Keppel REIT · SGX:K71U
Keppel REIT — K-REIT Asia — FY2010 Earnings Presentation
30 slides from Keppel REIT's earnings presentation, Jan 20, 2011
Slide 1: FY2010 Financial Results
FY2010 FINANCIAL RESULTS 20 January 2011 1
Slide 2: Important Notice
Important Notice The past performance of K-REIT Asia 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 and assumptio
Slide 3: Contents
Contents 4Q 2010 Highlights Financial Performance Capital Management Portfolio Analysis Market Review and Outlook Going Forward Additional Information 3
Slide 4: 4Q 2010 Highlights
4Q 2010 Highlights FY2010 net property income 37.7%y-o-y FY2010 distributable income 21.4% y-o-y Increased 4Q 2010 net property income 30.2% y-o-y Earnings 4Q 2010 distributable income 19.4% y-o-y Singapore portfolio committed occupancy of 98.7% is Consistent higher than the core C
Slide 5: 2H 2010 Distribution Per Unit
2H 2010 Distribution Per Unit Estimated Distribution Per Unit 3.38 cents Distribution Period From 1 July 2010 to 31 December 2010 Distribution Timetable Trading on “Ex” Basis Wednesday, 26 January 2011 Books Closure Date Friday, 28 January 2011 Distribution Payment Date Friday, 25 February 2011 5
Slide 6: Financial Performance
<-REITASIA Financial Performance
Slide 7: FY2010 Net Property Income up 38% y-o-y
FY2010 Net Property Income 38% y-o-y FY 2010 FY 2009 Change Property Income $84.6m $62.8m $21.8m 34.6% Net Property Income $67.3m $48.9 m $18.4m 37.7% Share of Results of $9.7m $8.2m $1.5m 18.1% Associated Companies Distributable Income to $85.6m $70.5m $15.1m 21.4% Unitholders Distribution Per Un
Slide 8: 4Q 2010 Net Property Income up 30% y-o-y
4Q 2010 Net Property Income 30% y-o-y 4Q 2010 4Q 2009 Change Property Income $21.4m $17.0m $4.3m 25.5% Net Property Income $17.5m $13.4m $4.1m 30.2% Share of Results of $3.3m $1.3m $2.0m 153.9% Associated Companies Distributable Income to $23.2m $19.4m $3.8m 19.4% Unitholders Distribution Per Unit
Slide 9: 4Q 2010 DPU up 1.2% q-o-q
4Q 2010 DPU 1.2% q-o-q 4Q 2010 3Q 2010 Change Property Income $21.4m $21.8m -$0.4m(2) -1.8% Net Property Income $17.5m $17.5m -$0.0m(2) -0.1% Share of Results of $3.3m $1.9m $1.3m 69.1% Associated Companies Distributable Income to $23.2m $22.7m $0.5m 2.1% Unitholders Distribution Per Unit (“DPU”) -
Slide 10: Healthy Balance Sheet
Healthy Balance Sheet As at As at 31 Dec 2010 31 Dec 2009 Non-current Assets $3,043.9m $2,044.6m Total Assets $3,115.9m $2,631.6m Borrowings $989.9m(2) $578.9m Total Liabilities $1,060.4m $629.0m Unitholders’ Funds $2,055.6m $2,002.7m Net Asset Value (NAV) Per Unit $1.52 $1.50 Adjusted NAV Per Unit
Slide 11: Capital Management
<-REITASIA Capital Management
Slide 12: Healthy Financial Position
Healthy Financial Position All-in interest rate of 2.75% as at 31 Dec 2010 As at 31 Dec 2010 Gross Borrowings(1) $1,289.9m Aggregate Leverage 37.0% All-in Interest Rate(2) 2.75% Interest Coverage Ratio(3) 5.6 times Weighted Average Term to Expiry 4.2 years (1) Includes borrowings accounted for at
Slide 13: Balance Debt Profile
Balance Debt Profile All-in cost of borrowings to 2.75% as at 31 Dec 2010 from 3.40% as at 30 Sep 2010 Portfolio encumberance to 19.0% as at 31 Dec 2010 from 44.8% as at 30 Sep 2010 Debt weighted term to maturity increased to 4.2 years from 1.4 years Well-staggered debt expiry profile $'
Slide 14: Portfolio Analysis
<-REITASIA Portfolio Analysis
Slide 15: Portfolio Occupancy Rate
Portfolio Occupancy Rate Singapore portfolio occupancy 98.7% is higher than core CBD’s of 95.3% Portfolio Occupancy 100.0% 100.0% 100.0% 99.8% 97.0% 100.0% 96.6% 90.0% Singapore Core CBD Occupancy (2) = 95.3% 80.0% 76.7% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Bugis Junction One Raffles Pru
Slide 16: Portfolio Lease Profile
