Mapletree Pan Asia Commercial Trust · SGX:N2IU
Mapletree Pan Asia Commercial Trust — 3Q FY24/25 Earnings Presentation
68 slides from Mapletree Pan Asia Commercial Trust's earnings presentation, Feb 7, 2025
Slide 1: Mapletree Pan Asia Commercial Trust Investor Presentation
Mapletree Pan Asia Commercial Trust Investor Presentation 7 February 2025
Slide 2: Important Notice
Important Notice This presentation is for information only and does not have regard to your specific investment objectives, financial situation or your particular needs. This presentation does not constitute an invitation, offer or solicitation of any offer to sell or subscribe for, acquire or purch
Slide 3: Content
Content Overview of Mapletree Pan Asia Page 4 Commercial Trust Financial Highlights Page 8 Portfolio Highlights Page 17 Commitment to Sustainability Page 34 Our Long-Term Focus Page 37 Appendix 1: Portfolio Information Page 42 Appendix 2: Market Information Page 51 3
Slide 4: Overview of MPACT
Overview of MPACT A flagship commercial REIT that provides stability and scale across key gateway markets of Asia S$6.3 billion1 17 10.5 million sq ft S$15.7 billion Market Capitalisation Properties Portfolio Lettable Area Assets Under Management (“AUM”)2 Diversified and high-quality portfolio ancho
Slide 5: Capturing the Opportunities of Asia's Long-Term Growth
Capturing the Opportunities of Asia’s Long-Term Growth 17 quality properties across 5 key gateway markets of Asia Japan - 9 properties Tokyo • Hewlett-Packard Japan Headquarters Building • IXINAL Monzen-nakacho Building China - 2 properties • Omori Prime Building 1 • TS Ikebukuro Building Beijing 5
Slide 6: Investment Mandate and Trust Structure
Investment Mandate and Trust Structure Capitalising on long-term growth opportunities within Asia’s key gateway markets Investment Mandate Trust Structure Income-producing real Sponsor – Public Unitholders estate used primarily for Mapletree Investments Pte Ltd office and/or retail purposes, as well
Slide 7: Strategic Alignment of Shared Interests
Strategic Alignment of Shared Interests Fee structure incentivises creation of long-term sustainable value for Unitholders Management fee structure Aligned and committed alongside Unitholders, pegged to DPU Growth with Sponsor’s strong support Base Fee Supports growth of the REIT and promotes closer
Slide 8: Financial Highlights
Financial Highlights VivoCity, SG
Slide 9: 3Q FY24/25 vs 3Q FY23/24: VivoCity's Strong Performance Anchors Portfolio
3Q FY24/25 vs 3Q FY23/24: VivoCity’s Strong Performance Anchors Portfolio Against Overseas Headwinds Despite Ongoing AEI Lower utility expenses and debt reduction improve operating and finance costs S$’000 unless 3Q FY24/25 3Q FY23/24 Variance otherwise stated Gross Revenue1 223,674 241,586 7.4% G
Slide 10: 3Q FY24/25 vs 3Q FY23/24: Singapore Maintains Steady Contribution
3Q FY24/25 vs 3Q FY23/24: Singapore Maintains Steady Contribution to Gross Revenue and NPI (excluding Mapletree Anson1) Strong Singapore fundamentals moderate volatilities from overseas markets Contribution to Gross Revenue Contribution to NPI (S$ million) (S$ million) 244.6 3.0 226.5 2.9 184.8 22.2
Slide 11: YTD FY24/25 vs YTD FY23/24: VivoCity Drives Singapore's Growth
