Untitled - Mapletree Logistics Trust

would increase, which would adversely affect MLT’s cash flow and the amount of distributions it could
make to Unitholders.
Neither MLT nor the Manager, as new entities, has an established operating history.
MLT was established on 5 July 2004 and the Manager was incorporated on 19 January 2005.
Accordingly, neither MLT (as a real estate investment trust) nor the Manager (as the manager of a real
estate investment trust) has sufficiently long operating histories by which their past performance as such
may be judged. This will make it more difficult for investors to assess their likely future performance.
There can be no assurance that MLT will be able to generate sufficient revenue from operations to make
distributions to Unitholders or that such distributions will be in line with those set out in ‘‘Profit Forecast
and Profit Projection’’.
The Manager may not be able to implement its investment strategy.
The Manager’s investment strategy includes growing MLT’s portfolio of properties which are wholly or
partly used for logistics purposes in Singapore and elsewhere in the Asia-Pacific region, and providing
regular and stable distributions to Unitholders. There can be no assurance that the Manager will be able
to implement its investment strategy successfully or that it will be able to expand MLT’s portfolio at all, or
at any specified rate or to any specified size. The Manager may not be able to make acquisitions or
investments on favourable terms or within a desired time frame. MLT will be relying on external sources
of funding to expand its portfolio, which may not be available on favourable terms or at all. Even if MLT is
able to successfully make additional property acquisitions or investments, there can be no assurance
that MLT will achieve its intended return on such acquisitions or investments. Since the amount of
borrowings that MLT can incur to finance acquisitions is limited by the Property Funds Guidelines (see
‘‘— Risks Relating to MLT’s Operations — The amount MLT may borrow is limited, which may affect the
operations of MLT.’’), such acquisitions are likely to be largely dependent on MLT’s ability to raise equity
capital, which may result in a dilution of Unitholders’ holdings. Potential vendors may also view the
prolonged time frame and lack of certainty generally associated with the raising of equity capital to fund
any such purchase negatively and may prefer other potential purchasers.
Furthermore, there may be significant competition for attractive investment opportunities from other real
estate investors, including logistics facilities development companies, private investment funds and
other real estate investment funds or property trusts whose investment policy is also to invest in
properties which are wholly or partly used for logistics purposes. There can be no assurance that MLT
will be able to compete effectively against such entities.
MLT depends on certain key personnel, and the loss of any key personnel may adversely affect
its operations.
MLT’s performance depends, in part, upon the continued service and performance of key staff members
of the Manager. These key personnel may leave the Manager in the future or compete with the Manager
and MLT. The loss of any of these individuals, or of one or more of the Manager’s other key employees,
could have a material adverse effect on MLT’s financial condition and results of operations.
Risks Relating to Investing in Real Estate
While the Properties are located in Singapore, MLT’s future acquisitions may be located
elsewhere in the Asia-Pacific region, which exposes MLT to economic and real estate market
conditions and changes in fiscal policies in such other countries.
The principal investment strategy of MLT is to invest in, among other things, a diversified portfolio of
income-producing real estate which is used for logistics purposes in Singapore and elsewhere in the
Asia-Pacific region.
Investment in properties in such other countries will expose MLT to the local real estate market
conditions in these countries. An economic decline in any one or more of the countries in which the
properties of MLT are located could adversely affect MLT’s results of operations and future growth.
Other local real estate market conditions which may adversely affect the performance of MLT include
the attractiveness of competing logistics properties or, for example, if there is an oversupply of logistics
properties or reduced demand for logistics properties. MLT may also be exposed to risks associated
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