(Constituted in the Republic of Singapore pursuant to a Trust Deed dated 29 January 2008 (as amended))
MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
TABLE OF CONTENTS
Item No. | Description | Page No. | |
- | Summary Results of Mapletree Industrial Trust Group | 2 | |
- | Introduction | 3 | |
1(a) | Statement of Total Return and Distribution Statement | 4 | - 7 |
1(b)(i) | Statement of Financial Position (MIT Group) | 8 | - 9 |
1(b)(ii) | Statement of Financial Position (MIT) | 10 | - 11 |
1(c) | Statement of Cash Flows | 11 | - 13 |
1(d)(i) | Statement of Movements in Unitholders' Funds (MIT Group) | 13 | - 14 |
1(d)(ii) | Statement of Movements in Unitholders' Funds (MIT) | 15 | - 16 |
1(d)(iii) | Details of Any Change in Units | 17 | |
2 & 3 | Audit Statement | 17 | |
4 & 5 | Changes in Accounting Policies | 17 | - 18 |
6 | Earnings Per Unit ("EPU") and Distribution Per Unit ("DPU") | 18 | - 19 |
7 | Net Asset Value ("NAV") and Net Tangible Asset ("NTA") Per Unit | 19 | |
8 | Review of the Performance | 19 | - 23 |
9 | Variance from Prospect Statement | 23 | |
10 | Outlook and Prospects | 23 | - 24 |
11 & 12 | Distributions | 24 | - 25 |
13 & 14 | Segment Information (MIT Group) | 26 | |
15 | General Mandate relating to Interested Person Transactions | 27 | |
16 | Confirmation pursuant to Rule 720(1) of the Listing Manual | 27 | |
17 | Confirmation by the Board | 27 | |
1
MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
Summary Results of Mapletree Industrial Trust Group1 ("MIT Group")
3QFY19/20 | 2QFY19/20 | Inc/(Dec) | 3QFY18/19 | Inc/(Dec) | ||||
% | % | |||||||
Gross revenue (S$'000)2 | 102,610 | 101,872 | 0.7 | 93,571 | 9.7 | |||
Net property income (S$'000)2 | 81,905 | 79,989 | 2.4 | 71,875 | 14.0 | |||
Amount available for distribution | 69,436 | 63,507 | 9.3 | 58,253 | 19.2 | |||
(S$'000)2 | ||||||||
No. of units in issue ('000) | 2,200,749 | 2,200,484 | * | 1,898,997 | 15.9 | |||
Distribution per unit (cents) | 3.16 | 3.13 | 1.0 | 3.07 | 2.9 | |||
Comprising: | ||||||||
- Advanced distribution for the | period | 2.93 | ||||||
from 1 July 2019 to 25 September 2019 | ||||||||
(paid on 21 October 2019) | ||||||||
- Balance distribution from 26 September | 0.20 | |||||||
2019 to 30 September 2019 (payable | ||||||||
with 3QFY19/20 distribution) | ||||||||
* Percentage is less than 0.1% | ||||||||
Footnotes: |
1
2
MIT Group comprises Mapletree Industrial Trust ("MIT") and its wholly owned subsidiaries.
Gross revenue and net property income do not include MIT's interests in the joint ventures with Mapletree Investments Pte Ltd, as these are equity accounted. Amount available for distribution includes distributions declared by the joint ventures.
2
MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
Introduction
MIT is a real estate investment trust listed on the Main Board of Singapore Exchange. Its principal investment strategy is to invest in a diversified portfolio of income-producing real estate used primarily for industrial purposes in Singapore, and income-producing real estate used primarily as data centres worldwide beyond Singapore, as well as real estate-related assets.
On 16 September 2019, MIT and Mapletree Investments Pte Ltd ("MIPL") formed an unlisted single purpose trust, Mapletree Rosewood Data Centre Trust ("MRODCT") (i) to acquire 100% interest in 10 powered shell data centres (the "Powered Shell Portfolio") and (ii) to enter into a joint venture with Digital Realty Trust, L.P. to co-invest in three fully fitted hyperscale data centres (the "Turnkey Portfolio"). The 13 data centres are located in North America, with 12 in the United States and one in Canada. MRODCT held 100% interest in the Powered Shell Portfolio and 80% interest in the Turnkey Portfolio. Under the joint venture agreement, MIPL and MIT holds 50:50 interest in
MRODCT.
On 1 November 2019, MRODCT completed the acquisition of the Turnkey Portfolio. The purchase consideration for MRODCT's 80% stake in the Turnkey Portfolio was approximately US$810.6 million (S$1,102.4 million1). The acquisition of the Powered Shell Portfolio was completed on 14 January 2020.
MIT Group's property portfolio comprises 87 industrial properties in Singapore and 17 data centres in the United States (through the joint ventures with MIPL in Mapletree Redwood Data Centre Trust ("MRDCT") and MRODCT). The properties in Singapore include Hi-Tech Buildings, Flatted Factories, Business Park Buildings, Stack-up/Ramp-up Buildings and Light Industrial Buildings. As at 31 December 2019, MIT's total assets under management was S$5.4 billion.
MIT's distribution policy is to distribute at least 90.0% of its amount available for distribution, 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 Based on the exchange rate of US$1.00 to S$1.360.
3
MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
1(a) Consolidated Profit or Loss and Distribution Statement (MIT Group) (3QFY19/20 vs 3QFY18/19)
Consolidated Profit or Loss
Gross revenue
Property operating expenses (Note A)
Net property income
Interest income
Borrowing costs (Note B)
Manager's management fees
- Base fees
-
Performance fees Trustee's fees
Other trust expenses
Net foreign exchange loss
Share of profit of joint ventures (net of taxes)1
Profit for the period before income tax
Income tax expense
Profit for the period after income tax
Increase/ | ||||
3QFY19/20 | 3QFY18/19 | (Decrease) | ||
(S$'000) | (S$'000) | % | ||
102,610 | 93,571 | 9.7 | ||
(20,705) | (21,696) | (4.6) | ||
81,905 | 71,875 | 14.0 | ||
2,125 | 63 | 3,273.0 | ||
(12,072) | (10,058) | 20.0 | ||
(5,628) | (5,148) | 9.3 | ||
(2,951) | (2,588) | 14.0 | ||
(161) | (146) | 10.3 | ||
(342) | (472) | (27.5) | ||
(125) | (92) | 35.9 | ||
6,848 | 4,021 | 70.3 | ||
69,599 | 57,455 | 21.1 | ||
(49) | - | |||
** | ||||
69,550 | 57,455 | 21.1 | ||
Distribution Statement
Profit for the period
Adjustment for net effect of non-tax deductible items and other adjustments (Note C)
Distributions declared by joint ventures
Amount available for distribution
Increase/ | ||
3QFY19/20 | 3QFY18/19 | (Decrease) |
(S$'000) | (S$'000) | % |
69,550 | 57,455 | 21.1 |
(6,812) | (3,400) | 100.4 |
6,698 | 4,198 | 59.6 |
69,436 | 58,253 | 19.2 |
Footnote:
1 Share of profit of joint ventures (net of taxes) relates to MIT's equity interest in the joint ventures with MIPL. The results for the joint ventures were equity accounted for at the Group level.
