Keppel REIT · SGX:K71U
Keppel REIT — K-REIT Asia — Investor Presentation (November 2008)
28 slides from Keppel REIT's investor presentation, November 2008
Slide 1: Investor Meetings Nov 2008
AaSld INVESTOR MEETINGS Nov 2008 — oo 0l a-ha
Slide 2: Contents
Contents Overview Stable Portfolio Balanced Capital Structure Market Review & Outlook Additional Information 2
Slide 3: Overview
aSld Overview
Slide 4: Overview of K-REIT Asia
Overview of K-REIT Asia Commercial REIT with Pan-Asian mandate Portfolio of 5 quality office assets producing steady and sustainable returns Assets under management(1): $2,102 million Net lettable area: 114,425 sm or 1,231,673 sf Prudential Tower(2) Keppel Towers Bugis Junction One Raffles Quay & GE
Slide 5: Rising DPUs
Rising DPUs 12 11.00 11 24.7% 10.09 10 DPU (cents) 30.5% 8.82 9 8.37 8 7.53 7 6.76 6 5 Actual FY2006 Actual FY2007 YTD Sep 2008 FY2008 FY2008 (Annualised) (1) Forecast(1) Forecast(2) Post-rights issue completed on 8 May 2008 DPU based on number of units at period-end DPU based on weighted average nu
Slide 6: Healthy Balance Sheet
Healthy Balance Sheet Aggregate leverage of 27.6% → one of the lowest among Singapore- listed commercial REITs ($million) As at 30 Sep 2008 Non-current Assets 2,034.5 Total Assets 2,069.4 Borrowings(1) 576.7 Total Liabilities 604.7 Unitholders' Funds 1,464.7 Net Asset Value Per Unit $2.26 Net Asset
Slide 7: Stable Portfolio
ocSld Stable Portfolio
Slide 8: Broad Tenant Diversity
Broad Tenant Diversity Tenant Business Sector by Net Lettable Area @ 30 Sep 2008 Accounting & Shipping & consultancy services marine services 3.8% 7.4% Services 9.0% Real estate & property services Banking, insurance & financial 8.3% services (1) 120 tenants 35.6% Pharmaceuticals & healthcare in tot
Slide 9: Blue-chip Tenants on Long Leases
Blue-chip Tenants on Long Leases Portfolio’s Top 10 Tenants by Monthly Gross Rental Income for Sep 2008 Deutsche Bank 7.0% UBS AG 5.2% I.E.Singapore 5.1% ABN AMRO 4.6% Total 45.9% GE Pacific 4.5% of portfolio’s gross rental Intercontinental Hotels 4.3% income The Executive Centre 4.2% Credit Suisse
Slide 10: Portfolio Lease Expiry & Rent Review Profiles
Portfolio Lease Expiry & Rent Review Profiles Lease Profile as a Percentage of Net Lettable Area @ 30 Sep 2008 25% 19.9% 20% 16.7% 15% 13.3% 12.6% 11.3% 11.5% 10% 8.1% 6.4% 5% 0.7% 0% 0% 2008 2009 2010 2011 2012 Lease Expiry as a Percentage of Portfolio's Total NLA Rent Review as a Percentage of Por
Slide 11: Low Average Portfolio Rent
Low Average Portfolio Rent Excluding ORQPL, average portfolio rent of about $6 psf pm → lower than current market rents ORQPL’s rents buffered against downside risks with income support till end-2011 Average Portfolio Gross Rental Rates psf per month $7.43 (1) $8.00 (1) $7.43 $7.50 $7.37 (1) $6.86 $
Slide 12: Portfolio Valuations vs Market Valuations
Portfolio Valuations vs Market Valuations K-REIT Asia’s asset valuations(1) Prudential Tower About $2,100 psf Keppel Towers and GE Tower About $1,300 psf Bugis Junction Towers About $1,200 psf One Raffles Quay About $2,200 psf Market valuations for prime office CBRE: $2,900 psf and Jones Lang LaSall
Slide 13: Balanced Capital Structure
Balanced Capital Structure 13
Slide 14: No Refinancing Concerns until 2011
No Refinancing Concerns until 2011 30 Sep 2008 Gross Borrowings $581.2m Aggregate Leverage 27.6% All-in Interest Rate 2.77% Interest Coverage Ratio(1) 1.71 times Weighted Average Term to Expiry 2.50 years Corporate Rating (by Moody's) Baa3 Debt profile as at 30 Sep 2008 Fixed-rate $190m Maturing in
Slide 15: Market Review & Outlook
ocSld Market Review & Outlook
Slide 16: S'pore Continues to be Attractive in Asia
