Manulife Us Reit · SGX:BTOU
Manulife Us Reit — Investor Day (March 2019)
21 slides from Manulife Us Reit's investor day presentation, Mar 27, 2019
Slide 1: Investor Day 2019
Investor Day 2019 Wednesday, 27 March 2019, 10.00AM to 2.00PM NTUC Auditorium, Level 7, 1 Marina Boulevard, Singapore 018989
Slide 2: Important Notice
Peachtree, Atlanta, Georgia Important Notice This presentation shall be read in conjunction with Manulife US REIT’s financial results announcement dated 11 February 2019 published on SGXNet. This presentation is for information purposes only and does not constitute or form part of an offer, invitati
Slide 3: Contents
Peachtree, Atlanta, Georgia Contents 1 Overview and About Manulife US REIT 2 Financial and Portfolio Performance 3 Looking Forward 3
Slide 4: Overview and About Manulife US REIT
Peachtree, Atlanta, Georgia Overview and About Manulife US REIT
Slide 5: Reputable Sponsor with Proven Track Record in Property Management
Reputable Sponsor with Proven Track Record in Peachtree, Atlanta, Georgia Property Management Vertically-Integrated Real Estate Platform: Global Real Estate AUM of US$17.4 b Vancouver Sponsor Calgary Kitchener/Waterloo Edmonton Toronto Canada Ottawa US$6.8 B Montreal AUM AUM Halifax 71% of Real Esta
Slide 6: Key Milestones since IPO
Peachtree, Atlanta, Georgia Key Milestones since IPO 20 May 2016 FY 2016 1H 2017 FY 2017 1H 2018 FY 2018 Listed on SGX DPU exceeded DPU exceeded Restated DPU Adjusted DPU Adjusted DPU forecast by projection by exceeded increased increased 4.8% 8.0% projection by 1.8% by 2.4% YoY by 3.6% YoY 2016 Feb
Slide 7: Financial and Portfolio Performance
Phipps, Atlanta, Georgia Financial and Portfolio Performance
Slide 8: Growing from Strength to Strength in FY 2018
Peachtree, Atlanta, Georgia Growing from Strength to Strength in FY 2018 US cents US$ m US$ m FY 1 +3.6% FY 90.7 +55.4% FY +32.4% 6.05 ADJUSTED DPU 2018 YoY 2018 2018 1,738.7 YoY YoY AUM FY FY FY NPI 2017 5.84 2017 58.4 2017 1,312.8 FY 3 FY FY 2016 2 3.55 20162 30.0 2016 833.8 2 0 2 4 6 0 20 40 60 8
Slide 9: Disciplined and Prudent Capital Management
Peachtree, Atlanta, Georgia Disciplined and Prudent Capital Management Gross Borrowings Well-Spread Debt Maturity Profile1 US$670.8 m US$ m Gearing Ratio 300 37.2%2 250 As at 31 Dec 2018 In advanced talks with 216.5 200 local and foreign banks 95.5 172.0 Weighted Average Interest Rate Penn 132.0 150
Slide 10: Superior Quality of Trophy and Class A Assets
Peachtree, Atlanta, Georgia Superior Quality of Trophy and Class A Assets Exchange, Jersey City 10 minutes from Manhattan across the Hudson River Plaza, Secaucus Affordable alternative to Manhattan attracts leading firms Figueroa, Los Angeles Boom in residential creates live, work, play environment
Slide 11: Cap Rates Stable; Portfolio Valuation +2.3%
Peachtree, Atlanta, Georgia Cap Rates Stable; Portfolio Valuation +2.3% Increase in Valuation due to Proactive Leasing and Continued Strength of Submarkets Implied Cap Valuation Rates2 Property 31 Dec 30 Jun 6M 31 Dec YoY 31 Dec 2018 31 Dec 2018 2018 2018 Change 2017 Change (US$ per sq ft1) (%) (US$
Slide 12: Minimal Leases Due in 2019; Long WALE of 5.8 Years
Peachtree, Atlanta, Georgia Minimal Leases Due in 2019; Long WALE of 5.8 Years Lease Expiry Profile as at 31 Dec 20181 (%) Well-Diversified Tenant Base Accommodation 51.1% Manufacturing, and Food Services, 48.7% 1.6% 1.0% Other, 2.3% Architectural and Engineering, 1.8% Gross Rental Income Legal, 22.
Slide 13: Limited Supply in Our Cities
Peachtree, Atlanta, Georgia Limited Supply in Our Cities Majority of our Properties are 5% - 10% Below Market Rents New Class A Inventory Manulife US REIT1 Properties Market Under Gross Asking Gross Construction RBA Vacancy Vacancy Rent per sq ft Properties Passing Rent (‘000 sq ft) (mil sq ft)) (%)
Slide 14: Advantage of U.S. Trophy/Class A Office
Peachtree, Atlanta, Georgia Advantage of U.S. Trophy/Class A Office Trophy/Class A Assets Provide Strong Income in Upcycles and Remain Resilient during Market Turmoil as compared to Class B & Lower Class Business Park Assets Trophy Class A Class B Older buildings with basic Description Highest quali
Slide 15: Looking Forward
Artist Impression of AEI in Figueroa, Los Angeles Looking Forward
Slide 16: U.S. – World's Largest Real Estate Market
Peachtree, Atlanta, Georgia U.S. – World’s Largest Real Estate Market Investment Criteria Long WALE High Occupancy Live, Work, Play Environment Strong Economic Fundamentals Trophy/ Class A Assets Notes: States MUST is in are highlighted in green Class A cap rates highlighted in blue C: CBD cap rates
Slide 17: Poised for Growth
Peachtree, Atlanta, Georgia Poised for Growth Macro Environment Micro Environment 1 Despite challenging global economic 1 Continue to drive leasing and asset backdrop, U.S. economy remains bright management spot 2 Refinance Figueroa loan; target to 2 Rate Hikes – Fed remains patient unencumber 3 Pro
Slide 18: For enquiries, please contact: Ms Caroline Fong, Head of Investor Relations
For enquiries, please contact: Ms Caroline Fong, Head of Investor Relations Direct: (65) 6801 1066 / Email: carol_fong@manulifeusreit.sg http://www.manulifeusreit.sg
Slide 19: FY 2018 Adjusted DPU Increased 3.6% YoY
Peachtree, Atlanta, Georgia FY 2018 Adjusted DPU1 Increased 3.6% YoY 4Q 2018 4Q 2017 Change FY 2018 FY 2017 Change (US$’000) (US$’000) (%) (US$’000) (US$’000) (%) Gross Revenue 40,501 29,264 38.4 144,554 92,040 57.1 Net Property 25,491 18,418 38.4 90,665 58,351 55.4 Income Net Income 20,509 18,943 8
Slide 20: Tax Advantaged Tax Structure
Peachtree, Atlanta, Georgia Tax Advantaged Tax Structure 1 MUST’s tax advantage For illustrative purposes only • No US corporate taxes (21%) US REIT S-REIT1 Manulife US REIT DPU Yield 3.2%2 7.2% 7.2%3 • No US withholding taxes (30%) U.S. Withholding Taxes (1.0%) - - • No Singapore corporate taxes on
Slide 21: MUST's Tax Structure
MUST’s Tax Structure1 Predominantly Supported by Four Pillars Sponsor Unitholders Parent US REIT Structure Manulife (9.8% limit)4 1 • Tax transparency – Dividends distributed are deductible • Income shielded by interest expense and depreciation 0% Tax US Portfolio Interest Exemption Rule 2 • No 30%2