Mapletree Industrial Trust · SGX:ME8U

Mapletree Industrial Trust — FY2013/14 Earnings Presentation

33 slides from Mapletree Industrial Trust's earnings presentation, Apr 22, 2014

  1. Slide 1: 4Q & Full Year FY13/14 Financial Results

    4Q & Full Year FY13/14 Financial Results 22 April 2014

  2. Slide 2: Disclaimer

    DISCLAIMER This presentation shall be read in conjunction with Mapletree Industrial Trust’s (“MIT”) financial results for Fourth Quarter and Full Financial Year 2013/2014 in the SGXNET announcement dated 22 April 2014. This presentation is for information only and does not constitute an offer or sol

  3. Slide 3: Agenda

    AGENDA 1 Key Highlights 2 4QFY13/14 & FY13/14 Financial Performance 3 Portfolio Update 4 Asset Enhancement and Development Updates 5 Outlook and Strategy

  4. Slide 4: Key Highlights

    KEY HIGHLIGHTS  Strong financial results for FY13/14 attributable to improved occupancies in Flatted Factories and higher portfolio rental income  FY13/14 Distributable Income : S$166.1 million ( 10.0% y-o-y)  FY13/14 DPU : 9.92 cents ( 7.4% y-o-y)  4QFY13/14 distributable income and DPU were S$

  5. Slide 5: Scorecard Since IPO

    SCORECARD SINCE IPO 60 3.00 2.47 2.51 2.51 2.43 50 2.37 2.50 2.29 2.32 2.22 2.26 2.16 42.2 42.6 2.05 41.1 Distributable Income (S$ million) 1.98 40.2 1.93 38.9 40 37.5 37.7 2.00 36.9 35.2 35.8 DPU (cents) 1.52 31.6 30 28.3 29.0 1.50 22.3 20 1.00 10 0.50 0 0.00 3Q* 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

  6. Slide 6: 4QFY13/14 & FY13/14 Financial Performance

    4QFY13/14 & FY13/14 Financial Performance

  7. Slide 7: Statement of Total Returns (Year-on-Year)

    STATEMENT OF TOTAL RETURNS (YEAR-ON-YEAR) 4QFY13/14 4QFY12/13  / () (S$’000) (S$’000) Gross revenue 75,169 72,121 4.2% Property operating expenses (21,874) (22,543) (3.0%) Net property income 53,295 49,578 7.5% Interest on borrowings (5,828) (6,586) (11.5%) Trust expenses (6,341) (5,796) 9.4% Net

  8. Slide 8: Statement of Total Returns (Year-on-Year)

    STATEMENT OF TOTAL RETURNS (YEAR-ON-YEAR) FY13/14 FY12/13  / () (S$’000) (S$’000) Gross revenue 299,276 276,433 8.3% Property operating expenses (84,537) (80,997) 4.4% Net property income 214,739 195,436 9.9% Interest on borrowings (25,908) (27,129) (4.5%) Trust expenses (25,207) (22,747) 10.8% Ne

  9. Slide 9: Statement of Total Returns (Qtr-on-Qtr)

    STATEMENT OF TOTAL RETURNS (QTR-ON-QTR) 4QFY13/14 3QFY13/14  / () (S$’000) (S$’000) Gross revenue 75,169 75,635 (0.6%) Property operating expenses (21,874) (20,653) 5.9% Net property income 53,295 54,982 (3.1%) Interest on borrowings (5,828) (6,695) (12.9%) Trust expenses (6,341) (6,335) 0.1% Net

  10. Slide 10: Healthy Balance Sheet

    HEALTHY BALANCE SHEET 31 Mar 2014 31 Dec 2013  / () Total Assets (S$’000) 3,275,053 3,110,701 5.3% Total Liabilities (S$’000) 1,246,396 1,250,446 (0.3%) Net Assets Attributable to 2,028,657 1,860,255 9.1% Unitholders (S$’000) Net Asset Value per Unit (S$) 1.20 1.11 8.1% 9

  11. Slide 11: Portfolio Valuation

    PORTFOLIO VALUATION Property Segment Valuation as at 31 Valuation as at 31 Capitalisation (includes property under Mar 2014 (S$ m) Mar 2013 (S$ m) rate development) Flatted Factories 1,534.7 1,467.6 6.50% to 7.25% Hi-Tech Buildings 599.2 425.7 6.50% to 7.00% Business Park Buildings 533.4 515.6 6.25%

