Investor Presentation September 2016
Important Notice This presentation shall be read in conjunction with Mapletree Industrial Trust’s (“MIT”) financial results for First Quarter Financial Year 2016/2017 in the SGXNET announcement dated 26 July 2016. This presentation is for information only and does not constitute an offer or solicitation of an offer to sell or invitation to subscribe for or acquire any units in Mapletree Industrial Trust (“Units”) . The past performance of the Units and MIT is not indicative of the future performance of MIT or Mapletree Industrial Trust Management Ltd. (the “Manager”) . The value of Units and the income from them may rise or fall. Units are not obligations of, deposits in or guaranteed by the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request the Manager to redeem their Units while the Units are listed. It is intended that unitholders may only deal in their Units through trading on the Singapore Exchange Securities Trading Limited (“SGX - ST”) . Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. This presentation may also 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 risks, uncertainties and assumptions. Representative examples of these factors include general industry and economic conditions, interest rate trends, cost of capital, occupancy rate, construction and development risks, changes in operating expenses (including employees wages, benefits and training costs), governmental and public policy changes and the continued availability of financing. You are cautioned not to place undue reliance on these forward-looking statements, which are based on current view of management on future events. Nothing in this presentation should be construed as financial, investment, business, legal or tax advice and you should consult your own independent professional advisors. 2
Agenda 1 Overview of Mapletree Industrial Trust 2 Portfolio Highlights 3 1QFY16/17 Financial Performance 4 Outlook and Strategy 3
OVERVIEW OF MAPLETREE INDUSTRIAL TRUST Flatted Factory, Kolam Ayer 1
Overview of Mapletree Industrial Trust Public & Inst Mapletree Investments Pte Ltd MIPL Unitholders (“MIPL”) Sponsor 65.8% 34.2% Owns 34.2% of MIT Trustee Focused on industrial real estate Manager Investment assets in Singapore, excluding properties primarily used for logistics mandate purposes Property MIT Portfolio Manager Light 85 properties valued at S$3.6 billion Industrial Buildings Stack-up/ 2.7% Ramp-up Portfolio 19.7 million sq ft GFA Buildings 12.6% Flatted 14.8 million sq ft NLA Factories 44.0% Mapletree Industrial Trust Business Management Ltd. Park Manager Buildings 15.8% 100% owned by the Sponsor Portfolio Value S$3.6 billion Mapletree Facilities Services Property Pte. Ltd. Manager 100% owned by the Sponsor Hi-Tech Buildings DBS Trustee Limited Trustee 24.9% 5 As at 31 Mar 2016
Broad Spectrum of Industrial Facilities FLATTED FACTORIES STACK-UP/RAMP-UP BUILDINGS High-rise multi-tenanted industrial buildings with basic common facilities used for light Stacked-up factory space with vehicular manufacturing activities . access to upper floors. Multi-tenanted space suitable for manufacturing and assembly activities. HI-TECH BUILDINGS LIGHT INDUSTRIAL BUILDINGS High specification industrial buildings with higher office content for tenants in technology Multi-storey developments usually and knowledge-intensive sectors. Usually occupied by an anchor tenant for light fitted with air-conditioned lift lobbies and manufacturing activities. common areas. BUSINESS PARK BUILDINGS High-rise multi-tenanted buildings in specially designated “Business Park zones”. Serve as regional headquarters for MNCs as well as space for R&D and knowledge-intensive enterprises. 6
Strategically Located across Singapore Close to Public Transportation Networks and Established Industrial Estates Flatted Factories Hi-Tech Buildings Business Park Buildings Stack-up/Ramp-up Buildings Light Industrial Buildings 7
Sustainable and Growing Returns DPU Distributable Income (S$ million) (cents) 60 2.16 2.22 2.26 2.29 2.32 2.37 2.43 2.47 2.51 2.51 2.51 2.60 2.67 2.65 2.73 2.79 2.82 2.81 2.85 3.00 45.4 46.0 46.7 48.2 48.9 50.3 50.4 51.5 50 2.50 35.2 35.8 36.9 37.5 37.7 38.9 40.2 41.1 42.2 42.6 42.8 1.93 1.98 2.05 40 2.00 31.6 1.52 28.3 29.0 30 1.50 22.3 20 1.00 10 0.50 0 0.00 3Q¹ 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY10/11 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 Distributable Income (S$ million) DPU (cents) 1 MIT was listed on 21 Oct 2010. 8
Healthy Returns since IPO COMPARATIVE TRADING PERFORMANCE SINCE IPO¹ 250% MIT UNIT PRICE 200% +87.1% 150% FTSE ST REITS INDEX +11.9% 100% FTSE STRAITS TIMES INDEX 50% -10.0% 0% Oct 10 Apr 11 Oct 11 Apr 12 Oct 12 Apr 13 Oct 13 Apr 14 Oct 14 Apr 15 Oct 15 Apr 16 Rebased MIT Unit Price Rebased FTSE ST REITs Index Rebased FTSE Straits Times Index MIT’s Return on Capital Distribution Total Investment Appreciation Yield Return Listing on 21 Oct 2010 to 27 Sep 2016 87.1% 59.6% 146.7%² ¹ Rebased MIT’s issue price of S$0.93 and opening unit prices of FTSE ST REITs Index and FTSE Straits Times Index on 21 Oct 2010 to 100. Source: Bloomberg. 9 ² Sum of distributions and capital appreciation for the period over the issue price of S$0.93. .
