Keppel REIT · SGX:K71U
Keppel REIT — Shareholder Meeting (February 2021)
23 slides from Keppel REIT's shareholder meeting presentation, Feb 24, 2021
Slide 1: Extraordinary General Meeting for the Proposed Acquisition of Keppel Bay Tower
Extraordinary General Meeting for the Proposed Acquisition of Keppel Bay Tower 24 February 2021
Slide 2: FY 2020 Key Highlights
FY 2020 Key Highlights 5.73 cents Ongoing portfolio FY 2020 DPU optimisation Up 2.7% y-o-y; 2H 2020 DPU was Added Melbourne’s Victoria Police Centre(1) and 2.93 cents (Up 4.6% y-o-y) Sydney’s Pinnacle Office Park. Proposed acquisition of Keppel Bay Tower in Singapore $194.6m FY 2020 distributable in
Slide 3: Continuing Portfolio Optimisation
Continuing Portfolio Optimisation FY 2020 developments: ▪ Portfolio optimisation to improve yield and ▪ Commencement of Victoria Police Centre’s income contribution create long-term value for Unitholders ▪ Acquired Pinnacle Office Park to expand into Sydney’s Grade A ▪ Holding quality assets across
Slide 4: Proposed Acquisition
Proposed Acquisition 4
Slide 5: DPU-Accretive Acquisition that Complements Core CBD Offering
DPU-Accretive Acquisition that Complements Core CBD Offering ▪ Grade A green commercial building strategically located in the HarbourFront / Alexandra submarket ▪ Strong and diverse tenant base of multinational corporations and anchored by the Keppel Group ▪ Acquisition is consistent with Keppel REI
Slide 6: Grade A Waterfront Business Hub
Grade A Waterfront Business Hub Building Completion 2002 (Recently refurbished in 2019) Land Tenure 99 years expiring on 30 Sep 2096 Attributable NLA 386,600 sf(1) (18-storey office tower with a six-storey podium block) Committed Occupancy 98.5%(2) WALE by NLA 3.1 years(2) No. of Tenants 29(2) ▪ Fir
Slide 7: Investment Merits
Investment Merits DPU and NPI yield accretive acquisition that 1 enhances Keppel REIT’s distributions and improves total unitholder returns Diversifies portfolio and strengthens tenant base 2 for income resilience Strategic expansion that complements the current 3 core CBD offering Grade A waterfron
Slide 8: DPU and NPI Yield Accretive
1 DPU and NPI Yield Accretive ▪ DPU and NPI yield accretive acquisition is part of ongoing portfolio optimisation efforts to enhance Keppel REIT’s distributions and improve total unitholder returns ▪ Consistent with Keppel REIT's strategy of strengthening and diversifying its portfolio, while remain
Slide 9: Diversifies Portfolio and Strengthens Tenant Base for Income Resilience
2 Diversifies Portfolio and Strengthens Tenant Base for Income Resilience ▪ Reduces Keppel REIT’s exposure to any single asset and further diversifies its income streams ▪ Post-Acquisition, Keppel REIT’s AUM will grow to $8.9 billion with Grade A commercial assets in key business districts of Singap
Slide 10: Diversifies Portfolio and Strengthens Tenant Base (Cont'd)
2 Diversifies Portfolio and Strengthens Tenant Base for Income Resilience (Cont’d) Keppel Bay Tower’s Tenant Mix (% of NLA) 15.3% ▪ Committed occupancy of 98.5% and WALE of 3.1 years by NLA 17.8% 8.1% ▪ Diverse mix of 29 tenants 7.1% ▪ Healthy rental collection for 4Q 2020 at approximately 96% 1.3%
Slide 11: Diversifies Portfolio and Strengthens Tenant Base (Cont'd)
2 Diversifies Portfolio and Strengthens Tenant Base for Income Resilience (Cont’d) ▪ Headquarters to the Keppel Group ▪ 39.7% of NLA on long leases to the Keppel Group entities ▪ Keppel Group becomes one of Keppel REIT's top 10 tenants by NLA ▪ Increases income diversification and reduces exposure t
Slide 12: Strong Occupancy and Well-Spread Lease Expiries
2 Strong Occupancy and Well-Spread Lease Expiries ▪ Portfolio committed occupancy level remains high at 98.0% ▪ Portfolio WALE by NLA remains long at approximately 6.3 years while lease expiry remains well-spread Portfolio Lease Expiry Profile (Post-Acquisition) (by committed attributable NLA) 35.2%
