Acquisition of 15 Changi South Street 2, Singapore 486068 22 January 2010 0 0
Agenda Details of the property: 15 Changi South Street 2, Singapore 486068 Impact on MapletreeLog Acquisition is DPU accretive Tenant diversification Asset mix Average lease duration Unexpired lease of underlying land Geographical allocation of portfolio 1 1
15 Changi South Street 2 Purchase Price : S$34.48 million Land tenure : Expiring Oct 2044 Land area : 14,599 sqm (approx.) GFA : 23,176 sqm (approx.) Vendor : CEVA Freight (Singapore) Pte Ltd The property is a fully air-conditioned 5-storey warehouse facility with ancillary offices and basement carpark. The property has prominent frontage along Changi South Street 2. The property is in close proximity to Changi International Airport and is easily accessible by the East Coast Parkway Expressway. Lease terms : Sale and Leaseback to vendor for an initial term of 5 years from the date of completion of sale with a rental escalation of 2% p.a. from the second year onwards, with an option to extend for another 5 years Outgoings: Land rent, property tax and property maintenance will be borne by the tenant. 2 2
Acquisition is DPU accretive 15 Changi South Street 2 Total Return (over 10 years) 10.3% DPU impact 1 (proforma annualised impact) ~0.02 Singapore cents or 0.4% 1: Assuming MapletreeLog has purchased, held and operated the property on a proforma basis for 2009 (based on actual full year financial results for 2009 and using 81 properties only) and assuming a unit price of 69 Singapore cents and that the acquisition is 38.1% debt funded. 3 3
Tenant diversification provides portfolio stability Top 10 tenants by gross revenue as at 31 Dec 2009 5% 4.6% Pre-acquisition Post-acquisition 4% 3.9% 3.5% 3.4% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3% 2.9% 2% 2.4% 2.2% 2.1% 2.1% 2.1% 1.9% 1.8% 1% 0.9% 0.8% 0% NEC Logistics Nichirei Kyoto Toshiba Logistics Menlo Group TeckWah Group SH Cogent Group Ceva Logistics Vopak Asia Group Tentat Group Fu Yu Corporation Ltd 4 Pre-acquisition (portfolio of 82 properties) Post-acquisition (portfolio of 83 properties, including 15 Changi South Street 2) 4
Oil & Chemical Logistics 3.1% Food & Cold Storage 5.8% Industrial Warehousing 12.6% Asset Mix Professional 3PLs face leasing stickiness Gross revenue contribution by trade (Pre-acquisition) FTZ 3PL 5.8% Non-FTZ 3PL 51.7% Food & Cold Storage 5.7% Oil & Chemical Logistics 3.1% Industrial Warehousing 12.4% Gross revenue contribution by trade (Post-acquisition) Total 3PL: 57.5% Total 3PL: 58.2% FTZ 3PL 5.8% Non-FTZ 3PL 52.4% Distribution Centre 21.0% Distribution Centre 20.6% 1: Pre-acquisition (portfolio of 82 properties); Post-acquisition (portfolio of 83 properties, including 15 Changi South Street 2) 2: 15 Changi South Street 2 has been classified under the Non-FTZ 3PL category 3: The charts Gross Revenue figures are computed for the month of Dec 2009 5 5
Weighted average lease duration 40% Lease expiry profile by gross revenue (as at 31 Dec 2009) 37.6% 36.6% Pre-acquisition Post-acquisition 30% 20% 15.7% 15.4% 17.9% 17.6% 12.6% 12.4% 10% 8.9% 8.8% 3.3% 3.3% 0% Expiring in 2010 1 Expiring in 2011 Expiring in 2012 Expiring in 2013 Expiring in 2014 Expiring after 2014 Pre-acquisition (82 properties) Post-acquisition (83 properties including 15 Changi South Street 2) Weighted average lease term to expiry 4.8 years 4.8 years 6 1: Note that figures above the orange bars add up to 95%. The balance 5% relates to leases that were up for renewal in 2009 that have not yet been renewed. 6
Unexpired lease of underlying land 50% Remaining years to expiry of underlying land lease 1 % of Total Lettable Area 40% 30% 20% 10% 11.4% Pre-acquisition 13.5% 11.3% 12.5% Post-acquisition 26.7% 26.4% 7.1% 7.0% 41.3% 40.9% 0% 0.9% 0.9% 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 (82 properties) 153.4 years Post-acquisition (83 properties including 15 Changi South Street 2) 152.2 years 1: For purposes of computation, land tenure for all the freehold properties is assumed to be 999 years 7 7
Geographical allocation of portfolio Pre-acquisition Post- acquisition Country Allocation - By Gross Revenue (Pre-acquisition) China 6.6% Malaysia 5.0% S. Korea 0.5% Country Allocation - By Gross Revenue (Post-acquisition) China 6.5% Malaysia 4.9% S. Korea 0.5% Japan 15.7% Singapore 53.1% Japan 15.5% Singapore 53.8% Hong Kong 19.1% Hong Kong 18.8% 1: Pre-acquisition (portfolio of 82 properties); Post-acquisition (portfolio of 83 properties, including 15 Changi South Street 2) 2: The charts Gross Revenue figures are computed for the month of Dec 2009 8 8
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 - 9 9