Keppel REIT · SGX:K71U
Keppel REIT — 3Q 2008 Earnings Presentation
12 slides from Keppel REIT's earnings presentation, Oct 20, 2008
Slide 1: Financial Results 1 Jan to 30 Sep 2008
FINANCIAL RESULTS 1 Jan to 30 Sep 2008 20 Oct 2008 Contents Financial Results Stable Portfolio Balanced Capital Structure Market Review & Outlook Additional Information 2 1
Slide 2: Highlights
Highlights YTD Sep 2008 distributable income 174% y-o-y Excl 1/3 ORQPL, net property income 31.3% y-o-y Portfolio with 99.4% committed occupancy Average portfolio gross rental rate 67.7% y-o-y Low aggregate leverage of 27.6% No refinancing requirements until 2011 3 Financial Results 4 2
Slide 3: YTD Sep 2008 DPU Outperformed Forecast by 13.6%
YTD Sep 2008 DPU Outperformed Forecast by 13.6% YTD YTD Sep 2008 YTD Sep 2007 Sep 2008 ($'000) Actual Forecast(1) % Chg Actual % Chg Property Income 38,357 37,198 3.1 29,041 32.1 Net Property Income 27,846 27,376 1.7 21,238 31.1 Distributable Income to Unitholders 40,772 35,899 13.6 14,892 173.8 Dis
Slide 4: YTD Sep 2008 Income Contribution Up 186% Y-o-Y
YTD Sep 2008 Income Contribution Up 186% Y-o-Y YTD YTD Sep 2007 3Q 2008 3Q 2007 Sep 2008 ($'000) Actual Actual % Chg Actual Actual % Chg Prudential Tower 5,726 3,656 56.6 2,099 1,206 74.0 Keppel Towers and GE Tower 13,543 10,309 31.4 4,018 3,801 5.7 Bugis Junction Towers 8,577 7,273 17.9 3,414 2,486
Slide 5: Healthy Balance Sheet
Healthy Balance Sheet Aggregate leverage of 27.6% → one of the lowest among Singapore- listed commercial REITs ($million) As at 30 Sep 2008 Non-current Assets 2,034.5 Total Assets 2,069.4 (1) Borrowings 576.7 Total Liabilities 604.7 Unitholders' Funds 1,464.7 Net Asset Value Per Unit $2.26 Net Asset
Slide 6: Broad Tenant Diversity; Blue-chip Tenants on Long Leases
Broad Tenant Diversity Tenant Business Sector by Net Lettable Area @ 30 Sep 2008 Accounting & consultancy services 7.4% 3.8% Banking, insurance & financial services Conglomerate 9.0% Government agency Hospitality & leisure 8.3% 35.6%(1) IT services & consultancy 120 tenants Others 4.5% in total Phar
Slide 7: Portfolio Lease Expiry & Rent Review Profiles
Portfolio Lease Expiry & Rent Review Profiles Lease Profile as a Percentage of Net Lettable Area @ 30 Sep 2008 25% 19.9% 20% 16.7% 15% 13.3% 12.6% 11.3% 11.5% 10% 8.1% 6.4% 5% 0.7% 0% 0% 2008 2009 2010 2011 2012 Lease Expiry as a Percentage of Portfolio's Total NLA Rent Review as a Percentage of Por
Slide 8: Portfolio Valuations vs Market Valuations
Portfolio Valuations vs Market Valuations K-REIT Asia’s asset valuations(1) Prudential Tower About $2,100 psf Keppel Towers and GE Tower About $1,300 psf Bugis Junction Towers About $1,200 psf One Raffles Quay About $2,200 psf Market valuations for prime office CBRE: $2,900 psf and Jones Lang LaSall
Slide 9: No Refinancing Concerns until 2011
No Refinancing Concerns until 2011 30 Sep 2008 Gross Borrowings $581.2m Aggregate Leverage 27.6% All-in Interest Rate 2.77% (1) Interest Coverage Ratio 1.71 times Weighted Average Term to Expiry 2.50 years Corporate Rating (by Moody's) Baa3 Debt profile as at 30 Sep 2008 Fixed-rate $190m Maturing in
Slide 10: S'pore Continues to be Attractive in Asia; Going Forward
S’pore Continues to be Attractive in Asia Weak macroeconomic sentiment currently Office supply limited for next 2 years although demand is uncertain Singapore remains a key business destination in longer-term World’s easiest place to do business ( “Doing Business 2009” ranking by World Bank) Retaine
Slide 11: Thank You
Thank You The value of units in K-REIT Asia (“Units”) and the income from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the princi
Slide 12: Snapshot of K-REIT Asia; High Quality Portfolio of Assets
Snapshot of K-REIT Asia Manager K-REIT Asia Management Limited Property Portfolio 5 quality commercial office assets valued at $2.1 billion Listing Date 28 Apr 2006 on Singapore Stock Exchange Market Capitalisation $494 million as at 17 Oct 2008 Unit Price $0.76 Number of Units in Issue 649,452,305