Mapletree Industrial Trust · SGX:ME8U

Mapletree Industrial Trust — 1QFY15/16 Earnings Presentation

28 slides from Mapletree Industrial Trust's earnings presentation, Jul 21, 2015

  1. Slide 1: 1QFY15/16 Financial Results

    1QFY15/16 Financial Results 21 July 2015

  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 2015/2016 in the SGXNET announcement dated 21 July 2015. This presentation is for information only and does not constitute an offer or solicita

  3. Slide 3: Agenda

    Agenda 1 Key Highlights – 1 Apr 2015 to 30 Jun 2015 2 1QFY15/16 Financial Performance 3 Portfolio Update 4 Development Update 5 Outlook and Strategy 3

  4. Slide 4: Key Highlights 1 Apr 2015 to 30 Jun 2015

    KEY HIGHLIGHTS 1 APR 2015 TO 30 JUN 2015 Hi-Tech Building, Build-to-Suit Data Centre for Equinix

  5. Slide 5: Key Highlights

    Key Highlights  Robust results driven by year-on-year higher rental rates and occupancies, and contribution from build-to-suit (BTS) data centre for Equinix  1QFY15/16 Distributable Income: S$48.2 million ( 12.8% y-o-y)  1QFY15/16 DPU: 2.73 cents ( 8.8% y-o-y)  Stable operational performance  H

  6. Slide 6: Scorecard since IPO

    Scorecard since IPO Distributable Income DPU (cents) (S$ million) 60 3.00 2.73 2.67 2.65 2.60 2.51 2.51 2.51 2.43 2.47 48.2 50 2.37 2.50 2.26 2.29 2.32 45.4 46.0 46.7 2.22 2.16 2.05 42.2 42.6 42.8 1.93 1.98 40.2 41.1 40 38.9 2.00 35.8 36.9 37.5 37.7 35.2 1.52 31.6 30 28.3 29.0 1.50 22.3 20 1.00 10 0

  7. Slide 7: 1QFY15/16 Financial Performance

    1QFY15/16 FINANCIAL PERFORMANCE Flatted Factory, Kallang Basin 4 Cluster

  8. Slide 8: Statement of Total Returns (Year-on-Year)

    Statement of Total Returns (Year-on-Year) 1QFY15/16 1QFY14/15  / () (S$’000) (S$’000) Gross revenue 81,619 78,425 4.1% Property operating expenses (21,427) (21,755) (1.5%) Net property income 60,192 56,670 6.2% Interest on borrowings (6,445) (5,909) 9.1% Trust expenses (7,073) (6,579) 7.5% Total r

  9. Slide 9: Statement of Total Returns (Qtr-on-Qtr)

    Statement of Total Returns (Qtr-on-Qtr) 1QFY15/16 4QFY14/15  / () (S$’000) (S$’000) Gross revenue 81,619 79,408 2.8% Property operating expenses (21,427) (21,637) (1.0%) Net property income 60,192 57,771 4.2% Interest on borrowings (6,445) (6,185) 4.2% Trust expenses (7,073) (6,807) 3.9% Net incom

  10. Slide 10: Balance Sheet

    Balance Sheet 30 Jun 2015 31 Mar 2015  / () Total Assets (S$’000) 3,516,270 3,515,954 0.0%* Total Liabilities (S$’000) 1,184,567 1,203,771 (1.6%) Net Assets Attributable to 2,331,703 2,312,183 0.8% Unitholders (S$’000) Net Asset Value per Unit (S$) 1.32 1.32 - * Amount is less than 0.01%. 10

  11. Slide 11: Strong Balance Sheet

    Strong Balance Sheet 30 Jun 2015 31 Mar 2015 Strong balance sheet to pursue growth opportunities Total Debt S$1,060.5 million S$1,076.6 million Aggregate 30.0% 30.6%  Proceeds of S$21.1 million Leverage Ratio from DRP in 4QFY14/15 Fixed as a % of 88% 87% mainly used to repay loans Total Debt drawn

  12. Slide 12: Well Diversified Debt Maturity Profile

    Well Diversified Debt Maturity Profile DEBT MATURITY PROFILE  Completed refinancing due in FY15/16  Weighted average tenor of debt was 4.1 years 26.3% 17.4% 13.3% 13.5% 278.7 125.0 9.4% 8.8% 7.1% 141.3 142.6 100.0 4.2% 92.9 75.0 60.0 45.0 FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY2

  13. Slide 13: Distribution Details

    Distribution Details Distribution Period Distribution per Unit (cents) 1 Apr 2015 to 30 Jun 2015 2.73 Distribution Timetable Dates Last day of trading on “cum” basis 24 Jul 2015 (Fri), 5:00pm Ex-date 27 Jul 2015 (Mon), 9:00am Book closure date 29 Jul 2015 (Wed), 5:00pm Cash distribution payment date

