OPERATIONS REVIEW SOUTH EAST ASIA AND GROUP RETAIL - Mapletree
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OPERATIONS REVIEW
SOUTH EAST ASIA AND GROUP RETAIL
SINGAPORE COMMERCIAL specialty supermarket commenced
operations in October 2020, providing a
The South East Asia and Group Despite the challenges posed by fresh offering for the precinct.
Covid-19, Mapletree achieved several
Retail business unit acquires, key milestones for its assets in the Robust tenant assistance programmes
develops and manages HarbourFront Precinct in FY20/21. were rolled out to mitigate the business
seven asset classes (office, impact due to Covid-19 measures,
St James Power Station obtained with additional rebates beyond the
retail, residential, serviced its Temporary Occupation Permit in mandatory rebates stipulated by the
apartments, hotel, industrial February 2021 and was handed over Singapore government granted to the
and warehouses) in the region to Dyson to begin works on its global badly affected tenants. Advertising
headquarters. The restored monument and promotional campaigns were also
to establish a platform for will house a heritage gallery in one of initiated to drive tenant sales.
sustainable returns. its distinctive chimneys to showcase
its contribution to Singapore as a Cost mitigating measures were
power station, as well as a heritage implemented to mitigate the impact
The business unit generates trail around the monument featuring of Covid-19 and an integrated
income for the Group maritime artefacts. command centre was implemented
through its portfolio of at HarbourFront Precinct in October
The Reef at King’s Dock, a residential 2020 to enhance security deployments
operating assets, as well as luxury waterfront development, was through the use of technology to drive
through various investment successfully launched in January 2021, innovation and improve productivity.
and 80% of units were sold as at
and capital management 31 March 2021. This is a testament to
VIETNAM
activities, including a real the project’s appeal, with its waterfront
location and a distinctive design that Operating performance in Ho Chi
estate mezzanine fund and Minh City (HCMC) and Hanoi exhibited
includes a 180-metre floating deck,
development profits. a first for a residential project in resilience with stable returns through
Singapore. the Covid-19 pandemic. However,
the international travel restrictions
As at 31 March 2021, the As part of the effort to refresh the tenant impacted hospitality asset occupancies
combined real estate portfolio mix at HarbourFront Centre, a popular throughout the fiscal year.
totalled S$3.6 billion across
Singapore, Vietnam and
Malaysia. In Financial Year
2020/2021 (FY20/21), the
business unit contributed
S$147.7 million to the
Group’s EBIT + SOA¹. Fee
income contributions were
S$1.6 million.
An artist’s impression of The Reef at King’s Dock, which will feature Singapore’s first floating deck in a
residential development.
52 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2020/2021
To mitigate the impact of Covid-19, a
robust cost containment and operational
efficiency strategy was implemented,
including the optimisation of utilities
and recalibration of service contracts.
One Verandah, an award-winning
residential development, started the
handover to buyers on 21 June 2020.
Over 95% of units launched have
been sold.
Mapletree Business City @ Binh Duong
was successfully divested in September
2020, monetising a multi-year
investment.
MALAYSIA
Mapletree provided mezzanine loan
financing for residential projects in One Verandah is an award-winning residential property located in District 2 in HCMC, Vietnam.
Kuala Lumpur and Selangor. 28 BLVD,
Lexa Residence and Fera Residence
Grade A office rents remained unchanged Though retail sales rose by 2.6% in
were fully sold and have obtained
in Q1 2021 from the previous quarter, 2020, shopping mall vacancies in
vacant possession.
reflecting a y-o-y decrease of 9.6%, while HCMC and Hanoi remain elevated
the Grade B market continued to decline at 9.2% and 14.3% respectively.
MARKET REVIEW AND OUTLOOK by 2% over the quarter to register a y-o-y
SINGAPORE decrease of 10%. An uneven recovery Tourist arrivals plunged by 78% in 2020
The Ministry of Trade and Industry (MTI) is expected, supported by the gradual following restrictions on international
estimates that the Singapore economy economic rebound and a tight supply air travel. In HCMC and Hanoi, five-star
grew by 0.2% year-on-year (y-o-y) in the pipeline, with the Grade A market hotel occupancies fell to 25.6% and
first quarter of 2021, compared with expected to be the main beneficiary of 28.9% respectively.
the 2.4% y-o-y contraction recorded the flight to quality.
in the previous quarter. For 2021, MTI MALAYSIA
has forecasted gross domestic product VIETNAM Malaysia’s GDP contracted by 3.4%
(GDP) growth of 4% to 6%, spurred Despite Covid-19, Vietnam’s GDP grew in 2020 because of the Covid-19
by global fiscal stimulus and vaccine by 4.5% y-o-y in Q1 2021 while inflation pandemic. To stimulate the residential
rollouts, while being weighed down fell to 0.3% q-o-q. Foreign direct market, the government reintroduced
by geopolitical uncertainty involving investment reached US$10 billion, the Home Ownership Campaign in
major economies as well as possible representing an 18.4% increase y-o-y. June 2020, which included a full stamp
financial system stresses from the duty exemption for first-time home
protracted recovery. HCMC Grade A office occupancies purchases worth up to MYR500,000.
contracted by three percentage
With the safe reopening of Singapore’s points to 85.8% due to the addition of
workplaces and the rollout of 29,940 square metres (sqm) of office
vaccinations, retail sales have improved, space while businesses adjusted to
posting a y-o-y change of 6.2% in the pandemic. However, the stock of 1 Earnings before interest and tax (EBIT) plus
March 2021. Rental declines for prime international-grade office buildings share of operating profit or loss of associated
retail spaces moderated from -3.6% remains limited, which should support companies and joint ventures (SOA), excluding
residential profits, incentive fee from private
quarter-on-quarter (q-o-q) in Q4 2020 rents and occupancies as tenants funds’ divestment, revaluation gains or losses,
to -1.2% q-o-q in Q1 2021. However, readjust their office space requirements divestment gains or losses, foreign exchange
with the recent tightening of restrictions in the post-pandemic environment. and derivatives gains or losses.
resulting from the increased community References:
cases in Singapore, recovery for retail In Hanoi, Grade A office vacancy i. BNM Quarterly Bulletin
ii. CBRE Reports
is likely to be delayed. Overall recovery increased from 7.1% to 22.4%, with iii. CBRE Vietnam, Vietnam Market Q1 2021 Report
is highly dependent on global vaccine 93,314 sqm of new office space added iv. Knight Frank Report
rollout, reopening of borders and in 2020. No new office supply is v. Ministry of Planning and Investment, General
Statistics Office of Vietnam
whether the latest wave of infections expected to be added in 2021, which vi. Ministry of Trade and Industry, Singapore
can be controlled. will support potential recovery. vii. URA Realis
53
OPERATIONS REVIEW
logistics development
CHINA of a Grade A, four-storey ramp-up
warehouse facility. The project will yield
Mapletree’s Logistics As at 31 March 2021, Mapletree 132,000 sqm of GFA upon completion
operates 58 logistics properties2 across by end-2022.
