Mapletree Industrial Trust · SGX:ME8U

Mapletree Industrial Trust — Investor Presentation (March 2022)

42 slides from Mapletree Industrial Trust's investor presentation, Mar 7, 2022

  1. Slide 1: Investor Presentation March 2022

    Investor Presentation March 2022

  2. Slide 2: Important Notice

    Important Notice This presentation shall be read in conjunction with Mapletree Industrial Trust’s (“MIT”) financial results for Third Quarter Financial Year 2021/2022 in the SGXNET announcement dated 25 January 2022. This presentation is for information only and does not constitute an offer or solic

  3. Slide 3: Contents

    Contents 01 Key Highlights 02 Overview of Mapletree Industrial Trust 03 Portfolio Update 04 3Q & YTD FY21/22 Financial Highlights 05 Sustainability 06 Outlook and Strategy 3

  4. Slide 4: Key Highlights

    KEY HIGHLIGHTS Data Centres, 44490 Chilum Place (ACC2), Northern Virginia

  5. Slide 5: Sustainable and Growing Returns

    Sustainable and Growing Returns Distributable Income DPU (S$ million) (cents) 3.49 3.47 100 3.283.30 3.35 3.50 3.16 3.103.13 3.10 89.5 90 88.4 2.852.87 81.1 82.7 3.00 80 72.9 70.7 69.469.270.6 2.50 70 63.263.5 60 2.00 50 1.50 40 30 1.00 20 0.50 10 0 0.00 3Q¹ 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

  6. Slide 6: Evolving MIT Portfolio Profile

    Evolving MIT Portfolio Profile Reshaping and Building a Portfolio of Assets for Higher Value Uses Through Development Projects and Acquisitions 70 Properties 143 Properties As at 31 Dec 2021 AUM by geography Singapore 50.3% North America 49.7% 1 Based on MIT’s book value of investment properties as

  7. Slide 7: Portfolio Growth since IPO

    Portfolio Growth since IPO FY20/21 FY21/22 3 Asset Enhancement S$6.8b Initiatives (“AEI”) FY19/20 5 Build-to-Suit (“BTS”) S$5.9b Projects Acquisition 9 Acquisitions FY18/19 Remaining 60% interest in 14 US DCs S$4.8b FY17/18 US$494m S$4.3b Acquisition FY16/17 DC in FY15/16 S$3.7b Virginia FY14/15 US$

  8. Slide 8: 3QFY21/22 Highlights

    3QFY21/22 Highlights  Strong performance driven primarily by contribution from the portfolio acquisition of data centres in North America • 3QFY21/22 Distributable Income: S$89.5 million ( 10.4% y-o-y) • 3QFY21/22 DPU: 3.49 cents ( 6.4% y-o-y)  Portfolio and investment updates • Average Overall Po

  9. Slide 9: Redevelopment – Kolam Ayer

    Redevelopment – Kolam Ayer 21 161, 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

  10. Slide 10: Overview of Mapletree Industrial Trust

    OVERVIEW OF MAPLETREE INDUSTRIAL TRUST Hi-Tech Building, 18 Tai Seng

  11. Slide 11: Overview of Mapletree Industrial Trust

    Overview of Mapletree Industrial Trust Mapletree Investments Pte Ltd Public & Inst MIPL Sponsor (“MIPL”) Unitholders 74.4% 25.6% Owns 25.6% of MIT Trustee Focused on (i) industrial real estate assets in Singapore, excluding Manager Investment properties primarily used for logistics mandate purposes

  12. Slide 12: Diverse Portfolio of 143 Properties

    Diverse Portfolio of 143 Properties DATA CENTRES FLATTED FACTORIES Facilities used primarily for the storage and High-rise multi-tenanted industrial buildings processing of data. These include core-and-shell with basic common facilities used for light to fully-fitted facilities, which include buildi

  13. Slide 13: Healthy Returns since IPO

    Healthy Returns since IPO COMPARATIVE TRADING PERFORMANCE SINCE IPO¹ 400 MIT UNIT PRICE +179.6% 350 300 250 200 FTSE ST REITS INDEX +20.9% 150 100 50 FTSE STRAITS TIMES INDEX 1.5% 0 Oct 10 Oct 11 Oct 12 Oct 13 Oct 14 Oct 15 Oct 16 Oct 17 Oct 18 Oct 19 Oct 20 Oct 21 Rebased MIT Unit Price Rebased FTS

  14. Slide 14: 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 2021, the Sponsor owns and manages S$66.3 billion of assets across Asia Pacific, Europe, the United Kingdom and North

