Mapletree Logistics Trust : 2Q 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 CONDENSED INTERIM FINANCIAL STATEMENTS AND DISTRIBUTION ANNOUNCEMENT FOR THE HALF YEAR ENDED 30 SEPTEMBER 2021

TABLE OF CONTENTS

Item No.	Description	Page No.
-	Summary of Mapletree Logistics Trust Group Results	2
-	Introduction	2
1(a)(i)	Condensed Interim Consolidated Statement of Profit or Loss and Distribution	3 - 12
	Statement
1(a)(ii)	Condensed Interim Consolidated Statement of Comprehensive Income	3 - 12
1(b)(i)	Condensed Interim Statements of Financial Position	13 - 17
1(b)(ii)	Aggregate Amount of Borrowings and Debt Securities	13 - 17
1(c)	Condensed Interim Consolidated Statement of Cash Flows	18 - 20
1(d)(i)	Condensed Interim Statements of Movements in Unitholders' Funds	21 - 24
1(d)(ii)	Details of Any Change in the Units	21 - 24
1(e)	Notes to the Unaudited Condensed Interim Financial Statements	25 - 30
2 & 3	Audit Statement	30
4 & 5	Changes in Accounting Policies	31
6	Earnings Per Unit ("EPU") and Distribution Per Unit ("DPU")	31
7	Net Asset Value ("NAV") and Net Tangible Asset ("NTA") Per Unit	31
8	Review of Performance	32 - 34
9	Variance from Previous Forecast / Prospect Statement	35
10	Outlook & Prospects	35
11 & 12	Distributions	36 - 38
13	General Mandate on Interested Person Transactions	38
14	Confirmation Pursuant to Rule 720(1) of the Listing Manual	38
15	Confirmation by the Board	38

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MAPLETREE LOGISTICS TRUST

UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS AND DISTRIBUTION ANNOUNCEMENT FOR THE HALF YEAR ENDED 30 SEPTEMBER 2021

Summary of Mapletree Logistics Trust Group Results

	GROUP		GROUP
	3 mths ended		3 mths ended		6 mths ended		6 mths ended
	30 Sep 2021 1	30 Sep 2020 1	30 Sep 2021 1	30 Sep 2020
Gross Revenue (S$'000)	165,073		131,858		328,804		264,229
Net Property Income (S$'000)	144,449		118,856		288,599		237,694
Amount Distributable (S$'000)	97,657	2	82,606	3	194,593	2	164,653
- to Perpetual securities holders	4,290		4,290		8,533		8,533
- to Unitholders of MLT	93,367		78,316		186,060		156,120
Available Distribution	2.173		2.055		4.334		4.100
per Unit ("DPU") (cents)

1

3

Footnotes:

1. Quarter ended 30 September 2021 ("2Q FY21/22") and half year ended 30 September 2021 ("1H FY21/22") started and ended with 163 properties. Quarter ended 30 September 2020 ("2Q FY20/21") and half year ended 30 September 2020 ("1H FY20/21") started with 145 properties and ended with 146 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 Pacific that would provide its Unitholders with a stable distribution stream.

As at 30 September 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$10.8 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 CONDENSED INTERIM FINANCIAL STATEMENTS AND DISTRIBUTION ANNOUNCEMENT FOR THE HALF YEAR ENDED 30 SEPTEMBER 2021

