Mapletree Industrial Trust · SGX:ME8U

Mapletree Industrial Trust — Q4 2022 Earnings Presentation

33 slides from Mapletree Industrial Trust's earnings presentation, Apr 26, 2022

  1. Slide 1: 4Q & FY21/22 Financial Results

    4Q & FY21/22 Financial Results 26 April 2022

  2. Slide 2: Important Notice

    Important Notice This presentation shall be read in conjunction with Mapletree Industrial Trust’s (“MIT”) financial results for Fourth Quarter Financial Year 2021/2022 in the SGXNET announcement dated 26 April 2022. This presentation is for information only and does not constitute an offer or solici

  3. Slide 3: Contents

    Contents 01 Key Highlights – 1 Apr 2021 to 31 Mar 2022 02 4Q & FY21/22 Financial Performance 03 Portfolio Update 04 Investment Update 05 Outlook and Strategy 3

  4. Slide 4: Key Highlights 1 Apr 2021 to 31 Mar 2022

    KEY HIGHLIGHTS 1 APR 2021 TO 31 MAR 2022 Data Centres, 13831 Katy Freeway, Houston

  5. Slide 5: Key Highlights

    Key Highlights  Growth driven by contributions from acquisitions of data centres in North America • FY21/22 Distributable Income: S$350.9 million ( 18.8% y-o-y) • FY21/22 DPU: 13.80 cents ( 10.0% y-o-y) • 4QFY21/22 Distributable Income and DPU were S$90.3 million ( 27.7% y-o-y) and 3.49 cents ( 5.8

  6. Slide 6: Sustainable and Growing Returns

    Sustainable and Growing Returns Distributable Income DPU (S$ million) (cents) 3.49 3.47 3.49 100 3.283.30 3.35 3.50 3.16 3.103.13 3.10 90.3 90 88.4 89.5 2.852.87 81.1 82.7 3.00 80 72.9 70.7 69.469.270.6 2.50 70 63.263.5 60 2.00 50 1.50 40 30 1.00 20 0.50 10 0 0.00 3Q¹ 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2

  7. Slide 7: Building a Climate Resilient Portfolio

    Building a Climate Resilient Portfolio Long-term Targets By FY29/30 Average Building Average Building Total Solar Energy Electricity Intensity1 GHG Emissions Intensity1 Generating Capacity ▼15% ▼17% 10,000 kWp Accelerate Adoption of Attain Green Building Renewable Energy Certifications Achievements

  8. Slide 8: 4Q & FY21/22 Financial Performance

    4Q & FY21/22 FINANCIAL PERFORMANCE Hi-Tech Buildings, build-to-suit project for HP

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

    Statement of Profit or Loss (Year-on-Year) 4QFY21/22 4QFY20/21  / () (S$’000) (S$’000) Gross revenue 164,092 121,062 35.5% Property operating expenses (39,885) (29,254) 36.3% Net property income 124,207 91,808 35.3% Borrowing costs (18,979) (14,797) 28.3% Trust expenses 1 (20,913) (12,237) 70.9% N

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

    Statement of Profit or Loss (Year-on-Year) FY21/22 FY20/21  / ( ) (S$’000) (S$’000) Gross revenue 610,063 447,203 36.4% Property operating expenses (138,082) (96,212) 43.5% Net property incom e 471,981 350,991 34.5% Borrow ing costs (70,857) (52,888) 34.0% Trust expenses 1 (57,868) (42,285) 36.9%

  11. Slide 11: Statement of Profit or Loss (Qtr-on-Qtr)

    Statement of Profit or Loss (Qtr-on-Qtr) 4QFY21/22 3QFY21/22  / ( ) (S$’000) (S$’000) Gross revenue 164,092 162,352 1.1% Property operating expenses (39,885) (39,617) 0.7% Net property incom e 124,207 122,735 1.2% Borrow ing costs (18,979) (19,240) (1.4%) Trust expenses 1 (20,913) (13,290) 57.4% G

