Investor Presentation November 2012 DISCLAIMER This presentation - - PowerPoint PPT Presentation

Investor Presentation

November 2012

DISCLAIMER

This presentation may contain forward-looking statements that involve risks and uncertainties. Future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other companies and venues for the sale/ distribution of goods and services, shifts in customer demands, customers and partners, changes in operating expenses, including employees wages, benefits and training, governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future

• business. You are cautioned not to place undue reliance on these forward looking statements,

which are based on current view of management of future events.

1

AGENDA

Overview of Mapletree Industrial Trust

1

Portfolio Highlights

2

2QFY12/13 Financial Performance

3

Strategy & Outlook

4

2

Overview of Mapletree Industrial Trust

Sponsor Mapletree Investments Pte Ltd (“MIPL”) Owns 30% of MIT Investment mandate Focused on income producing real estate in Singapore primarily used for industrial purposes, excluding properties primarily used for logistics purposes Portfolio 81 properties valued at S$2.7 billion 19.1 million sq ft GFA 13.2 million sq ft NLA Manager Mapletree Industrial Trust Management Ltd. 100% owned by the Sponsor Property Manager Mapletree Facilities Services Pte. Ltd. 100% owned by the Sponsor Trustee DBS Trustee Limited

Public & Inst Unitholders MIPL Manager Property Manager

30% 70%

Portfolio

• 3 Business Park Buildings
• 64 Flatted Factories

(Grouped into 27 clusters1)

• 7 Stack-up / Ramp-up Buildings

(Grouped into 1 cluster1)

• 6 Light Industrial Buildings2
• 1 Warehouse

Trustee

1 A property “cluster” consists of one or more individual buildings situated on the same land lot or adjoining land lots 2 Includes 26 Woodlands Loop, which is a property comprising 3 individual buildings

OVERVIEW OF MAPLETREE INDUSTRIAL TRUST

4

SCORECARD SINCE IPO

5 22.3 28.3 29.0 31.6 35.2 35.8 36.9 37.5 1.52 1.93 1.98 2.05 2.16 2.22 2.26 2.29 0.00 0.50 1.00 1.50 2.00 2.50 3.00 10 20 30 40 50 60 21 Oct 10* to 31 Dec 10 4QFY10/11 1QFY11/12 2QFY11/12 3QFY11/12 4QFY11/12 1QFY12/13 2QFY12/13 DPU (cents) Distributable Income (S$ million) Distributable Income (S$ million) DPU (cents)

*MIT was listed on 21 Oct 10

60.0% 18.5% 13.6% 6.9% 1.0%

• One of the largest industrial landlords in Singapore
• Total property assets of approx. S$2.7 billion
• Total GFA of approx. 19.1 million sq ft
• Total NLA of approx. 13.2 million sq ft
• Tenant base of more than 2,000 MNCs, listed

companies & local enterprises  Largest tenant base among industrial S-REITs

Stack-up / Ramp-up Buildings

Light Industrial Buildings Flatted Factories Warehouse Stack-up/ Ramp-up Buildings Business Park Buildings By Valuation As at 31 March 2012

Light Industrial Buildings

81 PROPERTIES ACROSS 4 KEY PROPERTY TYPES

6

Flatted Factories Business Park Buildings

STRATEGICALLY LOCATED ACROSS SINGAPORE

7

8

DIVERSE OFFERING OF INDUSTRIAL SPACE

Telok Blangah Kampong Ubi Redhill 1 Kallang Basin 3 Kampong Ampat Kolam Ayer 5 The Signature The Synergy The Strategy Woodlands Spectrum 1 & 2 19 Tai Seng Drive Tata Communications Exchange

Light Industrial Buildings Business Park Buildings Flatted Factories Stack-up/Ramp-Up Buildings LEGEND

Artist’s impression of the completed development for K&S

9

KEY MILESTONES

October 2010

• S$1.188 billion raised

via Initial Public Offering

• n SGX Mainboard
• Institutional Subscription
• f 39.6 times
• Public Offer

Subscription of 27.7 times

April 2011

DPU for FY10/11 of 3.45 cents exceeded Forecast by 11.3%

July 2011

• Won Tranche 2 of JTC Corporation‟s Second Phase Divestment

Exercise Portfolio at S$400.3 million

• Successfully launched a S$176.9 million Equity Fund Raising Exercise

April 2012

DPU of 8.41 cents for FY11/12 exceeded Forecast by 12.7%

May 2012

Groundbreaking

• f MIT‟s latest

build-to-suit development for Kulicke & Soffa

September 2012

• Fitch Ratings affirmed

MIT‟s „BBB+‟ Rating with a Stable Outlook

• Successful issuance of

S$45.0 million 10-year unsecured Fixed Rate Notes

October 2012

Achieved DPU of 4.55 cents for 1HFY12/13, 12.9% higher Year-on-Year

August 2011

Established a S$1.0 billion Multi-Currency Medium Term Note Programme

March 2012

Maiden issuance of S$125 million 7-year Fixed Rate Notes was well-received from a diverse base of debt investors

