Keppel REIT · SGX:K71U
Keppel REIT — FY2017 Earnings Presentation
28 slides from Keppel REIT's earnings presentation, Jan 23, 2018
Slide 1: Keppel REIT Full Year 2017 Financial Results
Keppel REIT Full Year 2017 Financial Results 23 January 2018
Slide 2: Outline
Outline Key Highlights 3 Financial Performance & Capital Management 4 Portfolio Review 9 Looking Ahead 17 IMPORTANT NOTICE: The past performance of Keppel REIT is not necessarily indicative of its future performance. Certain statements made in this presentation may not be based on historical informa
Slide 3: Key Highlights
Key Highlights Distributable Income $190.7 mil $ for FY 2017 Distribution per Unit 5.70 cents for FY 2017 Aggregate Leverage 38.7% as at 31 Dec 2017 All-in Interest Rate 2.62% p.a. for FY 2017 Leases Committed 829,500 sf (Attributable NLA ~377,700 sf) for FY 2017 Portfolio Committed 99.7
Slide 4: Financial Performance & Capital Management
Financial Performance & Capital Management Marina Bay Financial Centre, Singapore 4
Slide 5: Financial Performance
Financial Performance 4Q 2017 4Q 2016 FY 2017 FY 2016 Property income $44.4 mil $40.0 mil $164.5 mil $161.3 mil Net property income $36.2 mil $31.4 mil $131.2 mil $128.4 mil Share of Results of $27.4 mil $27.7 mil $115.8 mil $114.2 mil Associates and Joint Ventures Distribution to Unitholders $48.2
Slide 6: Income Contribution
Income Contribution Portfolio income contributed by existing eight office assets strategically located in the central business districts of Singapore and Australia Income Contribution* by Asset & Geography Marina Bay Financial Centre, 33.4% One Raffles 81.2% Quay, 18.8% Singapore 10.2% Australia B
Slide 7: Balance Sheet
Balance Sheet As at As at 31 Dec 2017 31 Dec 2016 % of Assets Unencumbered 84% Total assets $7,604 mil $7,535 mil Unencumbered 1 Borrowings $3,375 mil $3,329 mil Total liabilities $2,689 mil $2,637 mil Unitholders’ $4,763 mil $4,747 mil funds 16% Adjusted NAV Encumbered $1.40 $1.43 per Unit2 (1) Inc
Slide 8: Capital Management
Capital Management Commitments have been received to refinance remaining loans due in 2018 31 Dec 2017 Weighted average term to maturity Interest Coverage Ratio 4.3x of 3.4 years1 All-in Interest Rate 2.62% Debt Maturity Profile Aggregate Leverage 38.7% 25% 22% Managing interest rate exposure 20
Slide 9: Portfolio Review
Portfolio Review 8 Chifley Square, Sydney 9
Slide 10: Strategic Portfolio Enhancement
Strategic Portfolio Enhancement July 2017: Acquisition of a 50% interest in 311 Spencer Street Yield accretive: 6.4%1 Stable income stream: 30-year lease with fixed annual rental escalations Enhanced tenancy Age Under development profile: Freehold WALE 30 years upon Grade A office tower will J
Slide 11: Diversified Portfolio
Diversified Portfolio AUM Breakdown by Asset & Geography As at 31 December 2017, Keppel REIT’s S$8.5b* portfolio comprises premium Grade A Marina Bay Financial office space in Singapore and in Centre, 35.2% the key Australian cities of Sydney, Melbourne, Brisbane 87.2% One Raffles Quay, 12.8% and
Slide 12: High Portfolio Committed Occupancy
High Portfolio Committed Occupancy Maintained high committed occupancy rates which are well above market Portfolio of quality office spaces remains relevant to tenants’ changing business needs High Portfolio Committed Occupancy as at 31 Dec 2017 Singapore Australia Overall 99.6% 99.8% 99.7% 100.