  15. Slide 15: Portfolio Update

    PORTFOLIO Data Centres, UPDATE 13831 Katy Freeway, Houston

  16. Slide 16: Portfolio Overview

    Portfolio Overview Singapore North American Overall Portfolio Portfolio Portfolio Number of properties 86 57 143 NLA (million sq ft) 15.9 8.31 24.21 Occupancy (%) 3QFY21/22 93.7 93.3 93.62 2QFY21/22 93.6 93.9 93.72 SEGMENTAL OCCUPANCY RATES1 2 2 98.7% 98.6% 94.5% 93.9% 92.0% 92.0% 96.4% 97.6% 93.7%2

  17. Slide 17: Lease Expiry Profile

    Lease Expiry Profile EXPIRING LEASES BY GROSS RENTAL INCOME1 As at 31 December 2021 WALE based on date of commencement of leases (years) 2 Singapore Portfolio 2.8 North American Portfolio 6.3 39.4% Overall Portfolio1 4.2 21.6% 16.0% 12.6% 9.0% 1.4% FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 FY26/27 & B

  18. Slide 18: Large and Diversified Tenant Base

    Large and Diversified Tenant Base TOP 10 TENANTS BY GROSS RENTAL INCOME1 As at 31 December 2021 6.2%  Over 2,000 tenants  Largest tenant contributes 6.2% of Portfolio’s Gross Rental Income 5.4%  Top 10 tenants forms about 29.7% of Portfolio’s Gross Rental Income Hi-Tech Buildings Data Centres 3.1

  19. Slide 19: 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 Dec 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

  20. Slide 20: Properties in Singapore

    86 Properties in Singapore Total WALE Weighted Average Unexpired Occupancy NLA (By GRI)1 Lease Term of Underlying Land1 Rate2 15.9m sq ft 2.8 years 34.7 years 93.7% Data Centres Hi-Tech Buildings Flatted Factories Business Park Buildings Stack-up/Ramp-up Buildings Light Industrial Buildings 1 As at

  21. Slide 21: Singapore Portfolio Performance

    Singapore Portfolio Performance Occupancy Gross Rental Rate S$ psf/mth 100% $2.50 93.6% 93.7% 92.9% 93.4% 92.2% 91.5% 90.5% 90.2% 90.5% 90.7% 90.2% 90% $2.12 $2.13 $2.13 $2.13 $2.11 $2.10 $2.10 80% $2.11 $2.08 $2.03 $2.05 $2.00 70% 60% 50% $1.50 40% 30% $1.00 20% 10% 0% $0.50 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

  22. Slide 22: Rental Revisions (Singapore)

    Rental Revisions (Singapore) GROSS RENTAL RATE (S$ PSF/MTH) 1 For Period 3QFY21/22 Before Renewal After Renewal New Leases $3.53 $3.72 $3.22 Passing Rent $3.12 $3.08 $3.08 $2.41 $2.45 $2.20 $1.91 $1.91 $1.90 $1.73 $1.75 $1.26 $1.27 $1.27 $1.38 Hi-Tech Buildings Business Park Buildings Flatted Factor

  23. Slide 23: Healthy Tenant Retention (Singapore)

    Healthy Tenant Retention (Singapore) LONG STAYING TENANTS RETENTION RATE FOR 3QFY21/22 Up to 1 yr 11.6% >10 yrs 92.2% 32.8% 87.4% >1 to 2 yrs 84.0% 84.0% 79.5% 8.3% 4 yrs or less 53.9% More than 37.4% > 2 to 3 yrs 4 yrs 9.3% 62.6% >3 to 4 yrs 8.2% N.A. Data Hi-Tech Business Flatted Stack-up / Light

  24. Slide 24: Divestment – 19 Changi South Street 1

    Divestment – 19 Changi South Street 1 Sale Price GFA Completion S$13.0 million 82,737 sq ft 1H2022  Proposed divestment of a two-storey Light Industrial Building with a four-storey extension block located within the Changi South Industrial Estate  30-year land lease commencing from 16 Nov 1996 and

  25. Slide 25: Data Centres Across North America

    57 Data Centres Across North America Total WALE Weighted Average Unexpired Occupancy NLA1 (By GRI)2 Lease Term of Underlying Land3 Rate4 8.3m sq ft 6.3 years Freehold 93.3% Minnesota Ontario 2 1 Wisconsin 1 2 Michigan Massachusetts 2 2 Pennsylvania 1 Connecticut 2 2 Illinois 1 2 New Jersey Ohio 2 In

  26. Slide 26: Diversified Mix of Data Centres (North America)

    Diversified Mix of Data Centres (North America)  90.6% of the North American Portfolio are on triple net lease structures whereby all outgoings1 are borne by the tenants  Good mix of powered shell, fitted hyperscale and fitted data centres SPLIT BETWEEN LEASE TYPES FOR THE NORTH AMERICAN PORTFOLIO

