Manulife Us Reit · SGX:BTOU
Manulife Us Reit — Investor Day (November 2017)
26 slides from Manulife Us Reit's investor day presentation, Nov 28, 2017
Slide 1: Manulife US REIT Investor Day 2017
Manulife US REIT Investor Day 2017 28 November 2017
Slide 2: Important Notice
Important Notice This presentation is for information purposes only and does not constitute or form part of an offer, invitation or solicitation of any offer to purchase or subscribe for any securities of Manulife US REIT in Singapore or any other jurisdiction nor should it or any part of it form th
Slide 3: Contents
Contents 1 Overview and Key Highlights 2 Portfolio Performance 3 Financial Highlights 4 Media and Analyst Coverage 5 Moving Forward 3
Slide 4: Overview and Key Highlights
Peachtree,Jersey Exchange, Atlanta,City, Georgia New Jersey Overview and Key Highlights
Slide 5: Reputable Sponsor
Reputable Sponsor Proven Property Management Track Record Vertically-Integrated Real Estate Platform: Global Real Estate AUM of US$17.1b Vancouver Sponsor Calgary Kitchener/Waterloo Edmonton Toronto Canada Ottawa US$6.9B Montreal AUM AUM Halifax 72% of Real Estate in Office US$806B U.S. Asia US$8.4B
Slide 6: Key Milestones since IPO
Key Milestones since IPO 3Q 2016 FY 2016 1Q 2017 1H 2017 3Q 2017 Results Results Results Announced Results Announced Results maiden acquisition Listed on SGX on 7 Nov 2016 13 Feb 2017 2 May 2017 acquisition of 8 Aug 2017 of 3 Nov 2017 20 May 2016 DPU exceeded DPU exceeded DPU exceeded Plaza DPU exce
Slide 7: Market Cap Increased by 74.9% since IPO
Peachtree, Atlanta, Georgia Market Cap Increased by 74.9% since IPO Increase in Free Float Trading Liquidity Performance of Market Cap since IPO Performance of Share Price YTD2 125 US$908.0m2 Since 1 Jan 2017 (S$1,222.8 m)3 MUST4: + 15.4% Free Float S-REIT: + 15.9% 120 STI: + 18.7% Sponsor Stake 115
Slide 8: Portfolio Performance
Plaza, Secaucus, New Jersey Portfolio Performance
Slide 9: High Quality Freehold Class A/Trophy Assets
High Quality Freehold Class A/Trophy Assets Secaucus Jersey City Figueroa Plaza Exchange Los Angeles Irvine Atlanta Michelson Peachtree Figueroa Michelson Peachtree Plaza Exchange Current Portfolio NLA (sq ft)1 701,977 532,663 555,922 461,525 730,598 2,982,685 WALE (by NLA)1 5.1 years 4.6 years 5.7
Slide 10: Strategically Located in Key U.S. Cities
Strategically Located in Key U.S. Cities Portfolio Markets Progressing Steadily Rental Cycle, CBD U.S. Markets 1 Rental Cycle, Suburban U.S. Markets 1 (1) Source: JLL as at 3Q 2017. Retrieved from http://www.us.jll.com/united-states/en-us/research/office 10
Slide 11: Building a First Class Portfolio across the U.S.
