Mapletree Industrial TrustSGX: ME8U

3QFY2024/2025 - Financial Statement and Related Announcement

Jan 22, 2025 at 11:53 AM UTC · Issued by Mapletree Industrial Trust

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(Constituted in the Republic of Singapore pursuant to a Trust Deed dated 29 January 2008 (as amended))

MAPLETREE INDUSTRIAL TRUST UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2024 TO 31 DECEMBER 2024 AND YEAR TO DATE FROM 1 APRIL 2024 TO 31 DECEMBER 2024

TABLE OF CONTENTS

Item No.	Description	Page No.

-	Summary Results of Mapletree Industrial Trust Group	2	- 3
-	Introduction		3
1.1	Consolidated Statement of Profit or Loss		4
1.2	Distribution Statement		5
1.3	Consolidated Statement of Comprehensive Income		6
1.4	Statements of Financial Position	7	- 8
1.5	Consolidated Statement of Cash Flows	9 - 10
1.6 (i)	Statements of Movements in Unitholders' Funds - MIT Group	11	- 12
1.6 (ii)	Statements of Movements in Unitholders' Funds - MIT	13
2	Notes to the Unaudited Condensed Interim Financial Statements	14 - 26
3.1	Review of Unaudited Condensed Interim Consolidated Financial	27
Statements

3.2	Review of Performance	27 - 30
3.3	Variance from Previous Forecast / Prospect Statement	30
3.4	Outlook and Prospects	31	- 32
3.5	Distributions	32	- 34
3.6	General Mandate relating to Interested Person Transactions	34
3.7	Confirmation pursuant to Rule 720(1) of the Listing Manual	34
3.8	Additional information required pursuant to Rule 706A of the Listing	35
Manual

3.9	Confirmation by the Board	35

Summary Results of Mapletree Industrial Trust Group1 ("MIT Group")

		3Q		2Q	Variance	3Q	Variance
		FY24/25		FY24/25	%	FY23/24	%
Gross revenue (S$'000)2		177,311		181,445	(2.3)	173,886	2.0

Net property income		133,238		134,511	(0.9)	129,855	2.6
(S$'000)2

Amount available for		99,860		98,818	1.1	97,665	2.2
distribution (S$'000)2

- to Perpetual securities		2,382		2,382	-	2,382	-
holders
	97,4783		96,4363		95,2834, 5
- to Unitholders			1.1	2.3
Distribution to Unitholders		97,1063		95,8293	1.3	95,2224, 5	2.0
(S$'000)

No. of units in issue ('000)		2,847,6698		2,843,5908	0.1	2,833,999	0.5

Distribution per unit (cents)		3.413		3.373	1.2	3.364, 5	1.5


		YTD		YTD	Variance
		FY24/25		FY23/24	%
Gross revenue (S$'000)2		534,035		518,632	3.0

Net property income		400,286		389,259	2.8
(S$'000)2

Amount available for		298,959		286,630	4.3
distribution (S$'000)2

- to Perpetual securities		7,120		7,120	-
holders
	291,8393		279,5104, 5
- to Unitholders			4.4
Distribution to Unitholders		290,1883		283,0364,5,6,7	2.5
(S$'000)

No. of units in issue ('000)		2,847,6698		2,833,999	0.5

Distribution per unit (cents)		10.213		10.074,5,6,7	1.4

** Less than 0.1%

Notes:

MIT Group comprises Mapletree Industrial Trust ("MIT") and its subsidiaries.
Gross revenue and net property income do not include MIT's interests in the North American joint venture with Mapletree Investments Pte Ltd ("MIPL"), which is equity accounted. Amount available for distribution includes distribution declared by the joint venture.
Includes the distribution of net divestment gain of S$13.4 million from 115A & 115B Commonwealth Drive (the
"Tanglin Halt Cluster") over four quarters from 1QFY24/25 to 4QFY24/25.
Includes the distribution of compensation received for compulsory acquisition of part of the land at 2 and 4 Loyang Lane of S$2.1 million withheld in 3QFY21/22 over two quarters from 2QFY23/24 to 3QFY23/24. Please refer to the Financial Statements and Distribution Announcement for the period from 1 October 2021 to 31 December 2021.

Summary Results of Mapletree Industrial Trust Group1 ("MIT Group") (continued)

Includes the distribution of net divestment gain of S$4.2 million from 65 Tech Park Crescent over two quarters from 2QFY23/24 to 3QFY23/24. 65 Tech Park Crescent was divested on 20 July 2017.
Includes the distribution of tax-exempt income of S$6.6 million withheld in 4QFY19/20 over three quarters from 3QFY22/23 to 1QFY23/24.
Includes the distribution of net divestment gain of S$15.7 million from 26A Ayer Rajah Crescent over eight quarters from 2QFY21/22 to 1QFY23/24.
Includes new units issued pursuant to the Distribution Reinvestment Plan ("DRP").

