Mapletree Logistics Trust

Hi, good evening. Welcome to MakerTree Logistics Trust fourth quarter and full year results presentation for the financial year ended March 2022. Here with us today is the full management team led by CEO Ng Keat, Charmaine Lam, CFO, as well as Head of Asset Management James Sung. So without further ado, I'll hand over to Charmaine to begin the presentation.

Hi everyone, thanks for joining the call. So let me take you through the key highlights for 4QFY21-22. In 4QFY21-22, we completed the acquisition of 12 properties in China, three properties in Vietnam. This is part of the interested person transaction approved by unit holders at the EGM on 13th January. The remaining China property was completed on 6 April 2022 out of that transaction. This brings total number of properties in the portfolio from 167 at the beginning of the quarter to 183 at the end of fall Q. For the quarter, gross revenue rose 16.5% year-on-year to 183 million. MPI grew 14.9% to 157 million and DPU of 2.268 cents for the quarter is 5% higher than last year. Excluding divestment gains, adjusted DTU would have increased by 8.7%. As at 31st March, MLT's portfolio occupancy stood at 96.7%. Average rental reversion for leases renewed or replaced in 4Q, 2.9%. And bail is at 3.5 years. We are ending the FY with an AUM of 13.1 billion. The increase from $11.5 billion at the end of Q3, mainly due to Q4's acquisition of $1.1 billion and $5 million of revaluation gains, which arose from cap rate compression, especially in markets such as Australia, Hong Kong QE Project and Tier 1 cities in China. Capital management-wise, aggregate leverage ratio stood at 46.8% as of 31st March, Our debt maturity profile remains well staggered with a debt duration of 3.8 years and approximately 79% of our debt has been hedged into fixed rates. About 76% of our income stream for the next 12 months has been hedged into Singapore dollars. Moving on to the financial review, for 4Q this year, MLT started the quarter with 167 properties, ended with 183 properties. For last year, we started the quarter with 156 properties, and ended with 163 properties at the end of 4Q last year. Gross revenue increased year-on-year by 16.5%, mainly due to contribution from the enlarged portfolio and higher revenue from existing properties. Property expenses grew year-on-year by 26.7%. In line, the enlarged portfolio and higher repair maintenance costs as well as higher property and land tax. Consequently, MPI increased year-on-year by 14.9%. Borrowings costs increased by 22.4%, mainly due to incremental borings . DI is higher, 108 million versus 92.6 million, an increase of 16.7%, translating to a DPU of 2.268 cents, 5% higher than the 2.161 cents last year. Excluding divestment gains, adjusted DPU would have increased by 8.7%. The trends and reasons behind the variances for the full year are very largely similar to 40 year on year. In terms of popular sizing, we started the current financial year with 163 properties and ended with 183 properties. For last year, we started last year with 145 properties and ended with 163 properties. Boss revenue increased year on year by 20.9% due to the enlarged portfolio, higher revenue from existing properties, and full 12-month contribution from the redeveloped Maple Tree Old Law Logistics Park Phase 2. Property expenses increased year-on-year by 39.3%, while MPI increased by 18.6%. Borrowing costs increased by $17.6 million, mainly due to incremental borrowings drawn to fund acquisitions. DI is higher, $391 million, increase of $57.6 million from $333 million last year, translating to full year DPU of 8.87 cents, 5.5% higher than 8.326 cents. Excluding the investment gains component of DPU, adjusted DPU would have increased by 9.9%. Quarter on quarter with the addition of 15 properties in the current quarter, gross revenue increased by 9.6%. The increase is also attributed to full-quarter contribution from four properties acquired last quarter. Consequently, MPI increased by 7.3%. Borrowing costs increased by $2.2 million, mainly due to incremental borrowings drawn to fund current quarters acquisition. Full-quarter impact of loans drawn to fund 3Q acquisition as well as absence of interest savings from loans repayment with temporary deployment of EFR proceeds pending completion of the IPTs. BI is higher. 108 million versus 96.6 million, translating to a 3.8% increase in DPU. Balance sheet-wise, MLT has a healthy balance sheet during FY21-22. We completed the acquisition of 20 properties and incurred CAPEX. both of which totals up to about $1.8 billion. Together with revaluating gains of half a billion, total investment properties as of 31st March increased from $10.8 billion to $13.1 billion. Total debt increased by $732 million to about $5 billion to part finance acquisitions. The acquisitions made during the year were also partially funded with EFR proceeds from a private placement where we raised $693 million and prep offering where we raised $200 million. The recent IPT acquisitions were also partly funded with $200 million consideration paid in MLT units. NAD per unit improved to $1.48 as compared to $1.33 last year. We remain prudent in our capital management. Average leverage ratio stood at 36.8%, while weighted average interest rate for the year is at 2.2%. Debt duration, interest cover, and adjusted interest cover remain stable and at similar levels as last year. Debt maturity profile remains well staggered with an average debt duration of 3.8 years. For the next 12 months, we have about $534 million. That's about 11% of our total debt due for refinancing. With available commuted credit facilities of $921 million on hand, This is sufficient to meet our refinancing requirements for the next financial year. To mitigate the impact of interest rate risk and net-ex-risk on MRTCPU, we have hatched 79% of our total debt into fixed rate, and 76% of our estimated distributable income for the next 12 months has also been hatched, either through currency forwards or derived in Singapore dollars. I'll pass over to James to bring us through the portfolio review.

