Keppel REIT · SGX:K71U
Keppel REIT — Morgan Stanley Virtual ASEAN Best Conference 2020
27 slides from Keppel REIT's conference presentation, Jun 30, 2020
Slide 1: Morgan Stanley Virtual ASEAN Best Conference
Morgan Stanley Virtual ASEAN Best Conference 30 June 2020
Slide 2: Outline
Outline • Overview 3 • Navigating the COVID-19 Situation 11 • Additional Information 16 IMPORTANT NOTICE: The past performance of Keppel 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
Slide 3: Overview
Overview Marina Bay Financial Centre, Singapore 3
Slide 4: Portfolio Anchored by Singapore CBD Assets
Portfolio Anchored by Singapore CBD Assets $7.9 billion portfolio in key business districts of Singapore, Australia and South Korea enhances income diversification and long-term stability T Tower, Seoul 311 Spencer Street, 99.4% Interest Melbourne South Korea 50% Interest Ocean Financial (Under deve
Slide 5: Active Portfolio Optimisation
Active Portfolio Optimisation ▪ Portfolio optimisation in FY 2019 to improve yield and create long-term value for Unitholders ▪ Holding quality assets across different markets improves income diversification and growth opportunities in the long term Portfolio Optimisation in FY 2019 May 2019: Acquis
Slide 6: 1Q 2020 Key Highlights
1Q 2020 Key Highlights ▪ Distributable income was $47.3 million(1); DPU was 1.40 cents ▪ Aggregate leverage was 36.2% and all-in interest rate was 2.58% p.a. ▪ Refinanced majority of loans due in 2020 and received commitments for the remainder ▪ High portfolio committed occupancy of 98.9% and long p
Slide 7: 1Q 2020 Leasing Update
1Q 2020 Leasing Update Total Leases Committed Leases Committed by Geography(4) ~170,600 sf 18.6% (Attributable ~75,200 sf) 81.4% Retention Rate 50%(3) Singapore Australia Leases Committed by Type(4) New leasing demand and expansions from: Real estate and property services 55.0% Average signing rent
Slide 8: High Occupancy and Long WALE
High Occupancy and Long WALE ▪ High portfolio committed occupancy of 98.9% ▪ Long overall portfolio WALE of 4.7 years (Singapore portfolio: 3.7 years, Australia portfolio: 8.8 years, South Korea portfolio: 1.6 years); Top 10 tenants’ WALE was 6.7 years High Portfolio Committed Occupancy (As at 31 Ma
Slide 9: Lease Expiry Profile and Expiring Rents
Lease Expiry Profile and Expiring Rents ▪ Only remaining 4.9% of leases expiring and 3.9% due for rent review in 2020(1) ▪ Average expiring rents(2) of Singapore office leases (psf pm): $9.37 in 2020, $9.75 in 2021 and $10.20 in 2022 31.6% Lease Expiries and Rent Reviews 22.3% (Based on Committed At
Slide 10: Prudent Capital Management
Prudent Capital Management ▪ Low aggregate leverage of 36.2%, with interest coverage As at 31 March 2020 ratio at 3.2x(1) Interest Coverage Ratio(1) 3.2x ▪ No further loan refinancing for FY 2020 All-in Interest Rate 2.58% p.a. ▪ Renewal of Unit buy-back mandate Aggregate Leverage 36.2% Weighted Ave
Slide 11: Navigating the COVID-19 Situation
Navigating the COVID-19 Situation Ocean Financial Centre lit in blue in support of the #SeeItBlue campaign that highlights importance of mental well-being and thanks frontline workers battling the COVID-19 outbreak 11
Slide 12: Navigating the COVID-19 Situation
Navigating the COVID-19 Situation Keppel REIT’s properties in Singapore, Australia and South Korea AUM by Geography remain accessible to tenants that are operational during COVID-19 (As at 31 March 2020) Certain measures implemented by the Government: 3.8% 15.7% Singapore South Korea Australia ▪ Soc
Slide 13: Navigating the COVID-19 Situation (Cont'd)
Navigating the COVID-19 Situation (Cont’d) Keppel REIT’s established tenants from diversified sectors, high portfolio committed occupancy and long WALE will continue to support the REIT’s income resilience ▪ Retail and F&B sector takes up approximately 1.8% of attributable NLA, while office sub-sect
Slide 14: Navigating the COVID-19 Situation (Cont'd)
Navigating the COVID-19 Situation (Cont’d) Supporting Interests of Effective Safety as Priority All Stakeholders Capital Management • Precautionary health and safety • Tenant support measures rolled out • Refinanced majority of loans measures implemented across to support business continuity : due i