Introduction

MIT is a real estate investment trust listed on the Main Board of Singapore Exchange. The principal activity of MIT and its subsidiaries (the "Group") is to invest in income-producing real estate used primarily for industrial purposes in Singapore and as data centres worldwide beyond Singapore, as well as real estate-related assets, with the primary objective of achieving sustainable returns from rental income and long-term capital growth.

MIT's property portfolio includes Data Centres (Asia), Data Centres (North America), Hi-Tech Buildings, Business Park Buildings, Flatted Factories, Stack-up/Ramp-up Buildings and Light Industrial Buildings.

On 25 June 2024, the third phase of fitting-out works for the data centre located in Osaka, Japan ("Osaka Data Centre") was completed. The final phase of fitting-out works is expected to be completed in May 2025.

On 30 September 2024, the Group, through its subsidiary, Godo Kaisha ("GK") Hasu, a Japan GK, entered into a conditional trust beneficiary interest purchase and sale agreement (the "TBI PSA") to acquire a freehold mixed-use facility comprising a data centre, back office, training facilities and an adjacent accommodation wing located in Tokyo, Japan (the "Tokyo Acquisition"). The Tokyo Acquisition was completed on 29 October 2024.

As at 31 December 2024, MIT's total assets under management was S$9.2 billion, which comprised 56 properties in North America (including 13 data centres held through the joint venture with Mapletree Investments Pte Ltd), 83 properties in Singapore and two properties in Japan.

MIT's distribution policy is to distribute at least 90.0% of its taxable income, comprising substantially rental income from the letting of its properties and related property services income after deduction of allowable expenses, as well as interest income from the periodic placement of cash surpluses in bank deposits.

1.1 Consolidated Statement of Profit or Loss

		3Q	3Q		YTD	YTD
		FY24/25	FY23/24	Variance	FY24/25	FY23/24	Variance
		(S$'000)	(S$'000)	%	(S$'000)	(S$'000)	%
Gross revenue	177,311	173,886	2.0	534,035	518,632	3.0
Property operating	(44,073)	(44,031)	0.1	(133,749)	(129,373)	3.4
	expenses

Net property income	133,238	129,855	2.6	400,286	389,259	2.8
Interest income	448	696	(35.6)	1,253	2,357	(46.8)
Borrowing costs	(26,072)	(26,151)	(0.3)	(79,340)	(78,869)	0.6
Manager's management
	fees
-	Base fees	(10,115)	(10,697)	(5.4)	(30,671)	(31,447)	(2.5)
-	Performance fees	(4,850)	(4,704)	3.1	(14,442)	(14,117)	2.3
Trustee's fees	(266)	(271)	(1.8)	(792)	(788)	0.5
Other trust expenses	(1,625)	(1,128)	44.1	(4,319)	(3,939)	9.6
Other income1	-	-	-	2,628	-	**
Net foreign exchange	319	(1,298)	**	(1,658)	330	**
	gain/(loss)

Net change in fair value	(3,146)	1,313	**	(890)	(911)	(2.3)
	of financial derivatives2

Share of joint venture's	7,905	9,535	(17.1)	23,576	28,140	(16.2)
	results

Profit for the period	95,836	97,150	(1.4)	295,631	290,015	1.9
	before tax

Income tax expense	(520)	(1,794)	(71.0)	(4,187)	(7,195)	(41.8)
- Current income tax	54	(1,372)	**	(1,779)	(6,216)	(71.4)
	credit/(expense)

- Deferred tax	(574)	(422)	36.0	(2,408)	(979)	>100

Profit for the period	95,316	95,356	0.0	291,444	282,820	3.0
Attributable to:

Unitholders	92,874	92,930	(0.1)	284,178	275,669	3.1
Perpetual securities	2,382	2,382	-	7,120	7,120	-
	Holders3

Non-controlling interest4	60	44	36.4	146	31	>100.0
Profit for the period	95,316	95,356	0.0	291,444	282,820	3.0

** Not meaningful

Notes:

This other income relates to net compensation received in relation to a redevelopment project.
These reflect the fair value changes of the interest rate swaps and currency forwards. The Group enters into interest rate swaps and currency forwards to manage its exposure to interest rate risks and currency risks.
The perpetual securities have no fixed redemption date, with the redemption at the option of MIT on 11 May 2026 and each distribution payment date thereafter, and will bear an initial rate of distribution of 3.15% per annum for the first five years. Distributions are payable semi-annually at the discretion of MIT and will be non-cumulative.
This represents 1.53% effective interest in Yuri TMK.

