Mapletree Industrial Trust · SGX:ME8U

Mapletree Industrial Trust — Investor Presentation (August 2014)

33 slides from Mapletree Industrial Trust's investor presentation, Aug 28, 2014

  1. Slide 1: Investor Presentation August 2014

    Investor Presentation August 2014

  2. Slide 2: Important Notice

    Important Notice This presentation shall be read in conjunction with Mapletree Industrial Trust’s (“MIT”) financial results for First Quarter Financial Year 2014/2015 in the SGXNET announcement dated 22 July 2014. This presentation is for information only and does not constitute an offer or solicita

  3. Slide 3: Agenda

    Agenda 1 Overview of Mapletree Industrial Trust 2 Portfolio Highlights 3 1QFY14/15 Financial Performance 4 Outlook and Strategy 3

  4. Slide 4: Overview of Mapletree Industrial Trust

    OVERVIEW OF MAPLETREE INDUSTRIAL TRUST Hi-Tech Building, K&S Corporate Headquarters

  5. Slide 5: Overview of Mapletree Industrial Trust

    Overview of Mapletree Industrial Trust Mapletree Investments Pte Ltd Public & Inst MIPL (MIPL) Unitholders Sponsor Owns 32% of MIT 68% 32% Trustee Focused on industrial real estate Investment assets in Singapore, excluding Manager mandate properties primarily used for logistics purposes Property MIT

  6. Slide 6: Broad Spectrum of Industrial Facilities

    Broad Spectrum of Industrial Facilities BUSINESS PARK BUILDINGS STACK-UP/RAMP-UP BUILDINGS Multi-storey suburban office buildings in specially designated “Business Park zones”. Stacked-up factory space with vehicular Serve as regional headquarters for MNCs as access to upper floors. Multi-tenanted s

  7. Slide 7: Strategically Located across Singapore

    Strategically Located across Singapore Close to Public Transportation Networks and Established Industrial Estates Flatted Factories Hi-Tech Buildings Business Park Buildings Stack-up/Ramp-up Buildings Light Industrial Buildings Major Expressways 7

  8. Slide 8: Scorecard since IPO

    Scorecard since IPO Distributable Income DPU (cents) (S$ million) 60 3.00 2.47 2.51 2.51 2.51 2.43 50 2.32 2.37 2.50 2.26 2.29 2.22 2.16 42.8 2.05 42.2 42.6 1.98 40.2 41.1 1.93 38.9 40 36.9 37.5 37.7 2.00 35.2 35.8 1.52 31.6 28.3 29.0 30 1.50 22.3 20 1.00 10 0.50 0 0.00 3Q¹ 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4

  9. Slide 9: Attractive Returns since IPO

    Attractive Returns since IPO RETURN ON INVESTMENT (FROM LISTING DATE TO 30 JUN 2014) Total Return 89.8%¹ Capital Appreciation 53.7% Distribution Yield 36.1%² Unit Price (S$) Volume (million units) $1.80 40 $1.60 35 $1.40 30 $1.20 25 $1.00 20 $0.80 15 $0.60 10 $0.40 $0.20 5 $0.00 0 Oct 10 Apr 11 Oct

  10. Slide 10: Significant Events

    Significant Events July March September January  Won Tranche 2 of JTC Maiden issuance of Issuance of S$45 Implementation of Corporation’s Second Phase S$125 million 7-year million 10-year Distribution 2012 2013 2011 Divestment Exercise Portfolio Fixed Rate Notes was unsecured Fixed Reinvestment Pla

  11. Slide 11: Portfolio Highlights

    PORTFOLIO HIGHLIGHTS Hi-Tech Building, Tata Communications Exchange

  12. Slide 12: Resilient Portfolio Performance

    Resilient Portfolio Performance Gross Rental Rate Occupancy S$ psf/mth 100% 95.4% 95.5% 93.2% 94.3% 94.5% 95.1% 95.0% 94.9% 95.0% 95.2% 93.9% 92.5% 91.0% 91.0% 90.7% 90.3% 90.3% 91.2% 92.3% 91.3% 90.7% 89.0% 89.0% 89.7% $2.00 90% $1.75 $1.77 $1.71 $1.70 $1.73 80% $1.68 $1.59 $1.61 $1.55 $1.56 $1.52

