Company Guide Mapletree Industrial Trust

Version 14 | Bloomberg: MINT SP | Reuters: MAPI.SI Refer to important disclosures at the end of this report

DBS Group Research . Equity 20 Feb 2019

BUY Lighthouse in stormy weather Last Traded Price ( 19 Feb 2019): S$1.99 (STI : 3,259.80) Price Target 12-mth: S$2.30 (16% upside) (Prev S$2.22) Maintain BUY with a TP of S$2.30. We maintain our BUY call with a higher TP of S$2.30 on Mapletree Industrial Trust (MINT). Analyst With the recent equity injection, MINT has expanded its Derek TAN +65 6682 3716 [email protected] financial capacity to take on opportunistic acquisitions. In the Mervin SONG, CFA +65 6682 3715 [email protected] meantime, we expect MINT to deliver steady earnings CAGR of Carmen Tay +65 6682 3719 [email protected] 3.0% which is at the higher end of its peer range, and the stock What’s New offers an attractive yield of >6.0%. • New equity injection empowers MINT with greater financial capacity Where we differ: Diversity is the right strategy. We are firm believers of MINT’s overseas ventures and gather that investors • Management continues to add value to the portfolio will continue to accord the REIT strong valuations given its while ongoing developments drive NAV growth ability to offer “strong certainty of growth”. The manager’s • BUY, TP raised to S$2.30 well-timed acquisitions and completions of development projects underpin a steady growth profile and more importantly, a constant upgrade and refresh of the portfolio that is resistant Price Relative to business cycle fluctuations. S$ Relative Index 2.2 208 18 Tai Seng a value accretive deal; development pipeline of data 2.0 188

168 1.8 centers in Singapore to drive earnings. We see the recent 148 1.6 128 acquisition of 18 Tai Seng to be value accretive. Apart from 1.4 108

1.2 88 being a major driver to topline and distributions in FY20, MINT’s Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 superior portfolio specifications will enable the REIT to gain Mapletree Industrial Trust (LHS) Relative STI (RHS) access and attract a wider group of industrial tenants to its Forecasts and Valuation portfolio. In addition, the redevelopment of 7 Tai Seng into a FY Mar (S$m) 2018A 2019F 2020F 2021F data center will also drive asset values going forward. These Gross Revenue 363 369 398 412 value accretive developments in our view justifies MINT to trade Net Property Inc 278 277 300 311 at a above peer P/NAV of 1.3x-1.4x. Total Return 301 223 242 249 Distribution Inc 216 227 246 254 Valuation: EPU (S cts) 12.5 11.8 12.5 12.5 EPU Gth (%) 12 (5) 5 0 MINT’s resilience is a value trait in this market but this has yet DPU (S cts) 11.7 12.0 12.4 12.7 to be reflected in its current share price. We maintain our BUY DPU Gth (%) 3 2 3 3 call and raise our TP to S$2.30 to reflect recent acquisitions NAV per shr (S cts) 153 148 150 150 and fund raisings. PE (X) 15.9 16.8 15.9 15.9 Distribution Yield (%) 5.9 6.1 6.2 6.4 P/NAV (x) 1.3 1.3 1.3 1.3 Key Risks to Our View: Aggregate Leverage (%) 30.5 30.8 30.8 30.9 Rising interest rates. An increase in refinancing rates will be ROAE (%) 8.8 8.0 8.4 8.4 negative to distributions. However, we note that MINT has

minimised this risk by hedging c.74% of its borrowings into Distn. Inc Chng (%): 0 0 0 fixed rates. Consensus DPU (S cts): 12.2 12.8 13.1 Other Broker Recs: B: 7 S: 3 H: 5 At A Glance Source of all data on this page: Company, DBS Bank, Bloomberg Issued Capital (m shrs) 1,887 Finance L.P Mkt. Cap (S$m/US$m) 3,755 / 2,776 Major Shareholders (%) Temasek Holdings 29.7 Schroders Plc 5.7 Free Float (%) 64.6 3m Avg. Daily Val (US$m) 4.6 ICB Industry : Financials / Real Estate Investment Trust

