Mapletree Industrial Trust · SGX:ME8U

Mapletree Industrial Trust — Investor Presentation (May 2016)

36 slides from Mapletree Industrial Trust's investor presentation, May 2016

  1. Slide 1: Investor Presentation May 2016

    Investor Presentation May 2016

  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 2015/2016 in the SGXNET announcement dated 25 April 2016. This presentation is for information only and does not constitute an offer or solici

  3. Slide 3: Agenda

    Agenda 1 Overview of Mapletree Industrial Trust 2 Portfolio Highlights 3 4Q & FY15/16 Financial Performance 4 Outlook and Strategy 3

  4. Slide 4: Overview of Mapletree Industrial Trust

    OVERVIEW OF MAPLETREE INDUSTRIAL TRUST Hi-Tech Building, Build-to-Suit Data Centre for Equinix

  5. Slide 5: Overview of Mapletree Industrial Trust

    Overview of Mapletree Industrial Trust Mapletree Investments Pte Ltd Public & Inst MIPL Sponsor (“MIPL”) Unitholders Owns 34.2% of MIT 65.8% 34.2% Trustee Focused on industrial real estate Investment assets in Singapore, excluding Manager mandate properties primarily used for logistics purposes Prop

  6. Slide 6: Broad Spectrum of Industrial Facilities

    Broad Spectrum of Industrial Facilities FLATTED FACTORIES STACK-UP/RAMP-UP BUILDINGS High-rise multi-tenanted industrial buildings with basic common facilities used for light Stacked-up factory space with vehicular manufacturing activities. access to upper floors. Multi-tenanted space suitable for m

  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 Ongoing development projects 7

  8. Slide 8: Sustainable and Growing Returns

    Sustainable and Growing Returns Distributable Income DPU (cents) (S$ million) 60 3.00 2.79 2.82 2.81 2.73 2.67 2.65 2.60 2.51 2.51 2.51 50.3 50.4 2.43 2.47 48.2 48.9 50 2.29 2.32 2.37 46.7 2.50 2.22 2.26 45.4 46.0 2.16 2.05 42.2 42.6 42.8 1.93 1.98 40.2 41.1 40 38.9 2.00 36.9 37.5 37.7 35.2 35.8 1.5

  9. Slide 9: Comparative Trading Performance since IPO

    Comparative Trading Performance since IPO1,2 Unit Price and Market Cap S$ Return on Investment % Closing Unit price 1.615 Total Return⁴ 130.2 Market Capitalisation 2.9 billion³ Capital Appreciation 73.7 Distributions 56.5 200.0% MIT Unit Price +73.7% 150.0% FTSE ST REITS Index +4.4% 100.0% FTSE Stra

  10. Slide 10: Significant Events

    Significant Events 2011 2012 2013 2014 2015 2016 Jul Mar Jan Jan Jan Mar Acquired tranche 2 S$125 million Implemented TOP for AEI at Toa TOP and BCA-IDA S$60 million of JTC’s 2nd Phase 7-year 3.75% Fixed Distribution Payoh North 1 Green Mark 10-year 3.79% Divestment Rate Notes Reinvestment Plan Clus

  11. Slide 11: Portfolio Highlights

    PORTFOLIO HIGHLIGHTS Hi-Tech Building, K&S Corporate Headquarters

  12. Slide 12: Resilient Portfolio Performance

    Resilient Portfolio Performance Gross Rental Rate Occupancy S$ psf/mth 100% 95.4% 95.5% 94.3% 94.5% 95.1% 95.0% 94.9% 95.0% 95.2% 93.9% 93.5% 93.8% 94.7% 94.6% 92.3% 93.2% 92.5% 91.3% 90.7% 91.5% 90.8% 90.2% 90% $1.90 $2.00 $1.86 $1.88 $1.89 $1.82 $1.83 $1.84 $1.75 $1.77 $1.71 $1.70 $1.73 80% $1.68

  13. Slide 13: Segmental Occupancy Levels

    Segmental Occupancy Levels 97.4% 96.2% 100.0% 99.7% 94.8% 94.7% 94.7% 94.6% 92.1% 93.4% 90.3% 90.1% Flatted Factories Hi-Tech Buildings Business Park Stack-Up/Ramp-Up Light Industrial MIT Buildings Buildings Buildings Portfolio Left Bar Right Bar (3QFY15/16) (4QFY15/16) 13

