Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — Q3 2021 Earnings Presentation
21 slides from Keppel Dc Reit's earnings presentation, Oct 25, 2021
Slide 1: 3Q 2021 Operational Updates
3Q 2021 Operational Updates 25 October 2021
Slide 2: Key Highlights for 3Q 2021
Key Highlights for 3Q 2021 Robust financial performance Distributable Income1 and DPU2 for 3Q 2021 increased by 6.3% and 4.5% y-o-y respectively, supported by contributions from DPU accretive acquisitions and AEI works Resilient asset class and stable portfolio matrices provide long-term income sust
Slide 3: Value Creation with DPU Accretive Investments
Value Creation with DPU Accretive Investments Deepening footprint in Tapping into China’s Growing DPU Accretive Investment the Netherlands Digital Economy with Stable Cash Flow ▪ Strategic addition of Eindhoven Campus ▪ Maiden acquisition in the vast data centre ▪ Keppel DC REIT to subscribe for bon
Slide 4: Proposed Investment in M1's NetCo Bonds and Preference Shares
Proposed Investment in M1’s NetCo Bonds and Preference Shares Deal Structure Investment Merits $ DPU Accretive Stable & Long-term NetCo Investment Cash Flow Ordinary Shares Accretion of Stable cash flow of NetCo Bonds1 M1 ($88.7 mil) Keppel DC REIT ($1.0 mil) ($1.0 mil) 3.8% $11.0 mil4 ($89.7 mil) P
Slide 5: DPU Accretive Investment Providing Returns to Unitholders
DPU Accretive Investment Providing Returns to Unitholders ▪ Proposed investment generates sustainable returns and enhances total Unitholders’ returns, in line with the Manager’s goal to create value for Unitholders ▪ Investment will be funded by external bank borrowings and remaining cash proceeds (
Slide 6: Financial Updates
Financial Updates Steady Growth in DPU Distribution per Unit (cents) ($’000) 3Q 2021 3Q 2020 % Change 9M 2021 9M 2020 % Change 3.000 Gross +4.5% 2.462 69,341 67,666 +2.5 204,488 191,616 +6.7 2.357 Revenue 2.000 Net Property 63,781 62,370 +2.3 187,615 176,587 +6.2 Income 1.000 Distributable 43,052 40
Slide 7: Prudent Capital Management
Prudent Capital Management Debt Maturity Profile (as at 30 Sep 2021) Debt Currency Breakdown (as at 30 Sep 2021) SGD 27.3% 9.1% 6.8% EUR 50.9% Total borrowings: 22.4% 9.1% ~$1,229.5m 13.1% 10.3% 5.1% AUD 2.4% 7.8% 4.3% 4.2% 4.9% 5.4% 1.8% 1.1% RMB 6.8% 2022 2023 2024 2025 2026 2027 GBP SGD AUD GBP E
Slide 8: Business Updates
Business Updates Portfolio Updates ▪ Continued leasing momentum in 3Q 2021 with healthy renewal and expansion of leases with existing clients ▪ Completed the divestment of iseek Data Centre in Brisbane at A$34.5m in Sep 2021 at 21.5% above the IPO purchase price of A$28.4m ▪ Commenced a new 20-year
Slide 9: Diversified and Resilient Portfolio
Diversified and Resilient Portfolio Rental Income by Trade Sector Rental Income by Lease Type Top 10 Clients (for the month of Sep 2021)1 (for the month of Sep 2021)1 (for the month of Sep 2021)1 Internet Internet Enterprise 37.7% Corporate Enterprise One of the largest tech companies globally 1.8%
Slide 10: Commitment to ESG Excellence
Commitment to ESG Excellence Environmental Stewardship Responsible Business People & Community ▪ Quality and green data centres ▪ Strong corporate governance ▪ A safe and healthy workplace - Implementation of advanced energy - 5 of 7 directors are independent - Fostering an inclusive and positive ma
Slide 11: Robust and Resilient Data Centre Demand
Robust and Resilient Data Centre Demand End-user spending on public cloud services is expected to grow by 23.1% in 2021 to $332.3b, up from $270b in 20201 Hyperscale operator capex has almost tripled in 1H 2021, in tandem with revenues growing by over 30% per annum2 Strong demand for data centers in
Slide 12: Well-Positioned for Growth
Proxy to Fast-Growing Tech Sector Well-Positioned for Resilient asset class with highly defensive and Growth long-term sustainable income stream The Manager will continue Strong operational expertise and proven track record to capitalise on growth Focused and disciplined investment strategy opportun
Slide 13: 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 14: Additional Information
Additional Information CGy-T] DC REIT 4 f
Slide 15: Focused on Growing Data Centre Portfolio
Focused on Growing Data Centre Portfolio Keppel DC REIT Assets under Management $3.1b 1 • Intellicentre Campus, 19 data centres across 8 countries Sydney4 as at 30 Sep 2021 CHINA • Guangdong Data Centre, Guangdong Province Potential Data Centre Assets for Acquisitions >$2b Data centre assets under d
Slide 16: Use of Proceeds from the Private Placement
Use of Proceeds from the Private Placement Further to the announcement dated 24 Aug 2021 titled “Use of Proceeds from the Private Placement” (the Announcement), the Manager wishes to update on the use of the remaining net proceeds as at 30 Sep 2021 raised from the Private Placement (the Net Proceeds
Slide 17: Portfolio Overview (as at 30 Sep 2021)
Portfolio Overview (as at 30 Sep 2021) Attributable No. of Occupancy rate WALE Location Interest lettable area Valuation2 Lease type Land lease title clients1 (%) (years)3 (sq ft) Asia Pacific Leasehold Keppel lease / (Expiring 30 Sep 2025, Keppel DC Singapore 1 Singapore 100% 109,721 25 93.1 S$298.
Slide 18: Portfolio Overview (as at 30 Sep 2021)
Portfolio Overview (as at 30 Sep 2021) Attributable lettable No. of Occupancy Location Interest Valuation2 Lease type WALE (years)3 Land lease title area (sq ft) clients1 rate (%) Europe Cardiff, £36.5m Triple-net Cardiff Data Centre 100% 79,439 1 100.0 9.7 Freehold United Kingdom (S$65.1m) (Shell &
Slide 19: Overview of Lease Arrangements
Overview of Lease Arrangements Responsibilities of Owner Maintenan Lease Insurance Asia Pacific Property Description Building Refresh Arrangement Capex Opex Tax ce Keppel lease1 / ◼ Client: Pays rent Keppel DC Singapore 1 ✓ ✓ ✓ ✓ Colocation2 ◼ Owner: Bears all expenses; responsible for facilities ma
Slide 20: Overview of Lease Arrangements
Overview of Lease Arrangements Responsibilities of Owner Maintenance Lease Europe Description Insurance Arrangement Property Building Refresh Capex Opex Tax Cardiff Data Centre Triple-net lease ◼ Client: Pays rent and all outgoings; responsible for facilities management - - - - GV7 Data Centre Tripl
Slide 21: Keppel DC REIT Structure
Keppel DC REIT Structure as (at 30 Sep 2021) Keppel Keppel Capital Telecommunications & Transportation Institutional and The REIT Manager can leverage The REIT Manager can leverage Public Investors the scale and resources of a the Sponsor‘s expertise and track larger asset management record in this