Development business unit 39 cities in China, with a total net
develops and manages the lettable area (NLA) of over 4.2 million In October 2020, it was announced
square metres (sqm). In FY20/21, that MLT would be acquiring Mapletree
Group’s logistics development 16 logistics parks were completed, Logistics Hub – Tanjung Pelepas for a
projects. It oversees a robust adding another 1.2 million sqm of total consideration of MYR402.5 million
portfolio of 83 logistics NLA. A further 48 projects are under (~S$131.4 million). MLT’s acquisition
development, including 12 new is expected to be completed by
facilities in China, Malaysia, sites acquired in FY20/21. These will mid-FY21/22.
Vietnam, Australia and India, contribute a total of 3.5 million sqm of
NLA upon completion.
valued at S$3.1 billion as at VIETNAM
31 March 2021. In Financial In Q3 FY20/21, Mapletree Logistics Mapletree’s logistics portfolio in
Trust (MLT) acquired stakes in 22 Vietnam comprises nine projects
Year 2020/2021 (FY20/21), logistics properties in China from the totalling more than 550,000 sqm of
the business unit contributed Group for a total of over RMB4.3 billion GFA. Of these, two are completed and
(~S$0.9 billion). seven are under development.
S$46.3 million to the Group’s
EBIT + SOA1. MALAYSIA In Northern Vietnam, the final two
phases (Phases 4 and 5) of Mapletree
Mapletree has two industrial sites in Logistics Park Bac Ninh are slated for
Shah Alam, Selangor, Malaysia that will completion in June 2021. With a total
be developed into Grade A warehouse GFA of 137,000 sqm, both Grade A
facilities yielding a combined gross logistics facilities are attracting healthy
floor area (GFA) of over 470,000 sqm. interest from established 3PLs and have
Shah Alam is a prime logistics area achieved 75% pre-committed occupancy.
serving Greater Kuala Lumpur and
is highly sought after by third-party Construction of Hung Yen Logistics
logistics operators (3PLs) as well as Park I, II and III is underway. Upon
end-users for domestic distribution completion by July 2022, the Grade A
and last-mile delivery. logistics facility will provide 177,000 sqm
of GFA at a highly accessible location
Construction has commenced at close to Hanoi with highway connections
one of the sites for the development to Hai Phong seaport.
An artist’s impression of Mapletree Logistics Park – Crestmead, which is a 200,000-sqm modern logistics
warehouse located in Brisbane, Australia. Phase 1 of the facility is scheduled for completion by March 2022.
54 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2020/2021
To meet further demand for quality Growth in domestic consumption,
warehousing space in Bac Ninh Province, e-commerce and manufacturing will
Mapletree is in the process of acquiring support market demand for good
a site in Thuan Thanh Industrial Park III. quality warehouses, though significant
The proposed logistics park will provide new supply is likely to moderate rental
a total GFA of about 247,000 sqm. reversion. In addition, the desire for
convenience and rising standards of food
In Southern Vietnam, the last two safety will spur demand for cold storage.
phases (Phases 4 and 6) of Mapletree
Logistics Park Binh Duong commenced
Mapletree (Yinchuan) Logistics Park, which has AUSTRALIA
construction in March 2021 and will an NLA of 74,823 sqm, is one of the logistics Queensland’s strong pre-pandemic
yield over 123,000 sqm of GFA upon properties completed in China in FY20/21. economy allowed the government
completion in May 2022. Meanwhile, to maintain the necessary support
the completed facilities at Phases 3 and to ensure economic recovery. The
5 are fully leased. Binh Duong’s location Queensland economy is forecasted to
at the intersection of major highways to an increase in premium warehouse
return to marginal growth in 2020/2021,
with access to both seaports and Ho Chi stock of approximately 66 million sqm,
before strengthening substantially to
Minh City continues to attract strong there was still healthy demand for
3.5% growth in 2021/2022.
interest from end-users and 3PLs. Grade A warehouses.
The logistics warehousing market in
In December 2020, Mapletree Logistics Domestic consumption continues to
Brisbane is poised to benefit from
Park Bac Ninh Phase 3 was acquired by drive the market for logistics space
government investment in major
MLT for US$22 million (~S$30 million). especially as China pursues the
infrastructure projects, valued at
“dual-circulation” strategy under its
A$50.6 billion over the next five years,
AUSTRALIA 14th Five-Year Plan. With the International
as well as increasing e-commerce
Monetary Fund expecting China’s
penetration due to Covid-19. In the
In November 2020, Mapletree economy to grow by 8.1% in 2021,
near term, demand for logistics
completed the acquisition of a e-commerce, 3PLs and cold-chain
warehousing in Brisbane is also likely
36.3-hectare site in Crestmead, logistics are likely to support demand
to come from defensive occupiers such
Brisbane, Queensland, which will be for warehouses.
as pharmaceuticals, e-commerce, food
developed into a 200,000-sqm modern
retailing and manufacturing.
logistics warehousing facility with MALAYSIA
excellent access to Brisbane city, port The Malaysian economy contracted by
and airport. Construction has begun 5.6% in 2020 (2019: +4.3%) due to the
INDIA
on Phase 1, comprising a 60,000-sqm India’s logistics sector remains a
impact of Covid-19, marking its weakest
two-block warehouse facility to be resilient asset class. The pandemic has
performance since the Asian Financial
completed by March 2022. accelerated consumers’ shift to online
Crisis. The World Bank projects gross
shopping, leading to an increased
domestic product (GDP) to expand by
demand for warehouse space from
INDIA 6.7% in 2021, on growth in exports,
e-commerce, retail and 3PL players.
In May 2020, Mapletree acquired its private consumption and investment.
In the short term, manufacturing, a key
maiden logistics asset in India through sector in India, is likely to see uneven
a forward purchase agreement. Malaysia’s logistics property market is
recovery. This may have a knock-on
Comprising three warehouses with a forecasted to register healthy growth
impact on warehouse demand.
total GFA of about 58,818 sqm, the in 2021, powered by e-commerce and
properties are located within a logistics private consumption growth as well as a
In the long run, the logistics sector is
park in Chakan, Pune. In February 2021, shortage of Grade A warehouse space.
still expected to continue benefitting
the Group acquired an additional from India’s burgeoning population
44,450 sqm of fully completed VIETNAM shifting to online shopping and the
warehouses adjacent to the forward Vietnam remains one of Southeast central government’s initiatives to
purchase warehouses. This resulted in Asia’s fastest-growing economies, develop India as a manufacturing hub.
