Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Mapletree Commercial Trust — FY2016/17 Earnings Presentation
31 slides from Singapore Exchange's earnings presentation, Apr 25, 2017
Slide 1: Mapletree Commercial Trust 4Q & FY16/17 Financial Results
Mapletree Commercial Trust 4Q & FY16/17 Financial Results 25 April 2017 1
Slide 2: Important Notice
Important Notice This presentation is for information only and does not constitute an offer or solicitation of an offer to sell or invitation to subscribe for or acquire any units in Mapletree Commercial Trust (“MCT”) and units in MCT (“Units”). The past performance of the Units and MCT is not indic
Slide 3: Agenda
Agenda Key Highlights Financial Performance Portfolio Updates Outlook 3
Slide 4: Key Highlights
Key Highlights VivoCity
Slide 5: Key Highlights
Key Highlights Financial Performance Gross revenue and net property income (“NPI”) for 4Q FY16/171 grew 47.3% and 51.2% respectively from 4Q FY15/162 Distribution per unit (“DPU”) for 4Q FY16/17 grew 11.9% to 2.26 Singapore cents, driven by the accretive acquisition of Mapletree Business City I
Slide 6: Key Highlights
Key Highlights Portfolio Performance VivoCity achieved record S$951.8 mil of sales in FY16/17, up 1.3% from the previous year Commenced works on Level 1 and Level 2 of VivoCity to convert lower yielding to higher yielding spaces Capital Management Well-distributed debt maturity profile, with n
Slide 7: Financial Performance
Financial Performance Mapletree Business City I 7
Slide 8: 4Q FY16/17 Financial Scorecard
4Q FY16/17 Financial Scorecard 4Q FY16/17 DPU up 11.9% to 2.26 Singapore cents Led by Positive Contributions from MBC I, VivoCity, Mapletree Anson and PSA Building S$’000 unless otherwise stated 4Q FY16/17 4Q FY15/16 Variance Gross Revenue 107,527 72,991 47.3% Property Operating Expenses (24,279) (1
Slide 9: FY16/17 Financial Scorecard
FY16/17 Financial Scorecard FY16/17 Gross Revenue and NPI up 31.3% and 32.4% respectively Income Available for Distribution up 31.7% S$’000 unless otherwise stated FY16/17 FY15/16 Variance Gross Revenue 377,747 287,761 31.3% Property Operating Expenses (85,441) (67,048) 27.4% Net Property Income 292
Slide 10: 4Q and 2H FY16/17 Financial Scorecard Against Forecast
4Q and 2H FY16/17 Financial Scorecard Against Forecast 4Q and 2H FY16/17 DPU Higher than Forecast by 6.1% and 6.3% respectively 4Q FY16/17 2H FY16/17 S$’000 unless otherwise stated Actual Forecast Variance Actual Forecast Variance Gross Revenue 107,527 107,124 0.4% 216,288 215,489 0.4% Property Oper
Slide 11: Portfolio Valuation
Portfolio Valuation 46.0% Growth in Total Investment Properties Boosted by Addition of MBC I Underlying Valuation Assumptions Largely Unchanged Valuation Valuation as at 31 March 20171 as at 31 March 2016 S$ million S$ per sq ft NLA Cap Rate (%) S$ million VivoCity 2,741.0 2,618 psf 5.15% 2,597.0 Of
Slide 12: Healthy Balance Sheet
Healthy Balance Sheet As at As at S$’000 unless otherwise stated 31 March 2017 31 March 2016 Investment Properties 6,337,000 4,341,800 Other Assets 68,653 73,379 Total Assets 6,405,653 4,415,179 Borrowings 2,329,754 1,551,519 Other Liabilities 118,446 99,684 Net Assets 3,957,453 2,763,976 Units in I
Slide 13: Key Financial Indicators
Key Financial Indicators Maintained Robust Balance Sheet through Proactive Capital Management As at As at As at 31 March 2017 31 December 2016 31 March 2016 Total Debt Outstanding S$2,327.6 mil S$2,327.6 mil S$1,550.5 mil % Fixed Debt 81.2% 81.2% 73.8% Gearing Ratio 36.3%1 37.0% 35.1% Interest Cover
Slide 14: Well-Distributed Debt Maturity Profile
Well-Distributed Debt Maturity Profile (as at 31 March 2017) Total gross debt: S$2,327.6 mil • No refinancing due in FY17/18 452.7 464.0 Fixed Rate Notes 447.6 439.3 Bank Debt 50.0 70.0 Gross Debt (S$ mil) 160.0 200.0 264.0 397.6 175.0 369.3 292.7 264.0 264.0 85.0 175.0 85.0 FY17/18 FY18/19 FY19/20
Slide 15: FY16/17 – Performance In A Glance
FY16/17 – Performance In A Glance VivoCity MBC I PSA Building Mapletree Anson MLHF As at or for As at or for Key Indicators Financial Year ended Financial Year ended 31 March 2016 31 March 2017 Gross Revenue (S$ million) 287.8 31.3% 377.7 NPI (S$ million) 220.7 32.4% 292.3 Income Available for Distr
Slide 16: MCT Unit Price Performance
MCT Unit Price Performance (Relative Price Performance from MCT’s Listing on 27 April 2011 to 31 March 2017) MCT’s Unit Price has Outperformed Consistently since IPO 190% Unit Price on 31 March 2017: $1.53 Daily Closing Price as a % of Closing Price on 27 April 2011 170% MCT +73.9% 150% 130% Unit Pr
