Mapletree Industrial Trust · SGX:ME8U

Mapletree Industrial Trust — Investor Presentation (August 2012)

36 slides from Mapletree Industrial Trust's investor presentation, Aug 21, 2012

  1. Slide 1: Investor Presentation August 2012

    Investor Presentation August 2012

  2. Slide 2: Disclaimer

    DISCLAIMER This presentation may contain forward-looking statements that involve risks and uncertainties. Future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative

  3. Slide 3: Agenda

    AGENDA 1 Overview of Mapletree Industrial Trust 2 Portfolio Highlights 3 1QFY12/13 Financial Performance 4 Strategy & Outlook 2

  4. Slide 4: Overview of Mapletree Industrial Trust

    Overview of Mapletree Industrial Trust

  5. Slide 5: Overview of Mapletree Industrial Trust

    OVERVIEW OF MAPLETREE INDUSTRIAL TRUST Sponsor Mapletree Investments Pte Ltd Public & Inst MIPL (“MIPL”) Unitholders Owns 30% of MIT 70% 30% Trustee Investment Focused on income producing real mandate estate in Singapore primarily used for industrial purposes, excluding properties primarily used for

  6. Slide 6: Scorecard Since IPO

    SCORECARD SINCE IPO 60 3.00 50 2.50 2.22 2.26 Distributable Income (S$ million) 2.16 2.05 1.93 1.98 40 36.9 2.00 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 to 31 Dec 10 Distributable Income (S$

  7. Slide 7: 81 Properties Across 4 Key Property Types

    81 PROPERTIES ACROSS 4 KEY PROPERTY TYPES • One of the largest industrial landlords in Singapore • Total property assets of approx. S$2.7 billion • Total GFA of approx. 1.8 million sq m • Total NLA of approx. 1.3 million sq m • Tenant base of more than 2,000 MNCs, listed Light Industrial Warehouse B

  8. Slide 8: Strategically Located Across Singapore

    STRATEGICALLY LOCATED ACROSS SINGAPORE 7

  9. Slide 9: Diverse Offering of Industrial Space

    DIVERSE OFFERING OF INDUSTRIAL SPACE Kampong Ubi Telok Blangah Redhill 1 Kallang Basin 3 Kampong Ampat Kolam Ayer 5 The Signature The Synergy The Strategy Woodlands Spectrum 1 & 2 19 Tai Seng Drive Tata Communications Exchange LEGEND Flatted Factories Business Park Buildings Stack-up/Ramp-Up Buildin

  10. Slide 10: Portfolio Highlights

    Portfolio Highlights

  11. Slide 11: Robust, Resilient, Relevant & Reputable

    ROBUST, RESILIENT, RELEVANT & REPUTABLE Embedded Organic Growth Potential Large, Diversified and Resilient Portfolio with Market Presence Growth Opportunity from Asset Enhancements and Acquisitions Experienced Manager and Committed Sponsor 10

  12. Slide 12: Embedded Organic Growth

    EMBEDDED ORGANIC GROWTH Gross Rental Rate S$ psf/mth 4.50 $4.03 4.00 $3.75 3.50 $3.43 $3.39 3.00 2.50 2.00 $1.80 $1.55 1.50 $1.49 $1.29 $1.27 $1.28 $1.08 $1.28 $1.05 1.00 $0.82 $1.01 0.50 0.00 Flatted Factories Business Park Stack-Up / Ramp-Up Warehouse Buildings Buildings Before Renewal After Renew

  13. Slide 13: Continued Resilience in Portfolio

    CONTINUED RESILIENCE IN PORTFOLIO Gross Rental Rate Occupancy S$ psf/mth 100% $1.70 94.3% 94.5% 95.1% 94.9% 94.9% 91.0% 91.0% 90.7% 90.3% 91.2% 92.3% 93.2% 89.0% 89.0% 89.7% 90.3% 80% $1.60 $1.56 $1.55 $1.54 $1.53 $1.52 $1.49 60% $1.50 $1.45 $1.44 $1.40 40% $1.40 $1.35 $1.31 $1.31 $1.29 20% $1.30 $1

  14. Slide 14: Stable Occupancy Levels

    STABLE OCCUPANCY LEVELS Breakdown of Occupancy Levels by Property Types 98.6% 98.3% 100.0% 100.0% 98.3% 94.9% 94.9% 93.7% 94.0% 91.3% 91.0% 89.6% Flatted Factories Business Park Stack-Up/Ramp-Up Light Industrial Warehouse MIT Buildings Buildings Buildings Portfolio Left Bar Right Bar (4QFY11/12) (1Q

