Mapletree Logistics Trust

Good afternoon. Welcome to MLT's results briefing for the 4th quarter and 12 months ended March 2023. Before we start some housekeeping rules, those who are dialing in via Webex, please put yourself on mute. Okay, now I'd like to hand over the session to our CFO, Charmaine Lam.

Afternoon, everyone. Thank you for taking the time to attend MLT's 4Q-FI2223 as well as full year results. I'll first bring you through the key highlights of 4Q. Year-on-year, gross revenue is down 2.2%. at $178.9 million. NPI is down 1.8% year-on-year. The drop mainly due to FX, where the regional currencies have depreciated against SING dollars. For this quarter, we are declaring a DPU of 2.268 cents, that's the same as 4Q last year. Our portfolio remains resilient, with a portfolio occupancy of about 97%. Rail is at 3.1 years. For this quarter, we also recorded an average rental reversion of a positive 3.1%. Portfolio revaluation gain for this financial year is about S$224 million. On the capital management front, aggregate leverage is at 36.8%, the same as last financial year. We have an average debt maturity of about 3.8 years, and 84% of our debt has been hedged into fixed rate, while 77% of our income stream for the next 12 months has been hedged into SING dollars. In line with our portfolio rejuvenation strategy, on the 29th of March, we announced the proposed acquisition of eight logistic assets in Japan, Australia and South Korea for $904 million. Together, we also announced the potential acquisition of two logistic assets in China for about $210 million, both of which are a portfolio acquisition from CBRE IM. On the same day, we also announced the potential divestment of a property in Hong Kong for $100 million. And in January, we announced the divestment of two properties in Malaysia for about $15 million. and on the 31st of March we completed the divestment of 3 Changi South Lane for $22 million. The divestment gain of about $5.7 million will be distributed over two quarters, first in 4Q this financial year and 1Q next financial year. On the 30th of March, together with the acquisition announcement, we launched an EFR to raise $200 million the issue was 3.9 times oversubscribed and we issued at a 1.5% discount to adjusted GWAPs. We also reset our PERPs of about 180 million. The new distribution rate would be 5.2%. So for 4Q versus 4Q last year, For 4Q last year, we started with 167 properties and ended with 183 properties post the completion of acquisitions from the sponsor. For this financial year, we started the quarter with 186 properties. With the divestment of 3 Chinese South, we ended with 185 properties. Gross revenue is down 2.2%. mainly due to the depreciation of regional currencies against SING dollars. Although this is mitigated by contribution from the enlarged portfolio as well as full quarter contribution from acquisition made last financial year. Property expenses is higher due to the enlarged portfolio and net property is down by 1.8% because of FX. Borrowing costs About 40% of the increase is due to incremental borrowings taken to fund acquisitions and with the rest due to higher average interest rate. After accounting for a hedging gain of about 3.1 million, divestment gain of 2.9 million, management fees as well as other adjustments, our DI is higher at 109 million, translating to a DPU of 2.268 cents same as last year over a large unit base.

I want to interrupt Charmaine here. So if you look at these sets of numbers, the gross revenue 178 compared to last year 182, just to let you have further flavor on the currency. So 10 million decline is due to Forex. Our hedging gain is 3 million. So if you want to say on the hindsight, perhaps we should have hedged more. So if you take out the $10 million of Forex loss, net off the hedging gain of $3 million, you are looking at a loss of $7 million. Without this, our overall gross revenue would have been up $6.6 million. Go back to the previous slide, please.