Slide 13: Strategic Expansion that Complements Core CBD Offering
3 Strategic Expansion that Complements Core CBD Offering ▪ Expands Keppel REIT’s offering to include quality CBD-fringe office space and meet potential shifts in occupier demand ▪ Offers more options and alternatives to tenants seeking dual locations or offices for business continuity purposes ▪ Pos
Slide 14: HarbourFront / Alexandra: A Resilient City-Fringe Submarket
3 HarbourFront / Alexandra: A Resilient City-Fringe Submarket ▪ The city-fringe has shown resilience during the current COVID-19 pandemic with rents recording marginal decline of approximately 1.5% over 9M 2020 ▪ Demand continues to be supported by tenants who are attracted to the value proposition
Slide 15: Grade A Waterfront Office with Excellent Connectivity to CBD and Amenities
4 Grade A Waterfront Office with Excellent Connectivity to CBD and Amenities HarbourFront / Alexandra Precinct ▪ Well-connected by major expressways and public Central transportation nodes: Outram Business Pasir Park District Panjang Labrador Park Telok Keppel Bay Tower ▪ 10 min drive to CBD Blangah
Slide 16: Participating in the Growth of Singapore's Greater Southern Waterfront
4 Participating in the Growth of Singapore’s Greater Southern Waterfront ▪ Strategically located in Singapore’s Gardens By the Bay Greater Southern Waterfront (GSW), (Bay East) which is positioned as a destination Pasir Panjang Terminal Keppel Bay Central for work, live and play Tower Mount Business
Slide 17: Augments Green Footprint via Renewable Energy and Technology Innovation
5 Augments Green Footprint via Renewable Energy and Technology Innovation ▪ Singapore’s first commercial development to be fully powered by renewable energy ▪ High-tech green building: Facial recognition for Energy-efficient air Demand control contactless entry distribution fresh air intake Water-ef
Slide 18: Increases Free Float and Liquidity
6 Increases Free Float and Liquidity Free Float and Market Capitalisation(1) ($m) ▪ Total Acquisition Cost to be funded with net proceeds from the Equity Fund Raising(3) 4,095 and a draw down of the Loan Facilities 3,817 ▪ Increases Keppel REIT’s market capitalisation by 2,216 7.3%, and improves fre
Slide 19: Resilient Portfolio Anchored by Singapore CBD Assets
Resilient Portfolio Anchored by Singapore CBD Assets $8.9 billion portfolio in key business districts of Singapore, Australia and South Korea enhances income diversification and long-term stability T Tower, Seoul 8 Chifley Square, 99.4% Interest Pinnacle Office Sydney Occupancy: 98.6% Park, Sydney S
Slide 20: Summary: Investment Merits
Summary: Investment Merits DPU and NPI yield accretive acquisition that 1 enhances Keppel REIT’s distributions and improves total unitholder returns Diversifies portfolio and strengthens tenant base 2 for income resilience Strategic expansion that complements the current 3 core CBD offering Grade A
Slide 21: Keppel Bay Tower
Keppel Bay Tower DPU-Accretive Acquisition that Complements Core CBD Offering Resolution: The Proposed Acquisition of Keppel Bay Tower through the Acquisition of the Shares of Keppel Bay Tower Pte. Ltd., as an Interested Person Transaction Advice of the Independent Financial Adviser (IFA), Deloitte
Slide 22: Thank You
Thank You For more information, please visit: www.keppelreit.com Connect with us on: 22
Slide 23: Disclaimer
Disclaimer IMPORTANT NOTICE: The past performance of Keppel REIT is not necessarily indicative of its future performance. Similarly, the past performance of the Manager is not indicative of the future performance of the Manager. Certain statements made in this presentation may not be based on histor