  12. Slide 12: Statement of Financial Position

    Statement of Financial Position 31 Mar 2022 31 Dec 2021  / () 31 Mar 2021  / () Total assets (S$’000) 8,479,971 8,336,785 1.7% 6,391,619 32.7% Total liabilities (S$’000) 3,201,113 3,254,186 (1.6%) 2,496,619 28.2% Net assets attributable to 4,977,056 4,783,127 4.1% 3,895,000 27.8% Unitholders (S$

  13. Slide 13: Portfolio Valuation

    Portfolio Valuation Valuation as at 31 Mar 2022 Valuation as at Property segment Local currency 31 Mar 2021 Capitalisation rate S$ million 1 (S$ million)2 (million) Data Centres (Singapore) S$282.0 282.0 406.8 6.00% to 6.50% Hi-Tech Buildings S$1,415.0 1,415.0 1,374.5 5.25% to 6.75% Business Park Bu

  14. Slide 14: Strong Balance Sheet

    Strong Balance Sheet 31 Mar 2022 31 Dec 2021 Total debt S$2,904.1 million S$2,975.5 million Weighted average tenor of debt 3.8 years 3.5 years Aggregate leverage ratio1 38.4% 39.9% Strong balance sheet to pursue growth opportunities  ‘BBB+’ rating with Stable Outlook by Fitch Ratings  100% of loan

  15. Slide 15: Well Diversified Debt Maturity Profile

    Well Diversified Debt Maturity Profile DEBT MATURITY PROFILE As at 31 March 2022 30.8% 16.9% 16.2% 13.3% 893.7 8.9% 9.6% 411.1 491.2 341.1 81.9 4.3% 280.1 - 175.0 125.0 45.0 60.0 - - - FY22/23 FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 MTN Bank Loans Amounts in S$ million Weighted Average Tenor

  16. Slide 16: Risk Management

    Risk Management 31 Mar 2022 31 Dec 2021 Fixed as a % of total debt 70.5% 79.7% Weighted average hedge tenor 3.6 years 3.3 years Weighted average all-in funding 2.4% 2.3% cost for the quarter Interest coverage ratio (“ICR”) 5.7 times 6.4 times for the quarter ICR for the trailing 12 months1 6.4 times

  17. Slide 17: Portfolio Update

    PORTFOLIO UPDATE Business Park Buildings, The Strategy and The Synergy

  18. Slide 18: 143 Properties Across 6 Property Segments

    143 Properties Across 6 Property Segments S$8.8 billion1 24.2 million2 >2,000 tenants AUM NLA (sq ft) Tenant Base Light Industrial Buildings Stack-up/Ramp-up 0.8% Data Centres: 54.1% Buildings North America: 50.7% 5.6% Singapore: 3.4% Flatted Factories 16.7% Data Centres Flatted Factories AUM1 Bus

  19. Slide 19: Portfolio Overview

    Portfolio Overview Singapore North American Overall Portfolio Portfolio Portfolio Number of properties 86 57 143 NLA (million sq ft) 15.9 8.31 24.21 Occupancy (%) 4QFY21/22 94.4 93.3 94.02 3QFY21/22 93.7 93.3 93.62 SEGMENTAL OCCUPANCY RATES1 2 2 98.6% 98.6% 97.6% 97.0% 93.9% 93.9% 92.0% 93.6% 93.6%2

  20. Slide 20: Lease Expiry Profile

    Lease Expiry Profile EXPIRING LEASES BY GROSS RENTAL INCOME1 As at 31 March 2022 WALE based on date of commencement of leases (years) 2 North American Portfolio 6.1 Singapore Portfolio 2.7 Overall Portfolio1 4.1 34.9% 21.5% 14.2% 13.2% 10.9% 5.3% FY22/23 FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 & Bey

  21. Slide 21: Large and Diversified Tenant Base

    Large and Diversified Tenant Base TOP 10 TENANTS BY GROSS RENTAL INCOME1 As at 31 March 2022 6.1%  Over 2,000 tenants  Largest tenant contributes 6.1% of Portfolio’s Gross Rental Income 5.4%  Top 10 tenants forms about 29.5% of Portfolio’s Gross Rental Income Hi-Tech Buildings Data Centres 3.1% 3

