Mapletree Industrial Trust · SGX:ME8U

Mapletree Industrial Trust — Q4 2023 Earnings Presentation

31 slides from Mapletree Industrial Trust's earnings presentation, Apr 27, 2023

  1. Slide 1: 4Q & FY22/23 Financial Results

    4Q & FY22/23 Financial Results 27 April 2023

  2. Slide 2: Important Notice

    Important Notice This presentation shall be read in conjunction with Mapletree Industrial Trust’s (“MIT”) financial results for Fourth Quarter Financial Year 2022/2023 in the SGXNET announcement dated 27 April 2023. This presentation is for information only and does not constitute an offer or solici

  3. Slide 3: Contents

    Contents 01 Key Highlights – 1 Apr 2022 to 31 Mar 2023 02 4Q & FY22/23 Financial Performance 03 Portfolio Update 04 Investment Update 05 Outlook and Strategy 3

  4. Slide 4: Key Highlights 1 Apr 2022 to 31 Mar 2023

    KEY HIGHLIGHTS 1 APR 2022 TO 31 MAR 2023 Data Centres, 13831 Katy Freeway, Houston

  5. Slide 5: Key Highlights

    Key Highlights  Higher Net Property Income driven by contribution from the acquisition of 29 data centres in the United States, offset by higher borrowing costs • FY22/23 Net Property Income: S$518.0 million ( 9.7% y-o-y) • FY22/23 Distributable Income: S$356.6 million ( 1.6% y-o-y) • FY22/23 DPU:

  6. Slide 6: Sustainable and Growing Returns

    Sustainable and Growing Returns Distributable Income DPU (S$ million) (cents) 3.47 3.493.49 3.49 100 3.283.30 3.35 3.39 3.36 3.33 3.50 3.13 3.16 92.1 3.10 3.10 90.3 88.4 89.5 90 88.4 89.0 87.2 2.852.87 81.1 82.7 3.00 80 72.9 70.6 70.7 69.469.2 70 2.50 63.263.5 60 2.00 50 1.50 40 30 1.00 20 0.50 10 0

  7. Slide 7: 4Q & FY22/23 Financial Performance

    4Q & FY22/23 FINANCIAL PERFORMANCE Hi-Tech Buildings, build-to-suit project for HP

  8. Slide 8: Statement of Profit or Loss (Year-on-Year)

    Statement of Profit or Loss (Year-on-Year) 4QFY22/23 4QFY21/22  / () (S$’000) (S$’000) Gross revenue 171,099 164,092 4.3% Property operating expenses (42,183) (39,885) 5.8% Net property income 128,916 124,207 3.8% Borrowing costs (27,822) (18,979) 46.6% Trust expenses1 (16,916) (20,913) (19.1%) Ne

  9. Slide 9: Statement of Profit or Loss (Year-on-Year)

    Statement of Profit or Loss (Year-on-Year) FY22/23 FY21/22  / () (S$’000) (S$’000) Gross revenue 684,865 610,063 12.3% Property operating expenses (166,914) (138,082) 20.9% Net property income 517,951 471,981 9.7% Borrowing costs (97,599) (70,857) 37.7% Trust expenses1 (66,331) (57,868) 14.6% Gain

  10. Slide 10: Statement of Profit or Loss (Qtr-on-Qtr)

    Statement of Profit or Loss (Qtr-on-Qtr) 4QFY22/23 3QFY22/23  / () (S$’000) (S$’000) Gross revenue 171,099 170,449 0.4% Property operating expenses (42,183) (41,642) 1.3% Net property income 128,916 128,807 0.1% Borrowing costs (27,822) (26,060) 6.8% Trust expenses1 (16,916) (16,359) 3.4% Net fair

  11. Slide 11: Statement of Financial Position

    Statement of Financial Position 31 Mar 2023 31 Dec 2022  / () 31 Mar 2022  / () Total assets (S$’000) 8,546,802 8,619,961 (0.8%) 8,479,971 0.8% Total liabilities (S$’000) 3,170,867 3,148,673 0.7% 3,201,113 (0.9%) Net assets attributable to 5,074,133 5,171,816 (1.9%) 4,977,056 2.0% Unitholders (S

