Mapletree Industrial Trust · SGX:ME8U

Mapletree Industrial Trust — Investor Presentation (March 2017)

37 slides from Mapletree Industrial Trust's investor presentation, Mar 8, 2017

  1. Slide 1: Investor Presentation March 2017

    Investor Presentation March 2017

  2. Slide 2: Important Notice

    Important Notice This presentation shall be read in conjunction with Mapletree Industrial Trust’s (“MIT”) financial results for Third Quarter Financial Year 2016/2017 in the SGXNET announcement dated 24 January 2017. This presentation is for information only and does not constitute an offer or solic

  3. Slide 3: Contents

    Contents 1 Overview of Mapletree Industrial Trust 2 Portfolio Highlights 3 3QFY16/17 Financial Performance 4 Outlook and Strategy 3

  4. Slide 4: Overview of Mapletree Industrial Trust

    OVERVIEW OF MAPLETREE INDUSTRIAL TRUST Flatted Factory, Kolam Ayer 1

  5. Slide 5: Overview of Mapletree Industrial Trust

    Overview of Mapletree Industrial Trust Mapletree Investments Pte Ltd Public & Inst MIPL Unitholders Sponsor (“MIPL”) 65.8% 34.2% Owns 34.2% of MIT Trustee Focused on industrial real estate Manager Investment assets in Singapore, excluding mandate properties primarily used for logistics purposes MIT

  6. Slide 6: Broad Spectrum of Industrial Facilities

    Broad Spectrum of Industrial Facilities FLATTED FACTORIES STACK-UP/RAMP-UP BUILDINGS High-rise multi-tenanted industrial buildings with basic common facilities used for light Stacked-up factory space with vehicular manufacturing activities. access to upper floors. Multi-tenanted space suitable for m

  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 7

  8. Slide 8: Sustainable and Growing Returns

    Sustainable and Growing Returns Distributable Income DPU (S$ million) (cents) 60 2.85 2.83 2.83 3.00 2.79 2.82 2.81 2.73 2.67 2.65 2.60 2.51 2.51 2.51 51.5 50.6 51.1 2.43 2.47 50.3 50.4 50 2.37 48.2 48.9 2.50 2.29 2.32 46.7 2.22 2.26 45.4 46.0 2.16 2.05 42.2 42.6 42.8 1.93 1.98 40.2 41.1 40 38.9 2.0

  9. Slide 9: Healthy Returns since IPO

    Healthy Returns since IPO COMPARATIVE TRADING PERFORMANCE SINCE IPO¹ MIT’s Return on Capital Distribution Total Investment Appreciation Yield Return Listing on 21 Oct 2010 to 7 Mar 2017 79.6%² 65.7%³ 145.3%4 ¹ Rebased MIT’s issue price of S$0.93 and opening unit prices of FTSE ST REITs Index and FTS

  10. Slide 10: Industrial S-REITs

    Industrial S-REITs Market Capitalisation 21 Oct 2010 (IPO): S$1.36 billion 7 Mar 2017: S$3.0 billion 1 Size of bubble denotes market capitalisation. ² Excluded Sabana Shari’ah Compliant Industrial REIT and EC World REIT as their consensus estimates for DPU were not available from Bloomberg. ³ Source

  11. Slide 11: Portfolio Growth since IPO

    Portfolio Growth since IPO S$3.6 S$3.4 billion billion FY15/16 FY16/17 S$3.2 FY14/15 billion S$2.9 FY13/14 billion S$2.7 FY12/13 billion May 2014 Acquired Light FY11/12 S$2.21 Industrial billion Jul 2013 Building at Completed Changi North FY10/11 AEI at S$14 million Woodlands Jan 2015 Oct 2016 Centr

  12. Slide 12: Portfolio Highlights

    PORTFOLIO HIGHLIGHTS Hi-Tech Building, build-to-suit data centre for Equinix

  13. Slide 13: Portfolio Performance

    Portfolio Performance Gross Rental Rate Occupancy S$ psf/mth 100% 95.4% 95.5% 94.3% 94.5% 95.1% 95.0% 94.9% 95.0% 95.2% 93.9% 93.5% 93.8% 94.7% 94.6% 92.3% 93.2% 92.5% 91.3% 90.7% 91.5% 90.8% 93.0% 92.5% 92.1% 90.2% $1.92 $1.92 $1.93 $2.00 90% $1.88 $1.89 $1.90 $1.86 $1.82 $1.83 $1.84 $1.75 $1.77 $1

