Mapletree Industrial Trust · SGX:ME8U

Mapletree Industrial Trust — Q4 2021 Earnings Presentation

33 slides from Mapletree Industrial Trust's earnings presentation, Apr 29, 2021

  1. Slide 1: 4Q & FY20/21 Financial Results

    4Q & FY20/21 Financial Results 29 April 2021

  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 2020/2021 in the SGXNET announcement dated 29 April 2021. This presentation is for information only and does not constitute an offer or solici

  3. Slide 3: Contents

    Contents 01 Key Highlights – 1 Apr 2020 to 31 Mar 2021 02 4Q & FY20/21 Financial Performance 03 Portfolio Update 04 Investment Update 05 Outlook and Strategy 3

  4. Slide 4: Key Highlights 1 Apr 2020 to 31 Mar 2021

    KEY HIGHLIGHTS 1 APR 2020 TO 31 MAR 2021 Hi-Tech Building, 18 Tai Seng

  5. Slide 5: Key Highlights

    Key Highlights  Growth underpinned by higher contribution from North American data centres but partly offset by rental reliefs and redevelopment of Kolam Ayer 2 Cluster • FY20/21 Distributable Income: S$295.3 million ( 11.3% y-o-y) • FY20/21 DPU: 12.55 cents ( 2.5% y-o-y) • 4QFY20/21 Distributable

  6. Slide 6: Sustainable and Growing Returns

    Sustainable and Growing Returns Distributable Income DPU (S$ million) (cents) 100 3.30 3.50 3.28 3.133.16 3.073.083.10 90 3.00 2.95 3.003.01 3.10 2.85 2.882.92 2.88 2.85 2.87 3.00 2.792.822.81 2.832.83 81.1 2.73 80 2.672.65 2.60 2.472.512.512.51 72.9 2.43 69.2 70.6 70.7 2.37 69.4 2.50 70 2.262.292.3

  7. Slide 7: 4Q & FY20/21 Financial Performance

    4Q & FY20/21 FINANCIAL PERFORMANCE Hi-Tech Buildings, build-to-suit project for HP

  8. Slide 8: Statement of Profit or Loss (Year-on-Year)

    Statement of Profit or Loss (Year-on-Year) 4QFY20/21 4QFY19/20  / ( ) (S$’000) (S$’000) Gross revenue 121,062 101,801 18.9% Property operating expenses (29,254) (23,545) 24.2% Net property incom e 91,808 78,256 17.3% Borrow ing costs (14,797) (11,029) 34.2% Trust expenses (12,237) (8,185) 49.5% Ne

  9. Slide 9: Statement of Profit or Loss (Year-on-Year)

    Statement of Profit or Loss (Year-on-Year) FY20/21 FY19/20  / ( ) (S$’000) (S$’000) Gross revenue 447,203 405,858 10.2% Property operating expenses (96,212) (87,789) 9.6% Net property incom e 350,991 318,069 10.4% Borrow ing costs (52,888) (45,019) 17.5% Trust expenses (42,285) (33,155) 27.5% Net

  10. Slide 10: Statement of Profit or Loss (Qtr-on-Qtr)

    Statement of Profit or Loss (Qtr-on-Qtr) 4QFY20/21 3QFY20/21  / () (S$’000) (S$’000) Gross revenue 121,062 123,685 (2.1%) Property operating expenses (29,254) (24,756) 18.2% Net property income 91,808 98,929 (7.2%) Borrowing costs (14,797) (15,508) (4.6%) Trust expenses (12,237) (10,987) 11.4% Net

  11. Slide 11: Statement of Financial Position

    Statement of Financial Position 31 Mar 2021 31 Dec 2020  / () 31 Mar 2020  / () Total assets (S$’000) 6,391,619 6,167,895 3.6% 5,187,883 23.2% Total liabilities (S$’000) 2,496,619 2,181,378 14.5% 1,627,762 53.4% Net assets attributable to 3,895,000 3,986,517 (2.3%) 3,560,121 9.4% Unitholders (S$

