Mapletree Industrial Trust · SGX:ME8U

Mapletree Industrial Trust — Q2 2020 Earnings Presentation

35 slides from Mapletree Industrial Trust's earnings presentation, Oct 22, 2019

  1. Slide 1: 2Q & 1HFY19/20 Financial Results

    2Q & 1HFY19/20 Financial Results 22 October 2019

  2. Slide 2: Important Notice

    Important Notice This presentation shall be read in conjunction with Mapletree Industrial Trust’s (“MIT”) financial results for Second Quarter Financial Year 2019/2020 in the SGXNET announcement dated 22 October 2019. This presentation is for information only and does not constitute an offer or soli

  3. Slide 3: Contents

    Contents 1 Key Highlights – 1 Jul 2019 to 30 Sep 2019 2 2Q & 1HFY19/20 Financial Performance 3 Portfolio Update 4 Investment Update 5 Outlook and Strategy 3

  4. Slide 4: Key Highlights 1 Jul 2019 to 30 Sep 2019

    KEY HIGHLIGHTS 1 JUL 2019 TO 30 SEP 2019 Hi-Tech Building, 18 Tai Seng

  5. Slide 5: Key Highlights

    Key Highlights  Growth underpinned by contributions from new projects • 2QFY19/20 Distributable Income: S$63.5 million ( 12.1% y-o-y) • 2QFY19/20 DPU: 3.13 cents ( 4.0% y-o-y)  Portfolio update • Overall Portfolio occupancy of 90.5% • Overall Portfolio’s WALE increased q-o-q from 3.4 years to 3.6

  6. Slide 6: Sustainable and Growing Returns

    Sustainable and Growing Returns Distributable Income DPU (S$ million) (cents) 3.13 70 3.07 3.08 3.10 3.20 3.00 3.00 3.01 2.95 2.85 2.83 2.83 2.88 2.92 2.88 63.2 63.5 2.79 2.82 2.81 2.73 59.9 60 2.60 2.67 2.65 58.3 2.80 56.9 56.7 2.43 2.47 2.51 2.51 2.51 54.0 53.5 55.5 2.37 52.9 2.29 2.32 50.3 50.4 5

  7. Slide 7: 2Q & 1HFY19/20 Financial Performance

    2Q & 1HFY19/20 FINANCIAL PERFORMANCE Hi-Tech Buildings, build-to-suit project for HP

  8. Slide 8: Statement of Profit or Loss (Year-on-Year)

    Statement of Profit or Loss (Year-on-Year) 2QFY19/20 2QFY18/19  / () (S$’000) (S$’000) Gross revenue 101,872 92,221 10.5% Property operating expenses (21,883) (21,635) 1.1% Net property income 79,989 70,586 13.3% Borrowing costs (11,342) (10,313) 10.0% Trust expenses (9,053) (8,577) 5.5% Share of

  9. Slide 9: Statement of Profit or Loss (Year-on-Year) 1H

    Statement of Profit or Loss (Year-on-Year) 1HFY19/20 1HFY18/19  / () (S$’000) (S$’000) Gross revenue 201,447 183,708 9.7% Property operating expenses (43,539) (43,663) (0.3%) Net property income 157,908 140,045 12.8% Borrowing costs (21,918) (19,671) 11.4% Trust expenses (17,888) (16,425) 8.9% Sha

  10. Slide 10: Statement of Profit or Loss (Qtr-on-Qtr)

    Statement of Profit or Loss (Qtr-on-Qtr) 2QFY19/20 1QFY19/20  / () (S$’000) (S$’000) Gross revenue 101,872 99,575 2.3% Property operating expenses (21,883) (21,656) 1.0% Net property income 79,989 77,919 2.7% Borrowing costs (11,342) (10,576) 7.2% Trust expenses (9,053) (8,835) 2.5% Share of joint

  11. Slide 11: Balance Sheet

    Balance Sheet 30 Sep 2019 30 Jun 2019  / () Total assets (S$’000) 4,902,578 4,635,120 5.8% Total liabilities (S$’000) 1,491,320 1,556,775 (4.2%) Net assets attributable to Unitholders (S$’000) 3,411,258 3,078,345 10.8% Net asset value per Unit (S$) 1.55 1.52 2.0% 11

  12. Slide 12: Strong Balance Sheet

    Strong Balance Sheet Strong balance sheet to 30 Sep 2019 30 Jun 2019 pursue growth opportunities Total debt (MIT Group) S$1,253.5 million S$1,384.2 million  ‘BBB+’ rating with Stable Outlook by Fitch Ratings Weighted average 4.2 years 4.2 years tenor of debt Aggregate  100% of loans unsecured 29.2