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MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
Increase/ | ||||
Notes | 3QFY19/20 | 3QFY18/19 | (Decrease) | |
(S$'000) | (S$'000) | % | ||
Note A | ||||
Property operating expenses include: | ||||
Depreciation | (13) | (13) | - | |
Note B | ||||
Borrowing costs include: | ||||
Interest on borrowings | (11,556) | (10,002) | 15.5 | |
Finance cost on lease liabilities | (385) | - | ** | |
Note C | ||||
Adjustment for net effect of non-tax | ||||
deductible/(chargeable) items and | other | |||
adjustments comprises: | ||||
Trustee's fees | 161 | 146 | 10.3 | |
Financing related costs | 355 | 308 | 15.3 | |
Management fees paid/payable in units | 647 | 794 | (18.5) | |
Expensed capital items | 134 | 169 | (20.7) | |
Adjustments for rental incentives | (800) | (1,031) | (22.4) | |
Share of profit of joint ventures | (6,848) | (4,021) | 70.3 | |
Net foreign exchange loss | 125 | 92 | 35.9 | |
Others | (586) | 143 | (509.8) | |
** Not meaningful
1(a) Statement of Comprehensive Income (MIT Group) (3QFY19/20 vs 3QFY18/19)
Statement of Comprehensive Income | Increase/ | ||
3QFY19/20 | 3QFY18/19 | (Decrease) | |
(S$'000) | (S$'000) | % | |
Profit for the period | 69,550 | 57,455 | 21.1 |
Other comprehensive income/(loss): | |||
Items that may be reclassified subsequently | |||
to profit or loss: | |||
Cash flow hedges | |||
- Fair value gain/(loss)1 | 913 | (2,089) | (143.7) |
- Realised and transferred to | 480 | 235 | 104.3 |
borrowing cost | |||
Share of hedging reserve of joint ventures1 | 407 | (1,462) | (127.8) |
Currency translation differences arising from | (1,448) | (44) | 3,190.9 |
share of joint ventures | |||
Other comprehensive income/(loss), net | 352 | (3,360) | (110.5) |
of tax | |||
Total comprehensive income | 69,902 | 54,095 | 29.2 |
Footnote:
1 These reflects the fair value changes of the interest rate swaps and currency forwards. As part of our prudent capital management, the Group enters into interest rate swaps and currency forwards to manage its interest rate risks and currency risks for the stability of the distribution.
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MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
1(a) Consolidated Profit or Loss and Distribution Statement (MIT Group) (YTD FY19/20 vs YTD FY18/19)
Consolidated Profit or Loss | Increase/ | |||
YTD FY19/20 | YTD FY18/19 | (Decrease) | ||
(S$'000) | (S$'000) | % | ||
Gross revenue | 304,057 | 277,279 | 9.7 | |
Property operating expenses | (64,244) | (65,359) | (1.7) | |
(Note A) | ||||
Net property income | 239,813 | 211,920 | 13.2 | |
Interest income | 2,295 | 187 | 1,127.3 | |
Borrowing costs (Note B) | (33,990) | (29,729) | 14.3 | |
Manager's management fees | ||||
- | Base fees | (16,883) | (15,240) | 10.8 |
- | Performance fees | (8,642) | (7,629) | 13.3 |
Trustee's fees | (472) | (433) | 9.0 | |
Other trust expenses | (1,142) | (1,602) | (28.7) | |
Net foreign exchange loss | (126) | (91) | 38.5 | |
Share of profit of joint ventures (net of | 15,609 | 12,952 | 20.5 | |
taxes)1 | ||||
Profit for the period before income | 196,462 | 170,335 | 15.3 | |
tax | ||||
Income tax (expense)/credit | (49) | * | ** | |
Profit for the period after income tax | 196,413 | 170,335 | 15.3 | |
Distribution Statement | Increase/ | |||
YTD FY19/20 | YTD FY18/19 | (Decrease) | ||
(S$'000) | (S$'000) | % | ||
Profit for the period | 196,413 | 170,335 | 15.3 | |
Adjustment for net effect of non-tax | ||||
deductible items and other adjustments | (14,531) | (9,900) | 46.8 | |
(Note C) | ||||
Distributions declared by joint ventures | 14,302 | 11,388 | 25.6 | |
Amount available for distribution | 196,184 | 171,823 | 14.2 | |
- Amount less than S$1,000
- Not meaningful
Footnote:
1 Share of profit of joint ventures (net of taxes) relates to MIT's equity interest in the joint ventures with MIPL. The results for the joint ventures were equity accounted for at the Group level.
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MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
Increase/ | |||
Notes | YTD FY19/20 | YTD FY18/19 | (Decrease) |
(S$'000) | (S$'000) | % | |
Note A | |||
Property operating expenses include: | |||
Reversal of impairment of trade receivables | - | (1) | ** |
Depreciation | (40) | (27) | 48.1 |
Note B | |||
Borrowing costs include: | |||
Interest on borrowings | (32,357) | (29,485) | 9.7 |
Finance cost on lease liabilities | (1,137) | - | ** |
Note C | |||
Adjustment for net effect of non-tax | |||
deductible/(chargeable) items and other | |||
adjustments comprises: | |||
Trustee's fees | 472 | 433 | 9.0 |
Financing related costs | 1,244 | 1,300 | (4.3) |
Management fees paid/payable in units | 1,933 | 2,355 | (17.9) |
Expensed capital items | 367 | 598 | (38.6) |
Adjustments for rental incentives | (2,391) | (2,536) | (5.7) |
Share of profit of joint ventures | (15,609) | (12,952) | 20.5 |
Net foreign exchange loss | 126 | 91 | 38.5 |
Others | (673) | 811 | (183.0) |
** Not meaningful
1(a) Statement of Comprehensive Income (MIT Group) (YTD FY19/20 vs YTD FY18/19)
Statement of Comprehensive Income | Increase/ | ||
YTD FY19/20 | YTD FY18/19 | (Decrease) | |
(S$'000) | (S$'000) | % | |
Profit for the period | 196,413 | 170,335 | 15.3 |
Other comprehensive income/(loss): | |||
Items that may be reclassified subsequently | |||
to profit or loss: | |||
Cash flow hedges | |||
- Fair value (loss)/gain1 | (7,631) | (867) | 780.2 |
- Realised and transferred to | 496 | 1,379 | (64.0) |
borrowing cost | |||
Share of hedging reserve of joint venture1 | (4,019) | 1,311 | (406.6) |
Currency translation differences arising from | (1,194) | 756 | (257.9) |
share of joint ventures | |||
Other comprehensive (loss)/income, net | (12,348) | 2,579 | (578.8) |
of tax | |||
Total comprehensive income | 184,065 | 172,914 | 6.4 |
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MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
Footnote:
1 These reflects the fair value changes of the interest rate swaps and currency forwards. As part of our prudent capital management, the Group enters into interest rate swaps and currency forwards to manage its interest rate risks and currency risks for the stability of the distribution.