Mapletree owning the entire logistics registering 1.6% real GDP growth
park with an expanded total GFA of in 2020. The engines of growth are
approximately 103,268 sqm. robust levels of public investment,
domestic consumption, exports and 1 Earnings before interest and tax (EBIT) plus
MARKET REVIEW AND OUTLOOK foreign direct investment. Amid severe share of operating profit or loss of associated
disruption of the global supply chain companies and joint ventures (SOA), excluding
revaluation gains or losses, divestment gains
CHINA during the pandemic, Vietnam’s exports or losses, foreign exchange and derivatives
The logistics sector in mainland China expanded by 5.3% year-on-year to gains or losses.
remained resilient in 2020 due to the US$254 billion, resulting in a record 2 Of the 58 properties, 29 are held by MLT.
growing e-commerce trend. Despite a trade surplus of over US$20 billion, up Reference:
14.8% rise in overall vacancy levels due from US$11 billion the previous year. i. Queensland Treasury
55
OPERATIONS REVIEW
china
RESILIENT GROWTH IN CHINA Leasing commenced for mTower Beijing
in July 2020 after asset enhancement
Mapletree’s China business As at 31 March 2021, Nanhai Business initiative works were conducted in
City Phase 4 had fully sold all 2,743 tenanted areas. The building features
unit seeks to capitalise on residential units and approximately 51,235 square metres (sqm) of Grade A
real estate opportunities by 44% of the strata retail units, while office space in the Lize Financial
developing, investing and the Education Hub had achieved a Business District. Several high-profile
94.8% occupancy rate. tenants have been secured, including
managing real estate assets in
telecommunications, Hi-Tech firms and
China. In addition, the business Mapletree Ningbo Mixed-Use professional service companies.
unit oversees a private real Development Phase 2 (mall) and
Phase 3 (medical centre) successfully In November 2020, Mapletree signed
estate fund, Mapletree China obtained their occupation permit in a sales and purchase agreement to
Opportunity Fund II (MCOF II). October 2020. As at 31 March 2021, acquire mTower Wuhan, a Grade A
100% of the residential units and office building with a gross floor area
carparks, as well as approximately 67% (GFA) of 81,771 sqm located in Wuhan
As at 31 March 2021, the of the strata retail units had been sold. Optics Valley, Hubei Province.
business unit accounted for
S$3 billion of the Group’s total
assets under management.
In Financial Year 2020/2021
(FY20/21), the business unit
contributed S$12 million in
fee income to the Group.
mTower Wuhan, a Grade A office building with a GFA of 81,771 sqm, is located in Wuhan Optics Valley,
Hubei Province, China.
56 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2020/2021
The pre-certified LEED Gold property
had an occupancy rate of over 85%
as at 31 March 2021, attracting tenants
from the technology, financial and
biomedical industries.
mPlaza Guangzhou, an office building
with a GFA of 109,002 sqm in
Guangzhou’s Pazhou area, was handed
over to Mapletree on 15 March 2021.
The area is designated as an artificial
intelligence and digital economy pilot
zone featuring high quality projects
by renowned technology, media and
telecommunications companies.
Pre-leasing activities are in progress.
Mapletree continues to pursue
promising opportunities, winning two
residential land tenders in Zengcheng
District, Guangzhou (land area of
24,660 sqm, GFA of ~93,706 sqm)
and Xinwu District, Wuxi (land area of
76,907 sqm, GFA of ~169,195 sqm)
in December 2020. The projects are
conveniently located next to existing
metro stations and are expected to
yield approximately 800 and 1,400
residential units respectively.
MARKET REVIEW AND OUTLOOK
China was the only major economy
to expand in 2020, registering
2.3% growth. Although nationwide
commercial real estate investment
value contracted by 28% year-on-year,
both market sentiment and investment
activities recovered in H2 2020 as
the pandemic was largely brought
under control.
The country’s “dual circulation” policy mTower Beijing is a Grade A office building located in Lize Financial Business District, Beijing, China.
of higher dependence on domestic
consumption and home-grown
technology propelled confidence in
both investment and leasing activities, their downtrend with more foreign developers to offload their existing
especially in asset classes such as investment funds returning. properties. In addition, expiries of real
decentralised business park offices estate funds will add to investment
and data centres. On the retail front, social distancing opportunities, given the spike in
measures have hindered a full recovery transactions between 2016 and 2018.
China’s resilient economy and strong while the e-commerce sector continued
occupier demand made it one of the to outperform. Meanwhile, reduced
favoured destinations for cross-border supply in the residential market, coupled
investors. As office rental is expected with restrictive lending, will likely lead
to head north in 2021 with improving to a more sustainable price growth.
business sentiment, office capital On the other hand, more acquisition
values are likely to remain strong opportunities may emerge as curbs Reference:
while capitalisation rates continue on real estate loans lead domestic i. China National Bureau of Statistics
57
OPERATIONS REVIEW
india
A DEEPENING PRESENCE IN INDIA initiative works at Global Infocity Park
Chennai, including the repainting
Mapletree’s India business unit Mapletree continued to grow its of its exterior, lobby and food court
portfolio of commercial properties renovations as well as electrical
develops and manages real in India, with total assets under transformer upgrading works.
estate assets in India, as well as management increasing from
deepens its presence through S$963.4 million in FY19/20 to Through proactive operational
S$1.1 billion in FY20/21. The optimisation initiatives across various
acquisitions and investments in current portfolio spans four cities areas such as manpower, consumables,
this developing economy. (Bengaluru, Chennai, Mumbai and as well as mechanical, engineering
Pune), comprising two development and plumbing equipment, Mapletree
projects and two investment projects, achieved significant savings from the
With owned and managed increasing total net lettable area (NLA) reduction of common area maintenance
assets of S$1.1 billion as at from 541,351 square metres (sqm) in costs. In FY20/21, Global Technology
FY19/20 to 792,368 sqm in FY20/21.
31 March 2021, the business Park in Bengaluru and Global Infocity
Park Chennai received the British
unit contributed S$69.3 million In September 2020, the Group’s footprint Council Safety Assurance Certification
to the Group’s EBIT + SOA1 expanded to include Mumbai, with the for Covid-19 safety measures. Both
acquisition of approximately 25,516 sqm parks remained operational throughout
and S$0.1 million in fee of land for development as office space. the Covid-19 pandemic, with safety
income in Financial Year measures implemented early on
2020/2021 (FY20/21). Notwithstanding Mapletree’s including the provision of touch-free
comprehensive measures to provide a taps, sanitisers and soap dispensers.
safe working environment, the Covid-19 Combined occupancy at Mapletree’s
pandemic affected footfall at existing operational parks in India was about
business parks. Mapletree used this 94% as at 31 March 2021.
period to carry out asset enhancement
An artist’s impression of Mapletree’s Grade A office development in Pune, Maharashtra, India sited on a
7.7-acre land parcel.