  27. Slide 27: 3Q & YTD FY21/22 Financial Highlights

    3Q & YTD FY21/22 FINANCIAL HIGHLIGHTS Business Park Buildings, The Strategy and The Synergy

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

    Statement of Profit or Loss (Year-on-Year) 3QFY21/22 3QFY20/21  / ( ) (S$’000) (S$’000) Gross revenue 162,352 123,685 31.3% Property operating expenses (39,617) (24,756) 60.0% Net property incom e 122,735 98,929 24.1% Borrow ing costs (19,240) (15,508) 24.1% Trust expenses (13,290) (10,987) 21.0%

  29. Slide 29: Statement of Profit or Loss (Year-on-Year)

    Statement of Profit or Loss (Year-on-Year) YTD FY21/22 YTD FY20/21  / ( ) (S$’000) (S$’000) Gross revenue 445,972 326,141 36.7% Property operating expenses (98,198) (66,958) 46.7% Net property incom e 347,774 259,183 34.2% Borrow ing costs (51,878) (38,091) 36.2% Trust expenses (36,955) (30,048) 2

  30. Slide 30: Statement of Profit or Loss (Qtr-on-Qtr)

    Statement of Profit or Loss (Qtr-on-Qtr) 3QFY21/22 2QFY21/22  / ( ) (S$’000) (S$’000) Gross revenue 162,352 155,560 4.4% Property operating expenses (39,617) (35,240) 12.4% Net property incom e 122,735 120,320 2.0% Borrow ing costs (19,240) (17,400) 10.6% Trust expenses (13,290) (10,722) 24.0% Gai

  31. Slide 31: Statement of Financial Position

    Statement of Financial Position 31 Dec 2021 30 Sep 2021  / () Total assets (S$’000) 8,336,785 8,211,340 1.5% Total liabilities (S$’000) 3,254,186 3,172,524 2.6% Net assets attributable to Unitholders 4,783,127 4,736,962 1.0% (S$’000) Net asset value per Unit (S$) 1 1.80 1.78 1.1% 1 Net tangible as

  32. Slide 32: Strong Balance Sheet

    Strong Balance Sheet 31 Dec 2021 30 Sep 2021 Total debt (MIT Group) S$2,975.5 million S$2,905.6 million Weighted average tenor of debt 3.5 years 2.9 years Aggregate leverage ratio1 39.9% 39.6% Strong balance sheet to pursue growth opportunities  ‘BBB+’ rating with Stable Outlook by Fitch Ratings 

  33. Slide 33: Well Diversified Debt Maturity Profile

    Well Diversified Debt Maturity Profile DEBT MATURITY PROFILE As at 31 December 2021 Weighted Average Tenor of Debt = 3.5 years 33

  34. Slide 34: Risk Management

    Risk Management 31 Dec 2021 30 Sep 2021 Fixed as a % of total debt 79.7% 57.7% Weighted average hedge tenor 3.3 years 2.6 years Weighted average all-in funding 2.3% 2.4% cost for the quarter Interest coverage ratio (“ICR”) 6.4 times 6.7 times for the quarter ICR for the trailing 12 months1 6.5 times

  35. Slide 35: Sustainability

    SUSTAINABILITY Solar Panels at the Rooftop of K&S Corporate Headquarters

  36. Slide 36: FY20/21 Sustainability Progress

    FY20/21 Sustainability Progress Environmental Social Governance First foray into renewable S$12.7 million energy at two MIT’s rental reliefs in properties with generating FY20/21 capacity of 848.8 kWp Inaugural submission to GRESB Real Estate Assessment 2021 Secured inaugural Donated over 2 S$300.0

  37. Slide 37: Outlook and Strategy

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

  38. Slide 38: 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 and business park space: 39.4 million sq m  Potential net new supply of 2.3 million sq m in 20221, of which • Multi-user factory space accounts for 1.0 mill

  39. Slide 39: Outlook (Singapore)

    Outlook Singapore  Challenging operating environment in view of uncertainty over trajectory of economic recovery from COVID-19 pandemic • Singapore economy grew by 6.1% y-o-y in the quarter ended 31 Dec 2021, moderating from the 7.5% growth in the preceding quarter1 • Business sentiments improved m

  40. Slide 40: Outlook (North America)

    Outlook North America  Resilient asset class with growth opportunities • According to CBRE3, wholesale colocation inventory in primary data centre markets has more than doubled to 3.08 gigawatts since 2016. With 527.6 megawatts currently under construction in primary markets, the accelerated growth

  41. Slide 41: 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  Resumed distribution reinvestment plan to help fund progre

  42. Slide 42: 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 — Investor Presentation (March 2022) on 6ix