1(b)(i) Statement of Financial Position (MIT Group)
31 December 2019 | 31 March 2019 | |
(S$'000) | (S$'000) | |
Current assets | ||
Cash and cash equivalents | 89,083 | 40,010 |
Trade and other receivables | 38,733 | 33,487 |
Other current assets | 1,319 | 1,727 |
Derivative financial instruments2 | 12 | 114 |
Loan to a joint venture1 | 332,547 | - |
Total current assets | 461,694 | 75,338 |
Non-current assets | ||
Investment properties | 4,378,883 | 4,254,200 |
Investment property under development | - | 82,100 |
Investment in joint ventures | 455,473 | 194,101 |
Plant and equipment | 143 | 183 |
Derivative financial instruments2 | 1,827 | 1,142 |
Total non-current assets | 4,836,326 | 4,531,726 |
Total assets | 5,298,020 | 4,607,064 |
Current liabilities | ||
Trade and other payables | 100,717 | 104,650 |
Borrowings | 93,772 | 74,982 |
Lease liabilities3 | 190 | - |
Derivative financial instruments2 | 462 | 238 |
Current income tax liabilities | 257 | 240 |
Total current liabilities | 195,398 | 180,110 |
Non-current liabilities | ||
Other payables | 46,668 | 54,827 |
Borrowings | 1,550,066 | 1,321,732 |
Lease liabilities3 | 18,970 | - |
Derivative financial instruments2 | 9,512 | 2,869 |
Total non-current liabilities | 1,625,216 | 1,379,428 |
Total liabilities | 1,820,614 | 1,559,538 |
Net assets attributable to Unitholders | 3,477,406 | 3,047,526 |
Represented by: | ||
Unitholders' funds | 3,477,406 | 3,047,526 |
Net asset value per unit (S$) | 1.58 | 1.51 |
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MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
Footnotes:
- MIT has provided a unitholder's loan in proportion to MIT's 50% interest in MRODCT. The onshore debt financing was finalised on 6 January 2020.
- Derivative financial instruments reflect the fair value of the interest rate swaps and currency forwards entered into by the Group to manage its interest rate risks and currency risks.
- Includes right of use assets of S$19.7 million. The Group has recognised its existing operating lease arrangements where the Group is a lessee as right of use assets and lease liabilities with the adoption of SFRS(I) 16 Leases from 1 April 2019.
Aggregate Amount of Borrowings and Debt Securities (MIT Group)
31 December 2019 | 31 March 2019 | |
(S$'000) | (S$'000) | |
Current | ||
Bank loan (unsecured) | 93,813 | 75,000 |
Less: Transaction costs to be amortised1 | (41) | (18) |
93,772 | 74,982 | |
Non-current | ||
Bank loan (unsecured) | 1,145,994 | 918,171 |
Less: Transaction costs to be amortised1 | (1,939) | (1,501) |
1,144,055 | 916,670 | |
Medium Term Notes ("MTN") (unsecured) | 405,000 | 405,000 |
Change in fair value of hedged item2 | 1,773 | 921 |
Less: Transaction costs to be amortised1 | (762) | (859) |
406,011 | 405,062 | |
1,643,838 | 1,396,714 | |
Footnotes:
1
2
Related transaction costs are amortised over the bank loan facility periods and the tenors of the MTN.
Relates to the changes in fair value of the S$75.0 million MTN issued on 11 May 2015; the Group has adopted a fair value hedge on this series of MTN.
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MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
1(b)(ii) Statement of Financial Position (MIT)
Current assets
Cash and cash equivalents Trade and other receivables Other current assets Derivative financial instruments2 Loan to a joint venture1
Total current assets
Non-current assets
Investment properties
Investment property under development Investments in:
- subsidiaries
-
joint ventures Plant and equipment Loan to subsidiaries4 Derivative financial instruments2
Total non-current assets
Total assets
Current liabilities
Trade and other payables Borrowings
Lease liabilities3
Derivative financial instruments2 Current income tax liabilities
Total current liabilities
Non-current liabilities
Other payables Borrowings Lease liabilities3 Loans from a subsidiary Derivative financial instruments2
Total non-current liabilities
Total liabilities
Net assets attributable to Unitholders
Represented by:
Unitholders' funds
Net asset value per unit (S$)
31 December 2019 | 31 March 2019 |
(S$'000) | (S$'000) |
70,499 | 22,308 |
40,368 | 33,085 |
793 | 1,138 |
12 | 114 |
332,547 | - |
444,219 | 56,645 |
3,921,370 | 3,807,400 |
- | 82,100 |
113,585 | 113,585 |
431,367 | 166,158 |
143 | 183 |
323,394 | 323,394 |
1,827 | 1,142 |
4,791,686 | 4,493,962 |
5,235,905 | 4,550,607 |
89,732 | 92,298 |
93,772 | 74,982 |
33 | - |
462 | 238 |
49 | 32 |
184,048 | 167,550 |
43,097 | 51,807 |
1,144,055 | 916,670 |
9,222 | - |
406,011 | 405,062 |
9,512 | 2,869 |
1,611,897 | 1,376,408 |
1,795,945 | 1,543,958 |
3,439,960 | 3,006,649 |
3,439,960 | 3,006,649 |
1.56 | 1.49 |
Footnotes:
- MIT has provided a unitholder's loan in proportion to MIT's 50% interest in MRODCT. The onshore debt financing was finalised on 6 January 2020.
- Derivative financial instruments reflect the fair value of the interest rate swaps and currency forwards entered into by MIT to manage its interest rate risks and currency risks.
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MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
- Includes right of use assets of S$9.4 million. MIT has recognised its existing operating lease arrangements where the Group is a lessee as right of use assets and lease liabilities with the adoption of SFRS(I) 16 Leases from 1 April 2019.
- Includes MIT's quasi equity investment of S$166.6 million in Mapletree Singapore Industrial Trust ("MSIT").
1(c) Statement of Cash Flows (MIT Group)
3QFY19/20 | 3QFY18/19 | |
(S$'000) | (S$'000) | |
Cash flows from operating activities | ||
Profit for the period | 69,550 | 57,455 |
Adjustments for: | ||
- Income tax expense | 49 | - |
- Interest income | (2,125) | (63) |
- Borrowing costs | 12,072 | 10,058 |
- Manager's management fees paid/payable in units | 647 | 794 |
- Rental incentives | (433) | (1,031) |
- Depreciation | 13 | 13 |
- Share of profit of joint ventures | (6,848) | (4,021) |
- Unrealised translation loss | * | (5) |
Operating cash flows before working capital changes | 72,925 | 63,200 |
Changes in operating assets and liabilities | ||
Trade and other receivables | 760 | (3,471) |
Trade and other payables | (401) | 4,460 |
Other current assets | 87 | 2,172 |
Cash generated from operations | 73,371 | 66,361 |
Interest received | 122 | 65 |
Net cash provided by operating activities | 73,493 | 66,426 |
Cash flows from investing activities | ||
Additions to investment properties and investment property under | (10,043) | (11,895) |
development | ||
Additions to plant and equipment | - | (88) |
Investment in a joint venture | (189,972) | - |
Distribution received from joint venture | 3,733 | 3,884 |
Loan to a joint venture | (333,180) | - |
Net cash used in investing activities | (529,462) | (8,099) |
Cash flows from financing activities | ||
Repayment of bank loans | (123,140) | (252,581) |
Payment of financing related costs | (120) | (531) |
Gross proceeds from bank loans | 517,640 | 239,265 |
Payment of issue expenses | (6,385) | - |
Distributions to Unitholders | (59,300) | (33,980)1 |
Interest paid | (7,742) | (8,885) |
Payment of lease liabilities2 | (579) | - |
Net cash generated from/(used in) financing activities | 320,374 | (56,712) |
Net (decrease)/increase in cash and cash equivalents | (135,595) | 1,615 |
Cash and cash equivalents at beginning of financial period | 224,678 | 20,646 |
Effects of currency translation on cash and cash equivalents | * | * |
Cash and cash equivalents at end of financial period | 89,083 | 22,261 |
* Amount less than S$1,000
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MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
Footnotes:
1
2
This amount excludes S$22.8 million distributed through the issuance of 12,244,525 new units in MIT in 3QFY18/19 as part payment of distributions for the period from 1 July 2018 to 30 September 2018, pursuant to the Distribution Reinvestment Plan ("DRP").
