Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — 9M 2017 Earnings Presentation
26 slides from Keppel Dc Reit's earnings presentation, Oct 16, 2017
Slide 1: Third Quarter & Nine Months 2017 Financial Results
Third Quarter & Nine Months 2017 Financial Results 16 October 2017
Slide 2: Important Notice
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 and assump
Slide 3: Content
Content Key Highlights Financial Performance Portfolio Review Capital Management Outlook Additional Information 2
Slide 4: Key Highlights
Key Highlights
Slide 5: Key Highlights
Key Highlights $ € £ 9M 2017 Adjusted DPU1 Portfolio Occupancy Aggregate Leverage2 5.22 cents 93.4% 32.1% up 4.2% from 9M 20161 as at 30 Sep 2017 as at 30 Sep 2017 Adjusted Distribution Yield1 Portfolio WALE Interest Coverage 5.27% 9.2 years 10.6 times based on 9M 2017’s by leased area ended 30 Sep
Slide 6: Financial Performance
Financial Performance
Slide 7: Distributable Income
Distributable Income +/(-) +/(-) ($’000) 3Q 2017 3Q 2016 9M 2017 9M 2016 % % Distributable Income to Unitholders1 20,179 16,782 +20.2 62,075 46,278 +34.1 Comprising: Gross Revenue 35,483 22,663 +56.6 102,222 72,299 +41.4 Property Expenses (3,219) 40 Nm2 (9,751) (6,305) +54.7 Net Property Income 32,2
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights As at As at +/(-) ($’000) 30 Sep 2017 31 Dec 2016 % Investment Properties 1,576,629 1,225,938 +28.6 Total Assets 1,747,399 1,582,999 +10.4 Gross Borrowings 1 542,696 439,321 +23.5 Total Liabilities 638,409 509,131 +25.4 Unitholders’ Funds 1,084,519 1,073,525 +1.0 Units in Is
Slide 9: Aggregate Leverage
Aggregate Leverage As at As at +/(-) ($’000) 30 Sep 2017 31 Dec 2016 % Investment Properties 1 1,544,231 1,193,540 +29.4 (excluding finance lease liabilities commitments) Deposited Properties 1 1,688,640 1,550,258 +8.9 (excluding finance lease liabilities commitments) Gross Borrowings + Deferred Pay
Slide 10: Portfolio Review
Portfolio Review
Slide 11: Portfolio Growth: Second Data Centre in Dublin
Portfolio Growth: Second Data Centre in Dublin Acquired a second data centre in Dublin, Ireland, a key data centre hub in Europe B10 Data Centre is an energy-efficient carrier-neutral colocation data centre leased to global internet enterprise, IT services and telecommunications clients Strate
Slide 12: Portfolio Update
Portfolio Update Following the addition of B10 Data Centre in Dublin, portfolio WALE remains long at 9.2 years while occupancy was at 93.4% Key terms have been agreed in-principle for the two remaining major leases due in 2017, pending finalisation of lease documentation Lease expiry profile (by
Slide 13: Stable & Diversified Portfolio
Stable & Diversified Portfolio Rental income breakdown for the month of September 20171 Income stability with an established global clientele and By trade sector: a mix of master-leased facilities on long leases, as well as Corporate Internet colocation facilities which provide diversity in terms of
Slide 14: Capital Management
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Slide 15: Prudent Capital Management
Prudent Capital Management Hedging of borrowing costs Comfortable debt headroom: Aggregate leverage at 32.1% As at 30 September 2017 following latest B10 Data Centre acquisition, leaving headroom for further growth Un- hedged Managing interest rate exposure: Interest rates of long-term Hedged 33
Slide 16: Prudent Capital Management (Cont’d)
Prudent Capital Management (Cont’d) Mitigating impact of currency fluctuations: Hedged the REIT’s forecasted foreign-sourced distributions up to 1H 2019 through foreign currency forward contracts Adopted natural hedging by borrowing in currencies that match the corresponding investments Invest
Slide 17: Outlook
Outlook
Slide 18: Sustained Industry Growth
Sustained Industry Growth Higher IT budget and data centre investment activities expected Data centre investment activities to increase; continues to be driven by cloud service providers IDC expects IT budget expansion with stabilising business confidence; IDC projects 6% increase by professio
Slide 19: Committed to Deliver Value
Committed to Deliver Value Vision: To be the preferred data centre real estate investment trust, serving as a trusted partner to our stakeholders. Mission: Guided by the Keppel Group’s operating principles and core values, we will create value for our investors by growing a quality portfolio of data
Slide 20: Additional Information
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Slide 21: Keppel DC REIT Structure
Keppel DC REIT Structure Keppel Telecommunications Keppel Capital & Transportation The REIT Manager can leverage The REIT Manager can leverage the scale and resources of a larger the Sponsor‘s expertise and track Institutional and Keppel Land asset management platform record in this industry Public
Slide 22: Portfolio Overview (as at 30 September 2017)
Portfolio Overview (as at 30 September 2017) Attributable No. of Occupancy Carrying value3 WALE Location Interest lettable area Lease type Land lease title Asia Pacific clients1 rate (%) ($m) (years) (sq ft) Leasehold Keppel DC Keppel lease / (Expiring 30 Sep 2025, Singapore 100% 109,721 19 90.7 280
Slide 23: Portfolio Overview (as at 30 September 2017) (Cont’d)
Portfolio Overview (as at 30 September 2017) (Cont’d) Attributable No. of Occupancy Carrying value4 WALE Location Interest lettable area Lease type Land lease title Europe (sq ft) clients1 rate (%) ($m) (years) London, Leasehold Triple-net GV7 Data Centre United 100% 24,972 1 100.0 68.0 9.4 (Expirin
Slide 24: Overview of Lease Arrangements
Overview of Lease Arrangements Asia Pacific Responsibilities of Owner Maintenance Lease Insurance Property Description Property Building Arrangement Refresh Capex Opex Tax Keppel lease1 / Client: Pays rent Keppel DC Singapore 1 Colocation3 Owner: Bears all expenses; responsible for facil
Slide 25: Overview of Lease Arrangements (Cont’d)
Overview of Lease Arrangements (Cont’d) Europe Responsibilities of Owner Maintenance Lease Insurance Property Description Property Building Arrangement Refresh Capex Opex Tax GV7 Data Centre Triple-net lease Client: Pays rent and all outgoings; responsible for facilities management - - - - Cardiff
Slide 26: Thank you.
Thank you. LG yt) DC REIT 25