Mapletree Logistics Trust · SGX:M44U
Mapletree Logistics Trust — Non-Deal Roadshow (September 2006)
50 slides from Mapletree Logistics Trust's roadshow presentation, September 2006
Slide 1: Non-deal Roadshow
Non-deal Roadshow September 2006
Slide 2: Agenda
Agenda MapletreeLog – first pan-Asia logistics REIT Yield plus Growth Strategy ¾ Growth by acquisition ¾ Tailored leasing strategy ¾ Asset enhancement Sponsor’s Development Pipeline A More Resilient Portfolio Capital Management Outlook 1 1
Slide 3: Compelling investment story
Compelling investment story Successful track record since IPO Experienced Sound strategy for future growth management team Asset size of 32 properties valued ~ S$1.1 billion, +152% since IPO Unique pan-Asian logistics play Focused on Asia High growth sector across the region logistics Sc
Slide 4: First Pan-Asia Logistics REIT
First Pan-Asia Logistics REIT
Slide 5: Overview of MapletreeLog
Overview of MapletreeLog The first Asia-focused logistics REIT in Singapore Competencies in the logistics arena, due to its Sponsor’s historical links with Port Authority of Singapore Focus: Logistics-related real estate assets in Asia Existing Asset Base: 32 properties in Singapore, Hong Kong
Slide 6: Structure of MapletreeLog
Structure of MapletreeLog The Other Sponsor Unitholders Holding Distributions of units Manager Trustee Management Acts on behalf Mapletree fees of Unitholders HSBC Logistics Institutional Trust Management Trustee fees Trust Services Management services Ownership of Net property assets income Propert
Slide 7: Organisation Structure of the Manager
Organisation Structure of the Manager Board of Directors Chairman Mr Paul Ma Kah Woh Chief Executive Officer Mr Chua Tiow Chye Investment Asset Mgt Finance Investor China Hong Kong Malaysia Vietnam Japan SVP SM CFO Relations GM DGM GM SM SM Cindy Chow Chen Tze Hui Richard Lai Mgr Derek Ng Andy Tsang
Slide 8: The Sponsor - Mapletree Investments
The Sponsor - Mapletree Investments A leading real estate company in Singapore with an asset base of ~ S$3 billion¹ Previously part of PSA ¾ One of the largest owners and managers of logistics real estate ¾ Long-standing and close relationships with logistics and shipping operators Key focus a
Slide 9: Significant Trade and Economic Growth…
Significant Trade and Economic Growth… …will boost logistics related activities What is logistics? ¾ “the process of planning, implementing and controlling the efficient, effective flow and storage of goods, services and related information from point of origin to point of consumption for the purp
Slide 10: Growth Spurs Demand For Logistics Services
Growth Spurs Demand For Logistics Services Real GDP growth Region leading global growth 8 7 Asia Pacific ex-Japan Asia is gaining momentum as 6 factories of the world, especially Real GDP growth (%) 5 China US 4 3 With growing affluence, Asia is not 2 only a competitive producer but will Western
Slide 11: Asian Logistics On A Growth Path
Asian Logistics On A Growth Path Zooming in on key cargo hubs … The World’s Major Cargo Hubs are in Asia Significant Trade and Economic Growth… ♦ Singapore, Hong Kong and China dominate ♦ …will boost logistics related activities in these three markets Sea Cargo 3,500 Rank Seaport (m) Airport Air Car
Slide 12: MapletreeLog's Geographical Spread
MapletreeLog’s Geographical Spread Country Allocation - By Gross Revenue Country Allocation - By NPI China Malaysia China Malaysia 3% 1% 3% 1% Hong Kong 32% Hong Kong 35% Singapore Singapore 61% 64% Gross revenue of S$18.7m in 2Q06 NPI of S$9.6m in 2Q06 11 11 (53 (75