  15. Slide 15: Healthy Tenant Retention

    HEALTHY TENANT RETENTION Long Staying Tenants Retention Rate for 1QFY12/13 >10 yrs Up to 1 yr Average Retention Rate 10.6% 12.9% 100.0% 91.1% 80.0% 76.5% 71.1% >5 to 10 61.4% yrs >1 to 2 yrs 60.0% 23.2% 20.0% 45.7% 40.0% 18.0% 20.0% N.M. 0.0% >4 to 5 yrs > 2 to 3 yrs Flatted Business Stack-Up / Ligh

  16. Slide 16: Stable Rental Revenue

    STABLE RENTAL REVENUE 35.0% 13.0% of Leases Remain Due for Renewal in FY12/13 31.8% 30.0% 28.0% 27.2% by Gross Rental Income 25.0% % Expiring Leases 20.0% 15.0% 13.0% 10.0% 5.0% 0.0% FY12/13 FY13/14 FY14/15 FY15/16 & beyond Flatted Factories Business Park Stack-up / Ramp-up Light Industrial Warehous

  17. Slide 17: Large and Diverse Tenant Base

    LARGE AND DIVERSE TENANT BASE 4% 3.7% • Over 2,000 tenants • Largest tenant contributes <4.0% of Portfolio‟s Gross Rental Income • Top 10 Tenants forms only 18.0% of Portfolio‟s Gross Rental Income 3% 2.7% 2.1% 2% 1.8% 1.7% 1.3% 1.3% 1.3% 1.1% 1.0% 1% 0% By Gross Rental Income 16 As at 30 June 2012

  18. Slide 18: Diversity of Tenant Trade Sector

    DIVERSITY OF TENANT TRADE SECTOR By Revenue As at 30 June 2012 17

  19. Slide 19: Relevance of Singapore in Asia

    RELEVANCE OF SINGAPORE IN ASIA Ranking #1 #2 #3 #4 #5 Ease of Doing Business1 Most Open Economy for International Trade and Investment2 Best Business Environment3 City with Best Investment Potential4 City with Highest Economic Potential, Projected Growth and Sources (Shanghai) (Shenzhen) 1. World Ba

  20. Slide 20: Tenant Profile Reflects Key Economic Sectors

    TENANT PROFILE REFLECTS KEY ECONOMIC SECTORS Manufacturing consistently contributes about 25% of Singapore’s GDP 1 350 300 27% 250 26% Real GDP (S$ billion) 24% 23% 3% 200 4% 4% 4% 11% 11% 11% 12% 12% 12% 150 12% 12% 17% 17% 100 17% 17% 50 31% 31% 32% 33% 0 2008 2009 2010 2011  Manufacturing sector

  21. Slide 21: Sustaining Growth Through BTS and AEIs: Kulicke & Soffa

    SUSTAINING GROWTH THROUGH BTS AND AEIs Build-to-Suit (BTS) Facility for Kulicke & Soffa (K&S)  K&S will occupy an estimated 69% of NLA  10-year lease with the option to renew additional 10 + 10 years  Embedded annual rental escalation Location Serangoon North Ave 5 Additional GFA 30,800 sq m (331

  22. Slide 22: Sustaining Growth Through BTS and AEIs: Woodlands Central

    SUSTAINING GROWTH THROUGH BTS AND AEIs Asset Enhancement Initiative (AEI)  Woodlands Central Cluster  Reposition cluster as a high-tech industrial space for biomedical and medical technology companies  Extension of six-storey wing, multi- storey car park and canteen  50% of new space committed 3

  23. Slide 23: Sustaining Growth Through BTS and AEIs: Toa Payoh North 1

    SUSTAINING GROWTH THROUGH BTS AND AEIs AEI  Toa Payoh North 1 Cluster  Reposition cluster into high-tech industrial space  Development of new high-tech industrial building and an amenity block with multi-storey car park, canteen and showrooms Location 970 & 998 Toa Payoh North Additional GFA 150,

  24. Slide 24: Experienced Manager & Committed Sponsor

    EXPERIENCED MANAGER & COMMITTED 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 capital management company  Owns and manages S$19.9 billion1 of office, 2 Alignment of Sponsor‟s intere

