Kore Us Reit · SGX:CMOU
Kore Us Reit — Keppel Pacific Oak US REIT — FY2022 Earnings Presentation
31 slides from Kore Us Reit's earnings presentation, Feb 1, 2023
Slide 1: Second Half and Full Year 2022 Financial Results
Second Half and Full Year 2022 Financial Results 1 February 2023
Slide 2: Important Notice and Content Outline
Important Notice Content Outline The past performance of Keppel Pacific Oak US REIT is not necessarily indicative of its future performance. Certain statements made in this release may not be based on historical information or facts and may be “forward-looking” statements due to a number of risks, K
Slide 3: Key Highlights
Key Highlights Bridge Crossing Nashville, Tennessee
Slide 4: FY 2022 Key Highlights
FY 2022 Key Highlights Robust Stable Continued Growth Financial Position Income Stream in Operating Income Portfolio Valuation Adjusted Distributable Income (DI) Leases Signed in FY 2022 0.2% YoY 5.1% YoY 13.7% Portfolio NLA Portfolio valuation improved by FY 2022 actual DI of US$60.6 million was 2.
Slide 5: Financial Performance & Capital Management
Financial Performance & Capital Management 105 Edgeview Denver, Colorado
Slide 6: Financial Performance for 2H 2022 & FY 2022
Financial Performance for 2H 2022 & FY 2022 (US$’000) 2H 2022 2H 2021 % Change FY 2022 FY 2021 % Change Gross Revenue 73,867 72,874 1.4 147,976 141,257 4.8 Net Property Income (NPI) 41,274 42,095 (2.0) 84,275 82,682 1.9 Adjusted NPI (excludes non-cash straight-line rent, 41,972 42,684 (1.7) 85,493 8
Slide 7: Healthy Balance Sheet that Supports Growth Aspirations
Healthy Balance Sheet that Supports Growth Aspirations As at 31 December 2022 US$’000 Total Assets 1,519,502 Investment Properties 1,423,370 Cash and Cash Equivalents 63,436 Other Assets 32,696 Total Liabilities 673,425 Gross Borrowings 580,220 Other Liabilities 93,205 Unitholders’ Funds 846,077 Uni
Slide 8: KORE Distribution For FY 2022
KORE Distribution For FY 2022 Distribution for the period from 1 July to 31 December 2022 Distribution Per Unit 2.78 Ex-Date 08 February 2023 Record Date 09 February 2023 Payment Date 30 March 2023 8
Slide 9: Stable Financial Position
Stable Financial Position Prudent capital management with 100% unsecured loans provide greater financial flexibility; no long-term refinancing obligation till late 2024 As at 31 December 2022 Debt Maturity Profile (as at 31 December 2022) Total Debt • US$580.2 million of external loans 100% of Loans
Slide 10: Portfolio Performance
Portfolio Performance Tenant space at The Westpark Portfolio Redmond, Seattle, Washington
Slide 11: Quality Portfolio Driven By Tech and Innovation
SEATTLE – BELLEVUE/REDMOND, Washington NASHVILLE, Tennessee Quality Portfolio The Plaza Buildings Bellevue Technology Center Occupancy: 96.8% The Westpark Portfolio Bridge Crossing Occupancy: 100% Occupancy: 92.3% Driven By Occupancy: 97.9% ORLANDO, Florida Tech and DENVER, Colorado Innovation Westm
Slide 12: KORE's Presence In Key Growth Markets
KORE’s Presence In Key Growth Markets Popular in-migration destinations due to attractive lifestyle, culture and employment opportunities Seattle, Washington ❖ The Plaza Buildings SEATTLE ❖ Bellevue Technology Center #17 Seattle ❖ The Westpark Portfolio Austin, Texas ❖ Westech 360 #4 ❖ Grea
Slide 13: Steady Income with Visible Organic Growth
Steady Income with Visible Organic Growth New Renewal Expansion ~651,319sf New leasing demand and expansions from: Leased spaces for FY 2022, equivalent to TAMI (1) 24.1% 13.7% of portfolio NLA. ~106,495 sf, 15.7% equivalent to 2.2% of portfolio NLA of 61.2% Professional Services(2) 23.8% space was
Slide 14: Resilient Portfolio with Diversified Tenant Composition
Resilient Portfolio with Diversified Tenant Composition KORE’s buildings and business campuses in ~49% of KORE’s portfolio NLA comprises the tech hubs of Seattle – Bellevue/Redmond, high-quality tenants from the growing and Austin and Denver contribute ~65% of NPI(1) defensive sectors of TAMI, medic
Slide 15: Low Tenant Concentration Risk
As at 31 December 2022 Top 10 Tenants Sector Asset Location % of CRI Low Tenant Comdata Inc Technology Bridge Crossing Nashville 3.6 Concentration Ball Aerospace Lear Cooperation Technology Technology Westmoor Center The Plaza Buildings Denver Seattle – 3.1 2.9 Bellevue/Redmond Risk Gogo Business Av
Slide 16: Portfolio Valuation
Portfolio Valuation 31 December 2021 FV gain/(loss) on 31 December 2022 Change Property Capex Disposal (US$ ‘million) (US$ ‘million) Investment Property (US$ ‘million) The Plaza Buildings 339.0 5.8 - (4.8) 340.0 1.0 Seattle, Bellevue CBD Bellevue Technology Center 151.0 9.3 - (5.3) 155.0 4.0 Seattle
