Kore Us REIT · SGX:CMOU
Kore Us REIT — Keppel Pacific Oak US REIT — Q1 2022 Earnings Presentation
21 slides from Kore Us REIT's earnings presentation, Apr 19, 2022
Slide 1: 1Q 2022 Key Business and Operational Updates
1Q 2022 Key Business and Operational Updates 19 April 2022
Slide 2: Financial Performance
Financial Performance Financial Highlights Distributable Income for 1Q2022 was up 10.9% year-on-year to US$16.6m 1Q 2022 1Q 2021 % due to: (US$ ’m) (US$ ’m) Change • The acquisitions of Bridge Crossing in Nashville and 105 Edgeview in Denver in Gross Revenue 37.0 34.6 6.9 August 2021. Strong balance
Slide 3: Proactive Capital Management
Proactive Capital Management 100% unsecured loans and low aggregate leverage provide greater financial flexibility As at 31 March 2022 Debt Maturity Profile Total Debt • US$567.4 million of external loans 100% of Loans Unsecured • 100% unsecured 27.3% 22.0% 21.1% Available Facilities • US$50.0 milli
Slide 4: Quality Portfolio Driven By Tech and Innovation
SEATTLE – BELLEVUE/REDMOND, Washington ATLANTA, Georgia Quality Portfolio The Plaza Buildings Bellevue Technology Center Occupancy: 95.7% The Westpark Portfolio Powers Ferry Occupancy: 67.6% Northridge Center I & II Occupancy: 78.4% Occupancy: 88.9% Driven By Occupancy: 96.8% NASHVILLE, Tennessee Te
Slide 5: Steady Income with Visible Organic Growth
Steady Income with Visible Organic Growth New Renewal Expansion New leasing demand and expansions from: ~146,768sf Leased spaces for 1Q 2022, equivalent to Professional Services(1) 41.3% 2.9% of portfolio NLA. Portfolio WALE of 21.2% 47.0% 3.7 years(3) by CRI. Finance and Insurance 33.4% Leases sign
Slide 6: Resilient Portfolio with Diversified Tenant Base
Resilient Portfolio with Diversified Tenant Base KORE’s buildings and business campuses in ~47% of KORE’s portfolio NLA comprises the tech hubs of Seattle – Bellevue/Redmond, of high-quality tenants from the growing and Austin and Denver contribute ~61% of NPI(1) defensive sectors of TAMI, medical a
Slide 7: Low Tenant Concentration Risk
As at 31 March 2022 Low Tenant Top 10 Tenants Sector Asset Location % of CRI Comdata Inc Technology Bridge Crossing Nashville 3.5 Concentration Ball Aerospace Technology Westmoor Center Denver 3.2 Seattle – Lear Cooperation Technology The Plaza Buildings 2.7 Risk Gogo Business Technology 105 Edgevie
Slide 8: Last 12 Months Rent Growth
Last 12 Months Rent Growth 0.7% Key Growth Markets Average 1.2% United States Average 0.7% Gateway Cities Average -0.1% US Average Seattle, Bellevue CBD 0.6% Seattle, Eastside Bellevue 2.6% Seattle, Redmond 2.6% Austin, Northwest 2.4% Denver, Northwest 0.9% Denver, Broomfield Nashville, Brentwood 1.