58 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2020/2021
Spanning an NLA of 252,415 sqm, Global Infocity Park Chennai is located along one of India’s prime information technology corridors.
MARKET REVIEW AND OUTLOOK H1 2021 and gradually recover in
H2 2021. Technology firms are
In advanced estimates by the expected to continue leading
Ministry of Statistics and Programme office space demand in Bengaluru,
Implementation, India’s economy is Hyderabad, Pune and the National
expected to shrink by 8% in FY20/21. Capital Region. Demand for logistics
By the close of FY20/21, however, warehouses is expected to remain
economic activity was better than healthy in 2021, backed by demand
expected. Capital expenditure by from e-commerce and third-party
the government increased and a logistics providers.
nationwide vaccination drive had
started. According to the International India’s real estate market attracted
Monetary Fund, the Indian economy is US$4.8 billion in private equity
expected to grow by 12.5% in 2021. investments in 2020, led by the
commercial office sector. There were
Despite the pandemic, net office two additional real estate investment
absorption for 2020 was recorded at trust listings in FY20/21, sponsored
approximately 70% of the previous by foreign institutional investors.
three years’ average. While there was Institutional investments are expected
an increase in vacancy across major to increase in 2021, backed by
cities, rentals for Grade A office spaces investors’ long-term positive outlook
remained largely stable. According of the India economy.
to Colliers, net office absorption is
expected to remain largely stable
over 2021, with demand mostly driven 1 Earnings before interest and tax (EBIT) plus
share of operating profit or loss of associated
by technology companies as well as companies and joint ventures (SOA), excluding
the engineering and manufacturing residential profits, incentive fee from private
sectors. In 2020, most tenants split funds’ divestment, revaluation gains or losses,
divestment gains or losses, foreign exchange
their employees’ work locations and derivatives gains or losses.
between home and the office due to
References:
the pandemic. Hence, demand for new i. Ministry of Statistics and Programme
office space may remain subdued over Implementation
ii. Colliers India Market Outlook 2021
iii. JLL
iv. International Monetary Fund
59
OPERATIONS REVIEW
AUSTRALIA & NORTH ASIA
AUSTRALIA Phase 1 will be completed in Spring
2023 and Phase 2 will be completed
The Australia & North Asia As at 31 March 2021, MASCOT’s portfolio in Spring 2024. When completed, the
comprised 10 commercial properties in site will be the largest logistics facility
business unit focuses on five key gateway cities, with a total net in Fukuoka prefecture, which is a hub
deepening Mapletree’s lettable area (NLA) of approximately for logistics, high technology and
presence in Australia, 158,000 square metres (sqm). automobile manufacturing sectors.
Hong Kong SAR, Japan and Development is expected to take
During FY20/21, asset enhancement approximately four years and the total
South Korea, and explores initiative (AEI) works for 11 Waymouth gross floor area (GFA) is estimated to
opportunities in new real Street in the Adelaide central business be 231,956 sqm.
district were completed and the retail
estate asset classes in these podium was fully leased. The façade Mapletree’s Japan focused logistics
countries. and lobby of the North Building of development fund (MJLD) was fully
22 Giffnock Avenue, Sydney were also realised in June 2020, achieving an
upgraded as a proactive measure to internal rate of return3 of 23.7%, above
The business unit also enhance leasing efforts and the ground the target fund return of 13% to 15%.
manages a private equity floor was successfully leased as a result.
AEI works at other properties included Oakwood Suites Yokohama, a 175-unit
fund that was syndicated in the completion of the speculative Oakwood-managed serviced apartment
November 2019 – Mapletree fit-out at one property to capture located in Yokohama, commenced
Australia Commercial Private increasing market demand for smaller, operations in November 2020. Brand
fitted-out units, with a similar strategy awareness and marketing campaigns
Trust (MASCOT). currently being implemented at two
other properties.
With owned and managed
The enhancements helped MASCOT
assets of S$3 billion as maintain a portfolio committed
at 31 March 2021, the occupancy of 87.8% as at 31 March
2021 and a weighted average lease
business unit contributed expiry (WALE)2 of 2.9 years, in the face
S$40.7 million to the of downward pressure on the leasing
Group’s EBIT + SOA1, and market amid the Covid-19 pandemic.
MASCOT made two semi-annual
S$12.3 million in fee income distributions to investors for FY20/21,
in Financial Year 2020/2021 equivalent to a 7.3% annualised yield
(FY20/21). cumulatively.
JAPAN
With the Group’s focus on fund
syndication to drive fee-based income,
a land parcel was purchased with the
intention to seed a new Japan logistics
fund. It will be developed as a Grade A
warehouse facility known as Mapletree
Chikushino Logistics Centre. The land
acquisition in November 2020 was at
a cost of approximately JPY7 billion
(~S$86.4 million), with expected total Oakwood Suites Yokohama occupies the 46th
to 51st floors of The Kitanaka Yokohama Tower,
development cost at approximately
Yokohama’s tallest and largest residential complex.
JPY47.6 billion (~S$588.1 million).
60 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2020/2021
for Oakwood Suites Yokohama are in With the rollout of Covid-19 vaccines
progress to capture the domestic and robust economic growth in China,
travel market. the Hong Kong SAR economy is
expected to resume positive growth
HONG KONG SAR in 2021. Accompanying the 10% rise in
loan-to-value ratio caps and abolition
Mapletree won the land tender for
of double stamp duty, a slight rebound
an industrial site in February 2021.
is anticipated for the non-residential
Acquired at approximately HK$813
property market. Office and industrial
million (~S$140.4 million), the site in
capital values are expected to bottom
Fanling, New Territories, is strategically
out first in H1 2021.
located near the Chinese border and
has well-established infrastructure. The
4,028 sqm site will be developed into
SOUTH KOREA
With the economy showing a
the Group’s first data centre in Hong
moderate rebound in the second
Kong SAR. Upon completion in 2023, it
half of 2020, the country’s full-year
will have a maximum GFA of 20,140 sqm.
