Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — H1 2015 Earnings Presentation
30 slides from Keppel Dc Reit's earnings presentation, Jul 15, 2015
Slide 1: First Half 2015 Financial Results
First Half 2015 Financial Results 15 July 2015
Slide 2: Important Notice
Important Notice DBS Bank Ltd. and Standard Chartered Securities (Singapore) Pte. Limited are the Joint Financial Advisers and Issue Managers to the initial public offering of Keppel DC REIT (the “Offering”). DBS Bank Ltd., Standard Chartered Securities (Singapore) Pte. Limited and Credit Suisse (Si
Slide 3: Content
Content Key Highlights Financial Review Portfolio Performance Capital Management Outlook 2
Slide 4: Key Highlights
Key Highlights
Slide 5: Key Highlights
Key Highlights Net property income outperformed IPO forecast1 by 2.6% for the period from listing date of 12 December 2014 to 30 June 2015 Distributable income was 1.6% higher than IPO forecast1 Distribution per unit of 3.56 cents declared Annualised distribution yield2 was 11bps above IPO f
Slide 6: Financial Review
Financial Review
Slide 7: YTD Distributable Income
YTD Distributable Income YTD Actual1 Forecast2 Variance (S$’000) (S$’000) (%) Distributable Income to Unitholders3 31,432 30,949 +1.6 Distribution Per Unit (Cents) 3.56 3.51 +1.6 Distribution Yield4 6.95% 6.84% +11bps Comprising: Gross Revenue 57,177 55,263 +3.5 Property Expenses (9,098) (8,418) +8.
Slide 8: 2Q 2015 Distributable Income
2Q 2015 Distributable Income 2Q Actual1 Forecast2 Variance (S$’000) (S$’000) (%) Distributable Income to Unitholders3 14,272 14,010 +1.9 Comprising: Gross Revenue 26,027 25,019 +4.0 Property Expenses (4,102) (3,812) +7.6 Net Property Income 21,925 21,207 +3.4 Notes: (1) Actual income available for d
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights As at 30 Jun 2015 (S$’000) Investment Properties1 1,013,499 Total Assets1 1,115,414 Gross Borrowings 286,035 Total Liabilities 335,726 Unitholders’ Funds 779,274 Units in Issue (‘000) 882,930 Net Asset Value (“NAV”) per Unit (S$) 0.883 Unit Price (as at 30 June 2015) (S$) 1.
Slide 10: Aggregate Leverage
Aggregate Leverage As at 30 Jun 2015 (S$’000) Investment Properties1 982,135 (excluding finance lease liabilities commitments) Total Assets1 1,084,050 (excluding finance lease liabilities commitments) Gross Borrowings2 286,035 Total Borrowings3 317,399 Aggregate Leverage 26.4%4 Notes: (1) Investment
Slide 11: Distribution Declared
Distribution Declared Distribution per unit of 3.56 cents declared for the period from the date of the listing, 12 December 2014 to 30 June 2015 Distribution yield1 Distribution Timetable 6.95% 6.84% Ex-Date Wednesday, 22 July 2015 Book Closure Date Friday, 24 July 2015 Payment Date Friday, 28 Aug
Slide 12: Portfolio Performance
Portfolio Performance
Slide 13: Global and Diverse Clientele
Global and Diverse Clientele Key features of portfolio: Geographically well-spread assets Well-diversified tenant profile anchored with established corporations Breakdown of portfolio1 Breakdown of rental income2 by geography by tenant’s trade sector Ireland, 9.7% Corporate, 4.4% IT services,
Slide 14: Proactive Lease Management
Proactive Lease Management Portfolio occupancy rate 94.0% 93.6% Strong commitment from tenants 93.5% translates to healthy occupancy rate and ensures income sustainability 30 Sep 2014 31Category Mar 20151 30 Jun 2015 as per Prospectus Lease expiry profile (as at 30 June 2015) Portfolio WALE of 7.2
Slide 15: Favourable Lease Mix
Favourable Lease Mix Augmenting long-term stability in double- or triple-net leases with well-spread lease expiries and tenant diversity in co-location assets Co-location Double- or triple-net leases WALE2 Rental income1 WALE2 breakdown by lease type3 10.5 years 2.6 years Fixed escalations Fix
Slide 16: Maiden Acquisition
