Keppel DC REIT · SGX:AJBU
Keppel DC REIT — H1 2021 Earnings Presentation
24 slides from Keppel DC REIT's earnings presentation, Jul 26, 2021
Slide 1: First Half 2021 Financial Results
First Half 2021 Financial Results 26 July 2021
Slide 2: Outline
Outline Key Highlights 3 Financial Results 6 Portfolio Updates 10 Outlook 13 Additional Information 17 Constituent of: Awards and Accreditations: FTSE Straits FTSE EPRA Nareit MSCI Singapore GPR 250 Times Index Global Developed Index Small Cap Index Index Series 2
Slide 3: 1H 2021 Key Highlights
1H 2021 Key Highlights Strengthen Sustainable Financial Income Stream Growth Flexibility Strong Leasing Momentum Stable Distributable Income Aggregate Leverage5 1 0.8% $84.3m 36.7% Proactive leasing efforts saw new, renewal and expansion for 1H 2021, which was 12.4% higher y-o-y as at 30 Jun 2021, p
Slide 4: Value Creation Strategy
Value Creation Strategy Widened Mandate with Continued Focus Completion of Intellicentre 3 East Data Tapping into China’s Growing on Data Centres Centre (IC3 East DC) in Sydney Digital Economy ▪ Access to wider range of opportunities ▪ Development completed on 13 Jul 2021 ▪ DPU-accretive acquisition
Slide 5: Maiden Data Centre Acquisition into China
Maiden Data Centre Acquisition into China ▪ Strategic addition of Guangdong Data Centre in Jiangmen, Guangdong Province ̶ Sale and leaseback on a triple net basis1 for 15 years ̶ Acquisition price represents 7.8% discount to the independent market valuation2 ▪ Foothold in the second largest data cen
Slide 6: Financial Results
Financial Results KGey-T] DC REIT 6
Slide 7: Financial Performance
Financial Performance Distribution per Unit (cents)1 Distribution Timetable +12.5% 4.924 4.375 Ex-Date 2 Aug 2021 Record Date 3 Aug 2021 Payment Date 6 Sep 2021 1H 2020 1H 2021 ($’000) 1H 2021 1H 2020 +/(-) % Distributable Income to Unitholders 84,256 74,980 +12.4 Comprising Gross Revenue 135,147 12
Slide 8: Balance Sheet
Balance Sheet As at As at +/(-) ($’000) 30 Jun 2021 31 Dec 2020 % Investment Properties 3,086,204 3,005,038 +2.7 Property under Development 27,550 24,676 +11.6 Total Assets 3,402,457 3,349,828 +1.6 Gross Borrowings1 1,197,909 1,165,756 +2.8 Total Liabilities 1,388,700 1,367,586 +1.5 Unitholders’ Fun
Slide 9: Prudent Capital Management
Prudent Capital Management Debt Maturity Profile (as at 30 Jun 2021) Debt Currency Breakdown (as at 30 Jun 2021) Received SGD EUR commitments to 11.6% 57.2% 28.0% refinance loans due in 4Q 2021 Total 10.7% borrowings: 23.0% ~$1,197.9m 5.3% 13.8% 6.7% 9.1% 5.7% 1.8% 6.2% 1.1% 5.0% AUD 7.3% 2021 2022
Slide 10: Portfolio Updates
Portfolio Updates KGey-T] DC REIT 10 f
Slide 11: Portfolio Updates
Portfolio Updates ▪ Proactive leasing efforts resulted in new, renewal and expansion leases secured with clients at the Singapore and Dublin data centres, including some renewals ahead of expiry - Including the latest renewal lease signed in July 2021, only 0.8% of leases3 are expiring for the remai
Slide 12: Diversified and Resilient Portfolio
Diversified and Resilient Portfolio Rental Income by Trade Sector Rental Income by Lease Type AUM Breakdown Top 10 Clients (for the month of Jun 2021)1 (for the month of Jun 2021)1 (as at 30 Jun 2021) (for the month of Jun 2021)1 Internet Enterprise 38.5% Germany One of the largest tech companies gl
Slide 13: Outlook
Outlook [CQYDc REIT 13
Slide 14: Robust and Resilient Data Centre Demand