  12. Slide 12: Portfolio Valuation

    Portfolio Valuation Valuation as at 31 Mar 2021 Valuation as at Property segment Local currency 31 Mar 2020 Capitalisation rate S$ million 1 (S$ million)2 (million) Data Centres (Singapore) S$406.8 406.8 415.5 6.00% to 6.50% Hi-Tech Buildings S$1,374.5 1,374.5 1,374.8 5.25% to 6.50% Business Park Bu

  13. Slide 13: Strong Balance Sheet

    Strong Balance Sheet 31 Mar 2021 31 Dec 2020 Total debt (MIT Group) S$2,245.2 million S$1,949.3 million Weighted average tenor of debt 3.6 years 3.2 years Aggregate leverage ratio1 40.3% 37.3% Strong balance sheet to pursue growth opportunities  ‘BBB+’ rating with Stable Outlook by Fitch Ratings 

  14. Slide 14: Well Diversified Debt Maturity Profile

    Well Diversified Debt Maturity Profile DEBT MATURITY PROFILE As at 31 March 2021  More than S$600 million of committed facilities available 23.7% 16.4% 16.9% 16.9% 472.0 12.7% 335.0 7.8% 368.0 379.7 285.5 5.6% 175.0 125.0 45.0 60.0 FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 MTN

  15. Slide 15: Risk Management

    Risk Management 31 Mar 2021 31 Dec 2020 Fixed as a % of total debt 76.8% 96.2% Weighted average hedge tenor 3.0 years 3.0 years Weighted average all-in funding 2.8% 2.9% cost for the quarter Interest coverage ratio for the 6.0 times 6.4 times quarter Interest coverage ratio for the 6.4 times 7.2 tim

  16. Slide 16: Portfolio Update

    PORTFOLIO UPDATE Business Park Buildings, The Strategy and The Synergy

  17. Slide 17: 115 Properties Across 6 Property Segments

    115 Properties Across 6 Property Segments S$6.8 billion1 21.3 million2 >2,000 tenants AUM NLA (sq ft) Tenant Base Light Industrial Buildings 1.0% Data Centres: 41.2% Stack-up/Ramp-up Singapore: 6.2% Buildings North America: 35.0% 7.2% Data Centres Flatted Factories Flatted Factories 21.7% AUM1 S$6

  18. Slide 18: Portfolio Overview

    Portfolio Overview Singapore North American Overall Portfolio Portfolio Portfolio Number of properties 87 28 115 NLA (million sq ft) 16.3 5.01 21.31 Occupancy (%) 4QFY20/21 92.9 97.6 93.72 3QFY20/21 92.2 97.6 93.12 SEGMENTAL OCCUPANCY RATES1 98.2%2 98.2%2 98.3% 98.5% 89.7% 89.9% 92.9% 96.7% 93.1%2 9

  19. Slide 19: Lease Expiry Profile

    Lease Expiry Profile EXPIRING LEASES BY GROSS RENTAL INCOME1 As at 31 March 2021 WALE based on date of commencement of leases (years) 2 Singapore Portfolio 3.1 North American Portfolio 6.2 Overall Portfolio1 4.0 30.4% 24.7% 18.2% 14.8% 5.9% 6.0% FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 FY26/27 & Beyo

  20. Slide 20: Large and Diversified Tenant Base

    Large and Diversified Tenant Base TOP 10 TENANTS BY GROSS RENTAL INCOME1 As at 31 March 2021 7.3%  Over 2,000 tenants 6.4%  Largest tenant contributes 7.3% of Portfolio’s Gross Rental Income  Top 10 tenants forms about 33.3% of Portfolio’s Gross Rental Income Hi-Tech Buildings Data Centres 3.8% 3

  21. Slide 21: Tenant Diversification Across Trade Sectors

    Tenant Diversification Across Trade Sectors1 No single trade sector accounted >17% of Portfolio’s Gross Rental Income By Gross Rental Income As at 31 Mar 2021 1 Based on MIT’s 50% interest of the joint venture with MIPL in three fully fitted hyperscale data centres and 10 powered shell data centres