GDP contracted by only 1%. Strong
demand for stable income-generating
SOUTH KOREA assets, a resilient economy and deep
Mapletree, Mapletree North Asia The Pinnacle Gangnam comprises 24,650 sqm of
pools of domestic capital supported
Commercial Trust, and an independent NLA and is located in Gangnam Business District, the office market in Seoul. Total office
third-party investor co-invested in Seoul, South Korea. transaction volume reached a record
an office building, The Pinnacle high of KRW13.1 trillion in 2020 and
Gangnam, at a cost of approximately has exceeded KRW10 trillion for three
KRW452 billion (~S$535.1 million) consecutive years.
out in 2021 and will begin to rebound
in October 2020. This is the Group’s
in 2022.
first office property in the country The domestic economy is expected
and is strategically located in Seoul’s to grow by 3% in 2021 driven by the
Gangnam business district, known as
JAPAN administration of Covid-19 vaccines
Total real estate transaction volume
the Silicon Valley of South Korea. and strong semiconductor exports.
reached JPY3.8 trillion in 2020,
With a GFA of 44,444 sqm and NLA of Meanwhile, South Korea will remain
up 5.2% from 2019 as overseas
24,650 sqm, the building has direct a preferred market for investment in
investments increased by 30%
access to a subway station and a the region, with domestic and foreign
year-on-year. Japan is expected to
diversified tenant base with a high ratio buyers maintaining a keen appetite for
remain as one of the most attractive
of international tenants. Committed core office assets in Seoul.
real estate investment markets.
occupancy was 96.5% as at 31 March
2021, with a WALE2 of 2.5 years.
Logistics and data centre properties
have been highly sought after, driven
MARKET REVIEW AND OUTLOOK by increasing digitalisation and
AUSTRALIA e-commerce growth expedited by
1 Earnings before interest and tax (EBIT) plus
The Covid-19 pandemic negatively the Covid-19 pandemic. Offices are share of operating profit or loss of associated
affected vacancies and net effective also a popular choice with capital companies and joint ventures (SOA), excluding
rents in the commercial real estate values holding up despite increasing revaluation gains or losses, divestment gains
or losses, foreign exchange and derivatives
market. Vacancy rates in all major vacancy and decreasing effective rent, gains or losses.
markets reached double digits and as evidenced by an increase in the 2 WALE is weighted by tenants’ proportionate
sale or sale-and-leaseback of non-core share of asset or portfolio's income.
net effective rents for commercial real 3 After expenses, taxes and base management
estate fell by 3% to 16% nationally. corporate assets. fee but before carried interest.
References:
Based on data published by the HONG KONG SAR i. JLL Real Estate Intelligence Services
Australian Bureau of Statistics, gross Real GDP shrank by a record 6.1% in ii. Australia Bureau of Statistics
domestic product (GDP) contracted by 2020, leading to a contraction for two iii. Reserve Bank of Australia Statement of
Monetary Policy (February 2021)
2.4% in 2020. However, this was less consecutive years. A lack of distressed iv. CBRE Market Review, Japan Investment,
than the 6% contraction forecasted assets and investors’ wait-and-see Q4 2020
v. CBRE Asia Pacific Real Estate Market Outlook,
at the onset of the pandemic, and approach dragged down commercial Japan, 2021
the Reserve Bank of Australia expects real estate transaction volume in 2020, vi. Census and Statistics Department, HKSAR
recovery to be faster than previously while capital values fell across the Government
vii. Hong Kong Monetary Authority
anticipated. Consequently, the real board amid rising vacancies and viii. Bank of Korea
estate market is expected to bottom falling rents. ix. Savills Korea
61OPERATIONS REVIEW
GROUP LODGING
STUDENT ACCOMMODATION
Mapletree’s Group Lodging Mapletree’s student accommodation
portfolio – including those held under
business unit develops, MGSA and Mapletree Investments –
acquires and manages the comprises 51 assets with over 22,000
Group’s global lodging beds located across 34 cities in the
United Kingdom (UK), the United States
assets comprising student (US) and Canada. The total assets
accommodation, serviced under management (AUM) amount to
apartments and multifamily approximately S$3.7 billion.
assets, as well as oversees MGSA currently holds 25 assets in
Oakwood’s hospitality the UK and 10 assets in the US, with
a total AUM of about S$2 billion
management business and over 14,000 beds. As the fund
worldwide. The business manager, Mapletree optimises portfolio
unit also includes a private returns and maximises asset value
through proactive asset management,
real estate fund, the operational improvement and
Mapletree Global Student enhancing residents’ experience.
Accommodation Private Trust The Chestnut at University City, Philadelphia, the US.
In December 2020, Mapletree
(MGSA). completed its first student housing
development project in the US. With
With owned and managed 405 units, The Chestnut at University units with an AUM of approximately
City is adjacent to the Wharton School S$1.8 billion.
assets of S$5.3 billion of the University of Pennsylvania, which
(excluding Oakwood) as at is top ranked in the US. Of the serviced apartment assets,
11 are in the US, two in Japan and one
31 March 2021, the business Westwood Student Mews, Mapletree’s each in Australia and Vietnam. The four
unit contributed S$41.6 million first UK student housing development multifamily assets are in the US.
to the Group’s EBIT + SOA1, comprising 453 beds, was completed
in December 2019. Since completion, OAKWOOD’S GROWING FOOTPRINT
and S$20.4 million in fee the property serving the University of AND BRAND
income in Financial Year Warwick has seen leasing performance In FY20/21, Oakwood launched the
2020/2021 (FY20/21). gaining traction and positive student following new properties:
reviews. • Oakwood Suites Yokohama, Japan
• Oakwood Suites & Studios Dupont
Mapletree also successfully acquired a Circle Washington DC, the US
135-bed student housing asset in the • KeSa House, The Unlimited
UK in December 2020. The property Collection by Oakwood, Singapore
is located close to the University of • Wanderlust, The Unlimited Collection
Reading, which ranks among the top by Oakwood, Singapore
30 universities in the UK.
Management agreements were also
S E R V I C E D & M U LT I F A M I LY signed for the following properties:
• Oakwood Hotel & Apartments
RESIDENCES Yangon, Myanmar
Mapletree’s serviced and multifamily • Oakwood Hotel & Residence
residence portfolio consists of Bangkok, Thailand
15 serviced apartments and four • Ann Siang House, The Unlimited
multifamily assets totalling over 3,800 Collection by Oakwood, Singapore
62 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2020/2021The Unlimited Collection by Oakwood of Oakwood Clean360 globally and Accommodation market fundamentals
targets independent travellers seeking assisting in ongoing risk analysis and remain strong, with a forecasted average
unique stay experiences that are enhancements to the programme. annual growth rate of 2.1% by 2030.
authentic to each property and its Together with a tightly constrained
destination, and is one of two new Furthermore, to support students development pipeline, the structural
brands debuted by Oakwood during who were unable to return to their undersupply is expected to persist.
the year. Oakwood has partnered a accommodation during periods of
local real estate company to manage national lockdown in the UK, Mapletree Given border and visa restrictions
its first three iconic heritage properties has provided financial assistance preventing international student
(Ann Siang House, KeSa House and through rent reliefs. arrivals, coupled with the shift to online
Wanderlust) under this brand. learning, occupancy has been impacted
as a result of Covid-19. Nonetheless,
MARKET REVIEW AND OUTLOOK Mapletree is cautiously optimistic about
Another brand addition is Oakwood
Beluxs, which caters to well-travelled STUDENT ACCOMMODATION increased leasing momentum in our
citizens of the world. Through a In the US, university enrolment held assets, as vaccination programmes in
strategic alliance with one of China’s steady at 19.7 million in 2020, despite the UK and the US get into full swing by
leading real estate developers, Country border restrictions preventing some summer 2021.