1.2 Distribution Statement

	3Q	3Q		YTD	YTD
	FY24/25	FY23/24	Variance	FY24/25	FY23/24	Variance
	(S$'000)	(S$'000)	%	(S$'000)	(S$'000)	%
Profit for the period
attributable to	92,874	92,930	(0.1)	284,178	275,669	3.1
Unitholders
Adjustment for net effect
of non-tax	(2,406)	(5,897)	(59.2)	(13,846)	(17,899)	(22.6)
chargeable items and

other adjustments1
Distribution declared by	7,010	8,250	(15.0)	21,507	21,740	(1.1)
joint venture

Amount available for
distribution to	97,478	95,283	2.3	291,839	279,510	4.4
Unitholders

Note:

1. Non-tax chargeable items and other adjustments include share of joint venture's results, adjustments for rental incentives, income tax expense, management fees paid/payable in units, trustee's fees, financing related costs and other adjustments.

1.3 Consolidated Statement of Comprehensive Income

	3Q	3Q		YTD	YTD
	FY24/25	FY23/24	Variance	FY24/25	FY23/24	Variance
	(S$'000)	(S$'000)	%	(S$'000)	(S$'000)	%
Profit for the period	95,316	95,356	0.0	291,444	282,820	3.0
Other comprehensive
income/(loss):
Items that may be
reclassified
subsequently to
profit or loss:
Cash flow hedges:
- Fair value gain/(loss)	26,725	(35,828)	**	(5,621)	37,215	**
- Reclassification to	(13,192)	(17,515)	(24.7)	(45,819)	(51,022)	(10.2)
profit or loss

Share of hedging
reserve of joint	2,739	(16,005)	**	(15,910)	(14,367)	10.7
venture
Net translation
differences:
- financial statements	32,646	(29,155)	**	8,796	(18,521)	**
of foreign joint

venture and foreign
subsidiaries
- shareholder's loan	10,644	(7,019)	**	3,444	(2,049)	**
- borrowings
designated
as net investment	3,570	2,052	74.0	2,518	9,157	(72.5)
hedge of foreign
operations
Other comprehensive
profit/(loss), net of	63,132	(103,470)	**	(52,592)	(39,587)	32.9
tax for the period
Total comprehensive
income/(loss) for the	158,448	(8,114)	**	238,852	243,233	(1.8)
period
Attributable to:

Unitholders	156,006	(10,544)	**	231,685	236,241	(1.9)
Perpetual securities	2,382	2,382	-	7,120	7,120	-
holders

Non-controlling interest	60	48	25.0	47	(128)	**
Total comprehensive
158,448	(8,114)	**	238,852	243,233	(1.8)
income/(loss) for the
period

** Not meaningful

1.4 Statements of Financial Position

		MIT Group		MIT

		31	31	31		31
		December	March	December		March
		2024	2024	2024		2024
		(S$'000)	(S$'000)	(S$'000)		(S$'000)
Current assets
Cash and cash equivalents	127,673	119,902	24,742		25,398
Trade and other receivables	42,568	38,475	38,953		35,617
Other current assets	1,983	3,465	779		686
Derivative financial instruments1	3,738	1,895	386		1,895
Total current assets	175,962	163,737	64,860		63,596
Non-current assets
Investment properties	8,090,092	7,847,851	3,951,901		3,942,906
Plant and equipment	28	53	28		53
Investments in:
-	subsidiaries	-	-	1,333,479		1,204,849
-	a joint venture	530,827	540,329	394,377		394,377
Loans to subsidiaries2	-	-	603,413		606,969
Other non-current assets	3,532	3,606	-		-
Derivative financial instruments1	73,701	108,790	14,006		22,686
Total non-current assets	8,698,180	8,500,629	6,297,204		6,171,840
Total assets	8,874,142	8,664,366	6,362,064		6,235,436
Current liabilities
Trade and other payables	175,011	146,350	77,922		85,895
Borrowings	446,301	76,174	109,251		75,059
Derivative financial instruments1	1,642	570	1,642		570
Current income tax liabilities	1,884	1,839	-		-
Total current liabilities	624,838	224,933	188,815		161,524
Non-current liabilities
Other payables	58,624	63,001	51,429		53,887
Borrowings	2,822,156	3,002,464	515,623		414,505
Loans from a subsidiary	-	-	380,056		383,047
Derivative financial instruments1	71	20	71		20
Deferred tax liabilities3	107,370	85,216	-		-
Total non-current liabilities	2,988,221	3,150,701	947,179		851,459
Total liabilities	3,613,059	3,375,634	1,135,994		1,012,983
Net assets	5,261,083	5,288,732	5,226,070		5,222,453
Represented by:
Unitholders' funds	4,957,223	4,984,582	4,926,598		4,920,625
Perpetual securities	299,472	301,828	299,472		301,828
Non-controlling interests	4,388	2,322	-		-

		5,261,083	5,288,732	5,226,070		5,222,453
Net asset value per unit (S$)	1.74	1.76	1.73		1.74

1.4 Statements of Financial Position(continued)

Notes:

Derivative financial instruments reflect the fair value of interest rate swaps and currency forwards entered by the Group and MIT to manage interest rate risks and currency risks.
Includes MIT's loans to subsidiaries, which are intended to be a long-term source of funding for the respective entities.
Relates to deferred tax expense recognised on operations and investment properties from the wholly-owned North American portfolio in accordance with the accounting standards.

