Forging Ahead

196 Pages·2017·7.24 MB·English

Forging
Ahead
Annual Report 2017/2018
Our Vision
To be the preferred real estate partner of
choice to customers requiring high quality
logistics and distribution spaces in Asia-Pacific.
Our Mission
To provide Unitholders with competitive
total returns through regular distributions
and growth in asset value.
View more information online
www.mapletreelogisticstrust.com
Overview Performance Corporate Governance and Transparency Sustainability Financial Report Other Information
Forging
Ahead
Contents
1 Corporate Profile and
Rising domestic consumption, urbanisation
Our Vision, Our Mission
and the continued evolution of e-commerce
OVERVIEW
and logistics are driving demand for high
2 Key Highlights
quality warehouse space in prime locations. 4 Financial Highlights
6 Unit Price Performance
With a diversified portfolio of quality assets 8 Delivering on Our Strategy
10 Mapletree Logistics Trust At a Glance
across eight markets in Asia-Pacific, MLT is
12 Message from the Chairman and CEO
well-placed to capitalise on these trends. 16 Corporate Structure
18 Trust Structure
Forging ahead, through disciplined investments, 19 Organisation Structure
20 Board of Directors
active portfolio management and prudent
24 Management Team
capital management, we are committed to
PERFORMANCE
continue creating sustainable value for our 26 Financial Review
28 Corporate Liquidity and
customers, partners and investors.
Financial Resources
30 Key Market Trends
32 Portfolio Analysis and Review
37 Operations Review
45 Property Portfolio
CORPORATE GOVERNANCE
AND TRANSPARENCY
Corporate Profile 63 Investor Relations
65 Corporate Governance
Mapletree Logistics Trust (“MLT”) is Singapore’s first Asia-Pacific 83 Risk Management
focused logistics real estate investment trust. Listed on the
Singapore Exchange Securities Trading Limited in 2005, MLT SUSTAINABILITY
invests in a diversified portfolio of quality, well-located income- 86 Sustainability Report
producing logistics real estate in Singapore, Hong Kong, Japan,
Australia, South Korea, China, Malaysia and Vietnam. FINANCIAL REPORT
102 Report of the Trustee
103 Statement by the Manager
MLT is managed by Mapletree Logistics Trust Management Ltd.
104 Independent Auditor’s Report
(the “Manager”), a wholly-owned subsidiary of Mapletree Investments
to the Unitholders
Pte Ltd (the “Sponsor”). The Sponsor is a leading real estate
108 Statements of Total Return
development, investment and capital management company
109 Statements of Financial Position
headquartered in Singapore. 110 Distribution Statements
112 Consolidated Statements of Cash Flows
The Manager is committed to providing Unitholders with competitive 113 Statements of Movements in
total returns through the following strategies: Unitholders’ Funds
114 Portfolio Statements
a. optimising organic growth and hence, property yield from the
142 Notes to the Financial Statements
existing portfolio;
b. making yield accretive acquisitions of good quality logistics OTHER INFORMATION
properties; and 185 Statistics of Unitholdings
187 Interested Person Transactions
c. managing capital to maintain MLT’s strong balance sheet and 188 Notice of Annual General Meeting
provide financial flexibility for growth. Proxy Form
Corporate Directory
1
Key Highlights
DELIVERING
RETURNS
Amount Distributable Distribution DPU
To Unitholders Per Unit (DPU) Yield
1
S$212.9m 7.618¢ 6.2%
14.4% 2.4%
Net Asset Value Total Market
Per Unit Return Capitalisation
2
S$1.10 19.3% S$3.8b
5.8% 37.4%
ENHANCING
PORTFOLIO
Expanded Completed
presence redevelopment
in Hong Kong, of 76 Pioneer Road Maintained
a fast-growing into a modern ramp-up strong portfolio
logistics market logistics facility occupancy of
1.8x 1.8x 96.6%
NLA to 368,361sqm GFA to 72,000 sqm
Notes:
1 Based on DPU of 7.618 cents for FY17/18 and closing unit price of S$1.23 on 31 March 2018.
2 Sum of distribution yield and capital appreciation for the period 31 March 2017 to 31 March 2018.
22 Mapletree Logistics Trust Annual Report 2017/2018
Overview Performance Corporate Governance and Transparency Sustainability Financial Report Other Information
PRUDENT CAPITAL
MANAGEMENT
Aggregate Average Debt Hedged Credit Rating
Leverage Debt Maturity Into Fixed Rates
Baa1
37.7% 4.5yrs 78% with stable outlook
by Moody’s
GROWING
SUSTAINABLY
Expanding
solar
footprint
6% 1st
• First rooftop solar project
reduction in building
urban rooftop in Singapore
energy intensity in
farm for MLT • Total of nine solar installations
Singapore3
in Singapore across MLT’s portfolio
STRENGTHENING EMPOWERING
COMMUNITIES PEOPLE
4
29%
2017 Employee Engagement Survey
employee
participation overall response rate of
rate in 3 CSR
initiatives 95%
Notes:
3 B ased on the energy consumption data for the common areas in MLT’s multi-tenanted buildings where the Manager
has operational control. Single-user assets where the Manager does not have operational control are excluded.
