Mapletree Industrial Trust

Thanks for joining us for Maple Tree Industrial Trust second quarter and first half financial year 2021 results. We have on site the management team of MIT. We have Guo Wei, our CEO, Lily, our CFO, Serene, the head of asset, and also Kim, the head of marketing. I think joining us on virtually is also Peter and also Paul. This morning we are doing a virtual teleconference, so we have both the analysts that are dialed in and investors that can access this briefing via our online webcast. Without further ado, I'll pass on the mic to Kuo Wei, who will give a short update on this quarter's results.

Yes, you seem very relieved, you know. when she gets to pass it to me. So okay, the presentation pack we released last evening as usual. We have the five segments which we normally cover. So let's start on page five on the key highlights. So the growth in the revenue we have outlined driven by the 14 data centers which we have completed for September. So there's some loss of revenue from the redevelopment project as we have already outlined last year when we started that project. We have a one-year decarbon period. So the completion of the decarbon was, I think, on the 9th of July. And with the completion of the decarbon and the project being moved to a project under development status, we have taken that. asset out of our denominator in a lot of our statistics and of course revenue becomes zero. So in aggregate from the distributable income perspective we have seen an increase 14.8% to $72.9 million for the second quarter. Of course some of this comes from the additional Contributions from our 60% state for one month, 1st September to 30th of September. And part of the increase is from our acquisitions of the other data center assets in the beginning of this year and end of last year. DPU, you can see a 1% year-on-year basis. 310 for second quarter. As you might have read in some of the details that we have outlined, we did not withhold any distributions for this quarter, but I think the weaker DPU is partly attributed to the additional rebates that we have given to our tenants, especially the small and medium-sized enterprises this quarter. despite having a slightly higher revenue contribution and of course we have a much larger unit base for this quarter after the equity fund raise exercise that we did in June. The portfolio occupancy has increased about 1.2 percentage point, 91.1% to 92.3% on a quarter to quarter basis for the second quarter. This is of course a mathematical representation. The effect is driven by, or this increase is driven by us removing column IA2 cluster from the denominator because that cluster has been, you know, seeing gradually reduced occupancy. So now with that being removed, the average naturally goes up. but we are seeing fairly stable occupancy levels across the other segments nonetheless. Of course, since the last quarter when we outlined the data centre segment as a separate property segment, we have since completed the acquisition of a 60% interest and that has indirectly increased our exposure to this very exciting property class. And we have also, in the middle of September, announced the acquisition of a data center in Virginia. So now we are going through the acquisition process and hopefully we will be able to provide a bit more details once we get a few of these transaction mechanics out of the way. So the value of that is between $200 and $270 million, so depending on finally what we arrived at commercially. On the capital management side, the leverage ratio remains fairly healthy, 38.1% aggregate leverage level, and we have, of course, a good and strong balance sheet, more than $400 million worth of committed facilities. I think moving on to page six, that in a nutshell is our report card for the trust ever since we got listed. On the right, of course, the most recent set of figures. And you can see the only $2.9 million distributable income for second quarter and the uptake in terms of DPU 310 on the right. That is of course partly because we did not withhold any of the distribution this quarter, unlike fourth quarter financial year 19-20 and first quarter financial year 20-21. If we had not withheld the amounts actually, the distribution for these two quarters would have been higher even compared to this quarter. We will share some of these details in the financial numbers in the subsequent slides. Okay, financial performance, what you see, they can see the slides, right? Yeah, okay, I see a thumbs up. So on slide eight, we have this comparison for second quarter year-on-year basis. revenue increase, I think, due to the data center projects that we have taken on. And that is the effect of the consolidation of the data center portfolio that we completed on 1st September. Net property income as a result of that had gone up about the two percentage