Mapletree Industrial Trust · SGX:ME8U

Mapletree Industrial Trust — Investor Presentation (May 2020)

39 slides from Mapletree Industrial Trust's investor presentation, May 11, 2020

  1. Slide 1: Investor Presentation May 2020

    Investor Presentation May 2020

  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 2019/2020 in the SGXNET announcement dated 27 April 2020. This presentation is for information only and does not constitute an offer or solici

  3. Slide 3: Contents

    Contents 1 Overview of Mapletree Industrial Trust 2 Portfolio Highlights 3 4Q & FY19/20 Financial Performance 4 Outlook and Strategy 3

  4. Slide 4: Overview of Mapletree Industrial Trust

    OVERVIEW OF MAPLETREE INDUSTRIAL TRUST Hi-Tech Buildings, 44490 Chilum Place (ACC2), Northern Virginia

  5. Slide 5: Overview of Mapletree Industrial Trust

    Overview of Mapletree Industrial Trust Mapletree Investments Pte Ltd Public & Inst MIPL Sponsor (“MIPL”) Unitholders 70.8% 29.2% Owns 29.2% of MIT Trustee Focused on (i) industrial real estate assets in Singapore, excluding Manager Investment properties primarily used for logistics mandate purposes

  6. Slide 6: Sustainable and Growing Returns

    Sustainable and Growing Returns Distributable Income DPU (S$ million) (cents) 100 3.50 3.13 3.16 3.07 3.08 3.10 90 3.00 2.95 3.00 3.01 2.92 2.85 2.85 2.832.83 2.88 2.88 3.00 2.79 2.82 2.81 2.73 80 2.67 2.65 2.60 2.43 2.47 2.512.512.51 2.32 2.37 69.4 69.2 2.50 70 2.29 2.22 2.26 2.16 63.2 63.5 2.05 59

  7. Slide 7: Healthy Returns since IPO

    Healthy Returns since IPO COMPARATIVE TRADING PERFORMANCE SINCE IPO¹ 350 MIT UNIT PRICE 300 +173.1% 250 200 FTSE ST REITS INDEX 150 +11.5% 100 FTSE STRAITS TIMES INDEX 50 -18.5% 0 Oct 10 Oct 11 Oct 12 Oct 13 Oct 14 Oct 15 Oct 16 Oct 17 Oct 18 Oct 19 Rebased MIT Unit Price Rebased FTSE ST REITS Index

  8. Slide 8: Diverse Portfolio of Properties

    Diverse Portfolio of 114 Properties HI-TECH BUILDINGS BUSINESS PARK BUILDINGS High specification industrial buildings with High-rise multi-tenanted buildings in specially higher office content for tenants in technology designated “Business Park zones”. Serve as and knowledge-intensive sectors. Usual

  9. Slide 9: 87 Properties in Singapore

    87 Properties in Singapore Total WALE Weighted Average Unexpired Occupancy NLA (By GRI)1 Lease Term of Underlying Land1 Rate2 16.6m sq ft 3.4 years 36.1 years 90.7% Hi-Tech Buildings Flatted Factories Business Park Buildings Stack-up/Ramp-up Buildings Light Industrial Buildings 1 As at 31 Mar 2020.

  10. Slide 10: 27 Data Centres Across North America

    27 Data Centres Across North America Total WALE Weighted Average Unexpired Occupancy NLA1 (By GRI)2 Lease Term of Underlying Land3 Rate4 4.3m sq ft 7.4 years Freehold 98.7% Ontario 1 Wisconsin 1 1 Michigan 1 Massachusetts Pennsylvania 1 1 New Jersey 2 Denver 6 Virginia 1 California 1 2 North Carolin

  11. Slide 11: Portfolio Growth since IPO

    Portfolio Growth since IPO S$5.9b 3 Asset Enhancement FY19/20 Initiatives (“AEI”) 5 Build-to-Suit (“BTS”) S$4.8b FY18/19 Projects S$4.3b 6 Acquisitions FY17/18 S$3.7b BTS S$3.6b FY16/17 Jul 2019 S$3.4b FY15/16 Kolam Ayer 2 S$3.2b FY14/15 S$263m S$2.9b FY13/14 S$2.7b Acquisition FY12/13 Sep 2019 FY11

  12. Slide 12: Reputable Sponsor with Aligned Interest

    Reputable Sponsor with Aligned Interest About the Sponsor, Mapletree Investments  Leading real estate development, investment, capital and property management company  As at 31 Mar 2019, the Sponsor owns and manages S$55.7 billion of assets across Asia Pacific, North America and Europe, of which S

  13. Slide 13: Portfolio Highlights

    PORTFOLIO HIGHLIGHTS Hi-Tech Buildings, build-to-suit project for HP

  14. Slide 14: Portfolio Overview

    Portfolio Overview North American Singapore Portfolio Overall Portfolio Portfolio Number of properties 87 27 114 NLA (million sq ft) 16.6 4.31 20.91 97.8% 98.7% 90.5% 90.7% 90.9% 91.5%2 1 Excludes the parking decks (150 Carnegie Way and 171 Carnegie Way) at 180 Peachtree. 2 Based on MIT’s 40% intere

