Mapletree Industrial Trust

Thanks for joining us this morning for MIT fourth quarter and full year financial 2024-2025 results briefing. MIT has released its results on 30th April after market break. We have the management team to present the key highlights of the results. Ms. Le Lee Lee, CEO. Khoo Ging Fong, CFO. Ms. Tan, Head of Investment. Ms. Serene Tam, Head of Asset Management. Ms. Jim Shotking, Head of Marketing. Now, I'll pass to Millie to present the key highlights of the results.

Good morning, everyone, and happy cooling-off day. So, no politics talks today. Okay, anyway, we can probably take a break from all the after the past few days' talks on politics, right? So, let's focus a bit on the results. For this quarter, we're going to a year-on-year improvement in terms of the DPU growth, 1%, reporting at 13.57 cents. The key contributors to the improvement in DPU growth is really on the back of the new contributions from the Osaka Data Center. We see the full-year effect this year, and we also have acquisition which we have completed towards the end of September. As for specific details on the financial, I think we will have Kim Phong to run through that. On the operational front, we are reporting a positive rental revision across all the sectors. I think weighted average about 8.1%. If you look in terms of the range, we are achieving rental revisions of between 1.4% to 12%. I think the higher of the range of 12% is actually the revision that has been recorded for our flatted factories. So there is the resilience of the flatted factories as well. As we have said, I think in the past quarters before, the rental revision is largely due to the fact that these are leases, renewal of leases, which were signed like three years ago during the COVID period. So naturally, we as we near the renewal cycle for these leases. On the valuation front, overall we see an increase in valuation by about 2.7%. AUM totalling about 9 billion. The highest increase is due to the Japan acquisition as you can see on the slide. In terms of the Singapore portfolio and US portfolio, it's actually quite flattish. However, you will note that we do register slight revaluation loss, but that's mainly because we have some capitalized costs involved. If we look at the cap rate, it remains largely unchanged. We don't really see a significant change in terms of the cap rate. So if I can move on, to the maybe portfolio occupancy. The portfolio occupancy slips a bit from 92.1% to 91.6%. Very marginal dip but it's still a dip nevertheless. If you look at the individual portfolio, Singapore portfolio is about flat. I think there is slight I think just to be specific, I think if you notice the light industrial building is actually at the lower occupancy of about 51%. I think that's mainly due to a vacant building. But I think I also like to highlight that this light industrial building segment forms only 0.7% of our overall portfolio. I think one thing which all is quite concerned on the commuter occupancy at Kallang Way, the high-tech park at Kallang Way. So I think we are pleased to inform that the commuter occupancy as of now for this property is 60.1%. So if you remember the last quarter, we reported a 57%. So that's about an uptick of about 3%. So we should be seeing the full year effects of these committed leases coming through soon. North American portfolio occupancy is reported at 88.2%. If you compare to last quarter, there is a decline from last quarter's 90.3%, largely due to the exit of a tenant in Philadelphia. I think that's something that we have already flagged out in last quarter. I think for the North American portfolio, we continue to work on these spaces. Even for like 250 William, if you remember, 250 William is actually a building which is about 50% data center space and 50% office space. So the data center space is already, I would say, fully taken up. But the team continues to work on the office space. And hopefully with some of these new spaces taken up, we will be able to inch our occupancy for $250 million. In terms of lease expiries, we have about 14.3% of the leases that are expiring in this financial year, or in FY25-26. Mostly from, I would say, the flat-out factory segment as well as the USDC segment. For the USDC segment, it's about relatively long, 6.3 years. I think if you look at what is due for renewal in FY25-26, about 3.6%. I think we have also informed during last quarter that about 1.7% has actually confirmed to be non-renewable. I hope and I think that should be it for the remaining of the financial year. I guess the remaining 1.8%, this is something that the team have already started work and we are relatively hopeful that the renewal should be there. At any rate, I guess the tenant renewal and backfilling of space is actually part and parcel of our business. It's something that the team will always continue to have to work on. We can move to the next slide on some of the measures that we take on. to tackle some of these tenant renewables and backfillings of space. Generally, three prongs, re-letting, re-positioning, and re-balance. As a background, in US, about 60% to 70% of our data center are located in the primary data center market. Again, as I said earlier, the will for the US leases are relatively long at about 6.3. The recent non-renewables that we have seen so far I would say many of them will largely due to tenants' company policies where they review the corporate real estate space requirements. So I think if you look at it, quite a number of them were actually from the enterprise user, for example, the likes of AT&T. For some of the things that we try to do, like we will try to engage them ahead of the renewals, I think this is This is shown as what we have done for property at Richmond, where they have actually renewed two years in advance. Of course, we also do try to backfill the spaces. I think this can be backfilling it with new data center operators, or it can also be non-data center operator as what is evident in what we have done with Brentwood two months back. I think one thing to note about Brentwood, the good thing is your rent-free period should be coming off soon, around June this year. So we should be expecting some cash flow contribution coming out from there. Anyway, coming back to what we do as part of our assets management, repositioning is something that we will always consider. This can take the form of doing a redevelopment or even releasing the properties out as a separate project.

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