  14. Slide 14: Segmental Occupancy Levels

    Segmental Occupancy Levels 96.9% 93.0% 93.1% 94.2% 94.4% 92.5% 92.1% 92.2% 91.2% 87.7% 87.5% 87.3% Flatted Factories Hi-Tech Buildings Business Park Stack-Up/Ramp-Up Light Industrial MIT Buildings Buildings Buildings Portfolio Left Bar Right Bar (2QFY16/17) (3QFY16/17) 14

  15. Slide 15: Rental Revisions

    Rental Revisions¹ Gross Rental Rate (S$ psf/mth)² For period 3QFY16/17 $4.18 $4.18 Before Renewal $4.04 After Renewal New Leases $3.87 $2.95 Passing Rent $2.39 $1.95 $1.96 $1.75 $1.79 $1.71 $1.79 $1.15 $1.19 $1.16 $1.28 Flatted Factories Hi-Tech Buildings Business Park Buildings Stack-Up/Ramp-Up Bui

  16. Slide 16: Healthy Tenant Retention

    Healthy Tenant Retention LONG STAYING TENANTS RETENTION RATE FOR 3QFY16/17 Up to 1 yr >10 yrs 8.9% 19.6% >1 to 2 yrs 8.4% 82.3% 78.2% 75.5% 74.8% 4 yrs or 58.8% less > 2 to 3 yrs 35.8% 9.6% More than 4 yrs 64.2% >3 to 4 yrs 8.9% N.A. Flatted Hi-Tech Business Stack-Up / Light Portfolio >4 to 5 yrs Fa

  17. Slide 17: Lease Expiry Profile

    Lease Expiry Profile EXPIRING LEASES BY GROSS RENTAL INCOME As at 31 December 2016 31.0% 23.5% 22.1% 20.7% 2.7% FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 & Beyond Flatted Factories Hi-Tech Buildings Business Park Stack-up / Ramp-up Light Industrial Buildings Buildings Buildings Portfolio WALE by Gross

  18. Slide 18: Large and Diversified Tenant Base

    Large and Diversified Tenant Base TOP 10 TENANTS BY GROSS RENTAL INCOME As at 31 December 2016  Over 2,000 tenants  Largest tenant contributes ≤ 5.3% of Portfolio’s Gross Rental Income 5.3%  Top 10 tenants forms 20.9% of Portfolio’s Gross Rental Income 3.0% 2.5% 2.2%¹ 1.5% 1.5% 1.4% 1.3% 1.1% 1.1

  19. Slide 19: Tenant Diversification Across Trade Sectors

    Tenant Diversification Across Trade Sectors No single trade sector accounted >19% of Portfolio’s Gross Rental Income By Gross Rental Income As at 31 Dec 2016 19

  20. Slide 20: BTS – Hewlett-Packard

    BTS – Hewlett-Packard Estimated Cost S$226 million¹ GFA 824,500 sq ft Completion Phase 1: TOP on 21 Oct 2016 Artist’s impression of completed development Phase 2: By 2Q2017  100% committed by Hewlett-Packard for lease term of 10.5² + 5 + 5 years with annual rental escalations³  Increased the portf

  21. Slide 21: AEI – Kallang Basin Cluster

    AEI – Kallang Basin 4 Cluster Estimated Cost S$77 million Additional GFA 336,000 sq ft Completion 1Q2018 Artist’s impression of new Hi-Tech Building  Development of 14-storey Hi-Tech Building (at existing car park) and improvement works at existing buildings  Located at Kallang iPark, an upcoming

  22. Slide 22: New BTS Data Centre

    New BTS Data Centre  Announced the development of a six-storey BTS data centre on 5 Mar 2017  100% committed by an established data centre operator  Initial lease term of >10 years with staggered rental escalations and renewal options  Situated on land area of about 96,800 sq ft  Site allocated

  23. Slide 23: 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 real estate development, investment and capital management company 2. Alignment of Sponsor’s interest with Unith

  24. Slide 24: 3QFY16/17 Financial Performance

    3QFY16/17 FINANCIAL PERFORMANCE Business Park Buildings, The Strategy and The Synergy

  25. Slide 25: 3QFY16/17 Results Highlights

    3QFY16/17 Results Highlights  Y-o-Y growth driven by higher rental rates across all property segments and revenue contribution from Phase One of BTS development for Hewlett-Packard • 3QFY16/17 Distributable Income: S$51.1 million ( 1.6% y-o-y) • 3QFY16/17 DPU: 2.83 cents ( 0.4% y-o-y)  Portfolio u