  13. Slide 13: Well Diversified Debt Maturity Profile

    Well Diversified Debt Maturity Profile DEBT MATURITY PROFILE As at 30 September 2019 Weighted Average Tenor of Debt = 4.2 years 19.7% 19.5% 18.4% 14.0% 185.9 10.4% 10.0% 247.6 245.0 8.0% 175.0 70.0 125.0 100.0 0.0% 45.0 60.0 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 FY2

  14. Slide 14: Risk Management

    Risk Management 30 Sep 2019 30 Jun 2019  100% capital hedge: US$ investment in joint Fixed as a % of venture matched with 87.9% 79.5% total debt US$ borrowings Weighted average 4.2 years 4.3 years hedge tenor  About 89% of 2QFY19/20 1QFY19/20 3QFY19/20 net US$ income stream are Weighted average he

  15. Slide 15: Distribution Details

    Distribution Details 2QFY19/20 Distribution Period DPU (cents) 1 Jul 2019 to 30 Sep 2019 3.13 Advanced distribution from 1 Jul 2019 to 25 Sep 2019 2.93 (paid on 21 Oct 2019) Balance distribution from 26 Sep 2019 to 30 Sep 2019 0.20 (payable with 3QFY19/20 distribution) 15

  16. Slide 16: Portfolio Update

    PORTFOLIO UPDATE Business Park Buildings, The Strategy and The Synergy

  17. Slide 17: 101 Properties Across 5 Property Segments

    101 Properties Across 5 Property Segments AUM1 Total NLA (sq ft) Tenant Base S$4.8 billion 18.9 million2 >2,200 tenants Light Industrial Stack-up/Ramp-up Buildings Buildings 1.6% 9.9% Hi-Tech Buildings 43.5% Hi-Tech Buildings Business Park Buildings Business Park Buildings 12.1% AUM1 S$4.8 billion 8

  18. Slide 18: Portfolio Overview

    Portfolio Overview Singapore Portfolio US Portfolio Overall Portfolio Number of properties 87 14 101 NLA (million sq ft) 16.6 2.31 18.91 Average passing rental S$2.10 US$2.07 rate ($ psf/mth) 97.4% 97.4% 90.5% 90.2% 90.8% 90.5%2 1 Excludes the parking decks (150 Carnegie Way and 171 Carnegie Way) at

  19. Slide 19: Lease Expiry Profile

    Lease Expiry Profile EXPIRING LEASES BY GROSS RENTAL INCOME1 As at 30 September 2019 WALE based on date of commencement of leases (years)2 Singapore Portfolio 3.6 US Portfolio 4.5 Overall Portfolio1 3.6 32.8% 22.7% 19.1% 18.2% 7.2% FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 & Beyond Flatted Factories H

  20. Slide 20: Large and Diversified Tenant Base

    Large and Diversified Tenant Base TOP 10 TENANTS BY GROSS RENTAL INCOME1 As at 30 September 2019 9.1%  Over 2,200 tenants  Largest tenant contributes 9.1% of Portfolio’s Gross Rental Income  Top 10 tenants forms about 26.3% of Portfolio’s Gross Rental Income 4.1% 3.1% 2.7% 1.8% 1.2% 1.2% 1.1% 1.1

  21. Slide 21: Tenant Diversification Across Trade Sectors

    Tenant Diversification Across Trade Sectors1 No single trade sector accounted >21% of Portfolio’s Gross Rental Income By Gross Rental Income As at 30 Sep 2019 1 Based on MIT’s 40% interest of the joint venture with Mapletree Investments Pte Ltd in a portfolio of 14 data centres in the United States

  22. Slide 22: Singapore Portfolio Performance

    Singapore Portfolio Performance Gross Rental Rate Occupancy S$ psf/mth 100% $2.50 95.2% 95.4% 95.5% 94.3% 94.5% 95.1% 95.0% 94.9% 95.0% 93.9% 93.5% 93.8% 94.7% 94.6% 93.2% 92.5% 93.0% 92.5% 93.1% 92.6% 92.3% 92.1% 91.3% 90.7% 91.5% 90.8% 90.2% 90.4% 90.1% 89.6% 89.8% 90.5% 90.2% 90% 87.8% 86.2% 87.7

  23. Slide 23: Segmental Occupancy Levels (Singapore)

    Segmental Occupancy Levels (Singapore) 97.1% 96.9% 92.4% 90.4% 91.3% 90.5% 90.2% 87.9% 88.1% 81.9% 81.0% 79.3% Flatted Factories Hi-Tech Buildings Business Park Stack-up/Ramp-up Light Industrial Singapore Buildings Buildings Buildings Portfolio Right Bar Right Bar (1QFY19/20) (2QFY19/20) 23

