Mapletree Industrial Trust · SGX:ME8U

Mapletree Industrial Trust — Q4 2024 Earnings Presentation

33 slides from Mapletree Industrial Trust's earnings presentation, Apr 25, 2024

  1. Slide 1: 4Q & FY23/24 Financial Results

    4Q & FY23/24 Financial Results 25 April 2024

  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 2023/2024 in the SGXNET announcement dated 25 April 2024. This presentation is for information only and does not constitute an offer or solici

  3. Slide 3: Contents

    Contents 01 Key Highlights – 1 Apr 2023 to 31 Mar 2024 02 4Q & FY23/24 Financial Performance 03 Portfolio Update 04 Investment Update 05 Outlook and Strategy 3

  4. Slide 4: Key Highlights 1 Apr 2023 to 31 Mar 2024

    KEY HIGHLIGHTS 1 APR 2023 TO 31 MAR 2024 Data Centres, 13831 Katy Freeway, Houston

  5. Slide 5: Key Highlights

    Key Highlights  Performance primarily driven by revenue contributions from Mapletree Hi-Tech Park @ Kallang Way and Osaka Data Centre as well as higher distribution declared by joint venture • FY23/24 Net Property Income: S$521.0 million ( 0.6% y-o-y) • FY23/24 Distribution to Unitholders: S$378.3

  6. Slide 6: Sustainable and Growing Returns

    Sustainable and Growing Returns Amount Available for DPU Distribution to Unitholders (cents) (S$ million) 3.47 3.49 3.49 3.49 120 3.39 3.39 3.35 3.36 3.33 3.36 3.36 3.50 3.30 3.32 3.28 3.13 3.16 110 3.10 3.10 2.852.87 3.00 100 95.6 92.1 94.395.3 90.3 89.9 90 88.489.5 89.0 88.4 87.2 81.1 82.7 2.50 80

  7. Slide 7: 4Q & FY23/24 Financial Performance

    4Q & FY23/24 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) 4QFY23/24 4QFY22/23  / () (S$’000) (S$’000) Gross revenue 178,700 171,099 4.4% Property operating expenses (46,916) (42,183) 11.2% Net property income 131,784 128,916 2.2% Borrowing costs (27,740) (27,822) (0.3%) Trust expenses (13,231) (16,916) (21.8%) G

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

    Statement of Profit or Loss (Year-on-Year) FY23/24 FY22/23  / () (S$’000) (S$’000) Gross revenue 697,332 684,865 1.8% Property operating expenses (176,289) (166,914) 5.6% Net property income 521,043 517,951 0.6% Borrowing costs (106,609) (97,599) 9.2% Trust expenses (61,746) (66,331) (6.9%) Gain o

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

    Statement of Profit or Loss (Qtr-on-Qtr) 4QFY23/24 3QFY23/24  / () (S$’000) (S$’000) Gross revenue 178,700 173,886 2.8% Property operating expenses (46,916) (44,031) 6.6% Net property income 131,784 129,855 1.5% Borrowing costs (27,740) (26,151) 6.1% Trust expenses (13,231) (16,089) (17.8%) Gain o

  11. Slide 11: Statement of Financial Position

    Statement of Financial Position 31 Mar 2024 31 Dec 2023  / () 31 Mar 2023  / () Total assets (S$’000) 8,664,366 9,044,890 (4.2%) 8,546,802 1.4% Total liabilities (S$’000) 3,375,634 3,503,089 (3.6%) 3,170,867 6.5% Net assets attributable to 4,984,582 5,236,232 (4.8%) 5,074,133 (1.8%) Unitholders

  12. Slide 12: Portfolio Valuation

    Portfolio Valuation Valuation as at 31 Mar 2024 Valuation as at Property segment 31 Mar 2023 Capitalisation rates Local currency (million) S$ million1 (S$ million)2 Data Centres (Singapore) S$278.7 278.7 283.7 4.00% to 6.25%3 Hi-Tech Buildings S$1,514.1 1,514.1 1,510.3 5.25% to 7.00% Business Park B