  14. Slide 14: Portfolio Update

    PORTFOLIO UPDATE Hi-Tech Building, K&S Corporate Headquarters

  15. Slide 15: 84 Properties Across 5 Property Types

    84 Properties Across 5 Property Types Flatted Factories Hi-Tech Buildings Business Park Buildings Light Industrial Buildings 2.8% Flatted Factories Stack-up/Ramp-up 44.7% Buildings 12.9% Stack-up/Ramp-up Buildings Light Industrial Buildings  Total property assets of approx. S$3.4 billion Business P

  16. Slide 16: Resilient Portfolio Performance

    Resilient Portfolio Performance Gross Rental Rate Occupancy S$ psf/mth 100% 94.3% 94.5% 95.1% 95.0% 94.9% 95.0% 95.2% 95.4% 95.5% 93.2% 93.9% 93.5% 92.3% 92.5% 91.3% 91.5% 90.7% 90.8% 90.2% 90% $2.00 $1.84 $1.86 $1.82 $1.83 $1.75 $1.77 $1.71 $1.73 $1.68 $1.70 80% $1.59 $1.61 $1.54 $1.55 $1.56 $1.52

  17. Slide 17: Segmental Occupancy Levels

    Segmental Occupancy Levels 95.4% 96.5% 98.4% 100.0% 94.4% 93.5% 91.1% 89.2% 90.2% 85.7% 86.2% 80.4% Flatted Factories Hi-Tech Buildings Business Park Stack-Up/Ramp-Up Light Industrial MIT Buildings Buildings Buildings Portfolio Left Bar Right Bar (4QFY14/15) (1QFY15/16) 17

  18. Slide 18: Rental Revisions

    Rental Revisions Gross Rental Rate (S$ psf/mth)¹ Before Renewal $4.09 $4.03 After Renewal $4.00 New Leases Passing Rent $2.48 $1.92 $1.99 $1.86 $2.14 $2.18 $1.512 $1.22 $1.15 Flatted Factories Hi-Tech Buildings Business Park Buildings Stack-Up/Ramp-Up Buildings Renewal 44 Leases 10 Leases 6 Leases 3

  19. Slide 19: Tenant Retention

    Tenant Retention LONG STAYING TENANTS RETENTION RATE FOR 1QFY15/16 >1 yr >10 yrs 94.8% 8.5% 15.0% >1 to 2 yrs 13.4% 65.6% 59.6% 61.5% 4 yrs or More than less, 4 yrs, 41.9% 35.7% > 2 to 3 yrs 58.1% 11.0% N.A. >5 to 10 yrs >3 to 4 yrs Flatted Hi-Tech Business Stack-Up / Light Portfolio 31.0% 9.0% Fact

  20. Slide 20: Lease Expiry Profile

    Lease Expiry Profile EXPIRING LEASES BY GROSS RENTAL INCOME (%) 32.0% 23.5% 18.8% 15.9% 9.8% 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 Income = 3.

  21. Slide 21: Large and Diversified Tenant Base

    Large and Diversified Tenant Base TOP 10 TENANTS (BY GROSS RENTAL INCOME)  Over 2,000 tenants 3.2%  Largest tenant contributes <4% of Portfolio’s Gross Rental Income  Top 10 tenants forms only 17.1% of Portfolio’s Gross Rental Income 2.6% 2.2% 1.8% 1.6% 1.3% 1.3% 1.2% 1.1% 0.8% As at 30 Jun 2015

  22. Slide 22: Tenant Diversification Across Trade Sectors

    Tenant Diversification Across Trade Sectors No single trade sector accounted >16% of Portfolio’s Gross Rental Income By Gross Rental Income As at 30 Jun 2015 22

  23. Slide 23: Development Update

    DEVELOPMENT UPDATE Hi-Tech Building, Woodlands Central Cluster

  24. Slide 24: BTS – Hewlett-Packard

    BTS – Hewlett-Packard Property GFA Plot Ratio Two 7-storey Flatted Before 437,300 sq ft 1.3 Factories and a canteen After Two Hi-Tech Buildings 824,500 sq ft 2.5 Redevelopment Phase 1: Superstructure works in progress Phase 2: Completed demolition works Artist’s impression of completed development 

  25. Slide 25: Outlook and Strategy

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

  26. Slide 26: Market Outlook

    Market Outlook  The economy grew by 1.7% year-on-year in the quarter ended 30 Jun 2015, lower than the 2.8% growth in preceding quarter¹  Average rents for industrial real estate for 1QFY15/16²  Multi-user Factory Space: S$1.90 psf/mth (-2.6% q-o-q)  Business Park Space: S$4.17 psf/mth (+4.3% q-

  27. Slide 27: Positioned for Growth

    Positioned for Growth  Achieved higher  Completed  BTS development average portfolio refinancing due in for Hewlett- occupancy of FY15/16 Packard on track 93.5% and portfolio for completion in passing rental rate  Application of DRP 1H2017 of S$1.86 psf/mth for 1QFY15/16 distribution to  Limite

  28. Slide 28: 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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