Kore Us Reit · SGX:CMOU
Kore Us Reit — Keppel Pacific Oak US REIT — Q3 2022 Earnings Presentation
25 slides from Kore Us Reit's earnings presentation, November 2022
Slide 1: Investor Presentation
Investor Presentation November 2022
Slide 2: Important Notice
Important Notice 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, Content Outline u
Slide 3: 3Q 2022 Key Highlights
3Q 2022 Key Highlights Bridge Crossing Nashville, Tennessee
Slide 4: Financial Performance
Financial Performance Financial Highlights Adjusted Distributable Income for 3Q 2022 3Q 2021 % 9M 2022 9M 2021 % 3Q 2022 was up 2.1% year-on-year to (US$ ’m) (US$ ’m) Change (US$ ’m) (US$ ’m) Change US$14.6m, supported by: • The acquisitions of Bridge Crossing in Gross Revenue 37.2 36.0 3.2 111.3 10
Slide 5: Stable Financial Position
Stable Financial Position Prudent capital management with 100% unsecured loans provide greater financial flexibility. No long-term refinancing obligations till Q4 2024. As at 30 September 2022 Debt Maturity Profile (as at 30 September 2022) Total Debt • US$577.7 million of external loans 100% of Loa
Slide 6: Quality Portfolio Driven By Tech and Innovation
SEATTLE – BELLEVUE/REDMOND, Washington ATLANTA, Georgia Quality Portfolio The Plaza Buildings Bellevue Technology Center Occupancy: 95.0% The Westpark Portfolio Powers Ferry(1) Occupancy: 68.6% Occupancy: 93.6% Occupancy: 96.8% Driven By NASHVILLE, Tennessee Tech and DENVER, Colorado Bridge Crossing
Slide 7: Steady Income with Visible Organic Growth
Steady Income with Visible Organic Growth New Renewal Expansion ~548,708sf New leasing demand and expansions from: Leased spaces for 9M 2022, equivalent to 11.2% of portfolio NLA. ~194,980 sf of 49.4% Finance and Insurance 27.2% space was leased in 3Q 2022. Portfolio 13.8% WALE of 3.5 years(3) by CR
Slide 8: 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 ~63% of NPI(1) defensive sectors of TAMI, medic
Slide 9: Low Tenant Concentration Risk
As at 30 September 2022 Top 10 Tenants Sector Asset Location % of CRI Low Tenant Comdata Inc Technology Bridge Crossing Nashville 3.5 Concentration Ball Aerospace Lear Cooperation Technology Technology Westmoor Center The Plaza Buildings Denver Seattle – 3.1 2.7 Bellevue/Redmond Risk Gogo Business A
Slide 10: Last 12 Months Rent Growth
Last 12 Months Rent Growth 1.2% Key Growth Markets Average 1.3% United States Average 1.2% Gateway Cities Average 0.2% US Average Seattle, Bellevue CBD 0.2% Seattle, Eastside Bellevue 2.0% Seattle, Redmond 2.0% Austin, Northwest 1.9% Denver, Northwest 1.7% Denver, Broomfield 1.7% 1.3% Nashville, Bre
Slide 11: Projected 12-Month Rent Outlook
Projected 12-Month Rent Outlook Key Growth Markets Average United States Average 1.4% 2.3% 1.4% Gateway Cities Average 0.4% US Average Seattle, Bellevue CBD 1.4% Seattle, Eastside Bellevue 1.5% Seattle, Redmond 1.5% Austin, Northwest 1.7% 2.3% Denver, Northwest 3.7% Denver, Broomfield 3.4% Nashville
Slide 12: Actual Against Forecasted 12-Month Market Rent Growth
Actual Against Forecasted 12-Month Market Rent Growth Majority of KORE’s portfolio outperformed the market rent growth projections from 12 months ago 3.0% 2.7% 2.5% 2.5% 2.5% 2.0% 2.0% 1.9% 2.0% 1.7% 1.5% 1.3% 1.0% 1.3% 0.7% 0.5% 0.5% 0.3% -0.3% 0.8% 0.6% 0.5% -0.8% 0.0% 0.4% 0.2% -0.5% -0.2% -0.2%
Slide 13: 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 6.4 5.5 675 696 4,774(1)* 0.2 1.4
Slide 14: Market Outlook
Market Outlook 105 Edgeview Denver, Colorado
Slide 15: U.S. Economic Updates
U.S. Economic Updates % Unemployment Rate % Labour Force Participation Rate 16 66 • US real GDP increased by 2.6% quarter-on-quarter in 3Q 2022(1). 14 65 • Unemployment rate rose to 3.7% in 12 64 October 2022. The unemployment rate has 10 been in a narrow range of 3.5% to 3.7% 63 since March 2022(2)
Slide 16: Incremental Growth in the U.S. Economy
Incremental Growth in the U.S. Economy Real GDP Percent Change at Annual Rate(1), 2022: Q1 – 2022: Q2 Key Growth Markets Average 0.5% 0.6% United States Average 0.6% US Average Gateway Cities Average -0.8% Seattle 0.6% Austin 1.8% Denver -2.0% Nashville Houston 0.3% 1.8% 0.5% Dallas 1.8% Key Growth
Slide 17: The Physical Office Is Here To Stay
The Physical Office Is Here To Stay New leases accounted for 70% of total leasing volume in Q2 2022 as tenants made more long-term commitments(1) ― Hybrid work is set to be the new norm. Return to Office Timeline(5) Question posed to corporate real estate executives: ― Even as some knowledge workers
Slide 18: U.S. Office Physical Occupancy Rebounds
U.S. Office Physical Occupancy Rebounds Occupancy levels showing signs of stabilisation and are expected to gradually improve for the rest of 2022 Kastle Back to Work Barometer(1) January 2020 – November 2022 100% 90% 80% 70% 60% 48.1% 50% 40% 30% 20% Sharp decrease in wake of Omicron 10% variant an
Slide 19: First choice US office S-REIT focused on TAMI, medical and healthcare
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 20: Thank You
Thank You For more information, please visit www.koreusreit.com Connect with us on: The Plaza Building Redmond, Seattle, Washington
Slide 21: Additional Information
Additional Information Iron Point Sacramento, California
Slide 22: 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 23: 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 SEATTLE ❖ The Plaza Buildings ❖ Bellevue Technology Center ❖ The Westpark Portfolio #9 #9 Seattle Austin, Texas ❖ Westech 360 #4 #
Slide 24: Advancing Sustainability, Creating Value
Advancing Sustainability, Creating Value Execute sound fiscal and asset management strategy to drive growth and long-term value for Unitholders PEOPLE & COMMUNITY Singapore ✓ Uplift communities wherever Governance 9th Governance 2nd we operate and out of 44 Index for out of 45 S-REITs and S-REITs an
Slide 25: 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
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