1Q 2018 Financial Results (1 Jan 2018 to 31 Mar 2018) 30 April 2018
Important Notice This presentation shall be read in conjunction with Manulife US REIT’s financial results announcement dated 2 May 2017 published on SGX Net. 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 the basis of, or be relied upon in connection with, any contract or commitment whatsoever. The value of units in Manulife US REIT (“ Units ”) and the income derived from them may fall as well as rise. The Units are not obligations of, deposits in, or guaranteed by the Manager, DBS Trustee Limited (as trustee of Manulife US REIT) or any of their respective affiliates. The past performance of Manulife US REIT is not necessarily indicative of the future performance of Manulife US REIT. This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. These forward-looking statements speak only as at the date of this presentation. No assurance can be given that future events will occur, that projections will be achieved, or that assumptions are correct. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of office rental revenue, changes in operating expenses, property expenses, governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. Investors are cautioned not to place undue reliance on these forward-looking statements, which are based on current view of management on future events. Holders of Units (“ Unitholders ”) have no right to request that the Manager redeem or purchase their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on Singapore Exchange Securities Trading Limited (the “ SGX-ST ”) . Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. DBS Bank Ltd. was the Sole Financial Adviser and Issue Manager for the initial public offering of Manulife US Real Estate Investment Trust ( “Offering” ). DBS Bank Ltd., China International Capital Corporation (Singapore) Pte. Limited, Credit Suisse (Singapore) Limited and Deutsche Bank AG, Singapore Branch were the Joint Bookrunners and Underwriters for the Offering. 2
Contents 1 Key Highlights & Financial Performance 2 Portfolio Performance 3 Moving Forward 4 Appendix 3
Key Highlights & Financial Performance Peachtree, Atlanta
1Q 2018 Key Highlights Distributable Net Property Income Distribution per Unit Income US$15.6 million US$19.7 million 1.51 US cents Y-o-y decreased 0.7% 1 Y-o-y increased 50.1% Y-o-y increased 54.0% Strong Long Low Occupancy Rate WALE Gearing 95.8% 5.7 years 34.1% Proposed Acquisition of Established Debt Programme Penn and Phipps US$1.0 billion US$387.0 million (1) 1Q 2017 DPU was restated for the Rights Issue, through which 299,288,423 Units were issued on 25 Oct 2017 5
1Q 2018 Financial Performance For period 1Q 2018 1Q 2017 Change (US$’000) (US$’000) 1 Jan to 31 Mar (%) Gross Revenue 1 31,153 19,833 57.1 • Rental and Other Income 25,552 14,663 74.3 • Recoveries Revenue 5,601 5,170 8.3 Net Property Income 2 19,650 12,763 54.0 Net Income 3 11,534 8,505 35.6 Distributable Income 15,633 10,413 50.1 Distribution per Unit (DPU) (0.7) 5 restated for Rights Issue 1.51 1.52 (US cents) 4 (8.5) 6 DPU (US cents) 1.51 1.65 (1) The gross revenue was higher than 1Q 2017 largely due to the revenue contribution from the acquisitions of Plaza and Exchange, partially offset by lower income from Michelson and Figueroa (2) Net property income was higher than 1Q 2017 largely due to higher net property income contribution from Plaza and Exchange (3) Net income was higher than 1Q 2017 mainly due to higher net property income DPU has been restated for the Rights Issue, through which 299,288,423 Units were issued on 25 Oct 2017 (“Rights Issue ”) (4) (5) 1Q 2018 DPU is lower largely due to lower income from Figueroa and Michelson resulting from lower occupancies in these properties and higher income taxes in 1Q 2018 compared to 1Q 2017. This was offset by strong earnings from Plaza and Exchange properties acquired on 19 Jul 2017 and 31 Oct 2017, respectively, and therefore providing further diversification benefits to the portfolio (6) This is largely due to the enlarged Unit base in relation to the Rights Issue 6 6
