Keppel REIT · SGX:K71U
Keppel REIT — Shareholder Meeting (April 2023)
17 slides from Keppel REIT's shareholder meeting presentation, Apr 21, 2023
Slide 1: Annual General Meeting
Annual General Meeting 21 April 2023
Slide 2: Outline
Outline Constituent of: ▪ FY 2022 in Review 3 FTSE ST Large & FTSE4GOOD Mid Cap Index Developed & FTSE4GOOD ASEAN 5 Index ▪ 1Q 2023 Update 9 FTSE EPRA Nareit Global Developed Index IMPORTANT NOTICE: The past performance of Keppel REIT is not necessarily indicative of its future performance. Certain
Slide 3: FY 2022 in Review
FY 2022 in Review Marina Bay Financial Centre, Singapore 3
Slide 4: FY 2022 Key Highlights
FY 2022 Key Highlights Higher Prudent Capital Strong Operating Distribution Management Metrics Distribution to Unitholders Aggregate Leverage High Portfolio Occupancy $220.9 million 38.4% 96.3% Up 4.1% y-o-y As at 31 Dec 2022 As at 31 Dec 2022 Long Portfolio WALE Distribution Per Unit All-in interes
Slide 5: Strategic Entry into Japan: Acquisition of KR Ginza II
Strategic Entry into Japan: Acquisition of KR Ginza II ✓ Strategic entry into Japan, largest developed market in Asia with strong office fundamentals ✓ A quality freehold boutique office building • Located in Chuo ward, one of Tokyo’s core 5 wards • Enjoys excellent connectivity, within walking dist
Slide 6: Well-Executed Portfolio Optimisation Strategy
Well-Executed Portfolio Optimisation Strategy Will be distributing a total $100m of Anniversary Distribution out of capital gains that were accumulated through well-executed portfolio optimisation strategy Expanded footprint Expanded footprint to Australia: Expanded footprint to Japan: 77 King Stree
Slide 7: Advancing ESG Agenda
Advancing ESG Agenda Environmental Responsible People and Stewardship Business Community All Singapore assets have 16.8% reduction in Scope 1 and 2 Established Board ESG achieved the WELL Health-Safety emissions1 Committee in Sep 2022 rating 100% of Keppel REIT’s 28.7% reduction in water Achieved 30
Slide 8: Sustainable and Future Ready Portfolio with ESG Excellence
ESG Benchmarks Sustainable and • MSCI ESG Rating maintained at ‘A’ Future Ready • ISS Governance Risk Rating maintained at lowest risk level of “1” and ESG Corporate Rating maintained at “Prime” status Portfolio with ESG • Global Real Estate Sustainability Benchmark (GRESB) – Green Star status; ‘A’
Slide 9: 1Q 2023 Update
1Q 2023 Update Keppel Bay Tower, Singapore 9
Slide 10: Diversified Portfolio of Prime Commercial Assets in Asia Pacific
Diversified Portfolio of Prime Commercial Assets in Asia Pacific $9.1b portfolio of prime quality assets anchored across different markets enhance income stability and long-term growth opportunities T Tower, Seoul KR Ginza II, Tokyo 98.5% Interest 99.4% Interest South Korea Japan Occupancy: 96.1% Oc
Slide 11: 1Q 2023 Key Highlights
1Q 2023 Key Highlights A Resilient Portfolio of Strong Operating Prudent Capital Metrics Management Prime Commercial Assets Anchored in key business districts of High Portfolio Occupancy Healthy Aggregate Singapore, Australia, South Korea and 96.3% Leverage Japan As at 31 March 2023 38.7% As at 31 M
Slide 12: Stronger NPI Supported by Healthy Operational Performance
Stronger NPI Supported by Healthy Operational Performance ▪ 1Q 2023 NPI was 1.3% higher year-on-year due to higher rentals achieved on leases committed in 2022 and higher portfolio occupancy of 96.3% as at 31 March 2023 as compared to 95.1% as at 31 March 2022 ▪ 1Q 2023 Distributable Income from Ope
Slide 13: Prudent Capital Management
Prudent Capital Management As at 31 Mar 2023 Interest Coverage Ratio(2) 3.7x ▪ Aggregate leverage maintained at a healthy 38.7% Adjusted Interest Coverage Ratio(3) 3.2x All-in Interest Rate 2.86% p.a. ▪ 75% of borrowings are on fixed rates Aggregate Leverage 38.7% ▪ AUD, KRW and JPY denominated loan
Slide 14: 1Q 2023 Portfolio Performance
1Q 2023 Portfolio Performance Leases Committed Leases Committed As at 31 Mar 2023: (1) (1) by Geography by Type Singapore, Renewal, 96.3% 75.7% New, 100.0% 24.3% Portfolio committed occupancy 10.3 years New leasing demand and expansions from: Top 10 tenants’ WALE Total Leases Committed Banking, insu
Slide 15: Well-spread Lease Expiry Profile
Well-spread Lease Expiry Profile ▪ Average signing rent for Singapore office leases(1) concluded in 1Q 2023 was $12.05 psf pm, reflecting steady demand for prime office space ▪ Average expiring rents of Singapore office leases(2)(psf pm): $11.66 in 2023, $11.04 in 2024 and $11.13 in 2025 Lease Expir
Slide 16: Blue & William Achieved Practical Completion
Blue & William Achieved Practical Completion ▪ Blue & William achieved practical completion on 3 April 2023 and will start contributing income ▪ Secured first anchor tenant, Equifax, in December 2022 ▪ The developer is providing a three-year rental guarantee on unlet space from practical completion
Slide 17: Thank You
Thank You Ocean Financial Centre, Singapore 17 Photo Credit: Central Narcotics Bureau