Slide 15: Committed to Delivering Stable Income & Sustainable Returns
Committed to Delivering Stable Income & Sustainable Returns Portfolio Optimisation • Portfolio optimisation to improve yield, while maintaining exposure to Singapore CBD Portfolio • Hold quality assets across different markets for improved income stability and Optimisation to provide more long-term
Slide 16: Additional Information
Additional Information One Raffles Quay, Singapore 16
Slide 17: Milestones since Listing
Milestones since Listing Acquired Listed on Increased Acquired 87.5% of Acquired 50% of David SGX Stake in 50% of Ocean Malcolm Justice Centre in Acquired Acquired 50% of Expanded footprint to with over Prudential 8 Chifley Financial Perth and three retail units at 311 Spencer Street South Korea wit
Slide 18: Financial Performance
Financial Performance 1Q 2020 1Q 2019 +/(-) Property Income $38.7 m $40.0 m (3.3%) Net Property Income (NPI) $30.2 m(1) $31.3 m (3.7%) Less: Attributable to Non-controlling Interests ($4.3 m) ($4.1 m) +6.9% NPI Attributable to Unitholders $25.9 m $27.2 m (5.2%) Share of Results of Associates and Joi
Slide 19: Income Contribution
Income Contribution 1Q 2020 1Q 2019 % % $’000 $’000 Breakdown by Geography (For 1Q 2020) Ocean Financial Centre 17,159 30.0 16,129 26.0 Marina Bay Financial Centre 19,127 33.5 22,266 35.9 73.4% One Raffles Quay 5,689 9.9 6,173 9.9 Bugis Junction Towers(1) - - 4,997 8.1 8 Chifley Square 3,368 5.9 3,0
Slide 20: Balance Sheet
Balance Sheet As at 31 Mar 2020 As at 31 Dec 2019 +/(-) (1) Deposited Property $8,013 m $8,032 m (0.2%) Total Assets $7,437 m $7,449 m (0.2%) Borrowings(2) $2,898 m $2,879 m +0.7% Total Liabilities $2,312 m $2,286 m +1.1% Unitholders’ Funds $4,545 m $4,585 m (0.9%) Adjusted NAV per Unit(3) $1.33 $1.
Slide 21: Singapore Office Market
Singapore Office Market ▪ Average Grade A office rents registered slight decrease to $11.50 psf pm. Average occupancy in core CBD decreased to 95.4% in 1Q 2020 Grade A Rent and Core CBD Occupancy Demand and Supply 2.1 1.9 1.9 94.8% 95.8% 93.8% 94.8% 95.8% 95.4% 1.7 $15 100% 1.1 0.8 0.8 0.7 0.8 $11.5
Slide 22: Australia Office Market
Australia Office Market ▪ National CBD office market occupancy decreased slightly quarter-on-quarter from 91.9% as at end September 2019 to 91.7% as at end December 2019 94.9% 96.0% 96.4% 95.9% 95.2% 95.2% 92.8% 92.1% 92.3% 93.2% 91.5% 100% 91.8% 91.3% 100% 86.8% 86.0% 89.6% 1,200 1,200 1,032 1,039
Slide 23: Seoul Office Market
Seoul Office Market ▪ CBD Grade A occupancy improved from 85.1% as at end September 2019 to 90.0% as at end December 2019 CBD Grade A Rent and Occupancy 200,000 90.0% 100% 87.5% 84.9% 86.5% 85.1% 82.7% 82.5% 84.5% 160,000 80% 120,000 60% 95,618 95,164 91,704 92,148 91,665 89,514 88,623 91,484 80,000
Slide 24: Portfolio Information: Singapore
Portfolio Information: Singapore Marina Bay Ocean Financial Centre One Raffles Quay Financial Centre(4) Attributable NLA 700,504 sf 1,024,238 sf 441,424 sf Ownership 79.9% 33.3% 33.3% BNP Paribas, DBS Bank, Deutsche Bank, Principal tenants(1) ANZ, Standard Chartered Bank, Ernst & Young, Drew & Napie
Slide 25: Portfolio Information: Australia & South Korea
Portfolio Information: Australia & South Korea 311 Spencer Street, 8 Chifley Square, 8 Exhibition Street, 275 George Street, David Malcolm T Tower, Melbourne Sydney Melbourne(3) Brisbane Justice Centre, Perth Seoul (Under development) Attributable NLA 104,055 sf 244,490 sf 224,537 sf 167,784 sf 358,
Slide 26: Keppel REIT Structure
Keppel REIT Structure Keppel Capital Keppel Land Institutional and The REIT Manager can leverage The REIT Manager can leverage Public Investors the Sponsor‘s expertise and the scale and resources of a larger 50.8% asset management platform 5.5% track record in this industry 43.7% 100% Management Act
Slide 27: Thank You
Thank You 8 Chifley Square, Sydney 27
Keppel REIT — Morgan Stanley Virtual ASEAN Best Conference 2020 on 6ix