Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — Q3 2016 Earnings Presentation
30 slides from Keppel Dc Reit's earnings presentation, Oct 17, 2016
Slide 1: Third Quarter & Nine Months 2016 Financial Results
Third Quarter & Nine Months 2016 Financial Results 17 October 2016
Slide 2: Important Notice
Important Notice DBS Bank Ltd. and Standard Chartered Securities (Singapore) Pte. Limited are the Joint Financial Advisers and Issue Managers to the initial public offering of Keppel DC REIT (the “Offering”). DBS Bank Ltd., Standard Chartered Securities (Singapore) Pte. Limited and Credit Suisse (Si
Slide 3: Content
Content Key Highlights Financial Review Portfolio Performance Portfolio Expansion Capital Management Outlook Additional Information 2
Slide 4: Key Highlights
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Slide 5: Key Highlights
Key Highlights $ € £ 9M 2016 Distributable Income2 Portfolio Occupancy Aggregate Leverage3 +5.3% 92.7% 29.4% higher than IPO forecast1 as at 30 Sep 2016 as at 30 Sep 2016 Annualised Distribution Yield2 Portfolio WALE Interest Coverage 7.44% 8.6 years 10.1 times 29bps higher than IPO forecast1 by l
Slide 6: Financial Review
Financial Review
Slide 7: Distributable Income: Actual vs Forecast
Distributable Income: Actual vs Forecast1 3Q 2016 3Q 2016 +/(-) 9M 2016 9M 2016 +/(-) ($’000) Actual Forecast1 % Actual Forecast1 % Distributable Income to 16,782 14,758 +13.7 46,278 43,954 +5.3 Unitholders2,3 Comprising: Gross Revenue 22,663 25,767 (12.0) 72,299 76,743 (5.8) Property Expenses 40 (3
Slide 8: Distributable Income: Year-on-Year Comparison
Distributable Income: Year-on-Year Comparison 3Q 2016 3Q 2015 +/(-) 9M 2016 9M 2015 +/(-) ($’000) Actual Actual % Actual Actual % Distributable Income to 16,782 14,480 +15.9 46,278 42,958 +7.7 Unitholders1,2 Comprising: Gross Revenue 22,663 25,743 (12.0) 72,299 77,698 (6.9) Property Expenses 40 (4,3
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights As at As at +/(-) 30 Sep 2016 31 Dec 2015 % ($’000) ($’000) Investment Properties 1,107,364 1,102,685 +0.4 Total Assets 1,190,022 1,211,171 (1.7) Gross Borrowings1 340,018 341,848 (0.5) Total Liabilities 404,144 397,683 +1.6 Unitholders’ Funds 785,484 813,114 (3.4) Units in
Slide 10: Aggregate Leverage
Aggregate Leverage As at As at +/(-) 30 Sep 2016 31 Dec 2015 % ($’000) ($’000) Investment Properties1 1,076,037 1,071,358 +0.4 (excluding finance lease liabilities commitments) Total Assets1 1,158,301 1,179,470 (1.8) (excluding finance lease liabilities commitments) Gross Borrowings + Deferred Payme
Slide 11: Portfolio Performance
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Slide 12: Portfolio Update
Portfolio Update Improvement in portfolio’s occupancy rate to 92.7% and weighted average lease expiry (WALE) healthy at 8.6 years1 Renewed a major contract that expired in August 2016 in one of the Singapore Properties for more than five years Lease expiry profile1 As at 30 September 2016 71.6%
Slide 13: Favourable Client Profile & Lease Mix
Favourable Client Profile & Lease Mix Rental income breakdown Rental income breakdown by trade sector by lease type For the month of September 2016 For the month of September 2016 Corporate IT services 3.9% 36.5% Shell & Lease Type WALE1 Core, Financial 6.1% services Colocation, Colocation 3.3 years
Slide 14: Portfolio Expansion
Portfolio Expansion
Slide 15: Geographical Diversification
Geographical Diversification Ireland Assets Under Management (AUM) Keppel DC Dublin 1 (f.k.a. Citadel 100 Data Centre) United Kingdom ~$1.14b1 as at 6 October 2016, comprising GV7 Data Centre, London Cardiff Data Centre 10 data centres in 6 countries The Netherlands (excludes maincubes Data Centre a
Slide 16: Portfolio Growth: Foray into Italy
