1 q11 m_log results presentation _final
TRANSCRIPT
Results for the First Quarter Ended 31 March 2011
DisclaimerThis Presentation is focused on comparing results for the three months ended 31 March 2011 versus results achieved in the three months ended 31 March 2010 and versus results achieved in the previous quarter ended 31 December 2010. This shall be read in conjunction with Mapletree Logistics Trust’s financial results for the three months ended 31 March 2011 in the SGXNET announcement.
This release may contain forward-looking statements that involve risks and uncertainties. Actual 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 similar developments, shifts in expected levels of property rental income, changes in operating expenses, including employee wages, benefits and training, property expenses and 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 on future events.
2
Agenda
Key Highlights
Capital Management
Resilient Portfolio
Outlook
Summary
Appendix
3
Key Highlights
Stable and positive 1Q 2011 results Amount Distributable increased by about 22% to S$37.5 million for 1Q 2011 Improvement in results attributed to contribution from acquisitions completed
in last 2 quarters DPU for 1Q 2011 grew to 1.55 cents from 1.50 cents in 1Q 2010
Overall occupancy rate improved marginally High occupancy rate of 98.3%; contributed by the increase in Singapore and
Hong Kong
No balance sheet risk Comfortable gearing ratio of 39.4% as at 31 Mar 2011 Interest cover ratio increased to 6.7x as at 31 Mar 2011 Debt maturity profile improved with extension of HKD loans – 2012 debt
tower reduced to 33% from 53%
Key Highlights
5
Key Highlights (cont’d) Yield + Growth strategy
Continued focus on yield optimisation and proactive portfolio management
Growth through acquisition pipeline in Singapore and rest of Asia
Disciplined approach in respect to acquisitions
2 accretive acquisitions in 1Q2011 at initial NPI yield of 7% - 8%
Greenfield pipeline from Sponsor approximately S$300 million completed or nearly completion; MapletreeLog has right of first refusal.
Portfolio rejuvenation initiatives
On-going effort to evaluate and identify properties for rejuvenation potential create additional value and improve marketability
Asset enhancement initiatives:
Multi-Q Centre: S$4 mil to add 3-storey warehouse; increase GFA by 4,100 sqm
Divestment of two Singapore assets; proceeds to fund acquisition of Jian Huang Building recycle capital for organic growth
Exploring potential redevelopment of existing asset to unlock value
6
Statement of Total Return – 1Q 2010 vs 1Q 2011
7
In S$ thousands 1Q 2010 1Q 2011 Variance
Gross Revenue 51,406 62,244 21%
Property Expenses (5,632) (7,571) 34%
Net Property Income (“NPI”) 45,774 54,673 19%
Amount Distributable 30,840 37,536 22%
Available DPU 1.50 1.55 3%
Property Expenses to Gross Revenue Ratio
11% 12% 1%
NPI to Gross Revenue Ratio 89% 88% 1%
Amount Distributable to Gross Revenue Ratio
60% 60% 0%
Statement of Total Return – 4Q 2010 vs 1Q 2011
8
In S$ thousands 4Q 2010 1Q 2011 Variance
Gross Revenue 61,006 62,244 2%
Property Expenses (7,164) (7,571) 6%
Net Property Income (“NPI”) 53,842 54,673 2%
Amount Distributable 36,844 37,536 2%
Available DPU 1.55 1.55 0%
Property Expenses to Gross Revenue Ratio
12% 12% 0%
NPI to Gross Revenue Ratio 88% 88% 0%
Amount Distributable to Gross Revenue Ratio
60% 60% 0%
Scorecard Since IPO (Amount Distributable)
1: Period for 3Q 2005 is from 28 Jul 2005 (Listing Date) to 30 Sep 20052: Decline in portfolio asset value is due to currency movements3: Excludes the one-time consideration from Prima Limited to extend the leases and licenses with them at 201 Keppel Road by 8 years. For details, please see SGXNET announcement dated 31 December 2009. Including this, amount distributable is S$31.8 million for 4Q 2009 and S$ 117.9 million for FY 2009.