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

			GROUP
		3 mths ended	3 mths ended	Increase/
		30 Sep 2021	30 Sep 2020	(Decrease)
	Note	S$'000	S$'000	%
Gross revenue	1	165,073	131,858	25.2
Property expenses	2	(20,624)	(13,002)	58.6
Net property income		144,449	118,856	21.5
Interest income	3	396	2,495	(84.1)
Manager's management fees	4	(19,142)	(14,886)	28.6
Trustee's fee		(370)	(308)	20.1
Other trust income, net	5	403	6,703	(94.0)
Borrowing costs	6	(25,002)	(20,545)	21.7
Net investment income		100,734	92,315	9.1
Net change in fair value of financial derivatives	7	6,305	(13,914)	NM
Net income		107,039	78,401	36.5
Share of results of joint ventures	8	-	107	NM
Profit before income tax		107,039	78,508	36.3
Income tax	9	(10,665)	(6,268)	70.1
Profit for the period		96,374	72,240	33.4
Profit attributable to:
Unitholders of MLT		91,903	67,777	35.6
Perpetual securities holders		4,290	4,290	-
Non-controlling interests		181	173	4.6
Profit for the period		96,374	72,240	33.4
Distribution Statement
Profit attributable to Unitholders of MLT		91,903	67,777	35.6
Adjustment for net effect of non-tax
deductible items and other adjustments	10	1,464	10,539	(86.1)
Total amount distributable to Unitholders	11	93,367	78,316	19.2
Earnings per unit (cents)
- Basic		2.14	1.78
- Diluted		2.14	1.78

NM: Not meaningful

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MAPLETREE LOGISTICS TRUST

UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS AND DISTRIBUTION ANNOUNCEMENT FOR THE HALF YEAR ENDED 30 SEPTEMBER 2021

1(a)(i) Condensed Interim 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 Sep 2021	30 Sep 2020	(Decrease)
	S$'000	S$'000	%
Rental income	144,440	118,698	21.7
Service charges	18,268	10,832	68.6
Other operating income	2,365	2,328	1.6
	165,073	131,858	25.2
2. Property expenses comprise the following:
		GROUP
	3 mths ended	3 mths ended	Increase/
	30 Sep 2021	30 Sep 2020	(Decrease)
	S$'000	S$'000	%
Operation and maintenance	4,924	3,925	25.5
Property and other taxes	7,681	5,010	53.3
Property and lease management fees	3,753	2,738	37.1
Marketing expenses	377	344	9.6
Allowance for doubtful receivables	361	-	NM
Others	3,528	985	>100
	20,624	13,002	58.6

1. For 2Q FY20/21, it relates mainly to interest income from joint ventures. MLT acquired the 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 Sep 2021	30 Sep 2020	(Decrease)
	S$'000	S$'000	%
Base fees	14,009	10,729	30.6
Performance fees	5,133	4,157	23.5
	19,142	14,886	28.6

The increase is in line with the growth of the Group's portfolio from acquisitions completed in FY20/21.

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MAPLETREE LOGISTICS TRUST

UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS AND DISTRIBUTION ANNOUNCEMENT FOR THE HALF YEAR ENDED 30 SEPTEMBER 2021

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

5. Other trust income includes the following:

		GROUP
	3 mths ended	3 mths ended	Increase/
	30 Sep 2021	30 Sep 2020	(Decrease)
	S$'000	S$'000	%
Net foreign exchange gain	2,711	8,178	(66.9)
Other trust expenses, net	(2,308)	(1,475)	56.5
	403	6,703	(94.0)

For 2Q FY21/22, the net foreign exchange gain arose mainly from the revaluation of USD denominated borrowings, partly offset by AUD denominated receivables.

For 2Q FY20/21, the net foreign exchange gain arose mainly from the revaluation of USD denominated borrowings and CNH denominated receivables.

Other trust expenses include legal and professional fees, audit and tax consultancy fees, and non- property related miscellaneous expenses.

6. Borrowing costs include the following:

		GROUP
	3 mths ended	3 mths ended	Increase/
	30 Sep 2021	30 Sep 2020	(Decrease)
	S$'000	S$'000	%
Interest expenses:
- Bank and other borrowings	22,898	18,685	22.5
- Lease liabilities	1,022	1,106	(7.6)
Financing fees	1,082	754	43.5
	25,002	20,545	21.7

1. Net change in fair value of financial derivatives comprises 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 impact on total amount distributable to Unitholders.
2. For 2Q FY20/21, 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.

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