Mapletree Industrial Trust

Hi, good morning. Thanks for joining us this morning for MIT's 2Q and first half financial year 2022-2023 financial results. We had uploaded our announcements together with presentation deck last evening. And this morning, we have management seated in the office to do a virtual presentation of the results. We have Guo Wei, our CEO, Lily, our CFO, Serene, our head of asset management, Peter, the head of investment, and Kim, the head of marketing. Myself, Melissa, and William from the IR team. So without further ado, I'll pass on the mic to Guo Wei, who will give a short intro to the financial results.

Yimin, I've been... Oops, sorry. Can you all hear me? Probably I've been spouting nonsense and got cut off by the police woman. So anyway, I said I was standing up. The rest are sitting down. Yeah, thanks for joining us. I'll run through the five usual segments that we present at our results release. First, I will go through the key highlights. That's the first segment. And who's controlling the... Okay. Now, if you look at the slide number five, you can see the operating performance continues to be fairly robust, you know, despite margins being squeezed by inflation effects and also higher utility costs. And the distributable income actually had been fairly stable $89 million on a year-on-year basis for that quarter, 0.7% increase. But DPU, you can see that effect coming down. This is, of course, partly due to the dilution effect from the series of distribution reinvestment plan we have in place. And I think going forward, we continue to see more pressure coming from borrowing costs, so-called increases. Now, looking at the second set of bullet points, if we look at our portfolio performance, especially for the Singapore portfolio, has been very encouraging. Our occupancy level on an aggregate basis has gone up 0.3% to 95.6%, which is if I could say highest ever we have recorded for the Singapore portfolio ever since we listed the platform. So the market I think continues to be helpful in the occupancy front and even on the rates as you would have seen in the details we have outlined we have seen an increase in average rental rate as well, 213 to 215. So rent revisions are also positive across most of our property types. In fact, the effective aggregate increase is positive 2.6%, which is the fourth consecutive quarter of increase. So that is also another welcomed sign. That said, we have seen a small dip in the occupancy level for the North American portfolio because we have an asset fairly small, 0.4% of the portfolio revenue as of last year on a relative basis at Leonia. We have a tenant that's moving out, so now we are, of course, in the process of engaging interested parties to take up the space. On the capital management front, the third set of bullet points, we are happy to report that the hedge borrowings, we have managed to shift that up a little, 74.2%, almost two percentage points from 72.3% in the previous quarter, and the weighted average, four years. So that gives us a bit of a protection, but not full protection against the onslaught of the interest rate, the upward adjustments. And the DRP continues to be a good source of funding for us, especially when we still have our ongoing development project at Colomaya II. So last quarter, $40.2 million received. a very good take-up rate of 42.9%. Of course, as you know, that is contributed mainly by the participation of Maple Tree Investments as our sponsor. It's about 25% of that 42.9%. And the last bullet point as a kind of a measure against the increasing so-called pressures we anticipate in the next couple of quarters from costs, so-called increases, and also borrowing costs upshift. We will plan for the release of the $6.6 million that we had withheld earlier over the next three quarters, so that will help cushion some of the negative impact that we anticipate. So I think that rounds up the key highlights. But if you look at the chart that we have outlined on slide six, the DPU profile as well, you can see we have outlined a dip to 3.36 cents for the current quarter. And we, of course, will work hard in keeping our occupancy levels healthy and then try to retain our tenants as far as possible while keeping a close eye on our margins and costs going forward. So I think that is a quick snapshot of what we have. The rest I think are fairly standard kind of components of what we normally update. We don't have anything really exceptional to highlight. I think there will probably be some burning questions some of you might have, so we can take them.

Thank you, Goh Wei. Just some housekeeping rules. We request for our analysts to keep your questions to two for each round. So of course, if there are no more questions, you're very welcome to ask some more. If you can raise your hands via the WebEx platform, You can also contact us or via the live webcast. So we will take questions on the various platforms. Can we have the first question, please? Derek from DBS, please go ahead.