point from about $80 million to $81.6 million. The share of joint ventures, of course, you see a kind of combination of effects because in the previous year, we do not have the second data center portfolio in the set of figures. That was the joint venture that we did for the Digital Value Trust Data Center portfolio. So as a result, you see this very large increase, more than 100% from $4.45 to $12.3 million. You bring the numbers down after taking all this into effect, amount available for distribution, 14.8% increase from $63.5 to $72.9 million. So at the DPO level, as I've outlined earlier, we see a 1% reduction, 313 to 310, on a like-for-like basis. This quarter, of course, there had not been any amounts withheld. So from the same store basis, we have given a little bit more rent rebates to our tenants in Singapore. And with a larger unit base, you see a slight decrease in the DPO. Okay? Let's move on. First half year on year basis, similar kind of profile, but of course the growth rate not as high because you account for six months and the effect is a little more muted for the one month impact of a consolidation of the 60% interest. So revenue increase half a percentage point, 201.5 to 202.5. MPI level 1.5% increase from $157.9 to $160.3 million. So you can see a slightly lower increase in the amount available for distribution, 13.2% from $126.7 to $143.4 million. The DPO level, you can see a reduction of 4.2%, mainly because of the effect of us withholding 0.32 cents for the first quarter of this financial year. So in aggregate, you're seeing the absence of that 0.32 cents in the distribution that we have declared. So the reduction is 4.2% from 6.23 to 5.97 cents for the first half. On a quarter-to-quarter basis, of course, you can see more apparently the effect of the contributions from the new so-called contributions from the 60% stake in the data center portfolio, 4.3% increase, MPI level, similar kind of profile, because of that effect, 3.8% from $78.7 to $81.6 million. But on the amount available for distribution level, you're seeing a similar increase, 3.3%, from $70.6 to $72.9 million. On the DPO level, this is of course not as meaningful a kind of comparison, you see an 8% increase mainly because we withheld 0.32 cents in the previous quarter. If we had not withheld that amount, which was incidentally equivalent to about 10% of our DP for that quarter, it would have been 3.19 and compare that with 3.10, you'll be a minus 2.8%. So that is essentially the effect of us accommodating some of these rent rebates and assistance. Moving on to our financial position, that's on slide 11. Partly because of a transaction that we did completed in a quarter, the NAV per unit has decreased shifted up 4.3%. Now we are $1.69 for 30th September. Okay, moving on. On the balance sheet side, I think there's some consolidation effect when we outline this set of numbers on the total debt. So it has moved up from $1.55 billion to $2.0 billion. And the weighted average channel of debt has shifted down from 3.9 years to 3.2 years, mainly because the debts that we have for the US portfolio onshore are relatively shorter. So mathematically, you see that figure averaging down. But the aggregate leverage ratio remains fairly healthy at 38.1%. It has, in fact, dropped 0.7 percentage point from the previous quarter. So this is our debt maturity profile. That's on slide 13. We have nothing due in financial year 2021. So we will be keeping an eye on what to do with the amounts that we need to refinance in the subsequent two financial years. You see slightly taller bars if you compare this with our previous expiry profile. because this comes from the consolidation of the US debt and this US debt actually on a slightly higher interest rate basis because we took them on about two to three years back. So we think there's some room for us to gradually average down some of the interest rates for this debt that are due. From the risk management part, we outlined some of these perimeters on slide 14. Most of our debt had been fixed. 93.8% is higher compared to the previous quarter because a lot of our U.S. debt had already been hedged. And the weighted average hedge channel is also 3.2 years, similar to our weighted average debt channel. And this is essentially an effect of the consolidation of the U.S. debt. So all-in cost still remains fairly low at 2.7%. Interest coverage ratio seven times and for the trailing 12 months, 7.3 times. And you can see the bullet point at the bottom, slightly more than half of our income stream for the coming quarter has already been hedged. So we are doing that progressively to make sure our income is stable.

Okay, moving on to the portfolio update with the completion of the acquisition of... The leader has turned lecture on and your line will remain muted until the conference leader unmutes your line.