Healthy Balance Sheet As at 31 Mar 2018 (US$ million) Investment Properties 1,315.4 Total Assets 1,355.5 458.6 1 Borrowings Total Liabilities 516.1 Net Asset Attributable to Unitholders 839.4 0.81 2 Net Asset Value (NAV) per Unit (US$) 0.79 3 Adjusted NAV per Unit (US$) (1) Net of upfront debt-related unamortised transaction costs of US$3.3 million. (2) NAV decreased from US$0.82 (as at 31 Dec 2017) to US$0.81 (as at 31 Mar 2018) largely due to payment of distribution on 29 Mar 2018. (3) Excluding distributable income. 7
Proactive Capital Management Established a US$1.0 billion Multicurrency Debt Issuance Programme 1 Debt Maturity Profile As at 31 Mar 2018 US$ million US$461.9 million Gross Borrowings 200 Gearing Ratio 2 34.1% 165.1 150 121.0 Weighted Average Michelson 108.5 2.83% p.a. 125.1 Figueroa Interest Rate Exchange 100 Debt Maturity 67.3 3.2 years Peachtree (weighted average) 50 40.0 Plaza Interest Coverage 3 4.7 times 0 2019 2020 2021 2022 14.6% 26.2% 35.7% 23.5% (1) Announced on 13 Apr 2018 (2) Based on gross borrowings as percentage of total assets (3) Based on net income before finance expenses, taxes and net fair value change in investment properties, over finance expenses 8
Portfolio Performance
Diversified Portfolio Portfolio Summary as at 31 Mar 2018 2,984,578 sq ft Total NLA WALE by (NLA) 5.7 years 95.8% 1 Occupancy Land Tenure 100% freehold No. of Tenants 101 Figueroa Exchange 25% 25% US$1,315.4 m 2 Portfolio Plaza Valuation 9% Michelson 26% Peachtree 15% (1) Committed occupancy (2) Based on appraisals as at 31 Dec 2017 and after capitalisation of capital expenditures, tenant improvement allowances and leasing cost 10
First Class Portfolio of Trophy / Class A Assets Click to watch property video! Figueroa 701,978 sq ft NLA Exchange US$326.3 m Property Value 93.0% Occupancy Rate NLA 730,823 sq ft 4.7 Years WALE (by NLA) Property Value US$334.8 m Occupancy Rate 98.3% WALE (by NLA) 6.5 Years Michelson NLA 532,663 sq ft Property Value US$342.1 m Plaza Occupancy Rate 96.5% WALE (by NLA) 4.2 Years NLA 461,525 sq ft Property Value US$118.0 m Occupancy Rate 98.9% Peachtree WALE (by NLA) 8.1 Years NLA 557,589 sq ft Property Value US$194.2 m Occupancy Rate 92.7% Data as at 31 Mar 2018 Please refer to the website for the video of properties WALE (by NLA) 5.6 Years 11
Favourable Lease Profile with WALE of 5.7 Years 56.3% of Leases by NLA Expiring in 2023 and Beyond Lease Expiry Profile as at 31 Mar 2018 (%) 56.3 53.9 17.9 17.8 10.0 9.2 9.5 7.1 7.1 6.8 2.5 1.9 2018 2019 2020 2021 2022 2023 and beyond Gross Rental Income Net Lettable Area 12
Quality, Diversified Tenant Base Across Multiple Sectors Gross Rental Income Breakdown by No Tenant Contributing more than Trade Sector 6.3% of Income Architectural and Public Administration Top 10 Tenants by Gross Rental Income (GRI) Related Services 0.6% Others 2.9% Grant Giving 1.7% 0.2% Leased Transportation and Warehousing 2.4% Tenant Sector Area % of GRI Advertising and Related (sq ft) Services 2.5% Legal Services 25.6% Information 2.5% TCW Group Finance and Insurance 188,835 6.3% Manufacturing 2.8% Accounting, Tax and Kilpatrick Townsend Legal Services 206,226 6.1% Payroll Services 2.8% Healthcare 3.6% Hyundai Motor Finance Finance and Insurance 96,921 5.7% The Children’s Place 197,949 5.4% Retail Trade Administrative 3.8% 129,259 4.5% Amazon Retail Trade Real Estate 3.8% Quinn Emanuel Legal Services 126,505 4.5% Arts and Entertainment 4.2% Quest Diagnostics Health Care 131,612 3.5% Gibson, Dunn Legal Services 77,677 3.2% Finance and Insurance Management and 23.7% Consulting Services 5.9% 91,023 3.0% LA Fitness Arts and Entertainment Retail Trade 11.0% 73,248 3.0% Rabo Support Services Management and Consulting Total Top 10 Tenants 1,319,255 45.2% Data as at 31 Mar 2018 13
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