Mapletree Pan Asia Commercial Trust · SGX:N2IU
Mapletree Pan Asia Commercial Trust — 1H FY22/23 Earnings Presentation
58 slides from Mapletree Pan Asia Commercial Trust's earnings presentation, Oct 27, 2022
Slide 1: Mapletree Pan Asia Commercial Trust 1H FY22/23 Financial Results
Mapletree Pan Asia Commercial Trust 1H FY22/23 Financial Results 27 October 2022
Slide 2: Important Notice
Important Notice This presentation is for information only and does not have regard to your specific investment objectives, financial situation or your particular needs. This presentation does not constitute an invitation, offer or solicitation of any offer to sell or subscribe for, acquire or purch
Slide 3: Content
Content ▪ Key Highlights Page 4 ▪ Financial Performance Page 7 ▪ Portfolio Updates Page 14 ▪ Commitment to Sustainability Page 30 ▪ Outlook Page 33 ▪ Appendix 1: Market Information Page 38 ▪ Appendix 2: Asset Information Page 51 3
Slide 4: Key Highlights
Key Highlights VivoCity, SG
Slide 5: Key Highlights
Key Highlights 1H FY22/23 DPU Assets Under Management (“AUM”) 4.941 Singapore cents S$16.9 billion2 Up 12.5% year-on-year (“yoy”) 18 commercial properties across five key gateway markets of Asia NAV per Unit Portfolio Committed Occupancy S$1.81 96.9 % Up 4.0% as compared Maintained high occupancy as
Slide 6: Key Highlights (cont’d)
Key Highlights (cont’d) Financial Performance Portfolio Performance (cont’d) ▪ 1H FY22/23 gross revenue and net property ▪ Renewed major leases at Bank of America income (“NPI”) both recorded 44.9% yoy HarbourFront (“BOAHF”), Gateway Plaza and increase mainly due to contribution from Festival Walk2
Slide 7: Financial Performance
Financial Performance Festival Walk, HK
Slide 8: 1H FY22/23 Financial Performance
1H FY22/23 Financial Performance Boosted by contribution from properties acquired through the merger, higher contribution from VivoCity and MBC, partially offset by higher finance costs S$’000 unless otherwise stated 1H FY22/23 1H FY21/22 Variance Gross Revenue 353,1621 243,722 44.9% Property Oper
Slide 9: Financial Position
Financial Position NAV per Unit up to S$1.81 mainly due to increase in investment properties resulting from the merger As at As at S$’000 unless otherwise stated 30 September 2022 31 March 2022 Investment Properties 16,623,825 8,821,000 Investment in Joint Venture1 115,188 - Other Assets 411,382 163
Slide 10: Key Financial Indicators
Key Financial Indicators Maintained robust set of financial indicators As at As at As at 30 September 2022 30 June 2022 30 September 2021 Gross Debt Outstanding S$6,946.5 mil1 S$3,014.0 mil S$2,997.0 mil Aggregate Leverage Ratio 40.1%2 33.8% 33.7% Adjusted Interest Coverage Ratio 4.4 times3 4.9 time
Slide 11: Debt Profile
Debt Profile (as at 30 September 2022) Established S$5.0 billion Euro Medium Term Securities Programme to boost funding diversification Strong capital structure & liquidity Well-distributed debt maturity profile 1,526 Bonds and Notes 1,408 Total Gross Debt 152 1,364 Gross Debt (S$ mil) 32 Bank Debt
Slide 12: Interest Rate and Forex Management
Interest Rate and Forex Management (as at 30 September 2022) Every 50 bps change in benchmark rates estimated to impact DPU by 0.16 cent p.a. ~73% of Total Debt Hedged/Fixed ~88% of Distributable Income Derived or Hedged to SGD Unhedged 12% Hedged Floating 33% 27% Total Gross Debt Portfolio S$6,946.
