Prime US REIT · SGX:OXMU
Prime US REIT — SGX-SinoPac Securities Corporate Access (September 2020)
22 slides from Prime US REIT's conference presentation, Sep 3, 2020
Slide 1: Prime US REIT SGX-SinoPac Securities Corporate Access
PRIME US REIT SGX-SinoPac Securities Corporate Access 3 September 2020 1H 2020 RESULTS ANNOUCEMENT | AUGUST 2020 1
Slide 2: Important Notice
Important Notice This document may contain forward-looking statements that involve assumptions, An investment in Units is subject to investment risks, including the possible loss of risks and uncertainties. Actual future performance, outcomes and results may the principal amount invested. Holders of
Slide 3: Content
Content 04 Overview 06 1H 2020 Key Highlights 16 Future of Office 17 COVID-19 Updates 18 Outlook CORPORATE PRESENTATION| SEPTEMBER 2020 3
Slide 4: Our Differentiated Proposition in US Office
Our Quality Diversity Stability & Growth Differentiated • Class A • Markets • Balance Sheet Proposition • Established Tenants • Industry Sectors • Cash Flows in US Office • Depth of Real Estate DNA • Tenants • Locations CORPORATE PRESENTATION| SEPTEMBER 2020 4
Slide 5: 2019 Milestones
2019 Milestones IPO LISTING ON IPO PORTFOLIO INCLUSION INTO OUTPERFORMED JULY 19, 2019 MSCI SINGAPORE IPO FORECAST SMALL CAP INDEX Our Sponsors: • 2019 DPU of US • 11 Class A Office • 20 November 2019 3.15 cents Buildings • 7.5% higher than • Diversified over IPO Forecast Nine Strategic Markets CORP
Slide 6: 1H 2020 Key Highlights: Delivering Performance and Stability
1H 2020 Key Highlights Delivering Performance and Stability OUTPERFORMED STRONG PROACTIVE ACCRETIVE RESILIENT IPO FORECAST BALANCE SHEET CAPITAL ACQUISITION PORTFOLIO MANAGEMENT • 1H 2020 DPU of • Low gearing of • Occupancy 93% 33.0% • Reduced interest US 3.52 cents • Maiden acquisition • WALE of 4.
Slide 7: 1H 2020 Outperformed DPU Forecast by 5.1%
1H 2020 Outperformed DPU Forecast by 5.1% 1H 2020 1 January to 30 June 2020 Actual Forecast1 Variance (US$ ‘000) (US$ ‘000) (%) Increased net property income (NPI) partially Net Property Income 47,450 44,089 +7.6 offset by short term reduction in demand for parking Distributable Income to 35,878 31,
Slide 8: Robust Balance Sheet
Robust Balance Sheet Payout of 100% of 30 June 2020 distributable Name of Property (US$ m) income Investment Properties 1,427.2 Deep value in share Total Assets 1,467.2 price relative to NAV and Borrowings 478.81 underlying business Total Liabilities 547.5 strengths Net Assets attributable to Unitho
Slide 9: Conservative Gearing with Ample Liquidity
Conservative Gearing with Ample Liquidity Tenant 31 Dec 2019 30 Jun 2020 Well Staggered Debt Maturities Gearing 33.7% 33.0% 160 160 33% 33% Interest Coverage1 5.1x 5.4x 160 US$ million 105 % Fixed Rate 88.0% 90.0% 120 22% $1,650 4.6 years Average Debt Maturity 5.2 years 80 59 5.1 years [fully extend
Slide 10: Focus on Growth Cities
Focus on Growth Cities In established and growth markets State Metro Property Sq. Ft. Occupancy California Sacramento Park Tower 489,171 92.7% Tower I at San Fran/Oakland 222,207 93.7% Emeryville Utah Salt Lake City 222 Main 433,346 94.4% Village Center Colorado Denver 241,846 65.1% Station I Villag
Slide 11: Resilient Income Through Diversification
Resilient Income Through Diversification Park Tower Tower I at ▪ No one property contributes more Emeryville than 15.3% to net property income 171 17th Street 8.5% 9.3% 13.1% 222 Main 15.3% ▪ 99.8% of Cash Rental Income (CRI) Reston Square 4.5% has built in rental escalations 1H 2020 NPI Village Cen
