Keppel Reit · SGX:K71U
Keppel Reit — 9M 2021 Earnings Presentation
24 slides from Keppel Reit's earnings presentation, Oct 26, 2021
Slide 1: 3Q 2021 Key Business and Operational Updates
3Q 2021 Key Business and Operational Updates 26 October 2021
Slide 2: Outline
Outline Constituent of: ▪ Key Highlights & ESG Approach 3 ▪ Financial & Portfolio Highlights 7 FTSE ST Large & Mid Cap Index ▪ Market Review 16 ▪ Additional Information 21 FTSE EPRA Nareit Global Developed Index IMPORTANT NOTICE: The past performance of Keppel REIT is not necessarily indicative of i
Slide 3: 9M 2021 Key Highlights
9M 2021 Key Highlights $159.9m 97.1% 9M 2021 distributable income High portfolio committed occupancy from operations(1) as at 30 Sep 2021 Up 20.8% y-o-y 37.6% 6.1 years Long portfolio weighted average lease Aggregate leverage expiry (WALE) as at 30 Sep 2021 as at 30 Sep 2021 Top 10 tenants’ WALE was
Slide 4: Pan-Asian Portfolio with Income Resilience
Pan-Asian Portfolio with Income Resilience $8.6b Singapore, Australia, ESG Certifications 80.0% 16.4% Grade A commercial portfolio with strong committed occupancy and an South ▪ BCA Green Mark Platinum award for established and diversified tenant base Korea, all Singapore assets 3.6% ▪ 5 Stars and a
Slide 5: Commitment to ESG Excellence
Commitment to ESG Excellence Environmental Stewardship ▪ Supporting climate action, adopting energy optimisation measures and use of renewable energy resources ▪ Increasing emphasis on sustainability-focused funding with green loans representing approximately 31% of Keppel REIT’s total borrowings ▪
Slide 6: Commitment to ESG Excellence (Cont'd)
Commitment to ESG Excellence (Cont’d) Responsible Business People and Community ▪ ESG factors are considered in key business decisions and ▪ Support employee wellness, foster collaboration, as well as encourage training and development operations ▪ Stringent measures to provide safe and conducive wo
Slide 7: Financial & Portfolio Highlights
Financial & Portfolio Highlights Pinnacle Office Park, Sydney 7
Slide 8: 20.8% Growth in Distributable Income from Operations
20.8% Growth in Distributable Income from Operations ▪ Year-on-year growth in distributable income was due mainly to contributions from Victoria Police Centre, Pinnacle Office Park and Keppel Bay Tower ▪ The increase was partially offset by the impact of the divestment of 275 George Street in Jul 20
Slide 9: Prudent Capital Management
Prudent Capital Management ▪ Aggregate leverage lowered to 37.6% after proceeds from the divestment of 275 George Street was used to repay debt ▪ All-in interest rate reduced year-on-year to 1.99% p.a. from 2.39% p.a. ▪ Lengthened weighted average term to maturity of borrowings with the issuance of
Slide 10: Continuing Portfolio Optimisation
Continuing Portfolio Optimisation Developments in 2021: ▪ Portfolio optimisation strategy to enhance income ▪ Acquired Keppel Bay Tower, a Grade A resilience and deliver sustainable total return to Unitholders office building in the Keppel Bay waterfront precinct in HarbourFront on 18 May 2021 ▪ Bui
Slide 11: Grade A Portfolio with High Occupancy and Long WALE
Grade A Portfolio with High Occupancy and Long WALE $8.6b portfolio with high portfolio committed occupancy of 97.1% and long overall portfolio WALE of 6.1 years (Top 10 tenants’ WALE was 10.8 years) T Tower, Seoul 8 Chifley Square, 99.4% Interest Pinnacle Office Park, Sydney Occupancy: 94.2% Sydney
Slide 12: 9M 2021 Portfolio Update
