Kore Us Reit · SGX:CMOU
Kore Us Reit — Keppel Pacific Oak US REIT — Investor Presentation (June 2022)
29 slides from Kore Us Reit's investor presentation, June 2022
Slide 1: Investor Presentation
Investor Presentation June 2022
Slide 2: Important Notice
Important Notice The past performance of Keppel Pacific Oak US REIT is not necessarily indicative of its future performance. Certain statements made in this release may not be based on historical information or facts and may be “forward-looking” statements due to a number of risks, Content Outline u
Slide 3: Overview of KORE
Overview of KORE 105 Edgeview Denver, Colorado
Slide 4: Keppel Pacific Oak US REIT (KORE)
Keppel Pacific Oak US REIT Sponsors • Keppel Capital and KORE Pacific Advisors (“KPA”) (KORE) US Asset • Pacific Oak Capital Advisors LLC, also advisor Manager for Pacific Oak Strategic Opportunity REIT First choice US office SREIT focused Manager • Keppel Pacific Oak US REIT Management Pte. Ltd. on
Slide 5: Successful Execution of Growth Strategy
Successful Execution of Growth Strategy 9 Nov 2017: Listed on SGX Jan 2019 Aug 2021 IPO with 11 office buildings Strengthened foothold in the Completed the strategic and business campuses across strong Maitland submarket acquisitions of Bridge Crossing in 7 key growth markets with acquisition of Mai
Slide 6: The Rise of the U.S. Sun Belt
The Rise of the U.S. Sun Belt The Sun Belt boom is primarily driven by exodus from high to low-tax states Sun Belt Population Growth Outperformance(3) ― Sun Belt markets in 2019 holds 50% of the 25 national population, which is expected to rise to 55% by 2030(1). 20 19 ― Sun Belt population growth e
Slide 7: KORE’s Presence In Key Growth Markets
KORE’s Presence In Key Growth Markets Popular in-migration destinations due to attractive lifestyle, culture and employment opportunities Seattle, Washington SEATTLE ❖ The Plaza Buildings ❖ Bellevue Technology Center ❖ The Westpark Portfolio #9 #9 Seattle Austin, Texas ❖ Westech 360 #4 #
Slide 8: 2021 Sustainability Achievements
2021 Sustainability Achievements Sustainability is at the core of our strategy and we are committed to delivering sustainable distributions to Unitholders LEED Gold 1 GHG 30% ✓ The Plaza Buildings Female Board Directors Emissions reduction for are female Scopes 1 and Representation ✓ Westmoor Center
Slide 9: 1Q 2022 Key Business and Operational Updates
1Q 2022 Key Business and Operational Updates Tenant lounge, 1800 West Loop South Houston, Texas
Slide 10: Financial Performance
Financial Performance Financial Highlights Distributable Income for 1Q2022 was up 10.9% year-on-year to US$16.6m 1Q 2022 1Q 2021 % due to: (US$ ’m) (US$ ’m) Change • The acquisitions of Bridge Crossing in Nashville and 105 Edgeview in Denver in Gross Revenue 37.0 34.6 6.9 August 2021. Strong balance
Slide 11: Proactive Capital Management
Proactive Capital Management 100% unsecured loans and low aggregate leverage provide greater financial flexibility As at 31 March 2022 Debt Maturity Profile Total Debt • US$567.4 million of external loans 100% of Loans Unsecured • 100% unsecured 27.3% 22.0% 21.1% Available Facilities • US$50.0 milli
Slide 12: Quality Portfolio Driven By Tech and Innovation
SEATTLE – BELLEVUE/REDMOND, Washington ATLANTA, Georgia Quality Portfolio The Plaza Buildings Bellevue Technology Center Occupancy: 95.7% The Westpark Portfolio Powers Ferry Occupancy: 67.6% Northridge Center I & II Occupancy: 78.4% Occupancy: 88.9% Occupancy: 96.8% Driven By NASHVILLE, Tennessee Te
Slide 13: Steady Income with Visible Organic Growth
Steady Income with Visible Organic Growth New Renewal Expansion New leasing demand and expansions from: ~146,768sf Leased spaces for 1Q 2022, equivalent to Professional Services(1) 41.3% 2.9% of portfolio NLA. Portfolio WALE of 21.2% 47.0% 3.7 years(3) by CRI. Finance and Insurance 33.4% Leases sign
Slide 14: Resilient Portfolio with Diversified Tenant Base
Resilient Portfolio with Diversified Tenant Base KORE’s buildings and business campuses in ~47% of KORE’s portfolio NLA comprises the tech hubs of Seattle – Bellevue/Redmond, of high-quality tenants from the growing and Austin and Denver contribute ~61% of NPI(1) defensive sectors of TAMI, medical a
Slide 15: Low Tenant Concentration Risk
As at 31 March 2022 Low Tenant Top 10 Tenants Sector Asset Location % of CRI Comdata Inc Technology Bridge Crossing Nashville 3.5 Concentration Ball Aerospace Technology Westmoor Center Denver 3.2 Seattle – Lear Cooperation Technology The Plaza Buildings 2.7 Risk Gogo Business Technology 105 Edgevie
Slide 16: Last 12 Months Rent Growth
Last 12 Months Rent Growth 0.7% Key Growth Markets Average 1.2% United States Average 0.7% Gateway Cities Average -0.1% US Average Seattle, Bellevue CBD 0.6% Seattle, Eastside Bellevue 2.6% Seattle, Redmond 2.6% Austin, Northwest 2.4% Denver, Northwest 0.9% Denver, Broomfield Nashville, Brentwood 1.
