Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — Q1 2024 Earnings Presentation
26 slides from Keppel Dc Reit's earnings presentation, Apr 19, 2024
Slide 1: 1Q 2024 Operational Updates
1Q 2024 Operational Updates 19 April 2024
Slide 2: Outline
Outline Key Highlights 3 Financial Updates 9 Portfolio Updates 12 Additional Information 18 Constituent of: Awards and Certifications: FTSE EPRA Nareit MSCI Singapore GPR 250 Global Developed Index Small Cap Index Index Series 1 2 1. The use by Keppel DC REIT of any MSCI ESG Research LLC or its affi
Slide 3: Key Highlights
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Slide 4: Key Highlights
Key Highlights Resilient Organic Growth Through Positioned for Growth Performance Proactive Management Through Acquisitions Distributable Income1 Portfolio Occupancy Potential Assets for Acquisitions $38.8m 98.3% >$2b for 1Q 2024. Positive reversions and escalations as at 31 Mar 2024. Data centre as
Slide 5: Unlocking Value from Intellicentre Campus
Unlocking Value from Intellicentre Campus 1 Opportunistic divestment to unlock value and optimise Unitholder returns Opportunistic divestment at 148.6% premium to 35.4% premium to attractive price of A$174.0m; original investment FY2023 valuation 3.6% exit cap rate of ~A$70.0m of A$128.5m 2 Retain e
Slide 6: Opportunistic Divestment at Attractive Sale Price
Intellicentre Campus, Sydney, Australia 1 Opportunistic Divestment at Attractive Sale Price A$174.0m A$128.5m FY 2023 Valuation Divestment Price A$174.0m Proactive asset management strategy to unlock value & optimise Unitholder returns A$70.0m • Exit cap rate of ~3.6% • Unique opportunity to realise
Slide 7: Retain Exposure to Australia Data Centre Market
2 Retain Exposure to Australia Data Centre Market • A$90.0m1 reinvested into Australia Data Centre Note (AU DC Note) issued by Macquarie Data Centres Group (MDC)1 • Regular income stream commencing at A$6.3m p.a., initial yield of 6.97%, with annual CPI-linked escalation for a term of 8.5 years • Po
Slide 8: DPU Accretion of 0.7%
3 DPU Accretion of 0.7% • FY 2023 pro forma DPU will increase from 9.383 cents to FY 2023 Pro Forma 9.446 cents, had the proposed transactions occurred on Distribution Per Unit (cents)1 1 Jan 2023 • Post-transactions, portfolio profile continues to be 9.446 supported by high occupancy of 98.1% and l
Slide 9: Financial Updates
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Slide 10: Resilient Financial Performance
Resilient Financial Performance Distributable Income ($’000)1 Distribution Per Unit (cents)2 2.541 • Improved quarter-on-quarter performance 46,344 38,791 2.192 32,517 1.840 • Higher gross revenue in 1Q 2024 mainly due to settlement sum received in relation to the dispute with DXC and positive rever
Slide 11: Favourable Debt Profile
Favourable Debt Profile Key Metrics As at 31 Mar 2024 Change from 31 Dec 2023 Floating 27% Aggregate Leverage1 37.6% +20 bps Fixed Average Cost of Debt2 3.5% (1Q 2024) -10bps 73% Debt Weighted Average Debt Tenor 3.2 years -0.2 years Weighted Average Hedge Tenor 2.9 years -0.2 years Interest Coverage
Slide 12: Portfolio Updates
LG yt] DC REIT ££ Updates 7
Slide 13: Optimising Portfolio Performance
Optimising Portfolio Performance Optimal Mix of Contract Types High Portfolio Occupancy 98.3% 1 Contract Type % of Rental Income3 WALE4 (years) Colocation 65.1% 1.8 Long Portfolio WALE 7.4 years Fully-fitted 23.2% 10.9 2 Shell and Core 11.7% 7.1 Secured new and renewal contracts with Well-Spread Exp
Slide 14: Diversified Global Client Base