9
2011Asset Value
(S$)422m 462m 715m 1.0b 1.1b 1.4b 1.5b 2.1b 2.4b 2.4b 2.5b 2.5b 2.7b 2.9b 3.0b 2.9b2 2.9b 2.9b 3.0b 3.0b 3.4b 3.5b 3.6b
Lettable Area (mil sqm)
0.8 0.8 0.9 1.1 1.2 1.4 1.5 1.6 1.6 1.8 1.9 2.0 2.1 2.1 2.1 2.1 2.1 2.2 2.2 2.2 2.4 2.5 2.5
20102005 2006 2007 2008 2009
1518
2428
3641
49
58 61
70 7276 79 81 81 81 81 82
84 86 91 96 98
4.36.0
8.3 9.6 10.7 11.815.3
17.719.1 19.7 21.0
22.6
25.428.3 28.6 28.7 28.8
29.53
30.8 30.9 31.5
36.9 37.5
0.0
4.0
8.0
12.0
16.0
20.0
24.0
28.0
32.0
36.0
40.0
0
20
40
60
80
100
120
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11
Am
ou
nt D
istrib
uta
ble
(S$
m)
Nu
mb
er
of
pro
pe
rtie
s
1
FY06 Amt Dist = S$40.4m FY07 Amt Dist = S$71.8m FY08 Amt Dist = S$97.4m FY09 Amt Dist = S$115.5m FY10 Amt Dist = S$130.1m
31.8
CAGR = 48%
FY 11
Scorecard Since IPO (DPU)
1: Period for 3Q 2005 is from 28 Jul 2005 (Listing Date) to 30 Sep 20052: Drop in DPU in 4Q 2008 is due to increase in number of units following the 3 for 4 rights issue in August 2008 which increased the number of units from 1,108 million to 1,939 million3: Decline in portfolio asset value is due to currency movements4: Excludes the one-time consideration from Prima to extend the leases and licenses with them at 201 Keppel Road by 8 years. For details, please see SGXNET announcement dated 31 December 2009. Including this, DPU is 1.59 cents for 4Q 2009 and 6.02 cents for FY 2009.
10
2011Asset Value
(S$)422m 462m 715m 1.0b 1.1b 1.4b 1.5b 2.1b 2.4b 2.4b 2.5b 2.5b 2.7b 2.9b 3.0b 2.9b3 2.9b 2.9b 3.0b 3.0b 3.4b 3.5b 3.6b
Lettable Area
(mil sqm)0.8 0.8 0.9 1.1 1.2 1.4 1.5 1.6 1.6 1.8 1.9 2.0 2.1 2.1 2.1 2.1 2.1 2.2 2.2 2.2 2.4 2.5 2.5
2005 2006 2007 2008 2009 2010
15 18 24 2836 41
4958 61
70 72 76 79 81 81 81 81 82 84
8691 96 98
0.80
1.051.10
1.19
1.32
1.45 1.481.59
1.721.78
1.902.04
1.84
1.46 1.47 1.48 1.48
1.484
1.50 1.50 1.54 1.55 1.55
0.50
0.70
0.90
1.10
1.30
1.50
1.70
1.90
2.10
0
20
40
60
80
100
120
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11
Actu
al DP
U (cen
ts)N
um
ber
of p
rop
ertie
s
1
2
FY06 DPU = 5.06 cents FY07 DPU = 6.57 cents FY08 DPU = 7.24 cents FY09 DPU = 5.91 cents FY10 DPU = 6.09 cents
1.59
CAGR = 13%
FY11
Capital Management
Balance Sheet
12
31 Dec 2010 31 Mar 2011
Total Assets 3,614,277 3,708,621
Including Investment Properties
3,471,1821 3,575,5531
Total Liabilities2 1,539,1213 1,631,5854
Net Assets Attributable to Unitholders
2,072,775 2,073,164
NAV Per Unit S$0.855 S$0.856
Footnotes:1. Includes S$12 million investment property held-for-sale (9 Tampines St 92) classified under current
assets.2. Total liabilities increased by S$92.5 million largely due to additional JPY borrowings taken to fund the
purchase of Hiroshima. 3. Includes derivative financial instruments, at fair value, liability of S$42.1 million.4. Includes derivative financial instruments, at fair value, liability of S$35.5 million.5. Includes net derivative financial instruments, at fair value, liability of S$35.8 million. Excluding this, the
NAV per unit would be S$0.87.6. Includes net derivative financial instruments, at fair value, liability of S$24.3 million. Excluding this, the
NAV per unit would be S$0.86.
Capital Management
13
31 Mar 2010 31 Mar 2011
Aggregate Leverage Ratio 37.7% 39.4%
Total Debt S$1,354 million S$1,452 million
Weighted Average Annualised Interest Rate 1 2.2% 2.2%
Average Duration 2.2 years 2.2 years
Interest Service Ratio 2 6.0 times 6.7 times
Footnote:1. For the quarter ended.2. Ratio of EBITDA over interest expense for period up to balance sheet date.