Slide 9: Projected 12-Month Rent Outlook
Projected 12-Month Rent Outlook KORE’s average in-place rents are 8.9% below asking rents, which will continue to drive organic growth Key Growth Markets Average United States Average 3.4% 3.2% 3.2% Gateway Cities Average 2.8% US Average Seattle, Bellevue CBD 3.6% Seattle, Eastside Bellevue 3.7% Sea
Slide 10: Actual Against Projected 12-Month Market Rent Growth
Actual Against Projected 12-Month Market Rent Growth Rent growth* for the last 12 months outperformed projections for KORE’s portfolio 4.0% 3.0% 3.0% 2.6% 2.6% 2.4% 1.7% 2.0% 1.0% 0.6% -0.5% 0.6% -1.0% 0.3% 0.1% 0.0% 0.9% -1.0% -1.7% -1.9% -0.9% -2.0% -2.9% -1.2% -1.6% -3.6% -2.0% -3.0% -4.0% -4.8%
Slide 11: First Choice Submarkets Outlook
First Choice Submarkets Outlook Property Submarket Last 12M Last 12M Under Last 12M Projected Submarket Vacancy Rate Vacancy Rate Deliveries Absorption Construction Rental Growth Rental Growth Property (%) (%) (sf’000) (sf’000) (sf’000) (%) (%) Seattle, Bellevue CBD 11.1 5.7 1100 1000 4,267(1)* 0.6
Slide 12: US Economic Progression
US Economic Progression Muted economic activity expected in 1Q 2022 % Unemployment Rate % Labour Force Participation Rate • US real GDP increased by 6.9% q-o-q in 16 66 4Q 2021 (1). 14 65 • Unemployment rate was 3.6% in March 12 2022, down from the high of 14.8% in April 64 2020’s recession(2). In F
Slide 13: Positive Economics in KORE's Key Growth Markets
Positive Economics in KORE’s Key Growth Markets KORE’s key growth markets continue to outperform national average Real GDP Percent Change at Annual Rate(1) Fourth Quarter, 2021 Key Growth Markets Average 8.9% 6.9% United States Average 6.9% US Average Gateway Cities Average 7.6% Seattle 8.3% Austin
Slide 14: Return to Office On Track to Improve
Return to Office On Track to Improve Suburban Markets Lead the Way as Tenants Target Amenity-rich Buildings ― Tenants appear to have long-term confidence in the office Texas metro areas lead in office occupancy. market as more companies are expanding their footprints than contracting(1) . Top 10 US
Slide 15: 2021 Sustainability Achievements
2021 Sustainability Achievements Sustainability is at the core of our strategy and we are committed to delivering sustainable distributions to Unitholders LEED Gold 1 GHG 30% ✓ The Plaza Buildings Female Board Directors Emissions reduction for are female Scopes 1 and Representation Westmoor Center 3
Slide 16: First choice US office S-REIT focused on TAMI, medical and healthcare
Strategic presence in some of the fastest growing states in the US. First choice Exposure to the fast-growing TAMI, medical and healthcare sectors provides US office S-REIT income resilience. focused on the fast-growing TAMI, medical and Highly diversified portfolio with low tenant concentration ris
Slide 17: Additional Information
Additional Information Westech 360 Austin, Texas
Slide 18: Tech-driven Cities Projected to Outperform
Tech-driven Cities Projected to Outperform KORE’s key growth markets continue to experience inbound growth Top Metros for GDP Growth: 2022 Las Vegas Orlando Miami Fort Lauderdale Seattle San Francisco San Jose Denver Los Angeles Phoenix U.S. 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Source: Oxford Economics,
Slide 19: KORE's Presence In Magnet Cities
KORE’s Presence In Magnet Cities Popular in-migration destinations due to attractive lifestyle, culture and employment opportunities Seattle, Washington SEATTLE ❖ The Plaza Buildings ❖ Bellevue Technology Center ❖ The Westpark Portfolio #6 Seattle Austin, Texas ❖ Westech 360 #2 #1 ❖ Grea
Slide 20: Commitment to ESG Excellence
Commitment to ESG Excellence Environmental Stewardship Responsible Business People & Community Achieve a 30% reduction for Uphold strong corporate governance, Maintain at least one-third female Scopes 1 and 2 emissions by robust risk management, as well as representation on the Board 2030, from 2019
Slide 21: Thank You
Important Notice The past performance of Keppel Pacific Oak US REIT is not necessarily indicative of its future performance. Certain Thank You statements made in this release may not be based on historical information or facts and may be “forward-looking” statements due to a number of risks, uncerta
Keppel Pacific Oak US REIT — Q1 2022 Earnings Presentation on 6ix