Includes payments of finance cost for lease liabilities.
1(c) Statement of Cash Flows (MIT Group)
YTD FY19/20 | YTD FY18/19 | |
(S$'000) | (S$'000) | |
Cash flows from operating activities | ||
Profit for the period | 196,413 | 170,335 |
Adjustments for: | ||
- Reversal of impairment of trade receivables | - | 1 |
- Income tax expense/(credit) | 49 | * |
- Interest income | (2,295) | (187) |
- Borrowing costs | 33,990 | 29,729 |
- Manager's management fees paid/payable in units | 1,933 | 2,355 |
- Rental incentives | (1,474) | (2,536) |
- Depreciation | 40 | 27 |
- Share of profit of joint ventures | (15,609) | (12,952) |
- Unrealised translation loss | * | 23 |
Operating cash flows before working capital changes | 213,047 | 186,795 |
Changes in operating assets and liabilities | ||
Trade and other receivables | 1,310 | (288) |
Trade and other payables | (6,851) | (5,554) |
Other current assets | 794 | (249) |
Cash generated from operations | 208,300 | 180,704 |
Interest received | 294 | 188 |
Income tax paid | (32) | * |
Net cash provided by operating activities | 208,562 | 180,892 |
Cash flows from investing activities | ||
Additions to investment properties and investment property under | (35,309) | (125,142)1 |
development | ||
Additions to plant and equipment | - | (135) |
Investment in a joint venture | (265,209) | - |
Distribution received from joint venture | 11,222 | 10,357 |
Loan to a joint venture | (333,180) | - |
Net cash used in investing activities | (622,476) | (114,920) |
Cash flows from financing activities | ||
Repayment of bank loans | (301,240) | (407,895) |
Payment of financing related costs | (1,397) | (720) |
Gross proceeds from bank loans | 548,440 | 501,817 |
Net proceeds from issuance of new units | 393,614 | - |
Distributions to Unitholders | (145,318)2 | (146,162)3 |
Interest paid | (29,390) | (28,170) |
Payment of lease liabilities4 | (1,722) | - |
Net cash generated from/(used in) financing activities | 462,987 | (81,130) |
Net increase/(decrease) in cash and cash equivalents | 49,073 | (15,158) |
Cash and cash equivalents at beginning of financial period | 40,010 | 37,419 |
Effects of currency translation on cash and cash equivalents | * | * |
Cash and cash equivalents at end of financial period | 89,083 | 22,261 |
* Amount less than S$1,000
12
MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
Footnotes:
1
2
3
Includes the acquisition of 7 Tai Seng Drive.
This amount excludes S$4.4 million distributed through the issuance of 2,172,035 new units in MIT in 1QFY19/20 as part payment of distributions for the period from 20 February 2019 to 31 March 2019, pursuant to the DRP.
This amount excludes S$22.8 million distributed through the issuance of 12,244,525 new units in MIT in 3QFY18/19 as part payment of distributions for the period from 1 July 2018 to 30 September 2018, pursuant to the DRP.
4 Includes payments of finance cost for lease liabilities.
1(d)(i) Statement of Movements in Unitholders' Funds (MIT Group)
3QFY19/20 | 3QFY18/19 | |
(S$'000) | (S$'000) | |
OPERATIONS | ||
Balance at beginning of the period | 929,616 | 941,786 |
Profit for the period | 69,550 | 57,455 |
Distributions | (4,402)1 | (56,779) |
Balance at end of the period | 994,764 | 942,462 |
UNITHOLDERS' CONTRIBUTION | ||
Balance at beginning of the period | 2,499,803 | 1,841,503 |
Issue of new units pursuant to the DRP | - | 22,7992 |
Manager's management fees paid in units | 648 | 789 |
Balance at end of the period | 2,500,451 | 1,865,091 |
HEDGING RESERVE | ||
Balance at beginning of the period | (18,294) | 5,532 |
Fair value gain/(loss) | 913 | (2,089) |
Cash flow hedges realised and transferred to borrowing cost | 480 | 235 |
Share of hedging reserve of joint venture | 407 | (1,462) |
Balance at end of the period | (16,494) | 2,216 |
FOREIGN CURRENCY TRANSLATION RESERVE | ||
Balance at beginning of the period | 133 | 128 |
Currency translation differences arising from share of joint | (1,448) | (44) |
ventures | ||
Balance at end of the period | (1,315) | 84 |
Total Unitholders' funds at end of the period | 3,477,406 | 2,809,853 |
Footnotes:
1 This amount represents the balance distribution from 26 September 2019 to 30 September 2019 and will be paid together with 3QFY19/20 distribution.
2 MIT Group issued 12,244,525 new units in MIT amounting to S$22.8 million in 3QFY18/19 as part payment of distributions for the period from 1 July 2018 to 30 September 2018, pursuant to the DRP.
13
MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
Statement of Movements in Unitholders' Funds (MIT Group)
YTD FY19/20 | YTD FY18/19 | |
(S$'000) | (S$'000) | |
OPERATIONS | ||
Balance at beginning of the period | 952,473 | 941,088 |
Profit for the period | 196,413 | 170,335 |
Distributions | (154,122) | (168,961) |
Balance at end of the period | 994,764 | 942,462 |
UNITHOLDERS' CONTRIBUTION | ||
Balance at beginning of the period | 2,100,514 | 1,839,263 |
Issue of new units pursuant to the private placement | 399,999 | - |
Issue of new units pursuant to the DRP | 4,4021 | 22,7992 |
Manager's management fees paid in units | 1,921 | 2,349 |
Manager's acquisition fee paid in units | - | 680 |
Issue expenses | (6,385) | - |
Balance at end of the period | 2,500,451 | 1,865,091 |
HEDGING RESERVE | ||
Balance at beginning of the period | (5,340) | 393 |
Fair value loss | (7,631) | (867) |
Cash flow hedges realised and transferred to borrowing cost | 496 | 1,379 |
Share of hedging reserve of joint venture | (4,019) | 1,311 |
Balance at end of the period | (16,494) | 2,216 |
FOREIGN CURRENCY TRANSLATION RESERVE | ||
Balance at beginning of the period | (121) | (672) |
Currency translation differences arising from share of joint | (1,194) | 756 |
ventures | ||
Balance at end of the period | (1,315) | 84 |
Total Unitholders' funds at end of the period | 3,477,406 | 2,809,853 |
Footnotes:
- MIT Group issued 2,172,035 new units in MIT amounting to S$4.4 million in 1QFY19/20 as part payment of distributions for the period from 20 February 2019 to 31 March 2019, pursuant to the DRP.
