Mapletree Industrial Trust · SGX:ME8U

Mapletree Industrial Trust — Q2 2023 Earnings Presentation

30 slides from Mapletree Industrial Trust's earnings presentation, Oct 26, 2022

  1. Slide 1: 2Q & 1HFY22/23 Financial Results

    2Q & 1HFY22/23 Financial Results 26 October 2022

  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 2022/2023 in the SGXNET announcement dated 26 October 2022. This presentation is for information only and does not constitute an offer or soli

  3. Slide 3: Contents

    Contents 01 Key Highlights – 1 Jul 2022 to 30 Sep 2022 02 2Q & 1HFY22/23 Financial Performance 03 Portfolio Update 04 Investment Update 05 Outlook and Strategy 3

  4. Slide 4: Key Highlights 1 Jul 2022 to 30 Sep 2022

    KEY HIGHLIGHTS 1 JUL 2022 TO 30 SEP 2022 Data Centres, 13831 Katy Freeway, Houston

  5. Slide 5: Key Highlights

    Key Highlights  Performance driven by contribution from the 29 data centres acquired in the United States, partially offset by higher property operating expenses and borrowing costs • 2QFY22/23 Distributable Income: S$89.0 million ( 0.7% y-o-y) • 2QFY22/23 DPU: 3.36 cents ( 3.2% y-o-y)  Improving

  6. Slide 6: Sustainable and Growing Returns

    Sustainable and Growing Returns Distributable Income DPU (S$ million) (cents) 3.47 3.49 3.49 3.49 100 3.283.30 3.35 3.36 3.50 3.16 92.1 3.103.13 3.10 90.3 89.0 90 88.4 89.5 2.852.87 81.1 82.7 3.00 80 72.9 70.6 70.7 69.469.2 70 2.50 63.263.5 60 2.00 50 1.50 40 30 1.00 20 0.50 10 0 0.00 3Q¹ 4Q 1Q 2Q 3

  7. Slide 7: 2Q & 1HFY22/23 Financial Performance

    2Q & 1HFY22/23 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) 2QFY22/23 2QFY21/22  / () (S$’000) (S$’000) Gross revenue 175,512 155,560 12.8% Property operating expenses (45,187) (35,240) 28.2% Net property income 130,325 120,320 8.3% Borrowing costs (23,770) (17,400) 36.6% Trust expenses (16,498) (10,722) 53.9% Sha

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

    Statement of Profit or Loss (Year-on-Year) 1HFY22/23 1HFY21/22  / () (S$’000) (S$’000) Gross revenue 343,317 283,619 21.0% Property operating expenses (83,089) (58,580) 41.8% Net property income 260,228 225,039 15.6% Borrowing costs (43,717) (32,638) 33.9% Trust expenses (33,056) (23,665) 39.7% Ga

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

    Statement of Profit or Loss (Qtr-on-Qtr) 2QFY22/23 1QFY22/23  / () (S$’000) (S$’000) Gross revenue 175,512 167,805 4.6% Property operating expenses (45,187) (37,902) 19.2% Net property income 130,325 129,903 0.3% Borrowing costs (23,770) (19,947) 19.2% Trust expenses (16,498) (16,558) (0.4%) Gain

  11. Slide 11: Statement of Financial Position

    Statement of Financial Position 30 Sep 2022 30 Jun 2022  / () Total assets (S$’000) 8,769,985 8,581,859 2.2% Total liabilities (S$’000) 3,256,332 3,225,858 0.9% Net assets attributable to Unitholders 5,211,899 5,056,529 3.1% (S$’000) Net asset value per Unit (S$)1 1.93 1.88 2.7% 1 Net tangible ass

  12. Slide 12: Strong Balance Sheet

    Strong Balance Sheet 30 Sep 2022 30 Jun 2022 DEBT CURRENCY PROFILE As at 30 September 2022 Total debt S$2,947.1 million S$2,940.7 million 19.2% Weighted average 3.5 years 3.7 years tenor of debt Aggregate leverage 37.8% 38.4% ratio1 Strong balance sheet to pursue growth opportunities  ‘BBB+’ rating

  13. Slide 13: Well Diversified Debt Maturity Profile

    Well Diversified Debt Maturity Profile DEBT MATURITY PROFILE As at 30 September 2022 30.3% 23.8% 18.7% 11.9% 891.7 702.8 491.5 6.0% 5.1% 351.1 4.2% 175.0 150.0 125.0 60.0 - - - - FY22/23 FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 MTN Bank Loans Amounts in S$ million Weighted Average Tenor of De

  14. Slide 14: Risk Management

    Risk Management 30 Sep 2022 30 Jun 2022 Fixed as a % of total debt 74.2% 72.3% Weighted average hedge tenor 4.0 years 4.2 years Weighted average all-in funding 2.9% 2.5% cost for the quarter Interest coverage ratio (“ICR”) 5.2 times 6.0 times for the quarter ICR for the trailing 12 months1 5.8 times

