Mapletree Industrial Trust · SGX:ME8U

Mapletree Industrial Trust — Q2 2024 Earnings Presentation

30 slides from Mapletree Industrial Trust's earnings presentation, Oct 25, 2023

  1. Slide 1: 2Q & 1HFY23/24 Financial Results

    2Q & 1HFY23/24 Financial Results 25 October 2023

  2. Slide 2: Important Notice

    Important Notice This presentation shall be read in conjunction with Mapletree Industrial Trust’s (“MIT”) financial results for Second Quarter Financial Year 2023/2024 in the SGXNET announcement dated 25 October 2023. This presentation is for information only and does not constitute an offer or soli

  3. Slide 3: Contents

    Contents 01 Key Highlights – 1 Jul 2023 to 30 Sep 2023 02 2Q & 1HFY23/24 Financial Performance 03 Portfolio Update 04 Investment Update 05 Outlook and Strategy 3

  4. Slide 4: Key Highlights 1 Jul 2023 to 30 Sep 2023

    KEY HIGHLIGHTS 1 JUL 2023 TO 30 SEP 2023 Hi-Tech Buildings, Mapletree Hi-Tech Park @ Kallang Way

  5. Slide 5: Key Highlights

    Key Highlights  Increase in distribution to Unitholders was offset by an enlarged unit base following an equity fundraising exercise in 1QFY23/24 and distribution reinvestment plan • 2QFY23/24 Distribution to Unitholders: S$94.1 million ( 3.5% y-o-y) • 2QFY23/24 DPU: 3.32 cents ( 1.2% y-o-y)  Resi

  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 3.35 3.39 3.39 3.36 3.33 3.32 3.50 3.30 3.28 110 3.13 3.16 3.10 3.10 2.85 2.87 3.00 100 94.3 92.1 90.3 89.9 90 88.4 89.5 89.088.4 87.2 81.1 82.7 2.50 80 72.9 70.6 70.7 69

  7. Slide 7: 2Q & 1HFY23/24 Financial Performance

    2Q & 1HFY23/24 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) 2QFY23/24 2QFY22/23  / () (S$’000) (S$’000) Gross revenue 174,118 175,512 (0.8%) Property operating expenses (45,558) (45,187) 0.8% Net property income 128,560 130,325 (1.4%) Borrowing costs (26,292) (23,770) 10.6% Trust expenses (16,071) (16,498) (2.6%)

  9. Slide 9: Statement of Profit or Loss (Year-on-Year) 1H

    Statement of Profit or Loss (Year-on-Year) 1HFY23/24 1HFY22/23  / () (S$’000) (S$’000) Gross revenue 344,746 343,317 0.4% Property operating expenses (85,342) (83,089) 2.7% Net property income 259,404 260,228 (0.3%) Borrowing costs (52,718) (43,717) 20.6% Trust expenses (32,426) (33,056) (1.9%) Ga

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

    Statement of Profit or Loss (Qtr-on-Qtr) 2QFY23/24 1QFY23/24  / () (S$’000) (S$’000) Gross revenue 174,118 170,628 2.0% Property operating expenses (45,558) (39,784) 14.5% Net property income 128,560 130,844 (1.7%) Borrowing costs (26,292) (26,426) (0.5%) Trust expenses (16,071) (16,355) (1.7%) Sh

  11. Slide 11: Statement of Financial Position

    Statement of Financial Position 30 Sep 2023 30 Jun 2023  / () Total assets (S$’000) 9,089,997 9,006,112 0.9% Total liabilities (S$’000) 3,442,427 3,454,943 (0.4%) Net assets attributable to Unitholders (S$’000) 5,339,667 5,245,472 1.8% Net asset value per Unit (S$)1 1.88 1.85 1.6% 1 Net tangible a

  12. Slide 12: Strong Balance Sheet

    Strong Balance Sheet 30 Sep 2023 30 Jun 2023 DEBT CURRENCY PROFILE As at 30 September 2023 Total debt S$3,063.3 million S$3,090.2 million 12.6% Weighted average 3.3 years 3.7 years tenor of debt Aggregate leverage 37.9% 38.2% ratio1 18.6% Strong balance sheet to pursue growth opportunities 68.8%  F

  13. Slide 13: Well Diversified Debt Maturity Profile

    Well Diversified Debt Maturity Profile DEBT MATURITY PROFILE As at 30 September 2023 26.8% 19.8% 20.0% 17.8% 820.9 545.8 611.3 7.4% 544.9 3.2% 102.8 3.0% 2.0% 100.0 60.0 125.0 60.1 92.5 ∕∕ ∕∕ FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 FY35/36 FY38/39 MTN Bank Loans Amounts in S$ million Weighte

  14. Slide 14: Risk Management

    Risk Management 30 Sep 2023 30 Jun 2023 Fixed as a % of total debt 79.2% 78.0% Weighted average hedge tenor 3.7 years 4.0 years Weighted average all-in funding 3.2% 3.5% cost for the quarter Interest coverage ratio (“ICR”) 4.6 times 4.9 times for the quarter ICR for the trailing 12 months1 4.6 times