  25. Slide 25: 1QFY12/13 Financial Performance

    1QFY12/13 Financial Performance

  26. Slide 26: Key Highlights

    KEY HIGHLIGHTS  Strong performance driven by revenue contribution and cost synergies from the Flatted Factories portfolio acquired in August 2011 and better operating performance  1QFY12/13 Distributable Income rose 27.1% y-o-y to S$36.9 million  DPU increased 14.1% y-o-y to 2.26 cents  Robust p

  27. Slide 27: Statement of Total Returns (Year-on-Year)

    STATEMENT OF TOTAL RETURNS (YEAR-ON-YEAR) 1QFY12/13 1QFY11/12  / () (S$’000) (S$’000) Gross revenue 66,864 55,000 21.6% Property operating expenses (18,520) (16,760) 10.5% Net Property Income 48,344 38,240 26.4% Interest on borrowings (6,994) (4,964) 40.9% Trust expenses (5,557) (4,653) 19.4% Net

  28. Slide 28: Statement of Total Returns (Qtr-on-Qtr)

    STATEMENT OF TOTAL RETURNS (QTR-ON-QTR) 1QFY12/13 4QFY11/12  / () (S$’000) (S$’000) Gross revenue 66,864 66,292 0.9% Property operating expenses (18,520) (20,316) (8.8%) Net Property Income 48,344 45,976 5.2% Interest on borrowings (6,994) (6,652) 5.1% Trust expenses (5,557) (5,546) 0.2% Net incom

  29. Slide 29: Healthy Balance Sheet

    HEALTHY BALANCE SHEET 30 Jun 2012 31 Mar 2012 Total Assets (S$‟000) 2,824,565 2,822,205 Total Liabilities (S$‟000) 1,169,919 1,167,669 Net Assets Attributable to Unitholders (S$’000) 1,654,646 1,654,536 Net Asset Value per Unit (S$) 1.02 1.02 Aggregate Leverage Ratio (%) 37.7 37.8 Interest Coverage

  30. Slide 30: Robust Capital Structure

    ROBUST CAPITAL STRUCTURE 400 As at 30 June 2012 350 S$1,069.2 Total Debt million Gross Debt (S$ million) 300 Fixed as a % of Total 85% 250 Debt Weighted Average All-in 200 2.5% Funding Cost 344 150 Weighted Average Tenor 2.7 years of Debt 251 100 Assets Unencumbered 100% as % of Total Assets 126 139

  31. Slide 31: Strategy & Outlook

    Strategy & Outlook

  32. Slide 32: To Deliver Sustainable Growth in DPU

    TO DELIVER SUSTAINABLE GROWTH IN DPU ACTIVE  Proactive leasing and marketing initiatives  Deliver quality service and customised solutions ASSET  Improve operational efficiency to reduce operating cost MANAGEMENT  Implement asset enhancement initiatives  Identify and source acquisition and deve

  33. Slide 33: Industrial Property Market Dynamics

    INDUSTRIAL PROPERTY MARKET DYNAMICS DEMAND AND OCCUPANCY FOR FLATTED FACTORIES DEMAND AND OCCUPANCY FOR BUSINESS PARKS ('000 sq m) ('000 sq m) 350 100.0% 160 100% 90.0% 140 90% 300 120 80% 80.0% 250 70% 70.0% 100 200 60% 60.0% 80 150 50% 50.0% 60 40% 100 40.0% 40 30% 50 30.0% 20 20% 0 20.0% 0 10% 1Q

  34. Slide 34: Market Outlook

    MARKET OUTLOOK  The economy contracted by 0.7% for the quarter ended 30 June 2012 on a quarter-on-quarter seasonally-adjusted annualised basis, as compared to 9.5% expansion in the previous quarter1  Due to a 0.5% quarter-on-quarter decline in manufacturing sector  Average rents for industrial re

  35. Slide 35: Strong Start to FY12/13

    STRONG START TO FY12/13  Stable Portfolio occupancy of 94.9% RESILIENT AND  Strong earnings visibility with only 13.0% ROBUST PORTFOLIO of Portfolio leases due for renewal  Continued focus on organic growth through positive rental revisions  Sufficient facilities for refinancing due in FINANCIAL

  36. Slide 36: Thank You

    Thank You Investor Relations Contact Ms Melissa Tan Senior Manager, Investor Relations DID: +65 6377 6113 Email: melissa.tanhl@mapletree.com.sg

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