Mapletree Industrial Trust · SGX:ME8U

Mapletree Industrial Trust — 2Q FY2011 Earnings Presentation

32 slides from Mapletree Industrial Trust's earnings presentation, Nov 29, 2011

  1. Slide 1: Investor Presentation

    Investor Presentation November 2011

  2. Slide 2: Agenda

    Agenda 1 Overview of Mapletree Industrial Trust 2 Portfolio Highlights 3 2Q & 1H FY2011 Financial Results 4 Strategy & Outlook 1

  3. Slide 3: Overview of Mapletree Industrial Trust

    Overview of Mapletree Industrial Trust

  4. Slide 4: Overview of Mapletree Industrial Trust

    Overview of Mapletree Industrial Trust Sponsor Mapletree Investments Pte Ltd Public & Inst MIPL (“MIPL”) Unitholders Owns 30% of MIT 70% 30% Trustee Investment Focused on income producing real mandate estate in Singapore primarily used for industrial purposes, excluding properties primarily used for

  5. Slide 5: Key Milestones Achieved in 1st Year

    Key Milestones Achieved in 1st Year 21 October 2010 S$1.188 billion raised via Initial Public Offering on SGX Mainboard 25 Oct 2011 16 Aug 2011 2QFY2011 Results Establishment of DPU of 2.05 cents 27 Jul 2011 MTN Programme Launched Successful 26 Jul 2011 S$177mil Equity Fund Raising 1QFY2011 Results

  6. Slide 6: 81 Properties Spanning 4 Key Property Types

    81 Properties Spanning 4 Key Property Types • One of the largest industrial landlords in Singapore • Total assets of approx. S$2.7 billion • Total GFA of approx. 1.8 million sq m Light Industrial Warehouse • Total NLA of approx. 1.3 million sq m Buildings Business • Tenant base of more than 2,000 MN

  7. Slide 7: Maiden Acquisition increases Portfolio Size by 18%

    Maiden Acquisition increases Portfolio Size by 18%  MIT‟s maiden acquisition since its IPO  Acquisition of 11 flatted factories and amenity centres from JTC Corporation‟s divestment exercise – On 2 Jul 2011, MIT won bid to acquire the assets at S$400.3m (valued at S$402.7m by Knight Frank) – Acqui

  8. Slide 8: Strategically Located Across Singapore

    Strategically Located Across Singapore Woodlands Johor East Causeway Woodlands Reion Kampong Ubi Cluster of Woodlands Properties Central Tampines Region Bedok Cluster of Properties Serangoon Jurong East North Region Loyang North Changi Second Airport Link Kampong Toa Payoh Ampat Kaki International N

  9. Slide 9: Selected MIT Properties

    Selected MIT Properties The Signature The Synergy The Strategy Kaki Bukit Kampong Ampat Telok Blangah Loyang 1 Redhill 1 Woodlands Central Woodlands Spectrum 1 & 2 19 Tai Seng Drive Tata Communications Exchange LEGEND Business Park Buildings Flatted Factories Stack-up/Ramp-Up Buildings Light Industr

  10. Slide 10: Robust, Resilient, Relevant & Reputable

    Robust, Resilient, Relevant & Reputable Embedded Organic Growth Potential Large, Diversified and Resilient Portfolio with Market Presence Growth Opportunity from Asset Enhancements and Acquisitions Experienced Manager and Committed Sponsor 9

  11. Slide 11: Portfolio Highlights

    Portfolio Highlights mapletree

  12. Slide 12: Positive Rental Revisions

    Positive Rental Revisions Gross Rental Rate S$ psf/mth $4.50 $4.00 $3.87 $3.55 $3.50 $3.24 $3.00 $2.50 $2.00 $1.82 $1.64 $1.50 $1.40 $1.26 $1.28 $1.22 $1.20 $1.04 $0.94 $1.00 $0.50 $- Business Park Buildings Flatted Factories Stack-Up / Ramp-Up Buildings Warehouse Before Renewal After Renewal New Le

  13. Slide 13: Higher Occupancy and Passing Rents

    Higher Occupancy and Passing Rents Gross Rental Rate Occupancy S$ psf/mth 100% $1.70 93.2% 94.3% 94.5% 91.0% 91.0% 91.2% 92.3% 90.7% 90.3% 89.7% 90.3% 89.0% 89.0% 80% $1.60 $1.54 $1.52 $1.49 60% $1.50 $1.45 $1.44 $1.40 40% $1.40 $1.35 $1.31 $1.31 $1.29 20% $1.30 $1.26 $1.23 $1.21 0% $1.20 2Q 3Q 4Q 1

  14. Slide 14: Continued Strong Tenant Retention

    Continued Strong Tenant Retention Long Staying Tenants High Retention Rate for 2QFY2011 >10 yrs Average Retention Rate 10.0% Up to 1 yr 100.0% 20.7% 100.0% >5 to 10 yrs 83.6% 79.4% 21.2% 80.0% 70.8% 60.0% 52.6% 41.9% 40.0% >1 to 2 yrs 15.7% 20.0% N.M. >4 to 5 yrs 0.0% 10.7% > 2 to 3 yrs Business Fla

  15. Slide 15: % Expiring Leases by Gross Rental Income

    Only 8.2% of Leases Due for Renewal in FY2011 Introduction of longer lease packages to:  Help tenants have longer-term rental certainty for their business 35.0%  Extend Portfolio WALE of 2.5 years (by Rental Income) 30.9% 30.0% 27.5% by Gross Rental Income 25.0% 23.9% % Expiring Leases 20.0% 15.0%