Portfolio Highlights

Growth Opportunity from Asset Enhancements and Acquisitions Experienced Manager and Committed Sponsor Large, Diversified and Resilient Portfolio with Market Presence Embedded Organic Growth Potential

ROBUST, RESILIENT, RELEVANT & REPUTABLE

11

$1.28 $3.71 $0.92 $1.10 $1.58 $4.02 $1.11 $1.31 $1.87 $3.80 $1.29 $1.75 $1.52 $3.47 $1.04 $1.19

$- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 Flatted Factories Business Park Buildings Stack-Up / Ramp-Up Buildings Warehouse Before Renewal After Renewal New Leases Passing Rent

For period 2QFY12/13

Gross Rental Rate S$ psf/mth

EMBEDDED ORGANIC GROWTH

12

RESILIENT PORTFOLIO PERFORMANCE

13

91.0% 91.0% 90.7% 90.3% 89.0% 89.0% 89.7% 90.3% 91.2% 92.3% 93.2% 94.3% 94.5% 95.1% 94.9% 94.9% 95.0%

$1.21 $1.23 $1.26 $1.29 $1.31 $1.31 $1.35 $1.40 $1.44 $1.45 $1.49 $1.52 $1.54 $1.53 $1.55 $1.56 $1.59

$- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 0% 20% 40% 60% 80% 100% 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Occupancy (LHS) Rental Rate (RHS)

Occupancy Gross Rental Rate S$ psf/mth

FY08/09 FY09/10 FY10/11 FY11/12 FY12/13

94.0% 91.0% 98.3% 100.0% 89.6% 94.9% 94.5% 92.4% 97.8% 100.0% 72.6% 95.0% Flatted Factories Business Park Buildings Stack-Up/Ramp-Up Buildings Light Industrial Buildings Warehouse MIT Portfolio Left Bar (1QFY12/13) Right Bar (2QFY12/13)

STABLE OCCUPANCY LEVELS

14

82.8% 61.4% 100.0% N.M. 100.0% 85.1%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Flatted Factories Business Park Buildings Stack-Up / Ramp-Up Buildings Light Industrial Buildings Warehouse Portfolio

STRONG TENANT RETENTION

15

Long Staying Tenants Retention Rate for 2QFY12/13

• 46.9% of the tenants have leased the properties for more than 4 years
• Tenant retention rate of 85.1% in 2QFY12/13

Based on NLA. Not meaningful for Light Industrial Buildings as no leases were due for renewal Average Retention Rate By number of tenants As at 30 Sep 2012

46.9%

Up to 1 yr 10.3% >1 to 2 yrs 19.2% > 2 to 3 yrs 14.1% >3 to 4 yrs 9.4% >4 to 5 yrs 9.4% >5 to 10 yrs 26.3% >10 yrs 11.2%

9.1% 31.5% 27.5% 31.9%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% FY12/13 FY13/14 FY14/15 FY15/16 & beyond

Flatted Factories Business Park Buildings Stack-up / Ramp-up Buildings Light Industrial Buildings Warehouse

STABLE RENTAL REVENUE

16 % Expiring Leases by Gross Rental Income

Portfolio WALE by Gross Rental Income = 2.4 years

As at 30 September 2012

Only 9.1% of Leases Remain Due for Renewal in FY12/13

3.6% 2.6% 2.3% 1.8% 1.7% 1.3% 1.3% 1.3% 1.0% 1.0%

0% 1% 2% 3% 4%

LARGE AND DIVERSE TENANT BASE

17

• Over 2,000 tenants
• Largest tenant contributes <4.0% of Portfolio‟s Gross Rental Income
• Top 10 Tenants forms only 17.9% of Portfolio‟s Gross Rental Income

By Gross Rental Income As at 30 September 2012

Percentage of Portfolio‟s Gross Rental Income

DIVERSITY OF TENANT TRADE SECTOR

18

By Revenue As at 30 September 2012

• Manufacturing

sector remains relevant and continues to be the largest contributor to Singapore‟s GDP¹

• Our tenant profile tracks 5 major

sectors  Manufacturing  Information & Communications  Business Services  Financial Services  Wholesale & Retail Trade which together make up more than two-thirds

