Keppel REIT · SGX:K71U
Keppel REIT — Shareholder Meeting (June 2020)
20 slides from Keppel REIT's shareholder meeting presentation, Jun 4, 2020
Slide 1: Annual General Meeting
Annual General Meeting 4 June 2020
Slide 2: Outline
Outline • Portfolio Optimisation in FY 2019 3 • 1Q 2020 & COVID-19 Review 11 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 information or facts and may be “for
Slide 3: Portfolio Optimisation in FY 2019
Portfolio Optimisation in FY 2019 T Tower in Seoul’s CBD T Tower in Seoul CBD 3
Slide 4: FY 2019 Performance Highlights
FY 2019 Performance Highlights Financial Review Portfolio Updates ▪ FY 2019 distributable income was $189.3 million(1); ▪ High portfolio committed occupancy of 99.1% FY 2019 DPU was up 0.4% y-o-y at 5.58 cents and long portfolio weighted average lease expiry (WALE) of 4.9 years ▪ Lowered aggregate l
Slide 5: Portfolio Anchored by Singapore CBD Assets
Portfolio Anchored by Singapore CBD Assets $7.9 billion portfolio in key business districts of Singapore, Australia and South Korea enhances income diversification and long-term stability T Tower, Seoul 311 Spencer Street, 99.4% Interest Melbourne South Korea 50% Interest Ocean Financial (Under deve
Slide 6: Active Portfolio Optimisation
Active Portfolio Optimisation ▪ Portfolio optimisation in FY 2019 to improve yield and create long-term value for Unitholders ▪ Holding quality assets across different markets improves income diversification and provides more growth opportunities Portfolio Optimisation in FY 2019 May 2019: Acquisiti
Slide 7: Acquisition in Seoul CBD
Acquisition in Seoul CBD ▪ Acquisition of T Tower, a freehold Grade A office building in Seoul CBD, complements Keppel REIT’s Singapore-centric portfolio ▪ The DPU-accretive acquisition with an initial NPI yield of 4.7% is part of portfolio optimisation efforts T Tower in Seoul CBD T Tower Building
Slide 8: Unlocking Value from Bugis Junction Towers
Unlocking Value from Bugis Junction Towers ▪ Sale of Bugis Junction Towers for $547.7 million(1) ($2,200 psf), which translates to a net property income yield of 3.0% ▪ Realised approximately $378.4 million(2) of capital gains while maintaining exposure to Singapore CBD ▪ Provides improved financial
Slide 9: Proactive Capital Management
Proactive Capital Management In FY 2019: Managing interest rate exposure (as at 31 December 2019) ▪ Lowered aggregate leverage to 35.8%(1) after repayment of loans with part of divestment proceeds 24% Fixed-Rate ▪ Extended weighted average term to maturity to 3.4 years(1) Borrowings Floating-Rate ▪
Slide 10: Unit Buy-Back Programme
Unit Buy-Back Programme ▪ Executed DPU-accretive Unit buy-back programme as part of proactive capital management strategy Monthly Unit Buy-Back Volume (since initiation of programme until 4Q 2019) Total Units Purchased and 23.55m Cancelled 67.1 13.56m In FY 2019 million 10.02m 7.85m Since initiation
Slide 11: 1Q 2020 and COVID-19 Review
1Q 2020 and COVID-19 Review Ocean Financial Centre lit in blue in support of the #SeeItBlue campaign that highlights importance of mental well-being and thanks frontline workers battling the COVID-19 outbreak 11
Slide 12: 1Q 2020 Key Highlights
1Q 2020 Key Highlights ▪ Distributable income was $47.3 million(1); DPU was 1.40 cents ▪ Aggregate leverage was 36.2% and all-in interest rate was 2.58% p.a. ▪ Refinanced majority of loans due in 2020 and received commitments for the remainder ▪ High portfolio committed occupancy of 98.9% and long p
Slide 13: Navigating the COVID-19 Situation
Navigating the COVID-19 Situation Keppel REIT’s properties in Singapore, Australia and South Korea AUM by Geography remain accessible to tenants that are operational during COVID-19 (As at 31 March 2020) Certain measures implemented by the Government: 3.8% 15.7% Singapore South Korea Australia ▪ Soc
Slide 14: Navigating the COVID-19 Situation (Cont'd)
Navigating the COVID-19 Situation (Cont’d) Keppel REIT’s established tenants from diversified sectors, high portfolio committed occupancy and long WALE will continue to support the REIT’s income resilience ▪ Retail and F&B sector takes up approximately 1.8% of attributable NLA, while office sub-sect
Slide 15: Navigating the COVID-19 Situation (Cont'd)
Navigating the COVID-19 Situation (Cont’d) Supporting Interests of Effective Safety as Priority All Stakeholders Capital Management • Precautionary health and safety • Tenant support measures rolled out • Refinanced majority of loans measures implemented across to support business continuity : due i
Slide 16: Prudent Capital Management
Prudent Capital Management Debt Maturity Profile (As at 31 March 2020) ▪ Healthy aggregate leverage of 36.2% and all-in interest rate of 2.58% p.a., Obtained facilities to 38% with interest coverage ratio at 3.2x(1) refinance all 2020 loans(2) $200m $75m 27% ▪ Extended weighted average term to 16% 0
Slide 17: High Occupancy and Long WALE
High Occupancy and Long WALE ▪ Portfolio committed occupancy as at end 1Q 2020 remains high at 98.9% and above market average ▪ Long overall portfolio WALE of 4.7 years; Top 10 tenants’ WALE was 6.7 years High Portfolio Committed Occupancy (As at 31 March 2020) Singapore Australia South Korea Overal
Slide 18: Well-Spread Lease Expiry Profile
Well-Spread Lease Expiry Profile ▪ Only remaining 4.9% of leases expiring and 3.9% due for rent review in 2020(1) ▪ Average expiring rents(2) of Singapore office leases (psf pm): $9.37 in 2020, $9.75 in 2021 and $10.20 in 2022 31.6% Lease Expiries and Rent Reviews 22.3% (Based on Committed Attributa
Slide 19: 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 and Optimisation to provide more long-term
Slide 20: Thank You
Thank You 8 Chifley Square, Sydney 20