Slide 17: Total Returns to Unitholders
Total Returns to Unitholders Track Record in Delivering Steady Total Returns to Unitholders Unit Price of S$1.53 Since IPO For FY16/17 as at 31 March 2017 Capital Appreciation 73.9%1 8.5%2 Total Distributions Paid Out / Payable3 49.9% 6.1% Total Returns 123.7%4 14.6% 1. Based on closing unit price o
Slide 18: Distribution Details
Distribution Details Distribution Period 1 January 2017 – 31 March 2017 Distribution Amount 2.26 Singapore cents per unit Distribution Timetable Notice of Books Closure Date Tuesday, 25 April 2017 Last Day of Trading on “cum” Basis Friday, 28 April 2017 Ex-Date Tuesday, 2 May 2017 Books Closure Date
Slide 19: Portfolio Updates
Portfolio Updates VivoCity 19
Slide 20: Portfolio Revenue and Net Property Income
Portfolio Revenue and Net Property Income Strong Growth in Gross Revenue and NPI Driven by MBC I Existing Portfolio1 Gross Revenue and NPI up 5.3% and 4.6% respectively Gross Revenue Net Property Income 31.3% 32.4% 377.7 2 292.3 74.8 287.8 61.3 17.9 18.5 34.5 220.7 30.2 14.3 15.1 24.0 27.8 (S$mil) 4
Slide 21: Portfolio Occupancy
Portfolio Occupancy Overall Portfolio Committed Occupancy at 98.8% As at As at As at As at As at 31 Mar 2016 30 Jun 2016 30 Sep 2016 31 Dec 2016 31 Mar 2017 VivoCity 99.6% 98.9% 99.3% 99.9% 99.0%1 MBC I - - 98.3% 99.0% 99.0%2 3 PSA Building 92.8% 96.5% 98.5% 96.2% 98.3% Mapletree Anson 91.0% 94.7% 1
Slide 22: FY16/17 Leasing Update
FY16/17 Leasing Update Achieved 11.6% Rental Uplift for Entire Portfolio in FY16/17 Number of Leases Retention Rate % Change in 1 Committed (by NLA) Fixed Rents Retail 121 95.3% 13.5%2 Office/ 20 87.0% 8.5%4 Business Park3 MCT Portfolio 141 90.8% 11.6% 1. Based on average of the fixed rents over the
Slide 23: Lease Expiry Profile
Lease Expiry Profile (as at 31 March 2017) Portfolio Resilience Supported by Manageable Lease Expiries Portfolio WALE 2.7 years Office/Business Park 3.4 years Retail 2.0 years 18.0% 17.5% 15.2% 14.5% As % of Gross Rental Revenue 8.2% 7.8% 6.6% 5.3% 4.5% 2.5% FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 &
Slide 24: Overall Top Tenants
Overall Top 10 Tenants (by Gross Rental Revenue as at 31 March 2017) Top 10 Tenants Contributed 25.2% of Gross Rental Revenue Tenant % of Gross Rental Revenue 1 Merrill Lynch Global Services Pte. Ltd. 3.7% 2 The Hongkong and Shanghai Banking Corporation Limited 3.4% 3 Samsung Asia Pte. Ltd. 2.6% Gov
Slide 25: Portfolio Tenant Trade Mix
Portfolio Tenant Trade Mix (by Gross Rental Revenue as at 31 March 2017) Trade Mix % of Gross Rental Income 1 Food & Beverage 16.1% 2 Banking & Financial Services 13.2% 3 Fashion 10.3% 4 Government Related 5.7% 5 IT Services & Consultancy 5.6% 6 Shipping Transport 5.5% 7 Fashion Related 5.0% 8 Depar
Slide 26: VivoCity – Shopper Traffic and Tenant Sales
VivoCity – Shopper Traffic and Tenant Sales 4Q FY16/17 Shopper Traffic up 8.9% year-on-year 4Q FY16/17 Tenant Sales up 0.4% year-on-year 1 Shopper Traffic (million) Tenant Sales (S$ million) 4.8% 1.3% 951.8 950.0 55.8 939.2 56.0 54.0 53.2 930.0 52.0 910.0 50.0 48.0 890.0 46.0 44.0 870.0 42.0 40.
Slide 27: VivoCity – Asset Enhancement Initiatives
VivoCity – Asset Enhancement Initiatives Conversion of Space on Level 1 and Level 2 to Improve Yield Fully committed with estimated ROI of approximately 25%1 on stablised basis Enhancement work started in March 2017, and is expected to complete by 2Q FY17/18 Level 1 Level 2 New Tangs area, effec
Slide 28: Outlook
Outlook Financial Highlights PSA Building - ARC 28
Slide 29: Outlook
Outlook Singapore Economy The Singapore economy grew 2.5% year-on-year in the first quarter of 2017, easing from the 2.9% growth in the previous quarter. On a quarter-on-quarter seasonally-adjusted annualised basis, the economy contracted by 1.9% after posting a strong rebound of 12.3% in the prec
Slide 30: Outlook – Office (cont'd)
Outlook Office (cont’d) However, concerns remained for the impending vacancies that would arise from the relocation of larger tenants from lower quality or older office stock. With the further slowing down of rental decreases in Q1 2017, CBRE believed that there were potentials for some return t
Slide 31: Thank You
Thank You For enquiries, please contact: Teng Li Yeng Investor Relations Tel: +65 6377 6836 Email: teng.liyeng@mapletree.com.sg 31
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