  14. Slide 14: Rental Revisions

    Rental Revisions Gross Rental Rate (S$ psf/mth)¹ Before Renewal $4.17 After Renewal $3.92 New Leases $3.62 Passing Rent $3.85 $2.34 $2.23 $2.14 $1.79 $1.84 $1.68 $2.12 $1.60 $1.42 $1.45 $1.77 $1.27 Flatted Factories Hi-Tech Buildings Business Park Buildings Stack-Up/Ramp-Up Buildings Renewal 67 Leas

  15. Slide 15: Healthy Tenant Retention

    Healthy Tenant Retention LONG STAYING TENANTS RETENTION RATE FOR 4QFY15/16 Up to 1 yr >10 yrs 94.9% 8.0% 91.3% 17.0% >1 to 2 yrs 79.4% 9.8% 69.2% 71.8% 4 years or less, 37.7% > 2 to 3 yrs More than 4 12.9% years 23.6% 62.3% >3 to 4 yrs 7.0% Flatted Hi-Tech Business Stack-Up / Light Portfolio >5 to 1

  16. Slide 16: Lease Expiry Profile

    Lease Expiry Profile EXPIRING LEASES BY GROSS RENTAL INCOME (%) 31.4% 24.1% 21.1% 13.0% 10.4% FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 & Beyond Flatted Factories Hi-Tech Buildings Business Park Stack-up / Ramp-up Light Industrial Buildings Buildings Buildings Portfolio WALE by Gross Rental Income = 2

  17. Slide 17: Large and Diversified Tenant Base

    Large and Diversified Tenant Base TOP 10 TENANTS (BY GROSS RENTAL INCOME)  Over 2,000 tenants  Largest tenant contributes <3.2% of Portfolio’s Gross Rental Income 3.2%  Top 10 tenants forms only 17.5% of Portfolio’s Gross Rental Income 2.6% 2.3% 1.8% 1.7% 1.5% 1.3% 1.2% 1.1% 0.8% 17 As at 31 Mar

  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 31 Mar 2016

  19. Slide 19: BTS – Hewlett-Packard

    BTS – Hewlett-Packard Property GFA Estimated Cost Date of Completion 2 Hi-Tech Buildings 824,500 sq ft S$226 million¹ Phase 1 : By 4Q2016 Phase 2 : By 2Q2017 Phase 2: Superstructure works in progress Artist’s impression of completed development  S$226 million¹ BTS project for Hewlett-Packard on tra

  20. Slide 20: AEI – Kallang Basin Cluster

    AEI – Kallang Basin 4 Cluster Location Additional GFA Estimated Cost Date of Completion 26, 26A, 28 & 30 336,000 sq ft1 S$77 million 1Q2018 Kallang Place Development of Hi-Tech Building at existing car park Artist’s impression of new Hi-Tech Building  Development of 14-storey1 Hi-Tech Building (at

  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: 4Q & FY15/16 Financial Performance

    4Q & FY15/16 FINANCIAL PERFORMANCE Flatted Factory, Kallang Basin 4 Cluster

  23. Slide 23: 4Q & FY15/16 Results Highlights

    4Q & FY15/16 Results Highlights  Growth driven by contribution from completed BTS data centre for Equinix and resilient portfolio performance  FY15/16 Distributable Income: S$197.8 million ( 9.4% y-o-y)  FY15/16 DPU: 11.15 cents ( 6.9% y-o-y)  4QFY15/16 Distributable Income and DPU were S$50.4 m

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

    Statement of Total Returns (Year-on-Year) 4QFY15/16 4QFY14/15  / () (S$’000) (S$’000) Gross revenue 83,992 79,408 5.8% Property operating expenses (21,974) (21,637) 1.6% Net property income 62,018 57,771 7.4% Interest on borrowings (6,633) (6,185) 7.2% Trust expenses (7,073) (6,807) 3.9% Net incom

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

    Statement of Total Returns (Year-on-Year) FY15/16 FY14/15  / () (S$’000) (S$’000) Gross revenue 331,598 313,873 5.6% Property operating expenses (86,482) (85,260) 1.4% Net property income 245,116 228,613 7.2% Interest on borrowings (25,923) (23,785) 9.0% Trust expenses (28,577) (26,836) 6.5% Net i