  13. Slide 13: Segmental Occupancy Levels

    Segmental Occupancy Levels 96.7% 96.8% 94.2%¹ 95.1% 94.4% 93.6% 90.7%¹ 91.3% 80.2% 79.4% 74.5% 74.9% Flatted Factories Hi-Tech Buildings Business Park Stack-Up/Ramp-Up Light Industrial MIT Buildings Buildings Buildings Portfolio Left Bar Right Bar 1QFY14/15 4QFY13/14 ¹ The fall in occupancy rates we

  14. Slide 14: Positive Rental Revisions

    Positive Rental Revisions Gross Rental Rate (S$ psf/mth)¹ Before Renewal $4.28 After Renewal $3.81 New Lease $3.44 $3.16 $3.75 Passing Rent $2.15 $1.84 $1.93 $1.62 $2.18 $1.37 $1.24 $1.32 $1.68 $1.03 $1.21 Flatted Factories Hi-Tech Buildings Business Park Buildings Stack-up/Ramp-up Buildings Renewal

  15. Slide 15: Healthy Tenant Retention

    Healthy Tenant Retention LONG STAYING TENANTS RETENTION RATE FOR 1QFY14/15 >10 yrs Up to 1 yr 12.6% 92.6% 13.9% 84.4% >1 to 2 yrs 73.7% 71.7% 11.3% 67.8% >5 to 10 yrs 28.4% 50.5% > 2 to 3 yrs 11.3% N.A. >3 to 4 yrs >4 to 5 yrs Flatted Hi-Tech Business Stack-Up / Light Portfolio 13.0% 9.5% Factories

  16. Slide 16: Lease Expiry Profile

    Lease Expiry Profile EXPIRING LEASES BY GROSS RENTAL INCOME (%) 23.5% 23.2% 19.6% 14.0% 13.0% 6.7% FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 & Beyond Flatted Factories Hi-Tech Buildings Business Park Stack-up/Ramp-up Light Industrial Buildings Buildings Buildings Portfolio WALE by Gross Rental

  17. Slide 17: Large and Diversified Tenant Base

    Large and Diversified Tenant Base TOP 10 TENANTS (BY GROSS RENTAL INCOME)  Over 2,000 tenants 3.4%  Largest tenant contributes <4% of Portfolio’s Gross Rental Income  Top 10 tenants forms only 15.8% of Portfolio’s Gross Rental Income 2.3% 1.9% 1.8% 1.4% 1.4% 1.2% 0.9% 0.8% 0.7% As at 30 Jun 2014

  18. Slide 18: Tenant Diversification Across Trade Sectors

    Tenant Diversification Across Trade Sectors No single trade sector accounted >15% of Portfolio’s Gross Rental Income By Gross Rental Income As at 30 Jun 2014 18

  19. Slide 19: BTS – Equinix

    BTS – Equinix Location GFA Estimated Cost Date of Completion 26A Ayer Rajah 385,000 sq ft S$108 million 2nd Half 2014 Crescent Roof construction in-progress Artist’s impression of completed development  New 7-storey data centre for Equinix (100% of space committed)  20-year lease with the option t

  20. Slide 20: BTS – Hewlett-Packard

    BTS – Hewlett-Packard Before After Redevelopment Property Two 7-storey Flatted Factories Two Hi-Tech Buildings and a canteen GFA 437,300 sq ft 824,500 sq ft Plot ratio 1.3 2.5 Land Tenure 60 years (from 1 July 2008)  Secured largest BTS project at S$250 million¹  100% committed by Hewlett-Packard

  21. Slide 21: Acquisition – 2A Changi North Street 2

    Acquisition – 2A Changi North Street 2 Location 2A Changi North Street 2 GFA About 67,800 sq ft Land Use Zone Business 2 30 years + 30 years Land Tenure (from 16 Aug 2001) Acquisition S$14 million¹ Cost Light Industrial Building, 2A Changi North Street 2 Stamping Industries Pte Tenant Ltd  Complete

