Slide 1: Fourth Quarter & Full Year 2015 Financial Results
Fourth Quarter & Full Year 2015 Financial Results 14 January 2016
Slide 2: Important Notice
Important Notice DBS Bank Ltd. and Standard Chartered Securities (Singapore) Pte. Limited are the Joint Financial Advisers and Issue Managers to the initial public offering of Keppel DC REIT (the “Offering”). DBS Bank Ltd., Standard Chartered Securities (Singapore) Pte. Limited and Credit Suisse (Si
Slide 3: Content
Content Key Highlights Financial Review Portfolio Performance Capital Management Outlook 2
Slide 4: Key Highlights
Key Highlights
Slide 5: Key Highlights
Key Highlights YTD 20151: o Distribution per Unit of 3.28 cents declared for 2H 2015 o Net property income outperformed IPO forecast2 by 1.7% o Distributable income was 1.9% higher than IPO forecast2 o Annualised distribution yield3 was 13bps above IPO forecast2 4Q 2015: o Net property income wa
Slide 6: Financial Review
Financial Review
Slide 7: YTD 2015 Distributable Income
YTD 20151 Distributable Income YTD 20151 YTD 20151 Variance Actual Forecast2 (%) (S$’000) (S$’000) Distributable Income to Unitholders3 60,394 59,283 +1.9 Distribution Per Unit3 (cents) 6.84 6.71 +1.9 Annualised Distribution Yield4 6.97% 6.84% +13bps Comprising: Gross Revenue 107,684 105,853 +1.7 Pr
Slide 8: 4Q 2015 Distributable Income
4Q 20151 Distributable Income 4Q 20151 4Q 20151 Variance Actual Forecast2 (%) (S$’000) (S$’000) Distributable Income to Unitholders3 14,482 14,169 +2.2 Distribution Per Unit3 (cents) 1.64 1.61 +1.9 Comprising: Gross Revenue 24,764 25,295 (2.1) Property Expenses (2,919) (3,852) (24.2) Net Property In
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights As at 31 Dec 2015 (S$’000) Investment Properties1 1,102,685 Total Assets1 1,211,171 Gross Borrowings 341,848 Total Liabilities 397,683 Unitholders’ Funds 813,114 Units in Issue (‘000) 882,976 Net Asset Value (“NAV”) per Unit (S$) 0.921 Unit Price (as at 31 December 2015) (S$
Slide 10: Aggregate Leverage
Aggregate Leverage As at 31 Dec 2015 (S$’000) Investment Properties1 1,071,358 (excluding finance lease liabilities commitments) Total Assets1 1,179,844 (excluding finance lease liabilities commitments) Gross Borrowings2 344,890 Total Borrowings3 371,980 Aggregate Leverage4 29.2% Notes: (1) Investme
Slide 11: Distribution Declared
Distribution Declared Distribution per unit (DPU) of 3.28 cents declared for Distribution Timetable the period from 1 July 2015 to 31 December 2015 Wednesday, Ex-Date Including the DPU of 3.56 cents paid to Unitholders 20 January 2016 on 28 August 2015 for the period from listing date to Friday,
Slide 12: Portfolio Performance
Portfolio Performance
Slide 13: Geographical Network
Geographical Network Current AUM Ireland Citadel 100 Data Centre, Dublin ~S$1.07b4 United Kingdom comprising 9 data centres in 6 countries GV7 Data Centre, London (excludes mainCubes Data Centre which Netherlands is under development by the Vendor) Almere Data Centre, Almere Almere Data Centre 2, Al
Slide 14: Portfolio Growth: Intellicentre 2 in Australia
Portfolio Growth: Intellicentre 2 in Australia Maiden acquisition completed successfully on 10 August 2015 strengthened Keppel DC REIT’s market presence in Sydney. Sale and leaseback transaction with Macquarie Telecom for the shell and core building of Intellicentre 2 enhanced the REIT’s income
Slide 15: Portfolio Growth: mainCubes Data Centre in Germany
Portfolio Growth: mainCubes Data Centre in Germany Foray into key European data centre market with forward purchase of data centre to be built to Tier III specifications in Offenbach am Main. Completion expected in 2018. Immediately income-generating with regular coupons receivable from the Vend
Slide 16: Enhanced Geographical Diversification with Acquisitions
Enhanced Geographical Diversification with Acquisitions The two acquisitions announced in FY 2015 will further diversify the geographical profile of the REIT’s portfolio, as well as balance the proportion of assets in Asia Pacific and Europe Portfolio Growth since Listing on 12 December 2014 Post
Slide 17: Diversified & Resilient Portfolio
Diversified & Resilient Portfolio Mix of long leases that enhance income stability of the portfolio, and short leases which provide opportunities for further growth Rental income1 breakdown by lease type3 Co-location Fully-fitted Shell & core WALE2 2.3 years 9.7 years 15.7 years Co-location, 67.9%
