Investor Presentation November 2011
Agenda Overview of Mapletree Industrial Trust 1 Portfolio Highlights 2 2Q & 1H FY2011 Financial Results 3 Strategy & Outlook 4 1
Overview of Mapletree Industrial Trust
Overview of Mapletree Industrial Trust Public & Inst Mapletree Investments Pte Ltd Sponsor MIPL (“MIPL”) Unitholders Owns 30% of MIT 70% 30% Trustee Focused on income producing real Investment estate in Singapore primarily used for mandate industrial purposes, excluding Manager properties primarily used for logistics purposes 81 properties valued at S$2.6 billion Portfolio Property Portfolio Manager 1.8 million sq m GFA • 3 Business Park Buildings 1.3 million sq m NLA • 64 Flatted Factories Mapletree Industrial Trust Manager (Grouped into 27 clusters 1 ) Management Ltd. • 7 Stack-up / Ramp-up Buildings 100% owned by the Sponsor (Grouped into 1 cluster 1 ) Mapletree Facilities Services Pte. Ltd. Property • 6 Light Industrial Buildings 2 Manager 100% owned by the Sponsor • 1 Warehouse DBS Trustee Limited Trustee 1 A property “cluster” consists of one or more individual buildings situated on the same land lot or adjoining land lots 2 Includes 26 Woodlands Loop, which is a property comprising 3 individual buildings 3
Key Milestones Achieved in 1 st Year 21 October 2010 S$1.188 billion raised via Initial Public Offering on SGX Mainboard 25 Oct 2011 16 Aug 2011 2QFY2011 Results Establishment of DPU of 2.05 cents 27 Jul 2011 MTN Programme Launched Successful S$177mil Equity Fund Raising 26 Jul 2011 1QFY2011 Results DPU of 1.98 cents 1 Jul 2011 Award of JTC Portfolio worth S$400.3 mil 26 Mar 2011 Index Constituent of: 2 nd Financial Results FTSE EPRA/NAREIT Developed Asia Index FTSE ST RE Investment Trust Index DPU of 1.93 cents 26 Jan 2011 First Financial Results Exceed Forecast by 13.4%; DPU of 1.52 cents 4
81 Properties Spanning 4 Key Property Types • One of the largest industrial landlords in Singapore • Total assets of approx. S$2.7 billion • Total GFA of approx. 1.8 million sq m Light Industrial Warehouse • Total NLA of approx. 1.3 million sq m Business Buildings • Tenant base of more than 2,000 MNCs, listed Park Stack-up/ Buildings companies & local enterprises Ramp-up Largest tenant base among industrial S-REITs Buildings By Valuation Business Park Buildings Flatted Factories Flatted Factories As at 30 Sep 2011 Stack-up / Ramp-up Buildings Light Industrial Buildings 5
Maiden Acquisition increases Portfolio Size by 18% MIT‟s maiden acquisition since its IPO Acquisition of 11 flatted factories and amenity centres from JTC Corporation‟s divestment exercise – On 2 Jul 2011, MIT won bid to acquire the assets at S$400.3m ( valued at S$402.7m by Knight Frank) – Acquisition was completed on 26 Aug 2011 Quality portfolio of industrial real estate – 11 properties comprising 8 flatted factories and 3 amenity centres – Properties located in established industrial estates in the Central and Eastern regions of Singapore and are well connected by major roads and expressways – Approximately 500 tenants with average occupancy rate of over 95% – Passing rent of Acquisition Portfolio is more than 30% below latest JTC Posted Rents as of 1 July 2011 6
Strategically Located Across Singapore Woodlands Johor East Causeway Woodlands Kampong Ubi Reion Cluster of Woodlands Properties Central Tampines Region Bedok Cluster of Properties Serangoon Jurong East North Region Loyang North Changi Second Airport Kampong Link Toa Payoh Kaki Ampat North Bukit International Business Park Changi Clementi Kolam Ayer Business Park West Tanglin Kallang Halt Basin Redhill Seaport Kallang Basin 1, Telok 2 & 3 Cluster of Blangah Properties Tiong Bahru CBD Seaport Business Park Buildings Warehouse Seaport Flatted Factories Regional Centres Stack-up/Ramp -up Buildings Major Expressways Light Industrial Buildings New Flatted Factories (Acquisition Portfolio) 7 5
Selected MIT Properties The Signature The Synergy The Strategy Kaki Bukit Kampong Ampat Telok Blangah Loyang 1 Redhill 1 Woodlands Central Woodlands Spectrum 1 & 2 19 Tai Seng Drive Tata Communications Exchange LEGEND Business Park Buildings Flatted Factories Stack-up/Ramp-Up Buildings Light Industrial Buildings 8 5
Robust, Resilient, Relevant & Reputable Embedded Organic Growth Potential Large, Diversified and Resilient Portfolio with Market Presence Growth Opportunity from Asset Enhancements and Acquisitions Experienced Manager and Committed Sponsor 9
Portfolio Highlights