- MIT Group issued 12,244,525 new units in MIT amounting to S$22.8 million in 3QFY18/19 as part payment of distributions for the period from 1 July 2018 to 30 September 2018, pursuant to the DRP.
14
MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
1(d)(ii) Statement of Movements in Unitholders' Funds (MIT)
3QFY19/20 | 3QFY18/19 | |
(S$'000) | (S$'000) | |
OPERATIONS | ||
Balance at beginning of the period | 882,027 | 907,668 |
Profit for the period | 71,791 | 57,845 |
Distributions | (4,402)1 | (56,779) |
Balance at end of the period | 949,416 | 908,734 |
UNITHOLDERS' CONTRIBUTION | ||
Balance at beginning of the period | 2,499,803 | 1,841,503 |
Issue of new units pursuant to the private placement | - | 22,7992 |
Manager's management fee paid in units | 648 | 789 |
Balance at end of the period | 2,500,451 | 1,865,091 |
HEDGING RESERVE | ||
Balance at beginning of the period | (11,300) | 2,233 |
Fair value gain/(loss) | 913 | (2,089) |
Cash flow hedges realised and transferred to borrowing cost | 480 | 235 |
Balance at end of the period | (9,907) | 379 |
Total Unitholders' funds at end of the period | 3,439,960 | 2,774,204 |
Footnotes:
1
2
This amount represents the balance distribution from 26 September 2019 to 30 September 2019 and will be paid together with 3QFY19/20 distribution.
MIT Group issued 12,244,525 new units in MIT amounting to S$22.8 million in 3QFY18/19 as part payment of distributions for the period from 1 July 2018 to 30 September 2018, pursuant to the DRP.
15
MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
Statement of Movements in Unitholders' Funds (MIT)
YTD FY19/20 | YTD FY18/19 | |
(S$'000) | (S$'000) | |
OPERATIONS | ||
Balance at beginning of the period | 908,907 | 915,043 |
Profit for the period | 194,631 | 162,652 |
Distributions | (154,122) | (168,961) |
Balance at end of the period | 949,416 | 908,734 |
UNITHOLDERS' CONTRIBUTION | ||
Balance at beginning of the period | 2,100,514 | 1,839,263 |
Issue of new units pursuant to the private placement | 399,999 | - |
Issue of new units pursuant to the DRP | 4,4021 | 22,7992 |
Manager's management fee paid in units | 1,921 | 2,349 |
Manager's acquisition fee paid in units | - | 680 |
Issue expenses | (6,385) | - |
Balance at end of the period | 2,500,451 | 1,865,091 |
HEDGING RESERVE | ||
Balance at beginning of the period | (2,772) | (133) |
Fair value loss | (7,631) | (867) |
Cash flow hedges realised and transferred to borrowing cost | 496 | 1,379 |
Balance at end of the period | (9,907) | 379 |
Total Unitholders' funds at end of the period | 3,439,960 | 2,774,204 |
Footnotes:
- MIT Group issued 2,172,035 new units in MIT amounting to S$4.4 million in 1QFY19/20 as part payment of distributions for the period from 20 February 2019 to 31 March 2019, pursuant to the DRP.
- MIT Group issued 12,244,525 new units in MIT amounting to S$22.8 million in 3QFY18/19 as part payment of distributions for the period from 1 July 2018 to 30 September 2018, pursuant to the DRP.
16
MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
1(d)(iii) Details of Any Change in Units
3QFY19/20 | 3QFY18/19 | YTD FY19/20 | YTD FY18/19 | |
Balance as at beginning | 2,200,483,921 | 1,886,353,807 | 2,021,111,388 | 1,885,217,601 |
of the period | ||||
Manager's management | 264,689 | 398,994 | 865,187 | 1,196,538 |
fees paid in units1 | ||||
Manager's acquisition fee | - | - | - | 338,662 |
paid in units1 | ||||
Issue of new units pursuant | - | - | 176,600,000 | - |
to the private placement2 | ||||
Issue of new units pursuant | - | 12,244,5253 | 2,172,0354 | 12,244,5253 |
to the DRP | ||||
Total issued units at end | 2,200,748,610 | 1,898,997,326 | 2,200,748,610 | 1,898,997,326 |
of the period5 | ||||
Footnotes: |
1
2
3
4
The Manager has elected, in accordance with the Trust Deed, for new units to be issued as part payment of base fee and payment of acquisition fee to the Manager.
The new units were listed on 26 September 2019.
New units were issued at an issue price of S$1.8612 per unit as part payment of distributions for the period from 1 July 2018 to 30 September 2018, pursuant to the DRP.
New units were issued at issue price of S$2.0193 per unit as part payment of distributions for the period from 20 February 2019 to 31 March 2019, pursuant to the DRP.
5 There were no convertibles, treasury units and units held by subsidiaries as at 31 December 2019 and 31 December 2018.
2. Whether the figures have been audited, or reviewed and in accordance with which standard, (e.g. the Singapore Standard on Auditing 910 (Engagements to Review Financial Statements), or an equivalent standard)
The figures have not been audited or reviewed by the auditors.
3. Where the figures have been audited, or reviewed, the auditors' report (including any qualifications or emphasis of matter)
Not applicable.
4. Whether the same accounting policies and methods of computation as in the issuer's most recent audited annual financial statements have been applied
Except as disclosed in paragraph 5 below, the accounting policies and methods of computation applied in the financial statements for the current reporting period are consistent with those used in the audited financial statements for the financial year ended 31 March 2019.
17
MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of the change
MIT Group has adopted the new and amended SFRS(I) and INT SFRS(I) that are mandatory for application from 1 April 2019. The adoption of these new or amended SFRS(I) and INT SFRS(I) did not result in material changes to the Group's accounting policies and has no material effect on the amounts reported for the current financial period, except for SFRS(I) 16 Leases ("SFRS(I) 16").
The Group has applied SFRS(I) 16 from its mandatory adoption date of 1 April 2019 and have applied the simplified transition approach; no restatements were made on the comparative amounts for the prior periods. With the adoption of SFRS(I) 16, an asset (the right to use the leased item) and a financial liability to pay rentals are recognised. Right of use assets were measured at the amount of the lease liability on adoption (adjusted for any prepaid or accrued lease expenses).
Prior to the adoption of SFRS(I) 16, lease payments made for land rental were presented as land rental expenses in arriving at the net property income in the Profit and Loss and formed part of the Group's operating cash flows on the Statement of Cash Flows. However, with the adoption of SFRS(I) 16, such payments were included as borrowing cost on the Profit and Loss and principal repayment was shown as a reduction in lease liabilities in the Statement of Financial Position. Payments for lease liabilities were included in the financing cash flows on the Statement of Cash Flows. There was no significant impact on distribution with the adoption of SFRS(I) 16.
