Mapletree Industrial Trust · SGX:ME8U

Mapletree Industrial Trust — Shareholder Meeting (July 2013)

36 slides from Mapletree Industrial Trust's shareholder meeting presentation, Jul 19, 2013

  1. Slide 1: 3rd Annual General Meeting: Delivering Industrial Solutions

    3rd Annual General Meeting Delivering Industrial Solutions 19 July 2013

  2. Slide 2: Disclaimer

    DISCLAIMER This presentation is for information only and does not constitute an offer or solicitation of an offer to subscribe for, acquire, purchase, dispose of or sell any units in Mapletree Industrial Trust (“MIT”) or any other securities or investment. Nothing in this presentation should be cons

  3. Slide 3: AGM Resolutions

    AGM RESOLUTIONS RESOLUTION 1 (ORDINARY BUSINESS) To receive and adopt the Trustee's Report, the Manager's Statement, the Audited Financial Statements of MIT for the financial year ended 31 March 2013 and the Auditors' Report thereon. RESOLUTION 2 (ORDINARY BUSINESS) To re-appoint PricewaterhouseCoop

  4. Slide 4: Agenda: Delivering Industrial Solutions

    AGENDA DELIVERING INDUSTRIAL SOLUTIONS To be the preferred industrial real estate solutions provider 1 Key Highlights – 1 April 2012 to 31 March 2013 2 Portfolio Highlights 3 Asset Enhancement and Development Updates 4 Financial Review 5 Outlook and Strategy 3

  5. Slide 5: Key Highlights – 1 April 2012 to 31 March 2013

    Key Highlights – 1 April 2012 to 31 March 2013

  6. Slide 6: Stable Portfolio with Growth Potential

    STABLE PORTFOLIO WITH GROWTH POTENTIAL  Achieving results amid economic uncertainty  FY12/13 Distributable Income rose by 14.6% y-o-y to S$151.0 million  DPU for FY12/13 increased by 9.9% to 9.24 cents  Extending growth and unlocking value  Secured two build-to-suit (BTS) projects for Kulicke &

  7. Slide 7: Stable Portfolio with Growth Potential

    STABLE PORTFOLIO WITH GROWTH POTENTIAL  Delivering Robust Portfolio Performance  Higher average passing rental rate of S$1.61 psf/mth in FY12/13 with positive rental revisions across all property segments  Highest average portfolio occupancy rate of 95.2% since listing  Realised portfolio revalu

  8. Slide 8: Delivering Quality Industrial Solutions

    DELIVERING QUALITY INDUSTRIAL SOLUTIONS  To seek development opportunities to grow the portfolio  To unlock value from existing properties and ensure our product offering remains relevant through AEIs Development  Secured two BTS projects for Kulicke & Soffa and Equinix in FY12/13  Addition of q

  9. Slide 9: Scorecard Since IPO

    SCORECARD SINCE IPO 60 3.00 50 2.32 2.37 2.50 2.26 2.29 2.22 2.16 Distributable Income (S$ million) 2.05 1.93 1.98 40 38.9 2.00 36.9 37.5 37.7 35.2 35.8 DPU (cents) 1.52 31.6 28.3 29.0 30 1.50 22.3 20 1.00 10 0.50 0 0.00 21 Oct 10* 4QFY10/11 1QFY11/12 2QFY11/12 3QFY11/12 4QFY11/12 1QFY12/13 2QFY12/1

  10. Slide 10: MIT FY12/13 Unit Performance

    MIT FY12/13 UNIT PERFORMANCE Return on Investment (From 1 April 2012 to 31 March 2013) Total Return 36.1%¹ Capital Appreciation 27.7% Distribution Yield 8.4% 1.500 14 12 1.400 10 Volume (million units) 1.300 Unit Price (S$) 8 1.200 6 1.100 4 1.000 2 0.900 0 Apr 12 May 12 Jun 12 Jul 12 Aug 12 Sep 12

  11. Slide 11: Comparative Trading Performance in FY12/13

    COMPARATIVE TRADING PERFORMANCE IN FY12/13 Market Capitalisation of 29.1% S$2.31 billion 140 S-REITs: +30.7% 130 120 MIT: +27.7% 110 STI: +9.9% 100 90 80 Apr 12 May 12 Jun 12 Jul 12 Aug 12 Sep 12 Oct 12 Nov 12 Dec 12 Jan 13 Feb 13 Mar 13 Rebased MIT Price Rebased FTSE STI Rebased FTSE SREIT Index So

  12. Slide 12: Portfolio Highlights

    Portfolio Highlights

  13. Slide 13: Diversification Across Property Segments

    DIVERSIFICATION ACROSS PROPERTY SEGMENTS By Gross Revenue By Valuation S$276.4 million S$2.9 billion 1.1% 1.1% 1.0% 6.2% 6.2% Flatted Factories 7.5% 13.8% 13.8% 13.6% Business Park Buildings FY12/13 Stack-up /FY12/13 Ramp-up Buildings 60.4% 60.0% 18.5% Light Industrial Buildings 60.4% 18.5% 17.9% 1.