  12. Slide 12: Portfolio Valuation

    Portfolio Valuation Valuation as at 31 Mar 2023 Valuation as at Property segment Local currency 31 Mar 2022 Capitalisation rate S$ million1 (S$ million)2 (million) Data Centres (Singapore) S$283.7 283.7 282.0 6.00% to 6.50% Hi-Tech Buildings S$1,510.3 1,510.3 1,415.0 5.25% to 6.75% Business Park Bui

  13. Slide 13: Strong Balance Sheet

    Strong Balance Sheet 31 Mar 2023 31 Dec 2022 DEBT CURRENCY PROFILE As at 31 March 2023 Total debt S$2,848.4 million S$2,854.6 million Weighted average 19.9% 3.7 years 3.1 years tenor of debt Aggregate leverage 37.4% 37.2% ratio1 Strong balance sheet to pursue growth opportunities  ‘BBB+’ rating wit

  14. Slide 14: Well Diversified Debt Maturity Profile

    Well Diversified Debt Maturity Profile DEBT MATURITY PROFILE As at 31 March 2023 29.3% 25.0% 21.0% 14.2% 835.6 538.4 710.7 6.1% 278.7 4.4% 175.0 125.0 125.0 60.0 FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 MTN Bank Loans Amounts in S$ million Weighted Average Tenor of Debt = 3.7 years 14

  15. Slide 15: Risk Management

    Risk Management 31 Mar 2023 31 Dec 2022 Fixed as a % of total debt 75.5% 74.3% Weighted average hedge tenor 3.5 years 3.8 years Weighted average all-in funding 3.5% 3.3% cost for the quarter Interest coverage ratio (“ICR”) 4.5 times 4.8 times for the quarter ICR for the trailing 12 months1 5.0 times

  16. Slide 16: Portfolio Update

    PORTFOLIO UPDATE Business Park Buildings, The Strategy and The Synergy

  17. Slide 17: 141 Properties Across 6 Property Segments

    141 Properties Across 6 Property Segments S$8.8 billion1 24.8 million2 >2,000 tenants AUM NLA (sq ft) Tenant Base Light Industrial Buildings Stack-up/Ramp-up 0.6% Data Centres: 53.7% Buildings North America: 50.3% 5.8% Singapore: 3.4% Flatted Factories 16.4% Data Centres Flatted Factories AUM1 Bus

  18. Slide 18: Portfolio Overview

    Portfolio Overview Singapore North American Overall Portfolio Portfolio Portfolio Number of properties 85 56 141 NLA (million sq ft) 16.5 8.31 24.81 Occupancy (%) 4QFY22/23 95.4 93.7 94.92 3QFY22/23 96.9 93.1 95.72 SEGMENTAL OCCUPANCY RATES1 2 2 93.8% 94.3% 94.8% 98.0% 98.4% 99.4% 99.4% 97.5% 97.1%

  19. Slide 19: Lease Expiry Profile

    Lease Expiry Profile EXPIRING LEASES BY GROSS RENTAL INCOME1 As at 31 March 2023 WALE based on date of commencement of leases (years)2 North American Portfolio 5.6 Singapore Portfolio 2.9 Overall Portfolio1 3.9 28.1% 16.1% 16.0% 17.3% 13.5% 9.0% FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 & Beyo

  20. Slide 20: Large and Diversified Tenant Base

    Large and Diversified Tenant Base TOP 10 TENANTS BY GROSS RENTAL INCOME1 As at 31 March 2023  Over 2,000 tenants 5.9%  Largest tenant contributes 5.9% of Portfolio’s Gross Rental Income 5.4%  Top 10 tenants forms about 29.5% of Portfolio’s Gross Rental Income Hi-Tech Buildings Data Centres 3.2% 3

