Keppel REIT · SGX:K71U
Keppel REIT — K-REIT Asia — Q3 2011 Earnings Presentation
27 slides from Keppel REIT's earnings presentation, Oct 17, 2011
Slide 1: 3Q 2011 Financial Results
3Q 2011 Financial Results 17 October 2011 Building Strengths. Defining Distinction.
Slide 2: Important Notice
Important Notice The past performance of K-REIT Asia 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 and assumptio
Slide 3: Contents
Contents 3Q 2011 Highlights Financial Performance Capital Management Portfolio Analysis Market Review and Outlook Going Forward Additional Information 3
Slide 4: 3Q 2011 Highlights
3Q 2011 Highlights YTD Sep 2011 annualised DPU of 7.59 cents is 13.6% than the 6.68 cents DPU forecast(1) YTD Sep 2011 distribution per unit 22.2% y-o-y to 5.68 cents YTD Sep 2011 distributable income 23.6% y-o-y to $77.2 million 3Q 2011 distribution per unit 16.0% y-o-y to 1.96 cents 3Q 2011 d
Slide 5: Financial Performance
K-REITaSi. Financial Performance
Slide 6: YTD Sep 2011 Distributable Income up 23.6% to $77.2m
YTD Sep 2011 Distributable Income 23.6% to $77.2m YTD Sep YTD Sep Change 2011 2010 Property Income $55.3m $63.2m -$7.8m -12.4% Net Property Income $43.9m $49.8m -$5.9m -11.8% Share of Results of $25.4m $6.4m $19.0m 296.4% Associated Companies Distributable Income to Unitholders $77.2m $62.5m $14.8
Slide 7: 3Q2011 Distributable Income up 17.7% to $26.7m
3Q2011 Distributable Income 17.7% to $26.7m 3Q 2011 3Q 2010 Change Property Income $18.6m $21.8m -$3.2m -14.5% Net Property Income $14.7m $17.5m $2.9m -16.3% Share of Results of $10.9m $1.9m $9.0m 462.8% Associated Companies Distributable Income to Unitholders $26.7m $22.7m $4.0m 17.7% Distributio
Slide 8: 3Q2011 DPU up 1.6% to 1.96 cents
3Q2011 DPU 1.6% to 1.96 cents 3Q 2011 2Q 2011 Change Property Income $18.6m $18.1m $0.5m 3.1% Net Property Income $14.7m $14.3m $0.4m 2.5% Share of Results of $10.9m $8.3m $2.6m 31.1% Associated Companies Distributable Income to Unitholders $26.7m $26.3m $0.4m 1.5% Distribution Per Unit - For the
Slide 9: Healthy Balance Sheet
Healthy Balance Sheet As at As at 30 Sep 2011 30 Jun 2011 Non-current Assets $3,189.3m $3,174.1m Total Assets $3,254.1m $3,257.5m Borrowings(1) $1,151.5m $1,116.0m Total Liabilities $1,272.8m $1,209.9m Unitholders’ Funds $1,981.3m $2,047.6m Net Asset Value (NAV) Per Unit $1.46 $1.51 Adjusted NAV Per
Slide 10: Capital Management
K-REITAS| Capital Management
Slide 11: Healthy Financial Position
Healthy Financial Position As at 30 Sep 2011 As at 30 Jun 2011 Gross Borrowings(1) $1,454 m(4) $1,419 m Aggregate Leverage 39.8% 39.2% Average All-in Interest Rate(2) 2.48% 2.61% Interest Coverage Ratio(3) 4.6 times 4.6 times Weighted Average Term to Expiry 3.6 years 4.0 years (1) Includes borrowing
Slide 12: Balance Debt Maturity Profile
Balance Debt Maturity Profile Approximately $3.0 billion of assets equivalent to 82% of AUM unencumbered No debt expiring in 2012 Only $100 million (6% of total borrowings) due for refinancing in 2013 Low exposure to interest rate risk with majority of debt hedged to fixed rates Well-staggered debt
Slide 13: Portfolio Analysis
K-REITaSi. Portfolio Analysis
Slide 14: Portfolio Occupancy Rate
Portfolio Occupancy Rate Healthy portfolio occupancy of 97.9% Singapore property portfolio occupancy of 98.5% is higher than core CBD occupancy of 92.3% Portfolio Occupancy 100.0% 100.0% 98.5% 100.0% 97.9% 94.1% 88.0% Singapore core CBD occupancy at 92.3%(2) Bugis Junction One Raffles Prudential MBF
