Slide 1: Third Quarter & Nine Months 2018 Financial Results
Third Quarter & Nine Months 2018 Financial Results 16 October 2018
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: Content
Content Key Highlights Financial Performance Capital Management Portfolio Review Outlook Additional Information 2
Slide 4: Key Highlights
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Slide 5: Key Highlights
Key Highlights $ € £ DPU1 Portfolio Occupancy Aggregate Leverage2 5.47 cents 93.1% 32.0% for 9M 2018 as at 30 Sep 2018 as at 30 Sep 2018 Annualised Distribution Yield Portfolio WALE Interest Coverage 5.32% 8.5 years 11.2 times based on 3Q 2018’s by leased area as at 30 Sep 2018 closing price of $1.3
Slide 6: Financial Performance
Financial Performance
Slide 7: Distributable Income
Distributable Income +/(-) +/(-) ($’000) 3Q 2018 3Q 2017 9M 2018 9M 2017 % % Distributable Income to Unitholders 26,024 20,179 +29.0 69,970 62,075 +12.7 Comprising: Gross Revenue 47,557 35,483 +34.0 127,492 102,222 +24.7 Property Expenses (4,514) (3,219) +40.2 (12,286) (9,751) +26.0 Net Property Inc
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights As at As at +/(-) ($’000) 30 Sep 2018 31 Dec 2017 % Investment Properties 1,999,991 1,570,090 +27.4 Total Assets 2,199,543 1,763,282 +24.7 Gross Borrowings1 682,882 546,481 +25.0 Total Liabilities 789,748 646,780 +22.1 Unitholders’ Funds 1,381,587 1,089,716 +26.8 Units in Is
Slide 9: Aggregate Leverage
Aggregate Leverage As at As at +/(-) ($’000) 30 Sep 2018 31 Dec 2017 % Investment Properties1 1,966,222 1,536,321 +28.0 (excluding finance lease liabilities commitments) Deposited Properties1 2,134,918 1,701,350 +25.5 (excluding finance lease liabilities commitments) Gross Borrowings + Deferred Paym
Slide 10: Capital Management
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Slide 11: Prudent Capital Management
Prudent Capital Management Borrowings on fixed rate Managing interest rate exposure: Interest rates of loans As at 30 Sep 2018 substantially hedged with floating-to-fixed interest rate swaps Diversifying sources of funding: Issuance of €50 million floating Fixed Floating rate notes due 2023 Rate
Slide 12: Prudent Capital Management (Cont'd)
Prudent Capital Management (Cont’d) Mitigating impact of currency fluctuations: • Hedged forecasted foreign-sourced distributions till 1H 2020 through foreign currency forward contracts • Adopted natural hedging by borrowing in currencies that match the corresponding investments Debt currency brea
Slide 13: Portfolio Review
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Slide 14: Portfolio Growth since Listing
Portfolio Growth since Listing maincubes Keppel DC Intellicentre 3 Keppel DC Singapore 3 Keppel DC Dublin 2 Data Centre Singapore 5 East Data Centre1 Cardiff Data Centre Milan Data Centre Intellicentre 2 30 Sep 2018 Data Centre 31 Dec 2017 AUM: $1.95b 31 Dec 2016 31 Dec 2015 AUM: $1.51b 15 assets 12
Slide 15: Expand Footprint in Sydney, Australia
Expand Footprint in Sydney, Australia Entered into agreement with Macquarie Telecom (MT) to construct Intellicentre 3 East Data Centre (IC3 East DC) on vacant land within Intellicentre 2 Data Centre (IC2 DC) site Expected to be DPU-accretive Payment for the shell and core data centre will be m
Slide 16: Portfolio Update
Portfolio Update 66.1% of portfolio in Asia Pacific and 33.9% in Europe Long portfolio WALE of 8.5 years and strong occupancy rate of 93.1% Less than 5% of the leases expiring per year until end-2020 Portfolio AUM1 breakdown Lease expiry profile (by leased area) As at 30 Sep 2018 As at 30 Sep
Slide 17: Portfolio Update (Cont'd)
Portfolio Update (Cont’d) Rental income breakdown for the month of Sep 20181 Quality data centres that cater to the requirements of global clientele By trade sector: • Colocation facilities provide diverse client profile Internet and lease expiry enterprise Corporate 45.0% • Fully fitted and shell
Slide 18: Outlook
Outlook
Slide 19: Sound Industry Fundamentals
Sound Industry Fundamentals Demand for data centre space underpinned by increasing digitalisation and cloud adoption, data centre outsourcing, and data sovereignty regulations Many hyperscale cloud players are only about a third of the way through their planned data centre build-outs1, signallin
Slide 20: Positioned for Growth
Positioned for Growth The Manager will continue to strengthen Keppel DC REIT’s presence and position it to capitalise growth opportunities in the data centre industry Ireland Keppel DC Dublin 1, Dublin Keppel DC Dublin 2, Dublin Proactive United Kingdom Asset 1 Management GV7 Data Centre, London C
Slide 21: 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 data
Slide 22: Additional Information
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Slide 23: Keppel DC REIT Structure
Keppel DC REIT Structure Keppel Telecommunications Keppel Capital & 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 24: Portfolio Overview (as at 30 Sep 2018)
Portfolio Overview (as at 30 Sep 2018) Attributable Asia Pacific lettable area No. of Occupancy Valuation2 WALE Location Interest (sq ft) clients1 rate (%) ($m) Lease type (years) Land lease title Leasehold Keppel DC Keppel lease / Singapore 100% 109,721 16 86.6 286.0 3.5 (Expiring 30 Sep 2025, with
Slide 25: Portfolio Overview (as at 30 Sep 2018) (Cont'd)
Portfolio Overview (as at 30 Sep 2018) (Cont’d) Attributable No. of Occupancy Valuation2 WALE Europe Location Interest lettable area Lease type Land lease title clients1 rate (%) ($m) (years) (sq ft) Cardiff, Triple-net Cardiff Data Centre United 100% 79,439 1 100.0 60.4 12.7 Freehold (Shell & core)
Slide 26: Overview of Lease Arrangements
Overview of Lease Arrangements Asia Pacific Responsibilities of Owner Maintenance Lease Property Description Insurance Arrangement Property Building Refresh Capex Opex Tax Keppel lease1 / Client: Pays rent Keppel DC Singapore 1 Colocation3 Owner: Bears all expenses; responsible for facil
Slide 27: Overview of Lease Arrangements (Cont'd)
Overview of Lease Arrangements (Cont’d) 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
Slide 28: Thank you.
Thank you. LG yt) DC REIT 27