• f

Singapore‟s GDP

TENANT PROFILE REFLECTS KEY ECONOMIC SECTORS

1 Real GDP based on 2005 prices

19

Manufacturing Remains a Pillar of Singapore’s Economy

32% 33% 31% 31% 17% 17% 17% 17%

12% 12% 12% 12%

11% 12% 11% 11% 4% 4% 4% 3%

24% 23% 26% 27% 50 100 150 200 250 300 350 2008 2009 2010 2011 Real GDP (S$ billion) Manufacturing Info & Comm Business Services Financial Services Wholesale & Retail Trade Others

GROWTH BY SELECTIVE DEVELOPMENT

20

Build-to-Suit Development

• Kulicke & Soffa

Asset Enhancement

• Woodlands Central

Asset Enhancement

• Toa Payoh North 1

New 6-storey high-tech industrial building for Kulicke & Soffa located at Serangoon North Ave 5 Repositioning cluster as a high- tech industrial space with extension of 6-storey wing, multi- storey car park and canteen New high-tech industrial building and amenity block with canteen, multi-storey car park and showrooms 330,000 sq ft 70,000 sq ft 150,000 sq ft

• Piling works completed
• 1st storey structural works in-

progress

• 69% of space committed by

Kulicke & Soffa

• Commenced upgrading of

facilities & façade enhancement

• Piling works in-progress
• 50% of new wing committed
• Canteen and bin centre

demolished

• Piling works in-progress

2nd Half 2013 2nd Quarter 2013 4th Quarter 2013

• Leading Asia-focused real estate and capital

management company

• Owns and manages S$19.9 billion1 of office,

logistics, industrial, residential and retail/lifestyle properties

• Extensive regional network in Singapore, China,

Hong Kong, India, Japan, Malaysia, South Korea and Vietnam

• Business model:

 Incubate, develop and rejuvenate real estate assets  Unlock asset value through origination of REITs and private real estate funds

Benefits to MIT 1 Leverage on Sponsor‟s network Leverage on Mapletree‟s financial strength, market reach and network 2 Alignment of Sponsor‟s interest with Unitholders Committed Sponsor‟s stake of 30% in MIT 3 Development capabilities Able to support growth of MIT by developing and warehousing assets to offer to MIT 4 Right of First Refusal to MIT Sponsor has granted right of first refusal to MIT over future sale or acquisition of industrial or business park properties2

EXPERIENCED MANAGER & COMMITTED SPONSOR

21

Proven management track record

• Acquired and managed portfolio from JTC since 1 July 2008 and grew revenue through the financial crisis
• Sourced for, developed and managed portfolio under Mapletree Industrial Fund

1 As at 31 March 2012 2 Excluding Mapletree Business City and The Comtech

2QFY12/13 Financial Performance

KEY HIGHLIGHTS

23

• Consistent

growth driven by better

• perating

performance and contributions from Acquisition Portfolio



2QFY12/13 Distributable Income rose by 18.4% y-o-y to S$37.5 million



DPU increased by 11.7% y-o-y to 2.29 cents

• Resilient Portfolio with higher average occupancy and rental rates



Achieved higher average passing rental rate of S$1.59 psf/mth



Average portfolio occupancy rate stable at 95.0%



Positive rental revisions of between 8.4% and 23.4% achieved across all property segments

• Enhanced capital structure with extended debt maturity profile



Completed refinancing of all borrowings due in FY12/13



Healthy balance sheet with weighted average tenor of debt extended to 3.2 years and weighted all-in funding cost lowered to 2.3%

24

2QFY12/13 (S$’000) 2QFY11/12 (S$’000)  / () Gross revenue 68,218 59,419 14.8% Property operating expenses (19,804) (17,887) 10.7% Net Property Income 48,414 41,532 16.6% Interest on borrowings (6,776) (5,626) 20.4% Trust expenses (5,734) (5,527) 3.7% Net income before tax & distribution 35,904 30,379 18.2% Net non-tax deductible items 1,566 1,268 23.5% Adjusted taxable income available for distribution to Unitholders 37,470 31,647 18.4% Distribution per Unit (cents) 2.29 2.05 11.7%

STATEMENT OF TOTAL RETURNS (YEAR-ON-YEAR)

25

2QFY12/13 (S$’000) 1QFY12/13 (S$’000)  / () Gross revenue 68,218 66,864 2.0% Property operating expenses (19,804) (18,520) 6.9% Net Property Income 48,414 48,344 0.1% Interest on borrowings (6,776) (6,994) (3.1%) Trust expenses (5,734) (5,557) 3.2% Net income before tax & distribution 35,904 35,793 0.3% Net non-tax deductible items 1,566 1,104 41.8% Adjusted taxable income available for distribution to Unitholders 37,470 36,897 1.6% Distribution per Unit (cents) 2.29 2.26 1.3%

STATEMENT OF TOTAL RETURNS (QTR-ON-QTR)