Maiden Acquisition Portfolio growth with a new acquisition1 within 5 months after listing Sale and leaseback transaction with Macquarie Telecom for the shell and core building of Intellicentre 2 in Sydney Extending portfolio WALE to 9.1 years with the 20-year triple-net lease arrangement with
Slide 17: Capital Management
Capital Management
Slide 18: Prudent Capital Management
Prudent Capital Management Hedging policies optimise risk-adjusted returns to Unitholders: Interest rates are 100% fixed for the next 4 to 5 years Foreign-sourced distributions are 100% hedged for the forecast years of FY2015 and FY2016 Use of natural hedging to manage foreign currency risks P
Slide 19: Prudent Capital Management
Prudent Capital Management Debt maturity profile Approximately S$286m of term loans Total debt As at 30 June 2015 S$35m of undrawn revolving credit facility Aggregate 19.8% 26.4% Leverage1 Average cost 2.5% per annum for the financial period 45.5% of debt2 ended 30 June 2015 26.2% Debt tenor
Slide 20: Outlook
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Slide 21: Positive Growth Trends
Positive Growth Trends IDC1 projects that the digital universe will double in size every 2 years Cloud traffic2 E-commerce sales3 Annual data creation1 +37% in Asia Pacific +18% 44 zettabytes CAGR from 2013 to 2018 +26% in W. Europe by 2020 CAGR from 2013 to 2018 Sources: (1) IDC Digital Universe
Slide 22: Positive Growth Trends
Positive Growth Trends Utilisation rate expected to increase with supply lagging demand growth in Keppel DC REIT’s markets Singapore Kuala Lumpur Sydney (‘000 sq ft) Utilisation (%) (‘000 sq ft) Utilisation (%) (‘000 sq ft) Utilisation (%) 250 95% 150 80% 250 85% 200 200 85% 80% 100 70% 150 150 75
Slide 23: Service Excellence
Service Excellence Gaining recognition from accreditation organisations KDCREIT was added to the MSCI Singapore Small Cap Index T25 conferred the BCA-IDA Green Mark Gold PLUS Award for Data Centres S25 received the Singapore Standard 564 (SS564) for Green Data Centres from TÜV SÜD PSB 22
Slide 24: Positioned to Capture Value
Positioned to Capture Value Active capital management High growth industry with Established significant track record barriers to entry Strategic location in key data centre hubs Strong global clientele To provide Unitholders with regular and stable distributions, and to achieve long-term growth in D
Slide 25: Additional Information
Additional Information
Slide 26: Keppel DC REIT Structure
Keppel DC REIT Structure Institutional and Public Keppel T&T Keppel Land Investors and Basis Bay 100% Vendor 30.1% 4.9% 65.0% Management Acts on behalf services of Unitholders REIT Manager Trustee Management Keppel DC REIT Trustee fees fees Keppel DC REIT The Trust Company (Asia) Management Pte. Ltd
Slide 27: Geographical Network
Geographical Network Ireland Citadel 100 Data Centre, Dublin Investment Mandate: United Kingdom To invest, directly or indirectly, in a diversified GV7 Data Centre, London portfolio of income-producing real estate Netherlands assets, which are used primarily for data Almere Data Centre, Almere Almer
Slide 28: Portfolio Overview (as of June 2015)
Portfolio Overview (as of 30 June 2015) Lettable area No. of Occupancy Carrying value(6) Property Location Interest (sq ft) customers(1) rate (%) (S$m) Lease type WALE (years) Land lease title Singapore 100% 109,574 18(2) 87.1 253.9 Keppel lease / Co- 3.1(2) Leasehold (Expiring 30 location September
Slide 29: Overview of Lease Arrangements
Overview of Lease Arrangements Responsibilities of Lessor / Owner Management Maintenance Maintenance Day-to-day Lease Insurance Asset Description Property Facilities Building Arrangement Refresh Capex Opex Tax Keppel lease(1) / Lessee: Pays cost of rent and all expenses recharged to Lessor S25
Slide 30: Thank you.
Thank you. KG y-y-1) DC REIT 29