Slide 13: Leasing Updates
Leasing Updates Leasing Updates for FY 2017 Committed Leases 88 ~829,500 sf -4% Leases (Attributable ~377,700 sf) Rental Reversion 95% ~5.5 years ~7.8 years Tenant Retention Portfolio WALE Top 10 Tenants’ WALE Retention Rate as at 31 Dec 2017 as at 31 Dec 2017 A total of 829,500 sf (Attributable N
Slide 14: Leasing Updates (Cont'd)
Leasing Updates (Cont’d) Of the committed leases1 signed in FY 2017, 27% are new leases, 57% are renewal leases, and 16% are rent review leases New leases committed in FY 2017 were signed with tenants from diverse sectors Majority from the TMT, banking, insurance and financial services,
Slide 15: Well-spread Lease Expiry
Well-spread Lease Expiry 22.5% of portfolio NLA due for renewal and review in 2018 19.2% of portfolio NLA are for the Singapore office leases Rents for majority number of the Singapore office leases due for renewal and review range between $8.50 to $12.00 psf Maintained well-spread leases wi
Slide 16: Diversified Tenant Base
Diversified Tenant Base Top 10 Tenants (by Attributable NLA) Profile of Tenant Base(1) Occupies 43.2% of portfolio NLA Number of Tenants: 326(2) Contributes 40.1% of gross rental income DBS 6.2% ANZ 5.7% Western Australian Govt 4.9% BNP Paribas 4.7% Telstra 4.4% Banking, insurance and financial serv
Slide 17: Looking Ahead
Looking Ahead Ocean Financial Centre, Singapore 17
Slide 18: Singapore Office Market
Singapore Office Market The general outlook for the office market remains positive, driven by improved economic prospects and a lower quantum of new supply in the mid-term. In 4Q 2017, average occupancy in the core CBD improved q-o-q to 93.8% while average Grade A office rental increased q-o-q t
Slide 19: Australia Office Market
Australia Office Market National CBD office average occupancy improved marginally q-o-q to 89.2%. Medium-term outlook has improved with the Australian Bureau of Statistics reporting strong employment growth over 2017. Organisations seeking better quality office space in the market as business
Slide 20: Commitment to Sustainability
Commitment to Sustainability Environmental, social and governance (ESG) initiatives remain an integral part in the REIT Manager’s drive towards operational excellence Sustainability Accolades in 2017: Global Real Estate Sustainability 2nd among 13 Asian listed office entities Benchmark (GRESB) 3rd
Slide 21: Operational Excellence
Operational Excellence Strategy in Action Long Term Sustainable Our goal is to generate sustainable income and Income create long-term value for Unitholders through achieving operational excellence in all that we do. Our foundation stems from: Our Strong Track Record Delivering sustainable income
Slide 22: Additional Information
Additional Information 8 Exhibition Street, Melbourne 22
Slide 23: Portfolio Overview
Portfolio Overview Best-in-Class Assets Largest Portfolio of Premium Office Assets Under Management in Strategic Locations Assets 9 quality Premium Grade and Grade A assets 3.7 million sf in the business and financial districts (1) S$8.5 billion(1) total attributable NLA of Singapore and Australia(1
Slide 24: Premium Grade A Office Portfolio
Premium Grade A Office Portfolio Singapore* 87% Ocean Financial Centre Marina Bay Financial Centre One Raffles Quay Bugis Junction Towers (99.9% interest) (33.3% interest) (33.3% interest) (100% interest) Australia* 13% 311 Spencer Street 8 Chifley Square, 8 Exhibition Street, 275 George Street, Dav
Slide 25: Portfolio Information: Singapore
Portfolio Information: Singapore Marina Bay Ocean Financial Centre One Raffles Quay Bugis Junction Towers Financial Centre (3) Attributable NLA 880,603 1,026,032 442,806 244,579 (sf) Ownership 99.9% 33.33% 33.33% 100.0% Keppel Land, ANZ, DBS Bank, Deutsche Bank, IE Singapore, Principal tenants BNP P
Slide 26: Portfolio Information: Australia
Portfolio Information: Australia David Malcolm 311 Spencer Street, 8 Chifley Square, 8 Exhibition Street, 275 George Street, Justice Centre, Melbourne Sydney Melbourne(2) Brisbane Perth (Under construction) Attributable NLA 104,138 245,954 224,693 167,784 353,318 (sf) Ownership 50.0% 50.0% 50.0% 50.
Slide 27: Keppel REIT Structure
Keppel REIT Structure Keppel Capital Keppel Land The REIT Manager can leverage The REIT Manager can leverage the scale and resources of a larger the Sponsor‘s expertise and Institutional and asset management platform track record in this industry Public Investors 100% 2.7% 43.8% 53.5% Management Act
Slide 28: Thank You
REIT Thank You