  13. Slide 13: Strong Balance Sheet

    Strong Balance Sheet 31 Mar 2024 31 Dec 2023 DEBT CURRENCY PROFILE As at 31 March 2024 Total debt S$2,984.4 million S$3,124.0 million 13.2% Weighted average 3.8 years 3.4 years tenor of debt Aggregate leverage 38.7% 38.6% ratio1 21.1% Strong balance sheet to pursue growth opportunities 65.7%  ‘BBB+

  14. Slide 14: Well Diversified Debt Maturity Profile

    Well Diversified Debt Maturity Profile DEBT MATURITY PROFILE As at 31 March 2024 26.9% 21.7% 19.9% 15.8% 802.7 532.8 596.7 346.9 8.2% 2.5% 3.0% 246.6 2.0% 75.0 60.0 125.0 58.6 90.1 50.0 ∕∕ ∕∕ ∕∕ FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 FY30/31 FY35/36 FY38/39 MTN Bank Loans Amounts in S$ million Weig

  15. Slide 15: Risk Management

    Risk Management 31 Mar 2024 31 Dec 2023 Fixed as a % of total debt 84.6% 79.5% Weighted average hedge tenor 3.7 years 3.6 years Weighted average all-in funding 3.1% 3.1% cost for the quarter Interest coverage ratio (“ICR”) 4.5 times 4.7 times for the quarter ICR for the trailing 12 months1 4.6 times

  16. Slide 16: Portfolio Update

    PORTFOLIO UPDATE Hi-Tech Buildings, Mapletree Hi-Tech Park @ Kallang Way

  17. Slide 17: 140 Properties Across 6 Property Segments

    140 Properties Across 6 Property Segments S$8.9 billion1 24.8 million2 >2,000 tenants AUM NLA (sq ft) Tenant Base Light Industrial Buildings Data Centres: 54.8% 0.7% North America: 46.6% Japan: 4.9% Stack-up/Ramp-up Buildings 5.8% Singapore: 3.3% Flatted Factories 15.6% Flatted Factories Data Cen

  18. Slide 18: Portfolio Overview

    Portfolio Overview Singapore North American Osaka Overall Portfolio Portfolio Data Centre Portfolio Number of properties 83 56 1 140 NLA (million sq ft) 16.4 8.31 0.1 24.81 Occupancy (%) 4QFY23/24 93.6 86.2 100.0 91.42 3QFY23/24 93.8 89.9 100.0 92.62 SEGMENTAL OCCUPANCY RATES1 2 2 98.6% 98.5% 97.8%

  19. Slide 19: Lease Expiry Profile

    Lease Expiry Profile EXPIRING LEASES BY GROSS RENTAL INCOME1 As at 31 March 2024 WALE based on date of commencement of leases (years) 2 North American Portfolio 5.5 Singapore Portfolio 3.0 Osaka Data Centre 18.6 Overall Portfolio1 4.4 28.7% 17.7% 17.5% 15.1% 14.9% 6.1% FY24/25 FY25/26 FY26/27 FY27/2

  20. Slide 20: Large and Diversified Tenant Base

    Large and Diversified Tenant Base TOP 10 TENANTS BY GROSS RENTAL INCOME1 As at 31 March 2024 6.0%  Over 2,000 tenants  Largest tenant contributes 6.0% of Portfolio’s Gross Rental Income  Top 10 tenants forms about 29.1% of Portfolio’s Gross Rental Income Hi-Tech Buildings Data Centres 3.6% 3.1% 2

  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 of 31 Mar 2024 1 Based on MIT’s 50% interest of the joint venture with MIPL in three fitted data centres and 10 powered shell data centres in North America

  22. Slide 22: Singapore Portfolio Performance

    Singapore Portfolio Performance Occupancy Gross Rental Rate S$ psf/mth 100% $2.50 96.8%96.9% 96.0% 95.4% 93.6% 94.4% 93.8% 93.4% 93.7% 93.7% 93.4% 93.6% 92.9% 90.7% 91.5%92.2% 90.5% 90.2%90.5% 90.2% 90% $2.22 $2.19 $2.13 $2.13 $2.18 $2.12 $2.13 $2.13 $2.11 $2.21 $2.10 $2.10 $2.16 80% $2.13 $2.15 $2.