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

    Statement of Total Returns (Qtr-on-Qtr) 4QFY15/16 3QFY15/16  / () (S$’000) (S$’000) Gross revenue 83,992 83,251 0.9% Property operating expenses (21,974) (21,372) 2.8% Net property income 62,018 61,879 0.2% Interest on borrowings (6,633) (6,443) 2.9% Trust expenses (7,073) (7,203) (1.8%) Net incom

  27. Slide 27: Balance Sheet

    Balance Sheet 31 Mar 2016 31 Dec 2015  / () 31 Mar 2015  / () Total Assets (S$’000) 3,623,941 3,532,645 2.6% 3,515,954 3.1% Total Liabilities (S$’000) 1,158,717 1,164,144 (0.5%) 1,203,771 (3.7%) Net Assets Attributable to 2,465,224 2,368,501 4.1% 2,312,183 6.6% Unitholders (S$’000) Net Asset Val

  28. Slide 28: Portfolio Valuation

    Portfolio Valuation Property segment Valuation as at Valuation as at Capitalisation rate 31 Mar 2016 (S$ m) 31 Mar 2015 (S$ m) Flatted Factories 1,566.4 1,531.2 6.50% to 7.25% Hi-Tech Buildings¹ 886.0 805.9 6.50% to 7.00% Business Park Buildings 561.5 549.8 6.00% Stack-up/Ramp-up Buildings 447.8 441

  29. Slide 29: Strong Balance Sheet

    Strong Balance Sheet 31 Mar 2016 31 Dec 2015 Strong balance sheet to pursue growth opportunities Total Debt S$1,022.4 million S$1,039.6 million  Proceeds of S$22.9 million Aggregate from distribution 28.2% 29.3% Leverage Ratio reinvestment plan (DRP) in Weighted Average 4.0 years 3.6 years 3QFY15/1

  30. Slide 30: Well Diversified Debt Maturity Profile

    Well Diversified Debt Maturity Profile DEBT MATURITY PROFILE  Successful issuance of S$60 million 3.79% 10-year MTN on 2 Mar 2016  Weighted average tenor of debt was 4.0 years 25.9% 18.1% 14.9% 265.0 125.0 9.1% 9.8% 7.3% 152.1 5.9% 4.6% 100.0 4.4% 92.9 60.0 75.0 60.0 47.4 45.0 FY16/17 FY17/18 FY18

  31. Slide 31: Interest Rate Risk Management

    Interest Rate Risk Management 31 Mar 2016 31 Dec 2015  88.0% of debt is hedged for a weighted average term of Fixed as a % of 2.7 years 88.0% 85.6% Total Debt Weighted Average 2.7 years 2.1 years  In total, S$470 million of Hedge Tenor hedges will expire in FY16/17, of which 4QFY15/16 3QFY15/16 S$

  32. Slide 32: Outlook and Strategy

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

  33. Slide 33: Singapore Industrial Market

    Singapore Industrial Market DEMAND AND SUPPLY FOR MULTI-USER FACTORIES DEMAND AND SUPPLY FOR BUSINESS PARKS ('000 sq m) Occupancy Rate (%) ('000 sq m) Occupancy Rate (%) 600 100 600 100 94.7% 500 95 500 95 90.1% 400 90 400 90 300 87.3% 85 300 85 81.7% 200 80 200 80 100 75 100 75 0 70 0 70 -100 65 -1

  34. Slide 34: Outlook

    Outlook  The economy grew by 1.8% year-on-year in the quarter ended 31 Mar 2016, same pace of growth in preceding quarter¹. For 2016, MTI has maintained the GDP growth forecast at 1.0 to 3.0%².  The business environment is expected to remain challenging, given the muted global economic outlook and

  35. Slide 35: To Deliver Sustainable and Growing Returns

    To Deliver Sustainable and Growing Returns SECURE investments to IMPROVE competitiveness deliver growth and of properties diversification Value-  Implement proactive  Pursue DPU-accretive Proactive marketing and leasing creating acquisitions and Asset initiatives Investment development projects Ma

  36. Slide 36: 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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