9M 2021 Portfolio Update New leasing demand and expansions from: Banking, insurance and financial services 34.5% Technology, media and telecommunications 22.0% Leases Committed Manufacturing and distribution 18.4% Total Leases Committed Leases Committed by Geography(2) by Type(2) Accounting and cons
Slide 13: 9M 2021 Portfolio Update (Cont'd)
9M 2021 Portfolio Update (Cont’d) ▪ Average signing rent for Singapore office leases(1) concluded in 9M 2021 was $10.49 psf pm ▪ Average expiring rents of Singapore office leases(2)(psf pm): $10.38 in 2022, $10.87 in 2023 and $10.68 in 2024 Lease Expiries and Rent Reviews(3) Expiring Leases Rent Rev
Slide 14: Established and Diversified Tenant Base
Established and Diversified Tenant Base ▪ Keppel REIT has a diversified tenant ▪ Top 10 tenants take up 41.5% of NLA base of 377(1) tenants, many of which are and contribute 37.0% of gross rent established blue-chip corporations Top 10 Tenants Tenant Business Sector State of Victoria 10.0% Banking,
Slide 15: Meeting Diverse Tenant Needs
Meeting Diverse Tenant Needs Robust portfolio of Grade A office properties that caters to tenants’ diverse business needs Quality Workplaces with Fitted/Flexible Strong ESG Focus Solutions Grade A office buildings that are well managed with Providing greater tenant flexibility sustainable and techno
Slide 16: Market Review
Market Review Keppel Bay Tower, Singapore 16
Slide 17: Singapore Office Market
Singapore Office Market ▪ Average core CBD Grade A office rents increased to $10.65 psf pm in 3Q 2021 while average occupancy in core CBD remained stable at 92.1% Grade A Rent and Core CBD Occupancy Demand and Supply 2.1 1.9 1.7 95.8% 93.8% 94.8% 95.8% 93.8% 93.9% 1.3 $15 92.1% 92.1% 100% 0.9 1.0 0.
Slide 18: Australia Office Market
Australia Office Market 94.9% 96.0% 95.2% 94.0% 97.0% 98.2% 91.3% 87.5% 87.5% 86.4% 87.4% 100% 92.1% 86.2% 85.0% 100% 84.8% 83.9% 1,200 1,032 1,045 1,200 964 80% 80% Sydney CBD 900 799 930 915 895 881 60% Melbourne CBD 900 60% 503 538 573 546 542 532 600 40% 600 448 519 40% Prime Grade occupancy 300
Slide 19: Seoul Office Market
Seoul Office Market ▪ CBD Grade A occupancy increased to 87.9% in 3Q 2021 CBD Grade A Rent and Occupancy 200,000 100% 90.7% 87.9% 85.0% 86.6% 86.7% 87.0% 87.6% 82.7% 160,000 80% 120,000 60% 97,572 98,508 98,406 98,583 95,169 91,845 92,325 91,656 80,000 40% 40,000 20% 0 0% 4Q16 4Q17 4Q18 4Q19 4Q20 1Q
Slide 20: Committed to Delivering Stable Income & Sustainable Returns
Committed to Delivering Stable Income & Sustainable Returns Portfolio Optimisation • Portfolio optimisation to improve yield, while maintaining exposure to Singapore CBD Portfolio • Hold quality assets across different markets for improved income stability Optimisation and to provide more long-term
Slide 21: Additional Information
Additional Information Ocean Financial Centre, Singapore 21 Photo Credit: Central Narcotics Bureau
Slide 22: Portfolio Information: Singapore
Portfolio Information: Singapore As at Marina Bay Ocean Financial Centre One Raffles Quay Keppel Bay Tower 30 Sep 2021 Financial Centre(4) Attributable NLA 698,637 sf 1,023,079 sf 441,155 sf 386,223 sf Ownership 79.9% 33.3% 33.3% 100.0% BNP Paribas, DBS Bank, Deutsche Bank, Keppel Group, Principal A
Slide 23: Portfolio Information: Australia & South Korea
Portfolio Information: Australia & South Korea As at 8 Exhibition Victoria Police David Malcolm 8 Chifley Square, Pinnacle Office T Tower, 30 Sep 2021 Street(3), Centre, Justice Centre, Sydney Park, Sydney Seoul Melbourne Melbourne Perth Attributable 104,055 sf 376,975 sf 244,595 sf 364,180 sf 167,7
Slide 24: Thank You
Thank You For more information, please visit: www.keppelreit.com Connect with us on: Victoria Police Centre, Melbourne 24