Portfolio Lease Profile Lease expiries and rent reviews well staggered from 2011 to 2015 Weighted average lease term to expiry of 7.65 years Portfolio Lease Profile by NLA 13.9% 12.9% 11.1% 7.8% 7.8% 7.0% 7.2% 7.4% 5.5% 2.3% 2011 2012 2013 2014 2015 Leases expiring as a percentage of total portf
Slide 17: Portfolio Occupancy Rate
Portfolio Occupancy Rate Weighted Average Lease Expiry (WALE) Portfolio WALE 7.65 years Top Ten Tenant WALE 8.82 years Portfolio with Long Lease Terms by NLA 36.9% Short-term Leases 63.1% Long-term Leases(1) 17 (1) Long –term leases are those with lease terms to expiry of at least 5 years
Slide 18: Blue-chip Tenant Base
Blue-chip Tenant Base Top Ten Tenants account for 55.4% of total Portfolio NLA Portfolio Top Ten Tenants by NLA 9.9% Standard Chartered Bank 8.8% Telstra Corporation Limited 6.7% Barclays Capital Service Limited Singapore Branch 5.3% Deutsche Bank Aktiengesellschaft 4.8% International Enterprise S
Slide 19: Diversified Tenant Mix
Diversified Tenant Mix Tenant Business Sector by NLA Telecommunications Retail (Exclude F&B & muliti-media and services) Accounting & 9.4% 1.5% consultancy services Legal 2.7% 2.4% F&B 1.1% Energy & natural resources 7.9% Shipping & marine services 0.3% 159 Tenants(1) in Banking, insurance & Service
Slide 20: Market Review and Outlook
-REITASId Market Review and Outlook
Slide 21: Singapore Office Market
Singapore Office Market Economic rebound supports Singapore office market recovery $20 95.4% 93.3% 95.2% 95.3% 100% 93.1% 91.9% $18 91.5% 91.2% 91.2% 95% $16 15.00 90% Average Rentals S$ psf pm $14 85% Core CBD Occupancy 12.90 12.30 $12 80% 10.50 10.15 9.90 $10 8.60 8.80 9.00 75% 8.10 8.00 8.45 8.30
Slide 22: Economic Growth Anchors Demand for Office Space
Economic Growth Anchors Demand for Office Space Singapore GDP achieves 14.7% growth in FY2010 GDP expanded 12.5% in 4Q2010 y-o-y Positive GDP expected to expand 4% - 6% in 2011 economic outlook Manufacturing and services industries grew 28.2% and 8.8% respectively in 4Q2010 Relocating occupa
Slide 23: Going Forward
<-REITasia Going Forward
Slide 24: Key Thrusts
Key Thrusts Active Acquisition Prudent Capital Asset Growth Management Management Pursue opportunities Manage assets and cost Attract creditworthy tenants for acquisitions in structure more effectively to increase occupancy as Singapore and well as retain good existing pan-Asia Exercise prudent inte
Slide 25: Thank you
Thank you For queries, please contact Ms Casiopia Low Investor Relations & Research Tel: 6433 7622 Fax: 6835 7747 Email: casiopia.low@kreitasia.com http://www.kreitasia.com 25
Slide 26: Additional Information
-REITASId Additional Information
Slide 27: Singapore's Leading Office REIT
Singapore’s Leading Office REIT Vision: To be the office real estate investment trust of choice renowned for its sterling portfolio of pan-Asian assets. Listed on the SGX-ST in April 2006 with a market cap of S$1.9bn1 as at 31 Dec 2010 Quality portfolio of 6 commercial Grade A office assets valu
Slide 28: 90% of Singapore Portfolio Located in Raffles Place and Marina Bay area
90% of Singapore Portfolio Located in Raffles Place and Marina Bay area 28
Slide 29: Portfolio of Quality Assets
Portfolio of Quality Assets Bugis Junction Marina Bay Financial Centre Prudential Tower Towers Towers 1 & 2, & Marina Bay Link Mall One Raffles Quay One Raffles Quay 275 George Street 77 King Street South Tower North Tower Brisbane, Australia Sydney, Australia 29 29
Slide 30: Portfolio Information
Portfolio Information Bugis Junction Prudential Tower 77 King Street As at 31 Dec 2010 MBFC 1(2) One Raffles Quay 275 George Street Towers Property Office Tower Attributable NLA 246,238 581,478 445,120 175,672 224,686 148,025 (sf) Ownership 100% 33.3% 33.3% 73.4% 50.0% 100% Number of tenants 11 68 3