0
100
200
300
400
500
600
700
800
Maturingin 2011
Maturingin 2012
Maturingin 2013
Maturingin 2014
Maturingin 2015
Maturingin 2016
Maturingin 2017
SGD HKD JPY MYR CNY KRW USD
0
100
200
300
400
500
600
700
800
Maturingin 2011
Maturingin 2012
Maturingin 2013
Maturingin 2014
Maturingin 2015
Maturingin 2016
Maturingin 2017
SGD HKD JPY MYR CNY KRW USD
Debt Profile as at 31 Mar 11
Debt Amount SGD1,354 mil
Debts as at 31 Dec 10
Average Duration ~ 2.20 yearsSGD ‘mil
SGD1,452 mil
Average Duration ~ 2.22 yearsSGD ‘mil
Debts as at 31 Mar 11
SGD247mil
17%
33%
18%17%
3%
12%
SGD172mil
13%
18%
53%
3%
13%
14
Natural Hedge – Our Preferred Hedge StrategyLocal currency loans set up natural hedge against currency fluctuations
Gearing level – by country (as at 31 Mar 2011)
7%
42%
89%
45%
98%
39%
93%
58%
11%
55% 61%
2%
100%
0%
20%
40%
60%
80%
100%
Equity % 93% 58% 11% 55% 2% 61% 100%
Debt % 7% 42% 89% 45% 98% 39% 0%
Singapore Hong Kong Japan Malaysia China Korea Vietnam
15
SGD61%
Hedged (HKD, JPY, MYR, KRW)
28%
Unhedged 11%
FY2011
Approximately 89% of Amount Distributable Hedged for FY 2011
16
Sufficient resources to meet 2011 debt obligations
Comfortable gearing ratio of 39.4%, which is lower than our medium-term target range of 40%-50%
Healthy interest cover ratio of 6.7 times
Hedged / Fixed rate borrowings at approximately 65%
All loans are unsecured with minimal financial covenants
Credit rating of Baa2 with outlook upgraded to Positive by Moody’s in October 2010
Prudent Capital Management
17
Resilient Portfolio
Resilient Portfolio
Occupancy rate high at about 98.3% Higher occupancy rates for Singapore, China and Hong Kong
Diversification in terms of geography, customers and end-users Exposure to wide variety of stable end-users
Stability from long leases Weighted average lease term to expiry (“WALE”) maintained at about 6 years
Ample cushion from security deposits Equivalent to about 60% of FY 2011 annualized gross revenue, or average of
7.5 months coverage (Singapore only: 10.8 months)
Low arrears ratio Typically less than 1% of annualized gross revenue
19
In FY 2011, around 13.6% of leases (by NLA) are up for renewal – these are mostly in Singapore, Hong Kong, China and Malaysia
Successfully renewed/replaced 94% of NLA due in 1Q 2011Renewal/replacement at higher average rental
Successful Lease Renewals in 2011
NLA renewed/replaced in FY 2011 (in ’000 sqm)
20
Singapore Hong Kong China Malaysia Total Area1 % of 2011 renewals
Total renewable for FY 2011
164 82 36 49 331(13.6% of total portfolio)
100%
Spaces renewed/ replaced to date
41 30 23 15 109(4.5% of total portfolio)
33%
Balance spaces renewable for 2011
123 51 13 34 222(9.1% of total portfolio)
67%
1 - Excludes about 7,500 sqm of a lease renewed in 1Q 2011 that is due in 4Q 2011. If we include this, balance space renewable in 2011 is 229,000 sqm or 9.4% of portfolio NLA.
Successful Lease Renewals in FY 2011
21
% R
enew
ed t
o d
ate
0%
20%
40%
60%
80%
100%
By Gross Revenue By Lettable Area
32% 33%
68% 67%
Balance to be renewed Renewed to date
High Occupancy Levels Sustained 31 Dec 10
(96 properties)31 Mar 11
(98 properties )
Weighted Average Occupancy Rate 98.0% 98.3%
22
0%
1%
2%
3%
4%
5%
1.0%
4.1%3.9%
2.8%3.0% 2.8% 2.8% 2.8%
2.5%2.2%
4.2%
3.8% 3.6%
2.9% 2.7% 2.7% 2.6% 2.6% 2.4%2.0%
96 properties as at 31 Dec 2010
98 properties as at 31 Mar 2011
Marubeni Corp
Nippon
Access
TeckWahGroup
NEC Logistics
Nichirei Kyoto
SH Cogent TL
Logicom
Menlo
Group
Toshiba
Broup
Oji Transportation
Diversified Customer Mix Portfolio Stability
Multinational logistics operators
Singapore listed groups
Private groups
23
306 customers in portfolio; no single customer accounts for >5% of total revenue
Top 10 customers ~ approx 30% of total gross revenue
Non-FTZ 3PL46.5%
Distribution Centre27.4%
Industrial Warehousing
13.6%
Food & Cold Storage
5.6%
Oil & Chemical Logistics
2.6%
FTZ 3PL4.3%
Non-FTZ 3PL44.5%
Distribution Centre25.7%
Industrial Warehousing
14.3%
Food & Cold Storage
8.5%
Oil & Chemical Logistics
2.5%
FTZ 3PL4.5%
Professional 3PLs Face Leasing StickinessGross revenue contribution by trade sector
(96 properties as at 31 Dec 2010)Gross revenue contribution by trade sector
(98 properties as at 31 Mar 2011)
24
FTZ 3PL + Non-FTZ = 50.8% FTZ 3PL + Non-FTZ = 49.0%
Inland52%
Mixture (Air/Sea/In-land)26%
Sea11%
Air11%
Exposure To Stable End-users
Gross revenue contribution by customers distribution channel1 (as at 31 Mar 2011)
Stable gross revenue contribution by end-user industry (as at 31 Mar 2011)
1: Analysis is for customers who are 3PLs and distributors
25
Consumer Durables & Staples
29%
F&B18%
Materials, Construction
& Engineering9%
Information Technology
8%
Industrials6%
Electrical & Electronics5%
Energy & Marine5%
Health Care4%
Commercial Printing4%
Utilities & Telecommunication Services
3%Chemicals
1%
Others7%
Single-user vs Multi-tenanted Buildings (By Gross Revenue)
26
Single-tenanted vs multi-tenanted by gross revenue (as at 31 Mar 11)
Single-tenanted
63%
Multi-tenanted
37%
0%
10%
20%
30%
40%
50%
Expiring in 2011 Expiring in 2012 Expiring in 2013 Expiring in 2014 Expiring in 2015 Expiring after 2015
13.7%11.7%
5.8%8.2%
14.1%
43.8%
10.4% 10.7%7.8%
10.1%13.1%
47.2%
% o
f p
ort
foli
o N
LA
96 properties as at 31 Dec 2010
98 properties as at 31 Mar 2011
Long Leases Provide Portfolio StabilityWeighted average lease term to expiry: ~ 6 years
Lease expiry profile by NLA
27
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
2011 2012 2013 2014 2015 > 2016
5.3%
3.8%
4.1%
7.7%
7.5%
30.9
%
3.2%
2.4%
1.0%
0.3%
0.1% 1.
