Mapletree Industrial Trust · SGX:ME8U

Mapletree Industrial Trust — Investor Presentation (November 2014)

33 slides from Mapletree Industrial Trust's investor presentation, Nov 5, 2014

  1. Slide 1: Investor Presentation November 2014

    Investor Presentation November 2014

  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 2014/2015 in the SGXNET announcement dated 21 October 2014. This presentation is for information only and does not constitute an offer or soli

  3. Slide 3: Agenda

    Agenda 1 Overview of Mapletree Industrial Trust 2 Portfolio Highlights 3 2Q & 1HFY14/15 Financial Performance 4 Outlook and Strategy 3

  4. Slide 4: Overview of Mapletree Industrial Trust

    OVERVIEW OF MAPLETREE INDUSTRIAL TRUST Hi-Tech Building, K&S Corporate Headquarters

  5. Slide 5: Overview of Mapletree Industrial Trust

    Overview of Mapletree Industrial Trust Mapletree Investments Pte Ltd Public & Inst MIPL (MIPL) Unitholders Sponsor Owns 32% of MIT 68% 32% Trustee Focused on industrial real estate Investment assets in Singapore, excluding Manager mandate properties primarily used for logistics purposes Property MIT

  6. Slide 6: Broad Spectrum of Industrial Facilities

    Broad Spectrum of Industrial Facilities BUSINESS PARK BUILDINGS STACK-UP/RAMP-UP BUILDINGS Multi-storey suburban office buildings in specially designated “Business Park zones”. Stacked-up factory space with vehicular Serve as regional headquarters for MNCs as access to upper floors. Multi-tenanted s

  7. Slide 7: Strategically Located across Singapore

    Strategically Located across Singapore Close to Public Transportation Networks and Established Industrial Estates Flatted Factories Hi-Tech Buildings Business Park Buildings Stack-up/Ramp-up Buildings Light Industrial Buildings Major Expressways 7

  8. Slide 8: Scorecard since IPO

    Scorecard since IPO Distributable Income DPU (cents) (S$ million) 60 3.00 2.60 2.47 2.51 2.51 2.51 2.43 50 2.32 2.37 2.50 2.26 2.29 45.4 2.22 2.16 42.8 2.05 42.2 42.6 1.98 40.2 41.1 1.93 38.9 40 36.9 37.5 37.7 2.00 35.2 35.8 1.52 31.6 30 28.3 29.0 1.50 22.3 20 1.00 10 0.50 0 0.00 3Q¹ 4Q 1Q 2Q 3Q 4Q

  9. Slide 9: Attractive Returns since IPO

    Attractive Returns since IPO RETURN ON INVESTMENT (FROM LISTING DATE TO 30 SEP 2014) Total Return 91.5%¹ Capital Appreciation 52.7% Distribution Yield 38.8% Price (S$) Volume (million units) $1.80 30 $1.60 25 $1.40 $1.20 20 $1.00 15 $0.80 $0.60 10 $0.40 5 $0.20 $0.00 0 Oct 10 Apr 11 Oct 11 Apr 12 Oc

  10. Slide 10: Significant Events

    Significant Events July March September January  Won Tranche 2 of JTC Maiden issuance of Issuance of S$45 Implementation of Corporation’s Second Phase S$125 million 7-year million 10-year Distribution 2012 2013 2011 Divestment Exercise Portfolio Fixed Rate Notes was unsecured Fixed Reinvestment Pla

  11. Slide 11: Portfolio Highlights

    PORTFOLIO HIGHLIGHTS Hi-Tech Building, Tata Communications Exchange

  12. Slide 12: Resilient Portfolio Performance

    Resilient Portfolio Performance Gross Rental Rate Occupancy S$ psf/mth 100% 95.4% 95.5% 93.2% 94.3% 94.5% 95.1% 95.0% 94.9% 95.0% 95.2% 93.9% 92.5% 91.0% 91.0% 90.7% 90.3% 91.2% 92.3% 91.3% 90.7% 91.5% 89.0% 89.0% 89.7% 90.3% 90% $2.00 $1.77 $1.82 $1.71 $1.70 $1.73 $1.75 80% $1.68 $1.59 $1.61 $1.55

