Mapletree Logistics Trust

Hi, good afternoon. Welcome to MLT's results presentation for the fourth quarter and full year ended March 2024. We have the full management team here with us today. To start off the presentation will be Charmaine, our CFO. She will go through the key highlights.

Hi, everyone. Thanks for dialing in. I will first run through the highlights of 4Q FY23-24. So for the For the 4Q, our gross revenue increased 1.2% year-on-year to end at $181 million. MPI is higher by 0.6% year-on-year at $155.3 million. However, DPU is 2.5% lower at $2.211 versus the $2.268 we announced last year. In terms of portfolio, our portfolio remains resilient. of the country remains stable at 96%. Average rental reversion is a positive 4.9%, including China. Excluding China, we're looking at a positive 7.1%. Bail remains at about three years. Capital management-wise, our leverage ratio is at 38.9%. About 84% of our total debt has been hedged into fixed rates. with an average debt maturity of 3.8 years. About 78% of our income for the next 12 months has been hedged into $10. So we continue to be active in our rejuvenation of the portfolio. We started 4Q with 187 properties. We completed the divestment of 73 Toa South in Singapore and completed acquisition We completed the divestment of Sunsea Toa South in Singapore and completed the acquisition of one India asset during the quarter. So our portfolio remains at about 187 properties. During the quarter, we also announced the proposed acquisition of three well-located grade A assets from the sponsor of about $230 million, one in Malaysia and two in Vietnam. In terms of sustainability, about 39% of our portfolio is green certified. and we are generating about 59.8 megawatt peak of solar energy and also during the quarter itself we issued our maiden 75 million green bonds under the green finance framework. So going to the details of all few results, so for this quarter our financial performance continues to be impacted by weaker performance from China, FX losses due to weakening of the regional currencies as well as higher borrowing costs. Cost revenue is 1.2% higher, mainly due to contributions from acquisitions made at the beginning of the year. Also, higher contribution from existing properties. However, this is offsetted by lower contribution from China, which is down about 8% year-on-year, absence of revenue contribution from divested properties as well as currency weakness. of the expenses is higher mainly due to acquisitions made at the beginning of the financial year. Cost revenue in MPI would have increased by 3.6% and 3% respectively on a constant currency basis. For borrowing costs, we are higher by 6.9%. This is mainly due to higher average interest rate, due to higher base rate on our unhatched loans, as well as higher replacement rates on the hedges that have expired during the financial year. This is partly offset by as well as incremental borrowing cost to fund the current year's acquisition. Then this is the higher interest cost is actually offset by loan repayment with proceeds from private placement as well as divestment proceeds. Including our divestment gave of $12 million. Amounts distributable to unit holders would have increased 1.1% or VPU fell by 2.5% due to the enlarged unit base. For the 12-month results year-on-year, the reasons behind the variances in terms of gross revenue, NPI, borrowing costs are largely the same as 4Q this year versus 4Q last year. So we are reporting a higher DPU of 9.003 cents, which is 0.1% lower than 9.011 cents for the fall of last year. In quarter 4Q versus 3Q, revenue is down 1.7%, mainly due to absence of revenue contribution from divested properties, as well as global contribution from China and Singapore. For Singapore, it's really because of rental incentives given in 4Q, as well as currency weakness, which is about a million lower quarter on quarter. Property expenses is higher, mainly due to higher property tax and maintenance expenses, MPI 2.6% lower and borrowing cost increased due to higher average interest rate as well, partly offset by loan repayment with the proceeds from divestment. The DPU is 2.9% lower than 2.25% in 3Q. Our balance sheet as of 31st March 2024 versus last year, IP has increased from $12.8 billion to $13.2 billion, mainly due to acquisitions of about $1 billion during the financial year, partly offset by divestment of about $180 million and currency translation loss of about $470 million. We also had a $1.8 million net share value loss in terms of the IP value. That increase from $4.9 billion to $5.3 billion, mainly because our investments of about $1 billion during the year is funded with $180 million of divestment proceeds, a mix of equity as well as debt. So NAV has moved from $1.44 last year to $1.38 this year because of FX translation loss due to the returning of regional currencies. leverage ratio moved from 36.8% to 38.9% and our weighted average interest rate 2.7% compared I mean 2.7% this year compared against 2.7% last year the interest cost is kept stable notwithstanding the rising interest rate environment mainly because of the proactive capital management we do so this is due to I mean number one borrowing JPY loans to fund our acquisition, as well as the active utilization of divestment proceeds and EFR proceeds to pare down the more expensive loans. We expect this to increase to about 3% in the new financial year. Our debt duration remains stable at 3.8 years, and adjusted interest cover is at 3.7 times and 3.1 times respectively. So our debt maturity profile remains well staggered with a healthy average debt duration of three to eight years. We have about $950 million available committed credit facilities on hand, more than sufficient to refinance the $217 million that's coming due in the new financial year. In financing, total about $964 million, accounting for about 18% of our total borrowings. In terms of interest rate risk management, about 84% of our total debt has been hedged or drawn in fixed rates. As for Forex, about 78% of our total amount distributable in the next 12 months have been hedged in percent dollars. And the next slide would be the distribution details for this quarter's distribution. I'll now hand over to James to go through the portfolio update.

Hi everyone, James here. So I'll update the portfolio. In 4Q, in terms of diversification, we still offer a good mix of diversification between the developed markets, which contribute 70% of our portfolio AUM and gross revenue. This gives us much stability that we need. The other 30% comes from the developing markets, which offers us the growth potential that we need. In terms of the occupancy rates, our portfolio remains very resilient. We registered 96% occupancy, no change from the previous quarter. Most of the countries recorded stable occupancy rates, except for Korea and Australia. In Korea, there were these expiries in properties, the older spec property that we have in Korea. In Australia, it was due to a non-renewal of a small lease in Brisbane, which overall we achieved 2.9% positive rental reversion in a portfolio in 4Q as compared to 3.8% in the previous quarter. Without China, the portfolio reversion rate would have been positive 7.1% because China's rental reversion rate was a negative 10% in 4Q. Overall, we have a well-structured lease exploit profile in the next few years. And our top 10 tenants now contribute about 22% of overall gross revenue. And the top 10 tenants are coming from a mix of e-commerce companies and 3PL companies supporting those e-commerce companies, and also Hypermart in Australia and 3PL supporting the consumer staples sector in our portfolio.