YTD FY24/25 vs YTD FY23/24: VivoCity Drives Singapore’s Growth Despite AEI Impact 1.3% yoy increase in Singapore’s gross revenue (excluding Mapletree Anson) alongside improved finance costs from strategic debt reduction S$’000 unless YTD YTD Variance otherwise stated FY24/25 FY23/24 Gross Revenue1 6
Slide 12: YTD FY24/25: Singapore Continues to Provide Cushion of Stability
YTD FY24/25: Singapore Continues to Provide Cushion of Stability Higher yoy Contribution to Gross Revenue and NPI by Singapore on a comparable basis S$5.4m1 S$3.2m2 higher revenue from SG assets higher NPI from SG assets on on comparable basis comparable basis By Market By Market 60% 61% 728.0 22% 2
Slide 13: Stable Balance Sheet
Stable Balance Sheet Lower investment properties largely due to Mapletree Anson divestment and interim revaluation of Makuhari properties in 2Q FY24/25 As at As at S$’000 unless otherwise stated 31 December 2024 31 March 2024 Investment Properties 15,423,644 16,248,855 Investment in Joint Venture1 1
Slide 14: Proactive Capital Management Yields Results
Proactive Capital Management Yields Results Reduced weighted average cost of debt while keeping gearing level below 40% As at As at As at 31 December 2024 30 September 2024 31 December 2023 Gross Debt Outstanding1 S$6,106.2 mil S$6,084.3 mil S$6,830.3 mil Aggregate Leverage Ratio2 38.2% 38.4% 40.8%
Slide 15: Holistic Capital Management Approach to Maintain Long-Term Stability
Holistic Capital Management Approach to Maintain Long-Term Stability (as at 31 December 2024) Balancing prudent risk management with financial and operational flexibility Supported by ample ICR well above statutory Proactive debt mix alignment with AUM composition liquidity limit of 1.5x Foreign-den
Slide 16: Mitigating Volatilities through Prudent Hedging Measures
Mitigating Volatilities through Prudent Hedging Measures (as at 31 December 2024) Fixed rate debts kept above 70% to shield against interest rate volatility ~91% of expected distributable income derived from or hedged into SGD to provide income stability ~81% of total debt hedged or fixed ~91% of Ex
Slide 17: Portfolio Highlights
Portfolio Highlights Mapletree Business City, SG
Slide 18: Portfolio Highlights
Portfolio Highlights Portfolio1 Committed Occupancy Total Lettable Area Renewed & Re-let 90.0% 483,435 sq ft 1,087,162 sq ft Retail Office/Business Park Rental Reversion Tenant Retention Rate +4.6% 46.1% VivoCity Festival Walk Tenant Sales Shopper Traffic Tenant Sales Shopper Traffic 2.8% 0.4%
Slide 19: Portfolio Committed Occupancy Remains Resilient
Portfolio Committed Occupancy Remains Resilient Improved performance across all markets except China As at As at As at 31 December 2024 30 September 2024 31 December 2023 (%) (%) (%) MBC, SG 92.5 92.5 97.0 VivoCity, SG 99.9 99.3 99.7 Other SG Properties 99.1 97.9 99.31 Festival Walk, HK 97.1 96.4 10
Slide 20: YTD FY24/25: Positive Portfolio Rental Reversion Underpins Core Stability
YTD FY24/25: Positive Portfolio Rental Reversion Underpins Core Stability VivoCity leads robust rental uplifts across Singapore properties Retention Rate by Lettable Area Number of Leases Rental Lettable Area Renewed/Re-Let Committed Reversion1,2 (%) (sq ft) (%) (’000 sq ft)1 MBC, SG 8 75.9 281.9 2.
