Mapletree Logistics Trust : 4Q FY23/24 Financial Results – Presentation

Mapletree Logistics Trust

4Q FY23/24 & 12M FY23/24 Financial Results

29 April 2024

Disclaimer

This presentation shall be read in conjunction with Mapletree Logistics Trust's financial results for the Fourth Quarter and Financial Year FY2023/24 in the SGXNET announcement dated 29 April 2024.

This presentation is for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for units in Mapletree Logistics Trust ("MLT", and units in MLT, "Units"), nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever. The value of Units and the income derived from them may fall as well as rise. 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 SGX-ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. The past performance of the Units and Mapletree Logistics Trust Management Ltd. (the "Manager") is not indicative of the future performance of MLT and the Manager. Predictions, projections or forecasts of the economy or economic trends of the markets which are targeted by MLT are not necessarily indicative of the future or likely performance of MLT.

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 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 similar developments, shifts in expected levels of property rental income, changes in operating expenses, including employee wages, benefits and training, property expenses and 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 on future events. In addition, any discrepancies in the tables, graphs and charts between the listed amounts and totals thereof are due to rounding. Figures shown as totals in tables, graphs and charts may not be an arithmetic aggregation of the figures that precede them.

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Agenda

1. 4Q & 12M FY23/24 Key Highlights
2. Financials & Capital Management
3. Portfolio Update
4. Active Portfolio Rejuvenation
5. Sustainability
6. Outlook

Mapletree (Zhongshan) Modern Logistics Park, China

4Q & 12M FY23/24 Key Highlights

Mapletree Logistics Hub - Tanjung Pelepas, Malaysia

4Q FY23/24 Key Highlights

Sustained Financial

Performance

Gross Revenue(1)

S$181.0m

1.2% y-o-y

NPI(1)

S$155.3m

0.6% y-o-y

DPU(1)

2.211 cents

2.5% y-o-y

Resilient

Portfolio

Portfolio

Occupancy(2)

96.0%

3Q FY23/24: 95.9%

Average Rental

Reversion(1)

+2.9%

3Q FY23/24: +3.8%

WALE

(by NLA)(2)

3.0 years

3Q FY23/24: 2.9 years

Proactive Capital

Management

Aggregate

Leverage(2)

38.9%

3Q FY23/24: 38.8%

Debt hedged

into fixed rates(2)

84%

3Q FY23/24: 83%

Average Debt

Maturity(2)

3.8 years

3Q FY23/24: 3.7 years

Income hedged for next 12 months(2)

78%

3Q FY23/24: 80%

Accelerated

Portfolio Rejuvenation

• Completed divestment of 73 Tuas South Ave 1 at a sale price of S$16.8m, 10.5% above valuation
• Completed acquisition of well-located Grade A warehouse in Farrukhnagar, Delhi NCR, India for S$14.5m
• Proposed acquisitions of three well-located Grade A assets from the Sponsor:
• • Mapletree Logistics Hub - Jubli Shah Alam, Malaysia for S$157.9m(3)
  • Mapletree Logistics Park 3, Vietnam for S$34.1m(3)
  • Hung Yen Logistics Park I, Vietnam for S$34.3m (3)

FY23/24 Sustainability Highlights

• 39% of MLT's portfolio (by GFA) is green certified
• 59.8 MWp of total solar generating capacity, the largest among S-REITs reported to-date
• Issued maiden S$75 million green bond under the Green Finance Framework(4)

Notes:

1. For the 3-month period ended 31 Mar 2024.
2. As at 31 Mar 2024.

3. Based on the illustrative exchange rate of S$1.00 = MYR3.54 / VND18,336.
4. Prepared in accordance with the Green Loan Principles 2023 by the Loan Market Association, Asia Pacific Loan Market Association and Loan Syndications and Trading Association,	4
and the Green Bond Principles 2021 by the International Capital Market Association.

Financials & Capital Management

Shiroi Centre, Japan

4Q FY23/24 vs 4Q FY22/23 (Year-on-Year)

		4Q FY23/241		4Q FY22/232	Y-o-Y change
S$'000		3 mths ended		3 mths ended
		(%)
		31 Mar 2024		31 Mar 2023
Gross Revenue		180,981		178,901	1.2
Property Expenses		(25,668)		(24,556)	4.5
Net Property Income ("NPI")		155,313		154,345	0.6
Borrowing Costs		(37,217)		(34,824)	6.9
Amount Distributable		116,4723		114,5604	1.7
- To Perp Securities holders		6,052		5,326	13.6
- To Unitholders		110,420		109,234	1.1
Available DPU (cents)		2.211		2.268	(2.5)
Total issued units at end of		4,994		4,816	3.7
period (million)

Notes:

1. 4Q FY23/24 started with 187 properties and ended with 187 properties.
2. 4Q FY22/23 started with 186 properties and ended with 185 properties.
3. This includes distribution of divestment gain of S$12,009,000.
4. This includes distribution of divestment gain of S$2,868,000.

