Mapletree Logistics Trust · SGX:M44U

Mapletree Logistics Trust — FY2015/16 Earnings Presentation

42 slides from Mapletree Logistics Trust's earnings presentation, Apr 29, 2016

  1. Slide 1: 4Q & 12M FY2015/16 Financial Results

    4Q & 12M FY2015/16 Financial Results 29 April 2016

  2. Slide 2: Disclaimer

    Disclaimer This presentation shall be read in conjunction with Mapletree Logistics Trust’s financial results for the Fourth Quarter and Financial Year 2015/16 in the SGXNET announcement dated 29 April 2016. This presentation is for information purposes only and does not constitute an invitation or o

  3. Slide 3: Agenda

    Agenda  Key Highlights  Financial Review  Capital Management  Investment Review  Operations Review  Outlook 2

  4. Slide 4: Key Highlights

    Key Highlights

  5. Slide 5: Key Highlights

    Key Highlights  FY15/16 amount distributable to Unitholders of S$183.3m and DPU of 7.38 cents − FY15/16 gross revenue increased 6% y-o-y to S$349.9m and NPI grew 5% to S$290.9m − Performance underpinned by acquisitions and strong results from Hong Kong, but partially offset by weaker performance in

  6. Slide 6: Key Highlights

    Key Highlights  Active asset and lease management, healthy portfolio metrics − Renewed/replaced 631,000 sqm of leases expiring in FY15/16 (91% success rate) at an average positive rental reversion rate of 4% (mainly Hong Kong and Singapore) − Maintained healthy portfolio occupancy of 96.2% − Well-s

  7. Slide 7: Financial Review

    Financial Review

  8. Slide 8: 4Q FY15/16 vs. 4Q FY14/15 (Year-on-Year)

    4Q FY15/16 vs. 4Q FY14/15 (Year-on-Year)  Revenue growth due to: 4Q FY15/161 4Q FY14/152 Y-o-Y − contributions from S$’000 3 mths ended 3 mths ended change acquisitions 31 Mar 2016 31 Mar 2015 − higher revenue from Gross Revenue 88,445 84,684 4.4% existing assets in HK & China Property Expenses (15

  9. Slide 9: 12M FY15/16 vs. 12M FY14/15 (Year-on-Year)

    12M FY15/16 vs. 12M FY14/15 (Year-on-Year)  Revenue growth due to: 12M ended 12M ended Y-o-Y − contributions from S$’000 1 2 31 Mar 2016 31 Mar 2015 change acquisitions − higher revenue from existing Gross Revenue 349,905 330,114 6.0% assets in HK and China − higher translated revenue Property Expe

  10. Slide 10: 4Q FY15/16 vs. 3Q FY15/16 (Quarter-on-Quarter)

    4Q FY15/16 vs. 3Q FY15/16 (Quarter-on-Quarter)  Q-o-Q revenue change 4Q FY15/161 3Q FY15/162 Q-o-Q mainly due to S$’000 3 mths ended 3 mths ended − Lower revenue from change 31 Mar 2016 31 Dec 2015 Singapore, partially Gross Revenue 88,445 88,934 (0.5%) offset by − Higher translated Property Expens

  11. Slide 11: Healthy Balance Sheet

    Healthy Balance Sheet As at As at S$’000 31 Mar 2016 31 Mar 2015 Investment Properties 5,069,545 4,631,216 Total Assets 5,207,362 4,787,701 Total Liabilities 2,328,902 1,899,376 Net Assets Attributable to Unitholders 2,528,421 2,538,273 NAV Per Unit S$1.021 S$1.032 1) Includes net derivative financi

  12. Slide 12: 4Q FY15/16 Distribution

    4Q FY15/16 Distribution Distribution Details SGX Stock Code M44U Distribution Period 1 Jan 2016 – 31 Mar 2016 Distribution Amount 1.80 cents per unit Distribution Timetable Last day of trading on "cum" basis 5 May 2016, 5:00 pm Ex-Date 6 May 2016, 9:00 am Books Closure Date 10 May 2016, 5:00 pm Dist

  13. Slide 13: Capital Management

    Capital Management

  14. Slide 14: Prudent Capital Management

    Prudent Capital Management  Total debt outstanding As at As at increased by S$426m mainly 31 Mar 2016 31 Mar 2015 due to: - Additional loans of ~S$377m Total Debt (S$ million) 2,058 1,632 drawn to finance acquisitions and capital expenditure Aggregate Leverage Ratio 39.6% 34.3% - Higher translated

