Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — Investor Presentation (December 2024)
27 slides from Keppel Dc Reit's investor presentation, December 2024
Slide 1: Investor Presentation Dec 2024
Investor Presentation Dec 2024
Slide 2: Outline
Outline 1. Key Highlights 4. Capital Management 2. Financial Updates 5. Outlook 3. Portfolio Updates 6. Additional Information Constituent of: Awards and Certifications: FTSE EPRA Nareit Global MSCI Singapore GPR 250 Developed Index Small Cap Index Index Series 1 2 Image.png 1. The use by Keppel DC
Slide 3: Key Highlights
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Slide 4: AI-Ready Hyperscale Data Centres within a Campus in Singapore
AI-Ready Hyperscale Data Centres within a Campus in Singapore Proposed acquisition of 2 colocation data centres in Singapore for an agreed property value of $1.38 billion1 Artificial Intelligence (AI) Inference Ready 100% Contracted to Global Hyperscalers2 Excellent Connectivity to Key Network Infra
Slide 5: Key Investment Merits of Proposed Shares and Notes Transactions
Key Investment Merits of Proposed Shares and Notes Transactions1 AI-Ready Hyperscale Data AI Inference Ready Exposure to Singapore Market Increased from 53.1% to Centres, Strengthening Foothold in Singapore Flexibility to adopt liquid cooling 65.5%2 1H 2024 Pro Forma DPU Pro Forma DPU accretion DPU
Slide 6: Financial Updates
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Slide 7: Sustainable Financial Performance
Sustainable Financial Performance 3Q 2024 vs 2Q 2024 Distributable Income ($’000)1 Distribution Per Unit (cents)2 • Higher DI and DPU underpinned by strong reversions including reversion of >40% for a major Singapore contract renewal in 3Q 2024 as part of the Keppel leases 43,876 42,087 44,719 2.492
Slide 8: Portfolio Updates
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Slide 9: Robust Portfolio Performance
Robust Portfolio Performance High Portfolio Occupancy Continued strong reversion of >40% 97.6%1,3 • 7th consecutive quarter of positive reversions, including a >40% reversion for a major contract renewal in Singapore in 3Q 2024 Healthy Portfolio WALE • Capitalise on sound fundamentals and structural
Slide 10: Staggered Contract Expiry Profile
Staggered Contract Expiry Profile as at 30 Sep 2024 By Lettable Area By Rental Income 53.5% 47.0% 26.0% 20.9% 11.5% 10.1% 7.7% 5.1% 5.0% 5.7% 4.8% 2.7% 2024 2025 2026 2027 2028 ≥2029 2024 2025 2026 2027 2028 ≥2029 Colocation 2.7% 4.7% 2.7% 1.3% 0.8% 4.0% Colocation 11.5% 18.1% 9.3% 2.8% 1.9% 23.8% F
Slide 11: Diversified Global Client Base
Diversified Global Client Base • Majority of rental income is derived from clients with investment grade or equivalent credit profiles Top 10 Clients3 Trade Sector Rental Income1 Rental Income by Trade Sector1 Fortune Global 500 Company (Hyperscaler) Internet Enterprise 42.0% Internet Enterprise 50.