  12. Slide 12: Strong Balance Sheet

    STRONG BALANCE SHEET As at 31 Mar As at 31 Dec Strong balance sheet to pursue 2014 2013 growth opportunities Total Debt S$1,129.7 million S$1,130.3 million Aggregate  Proceeds of S$17.8 million from Leverage Ratio 34.4% 36.3% DRP in 3QFY13/14 to fund development costs for AEIs and Fixed as a % of 7

  13. Slide 13: Debt Maturity Profile

    DEBT MATURITY PROFILE 400 As at 31 Mar 2014 350 Total Debt S$1,129.7 million Fixed as a % of Total Debt 73% 300 Weighted Average Tenor of Debt 2.6 years Gross Debt (S$ million) 250 200 344 150 60 239 100 145 126 125 50 46 45 31% 11% 21% 13% 16% 4% 0% 4% 0 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21

  14. Slide 14: Proforma Debt Maturity Profile

    PROFORMA DEBT MATURITY PROFILE 400 Weighted Average Tenor of Debt Drawdown from new (proforma as at 31 March 2014) 350 committed facility  increase from 2.6 to 3.7 years 300 150 Gross Debt (S$ million) 250 Loan extended with effect from April 2014 200 150 93 60 239 150 100 145 126 125 50 101 93 46

  15. Slide 15: Distribution Details

    DISTRIBUTION DETAILS Distribution Period Distribution per Unit (cents) 1 January 2014 to 31 March 2014 2.51 Distribution Timetable Dates Last day of trading on “cum” basis 25 April 2014 (Friday), 5:00pm Ex-date 28 April 2014 (Monday), 9:00am Book closure date 30 April 2014 (Wednesday), 5:00pm Cash d

  16. Slide 16: Portfolio Update

    Portfolio Update

  17. Slide 17: 84 Properties Across 5 Property Types

    84 PROPERTIES ACROSS 5 PROPERTY TYPES Light Industrial Buildings  One of the largest industrial landlords in Singapore 2.5%  Total property assets of approx. S$3.2 billion Stack-up/Ramp- up Buildings Flatted Factories  Total GFA of approx. 19.7 million sq ft 13.4% 48.4%  Total NLA of approx. 14.

  18. Slide 18: Resilient Portfolio Performance

    RESILIENT PORTFOLIO PERFORMANCE Gross Rental Rate Occupancy S$ psf/mth 100% 94.5% 95.1% 95.0% 94.9% 95.0% 95.2% 95.4% 95.5% 93.9% 92.3% 93.2% 94.3% 92.5% 91.3% 91.0% 91.0% 90.7% 90.3% 90.3% 91.2% 89.0% 89.0% 89.7% $2.00 90% $1.75 $1.71 $1.70 $1.73 80% $1.68 $1.59 $1.61 $1.56 $1.52 $1.54 $1.53 $1.55

  19. Slide 19: Segmental Occupancy Levels

    SEGMENTAL OCCUPANCY LEVELS 98.2% 96.8% 94.6% 95.1% 96.9% 93.6% 92.5% 91.3%* 82.6% 79.6% 79.4% 74.9%* Flatted Factories Hi-Tech Buildings Business Park Stack-Up/Ramp-Up Light Industrial MIT Buildings Buildings Buildings Portfolio Left Bar Right Bar (3QFY13/14) (4QFY13/14) * The drop in occupancy rate

  20. Slide 20: Positive Rental Revisions

    POSITIVE RENTAL REVISIONS Gross Rental Rate S$ psf/mth $4.50 Before Renewal $3.94 After Renewal $4.00 $3.60 $3.70 New Leases $3.50 $3.58 Passing Rent $3.00 $2.70 $2.50 $2.18 $2.00 $1.79 $1.80 $1.70 $1.54 $1.97 $1.66 $1.47 $1.50 $1.19 $1.00 $0.83 $1.01 $0.50 $- Flatted Factories Hi-Tech Buildings Bus