4 Based on staff participation rates in Japan, Malaysia and Singapore.
Mapletree Logistics Trust Annual Report 2017/2018 33
Financial Highlights
MLT’s improved performance in FY17/18 was driven by organic growth from the existing portfolio and contributions from
acquisitions and a newly completed redevelopment in Singapore.
Gross Revenue Net Property Income
S$million S$million
395.2 +5.9% 333.8 +6.9%
17/18 395.2 17/18 333.8
16/17 373.1 16/17 312.2
15/16 349.9 15/16 290.9
14/15 330.1 14/15 277.4
13/14 310.7 13/14 267.6
MLT’s resilient and steady performance over the years is testament to its focus on proactive portfolio management and prudent
capital management to drive sustainable returns, and the strength of its geographically diversified portfolio.
Amount Distributable to Unitholders DPU
S$million cents
1
212.9 +14.4% 7.618 +2.4%
17/18 212.91 17/18 7.618
16/17 186.12 16/17 7.440
15/16 183.33 15/16 7.380
14/15 184.94 14/15 7.500
13/14 179.74 13/14 7.350
On the back of disciplined acquisitions of quality, well-located assets and active portfolio rejuvenation to optimise portfolio
yield, MLT has steadily deepened and enhanced its presence in the Asia-Pacific region. MLT’s portfolio value and NAV per unit
increased in FY17/18 due to growth in asset valuations, as well as acquisitions and capital expenditure.
Investment Properties NAV Per Unit
S$billion S$
6.5 +17.6% 1.10 +5.8%
17/18 6.5 17/18 1.10
16/17 5.5 16/17 1.04
15/16 5.1 15/16 1.02
14/15 4.6 14/15 1.03
13/14 4.2 13/14 0.97
Notes:
1 Included the partial distribution of the gain from the divestments of 4 Toh Tuck Link, Zama Centre, Shiroishi Centre, 20 Old Toh Tuck Road and 20 Tampines Street 92
amounting to S$6.25 million.
2 Included the partial distribution of the gain from the divestments of 134 Joo Seng Road and 20 Tampines Street 92 amounting to S$5.01 million.
3 Included the partial distribution of the gain from the divestments of 134 Joo Seng Road and 20 Tampines Street 92 amounting to S$3.01 million.
4 Included the partial distribution of the gain from the divestment of 30 Woodlands Loop amounting to S$2.48 million.
44 Mapletree Logistics Trust Annual Report 2017/2018
Overview Performance Corporate Governance and Transparency Sustainability Financial Report Other Information
Gross Revenue by Geography Property Value by Geography
(FY17/18) (As at 31 March 2018)
Singapore 36.0% Singapore 26.8%
Hong Kong 19.0% Hong Kong 34.3%
Japan 16.2% Japan 14.6%
Australia 9.2% Australia 8.5%
South Korea 6.9% South Korea 6.4%
China 6.6% China 5.2%
Malaysia 4.3% Malaysia 3.4%
Vietnam 1.8% Vietnam 0.8%
Statement of Financial Position Highlights (S$ million)
As at 31 March 2014 2015 2016 2017 2018
Total Assets 4,397.0 4,787.7 5,207.4 5,686.7 6,678.3
Total Borrowings 1,455.4 1,631.9 2,058.3 2,184.1 2,511.8
Perpetual Securities 344.0 344.0 344.0 595.7 429.9 5
Unitholders’ Funds 2,381.9 2,538.3 2,528.4 2,588.1 3,376.1 6
Market Capitalisation7 2,558.9 3,080.3 2,515.0 2,738.0 3,761.5
Key Financial Indicators
As at 31 March 2014 2015 2016 2017 2018
Aggregate Leverage (%) 33.3 34.3 39.6 38.5 37.7
Interest Cover Ratio for the financial year (times8) 8.7 7.5 5.9 5.6 5.6
Average Cost of Debt for the financial year (% ) 1.9 2.1 2.3 2.3 2.3
Average Debt Maturity (years) 3.6 3.6 3.5 3.9 4.5
Notes:
5 This takes into account the redemption of S$350.0 million 5.375% perpetual securities on 19 September 2017 and issuance of S$180.0 million 3.65% perpetua l
securities on 28 September 2017.
6 On 22 September 2017, 300,881,000 units in MLT were issued via private placement exercise which raised gross proceeds of S$353.5 million. On 12 October 2017 ,
250,187,292 units in MLT were issued via the 1-for-10 preferential offering which raised gross proceeds of S$286.5 million. The total gross proceeds of approximatel y
S$640.0 million were utilised to partially fund the acquisition of Mapletree Logistics Hub Tsing Yi and the redemption of the S$350.0 million perpetual securities.
7 Based on the closing unit prices of S$1.045 on 31 March 2014, S$1.245 on 31 March 2015, S$1.010 on 31 March 2016, S$1.095 on 31 March 2017 and S$1.230
on 31 March 2018.
