Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — 1H 2021 Earnings Presentation
27 slides from Keppel Dc Reit's earnings presentation, Aug 12, 2021
Slide 1: Investor Presentation
Investor Presentation 12 August 2021
Slide 2: Outline
Outline Key Highlights 3 Financial Results 10 Portfolio Updates 14 Outlook 17 Additional Information 21 Constituent of: Awards and Accreditations: FTSE Straits FTSE EPRA Nareit Global MSCI Singapore GPR 250 Times Index Developed Index Small Cap Index Index Series 2
Slide 3: 1H 2021 Key Highlights
1H 2021 Key Highlights Strengthen Sustainable Financial Flexibility Income Stream Growth Strong Leasing Momentum Stable Distributable Income Aggregate Leverage5 0.8% 1 $84.3m 36.7% Proactive leasing efforts saw new, renewal and expansion for 1H 2021, which was 12.4% higher y-o-y as at 30 Jun 2021, p
Slide 4: Value Creation Strategy
Value Creation Strategy Widened Mandate with Continued Focus Completion of Intellicentre 3 East Data Tapping into China’s Growing on Data Centres Centre (IC3 East DC) in Sydney Digital Economy ▪ Access to wider range of opportunities ▪ Development completed on 13 Jul 2021 ▪ DPU-accretive acquisition
Slide 5: Maiden Data Centre Acquisition into China
Maiden Data Centre Acquisition into China Guangdong Data Centre • 7-storey data centre designed in accordance with the Code for Design of Data Centre Grade A GB1 Description • 1 of 6 data centres buildings to be completed in the Bluesea Intelligence Valley Mega Data Centre Campus • Sale and leasebac
Slide 6: Benefits to Unitholders
Benefits to Unitholders 1 First investment in China, the largest growing data centre hub in Asia DPU-accretive acquisition consistent with Keppel DC REIT’s 2 investment strategy 3 Improve portfolio occupancy and income diversification 6
Slide 7: 1st Investment in China, Asia's Largest Growing Data Centre Hub
1 1st Investment in China, Asia’s Largest Growing Data Centre Hub Foothold in the 2nd largest data centre market globally and the largest in APAC1 ▪ Guangdong has the highest share of large scale data centres, commanding over 20% of the market2 ▪ Located within the Greater Bay Area, one of China’s m
Slide 8: DPU-Accretive Acquisition
2 DPU-Accretive Acquisition Pro Forma DPU (cents)1 Effects of the Acquisition based on Pro Forma1 Pre-Acquisition Post-Acquisition 9.340 +1.9% Net Profit before Tax (S$’000) 192,750 198,3142 9.170 Distributable Income (S$’000) 156,915 162,241 Issued Units (’000) 1,633,1213 1,660,5254 Distribution pe
Slide 9: Improve Portfolio Occupancy and Income Diversification
3 Improve Portfolio Occupancy and Income Diversification Expands presence to 20 data centres globally AUM • Intellicentre Campus, Sydney1 from S$3.1bn to • Iseek Data Centre, Brisbane S$3.2b 2 CHINA • Guangdong Data Centre, Guangdong Province Portfolio Occupancy from 98.0% to 98.2% 2 Portfolio WALE
Slide 10: Financial Results
Financial Results Keppel ea 0 fF
Slide 11: Financial Performance
Financial Performance Distribution per Unit (cents)1 Distribution Timetable +12.5% 4.924 Ex-Date 2 Aug 2021 4.375 Record Date 3 Aug 2021 Payment Date 6 Sep 2021 1H 2020 1H 2021 ($’000) 1H 2021 1H 2020 +/(-) % Distributable Income to Unitholders 84,256 74,980 +12.4 Comprising Gross Revenue 135,147 12
Slide 12: Balance Sheet
Balance Sheet As at As at +/(-) ($’000) 30 Jun 2021 31 Dec 2020 % Investment Properties 3,086,204 3,005,038 +2.7 Property under Development 27,550 24,676 +11.6 Total Assets 3,402,457 3,349,828 +1.6 Gross Borrowings1 1,197,909 1,165,756 +2.8 Total Liabilities 1,388,700 1,367,586 +1.5 Unitholders’ Fun
Slide 13: Prudent Capital Management
Prudent Capital Management Debt Maturity Profile (as at 30 Jun 2021) Debt Currency Breakdown (as at 30 Jun 2021) Received EUR SGD commitments to 11.6% 57.2% 28.0% refinance loans due in 4Q 2021 Total 10.7% borrowings: 23.0% ~$1,197.9m 5.3% 13.8% 6.7% 9.1% 5.7% 1.8% 6.2% 1.1% 5.0% AUD 7.3% 2021 2022