  15. Slide 15: Debt Maturity Profile (By Currency) as at 31 Mar 2016

    Debt Maturity Profile (By Currency) as at 31 Mar 2016  During 4Q FY15/16, a JPY7.015b (~S$85m) term loan facility due in Apr 2016 was extended for 8 years  Post-year end, debt due in FY16/17 was further reduced to 9% following a 5-year extension of an existing loan facility  Maintained healthy ba

  16. Slide 16: Interest Rate Risk Management

    Interest Rate Risk Management  Approximately 81% of total debt is hedged or drawn in fixed rates  Every potential 25 bps increase in base rates1 may result in a ~S$0.25m decrease in distributable income or 0.01 cents in DPU2 per quarter JPY 13% SGD 5% USD 1% 1) Base rate denotes SOR, USD LIBOR, JP

  17. Slide 17: Forex Risk Management

    Forex Risk Management  About 70% of amount distributable in FY16/17 is hedged into / derived in SGD 16

  18. Slide 18: Investment Review

    Investment Review

  19. Slide 19: Investment Highlights

    Investment Highlights  Completed 3 accretive acquisitions of ~S$295m to scale up presence in growth markets  Active portfolio rejuvenation − Completed redevelopment projects in Singapore and AEI in Japan − Commenced new redevelopment project in Singapore − Divested 2 low yielding assets with older

  20. Slide 20: Acquisitions in FY15/16

    Acquisitions in FY15/16 1 2 Property: Dakonet Logistics Centre Mapletree Logistics Park Bac Ninh Location: Gyeonggi-do, South Korea Bac Ninh, Vietnam 3 blocks of single-storey Grade-A Description: Modern 3-storey Grade-A dry warehouse warehouses with mezzanine offices Acquisition Price: KRW17.5b (~S

  21. Slide 21: Acquisitions in FY15/16

    Acquisitions in FY15/16 3 Property: Coles Chilled Distribution Centre Location: Sydney, New South Wales, Australia Premium freehold cold store Description: warehouse Acquisition A$253.0m (~S$253.1m) Price: GFA: 55,395 sqm Initial NPI 5.6% with built-in annual escalations yield: • 100% leased to a bl

  22. Slide 22: Divestments in FY15/16

    Divestments in FY15/16 Property: 134 Joo Seng Road 20 Tampines Street 92 Sale Consideration: S$13.5m S$20m Exit cap rate: 3% 2% • Poor warehouse specifications, SUA • Poor warehouse specifications, high conversion office component (21% of NLA) Rationale: • Maximised allowable plot ratio, limited • S

  23. Slide 23: Portfolio Rejuvenation: Mapletree Logistics Hub - Toh Guan

    Portfolio Rejuvenation: Mapletree Logistics Hub - Toh Guan Mapletree Logistics Hub - Toh Property: Guan (MLT’s 2nd redevelopment project) Redevelopment into a modern 6- Description: storey ramp-up logistics facility GFA Increase 2.7x to 63,500 sqm Completion Date: 16 March 2016 Estimated Cost S$107

  24. Slide 24: Portfolio Rejuvenation: Moriya Centre AEI

    Portfolio Rejuvenation: Moriya Centre AEI Property: Moriya Centre, Japan Description: Additional 4-storey dry warehouse GFA Increase 1.3x to 43,700 sqm Completion Date: 31 March 2016 Estimated Cost JPY1,409 million 23

  25. Slide 25: Portfolio Rejuvenation: 76 Pioneer Road

    Portfolio Rejuvenation: 76 Pioneer Road 76 Pioneer Road Property: (MLT’s 3rd redevelopment project) Redevelopment into a Description: modern 5-storey ramp-up logistics facility GFA Increase 1.8x to 72,000 sqm Completion 3Q FY17/18 (Targeted) Date: Estimated S$122 m Cost 24

  26. Slide 26: Portfolio Review

    Portfolio Review

  27. Slide 27: Portfolio Highlights

    Portfolio Highlights  Portfolio value increased by S$438m y-o-y to S$5.07b − Approximately S$431m in acquisitions and capital expenditure  Proactive lease management − Actively engaged tenants for forward renewals − Renewed/replaced approximately 631,000 sqm of leases expiring in FY15/16 (91% succ

