Keppel REIT · SGX:K71U
Keppel REIT — K-REIT Asia — Investor Presentation (May 2008)
17 slides from Keppel REIT's investor presentation, May 2008
Slide 1: Investor Meetings May 2008
INVESTOR MEETINGS May 2008 Contents Introduction Operations Review Financial Results Portfolio Performance Market Outlook & Review Going Forward 2 1
Slide 2: Introduction
Introduction Overview A Singapore-listed leading commercial real estate investment trust with a Pan-Asian mandate and portfolio of quality assets providing stable income to unitholders Portfolio Summary Property Portfolio 5 quality commercial office assets Net Lettable Area 114,425 sm (1,231,673 sf)
Slide 3: High Quality Portfolio of Assets; Rights Issue Strengthens Balance Sheet
High Quality Portfolio of Assets Property Prudential Tower(1) (1) Keppel Towers and GE Tower Bugis Junction Towers One Raffles Quay (2) Net Lettable Area (sm) 10,074 40,002 22,990 41,359 (2) Number of Tenants 13 68 9 31 KBC Bank N.V. GE Pacific IE Singapore ABN Amro Principal Tenants McGraw-Hill Com
Slide 4: Financial Results: Distributable Income on Upward Trend
Financial Results Distributable Income on Upward Trend (1) Actual Actual Actual Pro forma ($'000) 1Q2008 1Q2007 % Chg FY2007 FY2006 % Chg Property income 11,506 8,866 29.8 40,069 33,778 18.6 Property expenses (2,365) (2,404) (1.6) (11,807) (10,153) 16.3 Net property income 9,141 6,462 41.5 28,262 23
Slide 5: Income Contribution by Assets; DPU Comparison
Income Contribution by Assets Actual Actual Actual Pro forma ($'000) 1Q2008 1Q2007 % Chg FY2007 FY2006 % Chg Prudential Tower 1,832 1,283 42.8 5,037 4,395 14.6 Keppel Towers and GE Tower 4,678 2,863 63.4 13,741 10,598 29.7 Bugis Junction Towers 2,631 2,316 13.6 9,484 8,632 9.9 Total net property inc
Slide 6: Balance Sheet
Balance Sheet NAV per unit: about $2.29 post-Rights Issue (1) Debt Profile, post-Rights Issue: Fixed-rate mortgage loans of $190m: 4.06% p.a. until May 2011 Fixed-rate bridging loan of $391m: 2.28% p.a. maturing in Sep 2008 Post-Rights Issue Pre-Rights Issue Pro forma ($million) 31 Mar 2008 31 Mar 2
Slide 7: Broad Tenant Diversity; Improved Tenant Diversification
Broad Tenant Diversity Total of 121 tenants as at 31 March 2008 Committed occupancy of 99.6% for portfolio as at 31 March 2008 High tenant retention ratio of 93.6% for 1Q 2008 Tenant Tenant Business Business Sector Sector by by Net Net Lettable Lettable Area Area @ @ 31 31 Mar Mar 2008 2008 7.5% 4.3
Slide 8: Portfolio Lease Expiry & Rent Review Profiles; Portfolio Rents
Portfolio Lease Expiry & Rent Review Profiles Positive rent reversions Lease Lease Profile Profile as as aa Percentage Percentage of of Net Net Lettable Lettable Area Area @@ 31 31 Mar Mar 2008 expected due to limited 2008 prime office space 25% 18.7% 18.8% About 42.2% of 20% portfolio’s net lettabl
Slide 9: Office Rents Supported by Economic Growth
Market Outlook & Review Office Rents Supported by Economic Growth Government’s 2008 GDP forecast lower at 4 – 6% 1Q 2008 advance GDP Prime Prime Office Office Occupancy Occupancy and and Rentals Rentals growth estimate at 7.2% $16 100% Continued growth in $14 98% financial services, $12 construction
Slide 10: Office Rents Continue to Rise
Office Rents Continue to Rise Demand for prime office space is expected to continue although pace of rental growth is likely to moderate Monthly prime office rents forecast to grow by about 13% y-o-y by end- 2008(1) No substantial new supply until Marina Bay Financial Centre, Phase I (>50% space alr
Slide 11: Growth Strategy; Leveraging on Key Strengths
Growth Strategy Achieve better returns through Organic proactive management and active Growth leasing of properties Seek growth acquisitions in Singapore Acquisition and overseas that will potentially value- Growth add to the portfolio Identify asset enhancement initiatives to Asset better meet the
Slide 12: A Pan-Asian Commercial REIT; Strong Keppel Land Sponsorship
A Pan-Asian Commercial REIT Grow portfolio by identifying Portfolio Portfolio Size Size and pursuing quality commercial assets in $2,102.0m Singapore and other Asian 2,000 233% growth cities 1,500 Ride on different market 1,000 $815.0m cycles to allow for risk $630.7m $677.0m diversification across
Slide 13: Strong Keppel Land Sponsorship; Thank You
Strong Keppel Land Sponsorship Indonesia Pan-Asian platform and network 4 Wisma BCA, Jakarta ♦ Strong network in 10 major cities across Asia ♦ Currently has 1.7m sf NLA of prime office space overseas, with joint venture partners ♦ Competitive edge in sourcing and pursuing pan-Asian acquisition oppor
Slide 14: Additional Information: Snapshot of K-REIT Asia
Additional Information Snapshot of K-REIT Asia Manager K-REIT Asia Management Limited (1) Property Portfolio 5 quality commercial office assets valued at $2.1 bil Listing Date 28 Apr 2006 on Singapore Stock Exchange (2) Market Capitalisation $938 million (2) Unit Price $1.45 (2) Number of units in i
Slide 15: Total Return Since Listing
Total Return Since Listing Total return of 60%, 60% Total Total Return Return outperforming major 240% 220% Singapore indices 200% 180% 160% Total Return 140% Since Listing 120% (1) K-REIT Asia 64.5% 100% 80% (2) STI Index 18.2% 60% (3) FTSE STI REIT Index 11.7% 40% 20% 0% -20% Apr-06 Aug-06 Apr-07
Slide 16: Keppel Towers & GE Tower; Bugis Junction Towers
Keppel Towers & GE Tower ♦ Keppel Towers: 27-storey office building ♦ GE Tower: 13-storey office building, within a Keppel Towers GE Tower five-minute walk from MRT station ♦ Located in the Tanjong Pagar vicinity Key Property Information 40,002 sm Net Lettable Area (430,582 sf) Tenure Estate in fee
Slide 17: One Raffles Quay
One Raffles Quay ♦ Strategically located at Marina Bay and gateway to Singapore’s new business and financial district North Tower South Tower ♦ One of the largest office developments with a 50- storey North Tower and a 29-storey South Tower ♦ Direct underground link to Raffles Place MRT station Key