Mapletree Logistics Trust : 1Q FY21/22 Financial Results – Financial Statement

(Constituted in the Republic of Singapore pursuant to a Trust Deed dated 5 July 2004 (as amended))

MAPLETREE LOGISTICS TRUST UNAUDITED FINANCIAL STATEMENTS AND DISTRIBUTION ANNOUNCEMENT FOR THE FIRST QUARTER ENDED 30 JUNE 2021

TABLE OF CONTENTS

Item No.	Description	Page No.
-	Summary of Mapletree Logistics Trust Group Results	2
-	Introduction	2
1(a)(i)	Consolidated Statement of Profit or Loss and Distribution Statement	3 - 5
1(a)(ii)	Consolidated Statement of Comprehensive Income	6
1(b)(i)	Statements of Financial Position	7 - 8
1(b)(ii)	Aggregate Amount of Borrowings and Debt Securities	9
1(c)	Consolidated Statement of Cash Flows	10 - 11
1(d)(i)	Statements of Movements in Unitholders' Funds	12 - 13
1(d)(ii)	Details of Any Change in the Units	13
1(e)	Notes to the Unaudited Financial Statements	14 - 19
2 & 3	Audit Statement	19
4 & 5	Changes in Accounting Policies	20
6	Earnings Per Unit ("EPU") and Distribution Per Unit ("DPU")	20
7	Net Asset Value ("NAV") and Net Tangible Asset ("NTA") Per Unit	20
8	Review of Performance	21 - 22
9	Variance from Previous Forecast / Prospect Statement	23
10	Outlook & Prospects	23
11 & 12	Distributions	24 - 26
13	General Mandate on Interested Person Transactions	26
14	Confirmation Pursuant to Rule 720(1) of the Listing Manual	26
15	Confirmation by the Board	26

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MAPLETREE LOGISTICS TRUST

UNAUDITED FINANCIAL STATEMENTS AND DISTRIBUTION ANNOUNCEMENT FOR THE FIRST QUARTER ENDED 30 JUNE 2021

Summary of Mapletree Logistics Trust Group Results

		GROUP
	3 mths ended		3 mths ended
	30 Jun 2021 1		30 Jun 2020
Gross Revenue (S$'000)	163,731			132,371
Net Property Income (S$'000)	144,150			118,838
Amount Distributable (S$'000)	96,936	2		82,047
- to Perpetual securities holders	4,243			4,243
- to Unitholders of MLT	92,693			77,804
Available Distribution per Unit ("DPU") (cents)	2.161			2.045

1

3

Footnotes:

1. Quarter ended 30 June 2021 ("1Q FY21/22") started and ended with 163 properties. Quarter ended 30 June 2020 ("1Q FY20/21") started and ended with 145 properties.
2. This includes partial distribution of the gains from the divestment of MapletreeLog Integrated (Shanghai) (HKSAR) Limited and its wholly-owned subsidiary, MapletreeLog Integrated (Shanghai) Co., Ltd., which owns Mapletree Waigaoqiao Logistics Park ("Mapletree Integrated") of S$1,799,000 per quarter (for 12 quarters from 3Q FY19/20).
3. This includes partial distribution of the gains from the divestments of Mapletree Integrated of S$1,799,000 per quarter (for 12 quarters from 3Q FY19/20), Gyoda Centre, Iwatsuki B Centre, Atsugi Centre, Iruma Centre and Mokurenji Centre (collectively known as "5 divested properties in Japan") of S$990,000 per quarter (for 8 quarters from 1Q FY19/20) and 7 Tai Seng Drive of
   S$1,924,000 per quarter (for 12 quarters from 1Q FY18/19) respectively.