Slide 13: Distribution Details
Distribution Details Adoption of quarterly reporting framework and distribution with effect from 3Q FY22/23 Distribution Period 21 July 2022 to 30 September 20221 Distribution Amount 1.90 Singapore cents per Unit Distribution Timetable Notice of Record Date Thursday, 27 October 2022 Last Day of Trad
Slide 14: Portfolio Highlights
Portfolio Highlights Mapletree Business City, SG
Slide 15: Portfolio Highlights
Portfolio Highlights Portfolio1 Committed Occupancy Total NLA Renewed & Re-let2 96.9% 223,068 sq ft 848,363 sq ft Retail Office/Business Park Rental Reversion Tenant Retention Rate +1.1% 70.4% VivoCity Festival Walk Tenant Sales Shopper Traffic Tenant Sales Shopper Traffic 48.4% 49.4% 0.5% 0
Slide 16: 1H FY22/23 Segmental Results
1H FY22/23 Segmental Results Higher revenue and NPI due to contribution from properties acquired through merger as well as higher contribution from core assets Contribution to Gross Revenue1 Contribution to NPI1 45.9% 45.8% By Country4 By Country4 355.53 2.42 76% 77% 20.02 276.93 1.72 19.92 12%
Slide 17: Portfolio Committed Occupancy
Portfolio Committed Occupancy Portfolio achieved 96.9% committed occupancy, with majority of markets posting higher commitment levels As at As at As at 30 September 2022 30 June 2022 30 September 2021 (%) (%) (%) MBC, SG 98.4 98.2 97.0 VivoCity, SG 98.9 98.5 99.6 Other SG properties 93.9 93.5 89.5 F
Slide 18: 1H FY22/23 Leasing Update
1H FY22/23 Leasing Update Positive rental reversion achieved in most markets, with total ~1.1 mil square feet NLA renewed or re-let Number of Leases Retention Rate by NLA Rental Committed (sq ft) (%) Reversion1 (%) MBC, SG 17 68.5 3.8 VivoCity, SG 80 74.6 7.7 Other SG properties 25 84.1 -0.2 Festiva
Slide 19: Lease Expiry Profile
Lease Expiry Profile (as at 30 September 2022) Portfolio resilience supported by manageable lease expiries Weighted Average Lease Expiry (“WALE”) by Gross Monthly Income (“GRI”) Portfolio Retail Office/Business Park 2.4 years1 2.1 years 2.7 years Lease Expiry Profile by Percentage of Monthly GRI2 15
Slide 20: Overall Top Tenants
Overall Top 10 Tenants Top ten tenants contributed 22.6%1 of gross rental income % of Gross Rental Income Tenant Property(ies) (as at 30 September 2022) 1 Google Asia Pacific Pte. Ltd. MBC 5.8% 2 2 BMWRENEWED Gateway Plaza 3.9% 3 Seiko Instruments Inc. SII Makuhari Building 2.0% 4 TaSTe Festival Wal
Slide 21: Portfolio Tenant Trade Mix
Portfolio Tenant Trade Mix (as at 30 September 2022) Trade Mix % of Gross Rental Income 1 IT Services & Consultancy 14.4% 2 F&B 12.9% 3 Banking & Financial Services 8.4% 4 Fashion 7.8% 5 Machinery / Equipment / Manufacturing 5.9% 6 Departmental Store / Supermarket / Hypermarket 5.3% 7 Real Estate /
Slide 22: VivoCity – Continued Steady Recovery Momentum
VivoCity – Continued Steady Recovery Momentum Healthy momentum with 2Q FY22/23 tenant sales continuing to surpass pre-COVID levels1 Shopper Traffic (mil) Tenant Sales (S$ mil)2 49.4% 48.4% year-on-year year-on-year 502.9 444.3 27.1 338.9 254.5 18.93 235.0 14.0 176.8 12.6 9.7 6.6 248.4 13.1 209.3
Slide 23: VivoCity – Asset Enhancement Initiative
VivoCity – Asset Enhancement Initiative Reconfiguration exercise of ~80,000 square feet includes conversion of part L1 anchor space into new retail zone ▪ Utilises escalator node added in 2018 to activate new shopper discharge channel ▪ ~56,000 square feet new retail zone on L11 provides seamless in
Slide 24: VivoCity – Continuous Effort to Inject Novelty
VivoCity – Continuous Effort to Inject Novelty New and expanding tenants offer shoppers wider and more exciting choices Nike, L1 – Expanded and re-opened with bigger floor space to offer wider array of footwear, apparel and to better serve shoppers Café Q Classified, B1 – Instagram-worthy Japanese-l
Slide 25: VivoCity – Engaging Shoppers & Drawing Foot Traffic
VivoCity – Engaging Shoppers & Drawing Foot Traffic Resumption of atrium activities attracted lively crowds SkillsFuture Festival by government statutory board, Workforce TANGS Mid-Autumn Fair 2022 Singapore, to encourage skills upgrading and training Kenwood & DeLonghi Roadshow by Best Denki Audi C
