Keppel REIT · SGX:K71U
Keppel REIT — Q1 2011 Earnings Presentation
26 slides from Keppel REIT's earnings presentation, Apr 14, 2011
Slide 1: First Quarter 2011 Financial Results
First Quarter 2011 Financial Results 14 April 2011 Building Strengths. Defining Distinction.
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 1Q 2011 Highlights Financial Performance Portfolio Analysis Capital Management Market Review and Outlook Going Forward Additional Information 3
Slide 4: 1Q2011 Highlights
1Q2011 Highlights 1Q2011 Distribution per unit 34.6% y-o-y 1Q2011 Distributable income 36.1% y-o-y 1Q2011 Net property income 7.6% y-o-y 1Q2011 Share of results of associated companies 194.0% y-o-y Singapore portfolio occupancy of 99.0% is higher than core CBD’s 94.4%1 Proposed acquisition of f
Slide 5: Financial Performance
K-REITaSi. Financial Performance
Slide 6: 1Q2011 Distributable Income up 36% y-o-y
1Q2011 Distributable Income 36% y-o-y 1Q 2011 1Q 2010 Change Property Income $18.7m $18.2m $0.5m 2.5% Net Property Income $14.9m $13.9m $1.0m 7.6% Share of Results of $6.2m $2.1m $4.1m 194.0% Associated Companies Distributable Income to Unitholders $24.3m $17.8m $6.4m 36.1% Distribution Per Unit (
Slide 7: 1Q2011 DPU up 4.7% q-o-q
1Q2011 DPU 4.7% q-o-q 1Q 2011 4Q 2010 Change Property Income $18.7m $21.4m -$2.7m(2) -12.6% Net Property Income $14.9m $17.5m -$2.6m(2) -14.7% Share of Results of $6.2m $3.3m $2.9m 87.4% Associated Companies Distributable Income to Unitholders $24.3m $23.2m $1.1m 4.7% Distribution Per Unit (“DPU”)
Slide 8: Healthy Balance Sheet
Healthy Balance Sheet As at As at 31 Mar 2011 31 Dec 2010 Non-current Assets $3,043.7m $3,043.9m Total Assets $3,112.1m $3,115.9m Borrowings $1,002.6m(2) $989.9m(2) Total Liabilities $1,089.1m $1,060.4m Unitholders’ Funds $2,023.0m $2,055.6m Net Asset Value (NAV) Per Unit $1.49 $1.52 Adjusted NAV Pe
Slide 9: Portfolio Analysis
K-REITaSi. Portfolio Analysis
Slide 10: Portfolio Occupancy Rate
Portfolio Occupancy Rate Singapore property portfolio is 99.0% occupied compared with core CBD of 94.4% 120% Portfolio Occupancy 100.0% 100.0% 100.0% 97.4% 99.8% 96.9% 100% Singapore core CBD occupancy = at 94.4%2 80% 71.8% 60% 40% 20% 0% Bugis Junction One Raffles Prudential MBFC Phase 1 275 George
Slide 11: Portfolio Lease Profile
Portfolio Lease Profile Well-balanced lease renewal and rent review profile Portfolio Lease Profile (by Net Lettable Area) 14.3% 12.9% 10.7% 7.8% 7.2% 7.4% 6.1% 5.2% 2.9% 0.0% 2011 2012 2013 2014 2015 Leases expiring as a percentage of total portfolio NLA Rent reviews as a percentage of total portfo
Slide 12: Stable Lease Portfolio
Stable Lease Portfolio Portfolio of long leases provides income stability Weighted Average Lease Expiry (WALE) Top Ten Tenants WALE 8.72 years Portfolio WALE 7.45 years Portfolio with Long-term Leases1 by NLA Short-term Long-term leases leases1 39.0% 61.0% 1. Long-term leases are those with lease te
Slide 13: Blue-Chip Tenant Base
Blue-Chip Tenant Base Top Ten Tenants account for 55.1% of total portfolio NLA Top Ten Tenants Standard Chartered Bank 9.9% Telstra Corporation 8.8% Barclays Capital Service 6.7% Deutsche Bank 5.3% I.E.Singapore 4.5% BHP Billiton 4.4% UBS AG 4.3% Marina Bay Financial Centre Keppel Land Internation
Slide 14: Diversified Tenant Mix
Diversified Tenant Mix Stable of quality tenants across various business sectors Retail (Exclude F&B Telecommunications and services) Accounting & & multi-media 1.5% Legal consultancy services 9.4% 2.4% 2.6% F&B 1.1% Energy & natural resources 7.9% Shipping & marine services Banking, insurance & 0.3
Slide 15: Capital Management
K-REITAS| Capital Management
Slide 16: Healthy Financial Position
Healthy Financial Position 81% of property portfolio unencumbered As at 31 Mar 2011 Gross Borrowings1 $1,306 m Aggregate Leverage 37.4% All-in Interest Rate 2.74% Interest Coverage Ratio2 4.4 times Weighted Average Term to Expiry 3.9 years 1. Includes borrowings accounted for at the level of associa
Slide 17: Debt Maturity Profile
Balance Debt Maturity Profile Well-staggered debt expiry profile with 3.9 years term to expiry $’ mil Debt Maturity Profile $1,000 $8251 $800 $600 $400 $221 $200 $160 $100 $0 $0 2011 2012 2013 2014 2015 1. Includes borrowings accounted for at the level of associated companies. 17
Slide 18: Market Review and Outlook
K-REITaSi. Market Review and Outlook
Slide 19: Singapore Office Market
Singapore Office Market Office rentals continue to strengthen $30 120% $25 97.1% 96.2% 95.4% 93.3% 95.2% 95.3% 94.4% 100% 93.1% 91.5% 91.2% 91.2% 91.9% Average Rentals S$ psf pm $20 $18.80 80% Core CBD Occupancy $15.00 $15 $16.10 60% $12.90 $10.15 $9.90 $10.30 $10 $8.45 $9.00 40% $8.10 $8.00 $8.60 $
Slide 20: Economic Outlook
Economic Outlook Singapore GDP expanded 8.5% in 1Q2011 and 14.5% for FY2010 Overall growth supported by manufacturing, construction and Economy services industries remains Government expects positive GDP growth to be sustained at around buoyant 3% to 5% for the next few years Attractive investment e
Slide 21: Going Forward
K-REITAS| Going Forward
Slide 22: 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 23: Additional Information
K-REITAS| Additional Information
Slide 24: Singapore's Leading Office REIT
Singapore’s Leading Office REIT Vision To be a successful commercial real estate investment trust with a sterling portfolio of assets pan-Asia Mission To deliver stable and sustainable returns to Unitholders by continually enhancing our assets and expanding our portfolio. Listed on the SGX-ST in Apr
Slide 25: Portfolio Information
Portfolio Information Bugis Junction Prudential Tower 77 King Street As at 31 Mar 2011 MBFC 1(2) One Raffles Quay 275 George Street Towers Property Office Tower Attributable NLA (sf) 246,238 581,928 445,120 175,673 224,686 148,025 Ownership 100% 33.3% 33.3% 73.4%(3) 50.0% 100% Number of tenants 11 6
Slide 26: Thank you
Thank you Fax: 6835 7747 http://www.kreitasia.com For enquiries, please contact Ms Casiopia Low Investor Relations & Research Tel: 6433 7622 Email: casiopia.low@kreitasia.com 26