ed: JS/ sa: YM, CW, CS Company Guide

Mapletree Industrial Trust

WHAT’S NEW

Lighthouse in stormy weather

Equity injection for future growth: Mapletree Industrial Trust Gearing level is maintained at c.34.7% ( on a see-through (MINT) recently announced an equity placement exercise basis) post deal which is still within management’s (EFR), issuing S$200m worth of new equity which will be comfortable range. deployed to part fund the acquisition of 18 Tai Seng, which Attractive growth profile with increased optionality for was recently completed. The EFR was well received at 2.2x acquisitions. MINT is projected to continue delivering an covered, priced at S$1.945/unit, representing 3.3% discount attractive growth profile of 3.0% CAGR over FY20-21 on the to the adjusted VWAP. back of: (i) full year contribution from the acquisition of 18 We believe that the manager has taken advantage of MINT’s Tai Seng, (ii) stable portfolio occupancy rates with upside bias strong share price performance to raise more equity than as we expect the continued lease up of 30 Kallang Way initially expected (c.74% of the purchase price of S$271m), (c.89% committed but physical occupancy of only 38% as of which is a positive move given that the additional debt Dec’18 was recorded on the books), and (iii) completion of funding capacity will enable the manager to take on more the upgrading of 7 Tai Seng Drive by end of 2HCY19 (total opportunities as they arise in the medium term. We estimate development cost of S$95m, including purchase MINT has debt funded headroom of close to S$400m, taking consideration of S$68.0m for the property). it to its 40% gearing target. TP raised to S$2.30. Our TP is raised to S$2.30 to account for Our estimates are updated to reflect the EFR and contribution the recent capital market activity. At our TP, the stock offers a from 18 Tai Seng, which we have conservatively assumed to total return of 22% (16% upside + 6% yield). start in FY2020 As a result, our DPU estimates are raised by

0.6% in FY20 and FY21.

Acquisition of 18 Tai Seng

Source of all data: Company, DBS Bank

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Company Guide

Mapletree Industrial Trust

Net Property Income and Margins (%) S$ m 400 CRITICAL DATA POINTS TO WATCH 83.3% 350 81.3% 300 Critical Factors 250 79.3%

Offering high level of income visibility and stability. MINT has 200 77.3% 150 consistently delivered portfolio occupancy rates averaging around 75.3% 100 90% which has been steady across market cycles. This is mainly due 50 73.3% to its diversified asset portfolio and wide base of tenants in different 0 71.3% industries. There is therefore no industry-specific concentration risk 2017A 2018A 2019F 2020F 2021F Net Property Income Net Property Income Margin % meaning that performance is likely to remain stable across market cycles. Net Property Income and Margins (%) 78% Industrial sector projected to turn around by 2019. We believe that 74 78% the industrial sector will bottom out in 2019 after the large supply of 72 77% new industrial properties that were completed last year have been 70 77% taken up. Our positive stance is premised on (i) the spike in new 68 76% 76% 66 industrial supply peaked in 2018 and is projected to fall substantially 75% 64 from 2019 onwards, (ii) recent positive numbers coming out of 75% 62 74% Singapore industrial production, if sustained, could mean that the 60 74% slack in vacancy rates could be absorbed from 2018-2019 onwards.

2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 Improving portfolio quality. We like the recent acquisition of 18 Tai Net Property Income Net Property Income Margin % Seng, a quality hi-specifications industrial property located in Paya Distribution Paid / Net Operating CF Lebar iPark. At an initial yield of 6.8% which we see to be value 1.1 (x) accretive to MINT (portfolio quality improvement and accretion to 1.0

DPUs). Upside will come from potential occupancy improvements 0.9 which we have not priced in. 0.8