Positive Rental Revisions Gross Rental Rate S$ psf/mth $4.50 $3.87 $4.00 $3.55 $3.50 $3.24 $3.00 $2.50 $2.00 $1.82 $1.64 $1.40 $1.50 $1.28 $1.26 $1.22 $1.20 $1.04 $0.94 $1.00 $0.50 $- Business Park Buildings Flatted Factories Stack-Up / Ramp-Up Buildings Warehouse Before Renewal After Renewal New Leases For period 2QFY2011 11
Higher Occupancy and Passing Rents Gross Rental Rate Occupancy S$ psf/mth 100% $1.70 94.5% 94.3% 93.2% 92.3% 91.0% 91.0% 91.2% 90.7% 90.3% 90.3% 89.7% 89.0% 89.0% 80% $1.60 $1.54 $1.52 $1.49 60% $1.50 $1.45 $1.44 $1.40 40% $1.40 $1.35 $1.31 $1.31 $1.29 20% $1.30 $1.26 $1.23 $1.21 0% $1.20 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY08 FY08 FY08 FY09 FY09 FY09 FY09 FY10 FY10 FY10 FY10 FY11 FY11 Occupancy (LHS) Rental Rate (RHS) 12
Continued Strong Tenant Retention High Retention Rate for 2QFY2011 Long Staying Tenants >10 yrs Average Retention Rate 10.0% Up to 1 yr 100.0% 20.7% 100.0% 83.6% >5 to 10 yrs 79.4% 21.2% 80.0% 70.8% 60.0% 52.6% 41.9% 40.0% >1 to 2 yrs 15.7% 20.0% N.M. >4 to 5 yrs 0.0% 10.7% > 2 to 3 yrs Business Flatted Stack-Up / Light Warehouse Portfolio >3 to 4 yrs Park Factories Ramp-Up Industrial 11.2% 10.4% Buildings Buildings Buildings By number of tenants Based on NLA. As at 30 September 2011 Not meaningful for Light Industrial Buildings as no leases were due for renewal • 41.9% of the tenants have leased the properties for more than 4 years • High tenant retention rate of 79.4% in 2QFY2011 13
Only 8.2% of Leases Due for Renewal in FY2011 Introduction of longer lease packages to: Help tenants have longer-term rental certainty for their business Extend Portfolio WALE of 2.5 years (by Rental Income) 35.0% 30.9% 30.0% 27.5% by Gross Rental Income 23.9% 25.0% % Expiring Leases 20.0% 15.0% 9.5% 10.0% 8.2% 5.0% 0.0% FY11 FY12 FY13 FY14 FY15 & beyond Business Park Flatted Factories Stack-up / Ramp-up Light industrial Warehouse Buildings Buildings Buildings As at 30 Sep 2011 14
Larger and Diverse Tenant Base 5% • Over 2,000 tenants • Largest tenant contributes <4.0% of Portfolio‟s Gross Rental Income • Top 10 Tenants forms only 18.8% of Portfolio‟s Gross Rental Income 4% 3.8% 3% 2.9% 2.2% 1.9% 2% 1.7% 1.4% 1.4% 1.3% 1.1% 1.0% 1% 0% By Gross Rental Income 15 As at 30 Sep 2011
Diversity of Tenant Trade Sector 16 As at 30 Sep 2011
Opportunities for Acquisition & Development Asset Investment Criteria Development Strategy Built-to- Suit (“BTS”) projects 1 Development of empty land plots Positive impact on Distributions Development of under-utilised plot ratios 2 Location Capacity for up to S$271 million of development activities 1 3 Building & Facilities Specifications Example of BTS – Tata Communications Exchange 4 Asset Enhancement Potential 5 Tenant Composition & Lease Expiry Profile 6 Lease Expiry Profile & Land Lease Tenure 1 Based on 10% development limit of MIT’s deposited property 17
Completed Asset Enhancement – Redhill 2 Conversion of Redhill 2 Flatted Factory space (7 th Floor) into e-Business space Project Status Actual Cost Converted NLA Number of Units Leasing Status Completed 57 S$2.6M 28,300 sq ft 100% committed in Feb 2011 (250 to 1,000 sq ft) Reception Area Lift Lobby 18 18 Meeting Room Breakout Area Common Toilet
Proven Management & Committed Sponsor Benefits to MIT Leverage on Sponsor‟s network 1 Leverage on Mapletree‟s financial strength, market reach and network • Leading Asia-focused real estate and capital management company Owns and manages S$18.7 billion 1 of office, • Alignment of Sponsor‟s interest with Unitholders 2 logistics, industrial, residential and retail/lifestyle Committed Sponsor„s stake of 30% in MIT properties • Extensive regional network in Singapore, China, Hong Kong, India, Japan, Malaysia, South Korea 3 Development capabilities and Vietnam Able to support growth of MIT by developing and • Business model: warehousing assets to offer to MIT Incubate, develop and rejuvenate real estate assets Unlock asset value through origination of 4 Right of First Refusal to MIT REITs and private real estate funds Sponsor has granted right of first refusal to MIT over future sale or acquisition of industrial or business park properties 2 Proven management track record • Acquired and managed portfolio from JTC since 1 July 2008 and grew revenue through the financial crisis • Sourced for, developed and managed portfolio under Mapletree Industrial Fund 1 As at 30 Sep 2011 2 Excluding Mapletree Business City and Comtech 19
2Q & 1H FY2011 Financial Performance
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