Portfolio Growth: Foray into Italy Expanding data centre footprint in Europe with first Italian investment Acquiring the shell and core of a data centre in Milan, Italy Enhanced the REIT’s income stream stability with a 12-year double-net lease that includes annual rental escalations and a six
Slide 17: Portfolio Growth: Acquisition in Europe
Portfolio Growth: Acquisition in Europe Maintains portfolio growth momentum with the REIT’s fourth acquisition since listing Acquisition of a shell and core data centre in Cardiff, the capital city of Wales Fully leased to one of the largest global cloud service providers on a 15-year triple-n
Slide 18: Capital Management
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Slide 19: Proactive Capital Management
Proactive Capital Management Hedging of borrowing costs As at 30 September 2016 Un- Managing interest rate exposure: hedged 14% Locked in interest rates of the long-term loans by entering into floating-to-fixed interest rate swaps Hedged 86% As at 30 September 2016 Debt maturity profile As at 30
Slide 20: Proactive Capital Management (Cont'd)
Proactive Capital Management (Cont’d) Mitigating impact of currency fluctuations: Hedged the REIT’s foreign-sourced distribution up to 1H 2018 using foreign currency forward contracts Adopted natural hedging by borrowing in currencies that match the corresponding investments Debt currency brea
Slide 21: Outlook
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Slide 22: Three-Pronged Strategy
Three-Pronged Strategy Data centre industry continues to be driven by positive global trends such as cloud computing “Cloud adoption acceleration will double the size of the data centre industry over the next five years,” Jones Lang LaSalle1 The Manager will maintain its three-pronged strategy
Slide 23: Committed to Deliver Value
Committed to Deliver Value Active capital management High growth industry with Established significant track record barriers to entry Strategic location in key data centre hubs Strong global clientele To provide Unitholders with regular and stable distributions, and to achieve long-term growth in DP
Slide 24: Additional Information
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Slide 25: Keppel DC REIT Structure
Keppel DC REIT Structure Keppel Institutional and Keppel Capital Telecommunications Keppel Land Public Investors & Transportation 50% 50% 30.1% 4.9% 65.0% Management Acting on behalf services of Unitholders REIT Manager Trustee Management Keppel DC REIT Trustee’s fees fees Keppel DC REIT Perpetual (
Slide 26: Portfolio Overview
Portfolio Overview Asia Pacific Lettable area No. of Occupancy Carrying Value(4,5) WALE(5) Property Location Interest Lease type Land lease title (sq ft) clients(1,5) rate(5) (%) ($m) (years) Leasehold (Expiring 30 Keppel DC Keppel lease / 3.3 Singapore 100% 109,711 20 87.6 292.9 September 2025, Sin
Slide 27: Portfolio Overview (Cont'd)
Portfolio Overview (Cont’d) Europe Lettable No. of Occupancy Carrying Value(5,6) WALE(6) Property Location Interest area Lease type Land lease title clients(1,6) rate(6) (%) ($m) (years) (sq ft) London, Triple-net Leasehold (Expiring GV7 Data Centre United 100% 24,972 1 100.0 66.7 10.4 (Fully fitted
Slide 28: Overview of Lease Arrangements
Overview of Lease Arrangements Asia Pacific Responsibilities of Lessor / Owner Management Maintenance Maintenance Lease Day-to-day Insurance Property Description Property Facilities Building Arrangement Refresh Capex Opex Tax Keppel DC Singapore 1 Keppel lease(1) / Client: Pays cost of rent and al
Slide 29: Overview of Lease Arrangements (Cont'd)
Overview of Lease Arrangements (Cont’d) Europe Responsibilities of Lessor / Owner Management Maintenance Maintenance Lease Day-to-day Insurance Property Description Property Facilities Building Arrangement Refresh Capex Opex Tax GV7 Data Centre Triple-net lease Client: Pays all outgoings; responsi
Slide 30: Thank you.
Thank you. KG y-y-1) DC REIT 29