So in the portfolio, our AAM, 70% of the portfolio is contributed by the mature markets in Singapore, Hong Kong, Australia, Japan and South Korea. In terms of operational stability, our portfolio remains fairly stable. the occupancy rate remained the site date in 4Q is at 96.7% reflecting high occupancy in India, Japan, other low occupancy in China, Singapore and South Korea. The China portfolio as of March 22 includes shell properties acquired in January 22 as part of the Combo 3 acquisition which have an occupancy rate of 91.1%. Singapore's occupancy rate dips tightly because of our decambent of tenants at 51 Benoit which is due for redevelopment end of this year. So excluding 51 Benoit with the redevelopment project, our Singapore's occupancy will be 89.9% and MLT's portfolio occupancy will be 96.9%. In terms of the lease expiry profile, about 29.9% of our leases will be expiring within the year. This is mainly contributed mainly from China. Their leases are from a shorter wheel. These are tenants that we are still engaging. Most of them have expressed interest to renew with us. The balance is contributed from Singapore. Leases expiry from Singapore and Korea. Top 10 tenants. We have four new top 10 tenants in our portfolio. coming from SF Express, number 4. Big Vest Group, which is in Hong Kong, which is doing cold storage and freezer facilities for food, operating under the brand name of Anglis in our Qingyi project in Hong Kong. And the third and fourth is Vest Logistics and G&T. G&T Express is an Indonesian company co-founded by Chinese founders. and they're expanding very fast in China after the acquisition of Best Express in China last year. Next. So 75% of our portfolio are from trade sectors or business sectors that is in the consumer related sectors and this remains very resilient and robust because of consumer demand. And our portfolio now has 800 world customers. So I'll also cover the investment portion. Last year, these are the properties we acquired in the course of the last 12 months. From 9 Changi South, on the left, is Robinson's site. As you recall, we reported that we acquired this site for strategic reasons, because we were joining a property next door, 15 Changi South, which we planned to amalgamate the two properties in due course. to redevelop into a larger mega hub facility. In terms of sponsor, the third property is Tanjung Pulau Pas in Johor, required to be sponsored in Malaysia in February this year. And in the last quarter 4Q, we also completed acquisition of 16 properties from the sponsor, 13 from China, and 12 from China, and also 3 from Vietnam. So the last property from China is going to be acquired in April of 1Q this year. In Malaysia, we also reported and announced that we are buying two plots of leasehold industrial properties in Subang. which is next to our existing Subang 3 and 4 properties. The plan is to amalgamate the two empty plots with our existing sites, Subang 3 and 4, into a much larger plot so that we can redevelop into a mega hub for logistics use in five years' time. So we need to amalgamate the sites in one year's time and do the redevelopment two years later. So this would be redeveloped into a six-story ramp-up warehouse of 1.4 million square feet. And recently, we also announced the acquisition of a newly completed property, Bexa Logistics Center in Echon. And this is leased to a single tenant, an e-commerce tenant, Hauser, who is serving coupons for furniture, storage, and delivery. And the will is 5 years. So in terms of our portfolio valuation, there was an uplift in our valuation as shared by our CFO. So the valuation for our 183 properties stands at $13.1 billion. And this is coming mainly from capital compressions in countries like Australia, Hong Kong, Korea, and partly in China. So this is the summary of our portfolio at a glance. 183 properties compared to 167 in TechQ. That's all for my reporting.