Mapletree Industrial Trust · SGX:ME8U
Mapletree Industrial Trust — Shareholder Meeting (July 2018)
38 slides from Mapletree Industrial Trust's shareholder meeting presentation, Jul 17, 2018
Slide 1: Focus Sustainability Growth - 8th Annual General Meeting
FOCUS SUSTAINABILITY GROWTH 8th Annual General Meeting 17 July 2018
Slide 2: Important Notice
Important Notice This presentation shall be read in conjunction with Mapletree Industrial Trust’s (“MIT”) financial statements for the financial year ended 31 March 2018. This presentation is for information only and does not constitute an offer or solicitation of an offer to sell or invitation to s
Slide 3: Notice of Annual General Meeting
Notice of Annual General Meeting 3
Slide 4: AGM Resolutions
AGM Resolutions RESOLUTION 1 (ORDINARY BUSINESS) To receive and adopt the Trustee’s Report, the Manager’s Statement, the Audited Financial Statements of MIT for the financial year ended 31 March 2018 and the Auditor’s Report thereon. RESOLUTION 2 (ORDINARY BUSINESS) To re-appoint PricewaterhouseCoop
Slide 5: Agenda of Annual General Meeting
Agenda of Annual General Meeting 1 Key Highlights – 1 Apr 2017 to 31 Mar 2018 2 Financial and Capital Management Review 3 Portfolio Highlights 4 Investment Update 5 Outlook and Strategy 5
Slide 6: Key Highlights Apr 2017 to Mar 2018
KEY HIGHLIGHTS 1 APR 2017 TO 31 MAR 2018
Slide 7: Focus Sustainability Growth
Focus Sustainability Growth Sustainable returns in FY17/18 • Distributable income: S$215.8 million ( 5.3% y-o-y) • DPU: 11.75 cents ( 3.2% y-o-y) First overseas acquisition • 40:60 joint venture with the Sponsor, Mapletree Investments Pte Ltd to acquire 14 data centres for US$750 million in
Slide 8: Focus Sustainability Growth
Focus Sustainability Growth Enhancing financial flexibility • Raised gross proceeds of S$155.7 million from a private placement to partially fund the US Acquisition • Healthy aggregate leverage of 33.1% Optimising portfolio performance • Average portfolio occupancy rate of 89.6% • Portfolio’
Slide 9: Attractive Returns in FY17/18
Attractive Returns in FY17/18 Comparative Trading Performance in FY17/18¹ 125 MIT Unit Price +14.0% 120 MIT Unit Price Range : S$1.770 – S$2.120 115 110 105 FTSE ST REITs Index 100 +8.3% FTSE Straits Times Index 95 +8.0% 90 Apr 17 Jul 17 Oct 17 Jan 18 Rebased MIT Unit Price Rebased FTSE ST REITs Ind
Slide 10: Financial and Capital Management Review
FINANCIAL AND CAPITAL MANAGEMENT REVIEW Hi-Tech Buildings, build-to-suit project for HP
Slide 11: FY17/18 Financial Results
FY17/18 Financial Results FY17/18 FY16/17 / () (S$’000) (S$’000) Gross revenue 363,230 340,565 6.7% Property operating expenses (85,627) (83,735) 2.3% Net property income 277,603 256,830 8.1% Borrowing costs (34,055) (27,325) 24.6% Trust expenses (30,032) (29,170) 3.0% Net income 213,516 200,335
Slide 12: Healthy Balance Sheet
Healthy Balance Sheet As at 31 Mar 2018 As at 31 Mar 2017 / () Total assets (S$’000) 4,154,320 3,798,061 9.4% Total liabilities (S$’000) 1,374,248 1,265,272 8.6% Net assets attributable to 2,780,072 2,532,789 9.8% Unitholders (S$’000) Net asset value per Unit (S$) 1.47 1.41 4.3% Total assets in
Slide 13: Strong Balance Sheet
Strong Balance Sheet As at 31 Mar 2018 As at 31 Mar 2017 Total debt S$1,219.8 million S$1,107.9 million Aggregate leverage 33.1%1 29.2% Weighted average tenor of debt 3.3 years 3.5 years Asset unencumbered as % of total assets 100% 100% Average borrowing cost for the financial year 2.9% 2.6% Interes
Slide 14: Proactive Capital Management