  24. Slide 24: Rental Revisions (Singapore)

    Rental Revisions (Singapore) Gross Rental Rate (S$ psf/mth)1 For Period 2QFY19/20 Before Renewal $4.12 After Renewal $3.74 New Leases $3.22 Passing Rent $2.32 $1.82 $1.78 $1.72 $1.95 $2.00 $1.40 $1.39 $1.21 Flatted Factories Hi-Tech Buildings Business Park Buildings Stack-Up/Ramp-Up Buildings Renewa

  25. Slide 25: Healthy Tenant Retention (Singapore)

    Healthy Tenant Retention (Singapore) LONG STAYING TENANTS RETENTION RATE FOR 2QFY19/20 Up to 1 yr >10 yrs 12.1% 100.0% 100.0% 27.2% 84.1% 82.7% 84.3% >1 to 2 yrs 80.0% 8.7% 4 yrs or less More than 35.5% > 2 to 3 yrs 4 yrs 8.8% 64.5% >3 to 4 yrs 5.9% >4 to 5 yrs Flatted Hi-Tech Business Stack-up / Li

  26. Slide 26: Investment Update

    INVESTMENT UPDATE Stack-up/Ramp-up Buildings, Woodlands Spectrum

  27. Slide 27: Overview of the Proposed Acquisition and Joint Ventures

    Overview of the Proposed Acquisition and Joint Ventures 50:50 joint venture (“MIT-MIPL JV”) with Mapletree Investments (“MIPL”) to acquire 13 data centres in the US and Canada: 50% 50% Proposed  3 fully fitted hyperscale data centres (“Turnkey Portfolio”) Transaction  10 powered shell data centres

  28. Slide 28: 13 Data Centres Across the US and Canada

    13 Data Centres Across the US and Canada Key Tenants (combined 51.7% of GRI1) Occupancy WALE3 Fixed Rental Escalations Land Tenure4 3 of the top 10 largest tech 100.0% 9.1 years ≥2% p.a. for about 94.1% companies in the US2 92.2% of leases Freehold Turnkey Portfolio (US$810.6m)5 (Hyperscale Data Cen

  29. Slide 29: Capturing Growth in the Data Centre Sector

    Capturing Growth in the Data Centre Sector Access to fast-growing data centre sector  Increases MIT's exposure to Hi-Tech Buildings from 43.5%1 to 52.9%  Increases MIT's exposure to overseas data centres from 9.2%1 to 24.3%  The Sponsor has granted MIT the right of first refusal (“ROFR”) to acqui

  30. Slide 30: Upgrading – 7 Tai Seng Drive

    Upgrading – 7 Tai Seng Drive Total Project Cost S$95.0 million1 GFA 256,600 sq ft Completion Lease Commencement 7 Tai Seng Drive (after upgrading into a data centre) 3 Jul 2019 20 Jul 20192  Upgraded the seven-storey property into a data centre  Upgrading works included increasing power and floor

  31. Slide 31: Redevelopment – Kolam Ayer 2

    Redevelopment – Kolam Ayer 2 Property GFA Plot Ratio Kolam Ayer 2 Cluster Two Flatted Factories and an amenity centre 506,720 sq ft 1.5 New Hi-Tech Buildings, including a After Redevelopment 865,600 sq ft 2.5 seven-storey BTS Facility for Anchor Tenant Artist’s impression of MIT’s new high-tech indu

  32. Slide 32: Outlook and Strategy

    OUTLOOK AND STRATEGY Hi-Tech Buildings, 7337 Trade Street, San Diego

  33. Slide 33: Outlook

    Outlook Singapore  Challenging operating environment • Singapore economy grew by 0.1% y-o-y in the quarter ended 30 Sep 2019, same pace of growth in the preceding quarter¹ • Local business confidence fell to a near two-year low for the fourth quarter of 2019, after edging up slightly in the precedi

  34. Slide 34: Resilient and Poised for Growth

    Resilient and Poised for Growth  Overall Portfolio’s WALE  Successfully raised  Embarking on its largest increased q-o-q from about S$400.0 million redevelopment project 3.4 years to 3.6 years from a private at Kolam Ayer with as at 30 Sep 2019 placement to partly fund 24.4% of space the US Acqui

  35. Slide 35: End of Presentation

    End of Presentation For enquiries, please contact Ms Melissa Tan, Director, Investor Relations, DID: (65) 6377 6113, Email: melissa.tanhl@mapletree.com.sg

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