0.7

Acquisitions of a portfolio of US data centres to re-accelerate 0.6 growth. The joint-acquisition of a portfolio of 14 data centres with 0.5 sponsor, Mapletree Investments, sets MINT on a new growth path. 0.4 Taking a 40% stake in the JV, MINT’s capital commitment of 0.3 2017A 2018A 2019F 2020F 2021F US$300m (c.S$408m) will form c.10% of the REIT’s asset value. We like management taking incremental steps towards diversification which aims to limit earnings volatility for investors. The manager has Interest Cover (x) also undertaken an equity fund raising (EFR) to part-fund the deal, (x) 9.00 which was well-received by investors. With the target portfolio of 8.00 data centres offering MINT a long WALE and annual step-ups 7.00 underpins steady growth in DPUs in the medium term. 6.00 5.00 Development of 7 Tai Seng into a high spec property to underpin 4.00 earnings trend in the medium term. The manager will soon 3.00 2.00 commence the redevelopment of 7 Tai Seng Road into a data center 1.00 which will be leased to Equinix. The improvement works include 0.00 increasing power and floor loading capabilities and installing 2017A 2018A 2019F 2020F 2021F additional telecommunication infrastructure. The tenant (from the IT industry) has committed for an initial term of 25 years, offering Source: Company, DBS Bank income visibility. We estimate a ROI of c.6.3% for this property when completed in 2H19.

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Company Guide

Mapletree Industrial Trust

Appendix 1: A look at Company's listed history – what drives its share price?

MINT’s share price vs 10-year bond movements Remarks

S$ S cts 2.20 3.0% While rising interest rates will negatively impact share 2.8% 2.00 price, actual impact is not 2.6% strongly correlated. 2.4% 1.80 Correlation between MINT’s 2.2% share price and 10-year 1.60 2.0% bond yield is 0.5x. 1.8% 1.40 1.6%

1.4% 1.20 1.2% 1.00 1.0% Feb-13 Feb-14 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 MINT Share Price (LHS) 10-year bond yield (RHS)

Source: DBS Bank MINT’s share price vs forward DPU growth Remarks

S$ (%) 1.50 0.08 We found a strong 1.45 correlation of 0.8x 0.07 between MINT’s 1.40 0.06 historical share price and 1.35 DPU growth. Looking 1.30 0.05 ahead, with DPU growth 1.25 0.04 projected to grow at 3% in FY20-21. 1.20 0.03 1.15 0.02 1.10 1.05 0.01 1.00 0 Feb-13 Feb-14 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 MINT P/NAV (LHS) Rate of DPU Chg (%) (RHS)

Source: DBS Bank

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Company Guide

Mapletree Industrial Trust

Aggregate Leverage (%) Balance Sheet: Low gearing allows for opportunistic acquisitions and 30.0% developments. Current gearing remains conservative at close to 25.0% 34.7% (see through basis) , implying that the manager has the capability to take on further debt-funded acquisitions when the 20.0% opportunity arises. The manager will be utilising its headroom 15.0% towards higher-yielding development projects (7 Tai Seng) and 10.0% potential acquisitions. Post development, we believe gearing will 2017A 2018A 2019F 2020F 2021F still be within management's comfortable level at around 35%-

36% (see though basis).

ROE (%) Stable weighted average debt-to-maturity. MINT has a well- staggered debt profile with a majority of debt due for 8.0% repayment only from FY19 onwards. With c.70% of its 7.0% borrowings on fixed interest rates, MINT is well protected 6.0% 5.0% against future increases in interest rates. 4.0%

3.0%

Share Price Drivers: 2.0%

Better-than-expected rental reversions/acquisitions will boost 1.0% earnings and share price. We are forecasting modest rental 0.0% 2017A 2018A 2019F 2020F 2021F uplifts of 0-3%. The REIT's ability to maintain or beat expectations will mean upside to our/consensus forecasts. In addition, acquisitions or further development projects which are Distribution Yield (%) accretive to earnings will likely result in upside to TP and share (%) 8.4 price. 7.9

7.4 +2sd: 7.4%

6.9 +1sd: 6.9% Key Risks: Avg: 6.5% Rising interest rates. An increase in refinancing rates will 6.4 -1sd: 6% negatively impact distributions. However, MINT has minimised 5.9 -2sd: 5.5% the impact as c.74% of its interest cost has been fixed. 5.4 4.9 2015 2016 2017 2018 2019 Economic risk. A deterioration of the economic outlook could have a negative impact on industrial rents and occupancies as PB Band (x) companies cut back on production and require less space. 1.6 (x) Industrial rents have a strong historical correlation with GDP growth. 1.5 1.4 +2sd: 1.39x Company Background 1.3 +1sd: 1.31x Avg: 1.24x Mapletree Industrial Trust (MINT) is a real estate investment 1.2 -1sd: 1.17x trust which invests primarily in income-producing industrial 1.1 -2sd: 1.1x assets located in Singapore. Its portfolio includes a diverse mix 1.0 of business parks, hi-tech industrial buildings, ramp-up 0.9 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 buildings and flatted factories.

