Kore Us Reit · SGX:CMOU
Kore Us Reit — Keppel Pacific Oak US REIT — Nomura Global Real Estate Forum 2021
33 slides from Kore Us Reit's conference presentation, Feb 26, 2021
Slide 1: Nomura Global Real Estate Forum
Nomura Global Real Estate Forum 26 February 2021 Keppel
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, uncertainties and
Slide 3: Overview
Overview Tenant lounge The Westpark Portfolio Redmond, Seattle, Washington
Slide 4: About Keppel Pacific Oak US REIT (KORE)
Tenant lounge, Bellevue Technology Center, Bellevue, Seattle, Washington About Keppel Pacific Oak US REIT (KORE) Distinctive US office REIT focused on key growth markets with positive economic and office fundamentals that generally outpace that of the US national average, as well as the average of t
Slide 5: KORE Strengths
KORE Strengths Exposure to egrowth and defensive sectors of technology and healthcare Tech focused markets of Seattle - Bellevue/Redmond, Austin and Denver contribute ~63% of NPI, Highly ¢ diversified portfolio with low tenant concentration risk Top 10 tenants contribute only 20.2% of portfolio cash
Slide 6: Steady Growth Since IPO
Steady Growth Since IPO Distributable Income (USS million) 58.6 9 Nov Jan FY 50.8 2017 2019 2019 38.6 29.5 Listed on SGX Acquired Maitland Portfolio value: US$1.26b 26.0 Portfolio value: US$0.83b Promenade I in Orlando, 13 office buildings and Eas . . a Florida, and strengthened business campuses ac
Slide 7: Key Growth Markets Driven by Tech and Innovation
Key Growth Markets driven by Tech and Innovation SEATTLE - BELLEVUE/REDMOND, Washington ATLANTA, Georgia i yl Beer 3 . | : 4 BF : = Overview L . = 7 7 adi The Plaza Bellevue Technology The Westpark Powers Ferry Northridge 13 freehold office buildings Buildings Center Portfolio Occupancy: 88.8% Cente
Slide 8: Resilient and Highly Diversified Portfolio
Resilient and Highly Diversified Portfolio KORE’s buildings and business campuses in the tech hubs of Seattle - Bellevue/Redmond, Austin and Denver contribute ~63% of NPI fe) High quality and diverse tenants from the growing and defensive sectors of technology, | as well as medical and healthcare Ge
Slide 9: Low Tenant Concentration Risk
Low Tenant Concentration Risk Top 10 tenants contribute only 20.2% of CRI, and majority are from the fast-growing tech sectors As at 31 December 2020 Top 10 Tenants Sector Asset % of CRI Ball Aerospace Technology Westmoor Center 3.3 Lear Technology The Plaza Buildings 2.8 Oculus VR Technology The We
Slide 10: Performance FY2020
FY2020 Performance Tenant space at The Westpark Portfolio Redmond, Seattle, Washington
Slide 11: Continued Growth Despite the COVID-19 Pandemic
Continued Growth Despite the COVID-19 Pandemic | if Lobby, One Twenty Five, Dallas, Texas DI of US$58.6 million for FY 2020 was 15.4% higher y-o-y, driven by contributions from Twenty Five and higher rental income e rest of the portfolio (1) (2) (3) FY 2020 FY 2019 (US$’000) (US$’000) Gross Revenue
Slide 12: Robust Financial Position
Robust Financial Position Low aggregate leverage and 100% unsecured loans provide greater financial flexibility As at 31 December 2020 Debt Maturity Profile Total Debt Available Facilities Aggregate Leverage") All-in Average Cost of Debt?) Interest Coverage’) Average Term to Maturity . USS505.7 mill
Slide 13: • • • • • • • • 29.1% 28.8% 17.1% 17.1% 15.5% 15.2%
• • • • • • • • 29.1% 28.8% 17.1% 17.1% 15.5% 15.2% 13.7% 12.9% 13.2% 12.5% 13.5% 11.4%
Slide 14: Business Continuity and Strength Through the Pandemic
Business Continuity and Strength Through the Pandemic Y Strong rent collection is testament to KORE’s portfolio and tenant quality ] r =| 1] * Collected ~99% of rents in FY 2020, and ~99% for 4Q 2020") bt * 100% of rent collected from top 10 tenants * ~0.8% impact on FY 2020 NPI as a result of rent
Slide 15: Projected 12-Month Rent Outlook
Projected 12-Month Rent Outlook KORE’s average in-place rents are ~8% below asking rents, which will continue to drive growth -0.3% US Average Key Growth Markets Average United States Average Gateway Cities Average Seattle, Bellevue CBD Seattle, Eastside Bellevue Seattle, Redmond Austin, Northwest D
Slide 16: 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 The Plaza Buildings 6.6 19 7 (456
Slide 17: Market Outlook
Market Outlook Tenant space, Westmoor Center Denver, Colorado Ly ys | 4
Slide 18: US Economy at a Glance
US Economy at a Glance Recovery apace with continued resumption of economic activity in Q3 2020 US Real GDP increased 4.0% q-o-q in 4Q 2020, following a 31.4% q-o-q decline % GDP Growth in 2Q 20200 40 Unemployment rate was 6.3% in January 30 2021, down from its peak of 14.8% in 20 April 20202) Labou