3%
0.5% 1.
4%
0.1% 2.
0%
4.0%
1.2%
1.4% 2.
3%
2.2%
0.0%
0.0% 0.6%
0.0%
0.0%
0.0%
0.2%
0.3%
13.1
%
0.0% 0.4%
0.6%
0.0%
0.0%
0.0%
0.0% 0.4%
0.0%
0.0% 1.
2%
0.2%
Singapore Japan Hong KongChina Malaysia South KoreaVietnam
Long Leases Provide Portfolio StabilityLease expiry profile by NLA (by country)
28
Lease expiry by year (entire portfolio)
As
% o
f to
tal
po
rtfo
lio
NL
A
10.4% 10.7% 7.8% 10.1% 13.1% 47.2%
Long Land Leases Portfolio StabilityWeighted average of unexpired lease term of underlying land: approx 47 yrs1
1: Excluding freehold land
Remaining years to expiry of underlying land lease
29
0.8%
10.5% 14.0%
30.8%
21.8%
5.5%
16.6%
0.5%
10.3%
12.2%
25.7%
21.3%
4.0%
25.9%
0%
10%
20%
30%
40%
0 - 20 yrs 21 - 30 yrs 31 - 40 yrs 41 - 50 yrs 51 - 60 yrs > 60 yrs (excluding freehold land)
Freehold
% o
f Tot
al L
etta
ble
Are
a
96 properties as at 31 Dec 2010 98 properties as at 31 Mar 2011
Asset Rejuvenation
Proactive portfolio management to unlock values in
existing assets
Asset rejuvenation initiatives to better meet customers’
needs Retrofitting and/or enhancement add value through maximising
land use and/or structural efficiency
Redevelopment efforts unlock value through improving
prospects of properties with new, modern building specifications
or maximising plot ratio.
Disposal recycle capital to optimise yield and provide organic
growth through replacing less-performing assets for better
yielding properties
30
Outlook
Outlook & Strategy for 2011
Seizing Opportunities, Expanding Horizons
“Yield + Growth” strategy
Growth via acquisitions and development
• Actively pursue quality assets via third-party acquisitions
• Value proposition to customers: Strategic customer relationships; “Follow-the-Client”
• Sponsor continues to develop pipelines
Proactive capital management strategy
• Sustainable long term gearing levels
• Manage refinancing risks through spreading out debt maturities
• Active hedging to manage interest rate and foreign exchange fluctuations
• Optimal capital structure
Yield Optimisation on existing portfolio
• Active leasing & marketing efforts - focus on higher quality tenancies
• Manage expenses• Proactive asset
management to enhance asset value with asset enhancement and redevelopment initiatives
Global economic conditions improve but remain vulnerable to external shocks
32
Summary
In Summary Amount distributable: Approx S$38 million in 1Q 2011; around 22%
higher than in 1Q 2010
DPU for 1Q 2011 increased to 1.55 cents from 1.50 cents in 1Q 2010
Existing portfolio continue to provide stability and organic growth
Announced acquisitions in 1Q 2011 will contribute fully to revenue and DPU in 2Q 2011
Continue to focus on yield optimisation, managing occupancy and rates
Continue to seek out accretive acquisitions Experienced team with proven track record Maintain rigorous asset selection criteria Maintain financial discipline: Acquisition accretion is tested against
WACC of debt and equity for fair pricing
Proactive capital management to back growth plans
34
Q&A Session
Thank You
Appendix
Distribution Details
Distribution Time Table
Last day of trading on “cum” basis 27 April 2011, 5:00pm
Ex-date 28 April 2011, 9:00am
Books closure date 3 May 2011, 5:00pm
Distribution payment date 30 May 2011
Counter Name Distribution Period Distribution per unit (SGD) Payment Date
MapletreeLog 1 Jan 2011 – 31 Mar 2011 1.55 cents 30 May 2011
38
Attractive Yield vs Other Investments
1: Based on MapletreeLog's closing price of S$0.90 per unit as at 31 Mar 11 and annualised 1Q 2011 DPU of 6.2 cents 2: Bloomberg3: Average S$ 12-month fixed deposit savings rate as at 31 Mar 114: Prevailing CPF Ordinary Account interest rate
39
Geographical Diversification (by NPI)
40
4Q 20102
1Q 20113
1Q 20101
Foot note : 1) 1Q 2010 started with 82 properties and ended with 84
properties. 2) 4Q 2010 started with 91 properties and ended with 96
properties. 3) 1Q 2011 started with 96 properties and ended with 98
properties.