6. Earnings Per Unit ("EPU") and Distribution Per Unit ("DPU")
3QFY19/20 | 3QFY18/19 | YTD FY19/20 | YTD FY18/19 | |
Weighted average | 2,200,659,4211 | 1,890,078,7672 | 2,085,516,4781 | 1,887,214,0312 |
number of units | ||||
Earnings per unit | ||||
("EPU") - Basic and | ||||
Diluted3 | 3.16 | 3.04 | 9.42 | 9.03 |
Based on the weighted | ||||
average number of | ||||
units in issue (cents) | ||||
No. of units in issue at | ||||
end of period | 2,200,748,610 | 1,898,997,326 | 2,200,748,610 | 1,898,997,326 |
DPU | ||||
Based on number of | ||||
units in issue at end of | 3.16 | 3.07 | 9.39 | 9.08 |
period (cents) | ||||
Footnotes: |
- Weighted average number of units has been adjusted to take into account the new units issued pursuant to the private placement, DRP and as part payment of base fee to the Manager.
- Weighted average number of units has been adjusted to take into account the new units issued pursuant to the DRP, as well as part payment of base fee and acquisition fee to the Manager.
18
MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
3 Diluted earnings per unit were the same as the basic earnings per unit as there were no dilutive instruments in issue. The EPU were calculated using the total profit and the weighted average number of units in issue during the respective periods.
7. Net Asset Value ("NAV") and Net Tangible Asset ("NTA") Per Unit
MIT Group | MIT | ||||
31 December | 31 March | 31 December | 31 March | ||
2019 | 2019 | 2019 | 2019 | ||
NAV and NTA per | 1.58 | 1.51 | 1.56 | 1.49 | |
unit (S$)1 | |||||
Footnote:
1 Net tangible asset per unit was the same as net asset value per unit as there were no intangible assets as at the reporting dates.
8. Review of the Performance Consolidated Profit or Loss (MIT Group) 3QFY19/20 vs 3QFY18/19
Increase/ | ||||
3QFY19/20 | 3QFY18/19 | (Decrease) | ||
(S$'000) | (S$'000) | % | ||
Gross revenue | 102,610 | 93,571 | 9.7 | |
Property operating expenses | (20,705) | (21,696) | (4.6) | |
Net property income | 81,905 | 71,875 | 14.0 | |
Interest income | 2,125 | 63 | 3,273.0 | |
Borrowing costs | (11,687) | (10,058) | 16.2 | |
Finance cost on lease liabilities | (385) | - | ** | |
Manager's management fees | ||||
- | Base fees | (5,628) | (5,148) | 9.3 |
- | Performance fees | (2,951) | (2,588) | 14.0 |
Trustee's fees | (161) | (146) | 10.3 | |
Other trust expenses | (342) | (472) | (27.5) | |
Net foreign exchange loss | (125) | (92) | 35.9 | |
Share of profit of joint ventures | 6,848 | 4,021 | 70.3 | |
Profit for the period before | 69,599 | 57,455 | 21.1 | |
income tax | ||||
Income tax expense | (49) | - | ** | |
Profit for the period after income | 69,550 | 57,455 | 21.1 | |
tax | ||||
Net non-tax deductible items | (6,812) | (3,400) | 100.4 | |
Distributions declared by joint | 6,698 | 4,198 | 59.6 | |
ventures | ||||
Amount available for distribution | 69,436 | 58,253 | 19.2 | |
Distribution per Unit (cents) | 3.16 | 3.07 | 2.9 | |
** Not meaningful
19
MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
Gross revenue for 3QFY19/20 was S$102.6 million, 9.7% (or S$9.0 million) higher than the corresponding quarter last year. This was largely due to new revenue contributions from 18 Tai Seng and 7 Tai Seng Drive as well as higher revenue contribution from 30A Kallang Place.
Property operating expenses were S$20.7 million, 4.6% (or S$1.0 million) lower than the corresponding quarter last year. This was mainly attributed to lower property maintenance expenses, utilities and marketing commission, partially offset by additional property taxes for 18 Tai Seng.
As a result, the net property income in 3QFY19/20 increased by 14.0% (or S$10.0 million) to S$81.9 million.
The amount available for distribution in 3QFY19/20 was S$69.4 million, 19.2% (or S$11.2 million) higher than the corresponding quarter last year largely due to higher net property income, interest income and distributions declared by joint ventures, partially offset by higher manager's management fees and borrowing costs. Interest income was higher at S$2.1 million as compared to S$0.1 million in 3QFY18/19 mainly due to the interest earned on loan to MRODCT. Distributions declared by joint ventures were higher due to distribution from MRODCT for the Turnkey Portfolio, which was completed in November 2019. The higher borrowing costs were due to interest expense from debt borrowed to fund the acquisition of 18 Tai Seng as well as investment in MRODCT. The interest costs incurred in relation to 7 Tai Seng Drive were expensed (instead of being capitalised) upon obtaining Temporary Occupation Permit ("TOP") also contributed to the higher borrowing costs. Higher manager's management fees were due to better portfolio performance and increased value of assets under management.
Distribution per unit for 3QFY19/20 was 3.16 cents, 2.9% higher than 3.07 cents in 3QFY18/19.
20
MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
Consolidated Profit or Loss (MIT Group)
YTD FY19/20 vs YTD FY18/19
Increase/ | ||||
YTD FY19/20 | YTD FY18/19 | (Decrease) | ||
(S$'000) | (S$'000) | % | ||
Gross revenue | 304,057 | 277,279 | 9.7 | |
Property operating expenses | (64,244) | (65,359) | (1.7) | |
Net property income | 239,813 | 211,920 | 13.2 | |
Interest income | 2,295 | 187 | 1,127.3 | |
Borrowing costs | (32,853) | (29,729) | 10.5 | |
Finance cost on lease liabilities | (1,137) | - | ** | |
Manager's management fees | ||||
- | Base fees | (16,883) | (15,240) | 10.8 |
- | Performance fees | (8,642) | (7,629) | 13.3 |
Trustee's fees | (472) | (433) | 9.0 | |
Other trust expenses | (1,142) | (1,602) | (28.7) | |
Net foreign exchange loss | (126) | (91) | 38.5 | |
Share of profit of joint ventures | 15,609 | 12,952 | 20.5 | |
Profit | for the period before | 196,462 | 170,335 | 15.3 |
income tax | ||||
Income tax (expense)/credit | (49) | * | ** | |
Profit for the period after income | ||||
196,413 | 170,335 | 15.3 | ||
tax | ||||
Net non-tax deductible items | (14,531) | (9,900) | 46.8 | |
Distributions declared by joint | 14,302 | 11,388 | 25.6 | |
ventures | ||||
Amount available for distribution | 196,184 | 171,823 | 14.2 | |
Distribution per Unit (cents) | 9.39 | 9.08 | 3.4 | |
- Amount less than S$1,000
- Not meaningful
Gross revenue for YTD FY19/20 was S$304.1 million, 9.7% (or S$26.8 million) higher compared to the corresponding period last year. This was due mainly to new revenue contributions from 18 Tai Seng, 30A Kallang Place, Mapletree Sunview 1 and 7 Tai Seng Drive.
Property operating expenses were S$64.2 million, 1.7% (or S$1.1 million) lower than the corresponding period last year. This was due mainly to lower property maintenance expenses and utilities, partially offset by additional property taxes for 18 Tai Seng and higher marketing commission.