  21. Slide 21: Tenant Diversification Across Trade Sectors

    Tenant Diversification Across Trade Sectors1 No single trade sector accounted >18% of Portfolio’s Gross Rental Income By Gross Rental Income As at 31 Mar 2023 1 Based on MIT’s 50% interest of the joint venture with MIPL in three fully fitted hyperscale data centres and 10 powered shell data centres

  22. Slide 22: Singapore Portfolio Performance

    Singapore Portfolio Performance Occupancy Gross Rental Rate S$ psf/mth 100% 96.8%96.9% $2.50 96.0% 95.4% 94.4% 93.6%93.7% 92.9%93.4% 92.2% 91.5% 90.5%90.2%90.5%90.7%90.2% 90% $2.12 $2.13 $2.13 $2.13 $2.13 $2.11 $2.10 $2.10 80% $2.13 $2.15 $2.15 $2.16 $2.11 $2.08 $2.03 $2.05 $2.00 70% 60% 50% $1.50 4

  23. Slide 23: Rental Revisions (Singapore)

    Rental Revisions (Singapore) GROSS RENTAL RATE (S$ PSF/MTH)1 For Period 4QFY22/23 Before Renewal $4.30 $3.94 After Renewal $3.82 $3.71 $3.76 New Leases $3.63 Passing Rent $3.27 $2.34 $2.01 $1.89 $1.85 $1.54 $1.79 $1.32 $1.37 $1.43 $1.31 Hi-Tech Buildings Business Park Buildings Flatted Factories Sta

  24. Slide 24: Healthy Tenant Retention (Singapore)

    Healthy Tenant Retention (Singapore) LONG STAYING TENANTS RETENTION RATE FOR 4QFY22/23 Up to 1 yr 9.6% >10 yrs 95.1% 95.0% 93.2% 33.1% 88.0% >1 to 2 yrs 80.7% 11.9% 4 yrs or less More than 36.1% > 2 to 3 yrs 4 yrs 7.8% 63.9% >3 to 4 yrs 6.8% N.A. 0.0% Data Hi-Tech Business Flatted Stack-up / Light S

  25. Slide 25: Sustainability Updates

    Sustainability Updates GREENING THE ENVIRONMENT Adopt Nature-Based Solutions Accelerate Use of Renewable Energy Over 10,000 shrubs and Solar Panel Installation (Phase 2) 296 trees to be planted at Mapletree Generating capacity of about Hi-Tech Park @ Kallang Way 4,000 kWp Tree planting initiative at

  26. Slide 26: Investment Update

    INVESTMENT UPDATE Data Centres, 44490 Chilum Place, Ashburn

  27. Slide 27: Redevelopment – Mapletree Hi-Tech Park @ Kallang Way

    Redevelopment – Mapletree Hi-Tech Park @ Kallang Way 161, 163 & 165 Kallang Way GFA Plot Ratio Kolam Ayer 2 Cluster Two Flatted Factories and an amenity centre 506,720 sq ft 1.5 New Hi-Tech Buildings, including a After Redevelopment 865,600 sq ft 2.5 seven-storey BTS Facility for Anchor Tenant Maple

  28. Slide 28: Outlook and Strategy

    OUTLOOK AND Data Centres, 2601 West Broadway Road, Tempe STRATEGY

  29. Slide 29: Outlook

    Outlook Challenging operating environment in view of global uncertainties  2023 will be a challenging year with increased risk to global financial stability due to the banking crisis and geo-economic fragmentation. Increasing property operating expenses and borrowing costs continue to exert pressur

  30. Slide 30: Diversified and Resilient

    Diversified and Resilient  Anchored by large and diversified tenant base with low dependence Stable and on any single tenant or trade sector Resilient Portfolio  Focus on tenant retention to maintain a stable portfolio occupancy  Hedged borrowings of 75.5% and weighted average hedge tenor of Acti

  31. Slide 31: 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

Mapletree Industrial Trust — Q4 2023 Earnings Presentation on 6ix