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

    Statement of Total Returns (Year-on-Year) 3QFY16/17 3QFY15/16  / () (S$’000) (S$’000) Gross revenue 84,453 83,251 1.4% Property operating expenses (21,024) (21,372) (1.6%) Net property income 63,429 61,879 2.5% Interest on borrowings (6,948) (6,443) 7.8% Trust expenses (7,319) (7,203) 1.6% Total r

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

    Statement of Total Returns (Year-on-Year) YTD FY16/17 YTD FY15/16  / () (S$’000) (S$’000) Gross revenue 252,753 247,606 2.1% Property operating expenses (61,895) (64,508) (4.1%) Net property income 190,858 183,098 4.2% Interest on borrowings (20,062) (19,290) 4.0% Trust expenses (21,796) (21,504)

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

    Statement of Total Returns (Qtr-on-Qtr) 3QFY16/17 2QFY16/17  / () (S$’000) (S$’000) Gross revenue 84,453 84,208 0.3% Property operating expenses (21,024) (20,578) 2.2% Net property income 63,429 63,630 (0.3%) Interest on borrowings (6,948) (6,633) 4.7% Trust expenses (7,319) (7,290) 0.4% Total ret

  29. Slide 29: Balance Sheet

    Balance Sheet 31 Dec 2016 30 Sep 2016  / () Total assets (S$’000) 3,710,081 3,673,195 1.0% Total liabilities (S$’000) 1,245,463 1,213,248 2.7% Net assets attributable to 2,464,618 2,459,947 0.2% Unitholders (S$’000) Net asset value per Unit (S$) 1.37 1.37 - 29

  30. Slide 30: Strong Balance Sheet

    Strong Balance Sheet 31 Dec 2016 30 Sep 2016 Strong balance sheet to pursue growth opportunities Total Debt S$1,089.2 million S$1,064.0 million  ‘BBB+’ rating with Stable Aggregate Outlook by Fitch Ratings 29.4% 29.0% Leverage Ratio Weighted Average 3.2 years 3.5 years  100% of loans unsecured Ten

  31. Slide 31: Well-Diversified Debt Maturity Profile

    Well-Diversified Debt Maturity Profile DEBT MATURITY PROFILE As at 31 December 2016 Weighted Average Tenor of Debt = 3.2 years 29.0% 17.0% 17.0% 316.3 125.0 8.5% 9.2% 185.0 6.9% 5.5% 100.0 4.1% 2.8% 92.9 60.0 75.0 60.0 30.0 45.0 FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25

  32. Slide 32: Interest Rate Risk Management

    Interest Rate Risk Management 31 Dec 2016 30 Sep 2016  67.0% of debt is hedged for a weighted average term of Fixed as a % of 3.4 years 67.0% 68.6% Total Debt Weighted Average 3.4 years 3.7 years  S$150 million of hedges Hedge Tenor expiring in 4QFY16/17 have all been replaced 3QFY16/17 2QFY16/17

  33. Slide 33: Outlook and Strategy

    OUTLOOK AND STRATEGY Stack-up/Ramp-up Buildings, Woodlands Spectrum

  34. Slide 34: Singapore Industrial Market

    Singapore Industrial Market DEMAND AND SUPPLY FOR MULTI-USER FACTORIES DEMAND AND SUPPLY FOR BUSINESS PARKS ('000 sq m) Occupancy Rate (%) ('000 sq m) Occupancy Rate (%) 600 100 600 100 500 93.1% 95 500 95 400 90 400 90 87.3% 300 87.3% 85 300 85 83.0% 200 80 200 80 100 75 100 75 0 70 0 70 -100 65 -1

  35. Slide 35: Outlook

    Outlook  The economy expanded by 2.0% in 2016, similar to 1.9% growth in 2015. MTI expects Singapore economy to grow between 1.0% to 3.0% in 2017¹.  The business environment remains challenging given the global uncertainties and rising interest rates. The continued supply of competing industrial s

  36. Slide 36: Delivering Sustainable Returns

    Delivering Sustainable Returns SECURE investments to IMPROVE competitiveness deliver growth and of properties diversification Value-  Implement proactive  Pursue DPU-accretive Proactive marketing and leasing creating acquisitions and Asset initiatives Investment development projects Management Man

  37. Slide 37: 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

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