Park and Overall

    Outlook Business Park  According to CBRE, Q2 2017 was a relatively muted quarter. While leasing and enquiry activity has been slow in recent quarters, business parks in the city fringe have remained competitive as they offer very high-quality products in well-connected locations.  Looking forward,

  25. Slide 25: Thank You

    Thank You For enquiries, please contact: Teng Li Yeng Investor Relations Tel: +65 6377 6836 Email: teng.liyeng@mapletree.com.sg 25

Mapletree Commercial Trust — Q1 FY17/18 Earnings Presentation on 6ix