Source: Company, DBS Bank

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Company Guide

Mapletree Industrial Trust

Income Statement (S$m) FY Mar 2017A 2018A 2019F 2020F 2021F

Gross revenue 341 363 369 398 412 Property expenses (83.7) (85.6) (92.0) (98.3) (101) Net Property Income 257 278 277 300 311 Other Operating expenses (29.6) (31.1) (32.6) (34.7) (35.2) Acquisition of 18 Tai Other Non Opg (Exp)/Inc 0.0 0.0 0.0 0.0 0.0 Seng Net Interest (Exp)/Inc (26.9) (33.0) (36.0) (38.7) (41.6)

Exceptional Gain/(Loss) 0.0 (0.2) 0.0 0.0 0.0

Net Income 200 235 223 242 249 Tax 0.0 0.0 0.0 0.0 0.0 Minority Interest 0.0 0.0 0.0 0.0 0.0 Preference Dividend 0.0 0.0 0.0 0.0 0.0 Net Income After Tax 200 235 223 242 249 Total Return 271 301 223 242 249 Non-tax deductible Items (65.6) (84.7) 3.68 4.32 4.36 Net Inc available for Dist. 205 216 227 246 254 Growth & Ratio Revenue Gth (%) 2.7 6.7 1.7 7.9 3.4

N Property Inc Gth (%) 4.8 8.1 (0.1) 8.2 3.6

Net Inc Gth (%) 5.1 17.3 (5.1) 8.3 3.2 Dist. Payout Ratio (%) 100.0 100.0 100.0 100.0 100.0 Net Prop Inc Margins (%) 75.4 76.4 75.1 75.3 75.5 Net Income Margins (%) 58.8 64.7 60.4 60.6 60.6 Dist to revenue (%) 60.2 59.4 61.4 61.7 61.6 Managers & Trustee’s fees 8.7 8.6 8.8 8.7 8.6 RO AE (%) 8.0 8.8 8.0 8.4 8.4 ROA (%) 5.4 5.9 5.3 5.5 5.5 ROCE (%) 6.3 6.4 6.0 6.2 6.2 Int. Cover (x) 8.4 7.5 6.8 6.9 6.6 Source: Company, DBS Bank

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Company Guide

Mapletree Industrial Trust

Quarterly / Interim Income Statement (S$m) FY Mar 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019

Gross revenue 91.5 90.4 91.5 92.2 93.6 Property expenses (20.6) (22.5) (22.0) (21.6) (21.7) Net Property Income 70.9 67.9 69.5 70.6 71.9 Other Operating expenses (7.9) (7.7) (7.9) (8.6) (8.4) Other Non Opg (Exp)/Inc 0.0 0.02 0.02 0.02 0.0 Net Interest (Exp)/Inc (8.4) (8.3) (9.3) (10.2) (10.0)

Exceptional Gain/(Loss) 0.0 0.0 0.0 0.0 (0.1) Net Income 55.3 72.9 56.6 56.3 57.5 Tax 0.0 0.0 0.0 0.0 0.0

Minority Interest 0.0 0.0 0.0 0.0 0.0 Net Income after Tax 55.3 72.9 56.6 56.3 57.5 Total Return 55.3 138 56.6 56.3 57.5

Non-tax deductible Items (1.9) (82.9) 0.32 0.37 0.80 Net Inc available for Dist. 53.5 55.5 56.9 56.7 58.3 Growth & Ratio Revenue Gth (%) (1) (1) 1 1 1 N Property Inc Gth (%) 0 (4) 2 2 2 Net Inc Gth (%) 2 32 (22) (1) 2 Net Prop Inc Margin (%) 77.5 75.1 75.9 76.5 76.8 Dist. Payout Ratio (%) 200.0 200.0 200.0 200.0 200.0

