Slide 1: First Quarter 2017 Financial Results
First Quarter 2017 Financial Results 17 April 2017
Slide 2: Important Notice
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 and assump
Slide 3: Content
Content Key Highlights Financial Performance Portfolio Review Capital Management Outlook Additional Information 2
Slide 4: Key Highlights
Key Highlights
Slide 5: Key Highlights
Key Highlights $ € £ 1Q 2017 Distributable Income1 Portfolio Occupancy Aggregate Leverage2 +47.6% 95.1% 27.9% year-on-year as at 31 Mar 2017 as at 31 Mar 2017 Annualised Distribution Yield1 Portfolio WALE Interest Coverage 6.01% 9.2 years 11.6 times based on 1Q 2017’s by leased lettable area as at
Slide 6: Financial Performance
Financial Performance
Slide 7: Distributable Income
Distributable Income +/(-) ($’000) 1Q 2017 1Q 2016 % Distributable Income to Unitholders1 21,766 14,747 +47.6 Comprising: Gross Revenue 32,224 24,771 +30.1 Property Expenses (3,380) (3,585) (5.7) Net Property Income 28,844 21,186 +36.1 Distribution per Unit 2, 3 (DPU) (cents) 1.89 1.67 +13.2 Annuali
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights As at As at +/(-) ($’000) 31 Mar 2017 31 Dec 2016 % Investment Properties 1,452,531 1,225,938 +18.5 Total Assets 1,614,282 1,582,999 +2.0 Gross Borrowings 1 434,547 439,321 (1.1) Total Liabilities 524,244 509,131 +3.0 Unitholders’ Funds 1,065,914 1,073,525 (0.7) Units in Iss
Slide 9: Aggregate Leverage
Aggregate Leverage As at As at +/(-) ($’000) 31 Mar 2017 31 Dec 2016 % Investment Properties 1 1,420,133 1,193,540 +19.0 (excluding finance lease liabilities commitments) Deposited Properties 1 1,555,366 1,550,258 +0.3 (excluding finance lease liabilities commitments) Gross Borrowings + Deferred Pay
Slide 10: Portfolio Review
Portfolio Review
Slide 11: Completion of Keppel DC Singapore 3 Acquisition
Completion of Keppel DC Singapore 3 Acquisition The acquisition of 90% interest in Keppel DC Singapore 3 was completed on 20 January 2017 Tax transparency treatment for the REIT’s share of the taxable income was obtained Ireland Keppel DC Dublin 1, Dublin United Kingdom GV7 Data Centre, London C
Slide 12: Portfolio Update
Portfolio Update Maintained a healthy portfolio occupancy of 95.1% and long WALE of 9.2 years Renewed one of the major contracts expiring in 2017 for five years in our colocation data centre in Singapore Lease expiry profile (by leased lettable area) As at 31 March 2017 71.9% 10.9% 12.7% 0.8% 2.
Slide 13: Balanced Portfolio with Diversified Client Profile
Balanced Portfolio with Diversified Client Profile Global clientele of high value-added fast growing industries Income stability with a mix of master-leased facilities on long leases, as well as colocation facilities which provide diversity in terms of client profile and lease expiry Rental inco
Slide 14: Capital Management
Capital Management
Slide 15: Prudent Capital Management
Prudent Capital Management Hedging of borrowing costs Debt headroom for future growth: Aggregate leverage As at 31 March 2017 Un- remained low at 27.9% hedged 17% Managing interest rate exposure: Interest rates of the long-term loans have been substantially hedged with Hedged 83% interest rate s
Slide 16: Prudent Capital Management (Cont'd)
Prudent Capital Management (Cont’d) Mitigating impact of currency fluctuations: Hedged the REIT’s foreign-sourced distribution up to 2H 2018 using foreign currency forward contracts Adopted natural hedging by borrowing in currencies that match the corresponding investments Investment property
Slide 17: Outlook
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Slide 18: Tapping Industry's Potential
Tapping Industry’s Potential The increasing demands of the digital economy and data centre outsourcing requirements continue to underpin growth opportunities in the industry Worldwide Data1 10x from 2016 to 2025 Source: (1) IDC white paper “Data Age 2025” 17
Slide 19: Committed to Deliver Value
Committed to Deliver Value Vision: To be the preferred data centre real estate investment trust, serving as a trusted partner to our stakeholders. Mission: Guided by the Keppel Group’s operating principles and core values, we will create value for our investors by growing a quality portfolio of data
Slide 20: Additional Information
\ Additional Information \ —
Slide 21: Keppel DC REIT Structure
Keppel DC REIT Structure Keppel Telecommunications Keppel Capital & Transportation The REIT Manager can leverage The REIT Manager can leverage the scale and resources of a larger the Sponsor‘s expertise and track Institutional and Keppel Land asset management platform record in this industry Public
Slide 22: Portfolio Overview (as at 31 March 2017)
Portfolio Overview (as at 31 March 2017) Attributable Asia Pacific No. of Occupancy Carrying Value4 WALE Location Interest lettable area Lease type Land lease title clients1 rate (%) ($m) (years) (sq ft) Leasehold Keppel DC Keppel lease / (Expiring 30 Sep 2025, Singapore 100% 109,721 19 87.3 279.0 4
Slide 23: Portfolio Overview (as at 31 March 2017) (Cont'd)
Portfolio Overview (as at 31 March 2017) (Cont’d) Attributable No. of Occupancy Carrying Value4 WALE Location Interest lettable area Lease type Land lease title Europe (sq ft) clients1 rate (%) ($m) (years) London, Leasehold Triple-net GV7 Data Centre United 100% 24,972 1 100.0 67.2 9.9 (Expiring (F
Slide 24: Overview of Lease Arrangements
Overview of Lease Arrangements Asia Pacific Responsibilities of Lessor / Owner Maintenance Lease Property Description Insurance Arrangement Property Building Refresh Capex Opex Tax Keppel lease1 / Client: Pays cost of rent and all expenses recharged to Lessor Keppel DC Singapore 1 Colocati
Slide 25: Overview of Lease Arrangements (Cont'd)
Overview of Lease Arrangements (Cont’d) Europe Responsibilities of Lessor / Owner Maintenance Lease Property Description Insurance Arrangement Property Building Refresh Capex Opex Tax GV7 Data Centre Triple-net lease Client: Pays all outgoings; responsible for facilities management - - - - Cardiff
Slide 26: Thank you.
Thank you. KG y-y-1) DC REIT 25