  16. Slide 16: Larger and Diverse Tenant Base

    Larger and Diverse Tenant Base 5% • Over 2,000 tenants • Largest tenant contributes <4.0% of Portfolio‟s Gross Rental Income • Top 10 Tenants forms only 18.8% of Portfolio‟s Gross Rental Income 4% 3.8% 3% 2.9% 2.2% 2% 1.9% 1.7% 1.4% 1.4% 1.3% 1.1% 1.0% 1% 0% 15 By Gross Rental Income As at 30 Sep 20

  17. Slide 17: Diversity of Tenant Trade Sector

    Diversity of Tenant Trade Sector 16 As at 30 Sep 2011

  18. Slide 18: Opportunities for Acquisition & Development

    Opportunities for Acquisition & Development Asset Investment Criteria Development Strategy  Built-to-Suit (“BTS”) projects 1 Positive impact on Distributions  Development of empty land plots  Development of under-utilised plot ratios 2 Location  Capacity for up to S$271 million of development ac

  19. Slide 19: Completed Asset Enhancement – Redhill 2

    Completed Asset Enhancement – Redhill 2 Conversion of Redhill 2 Flatted Factory space (7th Floor) into e-Business space Project Status Actual Cost Converted NLA Number of Units Leasing Status Completed 57 S$2.6M 28,300 sq ft 100% committed in Feb 2011 (250 to 1,000 sq ft) Reception Area Lift Lobby 1

  20. Slide 20: Proven Management & Committed Sponsor

    Proven Management & Committed 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 capital management company • Owns and manages S$18.7 billion1 of office, 2 Alignment of Sponsor‟s interest

  21. Slide 21: 2Q & 1H FY2011 Financial Performance

    2Q & 1H FY2011 Financial Performance

  22. Slide 22: Key Highlights for 2Q FY2011 Financial Performance

    Key Highlights for 2Q FY2011 Financial Performance  Achieves DPU of 2.05 cents for 2QFY2011 (above Forecast by 10.8%); 3.5% increase over the previous quarter  Robust performance driven by positive rental revisions and initial contributions from newly acquired Flatted Factories from JTC  Healthy

  23. Slide 23: Actual versus Prospect Statement

    Actual versus Prospect Statement Actual Forecast1 Actual  / ()  / () 2QFY2011 2QFY2011 1QFY2011 (S$’000) (S$’000) (S$’000) Gross revenue 59,419 53,218 11.7% 55,000 8.0% Property operating expenses (17,887) (16,717) 7.0% (16,760) 6.7% Net Property Income 41,532 36,501 13.8% 38,240 8.6% Interest o

  24. Slide 24: Healthy Balance Sheet

    Healthy Balance Sheet Actual Actual 30 Sep 2011 30 Jun 2011 Total Assets (S$‟000) 2,716,4771 2,313,853 Total Liabilities (S$‟000) 1,177,018 932,009 Net Assets Attributable to Unitholders (S$’000) 1,539,459 1,381,844 Net Asset Value per Unit (S$) 0.95 0.95 Aggregate Leverage Ratio (%) 39.2 36.0 Inter

  25. Slide 25: Sustainable Capital Structure

    Sustainable Capital Structure As at 30 Sep 2011 Total Debt S$1,069.2 mil Fixed as a % of Total Debt 78% Weighted Average All-in 2.2% Funding Cost Weighted Average Tenor of 2.7 years Debt Assets Unencumbered as 100% % of Total Assets MIT’s Issuer Default Rating BBB+ with (by Fitch Ratings) Stable Out

  26. Slide 26: Strategy & Outlook

    Strategy & Outlook mapletree

  27. Slide 27: Strategy for MIT

    Strategy for MIT Acquisition of S$400.3mil from JTC 2. 1. Acquisition Growth / Conversion to Active Asset Selective e-business space Management Development Strategy 3. Capital & Risk Management Strategy Equity Fund Raising for Accretive 26 Acquisitions

  28. Slide 28: Market Demand and Supply for Flatted Factory Space

    Market Demand and Supply for Flatted Factory Space High market occupancy of 90.6% for Flatted Factory space Net New Demand and Occupancy Net New and Potential Supply Net New and Potential Supply of Flatted Factory Space (as of 2Q 2011) 350 300 Net New Demand („000 sq m) 250 Net Floor Area ('000 sq m

  29. Slide 29: Market Demand and Supply for Business Park Space

    Market Demand and Supply for Business Park Space Positive net new demand for Business Park space in 2010 and 2011 Net New Demand and Occupancy Net New and Potential Supply Net New and Potential Supply of Business Park Space 250 Net New Demand („000 sq m) 200 Net Floor Area ('000 sq m) Occupancy Rate

  30. Slide 30: Market Outlook

    Market Outlook  For the quarter ending 30 Sep 2011, on a seasonally-adjusted quarter-on- quarter (“q-o-q”) annualized basis, the Singapore economy grew by 6.1% compared to the 1.0% growth recorded in the previous quarter1  Growth bolstered by the biomedical manufacturing cluster  Full year Singap

  31. Slide 31: On Track to Deliver FY2011 DPU

    On Track to Deliver FY2011 DPU  A larger and more resilient Portfolio post acquisition  Stable revenue for FY2011  Embedded organic potential within Portfolio  High market occupancy for generic Flatted Factory space  Healthy Balance Sheet and proactive capital management 30

  32. Slide 32: End of Presentation

    End of Presentation Investor Relations Contact Ms Melissa Tan Senior Manager, Investor Relations DID: +65 6377 6113 Email: melissa.tanhl@mapletree.com.sg

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