Balance Sheet (S$m) FY Mar 2017A 2018A 2019F 2020F 2021F

Investment Properties 3,749 3,908 4,000 4,303 4,309 Other LT Assets 0.00 183 184 185 186 Cash & ST Invts 38.0 37.4 31.3 40.3 40.4 Inventory 0.0 0.0 0.0 0.0 0.0 Debtors 11.4 26.0 17.7 19.1 19.7 Other Current Assets 0.0 0.0 0.0 0.0 0.0 Total Assets 3,798 4,154 4,233 4,547 4,555

ST Debt 115 185 185 185 185 Creditor 109 103 108 116 120 Other Current Liab 0.0 0.27 0.27 0.27 0.27 LT Debt 991 1,033 1,107 1,214 1,219 Other LT Liabilities 50.1 52.7 52.7 52.7 52.7 Unit holders’ funds 2,533 2,780 2,779 2,978 2,977 Minority Interests 0.0 0.0 0.0 0.0 0.0 Total Funds & Liabilities 3,798 4,154 4,233 4,547 4,555

Non-Cash Wkg. Capital (97.3) (77.4) (90.6) (97.7) (101) Net Cash/(Debt) (1,068) (1,181) (1,261) (1,359) (1,364) Ratio Current Ratio (x) 0.2 0.2 0.2 0.2 0.2 Quick Ratio (x) 0.2 0.2 0.2 0.2 0.2 Aggregate Leverage (%) 29.3 30.5 30.8 30.8 30.9 Z-Score (X) 1.8 1.8 1.8 1.8 NA

Source: Company, DBS Bank

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Company Guide

Mapletree Industrial Trust

Cash Flow Statement (S$m) FY Mar 2017A 2018A 2019F 2020F 2021F

Pre-Tax Income 200 235 223 242 249 Dep. & Amort. 0.0 0.0 0.0 0.0 0.0 Tax Paid 0.0 0.0 0.0 0.0 0.0

Associates &JV Inc/(Loss) 0.0 (21.8) (14.5) (14.9) (15.4)

Chg in Wkg.Cap. 5.36 3.15 13.2 7.12 3.27

Other Operating CF 28.4 29.1 3.05 3.25 3.31 Net Operating CF 234 246 225 237 241 Net Invt in Properties (104) (101) (91.7) (303) (6.2) Other Invts (net) 0.0 0.0 0.0 0.0 0.0 Invts in Assoc. & JV 0.0 (173) (1.0) (1.0) (1.0) Div from Assoc. & JVs 0.0 0.0 14.5 14.9 15.4 Other Investing CF 0.0 0.0 0.0 0.0 0.0 Net Investing CF (104) (274) (78.2) (289) 8.21 Distribution Paid (204) (212) (227) (246) (254) Chg in Gross Debt 85.5 122 74.0 107 5.00 New units issued 0.0 153 0.0 200 0.0 Other Financing CF (28.1) (35.2) 0.0 0.0 0.0 Net Financing CF (147) 28.1 (153) 61.1 (249) Currency Adjustments 0.0 0.0 0.0 0.0 0.0 Chg in Cash (16.4) (0.6) (6.1) 9.07 0.04

Operating CFPS (S cts) 12.7 12.9 11.2 11.9 11.9 Free CFPS (S cts) 7.23 7.66 7.07 (3.4) 11.8 Source: Company, DBS Bank

Target Price & Ratings History

2.14 S$ 12-mth Date of Closing S.No. Target Rating 2.09 Report Price Price 2 2.04 4 1: 25 Apr 18 2.00 2.22 BUY 1 2: 30 Apr 18 2.03 2.22 BUY 1.99 3: 05 J ul 18 1.96 2.22 BUY 6 8 4: 25 J ul 18 2.02 2.22 BUY 1.94 5 3 5: 01 Oct 18 1.98 2.22 BUY 6: 24 Oct 18 1.95 2.22 BUY 1.89 7 7: 14 Dec 18 1.91 2.22 BUY 1.84 8: 23 J an 19 1.96 2.22 BUY

1.79

1.74 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19

Note : Share price and Target price are adjusted for corporate actions.