As a result, net property income for YTD FY19/20 was S$239.8 million, 13.2% (or S$27.9 million) higher.
The amount available for distribution in YTD FY19/20 was S$196.2 million, 14.2% (or S$24.4 million) higher than YTD FY18/19 mainly due to higher net property income, interest income and distributions declared by joint ventures, partially offset by higher manager's management fees and borrowing costs. Interest income was higher mainly due to the interest earned on loan to MRODCT. Distributions declared by joint ventures were higher due to distribution from MRODCT. Higher manager's management fees were due to better
21
MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
portfolio performance and increased value of assets under management. The higher borrowing costs were due to interest expense from debt borrowed to fund the acquisition of 18 Tai Seng as well as investment in MRODCT. The interest costs incurred in relation to Mapletree Sunview 1 and 7 Tai Seng Drive were expensed (instead of being capitalised) upon obtaining TOP also contributed to the higher borrowing costs.
Distribution per unit for YTD FY19/20 was 9.39 cents, 3.4% higher than 9.08 cents in YTD FY18/19.
Consolidated Profit or Loss (MIT Group)
3QFY19/20 vs 2QFY19/20
Increase/ | ||||
3QFY19/20 | 2QFY19/20 | (Decrease) | ||
(S$'000) | (S$'000) | % | ||
Gross revenue | 102,610 | 101,872 | 0.7 | |
Property operating expenses | (20,705) | (21,883) | (5.4) | |
Net property income | 81,905 | 79,989 | 2.4 | |
Interest income | 2,125 | 67 | 3,071.6 | |
Borrowing costs | (11,687) | (10,961) | 6.6 | |
Finance cost on lease liabilities | (385) | (381) | 1.0 | |
Manager's management fees | ||||
- | Base fees | (5,628) | (5,714) | (1.5) |
- | Performance fees | (2,951) | (2,879) | 2.5 |
Trustee's fees | (161) | (158) | 1.9 | |
Other trust expenses | (342) | (400) | (14.5) | |
Net foreign exchange (loss)/gain | (125) | 31 | (503.2) | |
Share of joint ventures | 6,848 | 4,450 | 53.9 | |
Profit for the period before | 69,599 | 64,044 | 8.7 | |
income tax | ||||
Income tax expense | (49) | - | ** | |
Profit for the period after income | ||||
69,550 | 64,044 | 8.6 | ||
tax | ||||
Net non-tax deductible items | (6,812) | (4,387) | 55.3 | |
Distributions declared by joint | 6,698 | 3,850 | 74.0 | |
ventures | ||||
Amount available for distribution | 69,436 | 63,507 | 9.3 | |
Distribution per Unit (cents) | 3.16 | 3.13 | 1.0 | |
** Not meaningful
On a quarter-on-quarter basis, net property income for 3QFY19/20 increased by 2.4% (or S$1.9 million) to S$81.9 million. The increase was mainly due to improved occupancy for Business Park Buildings, full quarter contribution from 7 Tai Seng Drive as well as lower property maintenance expenses and marketing commission.
The amount available for distribution for 3QFY19/20 was S$69.4 million, 9.3% (or S$5.9 million) higher than 2QFY19/20 largely due to higher net property income, interest income and distributions declared by joint ventures, partially offset by higher borrowing costs. Distributions declared by joint ventures were higher due to distribution from MRODCT. The
22
MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
higher borrowing costs were due to interest expense from debt borrowed to fund the investment in MRODCT. Distribution per unit for 3QFY19/20 was higher at 3.16 cents compared to 3.13 cents in 2QFY19/20.
Statement of Financial Position
31 December 2019 vs 31 March 2019
Total assets increased mainly due to completion of the acquisition of the Turnkey Portfolio, recognition of right of use assets with the adoption of SFRS(I) 16, progressive development and improvement works incurred for 7 Tai Seng Drive as well as the other properties in the portfolio.
The net assets attributable to Unitholders increased by 14.1% from S$3,047.5 million as at 31 March 2019 to S$3,477.4 million as at 31 December 2019 mainly due to new units issued pursuant to the private placement.
-
Variance from Previous Forecast / Prospect Statement
The current results are broadly in line with the commentary made in 2QFY19/20 Financial Results Announcement under Paragraph 10 page 23. The Trust has not disclosed any financial forecast to the market. - Commentary on the competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting and the next 12 month
According to advance estimates from the Ministry of Trade and Industry ("MTI") on 2
January 2020, the Singapore economy grew by 0.8% on a year-on-year basis ("y-o-y") in the fourth quarter of 2019 ("4Q2019"), extending the 0.7% growth in the previous quarter.
The manufacturing sector contracted by 2.1% on a y-o-y basis in 4Q2019, extending the 0.9% decline in the previous quarter. The contraction was due to output declines in the electronics, chemicals and transport engineering clusters, which more than offset output expansions in the precision engineering, biomedical manufacturing and general manufacturing clusters. For the whole of 2019, the Singapore economy grew by 0.7%, a decline from the 3.1% growth recorded in 2018.
The impending large supply of competing industrial space may exert pressure on both market rents and occupancy rates. The median rental rate for multi-user factory space island-wide in 4Q2019 decreased to S$1.77 per square foot per month ("psf/mth"), from
S$1.80 psf/mth in the preceding quarter1. For business park space, the island-wide median rental rate increased to S$4.25 psf/mth from S$4.20 psf/mth in the preceding quarter.
Based on Singapore Commercial Credit Bureau's Business Optimism Index study2, business confidence rose slightly for the first quarter of 2020, after reaching a near two- year low for the fourth quarter of 2019. A softer outlook is projected for the manufacturing and construction sectors in the coming months.
- Source: JTC J-Space as at 20 January 2020.
- Source: Singapore Commercial Credit Bureau, 1Q2020.
- Source: CBRE Research, 2020 U.S. Real Estate Market Outlook.
23
MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
According to CBRE3, another record level of absorption for the primary data centre markets in the United States in 2019 is expected with more than 120 megawatt of preleased capacity delivering in end 2019. Total new deliveries will increase the primary markets' total data center inventory by 17.3% in 2019, increasing the competition among certain markets in 2020. The large amount of new supply comes primarily from two sources: new providers bringing their first capacity online and expansions by existing providers. Competition between providers will continue to drive market pricing and contractual terms.
The Manager will continue to proactively manage the existing portfolio and adopt a disciplined approach to investment opportunities while monitoring the global economic developments closely.