Robust and Resilient Data Centre Demand ▪ End-user spending on public cloud services is forecasted to grow 23.1% in 2021 to $332.3b, up from $270b in 20202 ▪ Hyperscale cloud operator capex in the first quarter of 2021 was up by 31% from 2020, reaching a high of US$38b3 Worldwide investment in data
Slide 15: Well-Positioned for Growth
Proxy to Fast-Growing Tech Sector Well-Positioned Resilient asset class with highly defensive and for Growth long-term sustainable income stream The Manager will continue Strong operational expertise and proven track record to capitalise on growth Focused and disciplined investment strategy opportun
Slide 16: Thank You
Thank You Important Notice: The past performance of Keppel DC REIT is not necessarily indicative of its future performance. Certain statements made in this presentation may not be based on historical information or facts and may be “forward-looking” statements due to a number of risks, uncertainties
Slide 17: Additional Information
Additional Information KGey-T] DC REIT 17 ff
Slide 18: Steady Portfolio Growth Since Listing
Steady Portfolio Growth Since Listing Investing in income- producing data centre assets, as well as • Intellicentre Campus, real estate and assets Sydney1 • Iseek Data Centre, Brisbane necessary to support the digital economy. Assets under Management $3.1b 19 data centres across 8 countries 1. Locat
Slide 19: Commitment to Sustainability
Commitment to Sustainability ENVIRONMENTAL RESPONSIBLE PEOPLE AND STEWARDSHIP BUSINESS COMMUNITY In line with Keppel’s Vision 2030, we will do The long-term sustainability of our business People are the cornerstone of our business. our part to combat climate change, and are is driven at the highest
Slide 20: Portfolio Overview (as at 30 Jun 2021)
Portfolio Overview (as at 30 Jun 2021) Attributable No. of Occupancy WALE Location Interest lettable area Valuation2 Lease type Land lease title clients1 rate (%) (years)3 (sq ft) Asia Pacific Leasehold Keppel lease / Keppel DC Singapore 1 Singapore 100% 109,721 25 93.9 S$298.0m 3.4 (Expiring 30 Sep
Slide 21: Portfolio Overview (as at 30 Jun 2021)
Portfolio Overview (as at 30 Jun 2021) Attributable lettable No. of Occupancy WALE Location Interest Valuation2 Lease type Land lease title area (sq ft) clients1 rate (%) (years)3 Intellicentre 2 Sydney, A$59.0m Triple-net 100% 87,930 1 100.0 14.1 Freehold Data Centre4 Australia (S$58.2m) (Shell & c
Slide 22: Overview of Lease Arrangements
Overview of Lease Arrangements Responsibilities of Owner Maintenance Insurance Lease Property Asia Pacific Description Building Refresh Arrangement Capex Opex Tax Keppel lease1 / ◼ Client: Pays rent Keppel DC Singapore 1 ✓ ✓ ✓ ✓ Colocation2 ◼ Owner: Bears all expenses; responsible for facilities man
Slide 23: Overview of Lease Arrangements
Overview of Lease Arrangements Responsibilities of Owner Maintenance Lease Insurance Europe Description Property Building Arrangement Refresh Capex Opex Tax Cardiff Data Centre Triple-net lease ◼ Client: Pays rent and all outgoings; responsible for facilities management - - - - GV7 Data Centre Tripl
Slide 24: Keppel DC REIT Structure (as at 30 Jun 2021)
Keppel DC REIT Structure as (at 30 Jun 2021) Keppel Keppel Capital Telecommunications & Transportation Institutional and The REIT Manager can leverage The REIT Manager can leverage Public Investors the scale and resources of a larger the Sponsor‘s expertise and track asset management platform record