Proactive Capital Management DEBT MATURITY PROFILE As at 31 March 2018 Weighted Average Tenor of Debt = 3.3 years 21.0% 17.8% 18.4% 15.2% 14.3% 216.8 211.5 60.0 8.4% 224.4 175.0 4.9% 125.0 102.1 45.0 60.0 14
Slide 15: Prudent Interest & Forex Rate Risk Management
Prudent Interest & Forex Rate Risk Management INTEREST RATE HEDGING PROFILE DEBT CURRENCY BREAKDOWN PROFILE About 85.1% of total debt had been hedged About S$225.0 million interest rate hedges expiring in FY18/19 Adopts a natural hedging strategy with 100% of MIT’s investment in joint venture
Slide 16: Portfolio Highlights
PORTFOLIO HIGHLIGHTS Hi-Tech Building, 30A Kallang Place
Slide 17: Portfolio Overview
Portfolio Overview Singapore Portfolio US Portfolio Overall Number of properties 85 14 99 % of portfolio valuation 90.4 9.61 Average portfolio occupancy (%) 89.1 97.4 89.61 Average passing rental rate for S$1.96 US$2.01 FY17/18 ($ psf/mth) PORTFOLIO VALUE (BY SEGMENT) 1 Based on MIT’s 40% interest o
Slide 18: Well Spread Lease Expiry Profile
Well Spread Lease Expiry Profile WALE (in years) As at 31 Mar 2018 As at 31 Mar 2017 Singapore Portfolio 3.6 3.1 US Portfolio 6.0 - Overall 1 3.8 3.1 LEASE EXPIRY PROFILE (BY GROSS RENTAL INCOME)1 As at 31 March 2018 24.4% 24.8% 21.4% 18.0% 7.4% 4.0% 1 Based on MIT’s 40% interest of the joint ventur
Slide 19: Large and Diversified Tenant Base
Large and Diversified Tenant Base TOP 10 TENANTS BY GROSS RENTAL INCOME1 As at 31 March 2018 9.9% 3.3% 2.9% 2.8% 1.4% 1.3% Over 2,000 tenants Largest tenant contributes about 9.9% of Portfolio’s GRI 1.3% Top 10 tenants forms 26.1% of Portfolio’s GRI 1.2% 1.1% 0.9% 1 Based on MIT’s 40% interest
Slide 20: Tenant Diversification across Trade Sectors
Tenant Diversification across Trade Sectors TENANT DIVERSIFICATION ACROSS TRADE SECTORS (BY GROSS RENTAL INCOME)1 As at 31 March 2018 No single trade sector accounted >23% of Overall Portfolio’s Gross Rental Income 1 Based on MIT’s 40% interest of the joint venture with Mapletree Investments Pte Ltd
Slide 21: Portfolio Stability from Long Leases
Portfolio Stability from Long Leases REMAINING YEARS TO EXPIRY ON UNDERLYING LAND LEASES1 (BY LAND AREA) Post US Acquisition, 24.4% of MIT’s enlarged portfolio are on freehold land Weighted average unexpired lease term for underlying leasehold land was 38.4 years as at 31 Mar 2018 54.6% 41.5% 28
Slide 22: Segmental Occupancy Rates (Singapore)
Segmental Occupancy Rates (Singapore) SEGMENTAL OCCUPANCY RATES (SINGAPORE) 92.9% 89.9% 93.6% 93.2% 92.5% 96.4% 92.4% 91.4% 88.6% 89.1% 84.3% 83.9% 22
Slide 23: Rental Revisions for FY17/18 (Singapore)
Rental Revisions for FY17/18 (Singapore) GROSS RENTAL RATE1 (S$ PSF/MTH) ¹ Gross Rental Rates figures exclude short-term leases of less than three years; except Passing Rent figures which include all leases. 23
Slide 24: Focus on Tenant Retention
Focus on Tenant Retention RETENTION RATE1 (SINGAPORE) 96.4% 75.3% 77.3% 79.2% 77.2% 74.1% 71.0% 69.3% 64.3% 69.6% 63.2% 50.2% ¹ Based on net lettable area. 24
Slide 25: Low Tenant Turnover
Low Tenant Turnover LONG STAYING TENANTS (SINGAPORE) As at 31 Mar 2018, 67.6% of the tenants have leased the properties for more than 4 years ( from 64.5% as at 31 Mar 2017) 24.6% of the tenants have remained in the portfolio for more than 10 years ( from 20.6% as at 31 Mar 2017) 25
Slide 26: Upgrading – The Strategy and The Synergy
Upgrading – The Strategy and The Synergy Upgrading works amounting to S$7.1 million to be completed by 4Q2018 • Enhancement of frontage and drop-off areas • Upgrading of lift lobbies and common areas Improving Competitiveness of Business Park Buildings Segment The Strategy Improved drop-off area w