Year-on-Year 1Q 2010 vs 1Q 2011
Quarter-on-Quarter
4Q 2010 vs 1Q 2011
Singapore50.0%
Japan23.0%
Hong Kong15.7%
China4.7%
Malaysia4.1%
South Korea2.0% Vietnam
0.5%
Singapore51.9%
Japan16.2%
Hong Kong20.8%
China6.0%
Malaysia4.5%
South Korea0.6%
Vietnam0.0%
Singapore49%
Japan23%
Hong Kong16%
China5%
Malaysia4%
South Korea2%
Vietnam1%
Single-tenanted vs Multi-tenanted Assets (by Gross Revenue)
41
Country split by MTB Country split by SUA
Single-tenanted vs multi-tenanted by gross revenue
(as at 31 Mar 11)
Singapore53.2%
Japan0.0%
Hong Kong33.0%
China10.7%
Malaysia1.8%
South Korea0.0% Vietnam
1.3%
Singapore49.2%Japan
39.9%
Hong Kong1.4%
China1.6%
Malaysia5.1%
South Korea2.7% Vietnam
0.0%
Single-tenanted
63%
Multi-tenanted
37%
Single-user vs Multi-tenanted Building(By No. of Assets and NLA)
By No. of Assets as at 31 Mar 2011 By NLA as at 31 Mar 2011
42
Single-tenanted
75
Multi-tenanted
23
Single-tenanted
49.2%
Multi-tenanted
50.8%
Singapore Warehouse Oversupply Exaggerated About 64% of upcoming supply in Singapore has already been pre-leased or is being built
by end-users balance amount (243k sqm) is not a big threat
Source: URA 4Q 2010, Mapletree estimates
Upcoming Non-Committed supply of warehouses in Singapore
Upcoming Non-Committed supply of warehouses in
Singapore vs existing Stock
43
Non-Committed Supply34%
Committed Supply64%
243k sqm
442k sqm
Total upcoming warehouse space of 685k sqm over the next 3 yrs
Non-Committed Supply3% Committed Supply
6%
Existing Stock91%
6,958k sqm
243k sqm
Existing + Upcom-ing Stock 7,643k
sqm
442k sqm
Singapore Warehouse Occupancy Trend
Source : URA 4Q 201044
1Q 9
6
3Q 9
6
1Q 9
7
3Q 9
7
1Q 9
8
3Q 9
8
1Q 9
9
3Q 9
9
1Q 0
0
3Q 0
0
1Q 0
1
3Q 0
1
1Q 0
2
3Q 0
2
1Q 0
3
3Q 0
3
1Q 0
4
3Q 0
4
1Q 0
5
3Q 0
5
1Q 0
6
3Q 0
6
1Q 0
7
3Q 0
7
1Q 0
8
3Q 0
8
1Q 0
9
3Q 0
9
1Q 1
0
3Q 1
0 2,000
3,000
4,000
5,000
6,000
7,000
8,000
75%
80%
85%
90%
95%
100%Upcoming Supply Existing Stock Occupancy
('00
0 sq
m)
Occ
up
ancy
SARS, Nov 02
Dot Com Burst,Mar 00
Asian Financial Crisis, Jul 97
Current Financial Crisis, Jul 07
Bali Bombing, Oct 05
91.4%
Warehouse Sector is Less Volatile
Source: URA 3Q 2010, Singapore; Median Price & Rental of Multiple-user Warehouse
Capital values Rental values
Capital Retail Office WarehouseAvd p.a.
ChgQtrs
Avd p.a. Chg
QtrsAvd p.a.
ChgQtrs
Trough to Peak 9% 17 9% 17 8% 16
Rental Retail Office WarehouseAvd p.a.
ChgQtrs
Avd p.a. Chg
QtrsAvd p.a.