  14. Slide 14: Resilient Portfolio Performance

    RESILIENT PORTFOLIO PERFORMANCE Average Occupancy Rates and Passing Rents¹ 100% 94.7% 95.2% $1.80  Average occupancy rate 91.7% increased to 95.2% in $1.60 $1.61 FY12/13, representing the 80% $1.51 $1.40 highest rate since listing $1.45 $1.20  Portfolio’s passing rent in 60% $1.00 FY12/13 increase

  15. Slide 15: Stable Occupancy Levels

    STABLE OCCUPANCY LEVELS Segmental Occupancy Rates 100.0% 100.0% 98.2% 98.6% 96.8% 93.2% 94.4% 93.5% 92.0% 94.7% 95.2% 82.2% Flatted Factories Business Park Stack-up/Ramp-up Light Industrial Warehouse Portfolio Buildings Buildings Buildings FY11/12 FY12/13 14

  16. Slide 16: Embedded Organic Growth

    EMBEDDED ORGANIC GROWTH Positive Rental Revisions¹ $4.00 $3.88 $3.71 $3.50 $3.36 $3.58 $3.00 Gross Rental Rate (S$ psf/mth) $2.50 $2.00 $1.87 $1.78 $1.62 $1.50 $1.29 $1.53 $1.33 $1.30 $1.12 $1.08 $1.26 $1.00 $0.90 $1.05 $0.50 Flatted Factories Business Park Stack-up/Ramp-up Warehouse Buildings Build

  17. Slide 17: Stability from Extended Leases

    STABILITY FROM EXTENDED LEASES Expiring Leases by Gross Rental Income (%) 30% 27.7% 26.8% 25% 21.9% 20% 18.2% 15% 10% 5.4% 5% 0% FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 & Beyond Flatted Factories Business Park Stack-up / Ramp-up Light Industrial Warehouse Buildings Buildings Buildings As at 31 March

  18. Slide 18: Portfolio Stability from Long Leases

    PORTFOLIO STABILITY FROM LONG LEASES Remaining Years to Expiry of Underlying Land Leases (By Land Area) 57.0% 26.6% 9.8% 5.7% 0.9% 0 to 20 years >20 to 30 years >30 to 40 years >40 to 50 years >50 years As at 31 March 2013 Weighted Average Unexpired Lease Term for Underlying Land = 43.7 years 17

  19. Slide 19: High Degree of Tenant Stickiness

    HIGH DEGREE OF TENANT STICKINESS Long Staying Tenants Retention Rate for FY12/13 >15 yrs Up to 1 yr 4.6% 11.7% >10 to 15 100.0% yrs 91.4% 92.8% 6.4% 82.6% 82.0% 82.9% 80.6% 80.0% 73.2% >1 to 2 yrs 14.2% 63.5% 61.9% 60.0% >5 to 10 yrs 28.5% 40.0% 34.0% 20.0% > 2 to 3 yrs 17.4% 0.0% Flatted Factories

  20. Slide 20: Large and Diverse Tenant Base

    LARGE AND DIVERSE TENANT BASE Top 10 Tenants (By Gross Rental Income) 5% • Over 2,000 tenants 4.5% • Largest tenant contributes <5% of Portfolio’s Gross Rental Income • Top 10 Tenants forms only 19.6% of Portfolio’s Gross Rental Income 4% 3.5% 3% 2.2% 2% 1.8% 1.7% 1.5% 1.3% 1.2% 1.0% 0.9% 1% 0% By G

  21. Slide 21: Diversity of Tenant Trade Sector

    DIVERSITY OF TENANT TRADE SECTOR By Revenue As at 31 March 2013 20

  22. Slide 22: Asset Enhancement & Development Updates

    Asset Enhancement & Development Updates

  23. Slide 23: Build-to-Suit – Kulicke & Soffa

    BUILD-TO-SUIT – KULICKE & SOFFA Estimated Expected Location GFA Cost Completion Serangoon North 330,000 sq ft S$50 million 2nd Half 2013 Ave 5 Construction works in progress Artist’s impression of K&S’s new global headquarters in Singapore  New 5-storey high-tech building for Kulicke and Soffa (K&S

