Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — H1 2024 Earnings Presentation
30 slides from Keppel Dc Reit's earnings presentation, Jul 26, 2024
Slide 1: First Half 2024 Financial Results
First Half 2024 Financial Results 26 Jul 2024
Slide 2: Outline
Outline Key Highlights 3 Financial Updates 6 Portfolio Updates 9 Capital Management 13 Outlook 17 Additional Information 22 Constituent of: Awards and Certifications: FTSE EPRA Nareit MSCI Singapore GPR 250 Global Developed Index Small Cap Index Index Series 1 2 1. The use by Keppel DC REIT of any M
Slide 3: Key Highlights
Key Highlights 3
Slide 4: Key Highlights
Key Highlights Robust Financials Active Portfolio Management Value Creation • 1H 2024 DPU1: 4.549 cents • Portfolio Occupancy2: 97.5% • Divestment of Intellicentre Campus at attractive exit cap • Renewed major contract in • Portfolio WALE3: 6.4 years by rate of ~3.6% Singapore with positive lettable
Slide 5: Acquisition of Tokyo Data Centre 1
Acquisition of Tokyo Data Centre 1 • Maiden foray into Japan, the second largest data centre hub Hyperscaler Data Centre in Tokyo in Asia • Asset is located within a primary data • Opportunity for positive rental reversion and potential for centre hub in West Tokyo further organic growth • Freehold,
Slide 6: Financial Updates
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Slide 7: Resilient Financial Performance
Resilient Financial Performance Distributable Income ($’000)1 Distribution Per Unit (cents)2 1H 2024 vs 2H 2023 • Resilient financial performance underpinned by strong positive portfolio reversions. Recorded positive reversion of >40% for a major contract 91,311 5.051 4.332 4.549 renewal in Singapor
Slide 8: Distribution Details
Distribution Details Distribution for the period from 1 Jan to 30 Jun 2024 DPU 4.549 cents Ex-distribution Date 2 August 2024 Record Date 5 August 2024 Payment Date 23 September 2024 8
Slide 9: Portfolio Updates
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Slide 10: Robust Portfolio Performance
Robust Portfolio Performance High Portfolio Occupancy Strong positive reversion at a colocation data centre in Singapore 97.5%1,3 • Secured a major renewal contract with positive reversion of >40% Healthy Portfolio WALE • Continue to capitalise on sound fundamentals and structural 6.4 years2 tailwin
Slide 11: Staggered Lease Expiry Profile
Staggered Lease Expiry Profile By Lettable Area1 By Rental Income1 47.3% 37.3% 28.7% 20.2% 21.3% 10.2% 8.3% 6.1% 4.9% 5.1% 5.2% 5.4% 2024 2025 2026 2027 2028 ≥2029 2024 2025 2026 2027 2028 ≥2029 Shell and Core 0.0% 3.1% 0.9% 1.4% 0.0% 4.5% Shell and Core 0.0% 24.0% 2.6% 6.0% 0.3% 17.5% Fully-fitted
Slide 12: Diversified Global Client Base
Diversified Global Client Base • Majority of rental income is derived from clients with investment grade or equivalent credit profiles Rental Income by Trade Sector1 Rank Top 10 Clients Trade Sector Rental Income1 1 Fortune Global 500 Company (Hyperscaler) Internet Enterprise 38.8% 2 Government-link
Slide 13: Capital Management
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Slide 14: Agile Financial Management
Agile Financial Management Key Metrics As at 30 Jun 2024 Change from 31 Mar 2024 Aggregate Leverage1 35.8% -180 bps 3.5% Average Cost of Debt - (2Q 2024 and YTD) Weighted Average Debt Tenor 3.1 years -0.1 years Weighted Average Hedge Tenor 2.7 years -0.2 years Interest Coverage Ratio (ICR) 5.1 times
Slide 15: Favourable Debt Profile
Favourable Debt Profile Debt Maturity Profile Floating as at 30 Jun 2024 26% Fixed 5.6% 74% Debt 5.8% 9.2% 1.9% • A 100 bps change would have a ~2.3% 1 4.2% impact to 2Q 2024’s DPU on a pro forma 7.3% 25.7% 6.4% basis 9.2% 10.8% 7.3% 1.4% 5.2% SGD 36.3% 2024 2025 2026 2027 2028 2029 2030 EUR Total S
Slide 16: Healthy Balance Sheet
Healthy Balance Sheet As at As at +/(-) ($’000) 30 Jun 2024 31 Dec 2023 % Investment Properties 3,559,593 3,655,932 (2.6) Total Assets 3,989,795 4,006,551 (0.4) Gross Borrowings1 and Deferred Payments 1,408,436 1,478,492 (4.7) Total Liabilities 1,577,071 1,652,590 (4.6) Unitholders’ Funds 2,369,306