Portfolio Growth since IPO S$3.6 S$3.4 billion billion FY15/16 S$3.2 FY14/15 billion S$2.9 FY13/14 billion S$2.7 FY12/13 billion May 2014 Acquired Light FY11/12 Industrial S$2.2 1 Building at Jul 2013 billion Changi North Completed S$14 million AEI at FY10/11 Woodlands Jan 2015 Central Jul 2011 Completed BTS S$30 million Acquired data centre Flatted Oct 2013 for Equinix Factories Completed S$108 million from JTC BTS project for S$400 million Kulicke & Soffa 2 Acquisiti S$50 million Oct 2015 tions Announced Jan 2014 new AEI at 3 Build-to Completed AEI Kallang to-Su Suit t Pr Projects ts at Toa Payoh Basin 4 North 1 S$77 million 3 Ass S$40 million sset t En Enhancement t Mar 2014 Redevelopment Initi tiati tives of Flatted Factories as BTS project for 1 Valuation of investment properties as at end of each financial year. Hewlett-Packard 10 S$226 million
PORTFOLIO HIGHLIGHTS Hi-Tech Building, build-to-suit data centre for Equinix
Stable Portfolio Performance Gross Rental Rate Occupancy S$ psf/mth 100% 92.3% 93.2% 94.3% 94.5% 95.1% 95.0% 94.9% 95.0% 95.2% 95.4% 95.5% 93.9% 92.5% 91.3% 90.7% 91.5% 90.8% 90.2% 93.5% 93.8% 94.7% 94.6% 93.0% $2.00 $1.82 $1.83 $1.84 $1.86 $1.88 $1.89 $1.90 $1.92 90% $1.68 $1.71 $1.70 $1.73 $1.75 $1.77 80% $1.45 $1.49 $1.52 $1.54 $1.53 $1.55 $1.56 $1.59 $1.61 70% $1.50 60% 50% $1.00 40% 30% $0.50 20% 10% 0% $0.00 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY10/11 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 Occupancy (LHS) Rental Rate (RHS) 12
Segmental Occupancy Levels 99.7% 96.2% 94.7% 94.6% 94.1% 93.8% 93.2% 93.4% 93.0% 90.1% 89.2% 88.3% Flatted Factories Hi-Tech Buildings Business Park Stack-Up/Ramp-Up Light Industrial MIT Buildings Buildings Buildings Portfolio Left Bar Right Bar (4QFY15/16) (1QFY16/17) 13
Rental Revisions¹ GROSS RENTAL RATE (S$ PSF/MTH)² For period 1QFY16/17 Before Renewal $4.01 After Renewal $4.05 $3.95 New Leases $3.86 Passing Rent $2.35 $1.95 $1.79 $1.99 $1.86 $1.38 $1.28 $1.22 $1.57 $1.59 $1.77 $1.28 Flatted Factories Hi-Tech Buildings Business Park Buildings Stack-Up/Ramp-Up Buildings Renewal 115 Leases 7 Leases 6 Leases 5 Leases Leases (575,967 sq ft) ( 8,525 sq ft) (22,752 sq ft) (73,690 sq ft) New 46 Leases 7 Leases 6 Leases 2 Leases Leases (97,880 sq ft) (22,504 sq ft) (16,936 sq ft) (4,489 sq ft) ¹ Excluded Light Industrial Buildings as no leases were due for renewal and no new leases were secured for the period. ² Gross Rental Rate figures exclude short term leases; except Passing Rent figures which include all leases. 14
Healthy Tenant Retention LONG STAYING TENANTS RETENTION RATE FOR 1QFY16/17 Up to 1 yr 7.9% >10 yrs >1 to 2 yrs 17.5% 80.4% 8.2% 65.8% 4 yrs or 38.3% > 2 to 3 yrs less More than 4 31.7% 12.9% 37.3% 27.1% yrs 62.7% N.A. >3 to 4 yrs Flatted Hi-Tech Business Stack-Up / Light Portfolio 8.3% Factories Buildings Park Ramp-Up Industrial Buildings Buildings Buildings >5 to 10 yrs 36.7% >4 to 5 yrs 8.5% As at 30 Jun 2016 Based on NLA. N.A. – Not applicable as no leases were due for renewal. By number of tenants 62.7% of the tenants have leased the properties for more than 4 years Tenant retention rate of 65.8% in 1QFY16/17 15
Lease Expiry Profile EXPIRING LEASES BY GROSS RENTAL INCOME (%) As at 30 June 2016 30.2% 24.5% 15.8% 15.4% 14.1% FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 & Beyond Flatted Factories Hi-Tech Buildings Business Park Stack-up / Ramp-up Light Industrial Buildings Buildings Buildings Portfolio WALE by Gross Rental Income = 2.8 years 16
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