Slide 26: Festival Walk – Shopper Traffic and Tenant Sales
Festival Walk – Shopper Traffic and Tenant Sales Government consumption vouchers and gradual reopening of borders boosted footfall and tenant sales recovery in 2Q FY22/23 Shopper Traffic (mil) Tenant Sales (HKD mil)1 0.7% 0.5% year-on-year year-on-year 2,585.7 19.9 8.5 1,873.2 1,863.42 1,297.5 1
Slide 27: Festival Walk – Shopper Traffic and Tenant Sales
Festival Walk – Shopper Traffic and Tenant Sales Further easing of COVID measures and reopening of borders expected to support recovery Monthly Tenant Sales and Shopper Traffic (year-on-year comparison) Shopper traffic Retail sales Government consumption vouchers disbursed in Aug 2022 Further easing
Slide 28: Festival Walk – Strengthening its Appeal as Lifestyle Hub
Festival Walk – Strengthening its Appeal as Lifestyle Hub Introducing new F&B concepts and popular lifestyle brands Lemongrass Bakery, L1 – Trendy bakery specialising in premium American Eagle Outfitters, L1 – Expertly crafted and high quality clothing and pastries with innovative flavours accessori
Slide 29: Festival Walk – Strengthening its Appeal as Lifestyle Hub
Festival Walk – Strengthening its Appeal as Lifestyle Hub Curated roadshows and events to reinforce mall positioning and drive footfall Pink Revolution by HK Cancer Fund Disney Love Nature Summer Promotion Omega x Swatch Pop-up Store Mid-Autumn Festival Weekend Performances 29
Slide 30: Commitment to Sustainability
Commitment to Sustainability Mapletree Business City, SG
Slide 31: Reaffirming Our Commitment to Sustainability
Reaffirming Our Commitment to Sustainability 12 material factors mapped to United Nations Sustainable Development Goals (“SDGs”) Underpinned by four ESG pillars Responsible Business Engaging People and Business Resilience A Greener Environment Practices Communities 4. Ethical Business Material Facto
Slide 32: 1H FY22/23 Sustainability Highlights
1H FY22/23 Sustainability Highlights Green Financing ESG Benchmarking ✓ Established a green finance ✓ Maintained GRESB Three Star framework for MPACT rating for 2nd year of participation Some CSR Activities held in 1H FY22/23 Venue sponsorship for TENG Ensemble’s ‘Once Upon A Tree Planting at VivoCi
Slide 33: Outlook
Outlook Mapletree Business City, SG
Slide 34: Outlook
Outlook ▪ Retail indicators continued to show signs of recovery with the lifting of COVID-19 restrictions, further supported by improved business and consumer confidence in Q1 and Q2 2022. ▪ Approximately 1.23 million square feet of space is expected to be delivered from 2022 to 2024, translating to
Slide 35: Outlook (cont’d)
Outlook (cont’d) ▪ The alleviation of the fifth wave of COVID and Phase II of the consumption voucher distribution scheme in August 2022 have lent support on retail sales in the short term. ▪ While a full-scale border re-opening has not been implemented, quarantine requirements for travellers have b
Slide 36: Outlook (cont’d)
Outlook (cont’d) ▪ Rents have declined in general across Greater Tokyo and this rental downtrend is expected to continue due to the longer free rent periods across Greater Tokyo. ▪ New supply in 2023 will be significant in the five central wards of Tokyo, particularly in the Minato ward. However, th
Slide 37: Thank You
Thank You For enquiries, please contact: Teng Li Yeng Investor Relations Tel: +65 6377 6111 Email: teng.liyeng@mapletree.com.sg
Slide 38: Appendix 1: Market Information
Appendix 1: Market Information VivoCity, SG
Slide 39: Singapore Retail – Market Overview
Singapore Retail – Market Overview Limited upcoming supply should support likely occupancy and rents Key Retail Malls and Submarkets Planned New Supply Submarket Property Area (‘000 sq ft) Completion Orchard Boulevard 88 29.9 2022 RCR Grantral Mall @ Macpherson 67.5 2022 Suburban Surbana Jurong Camp
Slide 40: Singapore Retail Sales Performance
Singapore Retail Sales Performance Improving retail sales due to easing COVID measures, with proportion of online sales remaining largely stable (S$ bil) (Online Sales Proportion) 4.5 30.0% 26.3% 4.0 3.9 25.0% 3.5 3.7 3.5 3.6 3.5 18.6% 3.4 3.4 3.0 3.3 3.3 3.3 3.3 20.0% 3.1 3.2 3.1 21.0% 20.0% 2.8 2.