Slide 17: Outlook
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Slide 18: Data Centre Growth Driven by Digital Transformation
Data Centre Growth Driven by Digital Transformation • Generative artificial intelligence (AI) is expected to become a significant demand driver, estimated to take up roughly 50% or more of the existing hyperscale demand for global data centre capacity. Cloud service providers are stepping up expansi
Slide 19: Singapore Data Centre Market
Singapore Data Centre Market Absorption and New Supply2 • Singapore is a regional DC hub, with a total capacity exceeding 1.4 GW1 and is currently close to 110 full occupancy. 100 90 • Despite significant self-build pipeline capacity, Singapore remains predominantly a colocation 80 DC market with co
Slide 20: Diversified Global Portfolio with Strong Asia Pacific Presence
Diversified Global Portfolio with Strong Asia Pacific Presence Keppel DC REIT Assets under Management $3.9b1 JAPAN • Tokyo Data Centre 1, Tokyo 23 data centres across 10 countries AUM Breakdown1 Asia Pacific 72.9% Europe 27.1% Singapore 52.9% Germany 6.4% Australia 7.4% Ireland 7.9% China 7.1% Italy
Slide 21: Thank You
Thank You 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
Slide 22: Additional Information
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Slide 23: Keppel DC REIT's AUM has Quadrupled Since IPO
Keppel DC REIT’s AUM has Quadrupled Since IPO 2 AUM: $3.9b 23 assets across 10 ~12% countries CAGR AUM: $1.0b 3.7 3.7 1 8 assets 3.4 across 6 3.0 countries 2.6 2.0 1.5 1.1 1.2 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD 2024 1. Divested iseek Data Centre in Australia in Sep 2021. 2. Includ
Slide 24: Portfolio Overview (as at 30 Jun 2024)
Portfolio Overview (as at 30 Jun 2024) Attributable Attributable Land lease No. of Occupancy WALE Property Age Interest lettable area gross Valuation3 Lease type Land lease title remaining Clients1 rate (%) (years)4 (years) (sq ft) revenue2 (years) Asia Pacific Leasehold ~27 Keppel DC Singapore 1, K
Slide 25: Portfolio Overview (as at 30 Jun 2024)
Portfolio Overview (as at 30 Jun 2024) Attributable Attributable Land lease No. of Occupancy WALE Property Age Interest lettable area gross Valuation3 Lease type Land lease title remaining Clients1 rate (%) (years)4 (years) (sq ft) revenue2 (years) Europe Kelsterbach Data Centre, €56.2m Triple-net 1
Slide 26: Overview of Contractual Arrangements
Overview of Contractual Arrangements Responsibilities of Owner Maintenance Contractual Insurance Asia Pacific Description Property Building Arrangement Refresh Capex Opex Tax Keppel lease1 / • Client: Pays rent Keppel DC Singapore 1 ✓ ✓ ✓ ✓ Colocation2 • Owner: Bears all expenses; responsible for fa
Slide 27: Overview of Contractual Arrangements
Overview of Contractual Arrangements Responsibilities of Owner Maintenance Contractual Insurance Europe Description Property Building Arrangement Refresh Capex Opex Tax Kelsterbach Data Centre Triple-net lease • Client: Pays rent and all outgoings; responsible for facilities management - - - - mainc
Slide 28: ESG Targets and Commitments
ESG Targets and Commitments Environmental Stewardship Responsible Business People & Community Align reporting with the Obtain and maintain green certification for all Engage with local communities and recommendations of the Taskforce Singapore colocation assets by 2025 and obtain contribute to Keppe
Slide 29: ESG Highlights
ESG Highlights Environmental Stewardship Responsible Business People & Community • Align reporting with the • Dedicated Board ESG Committee • Female directors represent ~30% of the recommendations of the Taskforce on Board • Continual efforts to maintain BCA Green Mark Climate-related Financial Disc
Slide 30: Keppel DC REIT Structure (as at 30 Jun 2024)
Keppel DC REIT Structure (as at 30 Jun 2024) Keppel Institutional and The REIT Manager can leverage Keppel’s global asset management platform and its strong expertise as an operator in Public Investors sustainability-related solutions spanning the areas of infrastructure, real estate and connectivit