ChgQtrs
Trough to Peak 10% 17 37% 17 11% 16
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
19
98
Q4
19
99
Q2
19
99
Q4
20
00
Q2
20
00
Q4
20
01
Q2
20
01
Q4
20
02
Q2
20
02
Q4
20
03
Q2
20
03
Q4
20
04
Q2
20
04
Q4
20
05
Q2
20
05
Q4
20
06
Q2
20
06
Q4
20
07
Q2
20
07
Q4
20
08
Q2
20
08
Q4
20
09
Q2
20
09
Q4
20
10
Q2
S$
PS
M
Multiple User Warehouse (Average) Office (Average) Retail (Average)
Bottom: 2Q 2004 (warehouse, office)
3Q 2004 (retail)
Bottom: 3Q 2009
(all) Peak:
2Q 2008 (office, retail)3Q 2008 (warehouse)
-
10
20
30
40
50
60
70
80
90
100
1998
Q4
1999
Q2
1999
Q4
2000
Q2
2000
Q4
2001
Q2
2001
Q4
2002
Q2
2002
Q4
2003
Q2
2003
Q4
2004
Q2
2004
Q4
2005
Q2
2005
Q4
2006
Q2
2006
Q4
2007
Q2
2007
Q4
2008
Q2
2008
Q4
2009
Q2
2009
Q4
2010
Q2
S$
PS
M p
er m
th
Multiple User Warehouse (Average) Office (Average) Retail (Average)
Peak: 2Q 2008Bottom: 1Q 2004
Bottom: 4Q 2009
45
-
1,000
2,000
3,000
4,000
5,000
6,000
7,0001
99
1
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
3Q
20
11
F
20
12
F
20
17
F
('00
0 sq
ft)
82%
84%
86%
88%
90%
92%
94%
96%
98%
100%
Occ
up
an
cy
Warehouse Supply Occupancy
Hand over of HK, Jul 97Asian Financial Crisis, Jul 97HK Influenza, Dec 97
Dot Com Burst, Mar 00
SARS, Nov 02
Bali Bombing, Oct 05
Current Financial Crisis, Jul 07
Lack of New Supply in HK is Supportive to Revenues
Source : Savills Research and Consultancy (HK), Sep 2010; Mapletree estimates1: New World development located at Kwai Chung Container Port2: Goodman development located at Tsing Yi3: HK Government tendered for a development site in Tsing Yi Town
No New Supply
1
2
3
46
Outlook of Asian Logistics Industry
Asian Logistics Market is Growing at ~ Double the Rate as the Rest of the World
Source: Datamonitor, August 2009
183 199 220 243 272 291 318 350 387432 472
42%
43%
40%
38%
36%
35%
34%
32%
31%
30%
29%
0
200
400
600
800
1000
1200
2003 2004 2005 2006 2007 2008 2009F 2010F 2011F 2012F 2013F
Lo
gis
tic
s M
ark
et
Va
lue
US
$ b
illi
on
25%
27%
29%
31%
33%
35%
37%
39%
41%
43%
45%
Sh
are
of
As
ia-P
ac
ific
in
glo
ba
l lo
gis
tic
s
Asia-Pacific Rest of the World Asia-Pacific as % of Global Logistics
CAGR:
Rest of the World: 5.6%
Asia Pac: 10.1%
48
291
472545
629
0
100
200
300
400
500
600
700
2008 2013F 2008 2013FLo
gis
tic
s M
ark
et
Va
lue
in U
S$
Bill
ion
s… Due to Higher Growth Compared to the Rest of the World
Source: Datamonitor, Aug 2009
Rest of the world logistics market
Asia Pacific logistics market
49
41
104
249
281
0
50
100
150
200
250
300
2008 2013F 2008 2013FLo
gis
tics
Mar
ket
Vo
lum
e in
SG
D$
bill
ion
s…Within This, Contract Logistics Shows the Most Significant Growth Potential
Source: Transport Intelligence, May 2009
Global contract logistics marketAsia Pacific contract logistics market
50
Contract Logistics - China, India & Vietnam are the Fastest Growing Markets
Source: Transport Intelligence
Contract Logistics Markets in Asia
4.8%
20.6%
2.8%
15.2%
2.7%4.7%
6.5%
-0.4%
6.1% 6.4%
17.3%
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Japan China SouthKorea
India Taiwan Indonesia Thailand HongKong
Malaysia Singapore Vietnam
Logi
stic
s M
arke
t Val
ue in
SG
D$ M
illio
ns
-5%
0%
5%
10%
15%
20%
25%
Market Volume (2008) Forecasted Market Volume (2013) Forecasted CAGR (2008 to 2013)
51
Freight Forwarding – China, India & Vietnam are the Fastest Growing Markets
Freight Forwarding Markets in Asia
6.1%
-2.1%-3.0%
-0.5%-1.5%
10.1%
-2.7%
0.3%1.7%
2.4%
14.0%
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
China Japan SouthKorea
Singapore HongKong
India Taiwan Thailand Malaysia Indonesia Vietnam
Logi
stic
s M
arke
t Vol
ume
in S
GD
$ M
illio
ns
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
Market Volume (2008) Forecasted Market Volume (2012) Forecasted CAGR (2008 to 2012)
Source: Transport Intelligence52
1.0Suvarnabhumi Airport, Thailand20
1.1John F. Kennedy International Airport, USA19
1.2O'Hare International Airport, USA18
1.3Amsterdam Airport Schiphol, The Netherlands17