  15. Slide 15: Portfolio Update

    PORTFOLIO UPDATE Data Centres, 13831 Katy Freeway, Houston

  16. Slide 16: 142 Properties Across 6 Property Segments

    142 Properties Across 6 Property Segments S$9.2 billion1 24.9 million2 >2,000 tenants AUM NLA (sq ft) Tenant Base Light Industrial Buildings Data Centres: 56.0% 0.7% North America: 48.5% Stack-up/Ramp-up Buildings Japan: 4.3% 5.5% Singapore: 3.2% Flatted Factories 15.5% Flatted Factories Data Cen

  17. Slide 17: Portfolio Overview

    Portfolio Overview Singapore North American Japan Overall Portfolio Portfolio Portfolio Portfolio Number of properties 85 56 1 142 NLA (million sq ft) 16.5 8.31 0.1 24.91 Occupancy (%) 2QFY23/24 93.4 92.7 100.0 93.22 1QFY23/24 93.7 92.4 N.A. 93.32 SEGMENTAL OCCUPANCY RATES1 2 2 98.7% 98.8% 98.8% 98.

  18. Slide 18: Lease Expiry Profile

    Lease Expiry Profile EXPIRING LEASES BY GROSS RENTAL INCOME1 As at 30 September 2023 WALE based on date of commencement of leases (years)2 North American Portfolio 5.3 Singapore Portfolio 2.8 Osaka Data Centre 19.1 Overall Portfolio1 4.2 31.2% 17.7% 15.5% 14.7% 13.3% 7.6% FY23/24 FY24/25 FY25/26 FY2

  19. Slide 19: Large and Diversified Tenant Base

    Large and Diversified Tenant Base TOP 10 TENANTS BY GROSS RENTAL INCOME1 As at 30 September 2023  Over 2,000 tenants 5.9%  Largest tenant contributes 5.9% of Portfolio’s Gross Rental Income 5.1%  Top 10 tenants forms about 30.5% of Portfolio’s Gross Rental Income Hi-Tech Buildings Data Centres 3.

  20. Slide 20: 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 30 Sep 2023 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

  21. Slide 21: Singapore Portfolio Performance

    Singapore Portfolio Performance Occupancy Gross Rental Rate S$ psf/mth 100% 96.8%96.9% $2.50 96.0% 95.4% 94.4% 93.6%93.7% 93.7%93.4% 92.9%93.4% 92.2% 91.5% 90.5%90.2%90.5%90.7%90.2% 90% $2.18 $2.19 $2.12 $2.13 $2.13 $2.13 $2.13 $2.11 $2.10 $2.10 80% $2.13 $2.15 $2.15 $2.16 $2.11 $2.08 $2.03 $2.05 $2

  22. Slide 22: Rental Revisions (Singapore)

    Rental Revisions (Singapore) GROSS RENTAL RATE (S$ PSF/MTH)1 For Period 2QFY23/24 Before Renewal $4.06 $3.71 After Renewal $3.41 New Leases $3.20 $3.69 Passing Rent $2.57 $2.69 $3.21 $1.88 $1.82 $1.71 $1.81 $1.31 $1.41 $1.55 $1.34 Hi-Tech Buildings Business Park Buildings Flatted Factories Stack-Up/

  23. Slide 23: Healthy Tenant Retention (Singapore)

    Healthy Tenant Retention (Singapore) LONG STAYING TENANTS RETENTION RATE FOR 2QFY23/24 Up to 1 yr 8.0% 100.0% >10 yrs 92.9% >1 to 2 yrs 86.2% 87.8% 34.2% 83.2% 11.7% 63.8% 4 yrs or less More than 35.2% > 2 to 3 yrs 4 yrs 9.1% 64.8% >3 to 4 yrs 6.4% N.A. Data Hi-Tech Business Flatted Stack-up / Light

  24. Slide 24: Building a Climate Resilient Portfolio

    Building a Climate Resilient Portfolio Long-term Targets By FY29/30 Align with Mapletree Group’s commitment to achieve net zero emissions by 2050 Average Building Average Building Total Solar Energy Electricity Intensity1 GHG Emissions Intensity1 Generating Capacity ▼15% ▼17% 10,000 kWp Building Cer

  25. Slide 25: Investment Update

    INVESTMENT UPDATE Data Centres, 44490 Chilum Place, Ashburn

  26. Slide 26: Acquisition of a Data Centre in Osaka, Japan

    Acquisition of a Data Centre in Osaka, Japan  100% Basis: JPY52.0 billion (approximately S$507.9 million1) Purchase Consideration /  98.47% MIT effective interest2: JPY51.2 billion (approximately Effective Consideration S$500.1 million) Valuation3 100% Basis: JPY52.0 billion (approximately S$507.9

  27. Slide 27: Outlook and Strategy

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

  28. Slide 28: Outlook

    Outlook Challenging operating environment in view of global uncertainties  The global recovery would continue to slow down amid widening divergences among regions. Persistence in global inflation could warrant higher-for-longer policy rates, which could in turn trigger a correction in financial mar

  29. Slide 29: 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 79.2% and weighted average hedge teno

  30. Slide 30: 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 — Q2 2024 Earnings Presentation on 6ix