S’pore Continues to be Attractive in Asia Weak macroeconomic sentiment currently Office supply limited for next 2 years Government acts to stabilise market Suspension of confirmed land sales Lifting of the ban on the conversion of office space to other uses in CBD Singapore remains a key business de
Slide 17: Going Forward
Going Forward On track to achieve higher than forecast FY2008 distribution of 7.53(1) cents per unit based on number of units at year-end Current economic uncertainties present opportunities for selective asset acquisitions (1) Forecast FY2008 DPU is 10.09 cents, based on the weighted average number
Slide 18: Leveraging on Key Strengths
Leveraging on Key Strengths Pan-Asian office- Office-focused focused S-REIT Pursue pan-Asian acquisition opportunities Portfolio of prime and grade-A office buildings Quality assets Buildings located at convenient locations within/near CBD and tenants Quality tenants with diverse trade mix Long leas
Slide 19: Thank You
Thank You The value of units in K-REIT Asia (“Units”) and the income from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the princi
Slide 20: Additional Information
ocSld Additional Information
Slide 21: Snapshot of K-REIT Asia
Snapshot of K-REIT Asia Manager K-REIT Asia Management Limited Property Portfolio 5 quality commercial office assets valued at $2.1 billion Listing Date 28 Apr 2006 on Singapore Stock Exchange Market Capitalisation $509 million as at 7 Nov 2008 Unit Price $0.78 Number of Units in Issue 652,724,165 (
Slide 22: YTD Sep 2008 DPU Outperformed Forecast by 13.6%
YTD Sep 2008 DPU Outperformed Forecast by 13.6% YTD YTD Sep 2008 YTD Sep 2007 Sep 2008 ($'000) Actual Forecast(1) % Chg Actual % Chg Property Income 38,357 37,198 3.1 29,041 32.1 Net Property Income 27,846 27,376 1.7 21,238 31.1 Distributable Income to Unitholders 40,772 35,899 13.6 14,892 173.8 Dis
Slide 23: 3Q 2008 DPU Outperformed Forecast by 13%
3Q 2008 DPU Outperformed Forecast by 13% 3Q 2008 3Q 2008 3Q 2007 ($'000) Actual Forecast(1) % Chg Actual % Chg Property Income 13,862 12,940 7.1 10,323 34.3 Net Property Income 9,531 8,803 8.3 7,493 27.2 Distributable Income to Unitholders 15,191 13,409 13.3 5,411 180.7 (2) Distribution Per Unit (ce
Slide 24: YTD Sep 2008 Income Contribution Up 186% Y-o-Y
YTD Sep 2008 Income Contribution Up 186% Y-o-Y YTD YTD Sep 2007 3Q 2008 3Q 2007 Sep 2008 ($'000) Actual Actual % Chg Actual Actual % Chg Prudential Tower 5,726 3,656 56.6 2,099 1,206 74.0 Keppel Towers and GE Tower 13,543 10,309 31.4 4,018 3,801 5.7 Bugis Junction Towers 8,577 7,273 17.9 3,414 2,486
Slide 25: Prudential Tower Property
Prudential Tower Property 30-storey Grade-A building Prudential Tower Located at Raffles Place, within a 5-minute walk from MRT station 44.4% of building’s strata area owned by K-REIT Asia Winner of prestigious office/ industrial category of the FIABCI Prix d‘Excellence Awards 2004 Key Property Info
Slide 26: Keppel Towers and GE Tower
Keppel Towers and GE Tower Keppel Towers: 27-storey office building GE Tower: 13-storey office building, within a Keppel Towers GE Tower five-minute walk from MRT station Located in the Tanjong Pagar vicinity Key Property Information Net Lettable Area 40,002 sm (430,582 sf) Tenure Estate in fee simp
Slide 27: Bugis Junction Towers
Bugis Junction Towers 15-storey office tower located along Victoria Street, Bugis Junction Towers Directly linked to Bugis MRT station Part of an integrated development known as Bugis Junction with a popular retail mall and the five-star InterContinental Singapore hotel Key Property Information Net
Slide 28: One Raffles Quay
One Raffles Quay Strategically located at Marina Bay and gateway to Singapore’s new business and financial district One of the largest office developments with a 50- North Tower South Tower storey North Tower and a 29-storey South Tower Direct underground link to Raffles Place MRT station Winner of