  15. Slide 15: Lease Expiry Profile

    Lease Expiry Profile EXPIRING LEASES BY GROSS RENTAL INCOME1 As at 31 March 2020 WALE based on date of commencement of leases (years)2 Singapore Portfolio 3.4 North American Portfolio 7.4 30.3% Overall Portfolio1 4.2 19.7% 17.7% 17.0% 15.3% FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 & Beyond Flatted Fa

  16. Slide 16: Large and Diversified Tenant Base

    Large and Diversified Tenant Base TOP 10 TENANTS BY GROSS RENTAL INCOME1 As at 31 March 2020 8.0%  Over 2,200 tenants  Largest tenant contributes 8.0% of Portfolio’s Gross Rental Income  Top 10 tenants forms about 29.1% of Portfolio’s Gross Rental Income 4.0% 3.6% 2.9% 2.8% 2.4% 1.6% 1.6% 1.1% 1.

  17. Slide 17: Tenant Diversification Across Trade Sectors

    Tenant Diversification Across Trade Sectors1 No single trade sector accounted >18% of Portfolio’s Gross Rental Income By Gross Rental Income As at 31 Mar 2020 1 Based on MIT’s 40% interest of the joint venture with MIPL in a portfolio of 14 data centres in United States through MRDCT and 50% interes

  18. Slide 18: Singapore Portfolio Performance

    Singapore Portfolio Performance Gross Rental Rate Occupancy S$ psf/mth 100% $2.50 95.2%95.4%95.5% 94.3%94.5%95.1%95.0%94.9%95.0% 93.9% 93.5%93.8% 94.7%94.6% 93.2% 92.5% 93.0%92.5% 93.1%92.6% 92.3% 92.1% 91.3%90.7%91.5%90.8% 90.7% 90.2% 90.4%90.1%89.6% 89.8%90.5%90.2%90.5% 90% 87.8% 87.7% 86.2% $2.12

  19. Slide 19: Segmental Occupancy Levels (Singapore)

    Segmental Occupancy Levels (Singapore) 98.4% 98.8% 94.0% 90.4% 90.5% 90.7% 87.5% 86.2% 85.1% 86.1% 81.0% 80.0% Flatted Factories Hi-Tech Buildings Business Park Stack-up/Ramp-up Light Industrial Singapore Buildings Buildings Buildings Portfolio Left Bar Right Bar (3QFY19/20) (4QFY19/20) 19

  20. Slide 20: Rental Revisions (Singapore)

    Rental Revisions (Singapore) Gross Rental Rate (S$ psf/mth)1 For Period 4QFY19/20 Before Renewal $4.44 $4.55 $4.46 After Renewal New Leases $3.66 $3.66 $3.68 Passing Rent $1.88 $1.87 $1.73 2 $1.40 $1.32 $1.26 Flatted Factories Hi-Tech Buildings Business Park Buildings Stack-Up/Ramp-Up Buildings Rene

  21. Slide 21: Healthy Tenant Retention (Singapore)

    Healthy Tenant Retention (Singapore) LONG STAYING TENANTS RETENTION RATE FOR 4QFY19/20 Up to 1 yr 9.4% >10 yrs 95.1% 28.6% 89.6% >1 to 2 yrs 11.6% 75.6% 77.5% 72.7% 4 yrs or less More than 36.1% > 2 to 3 yrs 4 yrs 8.0% 63.9% >3 to 4 yrs 7.1% 0.0% >4 to 5 yrs Flatted Hi-Tech Business Stack-up / Light

  22. Slide 22: Completed Acquisition of 13 Data Centres in North America

    Completed Acquisition of 13 Data Centres in North America Turnkey Data Centres Powered Shell Data Centres 44490 Chilum Place 11900 East Cornell Avenue 50% 50% Transaction 50:50 joint venture (“MIT-MIPL JV”) with Mapletree Investments (“MIPL”) to acquire 13 data centres in the US and Canada:  3 full

  23. Slide 23: Redevelopment – Kolam Ayer 2

    Redevelopment – Kolam Ayer 2 Property GFA Plot Ratio Kolam Ayer 2 Cluster Two Flatted Factories and an amenity centre 506,720 sq ft 1.5 New Hi-Tech Buildings, including a After Redevelopment 865,600 sq ft 2.5 seven-storey BTS Facility for Anchor Tenant Artist’s impression of MIT’s new high-tech indu

  24. Slide 24: 4Q & FY19/20 Financial Performance

    4Q & FY19/20 FINANCIAL PERFORMANCE Hi-Tech Buildings, 18 Tai Seng

  25. Slide 25: 4Q & FY19/20 Results Highlights

    4Q & FY19/20 Results Highlights  Stable FY19/20 DPU driven by new revenue contributions from acquisitions and development projects • FY19/20 Distributable Income: S$265.3 million ( 14.5% y-o-y) • FY19/20 DPU: 12.24 cents ( 0.7% y-o-y) • 4QFY19/20 Distributable Income and DPU were S$69.2 million ( 1