Slide 17: Projected 12-Month Rent Outlook
Projected 12-Month Rent Outlook KORE’s average in-place rents are 8.9% below asking rents, which will continue to drive organic growth Key Growth Markets Average United States Average 3.4% 3.2% 3.2% Gateway Cities Average 2.8% US Average Seattle, Bellevue CBD 3.6% Seattle, Eastside Bellevue 3.7% Sea
Slide 18: Actual Against Projected 12-Month Market Rent Growth
Actual Against Projected 12-Month Market Rent Growth Rent growth* for the last 12 months outperformed projections for KORE’s portfolio 4.0% 3.0% 3.0% 2.6% 2.6% 2.4% 1.7% 2.0% 1.0% 0.6% -0.5% 0.6% -1.0% 0.3% 0.1% 0.0% 0.9% -1.0% -1.7% -1.9% -0.9% -2.0% -2.9% -1.2% -1.6% -3.6% -2.0% -3.0% -4.0% -4.8%
Slide 19: Market Outlook
Market Outlook Iron Point Sacramento, California
Slide 20: US Economic Progression
US Economic Progression Muted economic activity in 1Q 2022 % Unemployment Rate % Labour Force Participation Rate • US real GDP decreased by 1.4% q-o-q in 16 66 1Q 2022(1). 14 65 • Unemployment rate was 3.6% in April 12 2022, down from the high of 14.8% in April 64 2020’s recession(2). In February 20
Slide 21: Positive Economics in KORE’s Key Growth Markets
Positive Economics in KORE’s Key Growth Markets KORE’s key growth markets continue to outperform national average Real GDP Percent Change at Annual Rate(1) Fourth Quarter, 2021 Key Growth Markets Average 8.9% 6.9% United States Average 6.9% US Average Gateway Cities Average 7.6% Seattle 8.3% Austin
Slide 22: Return to Office On Track to Improve
Return to Office On Track to Improve Suburban Markets Lead the Way as Tenants Target Amenity-rich Buildings ― Tenants appear to have long-term confidence in the office Texas metro areas lead in office occupancy. market as more companies are expanding their footprints than contracting(1) . Top 10 US
Slide 23: First choice US office S-REIT focused on TAMI, medical and healthcare
Strategic presence in some of the fastest growing states in the US. First choice Exposure to the fast-growing TAMI, medical and healthcare sectors provides US office S-REIT income resilience. focused on the fast-growing TAMI, medical and Highly diversified portfolio with low tenant concentration ris
Slide 24: Thank You
Thank You For more information, please visit www.koreusreit.com Connect with us on: The Plaza Building Seattle – Bellevue/Redmond
Slide 25: Additional Information
Additional Information Iron Point Sacramento, California
Slide 26: Commitment to ESG Excellence
Commitment to ESG Excellence Sustainability is at the core of our strategy and we are committed to delivering sustainable distributions to Unitholders Environmental Stewardship Responsible Business People & Community Achieve a 30% reduction for Uphold strong corporate governance, Maintain at least o
Slide 27: First Choice Submarkets Outlook
First Choice Submarkets Outlook Property Submarket Last 12M Last 12M Under Last 12M Projected Submarket Vacancy Rate Vacancy Rate Deliveries Absorption Construction Rental Growth Rental Growth Property (%) (%) (sf’000) (sf’000) (sf’000) (%) (%) Seattle, Bellevue CBD 11.1 5.7 1100 1000 4,267(1)* 0.6
Slide 28: Trust Structure
Trust Sponsors(1) Keppel Unitholders Structure KPA Keppel Capital International Capital Keppel Management Agreement Trustee Management Services Fees Keppel Pacific Oak US REIT ✓ Tax-efficient structure for holding Trustee Trustee Management Management (Manager) US properties Fees Services • No US co
Slide 29: Strong Sponsors: Keppel Capital and KORE Pacific Advisors
Strong Sponsors: Keppel Capital and KORE Pacific Advisors (2) • Asset management arm of Keppel Corporation • Established commercial real estate investment and a premier manager in Asia manager in the US • US$31 billion(1) • US$4.0 billion Global assets under management as at end-2021 Assets under ma
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