Peachtree, Atlanta, Georgia Building a First Class Portfolio across the U.S. Figueroa, Los Angeles • No new Class A office space in past 23 years • Surrounded by entertainment venues such as Staples Center, the LA Convention Center and LA Live • Boom in residential development creates live, work, pl
Slide 12: Occupancy and WALE
Occupancy and WALE WALE of 5.8 years by NLA and Committed Occupancy of 96.3% Lease Expiry Profile of the Portfolio1,2 (%) 71.7% 68.8% 12.2% 9.4% 9.6% 9.2% 6.8% 7.1% 1.4% 1.4% 1.2% 1.2% 2017 2018 2019 2020 2021 2022 and beyond Cash Rental Income Net Lettable Area (1) As at 30 Sep 2017, assuming that
Slide 13: Diversified Tenant Base
Diversified Tenant Base IPO Portfolio Cash Rental Income by Trade Sector1 Current Portfolio Cash Rental Income by Trade Sector1 Business Services, 2.7% Administrative Engineers/Architec Others, 12.8% Services, 2.7% ts, 2.5% Advertising & Accounting Public Relations, Law Firms, 44.0% Services, 2.5% 3
Slide 14: Top 10 Tenants by Cash Rental Income (CRI)
Top 10 Tenants by Cash Rental Income (CRI) IPO Portfolio1 Current Portfolio1 Tenant1 Sector % of CRI1 Tenant1 Sector % of CRI1 Kilpatrick Law Firms 10.6% Kilpatrick Law Firms 6.8% TCW Financial Institutions 10.1% TCW Financial Institutions 6.4% Hyundai Capital Financial Institutions 8.9% Hyundai Cap
Slide 15: Office Market Overview
Office Market Overview Limited New Supply and Strong Rental Growth in 2017 New 12 Month RBA1 Gross Net Properties Vacancy1 Rent Property Delivery Market (mil sq Asking Absorption1 Under (%) Growth2 Name Year ft) Rent1 (‘000 sq ft) Construction (%) (‘000 sq ft) Downtown Los 40.0 14.0 US$42.34 290 5.0
Slide 16: Financial Highlights
Peachtree, Atlanta, Georgia Financial Highlights
Slide 17: 3Q 2017 Financial Highlights
3Q 2017 Financial Highlights Distribution per Unit Net Property Income Rental Reversion outperformed projection1 by 9.6% outperformed projection1 by 20.9% Positive rental reversion2 of 1.60 US cents US$14.4 million 12.2% Weighted Weighted Gearing Average Average Net Asset Interest Rate Debt Maturity
Slide 18: Media and Analysts Coverage
Michelson, Irvine, California Media and Analysts Coverage
Slide 19: High Media Coverage
High Media Coverage The Edge 15 Sep 2017 ST 4 Sep 2017 BT 21 Jun 2017 ST 13 Nov 2017 BT 4 Nov 2017 LHZB 4 Sep 2017 19
Slide 20: Analyst Coverage
Analyst Coverage Deutsche Bank Markets Research, 21 Nov 2017 DBS Group Research , 8 Aug 2017 RHB Research, 6 Nov 2017 20
Slide 21: Moving Forward
Figueroa, Los Angeles, California Moving Forward
Slide 22: Moving Forward
Moving Forward Long Term Strategy of Sustainable Growth Organic Inorganic Capital Growth Growth Management Increase distributions Grow through yield- Appropriate mix of debt through proactive leasing accretive acquisitions and equity optimising while maintaining optimal either from third party risk-
Slide 23: Thank You
Hudson River Thank You For enquiries, please contact: Ms Caroline Fong, Head of Investor Relations Direct: (65) 6801 1066 / Email: carol_fong@manulifeusreit.sg http://www.manulifeusreit.sg
Slide 24: Portfolio Overview
Portfolio Overview Figueroa Michelson Peachtree Plaza Exchange5 Location Los Angeles Irvine Atlanta Secaucus Jersey City Property Type Class A Trophy Class A Class A Class A Completion Date 1991 2007 1991 1985 1988 Last Refurbishment 2015 - 2015 2016 - Property Value 325.01 342.01 190.51 116.02 333.
Slide 25: YTD 2017 DPU Exceeded Projection by 8.5%
YTD 2017 DPU Exceeded Projection1 by 8.5% 3Q 2017 3Q 2017 3Q 2017 YTD 2017 YTD 2017 YTD 2017 Actual Projection1 Change Actual Projection1 Change (US$’000) (US$’000) (%) (US$’000) (US$’000) (%) Gross Revenue2 23,037 19,727 16.8 62,776 59,787 5.0 • Rental and Other Income 17,555 14,214 23.5 46,939 43,
Slide 26: Tax Efficient Structure of Manulife US REIT
Tax Efficient Structure of Manulife US REIT Sponsor Unitholders No 30%1 withholding tax on interest and principal on Manulife shareholder’s loan - US Portfolio Interest Exemption Rule 0% Tax Zero tax in Singapore - Foreign sourced income not subject to tax Distribution from US to Singapore through 1