Garden Commercial and Culture international students from entering
Tourism Group, the goal is to open 100 the country. Similarly, rental rates S E R V I C E D & M U LT I F A M I LY
Oakwood Beluxs properties by 2030 and occupancy in Q4 2020 remained RESIDENCES
in Mainland China’s 50 cities with the resilient, decreasing by 0.4% and Multifamily demand proved resilient
highest gross domestic product. 0.2% respectively, compared to as occupancies, renewals and leasing
Q4 2019. The US National Center activities remained stable. Eviction
LANDMARK INITIATIVES for Educational Statistics projects moratoriums and rent relief requests
In response to Covid-19, Oakwood enrolment will increase to 20.1 million are expected to extend through 2021
Clean360 was launched in June 2020 to students by 2029. if unemployment claims remain high.
ensure the health and safety of guests, Nonetheless, further economic and job
associates and business partners. In the UK, approximately 2 million recovery is anticipated in the next few
Oakwood subsequently became full-time students were enrolled for the years which will continue to drive demand.
the world’s first serviced apartment Academic Year 2019/2020, up 3.9%
from the previous year. International Though serviced apartments were more
brand to mandate face masks in
students from non-European Union adversely impacted by the pandemic,
public areas. International SOS, a
countries also increased by 15.5% from Oakwood has been able to limit
leading health and security services
the previous year. Purpose-Built Student volatility as its portfolio of differentiated
company, is undertaking accreditation
brands provides a well-balanced mix
of long and short stays. The robustness
of this business model has become an
attractive option for future collaboration
with owners and developers.
As borders reopen, occupancy has
also started to pick up in tandem.
Meanwhile, Oakwood has also pivoted
towards domestic businesses, leisure
travellers and alternative uses of space
for remote-working. Travel capacity
may however, take longer to return to
previous levels, especially with relatively
depressed demand for corporate travel.
1 Earnings before interest and tax (EBIT) plus
share of operating profit or loss of associated
companies and joint ventures (SOA), excluding
residential profits, incentive fee from private
funds’ divestment, revaluation gains or losses,
divestment gains or losses, foreign exchange
and derivatives gains or losses.
Wanderlust, The Unlimited Collection by Oakwood, Singapore comprises 29 thoughtfully appointed
rooms and suites. Reference:
i. Times Higher Education, 2021
63OPERATIONS REVIEW
europe and usa
COMMERCIAL In the UK, two new office buildings, 400
and 450 Longwater Avenue at Green
Mapletree’s Europe and USA Mapletree focuses on cities where Park, achieved practical completion on
office demand is underpinned by 8 March 2021. With lakeside terraces,
(EUSA) business unit evaluates, the technology, pharmaceutical, life three-metre clear floor-to-ceiling
acquires, develops and sciences or healthcare sectors. This heights, column-free office space and
manages assets in a range of focus is best illustrated by Mapletree’s accreditations from both BREEAM and
acquisition of 11 commercial buildings WELL, these buildings occupy a total
real estate sectors. in Raleigh, North Carolina, Uptown GFA of 22,000 sqm and are currently
Station in Oakland, California and the highest quality office buildings
These currently include Galatyn Commons, a four-building available in the Thames Valley. In March,
office portfolio in Richardson, Texas. Mapletree agreed terms with Three UK
commercial, logistics and data These acquisitions broaden Mapletree’s Mobile to lease 450 Longwater Avenue
centre assets. EUSA’s mandate exposure in the US with a total for a 15-year period.
investment value (TIV) of US$1 billion
focuses on broadening and (~S$1.3 billion). In line with Mapletree’s aim of building
deepening Mapletree’s scalable capital management platforms,
exposure beyond the In Europe, Mapletree marked its first Mapletree syndicated its first European
foray into the Dutch commercial office office fund, Mapletree Europe
Asia-Pacific region, by investing market with the acquisition of six office Income Trust (MERIT) in March 2021,
in new and existing asset buildings at Papendorp Park in Utrecht, successfully raising EUR507 million
classes across key gateway the Netherlands for EUR147 million (~S$812.9 million). Fully invested at
(~S$236 million). With 43,282 square closing, the fund owns seven Grade A
cities in Europe, the United metres (sqm) of gross floor area (GFA), office assets worth EUR1.2 billion
Kingdom (UK) and the United the buildings were 99% occupied as at (~S$1.9 billion) located in key growth
States (US). December 2020. cities of Manchester, Bristol, Aberdeen,
Warsaw, Munich, Dublin and Utrecht.
FY20/21 saw the practical completion
With owned and managed of The Sorting Office in Dublin, Ireland
LOGISTICS
on 7 July 2020, which was awarded
assets of S$13.1 billion as at LEED Platinum Certification from the EUSA’s portfolio of 283 logistics assets
31 March 2021, the EUSA US Green Building Council. spans 5.6 million sqm across 26 states
business unit contributed
S$344.3 million to the
Group’s EBIT + SOA¹, and
S$52.9 million in fee income
in Financial Year 2020/2021
(FY20/21).
Papendorp Park comprises six office buildings with 43,282 sqm of NLA in Utrecht, the Netherlands.
64 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2020/2021AUM 2020. With the deployment of vaccines,
fiscal stimulus and accommodative
(S$ billion) monetary policies, the 2021 outlook
seems positive for all three regions. With
25 further economic recovery, commercial
20.8 real estate fundamentals are expected
18.9 to normalise, especially in the second
20
half of the year, as workers return to their
14.6 offices and travel resumes.
15
13.8
12.5 Despite the prevalence of working
10 from home as part of social distancing
8.1 9.8
measures announced by governments
4.5 around the world to stem the spread
5 2.7 5.0 of Covid-19, commercial real estate
7 1.7 6.4 7.0
4.8 is expected to continue to play an
2.0 2.8 3.1 important role in providing space for
0
FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 collaboration, facilitation of ideas,
manifestation of corporate culture,
n Europe and the UK n The US ● Total innovation and productivity. Resilient
* AUM growth in Europe, the US and the UK – figures include data centre and student markets that are set to emerge
accommodation assets managed but not owned by EUSA. stronger in a post Covid-19 workplace
include those characterised by above
average population and office using
in the US and 20 cities in Europe. and weighted average unexpired lease employment growth, prevalence of
Most of these assets are held under term have remained stable at 95.5% and strong growth sectors, favourable
Mapletree US & EU Logistics Private approximately four years respectively. vaccine progress and subsequent easing
Trust (MUSEL), a fully invested core of pandemic restrictions. Quality assets
fund with assets under management MUSEL’s robust performance has in these market types are expected to
(AUM) of US$4.9 billion (~S$6.5 billion) enabled the fund to deliver a blended remain attractive and highly sought after
and unit holder equity of US$1.8 billion internal rate of return (IRR)³ of 16.6% in a post Covid-19 world.