Slide 27: Investment Update
INVESTMENT UPDATE Hi-Tech Building – United States, 180 Peachtree, Atlanta
Slide 28: 14 Data Centres Across 9 States in United States
14 Data Centres Across 9 States in United States Purchase Total WALE Weighted Average Unexpired Occupancy Consideration NLA1 (By GRI)2 Lease Term of Underlying Land Rate4 US$750m 2.3m sq ft 6.0 years Freehold3 97.4% CALIFORNIA 1 7337 Trade Street, San Diego GEORGIA 2 180 Peachtree, Atlanta 3 1001 Wi
Slide 29: First Overseas Acquisition
First Overseas Acquisition Addition of a good quality portfolio of 14 data centres • Primarily leased on core-and-shell basis with triple net leases • Long WALE of 6.0 years with only 0.2%1 of leases expiring within next 2 years • Leased to high-quality tenants from diverse industries Strategic
Slide 30: BTS Project – 1 & 1A Depot Close
BTS Project – 1 & 1A Depot Close Completed MIT’s first redevelopment project of a Flatted Factory Cluster into a purpose- built facility for HP 100% committed by HP for lease term of 10.5 + 5 + 5 years² with annual rental escalations Phase One has a 6-month rent-free period3 Phase Two includ
Slide 31: AEI – 30A Kallang Place and Kallang Basin 4 Cluster
AEI – 30A Kallang Place and Kallang Basin 4 Cluster Estimated Cost S$77 million Additional GFA 336,000 sq ft Completed 13 Feb 2018 30A Kallang Place Completed the 14-storey Hi-Tech Building, 30A Kallang Place and improvement works at existing buildings in Kallang Basin 4 Cluster Committed leases
Slide 32: BTS Project – Mapletree Sunview 1
BTS Project – Mapletree Sunview 1 Estimated Cost S$76 million GFA 242,000 sq ft Completed 13 Jul 2018 Artist’s impression of the BTS data centre Completed a six-storey BTS data centre 100% committed by an established data centre operator Initial lease term of >10 years with staggered rental es
Slide 33: Acquisition and Upgrading – 7 Tai Seng Drive
Acquisition and Upgrading – 7 Tai Seng Drive Estimated Project Cost S$95 million GFA 256,600 sq ft Completion of Upgrading 2H2019 7 Tai Seng Drive Acquisition of a seven-storey property at a purchase consideration of S$68.0 million and upgrading the property into a Hi-Tech Building Upgrading wor
Slide 34: Expanding Hi-Tech Buildings Segment
Expanding Hi-Tech Buildings Segment Reshaping and building a portfolio of assets for higher value uses to cater to changing needs of tenants and attract users from new growth segments Targeting Potential – Unlocking Value – Delivering Growth – Data Centres AEI BTS Projects Continue to focus in Impro
Slide 35: Outlook and Strategy
OUTLOOK AND STRATEGY Business Park Building, The Signature
Slide 36: Singapore Industrial Property Market
Singapore Industrial Property Market DEMAND AND SUPPLY FOR MULTI-USER FACTORIES DEMAND AND SUPPLY FOR BUSINESS PARKS Total stock for factory space: 37.7 million sq m Potential net new supply of 1.0 million sq m in 2018, of which • Multi-user factory space accounts for 0.3 million sq m • Business
Slide 37: Delivering Sustainable Returns
Delivering Sustainable Returns Challenging operating environment in Singapore despite positive outlook • Singapore economy is expected to grow by 2.5% to 3.5% in 20181 • Continued supply of competing industrial space • Cautious leasing activity amid global policy uncertainty Data centre sector i
Slide 38: End of Presentation
FOCUS SUSTAINABILITY GROWTH End of Presentation
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