  23. Slide 23: Rental Revisions (Singapore)

    Rental Revisions (Singapore) GROSS RENTAL RATE (S$ PSF/MTH)1 For Period 4QFY23/24 Before Renewal $4.31 After Renewal $4.14 $3.98 New Leases $3.59 $3.68 Passing Rent $3.33 $3.66 $3.23 $1.84 $1.91 $1.68 $1.43 $1.84 $1.30 $1.40 $1.37 Hi-Tech Buildings Business Park Buildings Flatted Factories Stack-Up/

  24. Slide 24: Healthy Tenant Retention (Singapore)

    Healthy Tenant Retention (Singapore) LONG STAYING TENANTS RETENTION RATE FOR 4QFY23/24 Up to 1 yr 9.6% >10 yrs 34.4% >1 to 2 yrs 82.8% 82.9% 85.3% 80.1% 10.6% 67.0% 4 yrs or less More than 35.7% > 2 to 3 yrs 4 yrs 9.4% 64.3% >3 to 4 yrs 6.1% N.A. N.A. Data Hi-Tech Business Flatted Stack-up / Light S

  25. Slide 25: ESG Commitments and Achievements

    ESG Commitments and Achievements ENVIRONMENT SOCIAL GOVERNANCE Support the transition to a Safeguard the health and safety of Maintain high ethical low carbon economy stakeholders, focus on diversity and standards inclusion and support the communities in which MIT operates in Re-certified BCA Green

  26. Slide 26: Investment Update

    INVESTMENT UPDATE Data Centres, 44490 Chilum Place, Ashburn

  27. Slide 27: Completed Phase 2 of Fit Out Works for Osaka Data Centre

    Completed Phase 2 of Fit Out Works for Osaka Data Centre Completed Phase 2 of fit out works for Osaka Data Centre on 9 Feb 2024 Description for JPY5.2 billion1 IT Capacity High-quality, multi-storey fully- Japan fitted Data Centre in downtown 3rd largest data centre market in APAC5 >10MW Osaka  Net

  28. Slide 28: Divestment – Tanglin Halt Cluster

    Divestment – Tanglin Halt Cluster Rebalancing the Portfolio Through Divestment of Non-core Asset A five-storey Flatted Factory and a Description two-storey Flatted Factory with an amenity centre Tanglin Halt Cluster (115A & 115B Address Commonwealth Drive, Singapore) GFA 254,443 sq ft Sale Price S$5

  29. Slide 29: Outlook and Strategy

    OUTLOOK AND Data Centres, 2601 West Broadway Road, Tempe STRATEGY

  30. Slide 30: Outlook

    Outlook Challenging operating environment in view of global uncertainties  Global growth is projected at 3.2% for 2024 and 2025, the same pace as 20231. Geopolitical tensions, divergence in disinflation among major economies and high interest rates may tilt global growth to the downside  Rising pr

  31. Slide 31: Outlook

    Outlook North America • According to CBRE4, digital transformation will accelerate the need for processing power, storage and cloud services in colocation and hyperscale data centers to provide organisations with more flexibility. However, certain workloads will remain on-premise • Supply of data ce

  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  Hedged borrowings of 84.6% and weighted average hedge teno

  33. Slide 33: End of Presentation

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

Mapletree Industrial Trust — Q4 2024 Earnings Presentation on 6ix