(~S$2.5 billion), of which Mapletree and a cash yield of 5.9% since inception,
retains a 33.6% stake². outperforming both the target IRR³, as Logistics real estate benefitted as the
well as projected cash yields. pandemic accelerated the structural
Covid-19 has had a generally positive shift away from physical retailing to
impact on demand from several logistics D A TA C E N T R E S e-tailing and from just-in-time to
user groups, including e-commerce just-in-case supply chain management.
The pandemic has shown data centres
companies, third-party logistics Meanwhile, disruptions to global supply
to be a resilient asset class. To increase
service providers and essential goods chains have encouraged companies
exposure on this front, Mapletree
suppliers. More than 1.1 million sqm of in the US and Europe to consider
and Mapletree Industrial Trust (MIT)
leases were executed during FY20/21, on-shoring and near-shoring their
expanded its US data centre portfolio
and positive rental reversions of manufacturing to reduce risk and be
with the acquisition of a data centre
approximately 9% have been achieved closer to end-consumers.
complex located in Richmond, Virginia,
since fund inception. Both occupancy
for a purchase consideration of
US$207.8 million (~S$278.5 million).
This freehold property is fully leased 1 Earnings before interest and tax (EBIT) plus
on a triple net basis, to a multinational share of operating profit or loss of associated
company with a strong credit rating. companies and joint ventures (SOA), excluding
residential profits, incentive fee from private
funds’ divestment, revaluation gains or losses,
MIT completed the acquisition of divestment gains or losses, foreign exchange
60% stake in 14 US data centres for and derivatives gains or losses.
2 Excluding directors’ and senior management’s
US$215.3 million (~S$288.1 million) stake in MUSEL.
from Mapletree in September 2020. 3 After expenses, taxes and base management
fee but before carried interest.
MARKET REVIEW AND OUTLOOK References:
i. Bureau of Economic Analysis, United States
The pandemic has caused the US Department of Commerce
and the UK economies to contract by ii. Eurostat
Uptown Station, located in Oakland, California, iii. CBRE Research
3.5% and 9.9% respectively, while the iv. Bloomberg
the US was acquired in March 2021.
Eurozone economy shrank by 6.8% in v. JLL
65OPERATIONS REVIEW
MAPLETREE LOGISTICS TRUST
S TA Y I N G R E S I L I E N T
Mapletree Logistics Trust Amid the turbulent operating
environment in the face of a global
(MLT or the Trust) is a pandemic, exacerbated by geopolitical
Singapore-listed real estate tensions and trade conflicts, MLT’s
investment trust (REIT) that well-diversified portfolio across
geographies as well as tenant trade
invests in and manages a sectors demonstrated its resilience. Located in the Yongin-Icheon area, a prime
diversified portfolio of In FY20/21, MLT continued to deliver logistics cluster in South Korea, Mapletree Logistics
steady growth. MLT’s gross revenue Centre – Iljuk 2 is well-suited for distribution to the
163 quality, well-located, eastern part of Seoul.
increased by 14.3% year-on-year to
income-producing logistics S$561.1 million, while net property
assets in Singapore, Australia, income rose 13.8% to S$499.1 million.
The amount distributable to unitholders offers attractive long term prospects.
China, Hong Kong SAR, India, rose 10.4% to S$333.1 million while These acquisitions strengthen MLT’s
Japan, Malaysia, South Korea distribution per unit was 2.3% higher at geographical diversification and
8.326 Singapore cents. network connectivity, positioning
and Vietnam. the Trust to capture future growth
MLT’s robust performance was opportunities in the region.
As at 31 March 2021, the driven by organic growth from its
existing portfolio, contributions MLT acquired a portfolio of nine
business unit’s total assets high-quality modern logistics
from accretive acquisitions as well
under management was as the completed redevelopment of properties, seven in China, one in
S$10.7 billion. It contributed Mapletree Ouluo Logistics Park Phase 2 Malaysia³ and one in Vietnam, as well
in China. In a period of heightened as the remaining 50% interest in
S$467.7 million to Mapletree’s 15 logistics properties in China from
market uncertainty, the management
EBIT + SOA¹ and S$81.6 million maintained a firm focus on active its Sponsor, Mapletree Investments
for S$1.1 billion.
to fee income² in Financial asset management targeting tenant
retention and portfolio occupancy.
Year 2020/2021 (FY20/21). On the back of these efforts, portfolio In South Korea, MLT acquired a
occupancy was maintained at a stable portfolio of five modern freehold
level throughout the year, ending at logistics properties located in
MLT became a component Yongin-Icheon, for KRW280 billion
97.5% as at 31 March 2021. The lease
stock in the MSCI Singapore expiry profile is well-staggered with a (~S$331.5 million). With their modern
Index on 29 May 2020 and has weighted average lease expiry (by net specifications and favourable locations
lettable area) of 3.6 years. with excellent connectivity, the
been a component stock in properties will significantly scale up
the benchmark Straits Times STRENGTHENING NETWORK MLT’s competitive positioning, enabling
Index since December 2019. the Trust to better capture growth
CONNECTIVITY IN ASIA PACIFIC opportunities in the South Korean
Inclusion in these indices has During FY20/21, MLT enhanced its logistics market.
enhanced MLT’s visibility and regional presence with the acquisitions
of 18 quality and well-located logistics In March 2021, MLT made inroads
profile among global investors
facilities in Australia, China, India, into India through the acquisition
and raised its trading liquidity. Japan, South Korea and Vietnam as of two modern logistics facilities for
well as the remaining 50% interest in 15 INR4,550 million (~S$83.9 million).
logistics properties in China. FY20/21 The properties are located in Pune,
also marked MLT’s first foray into India, an important warehousing market in
a fast-growing logistics market that India with demand driven largely by
66 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2020/2021e-commerce, third-party logistics as
well as manufacturing. The properties
are leased to a tenant base comprising
mostly of multinational corporations.
During the year, MLT also completed
the acquisitions of two properties in
Australia – a warehouse in Brisbane for
A$114 million (~S$118.7 million) and
another in Melbourne via a forward
purchase for A$18.4 million
(~S$19.2 million). In Japan, MLT
acquired a newly developed freehold
logistics facility in Hiroshima for
JPY6,370 million (~S$78.7 million).