Slide 21: Well-Spread Lease Expiry Profile
Well-Spread Lease Expiry Profile (as at 31 December 2024) Proactive lease management that focuses on overall resilience Weighted Average Lease Expiry (“WALE”) by Gross Monthly Income (“GRI”) Portfolio Retail Office/Business Park 2.2 years1 2.1 years 2.3 years Lease Expiry Profile by Percentage of Mo
Slide 22: Performance of Office/Business Park Assets
Performance of Office/Business Park Assets Consistent performance provides a stable anchor amid Active occupancy management while positioning for diverging global currents China’s recovery opportunities Committed Occupancy Total Lettable Area Committed Occupancy Total Lettable Area 92.5% 99.1% Renew
Slide 23: Performance of Retail Assets
Performance of Retail Assets VivoCity – Flagship asset’s strength continues to Festival Walk – Agile leasing strategies and intensified drive core resilience marketing efforts to counter changes in retail landscape Total Lettable Area Total Lettable Area Committed Occupancy Committed Occupancy Renew
Slide 24: VivoCity
VivoCity VivoCity, SG
Slide 25: VivoCity – Building Momentum for Long-term Success
VivoCity – Building Momentum for Long-term Success 3Q FY24/25 tenant sales moderated temporarily yoy due to AEI and tenant enhancement initiatives1 14.4% qoq uptick in tenant sales outpaces market, reflecting strong fundamentals for sustained growth Shopper Traffic (mil) Tenant Sales (S$ mil)2 0.4
Slide 26: VivoCity – Track Record in Proactive Asset Management
VivoCity – Track Record in Proactive Asset Management Continued enhancements at VivoCity to drive performance 2006: VivoCity’s 5th AEI: Existing tenant, Official Opening • Changeover of 91,000 sq adidas, more than Reconfiguration of L1 1st AEI: doubled its footprint New tenant, ft of hypermarket spa
Slide 27: VivoCity – Progress Update on Phased Upgrading at Basement 2
VivoCity – Progress Update on Phased Upgrading at Basement 2 Phase 2 retail area expansion commenced work in December 2024; new-to-mall brands and returning tenants to further enhance offerings Major AEI implemented in phases, scheduled for completion by end-2025 Phase 1: Increase food kiosks fr
Slide 28: VivoCity's Ongoing Retail Rejuvenation
VivoCity’s Ongoing Retail Rejuvenation Continually elevating shoppers’ experience with refreshed F&B and lifestyle concepts Broadening the mall’s F&B selection Luckin Coffee, L2 – Popular grab-and-go Surrey Hills Grocer, L3 – Pet-friendly Battercatch, L1 – New-to-mall western Chagee, L1 – Well-known
Slide 29: A Spectacular and Sparkling Christmas at VivoCity
A Spectacular and Sparkling Christmas at VivoCity Captivating shoppers with brilliant light-ups, festive decorations and lively fun Hasbro Game Carnival with nine game zones – Christmas playtime at Monopoly-themed festive wonderland – featuring the signature 15-metre tall the outdoor plaza for shopp
Slide 30: Festival Walk
Festival Walk Festival Walk, HK
Slide 31: Festival Walk – Above-Market Improvement in Shopper Traffic and Tenant Sales
Festival Walk – Above-Market Improvement in Shopper Traffic and Tenant Sales 3Q FY24/25 shopper traffic up 15.6% and tenant sales up 13.1% qoq Intensified marketing efforts countered market-wide impact of currency-driven outbound travel and cross- border consumption trend by Hong Kong residents Shop
Slide 32: Festival Walk – Reenergizing the Mall with Unique Events
Festival Walk – Reenergizing the Mall with Unique Events Driving footfall and shopper engagement through celebrity appearances, high impact partnerships and immersive themed experiences Exclusive pop-up stores make their Hong Kong debut at Festival Walk 24/7 Fitness, LG2 – 24-hour fitness centre pro
Slide 33: Festival Walk x Sanrio – A Magical Winter Extravaganza