Slide 19: The Great American Move
The Great American Move Demographic trends accelerated by COVID-19 favour suburban locations due to logistical barriers and concerns over mass transit 2020 City Inflows and Outflows™ Top Cities Gaining Top Cities Losing 1. Austin, TX 2. Phoenix, AZ 3. Nashville, TN 4. Tampa, FL 5. Jacksonville, FL 6
Slide 20: 2021 Rankings for Overall State Taxes
2021 Rankings for Overall State Taxes Lower overall tax rates in KORE’s key growth markets vs gateway cities ings Best Overall State Rankings' 22 44 r] Florida a 4 Texss 11 Washington) a 16 Colorado ee 21 Georgia Massachusetts Illinois Washington DC Connecticut New York 49 50 California‘? Worst New
Slide 21: Increased Mobility is Driving Corporate Relocations
Increased Mobility is Driving Corporate Relocations * Accelerated by COVID-19, increased mobility is driving corporate relocations to states such as Texas and Florida for their tax and lifestyle advantages @ * Hewlett Packard Enterprise is moving its HQ from Silicon Valley, California to Springwood,
Slide 22: Spotlight on: Seattle - Bellevue/Redmond
Spotlight on: Seattle - | fe: Bellevue/ se Redmond f Tenant lounge, A The Westpark Portfolio, Redmond, Seattle, Washington
Slide 23: Seattle to Outperform in Employment and GDP Growth
Seattle to Outperform in Employment and GDP Growth US Projected GDP & Employment Growth 2020-2024! 12% Phoenix 1.0% e Dallas Houston Orlando S 0.8% Charlotte ® ® Denver & ee 5 ses Afenta 5 Dic. oe . 2 Miami /San Diego Bom US. Avg. oe 8 3 Los Angeles 2 Kansas City __*Boston 5 oz e “Battimoree Migneap
Slide 24: Tech Markets Poised for Further Growth
Tech Markets Poised for Further Growth Top 20 Major U.S. Metros - GDP Growth, 2020-2024) San Jose Austin Dallas Seattle Raleigh San Francisco Nashville Jacksonville Denver Phoenix San Antonio Charlotte Salt Lake City Tampa Portland Atlanta Orlando Boston Houston Louisville United States * KORE’s tec
Slide 25: Tech to Lead Office Recovery
Tech to Lead Office Recovery Over the last decade, the tech sector has become the core driver of economic growth in the US New office leasing in I in r (previ 12 month. Sq.Ft. (Millions) 0.0 05 10 15 20 25 30 35 40 45 + As the world accelerates . . . towards a tech-driven Technology (Software, Inter
Slide 26: Tech Firms Led Some of the Largest Leases Signed in 2020
Tech Firms Led Some of the Largest Leases Signed in 2020 * Bought REI’s 400,000 sf HQ in Sep 2020, ding it Bloomberg facebook fiieen . sfHQ in Sep expanding Its Technology Bellevue, Seattle area footprint to over 3 million sf” _ a Facebook Buys REI Sees notes eseaneamss4afe ulema Headquarter, Showin
Slide 27: KORE to benefit from Eastside Bellevue/Redmond Tech Growth
KORE to benefit from Eastside - Bellevue/Redmond Tech Growth Tech Percentage of Total Office Occupancy in Seattle” KIRKLAND REDMOND “4 | _ Caz PE wir Coy e 89% 51% ee eoe Tech Office Ocupied Millions (Sq. Ft.) yn Rk ao @ SK Lote Urion TT Denny Regrade I = Seorle (BD [NN ® Pioneer Squore s Conal GS 2
Slide 28: Committed to Deliver Long-Term Value
Highly diversified portfolio with tenants from high growth and defensive sectors Income resilience supported by low tenant concentration and strong tenant mix Committed to Deliver Long-Term Value Organic growth supported by well-structured leases, built-in annual rental escalations and positive rent
Slide 29: Thank You
Thank You For more information, please visit www.koreusreit.com Connect with us on: in| 7 Westech 360 Austin, Texas
Slide 30: Additional Information
Additional Information Tenant lounge, 1800 West Loop South Houston, Texas
Slide 31: Healthy Balance Sheet
Wy Wit uy One Twenty Five, Dallas, Texas Healthy Balance Sheet As at 31 December 2020 (US$’000) Total Assets 1,366,752 Investment Properties 1,304,900 Cash and Cash Equivalents 57,324 Other Assets 4,528 Total Liabilities 594,682 Gross Borrowings 505,720 Other Liabilities 88,962 Unitholders’ Funds 77
Slide 32: Growing in Value
Growing in Value Increase in portfolio value driven mainly by properties in the strong-performing Seattle - Bellevue/Redmond markets Property As at 31 Pesan Azo As at 31 December. 2019 Change Change __ (USS ‘million) (USS ‘million) (USS ‘million) (Percentage) Sostle, Bellevue CBD 312.0 275.0 37.0 13
Slide 33: Trust Structure
Trust Structure Keppel Capital international Management Fees RE Keppel Pacific Oak USREI Management Management (Manager) Fees Semices — 100% Singapore si . ‘Sub 1 Intercompany Loans Subs pace Oak Management Intercompany Agreement 100% of the Loans voting shares Singapore United States Upper Tier LLC
Keppel Pacific Oak US REIT — Nomura Global Real Estate Forum 2021 on 6ix