Keppel REIT · SGX:K71U
Keppel REIT — H1 2008 Earnings Presentation
14 slides from Keppel REIT's earnings presentation, Jul 28, 2008
Slide 1: 1H 2008 Financial Results
1H 2008 FINANCIAL RESULTS 28 July 2008 Contents Robust Financial Results Resilient Portfolio Improved Capital Efficiency Market Review & Outlook Going Forward Additional Information 2 1
Slide 2: Highlights
Highlights Distributable income 169.8% y-o-y Robust financial Excl 1/3 ORQPL, NPI 33.2% y-o-y results Portfolio with 100% committed occupancy Resilient Average portfolio gross rental rate 72% y-o-y portfolio Aggregate leverage to 27.7% Improved capital No refinancing concerns efficiency 3 Robust Fin
Slide 3: 1H 2008 DPU Outperformed Forecast by 13.2%
1H 2008 DPU Outperformed Forecast by 13.2% 1H 2008 1H 2008 1H 2007 (1) ($'000) Actual Forecast % Chg Actual % Chg Property Income 24,495 24,258 1.0 18,718 30.9 Property Expenses (6,180) (5,685) 8.7 (4,973) 24.3 Net Property Income 18,315 18,573 (1.4) 13,745 33.2 Investment and Interest Income 21,872
Slide 4: 1H 2008 Income Contribution Up 191% Y-o-Y
1H 2008 Income Contribution Up 191% Y-o-Y 1H 2008 1H 2007 2Q 2008 2Q 2007 ($'000) Actual Actual % Chg Actual Actual % Chg Prudential Tower 3,627 2,450 48.0 1,795 1,167 53.8 Keppel Towers & GE Tower 9,525 6,508 46.4 4,847 3,645 33.0 Bugis Junction Towers 5,163 4,787 7.9 2,532 2,471 2.5 Total Net Prop
Slide 5: Balance Sheet and Distribution Details
Balance Sheet Post-Rights Issue ($million) 31 Dec 2007 30 Jun 2008 Non-current Assets 2,061.8 2,048.2 Total Assets 2,088.1 2,074.8 Borrowings (1) 1,131.3 580.7 Total Liabilities 1,154.3 608.8 Unitholders' Funds 933.8 1,466.0 Net Asset Value Per Unit $3.78 $2.26 Adjusted NAV Per Unit $3.73 $2.22 (1)
Slide 6: Resilient Portfolio: Broad Tenant Diversity
Resilient Portfolio Financial Results Broad Tenant Diversity Tenant Business Sector by Net Lettable Area @ 30 June 2008 7.5% 4.3% Accounting & consultancy services 8.5% Banking, insurance & financial services Conglomerate 8.1% Government agency 35.4% Hospitality & leisure 122 tenants IT services & c
Slide 7: Blue-chip Tenants on Long Leases
Blue-chip Tenants on Long Leases Portfolio’s Top 10 Tenants by Monthly Gross Rental Income for June 2008 Deutsche Bank 7.2% UBS AG 5.3% I.E.Singapore 5.1% ABN AMRO 4.7% GE Pacific 4.6% Total 46.6% Intercontinental Hotels 4.3% of portfolio’s gross rental The Executive Centre 4.3% income Credit Suisse
Slide 8: Further Appreciation in Portfolio Rents
Further Appreciation in Portfolio Rents Average Portfolio Gross Rental Rates psf per month $8.00 72% year-on-year and $7.37(1) $7.37 22% from end-2007 $7.50 (1) $6.86 $7.00 (1) $6.50 $6.02 $6.00 $5.50 $5.00 $4.43 $4.28 $4.50 $4.05 $4.00 $3.80 $3.50 Dec 2006 Mar 2007 Jun 2007 Sep 2007 Dec 2007 Mar 20
Slide 9: Enhanced Funding Capacity After Rights Issue
Enhanced Funding Capacity After Rights Issue Post-Rights Issue 31 Dec 2007 30 Jun 2008 Gross Borrowings $1,132.1m $581.4m Aggregate Leverage 53.9% 27.7% All-in Interest Rate 3.88% 2.66% Interest Coverage Ratio 2.3 times 1.52 times Weighted Average Term to Expiry 1.15 years 1.07 years Corporate Ratin
Slide 10: Market Review & Outlook: Stable Office Demand-Supply
Market ReviewResults Financial & Outlook Stable Office Demand-Supply Expected Future New Supply 2.8 2.62m sf 2.60m sf 2.6 0.06 2.42m sf 2.4 2.2 1.03 0.70 2.0 1.8 1.53m sf Million sf 1.6 Annual average demand: 0.12 1.62m sf (1) 1.4 0.39 0.39 2.54 1.2 2.54 0.87m sf 1.0 0.8 1.72 1.72 0.6 0.41 1.20 1.02
Slide 11: Singapore's Growth Supports Office Demand
Singapore’s Growth Supports Office Demand Asean Business Outlook Survey by American Chamber of Commerce 71% of American senior executives plan to expand in ASEAN within the next two years 2008 Mastercard Worldwide Centers of Commerce Index S’pore: High scores for legal/political framework and ease o
Slide 12: Going Forward: Growth Strategy
Financial Going Forward Results Growth Strategy Organic Growth Acquisition Growth Achieve better returns through Seek growth acquisitions in proactive management and active Singapore and overseas that will leasing of properties potentially value-add to the portfolio Asset Enhancement Identify asset
Slide 13: Thank You
Thank Results Financial You The value of units in K-REIT Asia (“Units”) and the income from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible
Slide 14: Snapshot of K-REIT Asia
Snapshot of K-REIT Asia Manager K-REIT Asia Management Limited Property Portfolio 5 quality commercial office assets valued at $2.1 bil Listing Date 28 Apr 2006 on Singapore Stock Exchange Market Capitalisation $906 million as at 25 July 2008 Unit Price $1.40 Number of Units in Issue 647,157,086 (1)