Source: DBS Bank Analyst: Derek TAN Mervin SONG, CFA Carmen Tay

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Company Guide

Mapletree Industrial Trust

DBS Bank recommendations are based an Absolute Total Return* Rating system, defined as follows: STRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame) BUY (>15% total return over the next 12 months for small caps, >10% for large caps) HOLD (-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps) FULLY VALUED (negative total return i.e. > -10% over the next 12 months) SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame) Share price appreciation + dividends

Completed Date: 20 Feb 2019 09:04:56 (SGT) Dissemination Date: 20 Feb 2019 09:15:33 (SGT)

Sources for all charts and tables are DBS Bank unless otherwise specified.

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The research set out in this report is based on information obtained from sources believed to be reliable, but we (which collectively refers to DBS Bank Ltd, its respective connected and associated corporations, affiliates and their respective directors, officers, employees and agents (collectively, the “DBS Group”) have not conducted due diligence on any of the companies, verified any information or sources or taken into account any other factors which we may consider to be relevant or appropriate in preparing the research. Accordingly, we do not make any representation or warranty as to the accuracy, completeness or correctness of the research set out in this report. Opinions expressed are subject to change without notice. This research is prepared for general circulation. Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific addressee. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees, who should obtain separate independent legal or financial advice. The DBS Group accepts no liability whatsoever for any direct, indirect and/or consequential loss (including any claims for loss of profit) arising from any use of and/or reliance upon this document and/or further communication given in relation to this document. This document is not to be construed as an offer or a solicitation of an offer to buy or sell any securities. The DBS Group, along with its affiliates and/or persons associated with any of them may from time to time have interests in the securities mentioned in this document. The DBS Group, may have positions in, and may effect transactions in securities mentioned herein and may also perform or seek to perform broking, investment banking and other banking services for these companies.

Any valuations, opinions, estimates, forecasts, ratings or risk assessments herein constitutes a judgment as of the date of this report, and there can be no assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments. The information in this document is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed, it may not contain all material information concerning the company (or companies) referred to in this report and the DBS Group is under no obligation to update the information in this report.

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The valuations, opinions, estimates, forecasts, ratings or risk assessments described in this report were based upon a number of estimates and assumptions and are inherently subject to significant uncertainties and contingencies. It can be expected that one or more of the estimates on which the valuations, opinions, estimates, forecasts, ratings or risk assessments were based will not materialize or will vary significantly from actual results. Therefore, the inclusion of the valuations, opinions, estimates, forecasts, ratings or risk assessments described herein IS NOT TO BE RELIED UPON as a representation and/or warranty by the DBS Group (and/or any persons associated with the aforesaid entities), that:

(a) such valuations, opinions, estimates, forecasts, ratings or risk assessments or their underlying assumptions will be achieved, and (b) there is any assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments stated therein.

Please contact the primary analyst for valuation methodologies and assumptions associated with the covered companies or price targets.

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Company Guide

Mapletree Industrial Trust

Any assumptions made in this report that refers to commodities, are for the purposes of making forecasts for the company (or companies) mentioned herein. They are not to be construed as recommendations to trade in the physical commodity or in the futures contract relating to the commodity referred to in this report.

DBSVUSA, a US-registered broker-dealer, does not have its own investment banking or research department, has not participated in any public offering of securities as a manager or co-manager or in any other investment banking transaction in the past twelve months and does not engage in market-making.

ANALYST CERTIFICATION The research analyst(s) primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views. The analyst(s) also certifies that no part of his/her compensation was, is, or will be, directly or indirectly, related to specific recommendations or views expressed in the report. The research analyst (s) primarily responsible for the content of this research report, in part or in whole, certifies that he or his associate1 does not serve as an officer of the issuer or the new listing applicant (which includes in the case of a real estate investment trust, an officer of the management company of the real estate investment trust; and in the case of any other entity, an officer or its equivalent counterparty of the entity who is responsible for the management of the issuer or the new listing applicant) and the research analyst(s) primarily responsible for the content of this research report or his associate does not have financial interests2 in relation to an issuer or a new listing applicant that the analyst reviews. DBS Group has procedures in place to eliminate, avoid and manage any potential conflicts of interests that may arise in connection with the production of research reports. The research analyst(s) responsible for this report operates as part of a separate and independent team to the investment banking function of the DBS Group and procedures are in place to ensure that confidential information held by either the research or investment banking function is handled appropriately. There is no direct link of DBS Group's compensation to any specific investment banking function of the DBS Group.