  15. Slide 15: Portfolio Update

    PORTFOLIO UPDATE Business Park Buildings, The Strategy and The Synergy

  16. Slide 16: 141 Properties Across 6 Property Segments

    141 Properties Across 6 Property Segments S$8.9 billion1 24.1 million2 >2,000 tenants AUM NLA (sq ft) Tenant Base Light Industrial Buildings Stack-up/Ramp-up 0.7% Data Centres: 54.6% Buildings North America: 51.3% 5.5% Singapore: 3.3% Flatted Factories 16.4% Data Centres Flatted Factories AUM1 Bus

  17. Slide 17: Portfolio Overview

    Portfolio Overview Singapore North American Overall Portfolio Portfolio Portfolio Number of properties 85 56 141 NLA (million sq ft) 15.8 8.31 24.11 Occupancy (%) 2QFY22/23 96.8 93.1 95.62 1QFY22/23 96.0 94.0 95.32 SEGMENTAL OCCUPANCY RATES1 2 2 98.8% 98.6% 94.5% 93.8% 95.5% 96.7% 97.7% 98.3% 97.5%

  18. Slide 18: Lease Expiry Profile

    Lease Expiry Profile EXPIRING LEASES BY GROSS RENTAL INCOME1 As at 30 September 2022 WALE based on date of commencement of leases (years)2 North American Portfolio 6.0 Singapore Portfolio 2.6 Overall Portfolio1 4.0 37.3% 17.9% 16.4% 16.2% 6.8% 5.4% FY22/23 FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 & B

  19. Slide 19: Large and Diversified Tenant Base

    Large and Diversified Tenant Base TOP 10 TENANTS BY GROSS RENTAL INCOME1 As at 30 September 2022 6.0%  Over 2,000 tenants  Largest tenant contributes 6.0% of Portfolio’s Gross Rental Income 5.3%  Top 10 tenants forms about 29.7% 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 2022 1 Based on MIT’s 50% interest of the joint venture with MIPL in three fully fitted hyperscale data centres and 10 powered shell data centres

  21. Slide 21: Singapore Portfolio Performance

    Singapore Portfolio Performance Occupancy Gross Rental Rate S$ psf/mth 100% 96.8% $2.50 96.0% 94.4% 93.4% 93.6% 93.7% 92.9% 92.2% 91.5% 90.5% 90.2% 90.5% 90.7% 90.2% 90% $2.12 $2.11 $2.13 $2.13 $2.13 $2.13 $2.10 $2.10 80% $2.15 $2.13 $2.11 $2.08 $2.03 $2.05 $2.00 70% 60% 50% $1.50 40% 30% $1.00 20%

  22. Slide 22: Rental Revisions (Singapore)

    Rental Revisions (Singapore) GROSS RENTAL RATE (S$ PSF/MTH)1 For Period 2QFY22/23 Before Renewal $4.18 $4.22 $3.97 After Renewal $3.83 $3.71 New Leases $3.61 Passing Rent $3.27 $1.80 $1.84 $1.70 $1.39 $1.44 $1.30 $1.76 $1.41 $1.29 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 2QFY22/23 Up to 1 yr 12.3% >10 yrs 94.3% 91.9% 33.1% 85.3% 86.5% >1 to 2 yrs 9.9% 4 yrs or less 52.0% More than 38.2% 4 yrs > 2 to 3 yrs 61.8% 7.4% >3 to 4 yrs N.A. N.A. 8.6% Data Hi-Tech Business Flatted Stack-up / Light S

  24. Slide 24: Building a Climate Resilient Portfolio

    Building a Climate Resilient Portfolio Accelerate Adoption of Renewable Energy and Attain Green Building Certifications Complete installation of solar Obtained BCA Green Mark GoldPlus panels at six Flatted Factory Award for Serangoon North Cluster clusters by 4Q2022 in Sep 2022 Chai Chee Lane Changi

  25. Slide 25: Investment Update

    INVESTMENT UPDATE Data Centres, 44490 Chilum Place (ACC2), Northern Virginia

  26. Slide 26: Redevelopment – Kolam Ayer 2

    Redevelopment – Kolam Ayer 21 161, 163 & 165 Kallang Way1 GFA Plot Ratio Kolam Ayer 2 Cluster Two Flatted Factories and an amenity centre 506,720 sq ft 1.5 New Hi-Tech Buildings, including a After Redevelopment 865,600 sq ft 2.5 seven-storey BTS Facility for Anchor Tenant Artist’s impression of MIT’

  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  Against the backdrop of an uncertain global outlook, the increasing concern of an oncoming recession has dampened business confidence. At the same time, increasing property operating expenses and borrowing costs continue to

  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  Hedged borrowings of 74.2% and weighted average hedge tenor of Enha

  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 2023 Earnings Presentation on 6ix