INTRODUCTION

Mapletree Logistics Trust ("MLT") is a Singapore-domiciled Real Estate Investment Trust constituted pursuant to the Trust Deed dated 5 July 2004 (as amended) between Mapletree Investments Pte Ltd and Mapletree Trustee Pte. Ltd.. The Trust Deed is governed by the laws of the Republic of Singapore. Mapletree Logistics Trust Management Ltd. ("the Manager") replaced Mapletree Investments Pte Ltd as manager of MLT on 14 June 2005 and HSBC Institutional Trust Services (Singapore) Limited replaced Mapletree Trustee Pte. Ltd. as trustee of MLT on 24 June 2005.

MLT was formally admitted to the Official List of the Singapore Exchange Securities Trading Limited on 28 July 2005. MLT's initial IPO portfolio comprised 15 Singapore-based properties with a total book value of S$422 million as at 28 July 2005.

The principal activity of MLT and its subsidiaries (the "Group") is to invest in a diversified portfolio of quality income-producing logistics real estate and real estate-related assets in Asia that would provide its Unitholders with a stable distribution stream.

As at 30 June 2021, the Group's portfolio had grown to a portfolio of 163 properties, comprising 52 properties in Singapore, 9 in Hong Kong SAR, 30 in China, 18 in Japan, 18 in South Korea, 12 in Australia, 15 in Malaysia, 7 in Vietnam and 2 in India. The total value of assets under management is S$10.7 billion.

MLT's distribution policy is to distribute at least 90% of its distributable income and such distributions are typically paid on a quarterly basis, with the amount calculated for the quarter ended as at 31 March, 30 June, 30 September and 31 December. Distributions are paid in Singapore Dollar.

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MAPLETREE LOGISTICS TRUST

UNAUDITED FINANCIAL STATEMENTS AND DISTRIBUTION ANNOUNCEMENT FOR THE FIRST QUARTER ENDED 30 JUNE 2021

1(a)(i) Consolidated Statement of Profit or Loss and Distribution Statement

			GROUP
		3 mths ended	3 mths ended	Increase/
		30 Jun 2021	30 Jun 2020	(Decrease)
	Note	S$'000	S$'000	%
Gross revenue	1	163,731	132,371	23.7
Property expenses		(19,581)	(13,533)	44.7
Net property income		144,150	118,838	21.3
Interest income	2	362	2,489	(85.5)
Manager's management fees	3	(18,780)	(14,915)	25.9
Trustee's fee		(381)	(305)	24.9
Other trust expenses, net	4	(4,449)	(7,342)	(39.4)
Borrowing costs	5	(25,044)	(21,647)	15.7
Net investment income		95,858	77,118	24.3
Net change in fair value of financial derivatives	6	(2,784)	4,732	NM
Net income		93,074	81,850	13.7
Share of results of joint ventures	7	-	(103)	NM
Profit before income tax		93,074	81,747	13.9
Income tax	8	(10,398)	(6,943)	49.8
Profit for the period		82,676	74,804	10.5
Profit attributable to:
Unitholders of MLT		78,191	70,520	10.9
Perpetual securities holders		4,243	4,243	-
Non-controlling interests		242	41	>100
Profit for the period		82,676	74,804	10.5
Distribution Statement
Profit attributable to Unitholders of MLT		78,191	70,520	10.9
Adjustment for net effect of non-tax
deductible items and other adjustments	9	14,502	7,284	99.1
Total amount distributable to Unitholders	10	92,693	77,804	19.1
Earnings per unit (cents)
- Basic		1.83	1.85
- Diluted		1.83	1.85

NM: Not meaningful

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MAPLETREE LOGISTICS TRUST

UNAUDITED FINANCIAL STATEMENTS AND DISTRIBUTION ANNOUNCEMENT FOR THE FIRST QUARTER ENDED 30 JUNE 2021

1(a)(i) Consolidated Statement of Profit or Loss and Distribution Statement (continued)

1. Gross revenue comprises the following:

		GROUP
	3 mths ended	3 mths ended	Increase/
	30 Jun 2021	30 Jun 2020	(Decrease)
	S$'000	S$'000	%
Rental income	142,028	118,372	20.0
Service charges	17,462	10,414	67.7
Other operating income	4,241	3,585	18.3
	163,731	132,371	23.7

1. This relates mainly to interest income from joint ventures. MLT acquired remaining 50.0% interest in the 15 joint venture properties on 1 December 2020 and these entities became subsidiaries of the Group.
2. Manager's management fees comprise the following:

		GROUP
	3 mths ended	3 mths ended	Increase/
	30 Jun 2021	30 Jun 2020	(Decrease)
	S$'000	S$'000	%
Base fees	13,814	10,678	29.4
Performance fees	4,966	4,237	17.2
	18,780	14,915	25.9

The increase is in line with the growth of the Group's portfolio and financials.