1.5 Consolidated Statement of Cash Flows

	3Q	3Q	YTD	YTD
	FY24/25	FY23/24	FY24/25	FY23/24
	(S$'000)	(S$'000)	(S$'000)	(S$'000)
Cash flows from operating
activities
Profit for the period	95,316	95,356	291,444	282,820
Adjustments for:
- Borrowing costs	26,072	26,151	79,340	78,869
- Income tax expense	520	1,794	4,187	7,195
- Manager's management fees	1,669	1,177	4,935	3,511
paid/payable in units

- Bad debts written off	97	66	649	75
- Net change in fair value of	3,146	(1,313)	890	911
financial derivatives

- Depreciation	8	13	25	39
- Interest income	(448)	(696)	(1,253)	(2,357)
- Net foreign exchange differences	(2,288)	(4,984)	(969)	(10,353)
- Write back for impairment of	(94)	(17)	(50)	(94)
trade receivables

- Amortisation of rental incentives	(2,819)	(888)	(8,294)	(5,731)
- Share of joint venture's results	(7,905)	(9,535)	(23,576)	(28,140)
Operating cash flows before	113,274	107,124	347,328	326,745
working capital changes

Changes in operating assets and
liabilities		1,3241		(40,692)1
- Trade and other receivables	(1,652)	13,836
- Trade and other payables	18,116	(906)	7,372	(3,382)
- Other assets	(654)	(495)	1,556	(3,226)
Cash generated from operations	129,084	107,047	370,092	279,445
Interest received	467	698	1,260	2,365
Income tax paid	(4)	(5,048)	(1,478)	(8,430)
Net cash provided by operating	129,547	102,697	369,874	273,380
activities

Cash flows from investing
activities
Additions to investment properties	(146,951)	(580)	(210,811)	(356,579)
Distributions received from joint	7,010	8,450	21,507	21,044
venture

Net cash (used in)/provided by	(139,941)	7,870	(189,304)	(335,535)
investing activities

1.5 Consolidated Statement of Cash Flows(continued)

	3Q	3Q	YTD	YTD
	FY24/25	FY23/24	FY24/25	FY23/24
	(S$'000)	(S$'000)	(S$'000)	(S$'000)
Cash flows from financing
activities
Repayment of bank loans	(13,000)	(186,320)	(123,207)	(659,373)
Redemption of medium term note	-	-	-	(75,000)
Payment of financing related costs	(548)	(762)	(1,328)	(3,051)
Gross proceeds from bank loans	131,265	194,238	300,334	787,174
Gross proceeds from issuance of	-	-	-	155,933
medium term notes

Gross proceeds from issuance of	-	92,578	-	92,578
TMK bonds

Net proceeds from issuance of new	-	-	-	201,557
units

Contribution from non-controlling	1,839	-	1,999	6,225
interest

Distribution to non-controlling	(4)	-	(49)	-
interests
(87,953)3		(263,880)3	(279,051)2
Distributions to Unitholders	(94,072)
Distribution to perpetual securities	(4,764)	(4,764)	(9,476)	(9,450)
holders

Interest paid	(23,903)	(19,025)	(73,947)	(75,632)
Payment of lease liabilities4	(2,090)	(1,182)	(3,628)	(2,677)
Net cash provided by/(used in)	842	(19,309)	(173,182)	139,233
financing activities

Net (decrease)/increase in cash
(9,552)	91,258	7,388	77,078
and cash equivalents

Cash and cash equivalents at	135,750	132,471	119,902	146,611
beginning of financial period

Effects of currency translation on	1,475	(56)	383	(16)
cash and cash equivalents

Cash and cash equivalents at	127,673	223,673	127,673	223,673
end of financial period

Notes:

Includes consumption tax receivables in relation to the acquisition of Osaka Data Centre.
This amount of S$279.1 million includes an advance distribution of S$68.0 million or 2.48 cents per unit declared to eligible Unitholders on 6 June 2023 and paid on 6 July 2023. This advance distribution represents distribution for the period 1 April 2023 to 5 June 2023 to Unitholders existing as at 5 June 2023 and prior to issuance of the new units pursuant to the private placement.
This amount excludes S$24.5 million distributed through the issuance of 10,853,819 new units in MIT as part payment of distributions for the period from 1 April 2024 to 30 September 2024, pursuant to the DRP.
Includes payment of finance cost for lease liabilities.