Slide 13: MapletreeLog's 43 Properties
MapletreeLog’s 43 Properties (including announced acquisitions that have not yet been completed) as at 31 Aug 2006 Singapore (29 properties) Food & Cold Storage Industrial Warehousing FTZ 3PL Non-FTZ 3PL Distribution Centre Logistics 70 Alps Avenue 6 Changi South Lane Tang Logistics Centre Tentat Di
Slide 14: MapletreeLog's 43 Properties
MapletreeLog’s 43 Properties (including announced acquisitions that have not yet been completed) as at 31 Aug 2006 Hong Kong (6 properties) Malaysia (7 properties) China (1 property) Non-FTZ 3PL Non-FTZ 3PL Industrial Warehousing Non-FTZ 3PL Shatin No. 3 Shibusawa (HK) Lot 6, Persiaran Budiman Pucho
Slide 15: Financial Highlights
Financial Highlights 2Q 2006 vs 1Q 2006 IN S$ THOUSANDS 2Q 2006 1Q 2006 Variance GROSS REVENUE 18,706 13,364 40.0% PROPERTY EXPENSES -2,551 -2,101 21.4% NET PROPERTY INCOME 16,155 11,263 43.4% DISTRIBUTABLE INCOME 9,618 8,323 15.6% 1 2 AVAILABLE DPU (CENTS) 1.19 1.11 7.2% 1. Based on 811,264,635 uni
Slide 16: Financial Highlights
Financial Highlights 2Q 2006 Actual vs Forecast 1 IN S$ THOUSANDS Actual Forecast Variance GROSS REVENUE 18,706 16,120 16.0% PROPERTY EXPENSES -2,551 -3,044 -16.2% NET PROPERTY INCOME 16,155 13,076 23.5% DISTRIBUTABLE INCOME 9,618 9,282 3.6% AVAILABLE DPU (CENTS) 1.19 1.14 4.4% 1. The Forecast figur
Slide 17: Scorecard since IPO
Scorecard since IPO DPU growing progressively as pace of acquisitions gathers momentum Asset Value S$422.0m S$461.8m S$715.4m S$1.0b ~ S$1.2b* 43 45 1.55 40 Announced 1.45 acquisitions Number of properties 35 pending Actual DPU (cents) 28 completion 1.35 30 24 1.25 25 1.19 18 1.15 20 1.11 Quarterise
Slide 18: Yield plus Growth
Yield plus Growth
Slide 19: Yield + Growth Strategy
Yield + Growth Strategy Strategy Execution Singapore remains core around 50% 1 Growth by Acquisitions Harness healthy arbitrage in regional markets Singapore: long leases + built in 2 Tailored Leasing escalation Strategy High growth markets: short leases to tap strong rental reversions Pul
Slide 20: Acquisition Pipeline Gaining Momentum
1 Acquisition Pipeline Gaining Momentum Sustained Long-Term Growth First Right over Sponsor’s Third Party Acquisitions Medium-Term Development Projects Singapore : Build-to-suit IPO1 to 31 Aug 06 32 acquisitions 2H 2006 completed Malaysia : ~ S$1,064m BTS/Logistics Centres 11 Acquisitions China : Ta
Slide 21: Optimise Leasing Strategies
2 Optimise Leasing Strategies Adopt different leasing strategies for different markets… Market Rental Reversion Lease Rental Escalation 8.0 Vietnam SECURE STRATEGIC FOOTHOLD & INCREASE MARKET SHARE: DEVELOPING 7.5 Short leases with reversion Estimated Total Risk-Adjusted Returns (%) growth or long l
Slide 22: Asset Enhancement
3 Asset Enhancement Pulau Sebarok TIC Tech Centre largest property by land 5th largest by lettable area area NPI Yield +60 bps NPI Yield NPI Yield +30 bps +65 bps Before After Before Higher Extension Occupancy 21 21
Slide 23: Manager Expanding On-the-ground Presence
Manager Expanding On-the-ground Presence Currently exploring Japan, India, Thailand & South Korea … Japan Shanghai Hong Kong Tier 1 Singapore, Hong Kong Vietnam China, Malaysia, Tier 2 Vietnam, Japan Malaysia Singapore India, South Korea, Tier 3 Thailand Indonesia, Tier 4 Established offices The Phi
Slide 24: Sponsor's Development Pipeline
Sponsor’s Development Pipeline
Slide 25: Sponsor's Development Pipeline
Sponsor’s Development Pipeline MapletreeLog has first right of refusal ¾ To Sponsor’s development pipeline Mapletree’s development projects in China ¾ Lingang Free Port: Æ two blocks of warehouses; combined gross floor area of 46,500 sqm Æ completion targeted for Sep-06 ¾ Tianjin Airport: Æ 5.26