Slide 17: Last 12 Months Rent Growth
Last 12 Months Rent Growth 1.1% Key Growth Markets Average 1.0% United States Average 1.1% Gateway Cities Average 0.3% US Average Seattle, Bellevue CBD 0.2% Seattle, Eastside Bellevue 1.7% Seattle, Redmond 1.7% Austin, Northwest 1.2% Denver, Northwest Denver, Broomfield 0.9% 1.9% 1.0% Nashville, Bre
Slide 18: Projected 12-Month Rent Outlook
Projected 12-Month Rent Outlook Key Growth Markets Average United States Average 0.3% 1.2% 0.3% Gateway Cities Average -1.1% US Average Seattle, Bellevue CBD 1.1% Seattle, Eastside Bellevue 1.0% Seattle, Redmond 1.0% Austin, Northwest -1.6% Denver, Northwest Denver, Broomfield 1.1% 0.8% 1.2% Nashvil
Slide 19: First Choice Submarkets Outlook
First Choice Submarkets Outlook Property Submarket Last 12M Last 12M Under Last 12M Projected Submarket Vacancy Rate Vacancy Rate Deliveries Absorption Construction Rental Growth Rental Growth Property (%) (%) (sf’000) (sf’000) (sf’000) (%) (%) Seattle, Bellevue CBD 7.7 5.8 16 21 5,214(1)* 0.2 1.1 T
Slide 20: 2022 Sustainability Achievements
2022 Sustainability Achievements Execute sound fiscal and asset management strategy to drive growth and long-term value for Unitholders ENVIRONMENTAL STEWARDSHIP RESPONSIBLE BUSINESS ✓ Established a dedicated Board ESG ✓ Maintain high standards of ethical Committee business conduct and compliance ✓
Slide 21: Market Outlook
Market Outlook Westmoor Center Denver, Colorado
Slide 22: U.S. Economic Updates
U.S. Economic Updates (2) % Unemployment Rate (2) % Labour Force Participation Rate 20 66 65 • US real GDP increased by 2.9% 15 64 quarter-on-quarter in 4Q 2022(1). 63 10 62 • Unemployment rate remained consistent at 5 61 3.5% in December 2022. The unemployment 60 rate has been in a narrow range of
Slide 23: Incremental Growth in the U.S. Economy
Incremental Growth in the U.S. Economy Real GDP Percent Change at Annual Rate(1), 2022: Q2 – 2022: Q3 Key Growth Markets Average 5.4% 3.2% United States Average 3.2% US Average Gateway Cities Average 2.8% Seattle 3.5% Austin 8.2% Denver 3.5% Nashville Houston 3.9% 8.2% 5.4% Dallas 8.2% Key Growth Or
Slide 24: Investors placing emphasis on income stability
Investors placing emphasis on income stability Reflecting emphasis on core and core-plus strategies When evaluating potential acquisitions, what are the main factors that CBRE clients are currently considering?(1)(2) Potential for rental uplift (revert passing rents to market rents) Investors 61% pr
Slide 25: California's Business Exits
California’s Business Exits California lost a total of 352 headquarters in the period January 1, 2018 through December 31, 2021 • Los Angeles and San Francisco counties have experienced the highest number of relocations, to growth markets where KORE is present. California Headquarters Losses From Ja
Slide 26: Relocations Out of California
Relocations Out of California Top 10 states for California relocations (1) Rank State Known Relocations 1 Texas 132 2 Tennessee 31 3 Nevada 25 • High cost of buildings are driving large 4 Florida 24 corporations away from California. 5 Arizona 21 • Housing affordability crisis another reason 6 Color
Slide 27: First choice US office S-REIT focused on fast-growing sectors
Strategic presence in some of the fastest growing states in the U.S. First choice Exposure to the fast-growing TAMI, medical and healthcare sectors provides US office S-REIT income resilience. focused on the fast-growing TAMI, medical and Highly diversified portfolio with low tenant concentration ri
Slide 28: Thank You
Thank You For more information, please visit www.koreusreit.com Connect with us on: Lobby space at 1800 West Loop Houston, Texas
Slide 29: Additional Information
Additional Information The Plaza Building Redmond, Seattle, Washington
Slide 30: Trust Structure
Sponsors(2) Trust Structure Keppel Capital KPA Unitholders Keppel Capital International Keppel ✓ No withholding (1)tax in relation to Trustee Management Management Agreement Section 1446(f) Services Fees Keppel Pacific Oak US REIT Trustee Management Trustee Management (Manager) ✓ Tax-efficient struc
Slide 31: Strong Sponsors: Keppel Capital and KORE Pacific Advisors
Strong Sponsors: Keppel Capital and KORE Pacific Advisors (2) • Asset management arm of Keppel Corporation • Established commercial real estate investment and a premier manager in Asia manager in the US • US$31 billion(1) • US$4.0 billion Global assets under management as at end-2021 Assets under ma
Keppel Pacific Oak US REIT — FY2022 Earnings Presentation on 6ix