1.3London Heathrow Airport, UK16
1.4Taiwan Taoyuan International Airport, Taiwan15
1.4Beijing Capital International Airport, China14
1.5Los Angeles International Airport, USA13
1.6Miami International Airport, USA12
1.7Singapore Changi Airport, Singapore11
1.8Paris-Charles de Gaulle Airport, France10
1.9Narita International Airport, Japan9
1.9Frankfurt Airport, Germany8
1.9Dubai International Airport, UAE7
1.9Louisville International Airport, USA6
2.0Ted Stevens Anchorage International Airport, USA5
2.3Incheon International Airport, South Korea4
2.5Shanghai Pudong International Airport, China3
3.4Hong Kong International Airport, Hong Kong2
3.7Memphis International Airport, USA1
2009SeaportRank
1.0Suvarnabhumi Airport, Thailand20
1.1John F. Kennedy International Airport, USA19
1.2O'Hare International Airport, USA18
1.3Amsterdam Airport Schiphol, The Netherlands17
1.3London Heathrow Airport, UK16
1.4Taiwan Taoyuan International Airport, Taiwan15
1.4Beijing Capital International Airport, China14
1.5Los Angeles International Airport, USA13
1.6Miami International Airport, USA12
1.7Singapore Changi Airport, Singapore11
1.8Paris-Charles de Gaulle Airport, France10
1.9Narita International Airport, Japan9
1.9Frankfurt Airport, Germany8
1.9Dubai International Airport, UAE7
1.9Louisville International Airport, USA6
2.0Ted Stevens Anchorage International Airport, USA5
2.3Incheon International Airport, South Korea4
2.5Shanghai Pudong International Airport, China3
3.4Hong Kong International Airport, Hong Kong2
3.7Memphis International Airport, USA1
2009SeaportRank
The World’s Busiest Seaports and Airports are in Asia
4.6Laem Chabang, Thailand20
4.7Xiamen, China19
5.1Long Beach, USA18
6.0Tanjung Pelepas, Malaysia17
6.7Los Angeles, USA16
7.0Hamburg, Germany15
7.3Antwerp, The Netherlands14
7.3Port Klang, Malaysia13
8.6Kaohsiung, Taiwan12
8.7Tianjin, China11
9.7Rotterdam, The Netherlands10
10.3Qingdao, China9
10.5Ningbo, China8
11.1Dubai, UAE7
11.2Guangzhou, China6
12.0Busan, South Korea5
18.3Shenzhen, China4
21.0Hong Kong3
25.0Shanghai, China2
25.9Singapore1
2009SeaportRank
4.6Laem Chabang, Thailand20
4.7Xiamen, China19
5.1Long Beach, USA18
6.0Tanjung Pelepas, Malaysia17
6.7Los Angeles, USA16
7.0Hamburg, Germany15
7.3Antwerp, The Netherlands14
7.3Port Klang, Malaysia13
8.6Kaohsiung, Taiwan12
8.7Tianjin, China11
9.7Rotterdam, The Netherlands10
10.3Qingdao, China9
10.5Ningbo, China8
11.1Dubai, UAE7
11.2Guangzhou, China6
12.0Busan, South Korea5
18.3Shenzhen, China4
21.0Hong Kong3
25.0Shanghai, China2
25.9Singapore1
2009SeaportRank
Source: Containerisation International; Airports Council International
% of Top 20 Volumes in Asia = 79% % of Top 20 Volumes in Asia = 42%
14 of the world’s Top 20 busiest seaports are in Asia
8 of the world’s Top 20 busiest cargo-handling airports are in Asia
Container Throughput (Mil TEU) Total Cargo (Mil Metric Tonnes)
53
Rank EconomyOverallLPI score
Customs(Ranking)
Infrastructure(Ranking)
InternationalShipments(Ranking)
Logisticsquality andCompetence(Ranking)
Tracking andTracing(Ranking)
Timelines(Ranking)
1 Germany 4.11 3 1 9 4 4 3
2 Singapore 4.09 2 4 1 6 6 14
3 Sweden 4.08 5 10 2 2 3 11
4 Netherlands 4.07 4 2 11 3 9 6
5 Luxemborg 3.98 1 9 7 21 19 1
6 Switzerland 3.97 12 6 25 1 1 15
7 Japan 3.97 10 5 12 7 8 13
8 United Kingdom 3.95 11 16 8 9 7 8
9 Belgium 3.94 9 12 26 5 2 12
10 Norway 3.93 6 3 24 13 10 10
11 Ireland 3.89 18 19 5 16 13 4
12 Finland 3.89 7 8 19 10 11 25
13 Hong Kong SAR 3.88 8 13 6 14 17 26
14 Canada 3.87 13 11 32 8 15 5
15 United States 3.86 15 7 36 11 5 16
Source: World Bank, 2010 Logistics Performance Index
Tier 1 Countries – Singapore, Japan & Hong Kong are in Top 15 in Terms of LPI
54
Global logistics market (2008) in S$ dollars
Others 72%
Contract logistics
16%Freight
forwarding13%
Global 3PL market = approx 29%
Note: Freight forwarding involves the arrangement of cargo activity to an international destination.