  13. Slide 13: Segmental Occupancy Levels

    Segmental Occupancy Levels 96.7% 97.1% 97.4% 94.2% 93.5%¹ 94.4% 90.7% 91.5% 81.4% 80.2% 79.0% 74.5% Flatted Factories Hi-Tech Buildings Business Park Stack-Up/Ramp-Up Light Industrial MIT Buildings Buildings Buildings Portfolio Left Bar Right Bar (1QFY14/15) (2QFY14/15) ¹ The fall in occupancy rate

  14. Slide 14: Positive Rental Revisions

    Positive Rental Revisions Gross Rental Rate (S$ psf/mth)¹ $4.30 Before Renewal $3.99 $3.81 After Renewal $3.82 New Leases Passing Rent $2.41 $2.32 $1.83 ² $1.85 $2.01 $1.66 $1.75 $1.38 $1.39 $1.69 $1.18² $1.24 Flatted Factories Hi-Tech Buildings Business Park Buildings Stack-Up/Ramp-Up Buildings Ren

  15. Slide 15: Healthy Tenant Retention

    Healthy Tenant Retention LONG STAYING TENANTS RETENTION RATE FOR 2QFY14/15 >10 yrs Up to 1 yr 13.1% 12.8% 100.0% >1 to 2 yrs 83.6% 12.2% 81.3% 82.6% 62.4% 51.8% > 2 to 3 yrs 10.1% >5 to 10 yrs 29.1% >3 to 4 yrs N.A. >4 to 5 yrs 13.1% 9.6% Flatted Hi-Tech Business Stack-Up / Light Portfolio Factories

  16. Slide 16: Lease Expiry Profile

    Lease Expiry Profile EXPIRING LEASES BY GROSS RENTAL INCOME (%) 27.9% 23.8% 20.3% 14.5% 6.6% 6.9% FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 & Beyond Flatted Factories Hi-Tech Buildings Business Park Stack-up / Ramp-up Light Industrial Buildings Buildings Buildings Portfolio WALE by Gross Renta

  17. Slide 17: Large and Diversified Tenant Base

    Large and Diversified Tenant Base TOP 10 TENANTS (BY GROSS RENTAL INCOME)  Over 2,000 tenants 3.3%  Largest tenant contributes <4% of Portfolio’s Gross Rental Income  Top 10 tenants forms only 15.7% of Portfolio’s Gross Rental Income 2.3% 1.9% 1.8% 1.4% 1.3% 1.2% 1.0% 0.8% 0.7% As at 30 Sep 2014

  18. Slide 18: Tenant Diversification Across Trade Sectors

    Tenant Diversification Across Trade Sectors No single trade sector accounted >16% of Portfolio’s Gross Rental Income By Gross Rental Income 18 As at 30 Sep 2014

  19. Slide 19: BTS – Equinix

    BTS – Equinix Location GFA Estimated Cost Date of Completion 26A Ayer Rajah 385,000 sq ft S$108 million 1st Quarter 2015 Crescent Façade and external works in progress Artist’s impression of completed development  New 7-storey data centre for Equinix (100% of space committed)  20-year lease with t

  20. Slide 20: BTS – Hewlett-Packard

    BTS – Hewlett-Packard Telok Blangah Cluster, 1160, 1200 and 1200A Depot Road Before After Redevelopment Property Two 7-storey Flatted Factories Two Hi-Tech Buildings and a canteen GFA 437,300 sq ft 824,500 sq ft Plot ratio 1.3 2.5 Land Tenure 60 years (from 1 July 2008)  Secured largest BTS project

  21. Slide 21: Committed Sponsor with Aligned Interest

    Committed Sponsor with Aligned Interest REPUTABLE SPONSOR BENEFITS TO MIT 1. Leverage on Sponsor’s network  Leverage on Mapletree’s financial strength, market reach and network  Leading Asia-focused real estate and 2. Alignment of Sponsor’s interest with capital management company Unitholders  Ma