COMPANY-SPECIFIC / REGULATORY DISCLOSURES 1. DBS Bank Ltd, DBS HK, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS'') or their subsidiaries and/or other affiliates have a proprietary position in Mapletree Industrial Trust recommended in this report as of 31 Jan 2019 2. Neither DBS Bank Ltd nor DBS HK market makes in equity securities of the issuer(s) or company(ies) mentioned in this Research Report. 3. DBS Bank Ltd, DBS HK, DBSVS, their subsidiaries and/or other affiliates have a net long position exceeding 0.5% of the total issued share capital in Mapletree Industrial Trust recommended in this report as of 31 Jan 2019

Compensation for investment banking services: 4. DBSVUSA does not have its own investment banking or research department, nor has it participated in any public offering of securities as a manager or co-manager or in any other investment banking transaction in the past twelve months. Any US persons wishing to obtain further information, including any clarification on disclosures in this disclaimer, or to effect a transaction in any security discussed in this document should contact DBSVUSA exclusively.

Disclosure of previous investment recommendation produced: 5. DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates may have published other investment recommendations in respect of the same securities / instruments recommended in this research report during the preceding 12 months. Please contact the primary analyst listed in the first page of this report to view previous investment recommendations published by DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates in the preceding 12 months.

1 An associate is defined as (i) the spouse, or any minor child (natural or adopted) or minor step-child, of the analyst; (ii) the trustee of a trust of which the analyst, his spouse, minor child (natural or adopted) or minor step-child, is a beneficiary or discretionary object; or (iii) another person accustomed or obliged to act in accordance with the directions or instructions of the analyst. 2 Financial interest is defined as interests that are commonly known financial interest, such as investment in the securities in respect of an issuer or a new listing applicant, or financial accommodation arrangement between the issuer or the new listing applicant and the firm or analysis. This term does not include commercial lending conducted at arm's length, or investments in any collective investment scheme other than an issuer or new listing applicant notwithstanding the fact that the scheme has investments in securities in respect of an issuer or a new listing applicant.

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Mapletree Industrial Trust

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For any query regarding the materials herein, please contact Carol Wu (Reg No. AH8283) at [email protected]

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Malaysia This report is distributed in by AllianceDBS Research Sdn Bhd ("ADBSR"). Recipients of this report, received from ADBSR are to contact the undersigned at 603-2604 3333 in respect of any matters arising from or in connection with this report. In addition to the General Disclosure/Disclaimer found at the preceding page, recipients of this report are advised that ADBSR (the preparer of this report), its holding company Alliance Investment Bank Berhad, their respective connected and associated corporations, affiliates, their directors, officers, employees, agents and parties related or associated with any of them may have positions in, and may effect transactions in the securities mentioned herein and may also perform or seek to perform broking, investment banking/corporate advisory and other services for the subject companies. They may also have received compensation and/or seek to obtain compensation for broking, investment banking/corporate advisory and other services from the subject companies.

Wong Ming Tek, Executive Director, ADBSR

Singapore This report is distributed in Singapore by DBS Bank Ltd (Company Regn. No. 196800306E) or DBSVS (Company Regn No. 198600294G), both of which are Exempt Financial Advisers as defined in the Financial Advisers Act and regulated by the Monetary Authority of Singapore. DBS Bank Ltd and/or DBSVS, may distribute reports produced by its respective foreign entities, affiliates or other foreign research houses pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, DBS Bank Ltd accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact DBS Bank Ltd at 6327 2288 for matters arising from, or in connection with the report.

Thailand This report is being distributed in Thailand by DBS Vickers Securities (Thailand) Co Ltd.

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United This report is produced by DBS Bank Ltd which is regulated by the Monetary Authority of Singapore. Kingdom This report is disseminated in the by DBS Vickers Securities (UK) Ltd, ("DBSVUK"). DBSVUK is authorised and regulated by the Financial Conduct Authority in the United Kingdom.