Slide 26: Lingang Free Port
Lingang Free Port Mapletree signed agreement to invest in two multi-tenanted warehouses in Lingang Shanghai Bonded facility located within Yangshan free port zone Ideal consolidation/ deconsolidation centre for international trade Supported by China-Europe international trade routes and pote
Slide 27: Tianjin Airport Logistics Centre
Tianjin Airport Logistics Centre Mapletree signed LOI in July to develop a 54,000 sqm of warehouse on 5.26 ha of land in the Tianjin Airport International Logistics Zone This is the last remaining plot in the bonded logistics park Construction scheduled to start in Sep 2006 China Administrat
Slide 28: Vietnam – VSIP I
Vietnam – VSIP I Multi-tenanted Logistics and Warehousing Facility in VSIP I VSIP II ¾ Gross floor area of 23,600 sqm VSIP II ¾ Completion targeted for end-2006 ¾ Two potential tenant companies have expressed interest in leasing a combined 62% of total leaseable area VSIP I 27 27
Slide 29: Vietnam – VSIP II
Vietnam – VSIP II 56 hectares land area Located in the heart of Binh Duong Township Five-phase development Comprises non-bonded warehouses and a Free Trade Zone with on-site customs office & bonded warehouses Build-to-suit facilities as well as multi-tenanted logistics and warehousing faci
Slide 30: A More Resilient Portfolio
A More Resilient Portfolio i
Slide 31: Portfolio Up 152% from IPO
Portfolio Up 152% from IPO 32 assets valued at ~S$1,063.7 million as at 31 Aug 2006 Asset Purchase Price1/ Date of Tenant Net Lettable 1 Valuation (S$m) completion Area (sqm) Singapore 1 TIC Tech Centre 52.5 28 Jul 05 Multi-tenanted 30,758 2 KLW Industrial Building 17.0 28 Jul 05 KLW Wood Products P
Slide 32: Portfolio Up 152% from IPO
Portfolio Up 152% from IPO Asset Purchase Price1/ Date of Tenant Net Lettable 1 Valuation (S$m) completion Area (sqm) Hong Kong 26 Tsuen Wan No. 1 45.4 26 Jan 06 Multi-tenanted 17,094 27 Shatin No. 2 73.0 26 Jan 06 Multi-tenanted 25,853 28 Shatin No. 3 2 69.0 26 Jan 06 Multi-tenanted 24,346 29 Shati
Slide 33: Announced Acquisitions Pending Completions
Announced Acquisitions Pending Completions 11 additional acquisitions announced as at 31 Aug 06 Asset Purchase price1 (S$m) Singapore Enlarged portfolio 1 7 Tai Seng Drive 38.0 size (for 43 2 138 Joo Seng Road 13.0 3 4 Tuas Ave 5 13.0 properties) 4 4 Toh Tuck Link 11.0 ~ S$1.2b … Sub-Total 75.0 Mala
Slide 34: Tenant Diversification
1 Tenant Diversification Further reduction in top ten tenants concentration from 45.6% to 43.9% Top 10 tenants by Gross Revenue 12% 10.9% Multinational logistics operators 10% 9.5% Singapore listed groups Private groups 8% 7.1% 6.1% 6.0% 6% 4.6% 4.5% 4.4% 3.8% 3.8% 3.5% 4% 3.4% 2.9% 2.9% 2.8% 3.0% 2
Slide 35: Increased Exposure to Professional 3PLs
2 Increased Exposure to Professional 3PLs Enhances scope and opportunities … Gross revenue contribution by trade sector Gross revenue contribution by trade sector (24 Properties as at 31 Mar 2006) (28 Properties as at 30 Jun 2006) Oil & Chemical FTZ 3PL Oil & Chemical FTZ 3PL Logistics 14.9% Logisti
Slide 36: Improved Occupancies
3 Improved Occupancies Property Weighted Average % of Total Property Weighted Average % of Total Occupancy Rate Gross Occupancy Rate Gross Revenue Revenue FTZ 3PL Food & Cold Storage 70 Alps Avenue 100.0% 5.8% CIAS Flight Kitchen 100.0% 1.9% 60 Alps Avenue 100.0% 2.8% 201 Keppel Road 100.0% 2.0% 61
Slide 37: Shorter Leases to Tap Growing Markets