• Gross revenue increased due to:
• • higher contribution from existing properties
  • contribution from acquisitions
  • partly offset by lower contribution from China; absence of revenue contribution from divested properties; and currency weakness (mainly JPY, CNY, MYR and KRW)
• Property expenses increased due to:
• • enlarged portfolio, higher property tax and maintenance expenses
  • partly offset by currency weakness (mainly CNY and JPY)
• Gross revenue and NPI would have increased 3.6% and 3.0% respectively on a constant currency basis
• Borrowing costs increased due to:
• • higher average interest rate and incremental borrowings to fund FY23/24 acquisitions
  • partly offset by loan repayments with proceeds from private placement and divestments
• Including divestment gains of S$12.0 million, amount distributable to unitholders increased 1.1%, while DPU fell on enlarged unit base

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▪ Including divestment gains of S$41.6 million, amount distributable to unitholders rose 3.3%, while DPU fell 0.1% enlarged unit base

Borrowing costs increased due to:

Property expenses increased due to:

partly offset by absence of revenue contribution from divestments and redevelopments; lower contribution from China; and currency weakness (mainly CNY, JPY, AUD, HKD, MYR)

- partly offset by loan repayments with proceeds from private placement and divestments

- higher average interest rates and incremental borrowings to fund acquisitions

▪ On a constant currency basis, gross revenue and NPI would have increased 4.1% and 3.6% respectively

- partly offset by lower loss allowances and currency weakness (mainly CNY, JPY)

▪

- enlarged portfolio, higher property tax and maintenance expenses

-

Gross revenue increased due to:

higher contribution from existing properties contribution from acquisitions

12M FY23/24 vs 12M FY22/23 (Year-on-Year)

						▪
		12M FY23/241	12M FY22/232
S$'000		Y-o-Y change	-
	12 mths ended	12 mths ended	(%)	-
		31 Mar 2024	31 Mar 2024
Gross Revenue		733,889	730,646	0.4
Property Expenses		(98,945)	(95,863)	3.2
Net Property Income ("NPI")		634,944	634,783	0.0
Borrowing Costs		(145,905)	(134,065)	8.8
Amount Distributable		471,4893	454,4304	3.8
- To Perp Securities holders		24,340	21,501	13.2
- To Unitholders		447,149	432,929	3.3
Available DPU (cents)		9.003	9.0115	(0.1)		▪
Total issued units at end of		4,994	4,816	3.7
period (million)

Notes:

1. 12M FY23/24 started with 185 properties and ended with 187 properties.
2. 12M FY22/23 started with 183 properties and ended with 185 properties.
3. This includes distribution of divestment gain of S$41,594,000.
4. This includes distribution of divestment gain of S$6,467,000.
5. The total income support recognised in 12M FY22/23 amounted to S$2,181,000. Excluding the income support, 12M FY22/23 DPU would be at 8.965 cents.

on

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4Q FY23/24 vs 3Q FY23/24 (Quarter-on-Quarter)

	4Q FY23/241	3Q FY23/242	Q-o-Q change
S$'000	3 mths ended	3 mths ended
(%)
	31 Mar 2024	31 Dec 2023
Gross Revenue	180,981	184,020	(1.7)
Property Expenses	(25,668)	(24,516)	4.7
Net Property Income ("NPI")	155,313	159,504	(2.6)
Borrowing Costs	(37,217)	(36,729)	1.3
Amount Distributable	116,4723	118,3644	(1.6)
- To Perp Securities holders	6,052	6,118	(1.1)
- To Unitholders	110,420	112,246	(1.6)
Available DPU (cents)	2.211	2.253	(1.9)
Total issued units at end of	4,994	4,982	0.2
period (million)

• Gross revenue decreased mainly due to:
• • absence of revenue contribution from divested properties
  • lower contribution from China and Singapore
  • currency weakness (mainly JPY, CNY, KRW, HKD)
• Property expenses increased due to:
• • higher property tax and maintenance expenses
• Borrowing costs increased due to:
• • higher average interest rate
  • partly offset by loan repayments with proceeds from divestment

Notes:

1. 4Q FY23/24 started with 187 properties and ended with 187 properties.
2. 3Q FY23/24 started with 189 properties and ended with 187 properties.
3. This includes distribution of divestment gain of S$12,009,000.
4. This includes distribution of divestment gain of S$12,378,000.

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Healthy Balance Sheet and Prudent Capital Management

		As at		As at
		31 Mar 2024		31 Mar 2023
Investment Properties (S$m)		13,1831		12,7691
Total Assets (S$m)		13,812		13,423
Total Debt (S$m)		5,310		4,877
Total Liabilities (S$m)		6,328		5,901
Net Assets Attributable to		6,885		6,927
Unitholders (S$m)
NAV / NTA Per Unit2		1.38		1.44
Aggregate Leverage Ratio3,4		38.9%		36.8%
Weighted Average Annualised		2.7%		2.7%
Interest Rate
Average Debt Duration (years)		3.8		3.8
Interest Cover Ratio (times)5		3.7		4.0
Adjusted Interest Cover Ratio		3.1		3.5
(times)6
MLT Credit Rating		Fitch BBB+		Fitch BBB+
	(with stable outlook)		(with stable outlook)

• Investment Properties' carrying value increased 3.2% y-o-y due to:
• • acquisitions and capex
  • partly offset by divestments,
    S$470.9 million currency translation loss and S$1.8 million net fair value loss
• Investments totalling S$1.0 billion in acquisitions and capex funded by
• • S$180 million of divestment proceeds
  • a mix of equity and debt
• Healthy financial metrics that exceed debt covenants
• Lower NAV mainly due to net currency translation loss
• Fitch reaffirmed BBB+ (with stable outlook) rating

Notes:

1. Includes investment properties held for sale in Malaysia.
2. NTA per Unit was the same as NAV per Unit as there were no intangible assets as at the Condensed Interim Statements of Financial Position dates.
3. As per Property Funds Guidelines, the aggregate leverage includes lease liabilities that are entered into in the ordinary course of MLT's business on or after 1 April 2019 in accordance to the Monetary Authority of Singapore guidance.
4. Total debt (including perpetual securities) to net asset value ratio and total debt (including perpetual securities) less cash and cash equivalent to net asset value ratio as at 31 March 2024 were 78.7% and 78.6% respectively.
5. The interest cover ratio is based on a trailing 12 months financial results, in accordance with the guidelines provided by the Monetary Authority of Singapore with effect from 16 April 2020.
6. The adjusted interest cover ratio includes the trailing 12 months perpetual securities distributions.

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