  21. Slide 21: Healthy Tenant Retention

    HEALTHY TENANT RETENTION Long Staying Tenants Retention Rate for 4QFY13/14 >10 yrs Average Retention Rate 12.2% Up to 1 yr 14.3% 100% 93.4% 94.3% 81.8% 80% 76.4% 70.0% >1 to 2 yrs 10.2% 60% 49.5% >5 to 10 yrs 40% 28.8% > 2 to 3 yrs 13.8% 20% N.A. 0% >3 to 4 yrs Flatted Hi-Tech Business Stack-Up / Li

  22. Slide 22: Lease Expiry Profile

    LEASE EXPIRY PROFILE 22.5% of Leases Remain Due for Renewal in FY14/15 30% 25% 24.4% 22.5% by Gross Rental Income 20.4% % Expiring Leases 20% 16.7% 16.0% 15% 10% 5% 0% FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 & Beyond Flatted Factories Hi-Tech Buildings Business Park Stack-up / Ramp-up Light Industri

  23. Slide 23: Large and Diverse Tenant Base

    LARGE AND DIVERSE TENANT BASE Percentage of Gross Rental Income 4% 3.4% • Over 2,000 tenants • Largest tenant contributes <4% of Portfolio’s Gross Rental Income 3% • Top 10 Tenants forms only 16.1% of Portfolio’s Gross Rental Income 2.4% 1.9% 2% 1.8% 1.5% 1.4% 1.2% 1% 0.9% 0.9% 0.7% 0% By Gross Rent

  24. Slide 24: Diversity of Tenant Trade Sector

    DIVERSITY OF TENANT TRADE SECTOR By Revenue As at 31 Mar 2014 23

  25. Slide 25: Asset Enhancement and Development Updates

    Asset Enhancement and Development Updates

  26. Slide 26: Build-to-Suit – Equinix

    BUILD-TO-SUIT – EQUINIX  New 7-storey data centre for Equinix (100% of space committed)  20-year lease with the option to renew for another two additional 5 year terms, or any other duration depending on the remaining land lease  Land lease of 30 years  Embedded annual rental escalation 2nd stor

  27. Slide 27: AEI – Toa Payoh North 1

    AEI – TOA PAYOH NORTH 1  Development of new 8-storey Hi-Tech Building and 5-storey amenity block with canteen, multi-storey car park and showrooms  Completed improvement works to the common areas of the existing buildings and landscaped areas  Central location with convenient access to Block 988

  28. Slide 28: Redevelopment of Telok Blangah Cluster

    REDEVELOPMENT OF TELOK BLANGAH CLUSTER Before After Redevelopment Property Two 7-storey Flatted Factories and Two Hi-Tech Buildings a canteen GFA 437,300 sq ft 824,500 sq ft Plot ratio 1.3 2.5 Land Area 329,800 sq ft Land Tenure 60 years (from 1 July 2008)  Secured largest BTS project at S$250 mill

  29. Slide 29: Acquisition of 2A Changi North Street 2

    ACQUISITION OF 2A CHANGI NORTH STREET 2 Location 2A Changi North Street 2 GFA About 67,800 sq ft Land Use Zone Business 2 30 years + 30 years Land Tenure (from 16 Aug 2001) Purchase Price S$14.1 million¹ Tenant Stamping Industries Pte Ltd Lease Term 5 years + 3 years Light Industrial Building, 2A Ch

  30. Slide 30: Outlook and Strategy

    Outlook and Strategy

  31. Slide 31: Market Outlook

    MARKET OUTLOOK  The economy expanded by 5.1% on a year-on-year basis for the quarter ended 31 March 2014, as compared to the 5.5% expansion in the preceding quarter1  Average rents for industrial real estate for 4QFY13/142 :  Business Park Space : S$4.23 psf/mth (-5.8% q-o-q)  Multi-user Factory

  32. Slide 32: Positioned for Growth

    POSITIONED FOR GROWTH  Large tenant base and well-diversified portfolio underpins resilient portfolio STABLE AND performance RESILIENT PORTFOLIO  Achieved positive rental revisions across all segments  Hedged borrowings minimise exposure to ENHANCED FINANCIAL interest rate fluctuations FLEXIBILIT

  33. Slide 33: Thank You

    Thank You

Mapletree Industrial Trust — FY2013/14 Earnings Presentation on 6ix