Acquisition of Level 9, Shatin No. 3 in Hong Kong 23 February 2006
Agenda Details of the property: Level 9, Shatin No. 3, Hong Kong Impact on MapletreeLog Acquisitions is DPU accretive Reduced tenant concentration Diversified asset mix Long average lease duration Unexpired lease of underlying land 1 1
Level 9, Shatin No. 3 Purchase price: HK$39.3 m (S$8.5 m) Appraised value: HK$41 m by DTZ Debenham Tie Leung (Hong Kong) dated 15 February 2006 Land tenure: Expiry on 30 June 2047 Land area: 3,400.0 sqm GFA: 2,609.6 sqm Lettable area: 2,609.6 sqm Lease terms: Sale and leaseback with single tenant The property comprises Level 9 of Shatin No. 3 plus ancillary car parking and loading platforms. Shatin No. 3 is an 18- storey purpose designed warehouse and freight handling cargo located at No. 22 On Sum Street, Shatin, New Territories, Hong Kong. Tenant: Ever Spread Investment Limited (part of the Ever Gain Group s companies) Outgoings: Rental excludes management fees, government rates & rent 2 2
Acquisition is DPU accretive First Year Level 9, Shatin No. 3 Initial EBITDA (before tax) Total Return (over 5 years) Total Return (over 10 years) 6.1% 8.6% 9.9% DPU accretion 1 over FY2005 annualised DPU of 4.28 cents 0.002 cents 1. Assuming MapletreeLog had purchased, held and operated the property for the whole of the financial year 31 December 2005. 3 3
Reduced tenant concentration Top 10 Tenants of the Entire Portfolio by Gross Revenue for the Month of December 2005 10% 9% 8.7% 8.7% Pre-Acquistion Post-Acquisition 8% 7% 6% 5.5% 5.4% 5.3% 5.3% 5% 4% 3% 4.1% 4.1% 3.5% 3.4% 3.4% 3.4% 3.2% 3.1% 2.7% 2.7% 2.6% 2.6% 2.6% 2.6% 2% 1% 0% Teckwah Industrial Corporation Ltd Vopak Terminals Fu Yu Corporation Taiun (HK) Co. Ltd DG Logistik M enlo Worldwide Asia Pacific Pte Ltd Expeditors Singapore Pte Ltd KLW Wood Products Pte Ltd Hitachi Transport Zuellig Pharma Ltd. Pre-Acquisition (portfolio of 30 properties, including announced acquisitions) Post-Acquisition (portfolio of 31 properties, including announced acquisitions and Level 9, Shatin No. 3 4 4
More diversified asset mix Before the acquisition* After the acquisition* Gross Revenue Contribution by Trade (Pre-Acquisition) Gross Revenue Contribution by Trade Sector (Post-Acquisition) Industrial Warehousing 16.5% Oil & Chemical Logistics 9.2% FTZ 3PL 13.7% Oil & Chemical Logistics 9.2% FTZ 3PL 14.4% Distribution Centre 14.8% Food & Cold Storage 4.7% Non-FTZ 3PL 41.1% Industrial Warehousing 16.4% Distribution Centre 14.6% Food & Cold Storage 4.7% Non-FTZ 3PL 41.6% * (1) Pre-Acquisition (portfolio of 30 properties, including announced acquisitions); Post-Acquisition (portfolio of 31 properties, including announced acquisitions and Level 9, Shatin No. 3) (2) Level 9, Shatin No. 3 has been classified under Non-FTZ 3PL (3) The charts are based on Gross Revenue for the month of December 2005 5 5
Long average lease duration Lease Expiry Profile by Gross Revenue (for the Month of December 2005) 60% 56.5% 56.0% 50% Pre-Acquisition Post-Acquisition 40% 30% 20% 10% 7.7% 7.7% 9.5% 9.5% 12.7% 13.4% 5.3% 5.3% 8.3% 8.2% 0% 2006 2007 2008 2009 2010 Expiring after 2010 Weighted average lease term to expiry Pre-Acquisition (30 properties) 6.5 years Post-Acquisition (31 properties) 6.5 years 6 6
Leasehold for underlying land still long Remaining Years to Expiry of Underlying Land Lease % of Total Lettable Area 70% 60% 50% 40% 30% 20% 10% 0% Pre-Acquisition Post-Acquisition 27.2% 27.4% 5.8% 5.7% 4.3% 4.3% 4.0% 4.0% 0.0% 58.8% 58.6% 0-20 yrs 21-30 yrs 31-40 yrs 41-50 yrs 51-60 yrs > 60 yrs Weighted average of unexpired lease term of underlying land Pre-Acquisition (30 properties) 58.5years Post-Acquisition (31 properties) 58.4 years * Reflects year to expiry from 31 December 2005 7 7
Disclaimer 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. 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. Representatives 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. - END - 8 8