Note: Contract logistics involves the outsourcing of supply chain management operations in a domestic context.
Source: Transport Intelligence, 2008
Contract Logistics and Freight Forwarding Account for Approximately 30% of the Global Logistics Market…
55
Within This, Contract Logistics and Freight Forwarding Each Account for Approximately Half of the Global 3PL Market
Contract logistics
55%
Freight forwarding
45%
Global 3PL market (2008) in S$ dollars
Note: Contract logistics involves the outsourcing of supply chain management operations in a domestic context.
Note: Freight forwarding involves the arrangement of cargo activity to an international destination.
Source: Transport Intelligence, 2008.3PL refers to freight forwarding and contract logistics sectors. As at 2008, global total logistics size was worth approx S$455 billion.
56
Co
un
try
dev
elo
pm
ent
ind
ex
Emerging
Developed
Logistics market developmentLow High
LaosCambodia
India
China
Vietnam
Philippines
Indonesia
Thailand
Malaysia
TaiwanS. Korea
Hong Kong
JapanSingaporeAustralia
* Poor facilities & infrastructure* Low IT penetration* Industry partners limited
* Traditional channels* Moderate infrastructure* Medium IT penetration* With no integration
* Excellent infrastructure* Sophisticated capabilities & technology* Easier to attract quality labour* Supply chain partners* Processes and infrastructure that support collaboration
Logistics Market DevelopmentMany Asian countries at lower end of development curve
Source: Edelweiss research57
Logistics Market DevelopmentLess developed economies have higher logistics costs as a % of their GDP
Source: Armstrong & Associates; State of Logistics Report (2010), Council of Supply Chain Management Professionals; Saigon port news
25%
20%
18%
13%12%
9% 9% 9% 9% 9% 9%8%
0%
5%
10%
15%
20%
25%
30%
Vietn
am
Thaila
nd
China
India
UAE (Dubai
)
Singap
ore
Europe
Hong Kong
S.Kore
a
Taiwan
Japan
USA
Lo
gis
tics
co
st/G
DP
High logistics costs indicate inefficiences in supply chain Lower logistics costs in
more developed markets
58
MIPL’s commitment in Development Projects
59
No Country Project nameGFA (sqm)
Status
1 China Mapletree Yangshan Bonded Logistics Park (Shanghai) 45,933 Completed/Leased: 12% of NLA
2 China Mapletree Wuxi Logistics Park (Wuxi) 45,309Completed/Leased: 98.4% of NLA; Warehouse fully taken up.
3 China Mapletree Beijing EPZ Airport Logistics Park (Beijing) 41,100In progress to construct PH 1 (13,840 sqm) at approved construction budget of ~S$8.7million
4 China Mapletree Tianjin Airport Logistics Park (Tianjin) 64,200 Completed/Leased: 36.4% of NLA, with interest expressed for a further 33%
5 China Mapletree Tianjin Port HaiFeng Bonded Logistics Park (Tianjin) 177,882 Completed/Leased: 15% of NLA
Subtotal China 374,424
6 Malaysia Mapletree Shah Alam Logistics Park (Shah Alam) 60,000 Completed/Leased: 98.8% of NLA
Subtotal Malaysia 60,000
7 Vietnam Mapletree Logistics Park (Binh Duong) 440,000Phase 1 completed, Phase 2 in 2Q 11. Leasing underway.
8 Vietnam Mapletree Bac Ninh Logistics Park (Bac Ninh) 310,00070% of first block (18,250 sqm) completed as of end Mar 11. Completion is expected in May 11.
Subtotal Vietnam 750,000
9 Japan Project Piranha Phase 1 (Odawara, Kanagawa) 136,560Construction is expected to start in Sep 11 and complete in Sep 12.
10 Japan Project Joso 27,277 Construction is expected to start in Aug 11 and complete in Feb 12
Subtotal Japan 163,837
Total 1,348,261
As at 31 Mar 11Note: 2Q11 refers to MIPL’s FY (1 Jul 11 to 30 Sep 11)
Important notice
The information contained in this presentation is for information purposes only and does not constitute an offer to sell or any solicitation of an offer or invitation to purchase or subscribe for units in Mapletree Logistics Trust (“MapletreeLog”, and units in MapletreeLog, “Units”) in Singapore or any other jurisdiction, nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever. The past performance of the Units and Mapletree Logistics Trust Management Ltd. (the “Manager”) is not indicative of the future performance of MapletreeLog and the Manager. Predictions, projections or forecasts of the economy or economic trends of the markets which are targeted by MapletreeLog are not necessarily indicative of the future or likely performance of MapletreeLog.
The value of units in MapletreeLog (“Units”) and the income from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request the Manager to redeem their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on the SGX-ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. The past performance of MapletreeLog is not necessarily indicative of its future performance.
60
Thank You