8 Ratio of EBITDA over interest expense for period up to balance sheet date.
Mapletree Logistics Trust Annual Report 2017/2018 55
Unit Price Performance
The 12-month period to 31 March 2018 was a volatile period for global equities. Equities began the year strongly, buoyed by an
improving global economy, with stock markets worldwide setting new record highs. However, concerns over rising interest rates ,
escalating global trade tensions and a selloff in the technology sector led to a sharp reversal in the first quarter of 2018.
During the 12-month period to 31 March 2018, MLT’s unit price rose 12.3% to close at S$1.23, outperforming the benchmark Straits
Times Index (“STI”) and FTSE Real Estate Investment Trust Index (“FSTREI”), which increased by 8.0% and 8.3% respectively. With a
distribution payout of 7.618 cents, this translates to a distribution yield of 6.2% at the unit price of S$1.23, which is 390 basis point s
above the 10-year government bond yield of 2.3%.
Comparative Trading Performance in FY17/18 (%)
130
125
120
115
MLT
+12.3%
110 FSTREI
+8.3%
STI
105 +8.0%
100
95
Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18
Note:
Rebased closing prices on 31 March 2017 to 100.
Comparative Yields (%)
6.2
5.3
390 bps yield spread
over 10-year Singapore
Government Bond yield
3.1
2.5
2.3
2.1
0.3
MLT 10-year Govt 5-year Govt FSTREI STI CPF Ordinary 12-month S$
Yield1 Bond Yield2 Bond Yield2 Yield3 Yield4 Account5 Fixed Deposit6
1 Based on actual DPU of 7.618 cents for the period 1 April 2017 to 31 March 2018 and closing unit price of S$1.23 on 31 March 2018.
2 Singapore Government Bond Yield as at 31 March 2018, Monetary Authority of Singapore.
3 12-month gross dividend yield of FSTREI as at 31 March 2018, Bloomberg.
4 12-month gross dividend yield of Straits Times Index as at 31 March 2018, Bloomberg.
5 Prevailing interest rate on CPF Ordinary Account Savings.
6 12-month S$ fixed deposit savings rate as at 31 March 2018.
66 Mapletree Logistics Trust Annual Report 2017/2018
Overview Performance Corporate Governance and Transparency Sustainability Financial Report Other Information
On a total return basis, MLT outperformed both the STI and FSTREI over the years, with total returns of 19.3% over one year, 32.0%
over five years and 206.2% since listing in 2005.
Comparative Total Returns
1 Year 5 Years Since Listing
From 31 March 2017 From 31 March 2013 From 28 July 2005
Price Change Total Return1 Price Change Total Return1 Price Change Total Return1
(%) (%) (%) (%) (%) (%)
MLT 12.3 19.3 1.2 32.0 80.92 206.22
FTSE REIT Index 8.3 14.3 -0.7 27.4 9.7 71.5
Straits Times Index 8.0 11.2 3.6 19.4 50.4 92.5
Source: MLT and Bloomberg.
1 Sum of distribution yield and capital appreciation, assuming distributions are not reinvested.
2 Based on MLT’s IPO issue price of S$0.68.
MLT Monthly Trading Performance in FY17/18
Unit price on the last trading day of the month (S$)
1.37
1.32
1.23 1.24 1.27 1.27 1.23
1.17 1.20 1.20 1.20
1.13
280.1
193.7
157.9
Volume (million units) 141.0 136.2 142.7 139.9
103.0
93.7 86.7
77.1
66.5
Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18
MLT Unit Price and Trading Volume since listing in 2005
Unit Price
Performance
(S$) FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18
Opening 0.885 0.960 1.220 1.090 0.355 0.785 0.960 0.945 1.210 1.040 1.245 1.010 1.100
Closing 0.955 1.190 1.090 0.350 0.785 0.965 0.945 1.215 1.045 1.245 1.010 1.095 1.230
Highest 1.120 1.190 1.480 1.090 0.785 0.965 0.995 1.240 1.350 1.250 1.255 1.100 1.380
Lowest 0.885 0.860 1.050 0.310 0.325 0.760 0.800 0.935 0.990 1.040 0.910 0.970 1.095
Trading
volume
(million units) 672.0 572.8 1,006.0 721.2 561.2 745.1 678.0 1,015.1 980.5 820.1 1,013.5 1,023.0 1,618.7
Market Cap1
(S$ million) 567.9 965.4 1,207.9 678.8 1,612.6 2,341.4 2,292.9 2,954.9 2,558.9 3,080.3 2,515.0 2,738.0 3,761.5
1 Based on MLT’s closing unit price and total issued units as at end of the period.
Mapletree Logistics Trust Annual Report 2017/2018 77
Delivering on Our Strategy
In line with our mission to provide Unitholders with competitive total returns,
the Manager follows a “Yield + Growth” strategy which focuses on the two key
areas of optimising yield on existing assets and augmenting growth through
acquisitions or development projects which offer attractive returns. Both areas
are underpinned by a prudent risk and capital management approach.
GROWTH
VIA ACQUISITIONS
& DEVELOPMENT
PRUDENT YIELD
CAPITAL OPTIMISATION
MANAGEMENT ON EXISTING
PORTFOLIO
88 Mapletree Logistics Trust Annual Report 2017/2018