  22. Slide 22: Committed Sponsor with Aligned Interest

    Committed Sponsor with Aligned Interest REPUTABLE SPONSOR BENEFITS TO MIT 1. Leverage on Sponsor’s network  Leverage on Mapletree’s financial strength, market reach and network  Leading Asia-focused real estate and 2. Alignment of Sponsor’s interest with capital management company Unitholders  Ma

  23. Slide 23: 1QFY14/15 Financial Performance

    1QFY14/15 FINANCIAL PERFORMANCE Flatted Factory, Kallang Basin 4 Cluster

  24. Slide 24: Key Highlights

    Key Highlights  Delivering Growth  1QFY14/15 Distributable Income: S$42.8 million ( 6.3% y-o-y)  1QFY14/15 DPU: 2.51 cents ( 3.3% y-o-y)  Driven by higher rental rates secured for leases across all property segments except Business Park Buildings  Resilient Portfolio Performance  Higher portfo

  25. Slide 25: Statement of Total Returns (Year-on-Year)

    Statement of Total Returns (Year-on-Year) 1QFY14/15 1QFY13/14  / () (S$’000) (S$’000) Gross revenue 78,425 75,098 4.4% Property operating expenses (21,755) (22,644) (3.9%) Net property income 56,670 52,454 8.0% Interest on borrowings (5,909) (6,595) (10.4%) Trust expenses (6,579) (6,104) 7.8% Tota

  26. Slide 26: Statement of Total Returns (Qtr-on-Qtr)

    Statement of Total Returns (Qtr-on-Qtr) 1QFY14/15 4QFY13/14  / () (S$’000) (S$’000) Gross revenue 78,425 75,169 4.3% Property operating expenses (21,755) (21,874) (0.5%) Net property income 56,670 53,295 6.3% Interest on borrowings (5,909) (5,828) 1.4% Trust expenses (6,579) (6,341) 3.8% Net incom

  27. Slide 27: Balance Sheet

    Balance Sheet 30 Jun 2014 31 Mar 2014  / () Total Assets (S$’000) 3,277,961 3,275,053 0.1% Total Liabilities (S$’000) 1,228,887 1,246,396 (1.4%) Net Assets Attributable to 2,049,074 2,028,657 1.0% Unitholders (S$’000) Net Asset Value per Unit (S$) 1.20 1.20 - 27

  28. Slide 28: Strong Balance Sheet

    Strong Balance Sheet As at 30 Jun As at 31 Mar Strong balance sheet to 2014 2014 pursue growth opportunities Total Debt S$1,103.4 million S$1,129.7 million Aggregate 33.6% 34.4%  Proceeds of S$21.1 million Leverage Ratio from DRP in 4QFY13/14 Fixed as a % of 75% 73% used to fund development Total D

  29. Slide 29: Debt Maturity Profile

    Debt Maturity Profile 23% 20% Gross Debt (S$ million) 17% 150 13% 60 11% 150 218 8% 145 126 125 101 4% 4% 93 40 45 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 MTN Bank Borrowings Refinancing with Committed Facility As at 30 Jun 2014 29

  30. Slide 30: Outlook and Strategy

    OUTLOOK AND STRATEGY Business Park Buildings, The Strategy and The Synergy

  31. Slide 31: Market Outlook

    Market Outlook DEMAND AND SUPPLY FOR MULTI-USER FACTORIES DEMAND AND SUPPLY FOR BUSINESS PARKS  Singapore’s economy grew 2.4% on a year-on-year basis in the second quarter of 2014, moderating from the 4.8% growth in the preceding quarter¹  Average rents for industrial real estate for 1QFY14/15² 

  32. Slide 32: Positioned for Growth

    Positioned for Growth  Large tenant base  Strengthened capital  Completed and well-diversified structure with a lower acquisition of 2A portfolio underpins aggregate leverage Changi North Street 2 resilient portfolio ratio and well- performance distributed debt  BTS development for maturity prof

  33. Slide 33: End of Presentation

    End of Presentation For enquiries, please contact Ms Melissa Tan, Vice President, Investor Relations, DID: (65) 6377 6113, Email: melissa.tanhl@mapletree.com.sg

Mapletree Industrial Trust — Investor Presentation (August 2014) on 6ix