  28. Slide 28: Geographic Breakdown of Occupancy Levels

    Geographic Breakdown of Occupancy Levels  Overall stable portfolio occupancy - similar or improvement in several countries offset by slight decline in Singapore, Hong Kong and China 1 1) Excludes 76 Pioneer Road (undergoing redevelopment ) and 5B Toh Guan Road East (received TOP in March 2016). 27

  29. Slide 29: Successful Lease Renewals in FY15/16

    Successful Lease Renewals in FY15/16  692,000 sqm of MLT’s leases were due to expire in FY15/16  Approximately 631,000 sqm (or 91%) of these have been renewed/replaced NLA Space % of space Total Renewable in FY15/16 renewed / Balance Total renewed / renewed / (%) replaced in space renewable replac

  30. Slide 30: Lease Expiry Profile as at 31 Mar 2016 (by NLA)

    Lease Expiry Profile as at 31 Mar 2016 (by NLA)  Active lease management reduced lease expiries in FY16/17 to 14.6% of NLA, from 21.1% a year ago  12 SUA leases expiring in FY16/17 were successfully renewed/replaced ahead of their expiries => balance of 6 SUA leases will be expiring in FY16/17 – 2

  31. Slide 31: Geographic Breakdown of Lease Expiry Profile as at 31 Mar 2016

    Geographic Breakdown of Lease Expiry Profile as at 31 Mar 2016 (by NLA) 30

  32. Slide 32: Top 10 Customer Profile (by Gross Revenue)

    Top 10 Customer Profile (by Gross Revenue)  519 customers; none accounts for >5% of total gross revenue  Top 10 customers account for ~26% of total gross revenue 31

  33. Slide 33: Diversified Customer Mix Provides Portfolio Stability

    Diversified Customer Mix Provides Portfolio Stability Mar 2016 Mar 2016 Revenue Revenue Contribution Contribution (By Distribution (By Industry) Channel) 32

  34. Slide 34: Geographical Diversification

    Geographical Diversification Property Asset Revenue by Value by Country Country (31 Mar 2016) (4Q FY15/16) Property Value: S$5,069.5 million Revenue: S$88.4 million 33

  35. Slide 35: Single-User Assets vs. Multi-Tenanted Buildings

    Single-User Assets vs. Multi-Tenanted Buildings Mar 2016 SUA Revenue Mar 2016 MTB Revenue Contribution by Country Contribution by Country 34

  36. Slide 36: Remaining years to expiry of underlying land lease (by NLA)

    Remaining years to expiry of underlying land lease (by NLA)  Weighted average lease term to expiry of underlying leasehold land (excluding freehold land): 42 years ≤30 yrs 31-60 yrs >60 yrs Freehold 4.2% 28.6% 12.7% (18 assets) 54.4% (53 assets) (7 assets) (40 assets) 35

  37. Slide 37: Portfolio Valuation

    Portfolio Valuation No. of Valuation as at 31 Mar 2016 Country properties Local Currency S$ mil 1 Cap rates Singapore 51 SGD 1,742 mil 1,742.1 6% - 7.75% Japan 22 JPY 85,089 mil 1,034.0 5.3% - 6.4% Hong Kong 8 HKD 6,411 mil 1,139.4 5% - 5.25% China 9 CNY 1,520 mil 322.0 7% - 9%2 South Korea 11 KRW 3

  38. Slide 38: Portfolio at a Glance

    Portfolio at a Glance As at 31 Mar 2015 As at 31 Mar 2016 Investment Properties (S$ million) 4,631 5,070 WALE (by NLA) (years) 4.3 4.5 Net Lettable Area (million sqm) 3.1 3.2 Occupancy Rate (%) 96.7 96.2 No. of Tenants 410 519 No. of Properties 117 118 No. of Properties – By Country Singapore 53 51

  39. Slide 39: Outlook

    Outlook

  40. Slide 40: Outlook

    Outlook  Year ahead is expected to remain challenging given the uncertain macroeconomic outlook − Rental rates likely to come under pressure although demand for modern, well- located warehouse space likely to remain stable − MLT’s diversified portfolio with well-staggered lease expiry profile to pr

  41. Slide 41: Appendix

    Appendix

  42. Slide 42: MIPL's Logistics Development Projects in Asia

    MIPL’s Logistics Development Projects in Asia No Country Project name GFA (sqm) Status 1 China Mapletree Tianjin Airport Logistics Park 66,470 Completed with leasing underway 2 China Mapletree Tianjin Port HaiFeng Bonded Logistics Park 194,072 Completed with leasing underway 3 China Mapletree Chongq

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