11. Distributions
- Current financial period
Any distributions declared for the current financial period? Yes
Name of distribution: | 37th distribution for the period from 26 September 2019 to 31 |
December 2019 | |
Distribution types: | Income / Capital / Tax-Exempt |
Distribution rate: | Period from 26 September 2019 to 31 December 2019 |
Taxable Income: 3.13 cents per unit | |
Capital Distribution: 0.01 cent per unit | |
Tax-Exempt Income Distribution: 0.22 cent per unit | |
Par value of units: | Not meaningful |
Tax rate: | Taxable Income |
Qualifying investors and individuals (other than those who hold | |
their units through a partnership) will generally receive pre-tax | |
distributions. These distributions are exempt from tax in the | |
hands of individuals unless such distributions are derived | |
through a Singapore partnership or from the carrying on of a | |
trade, business or profession. | |
Qualifying foreign non-individual investors and qualifying non- | |
resident funds will receive their distributions after deduction of | |
tax at the rate of 10%. | |
All other investors will receive their distributions after deduction | |
of tax at the rate of 17%. | |
Capital Distribution | |
Capital Distribution represents a return of capital to Unitholders | |
for Singapore income tax purposes. The amount of capital | |
distribution will reduce the cost of MIT Units for Singapore | |
income tax purposes. For Unitholders who are liable to | |
Singapore income tax on profits from sale of MIT Units, the | |
reduced cost base of their MIT Units will be used to calculate | |
the taxable trading gains when the MIT Units are disposed of. | |
Tax-Exempt Income Distribution |
24
MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
Tax-Exempt Income Distribution is exempt from tax in the | ||
hands of all Unitholders. | ||
(b) | Corresponding period of the preceding financial period | |
Any distributions declared for the corresponding period of the immediate preceding | ||
financial period? | Yes | |
Name of distribution: | 33rd distribution for the period from 1 October 2018 to 31 | |
December 2018 | ||
Distribution types: | Income / Capital / Tax-Exempt | |
Distribution rate: | Period from 1 October 2018 to 31 December 2018 | |
Taxable Income: 2.90 cents per unit | ||
Capital Distribution: 0.02 cent per unit | ||
Tax-Exempt Income Distribution: 0.15 cent per unit | ||
Par value of units: | Not meaningful | |
Tax rate: | Taxable Income | |
Qualifying investors and individuals (other than those who hold | ||
their units through a partnership) will generally receive pre-tax | ||
distributions. These distributions are exempt from tax in the | ||
hands of individuals unless such distributions are derived | ||
through a Singapore partnership or from the carrying on of a | ||
trade, business or profession. | ||
Qualifying foreign non-individual investors will receive their | ||
distributions after deduction of tax at the rate of 10%. | ||
All other investors will receive their distributions after deduction | ||
of tax at the rate of 17%. | ||
Capital Distribution | ||
Capital Distribution represents a return of capital to Unitholders | ||
for Singapore income tax purposes. The amount of capital | ||
distribution will reduce the cost of MIT Units for Singapore | ||
income tax purposes. For Unitholders who are liable to | ||
Singapore income tax on profits from sale of MIT Units, the | ||
reduced cost base of their MIT Units will be used to calculate | ||
the taxable trading gains when the MIT Units are disposed of. | ||
Tax-Exempt Income Distribution | ||
Tax-Exempt Income Distribution is exempt from tax in the | ||
hands of all Unitholders. | ||
(c) | Date payable: | 26 February 2020 |
(d) | Book closure date: | 30 January 2020 |
12. If no distribution has been declared/(recommended), a statement to that effect. Not applicable.
25
MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
13. Segment Information (MIT Group)
3QFY19/20 | 3QFY18/19 | |||
S$'000 | % | S$'000 | % | |
Gross Revenue | ||||
Hi-Tech Buildings | 39,597 | 38.6 | 30,144 | 32.2 |
Flatted Factories | 38,191 | 37.2 | 38,552 | 41.2 |
Business Park Buildings | 11,909 | 11.6 | 12,019 | 12.8 |
Stack-up/Ramp-up Buildings | 11,409 | 11.1 | 11,094 | 11.9 |
Light Industrial Buildings | 1,504 | 1.5 | 1,762 | 1.9 |
102,610 | 100.0 | 93,571 | 100.0 | |
Net Property Income | ||||
Hi-Tech Buildings | 33,016 | 40.3 | 23,654 | 32.9 |
Flatted Factories | 30,110 | 36.8 | 29,475 | 41.0 |
Business Park Buildings | 8,546 | 10.4 | 8,606 | 12.0 |
Stack-up/Ramp-up Buildings | 9,091 | 11.1 | 8,855 | 12.3 |
Light Industrial Buildings | 1,142 | 1.4 | 1,285 | 1.8 |
81,905 | 100.0 | 71,875 | 100.0 | |
YTD FY19/20 | YTD FY18/19 | |||
S$'000 | % | S$'000 | % | |
Gross Revenue | ||||
Hi-Tech Buildings | 116,312 | 38.3 | 86,950 | 31.3 |
Flatted Factories | 114,878 | 37.8 | 117,236 | 42.3 |
Business Park Buildings | 35,089 | 11.4 | 35,107 | 12.7 |
Stack-up/Ramp-up Buildings | 33,039 | 10.9 | 32,726 | 11.8 |
Light Industrial Buildings | 4,739 | 1.6 | 5,260 | 1.9 |
304,057 | 100.0 | 277,279 | 100.0 | |
Net Property Income | ||||
Hi-Tech Buildings | 96,045 | 40.0 | 68,408 | 32.3 |
Flatted Factories | 89,568 | 37.4 | 89,440 | 42.2 |
Business Park Buildings | 24,032 | 10.0 | 23,918 | 11.3 |
Stack-up/Ramp-up Buildings | 26,506 | 11.1 | 26,305 | 12.4 |
Light Industrial Buildings | 3,662 | 1.5 | 3,849 | 1.8 |
239,813 | 100.0 | 211,920 | 100.0 | |
14. In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments
Hi-Tech Buildings was the largest contributor to MIT Group's gross revenue and net property income in 3QFY19/20 and YTD FY19/20 mainly due to new revenue contributions from 18 Tai Seng, 30A Kallang Place, Mapletree Sunview 1 and 7 Tai Seng Drive.
The gross revenue for Flatted Factories in YTD FY19/20 was lower as compared to YTD FY18/19 mainly due to pre-termination of leases by HGST Singapore Pte Ltd in FY18/19. The effect of the redevelopment of the Kolam Ayer 2 Cluster into a high-tech industrial precinct also contributed to the lower gross revenue for Flatted Factories in 3QFY19/20 and YTD FY19/20.
26
MAPLETREE INDUSTRIAL TRUST UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019 AND YEAR TO DATE FROM 1 APRIL 2019 TO 31 DECEMBER 2019
-
If the Group has obtained a general mandate from shareholders for Interested Person
Transactions ("IPT"), the aggregate value of each transaction as required under Rule
920(1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect.
MIT Group has not obtained a general mandate from Unitholders for any Interested Person Transactions. - Confirmation pursuant to Rule 720(1) of the Listing Manual
The Manager confirms that it has procured undertakings from all its directors and executive officers, in the format set out in Appendix 7.7 under Rule 720(1) of the Listing Manual. - Confirmation by the Board
The Board of Directors of the Manager has confirmed that, to the best of their knowledge, nothing has come to their attention which may render these interim financial results to be false or misleading in any material respect.
This release may contain forward-looking statements that involve risks and uncertainties. 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. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other companies and venues for the sale/ distribution of goods and services, shifts in customer demands, customers and partners, changes in operating expenses, including employees wages, benefits and training, governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward looking statements, which are based on current view of management of future events.
By Order of the Board
Wan Kwong Weng
Joint Company Secretary
Mapletree Industrial Trust Management Ltd.
(Company Registration No. 201015667D)
As Manager of Mapletree Industrial Trust
27
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Mapletree Industrial Trust published this content on 21 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 January 2020 11:58:01 UTC