Mapletree Industrial Trust · SGX:ME8U
Mapletree Industrial Trust — Shareholder Meeting (August 2020)
33 slides from Mapletree Industrial Trust's shareholder meeting presentation, Aug 27, 2020
Slide 1: Extraordinary General Meeting: Proposed Acquisition of Remaining 60.0% Interest in 14 Data Centres
Extraordinary General Meeting Proposed Acquisition of the Remaining 60.0% Interest in 14 Data Centres Located in the United States of America 27 August 2020
Slide 2: Important Notice
Important Notice NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA (“U.S.”), EUROPEAN ECONOMIC AREA, UNITED KINGDOM, CANADA, JAPAN OR AUSTRALIA This presentation should be read in conjunction with the circular released by Mapletree Industrial Trust
Slide 3: Notice of Extraordinary General Meeting
Notice of Extraordinary General Meeting 3
Slide 4: Table of Contents
Table of Contents 1 Overview 5 2 Rationale for and Benefits of the Proposed Acquisition 8 3 Funding Structure 20 4 Conclusion 22 5 EGM Resolution 24 4
Slide 5: Overview
OVERVIEW 7337 Trade Street, San Diego
Slide 6: Overview of the Proposed Acquisition
Overview of the Proposed Acquisition Acquisition of the remaining 60.0% interest in the 14 data centres located in the U.S. Proposed Acquisition (the “Properties” or the “MRDCT Portfolio”), which are currently held by Mapletree Redwood Data Centre Trust (“MRDCT”) Purchase US$210.9 million (approxima
Slide 7: Consolidation of Good Quality Portfolio of Data Centres
Consolidation of Good Quality Portfolio of Data Centres Agreed Value Total Net Lettable Weighted Average Weighted Average Unexpired Occupancy Area (“NLA”) Lease to Expiry Lease Term of Underlying Rate (“WALE”) Land US$823.3m1 2.3m sq ft2 4.6 years3 100.0% Freehold4 97.4%5 Wisconsin Wisconsin 1 N15W2
Slide 8: Rationale for and Benefits of the Proposed Acquisition
RATIONALE FOR AND BENEFITS OF THE PROPOSED ACQUISITION 180 Peachtree, Atlanta
Slide 9: Rationale for and Benefits of the Proposed Acquisition
Rationale for and Benefits of the Proposed Acquisition Increases MIT’s Exposure to the Resilient Data Centres 1 Segment 2 Enhances Income Stability of the Enlarged Portfolio 3 DPU and NAV Accretive to MIT’s Unitholders 4 Strong Support from the Sponsor 9
Slide 10: Increases MIT's Exposure to the Resilient Data Centres Segment
Increases MIT’s Exposure to the Resilient 1 Data Centres Segment Aligns with the Manager's long-term strategy Increases MIT's exposure to data centres from 31.6%1 to 39.0%2 • Increases MIT's exposure to North American data centres from 24.4%1 to 32.5%2 Increases MIT’s exposure to Hi-Tech Buildin
Slide 11: Increases exposure to a resilient asset class with growth opportunities
Increases MIT’s Exposure to the Resilient 1 Data Centres Segment Increases exposure to a resilient asset class with growth opportunities Global Insourced and Outsourced Data Centre Space1 The COVID-19 crisis has provided favourable Net operational sq ft (million) tailwinds for the data centres seg
Slide 12: Increases exposure to the U.S., the world's largest data centre market
Increases MIT’s Exposure to the Resilient 1 Data Centres Segment Increases exposure to the U.S., the world’s largest data centre market U.S. accounts for 28%1 of the Growth in demand for U.S. data centre space is driven by: global data centre space Explosive growth of data and cloud computing as
Slide 13: Enhances Income Stability: Core-and-Shell Triple Net Leases
2 Enhances Income Stability of the Enlarged Portfolio Primarily leased on core-and-shell basis with triple net leases and minimal expenditure commitments 81.6%1 of the MRDCT Portfolio comprises powered shell data centres All tenants are on triple net lease structures whereby all outgoings2 are b
Slide 14: Positions MIT for the digital economy
2 Enhances Income Stability of the Enlarged Portfolio Positions MIT for the digital economy MRDCT Portfolio’s robust tenant base includes Fortune Global 500 companies and NYSE-listed/Nasdaq- listed companies that operate in a diverse range of industries The top five tenants are companies that ar
Slide 15: Improves MIT's overall lease expiry profile
2 Enhances Income Stability of the Enlarged Portfolio Enhances income stability by improving MIT’s overall lease expiry profile Lease expiries in FY23/24 and beyond will increase from 45.6%1 to 48.8%2 Pre-Acquisition: Lease Expiry Profile1 Post-Acquisition: Lease Expiry Profile2 By GRI as at 31 Ma
Slide 16: Increases freehold component of MIT's overall portfolio
2 Enhances Income Stability of the Enlarged Portfolio Increases freehold component of MIT’s overall portfolio Freehold properties (by land area) will increase from 37.9%1 to 51.8%2 of the enlarged portfolio Remaining Years to Expiry on Underlying Land Leases By land area as at 31 March 2020 WALE o