Festival Walk x Sanrio – A Magical Winter Extravaganza Enchanting holiday displays and fun-filled activities delighting shoppers across all ages Hangyodon Hong Kong Winter Fun Fest 2024: Creating memorable festive experiences for everyone Five--metre tall Hangyodon Snow Mountain Official Pop-up Stor
Slide 34: Commitment to Sustainability
Commitment to Sustainability Mapletree Business City, SG
Slide 35: Reaffirming Our Commitment to Sustainability
Reaffirming Our Commitment to Sustainability 12 material factors mapped to United Nations Sustainable Development Goals (“SDGs”) Underpinned by four ESG pillars Enhancing Social Value Building a Safeguarding Against the Upholding High Ethical in Our Workplace Resilient Business Impact of Climate Cha
Slide 36: Net Zero by 2050: Building a Climate-Resilient Portfolio
Net Zero by 2050: Building a Climate-Resilient Portfolio Methodical approach to decarbonisation from baseline assessment, target setting, pathway identification to strategic implementation Roadmap to Building a Climate-Resilient Portfolio Refine Sustainability Formulate Decarbonisation Compensate &
Slide 37: Our Long-Term Focus
Our Long-Term Focus Mapletree Business City, SG
Slide 38: Outlook
Outlook Conclusion The broad market continues to present challenges, shaped by ongoing geopolitical dynamics and evolving economic and monetary policies. While the Fed has begun its rate-cutting cycle, the trajectory is expected to be more measured than initially expected, reflecting a more carefu
Slide 39: Maintaining Singapore's Continued Significance in a Diversified Portfolio
Maintaining Singapore’s Continued Significance in a Diversified Portfolio, Repositioning for Future Opportunities Singapore accounts for more than 50% of portfolio and remains a cornerstone of stability amid diverging market currents Diverging currents shaping our business environment Persistent % F
Slide 40: Steadfast Today, Brighter Tomorrow
Steadfast Today, Brighter Tomorrow Navigating today’s challenges while positioning MPACT for a brighter tomorrow Our Competitive Advantages Our Unwavering Commitment to Unitholders Anchored by high-quality and To drive long-term growth and sustainable returns, making an impact diversified portfolio
Slide 41: Thank You
Thank You Thank You For enquiries, please contact: Teng Li Yeng Cassandra Seet Investor Relations Investor Relations Tel: +65 6377 6111 Tel: +65 6807 4064 Email: teng.liyeng@mapletree.com.sg Email: cassandra.seet@mapletree.com.sg 41
Slide 42: Appendix 1: Portfolio Information
Appendix 1: Portfolio Information The Pinnacle Gangnam, South Korea
Slide 43: Overall Top 10 Tenants
Overall Top 10 Tenants (as at 30 September 2024) Top ten tenants contributed 21.7%1 of gross rental income % of Gross Rental Income Tenant Property(ies) (as at 30 September 2024) 1 Google Asia Pacific Pte. Ltd. MBC 5.8% 2 BMW Gateway Plaza 3.6% 3 The Hongkong and Shanghai Banking Corporation Limited
Slide 44: Portfolio Tenant Trade Mix
Portfolio Tenant Trade Mix (as at 30 September 2024) Trade Mix % of Gross Rental Income 1 F&B 14.7% 2 IT Services & Consultancy 14.5% 3 Fashion 7.9% 4 Banking & Financial Services 6.8% 5 Departmental Store / Supermarket / Hypermarket 5.1% 6 Beauty & Health 4.5% 7 Machinery / Equipment / Manufacturin
Slide 45: MPACT's Property Valuation
MPACT’s Property Valuation Singapore constitutes majority of portfolio Valuation Latest Valuation1 Latest Valuation1 Capitalisation Rate2 per sq ft Lettable Area (Local currency mil) (S$ mil) (%) (Local currency/S$) Singapore Properties - VivoCity S$3,358.0 3,358.0 S$3,145 4.50 - MBC I S$2,287.0 2,2
Slide 46: Assets in Singapore
Assets in Singapore VivoCity MBC I MBC II Part 20, 40, 50, 60, 70, 80 Address 1 HarbourFront Walk 10, 20, 30 Pasir Panjang Road Pasir Panjang Road Asset Type Retail Office and Business Park Business Park and Retail Year of Acquisition N.A.1 2016 2019 Leasehold 99 years Strata Lease from 25 August 20