Slide 41: Singapore Visitor Arrivals
Singapore Visitor Arrivals Tourist arrivals continued to grow for the 7th straight month in August 2022, the highest level observed since the imposition of strict COVID measures in March 2020 25.0 20.0 19.1 18.5 17.4 International Visitor Arrivals (million) 15.0 10.0 5.0 2.7 3.0 0.3 0.0 2017 2018 20
Slide 42: Singapore Office – Market Overview
Singapore Office – Market Overview Leasing demand and rent growth picked up pace in Q1 and Q2 2022 with economic recovery and back-to- office momentum Key Office Districts Planned New Supply Submarket Property Area (‘000 sq ft) Completion Core CBD Hub Synergy Point Redevelopment 131.2 2022 Surbana J
Slide 43: Singapore Business Parks – Market Overview
Singapore Business Parks – Market Overview Robust demand for business park space expected to continue for the next few years Existing and Planned Business Park Clusters Planned New Supply Submarket Property Area (‘000 sq ft) Completion Rest of Island Surbana Jurong Campus 445.1 2022 Kajima Lab for G
Slide 44: Hong Kong Retail – Market Overview
Hong Kong Retail – Market Overview 2022 GDP outlook downgraded amid weaker 1H performance and deterioration of global economic prospects Key Retail Areas Planned New Supply Submarket Property Area (‘000 sq ft) Completion Sha Tin The Wai 652.5 2023 Kowloon East NKIL 6568 262.0 2023 Kowloon East Lifes
Slide 45: Hong Kong Retail Sales Performance
Hong Kong Retail Sales Performance August 2022 retail sales rose from July but stayed almost flat on yoy basis, with the proportion of online sales remaining stable at under 10% of total sales (HKD bil) (Online Sales Proportion) 40.0 37.7 14.0% 31.4 35.0 32.5 33.8 30.230.7 30.7 33.3 12.0% 28.7 27.4
Slide 46: Hong Kong Visitor Arrivals
Hong Kong Visitor Arrivals As Mainland Chinese are still required to be quarantined upon returning home, a significant uptick in Mainland visitors is unlikely until such quarantine requirements are lifted 70,000 60,000 14,109 14,027 50,000 12,138 Total Visitor Arrival (‘000) 40,000 30,000 51,038 44,
Slide 47: Beijing Office Market – Market Overview
Beijing Office Market – Market Overview Market activities have dropped significantly due to lockdowns but have gradually resumed since May 2022 Key Office Districts Planned New Supply Submarket Property Area (sq m) Completion AGV & Olympic Park Beijing Polpas Center 90,000 2022 Q4 Hevol Group Headqu
Slide 48: Shanghai Business Parks – Market Overview
Shanghai Business Parks – Market Overview Leasing activities have resumed in June 2022 with the end of lockdowns Core and Emerging Business Parks Planned New Supply Submarket Property Area (sq m) Completion Zhangjiang Fuhai Business Court 13,000 2022 Q4 Shanghai Business Park Phase Caohejing 190,342
Slide 49: Greater Tokyo Office – Market Overview
Greater Tokyo Office – Market Overview Impact of COVID on the economy is weakening but prolonged spike in oil prices and fluctuations in yen could negatively impact the economy Map of Office Markets Planned New Supply Submarket Property Area (tsubo) Completion Tokyo 5 wards Tokyo Midtown Yaes 37,072
