Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — Merger or Acquisition (December 2024)
18 slides from Keppel Dc Reit's merger presentation, Dec 12, 2024
Slide 1: Dialogue Session with Securities Investors Association (Singapore)
Dialogue Session with Securities Investors Association (Singapore) 12 Dec 2024 Capitalised terms used herein but not otherwise defined shall have the meanings ascribed to them in the Circular to Unitholders dated 5 Dec 2024 (Circular).
Slide 2: Resolutions 1 & 2
Resolutions 1 & 2 Gt} DC REIT
Slide 3: AI-Ready Hyperscale Data Centres within a Campus in Singapore
AI-Ready Hyperscale Data Centres within a Campus in Singapore Keppel DC REIT is one of the largest owners of stabilised data centres in Asia’s top data centre hub Artificial Intelligence (AI) Inference Ready 100% Contracted to Global Hyperscalers Excellent Connectivity to Key Network Infrastructure
Slide 4: Acquisition Overview
Acquisition Overview Proposed Acquisition of 99.49% Economic Interest in KDC SGP 7 KDC SGP 8 2 Colocation Data Centres in Singapore (Proposed Shares and Notes Transactions)1 Asset Details Agreed aggregated 100% Basis: property value of Received Temporary • S$1,030.0m Completed Occupation Permit in A
Slide 5: Proposed Acquisition Structure
Proposed Acquisition Structure Call option to acquire End-Game Structure the remaining 51% 1 Initial Transaction Scope (Dec 2024) 2 ~ 2H 2025 stake in Memphis 1 Overall objective is for Keppel DC REIT (Keppel DC REIT economic (Keppel DC REIT interest: 100%) to have 100% interest in KDC SGP 7 interes
Slide 6: Key Investment Merits
Key Investment Merits 1 Strategic addition of AI-ready hyperscale data centres in Asia’s top data centre hub Immediate distribution per Unit (DPU) accretion 2 3 Multiple levers to drive further growth via rental uplifts and capacity expansion Stronger platform to drive long-term growth 4 © Keppel DC
Slide 7: Strategic Addition of AI-ready Hyperscale Data Centres in Asia's Top Data Centre Hub
1 Strategic Addition of AI-ready Hyperscale Data Centres in Asia’s Top Data Centre Hub Strategic acquisition to capitalise on growth driven by exponential demand in generative AI Capitalise on growing demand for AI data centres AI-ready specifications and structural tailwinds Designed to handle AI i
Slide 8: Strategic Addition of AI-ready Hyperscale Data Centres in Asia's Top Data Centre Hub
1 Strategic Addition of AI-ready Hyperscale Data Centres in Asia’s Top Data Centre Hub Strengthen foothold in Singapore, Asia’s top data centre hub Keppel DC REIT’s Singapore exposure to increase by ~67% to S$3.4b Singapore is the top data centre hub in Asia with extensive undersea Portfolio AUM: ✓
Slide 9: Immediate DPU Accretion
2 Immediate DPU Accretion Proposed Shares and Notes Transactions is DPU accretive 1H 2024 Pro Forma DPU Accretion 1H 2024 Pro Forma DPU Accretion2,3,4 On an Immediate Basis1,2 (Singapore cents) (Singapore cents) 5.001 Multiple benefits from the 4.867 land lease tenure extension +7.0% ✓ Stable and gr
Slide 10: Multiple Levers to Drive Further Growth Via Rental Uplifts and Capacity Expansion
3 Multiple Levers to Drive Further Growth Via Rental Uplifts and Capacity Expansion Optimise returns through proactive portfolio and asset management A Potential for rental uplifts B Potential for capacity expansion Singapore Data Centres Pricing (per kW/month) • Potential revenue upside in the mid
Slide 11: Stronger Platform to Drive Long-term Growth
4 Stronger Platform to Drive Long-term Growth Portfolio AUM increases by ~36%, creating stronger platform for future growth A Enhances portfolio income resilience B Well-positioned to capture future growth catalysts Pre-Proposed Shares and Post-Proposed Shares and Notes Transactions Notes Transactio
Slide 12: Total Acquisition Cost and Sources of Funding
Total Acquisition Cost and Sources of Funding Proposed Shares and Notes Transactions to be funded by equity, with Lease Extension Consideration to be funded via debt Total Acquisition Cost of Proposed Shares and Notes Transactions, Lease Extension Consideration and the Call Option purchase considera
Slide 13: Strengthening Portfolio; Delivering Growth
Strengthening Portfolio; Delivering Growth AI-Ready Hyperscale Data AI Inference Ready Exposure to Singapore Market Increased from 53.1% to Centres; Strengthening Foothold in Singapore Flexibility to Adopt Liquid Cooling 65.5%1 Pro Forma DPU accretion 1H 2024 Pro Forma DPU 4.867 cents DPU Accretive
Slide 14: Resolutions 3 & 4
Resolutions 3 & 4 Gt} DC REIT
Slide 15: Overview of New Facility Management Agreement and Master Lease Agreement
Overview of New Facility Management Agreement and Master Lease Agreement Proposed agreements on substantially the same terms as the existing agreements KDC SGP 1 KDC SGP 2 Facility Manager / Keppel DC Singapore 1 Ltd. Keppel DC Singapore 2 Pte. Ltd. Master Lessee Term Commencement Date 12 June 2025
Slide 16: Rationale for the Proposed New KDC SGP 1 & KDC SGP 2 Agreements
Rationale for the Proposed New KDC SGP 1 & KDC SGP 2 Agreements 1 Proven track record & experienced Facility Manager familiar with existing Singapore properties to ensure business continuity and operational efficiencies 2 Shares variability of income and/or expenses between Keppel Data Centre Holdin
Slide 17: EGM Resolutions
EGM Resolutions Resolution 1: The proposed acquisition of interests in Keppel DC Singapore 7 and Keppel DC Singapore 8, and entry into agreements in connection with the acquisition (including, but not limited to, the master lease agreement and the facility management agreement), as an interested per
Slide 18: Thank You
Thank You 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
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