Slide 15: Portfolio Lease Profile
Portfolio Lease Profile Well-balanced lease renewal and rent review profile All rent reviews and renewals completed with only 721sf due for renewal until end-2011 Portfolio Lease Profile (by Net Lettable Area) 14.2% 12.6% 10.5% 7.9% 7.0% 5.0% 3.7% 2.6% 0.04% 0.0% 2011 2012 2013 2014 2015 Leases Expi
Slide 16: Stable Lease Portfolio
Stable Lease Portfolio Portfolio of long leases provides income stability Weighted Average Lease Expiry (WALE) Top Ten Tenants WALE 8.44 years Portfolio WALE 7.02 years Portfolio with Long-Term Leases(1) by NLA Short-term leases 38.6% Long-term leases(1) 61.4% 1. Long-term leases are those with leas
Slide 17: Blue-Chip Tenant Base
Blue-Chip Tenant Base Top ten tenants account for 53.2% of portfolio NLA Top Ten Tenants Standard Chartered Bank 9.6% Telstra Corporation Limited 8.5% Barclays Capital Service Limited Singapore Branch 6.5% Deutsche Bank Aktiengesellschaft 5.1% I.E.Singapore 4.3% BHP Billiton Marketing Asia Pte Ltd 4
Slide 18: Tenants diversified across various business sectors
Tenants diversified across various business sectors Retail (Exclude Telecommuni- Accounting & F&B and cations & multi- consultancy Legal services) media services 2.3% 1.4% F&B 9.6% 2.6% 1.1% Energy & natural resources 7.9% Shipping & marine services 0.4% Banking, Services 175(1) insurance & 4.1% ten
Slide 19: Market Review and Outlook
K-REITaSi. Market Review and Outlook
Slide 20: Singapore Office Market
Singapore Office Market Average Grade A office rental shows resilience 96.2% $25 95.4% 93.1% 93.3% 95.2% 95.3% 94.4% 93.1% 92.3% 100% 91.5% 91.2% 91.2% 91.9% Average Grade A Rental ($ psf pm) $20 $18.80 80% Core CBD Occupancy (%) $15.00 $15 60% $12.30 $10.60 $11.06 $10.15 $9.90 $10.30 $10 $8.80 $8.4
Slide 21: Economic and Office Market Outlook
Economic and Office Market Outlook Singapore Singapore’s GDP maintains positive track and grows 1.3% in 3Q2011 The Government forecasts full year GDP growth to be around 5% for 2011 Grade A office rental shows resilience and averages $11.06 psf per month despite significant amounts of new office spa
Slide 22: Going Forward
K-REITAS| Going Forward
Slide 23: Key Thrusts
Key Thrusts Active Acquisition Prudent Capital Asset Growth Management Management Pursue opportunities Manage assets and cost Attract creditworthy tenants for acquisitions in structure more effectively to increase occupancy as Singapore and well as retain good existing pan-Asia Exercise prudent inte
Slide 24: Additional Information
K-REITAS| Additional Information
Slide 25: Singapore's Leading Office REIT
Singapore’s Leading Office REIT Overview Listed on the SGX-ST in April 2006 with a market cap of $1.4bn(1) as at 30 September 2011. Quality portfolio of seven commercial Grade A office assets valued at approximately $3.7bn and spanning 1.9m sf NLA as at 30 September 2011. High quality property portf
Slide 26: Portfolio Information
Portfolio Information Bugis Junction Prudential Tower 275 George 77 King Street 8 Chifley As at 30 Sep 2011 MBFC 1(2) One Raffles Quay Towers Property Street Office Tower Square (5) Attributable NLA 246,238 582,206 445,120 223,286 224,686 148,033 102,850 (sf) Ownership 100% 33.3% 33.3% 92.8% 50.0% 1
Slide 27: Thank you
Thank you Fax: 6835 7747 http://www.kreitasia.com For enquiries, please contact Ms Casiopia Low Investor Relations & Research Tel: 6433 7622 Email: casiopia.low@kreitasia.com 27