HEALTHY BALANCE SHEET

26

30 Sep 2012 30 Jun 2012 Total Assets (S$‟000) 2,806,404 2,824,565 Total Liabilities (S$‟000) 1,151,380 1,169,919 Net Assets Attributable to Unitholders (S$’000) 1,655,024 1,654,646 Net Asset Value per Unit (S$) 1.02 1.02

206 344 126 139 64 125 45 50 100 150 200 250 300 350 400 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 Gross Debt (S$ million) Financial Year Bank Borrowings MTN

20% 33% 12% 13% 6% 12% 4%

REFINANCING COMPLETED FOR FY12/13

27

Enhanced capital structure with extended debt maturity profile

 Successful issuance of S$45 million

10-year fixed rate notes

 Early refinancing of borrowings due in

FY13/14

 Debt maturity extended to year 2022  Increased diversity of funding sources

28

PROACTIVE CAPITAL MANAGEMENT

As at 30 Sep 2012 As at 30 Jun 2012 Total Debt S$1,048.5 million S$1,069.2 million Aggregate Leverage Ratio 37.2% 37.7% Fixed as a % of Total Debt 87% 85% Weighted Average Tenor

• f Debt

3.2 years 2.7 years

Proactive capital management to maintain an

• ptimal

capital structure with financial flexibility

 100% of loans unsecured with

minimal covenants

 High interest coverage ratio of

6.3 times

 Sufficient facilities to fund

• ngoing projects

 Affirmed „BBB+‟ rating with

Stable Outlook by Fitch Ratings

2Q FY12/13 1Q FY12/13 Weighted Average All-in Funding Cost 2.3% 2.5% Interest Coverage Ratio 6.3 times 6.1 times

Strategy & Outlook

30

TO DELIVER SUSTAINABLE GROWTH IN DPU

• Proactive leasing and marketing initiatives
• Deliver quality service and customised solutions
• Improve operational efficiency to reduce operating cost
• Implement asset enhancement initiatives

ACTIVE ASSET MANAGEMENT

• Identify and source acquisition and development
• pportunities
• Conduct feasibility studies to consider impact on Unitholders

and tenants

• Pursue investments with the potential for long-term returns

ACQUISITION GROWTH / SELECTIVE DEVELOPMENT

• Maintain a strong balance sheet
• Employ appropriate capital structure
• Diversify sources of funding
• Active interest rate management

CAPITAL AND RISK MANAGEMENT

INDUSTRIAL PROPERTY MARKET DYNAMICS

31 DEMAND AND OCCUPANCY FOR FLATTED FACTORIES DEMAND AND OCCUPANCY FOR BUSINESS PARKS

Source: URA/Colliers International Singapore Research, November 2012

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%

• 20

20 40 60 80 100 120 140 160 2003 2004 2005 2006 2007 2008 2009 2010 2011 Jan - Sep 2012 ('000 sq m) Net New Demand Occupancy Rate 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 50 100 150 200 250 300 350 2003 2004 2005 2006 2007 2008 2009 2010 2011 Jan - Sep 2012 ('000 sq m) Net New Demand Occupancy Rate

MARKET OUTLOOK

32

• The economy contracted by 1.5% for the quarter ended 30 September

2012 on a seasonally-adjusted quarter-on-quarter annualised basis, as compared to 0.2% expansion in the previous quarter1



Due to a 3.9% quarter-on-quarter decline in manufacturing sector

• Nonetheless, the Singapore economy is on track to grow by 1.5% to 2.5%

in 20121

• Average rents for industrial real estate2 for 2QFY12/13 :



Business Park Space : S$3.91 psf/mth (+0.3%)



Factory (Ground Floor) : S$2.45 psf/mth (+2.1%)



Factory (Upper Floor) : S$2.15 psf/mth (+2.4%)

1 Ministry of Trade and Industry (Advance Estimates) 2 Colliers Market Report

MAINTAINING MOMENTUM OF GROWTH

33

RESILIENT AND ROBUST PORTFOLIO

• Higher Portfolio occupancy and rental rates
• Positive rental revisions achieved across

segments

• Limited leasing risk with only 9.1% of

Portfolio‟s leases due for renewal in FY12/13 FINANCIAL FLEXIBILITY AND HEALTHY BALANCE SHEET

• No outstanding borrowings due in FY12/13
• Increased weighted average tenor debt of

3.2 years

• High interest cover ratio of 6.3 times

GROWTH BY SELECTIVE DEVELOPMENT

• Development of AEIs and BTS on track
• Focus on value-adding development projects

Thank You

Investor Relations Contact Ms Melissa Tan Senior Manager, Investor Relations DID: +65 6377 6113 Email: melissa.tanhl@mapletree.com.sg