  22. Slide 22: 2Q & 1HFY14/15 Financial Performance

    2Q & 1HFY14/15 FINANCIAL PERFORMANCE Flatted Factory, Kallang Basin 4 Cluster

  23. Slide 23: Key Highlights

    Key Highlights  Steady Growth  2QFY14/15 Distributable Income: S$45.4 million ( 10.4% y-o-y)  2QFY14/15 DPU: 2.60 cents ( 5.3% y-o-y)  Driven by higher rental rates secured for leases across all property segments as well as revenue contribution from completed development projects  Resilient Por

  24. Slide 24: Statement of Total Returns (Year-on-Year)

    Statement of Total Returns (Year-on-Year) 2QFY14/15 2QFY13/14  / () (S$’000) (S$’000) Gross revenue 77,909 73,374 6.2% Property operating expenses (21,713) (19,366) 12.1% Net property income 56,196 54,008 4.1% Interest on borrowings (5,916) (6,790) (12.9%) Trust expenses (6,761) (6,427) 5.2% Total

  25. Slide 25: Statement of Total Returns (Year-on-Year)

    Statement of Total Returns (Year-on-Year) 1HFY14/15 1HFY13/14  / () (S$’000) (S$’000) Gross revenue 156,334 148,472 5.3% Property operating expenses (43,468) (42,010) 3.5% Net property income 112,866 106,462 6.0% Interest on borrowings (11,825) (13,385) (11.7%) Trust expenses (13,340) (12,531) 6.5

  26. Slide 26: Statement of Total Returns (Qtr-on-Qtr)

    Statement of Total Returns (Qtr-on-Qtr) 2QFY14/15 1QFY14/15  / () (S$’000) (S$’000) Gross revenue 77,909 78,425 (0.7%) Property operating expenses (21,713) (21,755) (0.2%) Net property income 56,196 56,670 (0.8%) Interest on borrowings (5,916) (5,909) 0.1% Trust expenses (6,761) (6,579) 2.8% Total

  27. Slide 27: Balance Sheet

    Balance Sheet 30 Sep 2014 30 Jun 2014  / () Total Assets (S$’000) 3,270,811 3,277,961 (0.2%) Total Liabilities (S$’000) 1,205,311 1,228,887 (1.9%) Net Assets Attributable to 2,065,500 2,049,074 0.8% Unitholders (S$’000) Net Asset Value per Unit (S$) 1.20 1.20 - 27

  28. Slide 28: Strong Balance Sheet

    Strong Balance Sheet As at 30 Sep As at 30 Jun Strong balance sheet to 2014 2014 pursue growth opportunities Total Debt S$1,085.6 million S$1,103.4 million Aggregate 33.1% 33.6%  Proceeds of S$13.8 million Leverage Ratio from DRP in 1QFY14/15 Fixed as a % of 77% 75% used to fund development Total D

  29. Slide 29: Completed Refinancing due in FY14/15

    Completed Refinancing due in FY14/15 DEBT MATURITY PROFILE 27% 18% 17% 13% 293 12% 125 199 9% 145 126 4% 93 60 45 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 Bank Borrowings (S$ million) MTN (S$ million) 29 As at 30 Sep 2014

  30. Slide 30: Outlook and Strategy

    OUTLOOK AND STRATEGY Business Park Buildings, The Strategy and The Synergy

  31. Slide 31: Market Outlook

    Market Outlook DEMAND AND SUPPLY FOR MULTI-USER FACTORIES DEMAND AND SUPPLY FOR BUSINESS PARKS ('000 sq m) Occupancy Rate (%) ('000 sq m) Occupancy Rate (%) 250 100 450 100 95 93.5% 95 200 350 90 90 86.1% 150 250 85 86.8% 85 100 79.0% 80 150 80 75 75 50 50 70 70 2003 2004 2005 2006 2007 2008 2009 20

  32. Slide 32: Positioned for Growth

    Positioned for Growth  Achieved positive  Completed  BTS development for rental revisions refinancing due in Equinix on track for across all segments FY14/15 and completion in 1Q2015 extended weighted  Limited leasing risk average tenor of debt  BTS development for with only 6.6% of Hewlett-Pac

  33. Slide 33: End of Presentation

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

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