  24. Slide 24: Build-to-Suit – Equinix

    BUILD-TO-SUIT – EQUINIX Estimated Expected Location GFA Cost Completion one-north 385,000 sq ft S$108 million 2nd Half 2014  New 7-storey data center 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 dependi

  25. Slide 25: AEI – Woodlands Central

    AEI – WOODLANDS CENTRAL Estimated Temporary Location Additional GFA Cost Occupation Permit 33 & 35 Marsiling 70,000 sq ft S$30 million July 2013 Industrial Estate Road 3 Artist’s impression of completed development New 6-storey extension wing  Repositioned as a high-tech industrial cluster for biom

  26. Slide 26: AEI – Toa Payoh North 1

    AEI – TOA PAYOH NORTH 1 Estimated Expected Location Additional GFA Cost Completion 970 & 998 Toa Payoh 150,000 sq ft S$40 million 4th Quarter 2013 North Formwork and rebar installation Artist’s impression of completed development  Development of new 8-storey high-tech building and 5-storey amenity

  27. Slide 27: AEI – The Signature (Completed)

    AEI – THE SIGNATURE (COMPLETED) Estimated Location Additional GFA Cost 51 Changi Business 3,000 sq ft S$5 million Park Central 2 Artist’s impression of the improved drop-off area Artist’s impression of the improved building facade  Improved competitiveness of The Signature  Converted gymnasium spa

  28. Slide 28: Financial Review

    Financial Review

  29. Slide 29: Statement of Total Returns (FY12/13 vs FY11/12)

    STATEMENT OF TOTAL RETURNS (FY12/13 VS FY11/12) FY12/13 FY11/12  / () (S$’000) (S$’000) Gross revenue 276,433 246,371 12.2% Property operating expenses (80,997) (75,051) 7.9% Net Property Income 195,436 171,320 14.1% Interest on borrowings (27,129) (23,573) 15.1% Trust expenses (22,747) (21,410) 6

  30. Slide 30: Healthy Balance Sheet

    HEALTHY BALANCE SHEET 31 March 31 March 2013 2012 Total Assets (S$’000) 2,967,608 2,822,205 Total Liabilities (S$’000) 1,163,918 1,167,669 Net Assets Attributable to Unitholders 1,803,690 1,654,536 (S$’000) Net Asset Value per Unit (S$) 1.10 1.02 Increase in Net Asset Value per Unit  Due to revalua

  31. Slide 31: Stronger Balance Sheet

    STRONGER BALANCE SHEET As at As at 31 March 2013 31 March 2012 Total Debt S$1,035.0 million S$1,069.2 million Aggregate Leverage Ratio 34.8% 37.8% Weighted Average Tenor of Debt 2.7 years 3.0 years Hedged Borrowings 88.0% 85.0% Average Borrowing Costs for Financial Year 2.4% 2.2% Interest Cover Rati

  32. Slide 32: Stronger Balance Sheet: Debt Maturity Profile

    STRONGER BALANCE SHEET Debt Maturity Profile as at 31 March 2013 $344.0m As at 31 March 2013 (33%) Total Debt S$1,035.0 million Weighted Average Tenor of Debt 2.7 years Unutilised bank facilities S$404.4 million $206.1m (20%) $139.3m $125.6m (14%) $125.0m (12%) (12%) $50.0m $45.0m (5%) (4%) FY13/14

  33. Slide 33: Outlook and Strategy

    Outlook and Strategy

  34. Slide 34: Market Outlook

    MARKET OUTLOOK DEMAND AND OCCUPANCY FOR FLATTED FACTORIES DEMAND AND OCCUPANCY FOR BUSINESS PARKS Occupancy Rate (%) ('000 sq m) Occupancy Rate (%) ('000 sq m) 160 100 350 100 94.6% 140 300 92.5% 90 120 250 90 90.5% 100 200 80 80 150 82.8% 80 60 100 70 40 50 70 20 0 60 0 2003 2004 2005 2006 2007 200

  35. Slide 35: Strategy

    34 STRATEGY 10 deliver sustainable / and growing returns ~ \ To be the preferred j . | industrial real estate pe | solutions provider i providing quality \ industrial real estate ‘solutions to clients Prudent Capital Management —— 4 —_— | mapleiree te industrial

  36. Slide 36: End of Presentation

    End of Presentation

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