  22. Slide 22: Tenant Diversification Across Trade Sectors

    Tenant Diversification Across Trade Sectors1 No single trade sector accounted >17% of Portfolio’s Gross Rental Income By Gross Rental Income As at 31 Mar 2022 1 Based on MIT’s 50% interest of the joint venture with MIPL in three fully fitted hyperscale data centres and 10 powered shell data centres

  23. Slide 23: Singapore Portfolio Performance

    Singapore Portfolio Performance Occupancy Gross Rental Rate S$ psf/mth 100% $2.50 94.4% 93.6% 93.7% 92.9% 93.4% 92.2% 91.5% 90.5% 90.2% 90.5% 90.7% 90.2% 90% $2.13 $2.13 $2.13 $2.12 $2.11 $2.13 $2.10 $2.10 80% $2.11 $2.08 $2.03 $2.05 $2.00 70% 60% 50% $1.50 40% 30% $1.00 20% 10% 0% $0.50 3Q 4Q 1Q 2Q

  24. Slide 24: Rental Revisions (Singapore)

    Rental Revisions (Singapore) GROSS RENTAL RATE (S$ PSF/MTH) 1 Before Renewal For Period 4QFY21/22 After Renewal $3.88 $3.80 New Leases $3.66 Passing Rent $3.49 $3.23 $2.44 $2.49 $1.75 $1.90 $1.71 $1.72 $1.60 $1.32 $1.36 $1.27 $1.40 $1.28 Hi-Tech Buildings Business Park Buildings Flatted Factories St

  25. Slide 25: Healthy Tenant Retention (Singapore)

    Healthy Tenant Retention (Singapore) LONG STAYING TENANTS RETENTION RATE FOR 4QFY21/22 Up to 1 yr 15.0% >10 yrs 97.3% 31.7% 84.2% 83.9% 80.9% >1 to 2 yrs 70.5% 8.0% 4 yrs or less More than 39.5% 4 yrs > 2 to 3 yrs 60.5% 8.5% >3 to 4 yrs N.A. N.A. 8.0% Data Hi-Tech Business Flatted Stack-up / Light S

  26. Slide 26: Investment Update

    INVESTMENT UPDATE Data Centres, 44490 Chilum Place (ACC2), Northern Virginia

  27. Slide 27: Redevelopment – Kolam Ayer

    Redevelopment – Kolam Ayer 21 161, 163 & 165 Kallang Way 1 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

  28. Slide 28: Divestment – 19 Changi South Street 1

    Divestment – 19 Changi South Street 1 Sale Price GFA Completed S$13.0 million 82,737 sq ft 21 Apr 2022  Completed divestment of a two-storey Light Industrial Building with a four-storey extension block located within the Changi South Industrial Estate  30-year land lease commencing from 16 Nov 199

  29. Slide 29: Outlook and Strategy

    OUTLOOK AND Data Centres, 7337 Trade Street, San Diego STRATEGY

  30. Slide 30: Outlook – Singapore

    Outlook Singapore  Challenging operating environment in view of uncertainty over trajectory of economic recovery from COVID-19 pandemic • Singapore economy grew by 3.4% y-o-y in the quarter ended 31 Mar 2022, moderating from the 6.1% growth in the preceding quarter1 • Rising energy prices and suppl

  31. Slide 31: Outlook – North America

    Outlook North America  Resilient asset class with growth opportunities • According to CBRE3, primary market supply grew 17% y-o-y to 3,358.1 megawatts in 2021. Cloud service providers and social media companies were responsible for the bulk of leasing activity in 2021 • Rental rates held steady in

  32. Slide 32: Diversified and Resilient

    Diversified and Resilient  Anchored by large and diversified tenant base with low dependence Stable and on any single tenant or trade sector Resilient Portfolio  Focus on tenant retention to maintain a stable portfolio occupancy  Application of distribution reinvestment plan to help fund progress

  33. Slide 33: 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

Mapletree Industrial Trust — Q4 2022 Earnings Presentation on 6ix