4 Shorter Leases to Tap Growing Markets Lease Expiry Profile by Gross Revenue 70% 59.2% 60% 50% 47.0% 40% 30% 20% 14.8% 13.6% 10.8% 10.5% 11.7% 7.7% 6.5% 10% 6.0% 5.9% 6.4% 0% Expiring in 2006 Expiring in 2007 Expiring in 2008 Expiring in 2009 Expiring in 2010 Expiring after 2010 24 Properties as at
Slide 38: Geographical Diversification
5 Geographical Diversification Portfolio by Asset Value1 24 Properties as at 31 Mar 2006 28 Properties as at 30 June 2006 Malaysia China 2.0% Hong Kong 2.5% 25.4% Hong Kong Singapore 42.2% 53.3% Singapore 74.6% 1. Figures in % refer to country allocation in terms of portfolio value (S$m) 37 37 (53 (
Slide 39: Unexpired Lease of Underlying Land
6 Unexpired Lease of Underlying Land Remaining Years to Expiry of Underlying Land Lease 70% 59.7% 60% 54.9% % of Total Lettable Area 50% 40% 32.4% 30% 25.7% 20% 10% 5.0% 4.3% 4.8% 4.1% 3.5% 3.0% 1.4% 1.2% 0% 0 - 20 yrs 21 - 30 yrs 31 - 40 yrs 41 - 50 yrs 51 - 60 yrs > 60 yrs 24 Properties as at 31 M
Slide 40: Capital Management
Capital Management
Slide 41: Capital Management Strategy
Capital Management Strategy Capital management objectives of the Manager are to: Maintain a strong balance sheet by adopting and maintaining a target gearing ratio Secure diversified funding sources from both financial institutions and capital markets as MapletreeLog grows in size and scale Mi
Slide 42: Capital Management Strategy (continued)
Capital Management Strategy (continued) Optimise capital management initiatives to deliver… Interest rate management ¾ Interest rate hedge of at least 50% of MapletreeLog’s borrowings ¾ Interest rate hedges in place for ~86% of current total borrowings Foreign currency management ¾ Borrowings as
Slide 43: Interest Rates Sensitivity
28 -1 1 11 42 15 -20 -0 -1 05 1.5 2.0 2.5 3.0 3.5 4.0 4- 2 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 06 01 -20 -0 05 1 01 18 -20 -0 06 -0 5- 1 06 04 -20 -0 06 2 1Y 21 -20 -0 06 21 2 -0 10 -20 5- -0 06 06 3 27 -20 -0 06 3 1Y 10 13 -20 -0 -0 06 6- 06 4 30 -20 -0 06 3Y 4 30 17 -20 3Y -0 06 -0 6- 5 06 03
Slide 44: Foreign Exchange Sensitivity
43 26 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00 - 08 - 05 19 - 09 - 05 13 - 10 - 05 06 - 11 - 05 30 - 11 - 05 24 - 12 RMB - 05 17 - 01 - 06 10 - 02 HKD - 06 06 - 03 Foreign Exchange - 06 30 RM - 03 Foreign Exchange Sensitivity - 06 23 - 04 - 06 17 - 05 - 06 10 - 06 - 06 04 - 0
Slide 45: Outlook
Outlook
Slide 46: Mapletree's Sponsorship and Support
Mapletree’s Sponsorship and Support Alignment of interests ¾ Mapletree currently has ~ 31% stake in MapletreeLog Leverage on the Sponsor’s network ¾ Through its financial strength, market reach and network (Itochu, CIMB, Indian partner) in the Asia Pacific logistics sector Ability to develop a
Slide 47: Confident of meeting DPU forecast
Confident of meeting DPU forecast 7.2% qoq growth in 2Q DPU to 1.19 cents is very encouraging. We are confident of delivering our forecast DPU of 4.58 cents1 for the financial year ending 31 December 2006. 1. Based on the forecasts, together with the accompanying assumptions in the Unitholders’ Ci
Slide 48: Disclaimer
Disclaimer The value of units in MapletreeLog (“Units”) and the income from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the prin
Slide 49: Important Notice
Important Notice The information contained in this presentation is for information purposes only and does not constitute an offer to sell or any solicitation of an offer or invitation to purchase or subscribe for units in Mapletree Logistics Trust (“MapletreeLog”, and units in MapletreeLog, “Units”)
Slide 50: Thank You
Thank You
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