Slide 47: Assets in Singapore
Assets in Singapore mTower BOAHF Address 460 Alexandra Road 2 HarbourFront Place Asset Type Office and Retail Office Year of Acquisition 2011 (IPO) 2011 (IPO) Leasehold 99 years Leasehold 99 years Title from 1 October 1997 from 1 October 1997 Carpark Lots 749 94 Lettable Area (sq ft)1 524,874 215,96
Slide 48: Assets in Hong Kong, China and Seoul
Assets in Hong Kong, China and Seoul Festival Walk, Gateway Plaza, Sandhill Plaza, The Pinnacle Gangnam, Hong Kong Beijing, China Shanghai, China Seoul, South Korea No.18 Xiaguangli, East 3rd Blocks 1 to 5 and 7 to 9, No.80 Tat Chee Avenue, 343, Hakdong-ro, Gangnam- Address Ring Road North, Chaoyang
Slide 49: Assets in Greater Tokyo
Assets in Greater Tokyo Hewlett-Packard Japan IXINAL Monzen-nakacho Omori Prime Building, TS Ikebukuro Building, Headquarters Building, Building, Tokyo, Japan Tokyo, Japan Tokyo, Japan Tokyo, Japan 2-1, Ojima 2-chome 5-4, Fukuzumi 21-12, Minami-oi 6-chome, 63-4, Higashi-Ikebukuro Address Koto-ku 2-c
Slide 50: Assets in Greater Tokyo
Assets in Greater Tokyo ABAS Shin- Higashi-nihonbashi mBAY POINT Fujitsu Makuhari Makuhari Bay Yokohama 1-chome Building, Makuhari, Chiba, Building, Chiba, Tower1, Chiba, Building, Tokyo, Japan Japan Japan Japan Yokohama, Japan 4-6, Higashi- 9-3, Nakase 1- 6-1, Shin-Yokohama 6, Nakase 1-chome, 8, Na
Slide 51: Appendix 2: Market Information
Appendix 2: Market Information Festival Walk, HK
Slide 52: Singapore Retail – Market Overview
Singapore Retail – Market Overview Retail sales continued to be affected by strong Singapore dollar and outbound travel trends although limited new supply expected to support occupancy and rental levels Key Retail Malls and Submarkets Average Rent Orchard Suburban S$37.70 S$22.13 per sq ft per month
Slide 53: Singapore Retail – Market Overview (cont'd)
Singapore Retail – Market Overview (cont’d) Planned New Supply (2025 – 2027) Area Expected Area Expected Submarket Property Submarket Property (’000 sq ft) Completion (’000 sq ft) Completion Raffles Sentosa Resort & Spa Suburban City Fringe 4.7 1Q 2025 Lentor Modern 60.3 2026 Singapore Keppel South
Slide 54: Singapore Retail Sales Performance
Singapore Retail Sales Performance YOY decline in retail sales for October-November 2024 likely due to increase in outbound travel driven by a stronger Singapore dollar (S$ bil) (Online Sales Proportion) 5.0 100.0% 4.5 4.3 90.0% 4.2 4.0 4.0 3.8 3.8 80.0% 3.7 3.6 3.6 3.7 3.6 3.6 3.6 3.6 3.5 3.5 3.4 3
Slide 55: Singapore Visitor Arrivals
Singapore Visitor Arrivals Visitor arrivals continued yoy growth, but moderated from July-August peaks 25.0 20.0 19.1 18.5 17.4 International Visitor Arrivals (million) International Visitor Arrivals (million) 15.1 15.0 13.6 10.0 6.3 5.0 2.7 0.3 0.0 2017 2018 2019 2020 2021 2022 2023 2024 (11mths) S
Slide 56: Singapore Office – Market Overview
Singapore Office – Market Overview Office leasing activities largely driven by flight-to-quality relocations New incoming supply and economic headwinds could moderate occupancy and rental levels Key Office Districts Average Rent Occupancy Islandwide Islandwide S$6.62 89.0% per sq ft per month 0.2
Slide 57: Singapore Office – Market Overview (cont'd)
Singapore Office – Market Overview (cont’d) Planned New Supply (2025 – 2027) Submarket Property Area (’000 sq ft) Expected Completion Suburban Punggol Digital District (Office development at Punggol Way) 267.1 1Q 2025 Keppel South Central (Keppel Towers and Keppel Towers 2 Core CBD 613.5 1Q 2025 Red
Slide 58: Singapore Business Parks – Market Overview