Diversified Global Client Base • Majority of rental income is derived from clients with investment grade or equivalent credit profiles Rental Income by Trade Sector1 Rank Top 10 Clients Trade Sector Rental Income1 1 Fortune Global 500 Company (Hyperscaler) Internet Enterprise 34.7% 2 Government-link
Slide 15: Capitalising on Positive Industry Trends
Capitalising on Positive Industry Trends • The continued transition to the cloud, growth in the Internet of Things, increasing data sovereignty regulations, and the expanding amount of data being generated are fuelling the demand for data centres globally1 • Asia Pacific’s artificial intelligence (A
Slide 16: Diversified Global Portfolio with Strong Asia Pacific Presence
Diversified Global Portfolio with Strong Asia Pacific Presence Keppel DC REIT Assets under Management $3.7b1 23 data centres across 9 countries as at 31 Mar 2024. AUM Breakdown (as at 31 Mar 2024)1 Asia Pacific 71.8% Europe 28.2% Singapore 55.6% Germany 6.7% Australia 8.4% Ireland 8.2% China 7.4% It
Slide 17: 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 18: Additional Information
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Slide 19: Driving Portfolio Growth and Creating Value
Driving Portfolio Growth and Creating Value AUM: $3.6b London Data 22 assets Intellicentre 3 Centre across 9 East Data Centre1 countries Keppel DC DC1 Singapore 3 Guangdong Data Keppel DC Eindhoven Centres 2 & 3 Keppel DC Campus Dublin 12 Keppel DC Singapore 4 Intellicentre 2 Dublin 2 20244 Data Cen
Slide 20: Portfolio Overview (as at 31 Mar 2024) - Asia Pacific
Portfolio Overview (as at 31 Mar 2024) Attributable Land lease No. of Occupancy WALE Interest lettable area Valuation2 Lease type Land lease title remaining Clients1 rate (%) (years)3 (sq ft) (years) Asia Pacific Leasehold Keppel DC Singapore 1, Keppel lease / 100% 109,721 23 85.6 S$339.7m 1.8 (Expi
Slide 21: Portfolio Overview (as at 31 Mar 2024) - Europe
Portfolio Overview (as at 31 Mar 2024) Attributable Land lease No. of Occupancy WALE Interest lettable area Valuation2 Lease type Land lease title remaining Clients1 rate (%) (years)3 (sq ft) (years) Europe Kelsterbach Data Centre, €56.2m Triple-net 100% 540,869 1 100.0 1.8 Freehold - Kelsterbach, G
Slide 22: Overview of Contractual Arrangements - Asia Pacific
Overview of Contractual Arrangements Responsibilities of Owner Insurance Maintena Contractual Property Asia Pacific Description Building Refresh Arrangement Capex Opex Tax nce Keppel lease1 / • Client: Pays rent Keppel DC Singapore 1 Colocation2 • Owner: Bears all expenses; responsible for f
Slide 23: Overview of Contractual Arrangements - Europe
Overview of Contractual Arrangements Responsibilities of Owner Insurance Maintena Contractual Property Europe Description Building Refresh Arrangement Capex Opex Tax nce Kelsterbach Data Centre Triple-net lease • Client: Pays rent and all outgoings; responsible for facilities management - - - - main
Slide 24: 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 Singapore colocation assets by 2025 and obtain contribute to Keppe
Slide 25: ESG Highlights
ESG Highlights Environmental Stewardship Responsible Business People & Community • Further progress in 2023 to • Dedicated Board ESG Committee • Female directors represent ~30% of the adopt Taskforce on Climate-related Board • Continual efforts to maintain BCA Green Mark Financial Disclosures (TCFD)
Slide 26: Keppel DC REIT Structure (as at 31 Mar 2024)
Keppel DC REIT Structure (as at 31 Mar 2024) Keppel Institutional and The REIT Manager can leverage Keppel’s global asset management platform and its strong expertise as an operator in Public Investors sustainability-related solutions spanning the areas of infrastructure, real estate and connectivit