Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — FY2023 Earnings Presentation
29 slides from Keppel Dc Reit's earnings presentation, Jan 26, 2024
Slide 1: Second Half and Full Year 2023 Financial Results
Second Half and Full Year 2023 Financial Results 26 January 2024
Slide 2: Outline
Outline Key Highlights 3 Capital Management 7 Portfolio Updates 11 Outlook 15 Additional Information 19 Constituent of: Awards and Certifications: FTSE EPRA Nareit MSCI Singapore GPR 250 Global Developed Index Small Cap Index Index Series 1 2 1. The use by Keppel DC REIT of any MSCI ESG Research LLC
Slide 3: Key Highlights
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Slide 4: FY 2023 Key Highlights
FY 2023 Key Highlights FY 2023 Financial Diversified Portfolio Proactive Capital Performance Supported by Macrotrends Management for Growth Distributable Income1 Demand Drivers for Data Centres Potential Assets for Acquisitions $167.7m Cloud-based Artificial >$2b for FY 2023. Positive reversions and
Slide 5: Financial Performance
Financial Performance Distributable Income ($’000)1 Distribution Per Unit (cents)2 2H 2023 vs 2H 2022 184,872 10.214 • Stable gross revenue mainly due to contributions 167,718 9.383 from acquisitions made in FY 2022 and positive reversions and escalations; offset by net lower contributions from some
Slide 6: Distribution Details
Distribution Details Distribution for the period from 1 Jul to 31 Dec 2023 DPU 4.332 cents1 Ex-distribution Date 2 Feb 2024 Record Date 5 Feb 2024 Payment Date 11 Mar 2024 1. Computed based on the distributable income to Unitholders after the deduction of Capex Reserves that has been set aside. 6
Slide 7: Capital Management
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Slide 8: Favourable Debt Profile
Favourable Debt Profile • Aggregate leverage of 37.4%, available debt headroom of $169m to internal cap of 40% • Bulk of debt expiries from 2026 and beyond • In 4Q 2023, issued S$90 million of floating rate notes due 2026 to free up revolving credit facilities for growth Debt Maturity Profile As at
Slide 9: Prudent Management of Borrowing Costs and Impact of Currency Fluctuations
Prudent Management of Borrowing Costs and Impact of Currency Fluctuations Majority of loans fixed through Debt Currency breakdown Investment Properties Breakdown2 interest rate swaps (as at 31 Dec 2023) (as at 31 Dec 2023) Floating Ireland Italy 26% 1.6% 8.3% Fixed EUR 74% Debt Netherlands 39.4% 7.0
Slide 10: Healthy Balance Sheet
Healthy Balance Sheet As at As at +/(-) ($’000) 31 Dec 2023 31 Dec 2022 % Investment Properties 3,655,932 3,639,453 +0.5 Total Assets 4,006,551 4,107,663 (2.5) Gross Borrowings1 and Deferred Payments 1,478,492 1,472,898 +0.4 Total Liabilities 1,652,590 1,650,745 +0.1 Unitholders’ Funds 2,310,980 2,4
Slide 11: Portfolio Updates
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Slide 12: Diversified Portfolio of Quality Data Centres
Diversified Portfolio of Quality Data Centres High Portfolio Occupancy Secured new and renewal contracts with Guangdong DCs: positive reversions • End-Dec 2023: Tenant settled part of sums 98.3%1 in-arrears of RMB 0.5m (S$0.1m)5 • Working with tenant on recovery roadmap Long Portfolio WALE Dispute w
Slide 13: Diversified Global Client Base
Diversified Global Client Base • Majority of rental income is derived from clients with investment grade or equivalent credit profiles Rental Income by Trade Sector1 Rank Top 10 Clients Trade Sector Rental Income1 1 Fortune Global 500 Company (Hyperscaler) Internet Enterprise 35.0% 2 Government-link
Slide 14: Stable Portfolio Valuation
Stable Portfolio Valuation • Total valuation of 23 properties was S$ 3,601.7 million1 • In local currency terms: higher overall valuation achieved in Singapore, Australia, Ireland, Italy and the Netherlands Location No. of Properties Valuation as at Valuation as at 31 Dec 2023 31 Dec 2022 (S$ millio
Slide 15: Outlook
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Slide 16: Data Centre Demand to Remain Robust
