Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — Q1 2019 Earnings Presentation
26 slides from Keppel Dc Reit's earnings presentation, Apr 15, 2019
Slide 1: First Quarter 2019 Financial Results
First Quarter 2019 Financial Results 15 April 2019
Slide 2: Important Notice
Important Notice The past performance of Keppel DC REIT 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 assump
Slide 3: Contents
Contents ◼ Key Highlights ◼ Financial Performance ◼ Capital Management ◼ Portfolio Update ◼ Outlook ◼ Additional Information 3
Slide 4: Key Highlights
Key Highlights ▪ Steady y-o-y growth in distributable income and DPU, increasing 29.9% to $27.1m and 6.7% to 1.92 cents respectively in 1Q 2019 ▪ Stable income stream with healthy portfolio occupancy of 93.2% and long WALE of 8.0 years ▪ Diversified sources of funding with issuance of €50 million 7-
Slide 5: Financial Performance
Financial Performance [ic Dc REIT 5
Slide 6: Distributable Income
Distributable Income 1Q 2019 Financial Update +/(-) ($’000) 1Q 2019 1Q 2018 % ▪ 6.7% y-o-y growth in DPU Distributable Income to Unitholders 27,109 20,867 +29.9 mainly contributed by new acquisitions Comprising Gross Revenue 48,033 38,008 +26.4 ▪ Issued €50 million 7-year floating rate notes due 202
Slide 7: Balance Sheet Highlights
Balance Sheet Highlights As at As at +/(-) ($’000) 31 Mar 2019 31 Dec 2018 % Investment Properties 2,032,061 2,028,672 +0.2 Total Assets 2,260,245 2,259,144 - Gross Borrowings1 714,231 673,952 +6.0 Total Liabilities 811,247 783,150 +3.6 Unitholders’ Funds 1,417,667 1,444,839 (1.9) Units in Issue (’0
Slide 8: Aggregate Leverage
Aggregate Leverage As at As at +/(-) ($’000) 31 Mar 2019 31 Dec 2018 % Investment Properties1 (excluding lease liabilities commitments) 1,999,332 1,995,206 +0.2 Deposited Properties1 (excluding lease liabilities commitments) 2,195,267 2,187,396 +0.4 Gross Borrowings + Deferred Payment 714,231 673,95
Slide 9: Capital Management
Capital Management [ic Dc REIT 9
Slide 10: Prudent Capital Management
Prudent Capital Management ◼ Managing interest rate exposure: Interest rates of loans Borrowings on fixed rate As at 31 Mar 2019 substantially hedged with floating-to-fixed interest rate swaps ◼ Diversifying sources of funding: Issuance of €50m 7-year Fixed Floating floating rate notes due 2026 Rate
Slide 11: Prudent Capital Management
Prudent Capital Management Mitigating impact of currency fluctuations: Investment properties breakdown1 Debt currency breakdown (as at 31 Mar 2019) (as at 31 Mar 2019) ▪ Hedged forecasted foreign-sourced distributions till 2H 2020 through foreign currency forward contracts Italy Ireland 2.8% ▪ Adopt
Slide 12: Portfolio Update
Portfolio Update yy) DC REIT 12 f
Slide 13: Diversified and Resilient Portfolio
Diversified and Resilient Portfolio Portfolio Update ▪ 67.4% of portfolio in Asia ▪ Healthy portfolio occupancy of ▪ Keppel DC Singapore 3 Pacific and 32.6% in Europe 93.2% and long WALE of 8.0 years ̶ Retrofitting works to make way for expansion within a client’s premises Portfolio AUM breakdown Le
Slide 14: Diversified and Resilient Portfolio
Diversified and Resilient Portfolio ◼ Quality data centres that cater to the requirements of global Rental income breakdown for the month of Mar 20191 clientele By trade sector: • Colocation facilities provide diverse client profile and lease expiry Internet • Fully-fitted and shell & core facilitie
Slide 15: Outlook
Outlook yy) DC REIT 15 ff
Slide 16: Supported by Sound Industry Fundamentals
Supported by Sound Industry Fundamentals Total mobile data traffic Global co-location market predicted to increase by 31% expected to grow by 15-17% in CAGR by 2024, reaching 136 20191 exabytes per month by end 20242 Global cloud infrastructure Hyperscale operator revenues market expected to grow by
Slide 17: Positioned for Growth
Positioned for Growth Ireland Keppel DC Dublin 1, Dublin Keppel DC Dublin 2, Dublin The Manager will continue to strengthen United Kingdom Keppel DC REIT’s presence and position GV7 Data Centre, London it to capitalise growth opportunities in Cardiff Data Centre, Cardiff the data centre industry The
Slide 18: Committed to Deliver Value
Committed to Deliver Value ▪ Vision: To be the preferred data centre real estate investment trust, serving as a trusted partner to our stakeholders. ▪ Mission: Guided by the Keppel Group’s operating principles and core values, we will create value for our investors by growing a quality portfolio of
Slide 19: Additional Information
Additional Information [ic Dc REIT 19
Slide 20: Portfolio Growth since Listing
Portfolio Growth since Listing maincubes Keppel DC Intellicentre 3 Keppel DC Singapore 3 Keppel DC Dublin 2 East Data Centre1 Data Centre Singapore 5 Cardiff Data Centre Milan Data Centre Intellicentre 2 31 Dec 2018 Data Centre 31 Dec 2017 AUM: $2.0b 31 Dec 2016 31 Dec 2015 AUM: $1.5b 15 assets AUM:
Slide 21: Keppel DC REIT Structure
Keppel DC REIT Structure Keppel Keppel Capital Telecommunications & Transportation Institutional and The REIT Manager can leverage The REIT Manager can leverage Public Investors the scale and resources of a larger the Sponsor‘s expertise and track asset management platform record in this industry 50
Slide 22: Portfolio Overview (as at 31 Mar 2019)
Portfolio Overview (as at 31 Mar 2019) Attributable No. of Occupancy Valuation2 WALE Asia Pacific Location Interest lettable area clients1 rate (%) ($m) Lease type (years) Land lease title (sq ft) Leasehold Keppel DC Keppel lease / Singapore 100% 109,721 17 86.9 287.0 3.0 (Expiring 30 Sep 2025, Sing
Slide 23: Portfolio Overview (as at 31 Mar 2019)
Portfolio Overview (as at 31 Mar 2019) Attributable No. of Occupancy Valuation2 WALE Europe Location Interest lettable area (sq ft) clients1 rate (%) ($m) Lease type (years) Land lease title Cardiff, Triple-net Cardiff Data Centre 100% 79,439 1 100.0 67.0 12.2 Freehold United Kingdom (Shell & core)
Slide 24: Overview of Lease Arrangements
Overview of Lease Arrangements Asia Pacific Responsibilities of Owner Maintenance Lease Insurance Property Description Property Building Arrangement Refresh Capex Opex Tax Keppel lease1 / ◼ Client: Pays rent Keppel DC Singapore 1 ✓ ✓ ✓ ✓ Colocation3 ◼ Owner: Bears all expenses; responsible for facil
Slide 25: Overview of Lease Arrangements
Overview of Lease Arrangements Europe Responsibilities of Owner Maintenance Lease Insurance Property Description Property Building Arrangement Refresh Capex Opex Tax Cardiff Data Centre Triple-net lease ◼ Client: Pays rent and all outgoings; responsible for facilities management - - - - GV7 Data Cen
Slide 26: Thank You
Thank You yy) DC REIT 26 ff