  26. Slide 26: Statement of Profit or Loss (Year-on-Year)

    Statement of Profit or Loss (Year-on-Year) 4QFY19/20 4QFY18/19  / () (S$’000) (S$’000) Gross revenue 101,801 98,822 3.0% Property operating expenses (23,545) (22,972) 2.5% Net property income 78,256 75,850 3.2% Borrowing costs (11,029) (10,379) 6.3% Trust expenses (8,185) (8,623) (5.1%) Net fair v

  27. Slide 27: Statement of Profit or Loss (Year-on-Year)

    Statement of Profit or Loss (Year-on-Year) FY19/20 FY18/19  / () (S$’000) (S$’000) Gross revenue 405,858 376,101 7.9% Property operating expenses (87,789) (88,331) (0.6%) Net property income 318,069 287,770 10.5% Borrowing costs (45,019) (40,108) 12.2% Trust expenses (33,155) (33,431) (0.8%) Net f

  28. Slide 28: Statement of Profit or Loss (Qtr-on-Qtr)

    Statement of Profit or Loss (Qtr-on-Qtr) 4QFY19/20 3QFY19/20  / () (S$’000) (S$’000) Gross revenue 101,801 102,610 (0.8%) Property operating expenses (23,545) (20,705) 13.7% Net property income 78,256 81,905 (4.5%) Borrowing costs (11,029) (12,072) (8.6%) Trust expenses (8,185) (7,082) 15.6% Net f

  29. Slide 29: Balance Sheet

    Balance Sheet 31 Mar 2020 31 Dec 2019  / () 31 Mar 2019  / () Total assets (S$’000) 5,187,883 5,298,020 (2.1%) 4,607,064 12.6% Total liabilities (S$’000) 1,627,762 1,820,614 (10.6%) 1,559,538 4.4% Net assets attributable to 3,560,121 3,477,406 2.4% 3,047,526 16.8% Unitholders (S$’000) Net asset

  30. Slide 30: Higher Portfolio Value

    Higher Portfolio Value Valuation as at 31 Mar 2020 Valuation as at Property segment 31 Mar 2019 Capitalisation rate Local currency (million) S$ million 1 (S$ million)2 Hi-Tech Buildings3 S$1,790.3 1,790.3 1,628.8 5.25% to 6.50% Flatted Factories3 S$1,506.6 1,506.6 1,578.0 6.00% to 7.25% Business Par

  31. Slide 31: Strong Balance Sheet

    Strong Balance Sheet Strong balance sheet to 31 Mar 2020 31 Dec 2019 pursue growth opportunities Total debt (MIT Group) S$1,434.1 million S$1,644.8 million  ‘BBB+’ rating with Stable Outlook by Fitch Ratings Weighted average 4.7 years 4.1 years tenor of debt Aggregate  100% of loans unsecured 37.6

  32. Slide 32: Well Diversified Debt Maturity Profile

    Well Diversified Debt Maturity Profile DEBT MATURITY PROFILE As at 31 March 2020 Weighted Average Tenor of Debt = 4.7 years  Loans due in FY20/21 were refinanced in 4QFY19/20  ~S$380 million of committed facilities available in FY20/21 28.9% 27.6% 15.6% 355.2 12.2% 395.4 178.5 8.7% 7.0% 175.0 125.

  33. Slide 33: Risk Management

    Risk Management 31 Mar 2020 31 Dec 2019  ~81% capital hedge: US$ investments in Fixed as a % of joint venture entities 73.4% 63.8% total debt matched with US$ Weighted average 3.8 years 4.1 years borrowings hedge tenor 4QFY19/20 3QFY19/20  About 69% of 1QFY20/21 net US$ Weighted average income str

  34. Slide 34: Outlook and Strategy

    OUTLOOK AND STRATEGY Hi-Tech Buildings, 7337 Trade Street, San Diego

  35. Slide 35: 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: 38.8 million sq m  Potential net new supply of 1.9 million sq m in 20201, of which • Multi-user factory space accounts for 0.9 million sq m. About 50

  36. Slide 36: Outlook – Singapore

    Outlook Singapore  Challenging operating environment due to COVID-19 pandemic • GDP growth forecast for 2020 downgraded from -0.5% to 1.5% on 19 Feb 2020 to -4.0% to -1.0%1 on 26 Mar 2020 • Business confidence plunged to an all-time low for 2Q2020, after displaying positive sentiment in 1Q20202 • M

  37. Slide 37: Outlook – North America

    Outlook North America  Healthy demand in the United States • According to JLL3, data centre markets in the United States of America (the “United States”) finished 2019 with 349.6 megawatts (“MW”) in net absorption amidst increased cloud activities across data centre markets in the United States. Ne

  38. Slide 38: Diversified and Resilient

    Diversified and Resilient  Overall Portfolio’s WALE  Loans due in FY20/21  Completed second increased q-o-q from were refinanced in overseas acquisition of 3.9 years to 4.2 years 4QFY19/20 3 turnkey data centres as at 31 Mar 2020 and 10 powered shell  Healthy interest data centres in North  Lar

  39. Slide 39: End of Presentation

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

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