  22. Slide 22: Singapore Portfolio Performance

    Singapore Portfolio Performance Occupancy Gross Rental Rate S$ psf/mth 100% $2.50 95.1% 95.0% 94.9% 95.0% 95.2% 95.4% 95.5% 94.7% 94.6% 94.3% 94.5% 93.9% 93.2% 93.5% 93.8% 93.0% 92.5% 93.1% 92.6% 92.3% 92.5% 92.9% 92.1% 92.2% 91.3% 90.7% 91.5% 90.8% 91.5% 90.2% 90.4% 90.1% 90.5% 90.2% 90.5% 90.7% 90

  23. Slide 23: Rental Revisions (Singapore)

    Rental Revisions (Singapore) GROSS RENTAL RATE (S$ PSF/MTH) 1, 2 For Period 4QFY20/21 Before Renewal $4.67 After Renewal New Leases $3.55 Passing Rent $3.22 $3.35 $1.98 $1.91 $1.68 $1.63 $1.67 $1.29 $1.25 $1.61 $1.10 $1.25 Hi-Tech Buildings Business Park Buildings Flatted Factories Stack-Up/Ramp-Up

  24. Slide 24: Healthy Tenant Retention (Singapore)

    Healthy Tenant Retention (Singapore) LONG STAYING TENANTS RETENTION RATE FOR 4QFY20/21 Up to 1 yr 9.5% 100.0% >10 yrs 94.3% 31.6% >1 to 2 yrs 89.7% 85.7% 8.8% 82.2% 4 yrs or less More than 35.4% > 2 to 3 yrs 4 yrs 11.0% 64.6% >3 to 4 yrs 6.1% N.A. 0.0% Data Hi-Tech Business Flatted Stack-up / Light

  25. Slide 25: Investment Update

    INVESTMENT UPDATE Data Centres, 44490 Chilum Place (ACC2), Northern Virginia

  26. Slide 26: Acquisition - 8011 Villa Park Drive

    Acquisition - 8011 Villa Park Drive Acquisition of a data centre and office located in the State of Virginia, the United States Acquisition (the “Property”) Address 8011 Villa Park Drive, Richmond, Virginia Tenant Multinational company with strong credit standing (the “New Tenant”) Land Area About 2

  27. Slide 27: Proposed Divestment – 26A Ayer Rajah Crescent

    Proposed Divestment – 26A Ayer Rajah Crescent1 Sale Price GFA Completion S$125.0 million 384,802 sq ft 2Q2021  Exercise of option to purchase 26A Ayer Rajah Crescent by Equinix Singapore2  Seven-storey data centre developed by MIT for Equinix in Jan 2015  30-year land lease commenced on 22 May 20

  28. Slide 28: Redevelopment – Kolam Ayer 2

    Redevelopment – Kolam Ayer 2 161, 163 & 165 Kallang Way 1 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’

  29. Slide 29: Outlook and Strategy

    OUTLOOK AND Data Centres, 7337 Trade Street, San Diego STRATEGY

  30. Slide 30: Outlook – Singapore

    Outlook Singapore  Challenging operating environment in view of uncertainty over trajectory of economic recovery from COVID-19 pandemic • Singapore economy grew by 0.2% y-o-y in the quarter ended 31 Mar 2021, a turnaround from the 2.4% contraction in the preceding quarter1 • While business sentimen

  31. Slide 31: Outlook – North America

    Outlook North America  Resilient asset class with growth opportunities • CBRE expects investment in data centres in North America to increase in 2021 based on strong revenue growth projection3. There will also be more supply entering the market due to the increased construction pipeline of 457.8 me

  32. Slide 32: Diversified and Resilient

    Diversified and Resilient  Anchored by large and diversified tenant base with low dependence Stable and on any single tenant or trade sector Resilient Portfolio  Focus on tenant retention to maintain a stable portfolio occupancy Enhanced  Committed facilities of more than S$600 million available

  33. Slide 33: 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

Mapletree Industrial Trust — Q4 2021 Earnings Presentation on 6ix