Slide 18: Diversified & Resilient Portfolio (Cont'd)
Diversified & Resilient Portfolio (Cont’d) Well-diversified and credit-worthy client base Top 10 clients (based on rental income) 2,3 Client Industry % of Rental Income Rental income1 A Internet enterprise 24.5% breakdown by client’s trade sector B IT services 17.2% C Telecommunications 8.4% Corpo
Slide 19: Diversified & Resilient Portfolio (Cont'd)
Diversified & Resilient Portfolio (Cont’d) Long portfolio WALE of 8.7 years and healthy portfolio occupancy of 94.8% enhance the stability of the REIT’s income streams Portfolio Metrics As at 31 December 2015 As at IPO Lettable Area 597,909 sq ft 509,913 sq ft Valuation S$1.07 billion S$1.02 billi
Slide 20: Capital Management
Capital Management
Slide 21: Prudent Capital Management
Prudent Capital Management Proactive hedging policies to mitigate volatilities: Entered into floating-to-fixed interest rate swaps to lock in interest rates of the long-term loans Use of foreign currency forward contracts to hedge the REIT’s forecasted foreign- sourced distributions. Hedging u
Slide 22: Prudent Capital Management
Prudent Capital Management Hedging of borrowing costs As at 31 December 2015 As at 31 December 2015 ~S$342m of external loans (unencumbered) Hedged Total debt 87% S$40m of undrawn revolving credit facility Un- hedged Aggregate 29.2% 13% Leverage1 Debt maturity profile Average cost 2.5% per a
Slide 23: Outlook
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Slide 24: Positive Global Trends
Positive Global Trends Industry fundamentals remain intact, supported by global trends that will further propel data centre demand Cloud traffic1 Mobile data traffic2 +33% +57% CAGR from 2014 to 2019 CAGR from 2014 to 2019 Global e-commerce3 Digital universe4 +17% 10x CAGR from 2014 to 2018 from 2
Slide 25: Accolades & Recognition
Accolades & Recognition KDCREIT was added to the MSCI Singapore Small Cap Index KDCREIT was conferred the “Most Transparent Company Award (New Issues) – Runner Up” in the SIAS 16th Investors' Choice Awards KDCREIT was voted “3rd Strongest Adherence to Corporate Governance”, “Most Improved Inve
Slide 26: Committed to Deliver Value
Committed to Deliver Value Active capital management High growth industry with Established significant track record barriers to entry Strategic location in key data centre hubs Strong global clientele To provide Unitholders with regular and stable distributions, and to achieve long-term growth in DP
Slide 27: Additional Information
Additional Information
Slide 28: Keppel DC REIT Structure
Keppel DC REIT Structure Institutional and Public Keppel T&T Keppel Land Investors and Basis Bay 100% Vendor 30.1% 4.9% 65.0% Management Acts on behalf services of Unitholders REIT Manager Trustee Management Keppel DC REIT Trustee fees fees Keppel DC REIT The Trust Company (Asia) Management Pte. Ltd
Slide 29: Portfolio Overview (as of 31 December 2015)
Portfolio Overview (as of 31 December 2015) Asia Pacific Lettable area No. of Occupancy Valuation WALE Property Location Interest Lease type Land lease title (sq ft) clients(1) rate (%) (S$m) (years) Leasehold (Expiring 30 Keppel lease / 2.8(2) S25 Singapore 100% 109,574 20(2) 85.7 275.0 September 2
Slide 30: Portfolio Overview (as of 31 December 2015) (Cont'd)
Portfolio Overview (as of 31 December 2015) (Cont’d) Europe Lettable No. of Occupancy Valuation WALE Property Location Interest area Lease type Land lease title clients(1) rate (%) (S$m) (years) (sq ft) London, Triple-net Leasehold (Expiring GV7 Data Centre United 100% 24,972 1 100.0 82.2 11.1 (Full
Slide 31: Overview of Lease Arrangements
Overview of Lease Arrangements Asia Pacific Responsibilities of Lessor / Owner Management Maintenance Maintenance Lease Day-to-day Insurance Property Description Property Facilities Building Arrangement Refresh Capex Opex Tax Keppel lease(1) / Client: Pays cost of rent and all expenses recharged t
Slide 32: Overview of Lease Arrangements (Cont'd)
Overview of Lease Arrangements (Cont’d) Europe Responsibilities of Lessor / Owner Management Maintenance Maintenance Lease Day-to-day Insurance Property Description Property Facilities Building Arrangement Refresh Capex Opex Tax GV7 Data Centre Triple-net lease Client: Pays all outgoings; responsi
Slide 33: Thank you.
Thank you. KG y-y-1) DC REIT 32