Resilient Performance Sustainable Future
Mapletree Logistics Trust
15th Annual General Meeting
17 July 2024
Notice of AGM
3
Agenda
Resilient Performance
- FY23/24 Operational and Financial Highlights
- Prudent Capital Management
- Resilient Portfolio Valuations
Sustainable Future
- Accelerated Portfolio Rejuvenation
- Advancing our Green Agenda
Mapletree Logistics Park - Majang 3, South Korea
FY23/24 Highlights
Diversified portfolio of modern assets
enabled MLT to deliver resilient
operational and financial performance
Geographical Diversification Enhances Portfolio Stability
- Robust, geographically diversified portfolio reduces concentration risk and underpinned MLT's resilient performance amid a challenging environment
- Developed markets continue to account for ~70% of MLT's portfolio (by AUM and revenue)
ASSETS UNDER MANAGEMENT | GROSS REVENUE | ||||||||
Malaysia Vietnam | India | Malaysia | Vietnam | India | Singapore | ||||
Australia | 4.4% | 2.5% | Australia 5.0% | 4.0% | 0.9% | ||||
0.8% | Singapore | 27.2% | |||||||
7.5% | 19.4% | 6.7% | |||||||
South | South | ||||||||
Korea | Korea | 12M FY23/24 | |||||||
9.0% | As at 31 Mar 24 | 8.3% | |||||||
Revenue | |||||||||
S$13.2 billion1 | |||||||||
S$733.9 million | |||||||||
Hong | Japan | ||||||||
Japan | 12.1% | Hong | |||||||
Kong | |||||||||
14.5% | China | SAR | China | Kong | |||||
23.1% | SAR | ||||||||
18.8% | 19.2% | 16.6% |
Note: | 6 |
1. | Includes the right-of-use assets with the adoption of SFRS(I)16 and investment properties held for sale in Malaysia. |
Resilient Operational Performance
- Healthy supply-demand dynamics in most markets supported MLT's stable operational performance
- Challenging leasing environment in China due to weak business sentiment and high supply of warehouse space led to lower rents but MLT's occupancy level was maintained stable at above the industry average1
Stable Occupancy Rates
Singapore | Japan | Hong | South | China | Malaysia | Vietnam | Australia | India | Portfolio | |||||
Kong SAR | Korea | |||||||||||||
Mar-24 | 96.6% | 98.2% | 95.6% | 95.7% | 93.2% | 98.6% | 100.0% | 99.2% | 100.0% | 96.0% | ||||
Rental | Occupancy | |
Reversions2 | Rate2 (%) | |
(%) | ||
Portfolio | +7.7 | 97.5 |
ex-China | ||
China | -7.9 | 93.2 |
Total | +1.4 | 96.0 |
Portfolio |
Note: | ||
1. | According to the Independent Market Research Report by CBRE, April 2024, the overall occupancy rate across 23 major markets was approximately 78.2% as of end 2023. | |
2. | As at 31 Mar 2024. | 7 |
Well Diversified Tenant Base Reduces Concentration Risk
- No tenant accounts for >4% of MLT's total gross revenue, providing MLT with income diversification
- Majority of our customers serve consumer-related sectors, positioning our portfolio to benefit from Asia's growing consumption base
Well-Staggered Lease Expiry1
29.6% | Multi-Tenanted Buildings | |||||
25.5% | 22.2% | 19.1% | Single-User Assets | 14.6% | ||
18.6% | 16.0% | 8.6% | ||||
5.9% | 11.7% | |||||
5.6% | ||||||
4.1% | 3.6% | 3.1% | 2.9% | 2.9% | ||
3.0% | 3.0% | |||||
FY24/25 | FY25/26 | FY26/27 | FY27/28 | FY28/29 | >FY28/29 |
Top 10 Tenants by Gross Revenue
4.0% | 3.5% | ||||||||
3.0% | |||||||||
2.1% | |||||||||
1.9% | 1.8% | 1.6% | 1.4% | 1.4% | 1.3% | ||||
CWT | Equinix | Coles Group | JD.com | SF Express | HKTV | Coupang Inc. Bidvest Group | Woolworths | J&T |
Note:
1. As at 31 Mar 2024.
3.0 years
weighted average lease expiry (by NLA)
~22.0%
of total gross revenue by top 10 tenants
915 tenants mainly serving consumer-related sectors
8
Proactive Interest Rate and Forex Risk Management
- Disciplined, multi-year hedging strategy mitigates impact of rising interest rates and currency volatility
Interest Rate Risk Management
- 84% of total debt is hedged or drawn in fixed rates
- Every potential 25 bps increase in base rates1 may result in ~S$0.5m decrease in distributable income or -0.01 cents in DPU2 per quarter
Unhedged
Total Debt
S$5,310 million
Hedged/Fixed
Rate
Hedged/Fixed Rate | 84% | |
Unhedged | 16% | |
| JPY | 11% |
| SGD | 3% |
| AUD | 1% |
| Others | 1% |
Forex Risk Management
- About 78% of amount distributable in the next 12 months is hedged into / derived in SGD
Unhedged
Forex
Risk Management
Hedged
Hedged | 78% |
Unhedged | 22% |
Notes: | ||
1. | Base rate denotes SGD SORA, JPY DTIBOR/TORF/TONA and AUD BBSW/BBSY. | |
2. | Based on 4,994 million units as at 31 March 2024. | 9 |
Robust Balance Sheet and Well-Staggered Debt Maturity Profile
As at | As at | |
31 Mar 2024 | 31 Mar 2023 | |
Total Debt (S$ million) | 5,310 | 4,877 |
Aggregate Leverage Ratio1,2 | 38.9% | 36.8% |
Weighted Average Annualised | 2.5% | 2.5% |
Interest Rate | ||
Average Debt Duration (years) | 3.8 | 3.8 |
Interest Cover Ratio (times)3 | 3.7 | 4.0 |
MLT Credit Rating | Fitch BBB+ | Fitch BBB+ |
(with stable outlook) | (with stable outlook) | |
- Well-staggereddebt maturity profile with healthy average debt duration of 3.8 years
- Ample liquidity with available committed credit facilities of S$950 million to refinance S$275 million (or 5% of total debt) debt due in FY24/25
Total Debt: S$5,310 million
AUD
MYR USD INR
5.0% 2.0% 1.0%
S$275mil
10.0%JPY
30.0%
KRW
11.0%Debt Profile (By Currency)
As at 31 Mar 2024
HKD 12.0%
Notes:
1. 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.
2. 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.
3. 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.
RMB 17.0%
10
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Mapletree Logistics Trust published this content on 17 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 July 2024 08:58:08 UTC.