Singapore Business Parks – Market Overview Singapore’s business park sector maintains robust long-term prospects underpinned by the government’s continued commitment in fostering high-value industries and knowledge-based sectors Existing and Planned Business Park Clusters Planned New Supply (2025 –
Slide 59: Hong Kong Retail – Market Overview
Hong Kong Retail – Market Overview Near-term pressures persist from outbound travel trend by Hong Kong residents Key Retail Areas Average Rent Occupancy Kowloon East Kowloon East HKD246 85.4% per sq ft per month 0.3 pp Festival Walk unchanged from 2022 from last quarter Hong Kong’s GDP growth
Slide 60: Hong Kong Retail – Market Overview (cont'd)
Hong Kong Retail – Market Overview (cont’d) Planned New Supply (2025 – 2027) Submarket Property Area (’000 sq ft) Expected Completion Kowloon East The Twins (Phase 2) 450.0 2025 Kowloon East Kai Tak Sports Centre 639.6 2025 Others 11 Skies 3,230.0 2025 Kowloon East NKIL 6568 240.0 2025 Others Shap S
Slide 61: Hong Kong Retail Sales Performance
Hong Kong Retail Sales Performance Monthly retail sales declined yoy for October and November 2024 amid holiday outbound travel, while share of online retail sales rose due to seasonal promotions (HKD bil) (Online Sales Proportion) 40.0 100.0% 36.3 36.2 36.5 33.8 34.5 34.7 34.2 33.8 90.0% 35.0 33.3
Slide 62: Hong Kong Visitor Arrivals
Hong Kong Visitor Arrivals Tourist arrivals improved 2.9% qoq in 4Q 2024 but remained below pre-2018 social incidents and pre-COVID-19 levels, while festive outbound travelling surged 70,000 60,000 14,109 Total Visitor Arrivals (’000) 14,027 50,000 12,138 40,000 10,448 30,000 7,241 51,038 44,445 43,
Slide 63: Beijing Office Market – Market Overview
Beijing Office Market – Market Overview Some moderation in new supply expected but demand remains uncertain, leading to continued pressure on occupancy and rents Key Office Districts Average Rent Occupancy Lufthansa (Grade A) Lufthansa (Grade A) RMB239 77.0% per sq m per month 1.6 pp 2.7% qoq fr
Slide 64: Beijing Office Market – Market Overview (cont'd)
Beijing Office Market – Market Overview (cont’d) Planned New Supply (2025 – 2027) Submarket Property Area (’000 sq m) Expected Completion The office building section of China National Convention Center Office AGV & Olympic Park 31.1 1Q 2025 Phase II CBD Project by DRC 80.0 4Q 2025 Financial Street Z
Slide 65: Shanghai Business Parks – Market Overview
Shanghai Business Parks – Market Overview Continued occupancy and rental pressure across all submarkets in 4Q 2024 Sustained growth in high-tech sector and economic recovery could catalyse a rebound in leasing demand Core and Emerging Business Parks Average Rent Occupancy Zhangjiang Zhangjiang RMB4.
Slide 66: Shanghai Business Parks – Market Overview (cont'd)
Shanghai Business Parks – Market Overview (cont’d) Planned New Supply (2025 – 2027) Area Expected Area Expected Area Expected Submarket Property Submarket Property Submarket Property (‘000 sq m) Completion (‘000 sq m) Completion (‘000 sq m) Completion Caohejing Galaxy Midtown Phase I 24.7 1Q 2025 Sh
Slide 67: Greater Tokyo Office – Market Overview
Greater Tokyo Office – Market Overview Limited availability of large-scale office in central Tokyo expected to redirect demand to peripheral locations but Chiba may require longer time to achieve balance in demand and supply Map of Office Markets Planned New Supply (2025 – 2027)1 Expected Submarket
Slide 68: Seoul Office – Market Overview
Seoul Office – Market Overview Market remained resilient in 4Q 2024. Incoming CBD-concentrated supply to phase in from 2025 onwards and could lead to adjustments in market conditions Planned New Supply (2025 – 2027) Map of Major Office Submarkets Area Expected Submarket Property (million pyeong) Com
Mapletree Pan Asia Commercial Trust — 3Q FY24/25 Earnings Presentation on 6ix