In respect of the United Kingdom, this report is solely intended for the clients of DBSVUK, its respective connected and associated corporations and affiliates only and no part of this document may be (i) copied, photocopied or duplicated in any form or by any means or (ii) redistributed without the prior written consent of DBSVUK. This communication is directed at persons having professional experience in matters relating to investments. Any investment activity following from this communication will only be engaged in with such persons. Persons who do not have professional experience in matters relating to investments should not rely on this communication.

Dubai This research report is being distributed by DBS Bank Ltd., (DIFC Branch) having its office at units 608 - 610, 6th Floor, Gate International Precinct Building 5, PO Box 506538, DIFC, Dubai, United Arab Emirates. DBS Bank Ltd., (DIFC Branch) is regulated by The Financial Dubai Financial Services Authority. This research report is intended only for professional clients (as defined in the DFSA Centre rulebook) and no other person may act upon it.

United Arab This report is provided by DBS Bank Ltd (Company Regn. No. 196800306E) which is an Exempt Financial Adviser as defined Emirates in the Financial Advisers Act and regulated by the Monetary Authority of Singapore. This report is for information purposes only and should not be relied upon or acted on by the recipient or considered as a solicitation or inducement to buy or sell any financial product. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situation, or needs of individual clients. You should contact your relationship manager or investment adviser if you need advice on the merits of buying, selling or holding a particular investment. You should note that the information in this report may be out of date and it is not represented or warranted to be accurate, timely or complete. This report or any portion thereof may not be reprinted, sold or redistributed without our written consent.

United States This report was prepared by DBS Bank Ltd. DBSVUSA did not participate in its preparation. The research analyst(s) named on this report are not registered as research analysts with FINRA and are not associated persons of DBSVUSA. The research analyst(s) are not subject to FINRA Rule 2241 restrictions on analyst compensation, communications with a subject company, public appearances and trading securities held by a research analyst. This report is being distributed in the United States by DBSVUSA, which accepts responsibility for its contents. This report may only be distributed to Major U.S. Institutional Investors (as defined in SEC Rule 15a-6) and to such other institutional investors and qualified persons as DBSVUSA may authorize. Any U.S. person receiving this report who wishes to effect transactions in any securities referred to herein should contact DBSVUSA directly and not its affiliate.

Other In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is intended only for qualified, jurisdictions professional, institutional or sophisticated investors as defined in the laws and regulations of such jurisdictions.

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DBS Regional Research Offices

HONG KONG MALAYSIA SINGAPORE DBS (Hong Kong) Ltd AllianceDBS Research Sdn Bhd DBS Bank Ltd Contact: Carol Wu Contact: Wong Ming Tek (128540 U) Contact: Janice Chua 13th Floor One Island East, 19th Floor, Menara Multi-Purpose, 12 Marina Boulevard, 18 Westlands Road, Capital Square, Marina Bay Financial Centre Tower 3 Quarry Bay, Hong Kong 8 Jalan Munshi Abdullah 50100 Singapore 018982 Tel: 852 3668 4181 Kuala Lumpur, Malaysia. Tel: 65 6878 8888 Fax: 852 2521 1812 Tel.: 603 2604 3333 Fax: 65 65353 418 e-mail: [email protected] Fax: 603 2604 3921 e-mail: [email protected] e-mail: [email protected] Company Regn. No. 196800306E

INDONESIA THAILAND PT DBS Vickers Sekuritas (Indonesia) DBS Vickers Securities (Thailand) Co Ltd Contact: Maynard Priajaya Arif Contact: Chanpen Sirithanarattanakul DBS Bank Tower 989 Siam Piwat Tower Building, Ciputra World 1, 32/F 9th, 14th-15th Floor Jl. Prof. Dr. Satrio Kav. 3-5 Rama 1 Road, Pathumwan, Jakarta 12940, Indonesia Bangkok Thailand 10330 Tel: 62 21 3003 4900 Tel. 66 2 857 7831 Fax: 6221 3003 4943 Fax: 66 2 658 1269 e-mail: [email protected] e-mail: [email protected] Company Regn. No 0105539127012 Securities and Exchange Commission, Thailand

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