Slide 12: Balanced Industry Sector Diversification
Balanced Industry Sector Diversification Top 10 Tenants Leased % of Portfolio Tenant Industry Credit Rating Property Sq.Ft. CRI1 15.6% Charter Village Center Other Communications Moody's: Ba1 419,881 8.8% Communications Station I & II 14.3% 1.6% Finance Moody's: A3 Goldman Sachs Health Care and Fina
Slide 13: Proactive Lease Management
Proactive Lease Management Strong leasing activity in 1H 2020 of 82,549 sq ft Over 60% was renewed/expanded by existing tenants 1.9% 4.8yrs 8.5% Post 1H, an additional 36k sq ft of renewals and expansion by CRI of portfolio Positive rental leases executed by existing tenants at positive reversions W
Slide 14: Solid Markets with Rental Reversion Opportunities
Solid Markets with Rental Reversion Opportunities Potential Lease expiry Annual In Place Annual Asking Leased % as at Name of Property Rental WALE through 2021 by Rent (US$) Rent (US$) June 30 Reversion CRI Tower I at Emeryville $52.82 $54.60 3.4% 6.3 93.7% 0.2% • Portfolio has in place 222 Main $37
Slide 15: New Construction
New Construction Under Construction (000’s sq ft) 4,000 3,590 • Midtown Atlanta: continues to 3,500 attract large corporations and has benefited from a wave of 3,000 tech-oriented companies; 2,500 Microsoft recently leased 523,000 sq ft (post-COVID) 2,000 across the street, bringing pre- 1,480 1,500
Slide 16: The Future of Office: Flexibility
Demand Work From Home The Future of • Pre-COVID, corporates had WFH policies in place • Established professional and financial Office: services sectors will continue to provide a stable base of demand • Companies with WFH policies still require office space for efficiency, creativity, and collaborat
Slide 17: COVID Update: From Health/Safety to New Physical Footprint
COVID Update: From Health/Safety to New Physical Footprint Cleaning Physical Distancing • Frequent and Deep Cleaning • Manage current work • Air & Water Quality Ventilation environment and the “six feet” Improvements guidelines • Technology Solutions including • Clear public space density efficient
Slide 18: Well Positioned to Move Forward
Well Positioned to Move Forward Recovery Readiness, Tenant Retention and Evaluate growth Satisfaction Leasing Strategies opportunities • Rent collections stable at 99% in each month of 2Q • Lease extensions • Growth markets • Work closely with tenants through re-occupancy • Lease expansions • Focus
Slide 19: CORPORATE PRESENTATION| SEPTEMBER 2020
CORPORATE PRESENTATION| SEPTEMBER 2020 19
Slide 20: Thank You
Thank You www.prim eusreit.com +65 6951 8090 1 Raffles Place #40-01 One Raffles Place Singapore 048616 www.primeusreit.com
Slide 21: PRIME (SGX: OXMU) Quick Facts
PRIME (SGX: OXMU) us$822m us$35.9m Market Cap1 1H 2020 Distributable Quick Facts 9.1% Income 33.0% High quality portfolio of prime office properties, Distribution Yield2 Gearing Ratio diversified across key U.S. office markets us$1.427b 12 Valuation3 Prime U.S. Office Properties A 93% 2 Crosspoint 1
Slide 22: Financially Strong and Committed Sponsor Group
Financially Strong and Committed Sponsor Group Three decades of experience Preeminent player in Singapore real Financial commitment to the REIT and as leading US Office player estate and REIT markets. Manager Transacted US$42b with over $8 bn of AUM Keppel DC REIT CEO active Active representation re
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