Slide 17: DPU and NAV Accretive to MIT's Unitholders
3 DPU and NAV Accretive to MIT’s Unitholders DPU and NAV Accretive to MIT’s Unitholders Distribution per Unit of MIT (“DPU”) NAV per Unit Pro forma FY19/20 DPU Pro forma NAV per Unit (Cents) (S$) 1.69 12.24 12.57 1.62 FY19/20 DPU Pro forma FY19/20 DPU1,2,3 NAV as at Pro forma NAV as at 31 March 2020
Slide 18: Strong Support from the Sponsor with Aligned Interest
4 Strong Support from the Sponsor Strong Support from the Sponsor with Aligned Interest Leading real estate development, investment, capital and property management company As at 31 March 2020, the Sponsor owns and manages S$60.5 billion worth of properties across Asia Pacific, Europe, the Unite
Slide 19: MRDCT is acquired at an attractive valuation from MIPL
4 Strong Support from the Sponsor MRDCT is acquired at an attractive valuation from MIPL The Agreed Value is US$823.3 million (approximately S$1,169.1 million)1, which is 0.7% lower than the independent valuation by Newmark Knight Frank Valuation & Advisory, LLC (“NKF”) as at 31 May 2020 and in li
Slide 20: Funding Structure
FUNDING STRUCTURE 402 Franklin Road, Brentwood
Slide 21: Pro Forma Financing
Pro Forma Financing Acquisition to be fully funded by equity Raised S$410.0 million1 (approximately US$288.7 million) from an equity fund raising Acquisition Fee Units: ~US$4.9 million2 (approximately S$7.0 million) Excess proceeds will be used towards debt repayment, future acquisitions and/o
Slide 22: Conclusion
CONCLUSION 2000 Kubach Road, Philadelphia
Slide 23: Conclusion
Conclusion Aligns with MIT’s Long-term Strategy 1 Increases exposure to a resilient asset class with strong growth profile Consolidates presence in top data centre markets in North America Positions MIT for the Digital Economy Increases exposure to North American data centres to approximately
Slide 24: EGM Resolution
EGM RESOLUTION 1001 Windward Concourse, Alpharetta
Slide 25: Summary of Approval Required
Summary of Approval Required Ernst & Young Corporate Finance Pte Ltd1 (the “IFA”) is of the opinion that Proposed Acquisition is based on normal commercial terms and is not prejudicial to the interests of MIT and its minority unitholders The IFA is of the opinion that the Independent Directors and t
Slide 26: End of Presentation
End of Presentation For enquiries, please contact Ms Melissa Tan, Director, Investor Relations, DID: (65) 6377 6113, Email: melissa.tanhl@mapletree.com.sg
Slide 27: Appendix
APPENDIX N15W24250 Riverwood Drive, Pewaukee
Slide 28: Post-Acquisition Structure
Post-Acquisition Structure 100.0% 100.0% 100.0% 100.0% Etowah DC (US) Redwood DC (US) Hudson DC (US) MRDCT Assets Pte. Ltd. Assets Pte. Ltd. Assets Pte. Ltd. 100.0% 39.0% 61.0% Singapore Holding Companies 100.0% Singapore U.S. Navarro DC Assets Etowah DC Assets Redwood DC Assets LLC1 LLC2 LLC3 1 Hol
Slide 29: Details of the MRDCT Portfolio (1)
Details of the MRDCT Portfolio (1) 7337 Trade Street, 180 Peachtree, 402 Franklin Road, San Diego1 Atlanta2 Brentwood1 7337 Trade Street, 180 Peachtree, 402 Franklin Road, Location San Diego Atlanta Brentwood Land area (sq ft) 734,522 135,106 1,888,833 NLA (sq ft) 499,402 357,4413 347,515 Occupancy4
Slide 30: Details of the MRDCT Portfolio (2)
Details of the MRDCT Portfolio (2) 2000 Kubach Road, 1001 Windward Concourse, N15W24250 Riverwood Drive, Philadelphia1 Alpharetta2 Pewaukee2 2000 Kubach Road, 1001 Windward Concourse, N15W24250 Riverwood Drive, Location Philadelphia Alpharetta Pewaukee Land area (sq ft) 1,115,187 892,446 598,799 NLA
Slide 31: Details of the MRDCT Portfolio (3)
Details of the MRDCT Portfolio (3) 3300 Essex Drive, 5000 Bowen, 1805 Center Park Drive, Richardson1 Arlington1 Charlotte1 3300 Essex Drive, 5000 Bowen, 1805 Center Park Drive, Location Richardson Arlington Charlotte Land area (sq ft) 66,265 1,221,132 295,772 NLA (sq ft) 20,000 90,689 60,850 Occupan
Slide 32: Details of the MRDCT Portfolio (4)
Details of the MRDCT Portfolio (4) 1221 Coit Road, 5150 McCrimmon Parkway, 2 Christie Heights, Plano1 Morrisville1 Leonia1 1221 Coit Road, 5150 McCrimmon Parkway, 2 Christie Heights, Location Plano Morrisville Leonia Land area (sq ft) 316,061 533,174 146,317 NLA (sq ft) 128,753 143,770 67,000 Occupa
Slide 33: Details of the MRDCT Portfolio (5)
Details of the MRDCT Portfolio (5) 2775 Northwoods Parkway, 19675 W Ten Mile Road, Atlanta1 Southfield1 2775 Northwoods Parkway, 19675 W Ten Mile Road, Location Atlanta Southfield Land area (sq ft) 140,341 121,122 NLA (sq ft) 32,740 52,940 Occupancy2 100.0% 74.3% Tenants IT Solutions Provider3 Level
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