Slide 14: Portfolio Updates
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Slide 15: Portfolio Updates
Portfolio Updates ▪ Proactive leasing efforts resulted in new, renewal and expansion leases secured with clients at the Singapore and Dublin data centres, including some renewals ahead of expiry - Including the latest renewal lease signed in July 2021, only 0.8% of leases3 are expiring for the remai
Slide 16: Diversified and Resilient Portfolio
Diversified and Resilient Portfolio Rental Income by Trade Sector Rental Income by Lease Type AUM Breakdown Top 10 Clients (for the month of Jun 2021)1 (for the month of Jun 2021)1 (as at 30 Jun 2021) (for the month of Jun 2021)1 Internet Enterprise 38.5% Germany One of the largest tech companies gl
Slide 17: Outlook
Outlook Cy] Dc REIT 171 ff
Slide 18: Robust and Resilient Data Centre Demand
Robust and Resilient Data Centre Demand ▪ End-user spending on public cloud services is forecasted to grow 23.1% in 2021 to $332.3b, up from $270b in 20202 ▪ Hyperscale cloud operator capex in the first quarter of 2021 was up by 31% from 2020, reaching a high of US$38b3 Worldwide investment in data
Slide 19: Well-Positioned for Growth
Proxy to Fast-Growing Tech Sector Well-Positioned for Resilient asset class with highly defensive and Growth long-term sustainable income stream The Manager will continue Strong operational expertise and proven track record to capitalise on growth Focused and disciplined investment strategy opportun
Slide 20: Thank You
Thank You Important Notice: The past performance of Keppel DC REIT is not necessarily indicative of its future performance. Similarly, the past performance of Keppel DC REIT Management Pte. Ltd., as manager of Keppel DC REIT (the "Manager") is not indicative of the future performance of the Manager.
Slide 21: Additional Information
Additional Information [CSE pe REIT af
Slide 22: Commitment to Sustainability
Commitment to Sustainability ENVIRONMENTAL RESPONSIBLE PEOPLE AND STEWARDSHIP BUSINESS COMMUNITY In line with Keppel’s Vision 2030, we will do The long-term sustainability of our People are the cornerstone of our business. our part to combat climate change, and are business is driven at the highest
Slide 23: Portfolio Overview (as at 30 Jun 2021)
Portfolio Overview (as at 30 Jun 2021) Attributable No. of Occupancy WALE Location Interest lettable area Valuation2 Lease type Land lease title clients1 rate (%) (years)3 (sq ft) Asia Pacific Leasehold Keppel lease / Keppel DC Singapore 1 Singapore 100% 109,721 25 93.9 S$298.0m 3.4 (Expiring 30 Sep
Slide 24: Portfolio Overview (as at 30 Jun 2021)
Portfolio Overview (as at 30 Jun 2021) Attributable lettable No. of Occupancy WALE Location Interest Valuation2 Lease type Land lease title area (sq ft) clients1 rate (%) (years)3 Intellicentre 2 Sydney, A$59.0m Triple-net 100% 87,930 1 100.0 14.1 Freehold Data Centre4 Australia (S$58.2m) (Shell & c
Slide 25: Overview of Lease Arrangements
Overview of Lease Arrangements Responsibilities of Owner Maintenance Lease Insurance Asia Pacific Description Property Arrangement Building Refresh Capex Opex Tax Keppel lease1 / ◼ Client: Pays rent Keppel DC Singapore 1 ✓ ✓ ✓ ✓ Colocation2 ◼ Owner: Bears all expenses; responsible for facilities man
Slide 26: Overview of Lease Arrangements
Overview of Lease Arrangements Responsibilities of Owner Maintenance Lease Europe Description Insurance Arrangement Property Building Refresh Capex Opex Tax Cardiff Data Centre Triple-net lease ◼ Client: Pays rent and all outgoings; responsible for facilities management - - - - GV7 Data Centre Tripl
Slide 27: Keppel DC REIT Structure
Keppel DC REIT Structure as (at 30 Jun 2021) Keppel Keppel Capital Telecommunications & Transportation Institutional and The REIT Manager can leverage The REIT Manager can leverage Public Investors the scale and resources of a larger the Sponsor‘s expertise and track asset management platform record