Slide 50: Seoul Office – Market Overview
Seoul Office – Market Overview GBD rents rose 1.6% qoq in 3Q 2022; it now has the lowest vacancy rate in Seoul Map of Major Office Submarkets Planned New Supply Area (million Submarket Property Completion Central Business District pyeong) (“CBD”) Gangnam Business CBD Bank of Korea Ancilliary Complex
Slide 51: Appendix 2: Asset Information
Appendix 2: Asset Information Hewlett-Packard Japan Headquarters Building, Tokyo, Japan
Slide 52: Portfolio Valuation
Portfolio Valuation Valuation (S$) As at As at As at 31 March 20221 30 September 20211 31 March 20212 million per sq ft NLA Capitalisation Rate3 million million VivoCity 3,182.0 2,953 psf 4.60% 3,146.0 3,148.0 Office: 3.75% MBC I 2,249.0 1,317 psf 2,249.0 2,226.0 Business Park: 4.85% Business Park:
Slide 53: Portfolio Valuation (cont’d)
Portfolio Valuation (cont’d) Valuation (Local Currency/S$) As at As at As at 31 March 20221,2 31 October 20211,3 31 March 20214 million per sq ft NLA Capitalisation Rate5 million million HKD25,565/ HKD31,897/ HKD25,565/ HKD26,170/ Festival Walk 4.15% S$4,455 S$5,559 psf S$4,453 S$4,520 RMB6,343/ RMB
Slide 54: Assets in Singapore
Assets in Singapore VivoCity MBC I MBC II Part 20, 40, 50, 60, 70, 80 Address 1 HarbourFront Walk 10, 20, 30 Pasir Panjang Road Pasir Panjang Road Asset type Retail Office and Business Park Business Park and Retail Year of acquisition 2011 (IPO) 2016 2019 Leasehold 99 years from 1 October Strata Lea
Slide 55: Assets in Singapore
Assets in Singapore mTower Mapletree Anson BOAHF Address 460 Alexandra Road 60 Anson Road 2 HarbourFront Place Asset type Office and Retail Office Office Year of acquisition 2011 (IPO) 2013 2011 (IPO) Leasehold 99 years from 1 October Leasehold 99 years from 22 October Leasehold 99 years from 1 Octo
Slide 56: Assets in Hong Kong, China and Seoul
Assets in Hong Kong, China and Seoul Festival Walk, Gateway Plaza, Sandhill Plaza, The Pinnacle Gangnam, Hong Kong Beijing, China Shanghai, China Seoul, South Korea No.18 Xiaguangli, Blocks 1 to 5 and 7 to 9, No.2290 No.80 Tat Chee Avenue, East 3rd Ring 343, Hakdong-ro, Gangnam- Address Zuchongzhi R
Slide 57: Assets in Greater Tokyo
Assets in Greater Tokyo Higashi-nihonbashi 1- ABAS Shin-Yokohama IXINAL Monzen-nakacho TS Ikebukuro Building, chome Building, Tokyo, Building, Yokohama, Building, Tokyo, Japan Tokyo, Japan Japan Japan 6-1, Shin-Yokohama 2- 5-4, Fukuzumi 4-6, Higashi-Nihonbashi 63-4, Higashi-Ikebukuro Address chome,
Slide 58: Assets in Greater Tokyo
Assets in Greater Tokyo Hewlett-Packard SII Makuhari Fujitsu Makuhari mBAY POINT Omori Prime Japan Building, Chiba, Building, Chiba, Makuhari, Chiba, Building, Tokyo, Headquarters Japan Japan Japan Japan Building, Tokyo, Japan 9-3, Nakase 1- 21-12, Minami-oi 6- 8, Nakase 1-chome, 6, Nakase 1-chome,
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