Slide 12: Capital Management
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Slide 13: Agile Financial Management
Agile Financial Management Key Metrics As at 30 Sep 2024 Change from 30 Jun 2024 Aggregate Leverage1 39.7% +390 bps 3.3% (3Q 2024) -20 bps Average Cost of Debt2 3.4% (YTD) -10 bps Weighted Average Debt Tenor 3.4 years +0.3 years Weighted Average Hedge Tenor 2.9 years +0.2 years Interest Coverage Rat
Slide 14: Favourable Debt Profile
Favourable Debt Profile as at 30 Sep 2024 Proportion of Fixed to Floating Loans Debt Maturity Profile Floating Fixed 29% 4.7% 71% 5.1% Debt 7.8% 0.6% 1.6% 3.6% 5.5% • A 50 bps change would have a ~1.4%1 impact 6.3% 22.3% to 3Q 2024’s DPU on a pro forma basis 13.2% 8.0% 9.3% 1.2% 6.3% 4.5% Debt Curre
Slide 15: Outlook
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Slide 16: Continued Growth of Data Centres
Continued Growth of Data Centres • The data centre sector is experiencing significant growth globally, driven by an increasing digital transformation and adoption of technologies, including generative AI. Demand from cloud service providers (CSPs) continues to underpin colocation demand. In 1Q 2024,
Slide 17: Diversified Global Portfolio with Strong Asia Pacific Presence
Diversified Global Portfolio with Strong Asia Pacific Presence KEPPEL’S ASSETS • • • • SINGAPORE CHINA INDONESIA JAPAN • THE NETHERLANDS Keppel DC REIT Assets under Management • Keppel DC Singapore 7 • Keppel DC Singapore 8 S$5.2b1 25 data centres across 10 countries AUM Breakdown1 Asia Pacific 80.2
Slide 18: Thank you
Thank you For more information, please visit: www.keppeldcreit.com Connect with us on: Linkedin - Free social media icons 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
Slide 19: Additional Information
06 Additional Information 19
Slide 20: Keppel DC REIT's AUM has Quintupled Since IPO
Keppel DC REIT’s AUM has Quintupled Since IPO AUM: $5.2b2,3 25 assets across 10 countries ~16% CAGR 1 3.7 3.7 3.4 AUM: $1.0b 8 assets 3.0 across 6 2.6 countries 2.0 1.5 1.2 1.1 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1. Divested iseek Data Centre in Australia in Sep 2021. 2. Divested
Slide 21: Portfolio Overview (as at 30 Sep 2024)
Portfolio Overview (as at 30 Sep 2024) Attributable Attributable Land lease No. of WALE Property Age Interest lettable area Occupancy rate (%) gross Valuation3 Lease type Land lease title remaining Clients1 (years)4 (years) (sq ft) revenue2 (years) Asia Pacific Leasehold ~27 Keppel DC Singapore 1, K
Slide 22: Portfolio Overview (as at 30 Sep 2024)
Portfolio Overview (as at 30 Sep 2024) Attributable Attributable Land lease No. of Occupancy WALE Property Age Interest lettable area gross Valuation3 Lease type Land lease title remaining Clients1 rate (%) (years)4 (years) (sq ft) revenue2 (years) Europe Kelsterbach Data Centre, €56.2m Triple-net 1
Slide 23: Overview of Contractual Arrangements
Overview of Contractual Arrangements Responsibilities of Owner Maintenance Contractual Insurance Asia Pacific Description Property Arrangement Building Refresh Capex Opex Tax Keppel lease1 / • Client: Pays rent Keppel DC Singapore 1 ✓ ✓ ✓ ✓ Colocation2 • Owner: Bears all expenses; responsible for fa
Slide 24: Overview of Contractual Arrangements
Overview of Contractual Arrangements Responsibilities of Owner Maintenance Contractual Europe Description Insurance Arrangement Property Building Refresh Capex Opex Tax Kelsterbach Data Centre Triple-net lease • Client: Pays rent and all outgoings; responsible for facilities management - - - - mainc
Slide 25: ESG Targets and Commitments
ESG Targets and Commitments Environmental Stewardship Responsible Business People & Community Align reporting with the Obtain and maintain green certification for all Engage with local communities and recommendations of the Taskforce on Singapore colocation assets by 2025 and obtain contribute to Ke
Slide 26: ESG Highlights
ESG Highlights Environmental Stewardship Responsible Business People & Community • Align reporting with the • Dedicated Board ESG Committee • Female directors represent ~30% of the recommendations of the Taskforce on Board • Continual efforts to maintain BCA Green Mark Climate-related Financial Disc
Slide 27: Keppel DC REIT Structure (as at 30 Sep 2024)
Keppel DC REIT Structure (as at 30 Sep 2024) Keppel Institutional and The REIT Manager can leverage Keppel’s global asset management platform and its strong expertise as an operator in sustainability- Public Investors related solutions spanning the areas of infrastructure, real estate and connectivi
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