4. Other trust expenses include the following:

		GROUP
	3 mths ended	3 mths ended	Increase/
	30 Jun 2021	30 Jun 2020	(Decrease)
	S$'000	S$'000	%
Net foreign exchange loss	1,825	6,024	(69.7)

For 1Q FY21/22, this arose mainly from the revaluation of USD and AUD denominated receivables, partly offset by USD denominated borrowings.

For 1Q FY20/21, this arose mainly from the revaluation of USD denominated borrowings and CNH denominated receivables.

5. Borrowing costs include the following:

		GROUP
	3 mths ended	3 mths ended	Increase/
	30 Jun 2021	30 Jun 2020	(Decrease)
	S$'000	S$'000	%
Interest on borrowings	22,909	19,460	17.7
Interest expense on lease liabilities	1,043	1,112	(6.2)

6. Net change in fair value of financial derivatives comprise net change in fair value of interest-rate swaps, cross currency swaps and currency forwards which were entered into to hedge the Group's interest rate and foreign currency risks. This has no significant impact on total amount distributable to Unitholders.

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MAPLETREE LOGISTICS TRUST

UNAUDITED FINANCIAL STATEMENTS AND DISTRIBUTION ANNOUNCEMENT FOR THE FIRST QUARTER ENDED 30 JUNE 2021

1(a)(i) Consolidated Statement of Profit or Loss and Distribution Statement (continued)

1. Share of joint venture relates to MLT's 50.0% interest in 15 joint venture properties. The results for the joint ventures were equity accounted for at the Group level.
   On 1 December 2020, MLT completed the acquisition of the remaining 50.0% interest in the 15 joint venture properties. Consequently, the joint ventures became subsidiaries of the Group and its financials were consolidated in the Group's financial statements.
2. Income tax comprises current income tax, withholding tax and deferred tax. The increase is mainly attributed to withholding tax and deferred tax from acquisitions completed in FY20/21.

		GROUP
	3 mths ended	3 mths ended	Increase/
	30 Jun 2021	30 Jun 2020	(Decrease)
	S$'000	S$'000	%
Current income tax - current year	2,830	2,262	25.1
Current income tax - prior years	(65)	43	NM
Withholding tax	3,431	1,904	80.2
Deferred tax	4,202	2,734	53.7
	10,398	6,943	49.8

1. Adjustment for net effect of non-tax deductible items and other adjustments include trustee fee, financing fees incurred on bank facilities, unrealised foreign exchange difference, foreign exchange difference on capital items, net change in the fair value of financial derivatives, management fees paid/payable in units, share of results of joint ventures and other adjustments.
2. Distribution to Unitholders

	GROUP
3 mths ended	3 mths ended	Increase/
30 Jun 2021	30 Jun 2020	(Decrease)
S$'000	S$'000	%

Distribution comprises:
- from operations	73,519	63,748	15.3
- from other gains	-	1,924	NM
- from capital returns	19,174	12,132	58.0
	92,693	77,804	19.1

Distribution from operations:

For 1Q FY21/22, this includes partial distribution of the gain from the divestment of Mapletree Integrated.

For 1Q FY20/21, this includes partial distribution of the gains from the divestments of Mapletree Integrated and 5 divested properties in Japan.

Distribution from other gains:

For 1Q FY20/21, this relates to the partial distribution of gain from the divestment of 7 Tai Seng Drive, which was fully distributed in 4Q FY20/21.

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