Data Centre Demand to Remain Robust • Cloud service providers (CSPs) remain the primary driver of colocation demand, growing at a CAGR of 45% from 2018 to 2023. Other factors driving data centre demand include cloudification, digital transformation, Internet of Things (IoT), Big data and artificial
Slide 17: Market Capitalisation Rates
Market Capitalisation Rates Location Market Capitalisation Rate Range Asia Pacific 5.00% - 8.00% Singapore 6.00% - 6.75% Australia 5.00% - 6.00% China 6.50% - 7.50% Malaysia 7.00% - 8.00% Europe 4.50% - 7.00% 17
Slide 18: 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 19: Additional Information
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Slide 20: Diversified Global Portfolio with Strong Asia Pacific Presence
Diversified Global Portfolio with Strong Asia Pacific Presence Keppel DC REIT Assets under Management $3.7b 1 9 1 Singapore • Keppel DC Singapore 1 2 Australia • Gore Hill Data Centre, 23 data centres across 9 countries • Keppel DC Sydney 8 3 Singapore 2 • Intellicentre as at 31 Dec 2023 • Keppel DC
Slide 21: Portfolio Overview (as at 31 Dec 2023)
Portfolio Overview (as at 31 Dec 2023) Attributable Land lease No. of Occupancy WALE Interest lettable area Valuation2 Lease type Land lease title remaining Clients1 rate (%) (years)3 (sq ft) (years) Asia Pacific Leasehold Keppel DC Singapore 1, Keppel lease / 100% 109,721 23 86.54 S$339.7m 2.0 (Exp
Slide 22: Portfolio Overview (as at 31 Dec 2023)
Portfolio Overview (as at 31 Dec 2023) Attributable Land lease No. of Occupancy WALE Interest lettable area Valuation2 Lease type Land lease title remaining Clients1 rate (%) (years)3 (sq ft) (years) Europe Kelsterbach Data Centre, €56.2m Triple-net 100% 540,869 1 100.0 2.0 Freehold - Kelsterbach, G
Slide 23: Overview of Contractual Arrangements
Overview of Contractual Arrangements Responsibilities of Owner Insurance Maintena Contractual Property Building Refresh Asia Pacific Description Capex Arrangement Opex Tax nce Keppel lease1 / • Client: Pays rent Keppel DC Singapore 1 ✓ ✓ ✓ ✓ Colocation2 • Owner: Bears all expenses; responsible for f
Slide 24: Overview of Contractual Arrangements
Overview of Contractual Arrangements Responsibilities of Owner Insurance Maintena Contractual Property Building Refresh Europe Description Capex Arrangement Opex Tax nce Kelsterbach Data Centre Triple-net lease • Client: Pays rent and all outgoings; responsible for facilities management - - - - main
Slide 25: ESG Targets and Commitments
ESG Targets and Commitments Environmental Stewardship Responsible Business People & Community Align reporting with the Obtain and maintain green certification for all Engage with local communities and recommendations of the Taskforce Singapore colocation assets by 2025 and obtain contribute to Keppe
Slide 26: 2023 ESG Highlights
2023 ESG Highlights Environmental Stewardship Responsible Business People & Community • Further progress in 2023 to • Dedicated Board ESG Committee • Female directors represent >25% of the adopt Taskforce on Climate-related Board • Continual efforts to maintain BCA Green Mark Financial Disclosures (
Slide 27: Driving Portfolio Growth Through Acquisitions
Driving Portfolio Growth Through Acquisitions London Data Intellicentre 3 Centre East Data Centre1 Keppel DC DC1 Singapore 3 Guangdong Data Keppel DC Eindhoven Centres 2 & 3 Keppel DC Campus Dublin 12 Keppel DC Singapore 4 Intellicentre 2 Dublin 2 2023 Data Centre1 2022 AUM: $3.7b 20213 2020 23 asse
Slide 28: Creating Long-term Stakeholder Value
Creating Long-term Stakeholder Value Diversified global portfolio with a strong Asia Pacific presence • Strong operational expertise and proven growth track record • Proactive asset management to optimise portfolio returns Well-Positioned for Growth • Well-diversified client base The Manager will co
Slide 29: Keppel DC REIT Structure (as at 31 Dec 2023)
Keppel DC REIT Structure (as at 31 Dec 2023) Keppel Institutional and The REIT Manager can leverage Keppel’s global asset management platform and its strong expertise as an operator in Public Investors sustainability-related solutions spanning the areas of infrastructure, real estate and connectivit