These properties are designed with
modern specifications and offer Mapletree Logistics Park Talegaon is well-connected to the major cities and transportation infrastructure in
excellent connectivity to transportation the region, such as the Mumbai Metropolitan Region, Pune city centre, Pune Airport and Jawaharlal Nehru
infrastructure such as highways and Port, via the Mumbai-Pune Expressway.
airports.
UNLOCKING VALUE THROUGH MLT also continued to gain momentum rates of e-commerce adoption and
PROACTIVE ASSET MANAGEMENT in sustainable financing by securing its a greater emphasis on supply chain
Asset redevelopment and selective inaugural green loan valued at S$200 resiliency have translated to growing
divestment of older properties form million to refinance or finance a suite demand for modern logistics facilities
an integral part of MLT’s portfolio of green projects. in markets with fast-growing domestic
rejuvenation strategy to build a resilient consumption.
and future ready portfolio. In FY20/21, MARKET REVIEW AND OUTLOOK
MLT completed the redevelopment of MLT’s diversified markets and tenant
The International Monetary Fund
Mapletree Ouluo Logistics Park Phase 2 base continue to underpin the stability
forecasts global growth of 6% in 2021
on a prime site close to Shanghai of its cash flows and operational
after a 3.5% contraction in 2020.
Pudong International Airport in China. performance. Overall leasing demand
In advanced economies, pent-up
The S$70 million redevelopment has in MLT’s markets is expected to remain
demand is expected to drive growth
resulted in a modern, two-storey relatively resilient. MLT continues to
as economic activity normalises on the
ramp-up facility with a gross floor area pursue yield accretive acquisitions of
back of vaccines rollout. The emerging
of 80,700 sqm, an increase of 2.4 times quality logistics facilities and asset
markets and developing economies
from before. Given its strategic enhancements to drive organic growth
may take until 2023 to return to
location, the property has secured while maintaining a disciplined capital
pre-pandemic output levels. However,
strong leasing demand from third-party management approach to mitigate
recovery of the world economy
logistics service providers. the impact of interest rate and foreign
continues to face uncertainty and risks
exchange volatilities.
in the face of new Covid-19 outbreaks
P R U D E N T C A P I TA L M A N A G E M E N T and variants.
MLT continues to maintain its discipline
in capital and risk management to Nevertheless, the logistics market
ensure a strong balance sheet and in Asia Pacific has demonstrated its
the financial flexibility to seize growth resilience in the past year and remains 1 Earnings before interest and tax (EBIT) plus
share of operating profit or loss of associated
opportunities. During the year, MLT a bright spot. Structural drivers of companies and joint ventures (SOA), excluding
launched an equity fundraising exercise demand in the logistics sector such as residential profits, incentive fee from private
which was well received by institutional e-commerce growth, urbanisation and funds’ divestment, revaluation gains or losses,
divestment gains or losses, foreign exchange
and retail investors, raising a total modernisation of supply chains are and derivatives gains or losses.
of S$644.1 million. The proceeds likely to underpin demand for modern 2 Includes REIT management fees.
3 The proposed acquisition of Mapletree
were deployed to partially fund the warehouse space for some time to Logistics Hub – Tanjung Pelepas is pending
acquisitions of nine logistics properties come. Several of these structural completion.
in China, Malaysia and Vietnam as trends were evident prior to the
Reference:
well as the remaining 50% interest in pandemic and have been accelerated i. International Monetary Fund, World Economic
15 logistics properties in China. by the Covid-19 crisis. Notably, higher Outlook, April 2021
67OPERATIONS REVIEW
MAPLETREE industrial TRUST
Mapletree Industrial Trust (MIT)
is a Singapore-listed real estate
investment trust (REIT) that
manages a diverse portfolio of
87 properties in Singapore and
28 properties in North America
(including 13 data centres
held through a joint venture
with Mapletree Investments).
MIT’s property portfolio An artist’s impression of the redeveloped Kolam Ayer 2 Cluster which will be completed in the second half
of 2022.
includes Data Centres,
Hi-Tech Buildings, Business
Park Buildings, Flatted SUPPORTING TENANTS DURING for FY20/21 increased by 2.5% y-o-y to
THE COVID-19 PANDEMIC 12.55 Singapore cents.
Factories, Stack-up/Ramp-up
Buildings and Light Industrial MIT extended rental reliefs of MIT was added to the FTSE Straits
approximately S$12.7 million to tenants Times Index on 22 June 2020,
Buildings. in FY20/21, comprising MIT’s Covid-19 enhancing its trading liquidity and
Assistance and Relief Programme as visibility with investors.
Managed by Mapletree well as mandated rental reliefs under
the Covid-19 (Temporary Measures) BUILDING A RESILIENT
Industrial Trust Management Act 2020. Priority was given to PORTFOLIO
Ltd, the REIT seeks to provide small and medium-sized enterprises
negatively affected by lower business MIT acquired the balance 60%
unitholders with sustainable interest in 14 data centres in the US
volumes and supply chain disruptions.
and growing returns through from Mapletree for approximately
proactive asset management, D E L I V E R I N G S TA B L E R E T U R N S US$215.3 million (~S$288.5 million).
The agreed property value of the
value-creating investment Gross revenue and net property 14 data centres on the 60% basis was
management and prudent income (NPI) for FY20/21 grew 10.2% US$494.0 million (~S$662.0 million).
and 10.4% year-on-year (y-o-y) to
capital management. S$447.2 million and S$351.0 million MIT raised gross proceeds of
respectively. These were mainly approximately S$410.0 million through
As at 31 March 2021, MIT’s attributed to the consolidation of a private placement to fund the
revenue and expenses from the 14 data acquisition, which was approximately
total assets under management centres in the United States (US). The 8.2 times covered at the top end of
was S$6.8 billion. In Financial increase in gross revenue was partly the issue price range of S$2.800 per
Year 2020/2021 (FY20/21), it offset by rental reliefs extended to new unit.
tenants in FY20/21 and revenue loss
contributed S$182.2 million to from the redevelopment of the Kolam In FY20/21, the 14 data centres
Mapletree’s EBIT + SOA1 and Ayer 2 Cluster. Distributable income for were 96.7% leased to 15 reputable
S$63.9 million to fee income2. FY20/21 rose 11.3% y-o-y to S$295.3 tenants, including Fortune Global 500
million. The improved performance corporations and NYSE- and Nasdaq-
was mainly due to higher NPI and cash listed companies. With a net lettable
distributions declared by joint ventures. area (NLA) of about 209,291 square
Correspondingly, distribution per unit metres (sqm), the 14 data centres
68 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2020/2021You can also read
