Keppel REIT · SGX:K71U
Keppel REIT — Investor Presentation (September 2022)
28 slides from Keppel REIT's investor presentation, September 2022
Slide 1: Investor Presentation September 2022
Investor Presentation September 2022
Slide 2: Outline and Important Notice
Outline Constituent of: ▪ 1H 2022 Key Highlights 4 ▪ Financial Results 5 FTSE ST Large & ▪ Portfolio Review 9 Mid Cap Index ▪ Market Review 18 ▪ Additional Information 22 FTSE EPRA Nareit Global Developed Index IMPORTANT NOTICE: The past performance of Keppel REIT is not necessarily indicative of it
Slide 3: Diversified Pan-Asian Portfolio of Prime Commercial Assets
Diversified Pan-Asian Portfolio of Prime Commercial Assets $9.0b portfolio of prime quality assets anchored across different markets enhance income stability and long-term growth opportunities T Tower, Seoul 8 Chifley Square, 99.4% Interest Pinnacle Office Park, Occupancy: 100% Sydney Sydney Ocean F
Slide 4: 1H 2022 Key Highlights
1H 2022 Key Highlights Pan-Asian Portfolio with Growth in DPU High Portfolio Occupancy Income Resilience Anchored in key business districts of 2.97 cents 95.5% Singapore, Australia and South Korea As at 30 Jun 2022 Up 1.0% y-o-y Higher Distributable Long Portfolio WALE Singapore, 78.0% Income 6.0 ye
Slide 5: Financial Results
Financial Results Ocean Financial Centre, Singapore 5 Photo Credit: Central Narcotics Bureau
Slide 6: 1H 2022 Distribution Increased 4.6%
1H 2022 Distribution Increased 4.6% ▪ 1H 2022 Distributable Income and DPU increased 4.6% and 1.0% year-on-year respectively, mainly due to the acquisition of Keppel Bay Tower in May 2021 Distributable Income ($m) 1H 2022 1H 2021 +/(-) +4.6% Property Income(1) $109.8m $105.8m +3.7% Net Property Inco
Slide 7: Healthy Balance Sheet
Healthy Balance Sheet As at 30 Jun 2022 As at 31 Dec 2021 +/(-) Deposited Property(1) $9,198m $9,085m +1.2% Total Assets $8,676m $8,488m +2.2% Borrowings(2) $3,486m $3,485m +0.03% Total Liabilities $2,887m $2,898m (0.4%) Unitholders’ Funds $5,057m $4,866m +3.9% Adjusted NAV per Unit(3) $1.33 $1.29 +
Slide 8: Prudent Capital Management
Prudent Capital Management As at 30 Jun 2022 Interest Coverage Ratio(2) 3.8x ▪ Aggregate leverage decreased to 37.9%, from 38.7% All-in Interest Rate 1.93% as at 31 Mar 2022 Aggregate Leverage 37.9% ▪ 73% of the borrowings are on fixed rates Weighted Average Term to Maturity 3.1 years ▪ No outstandi
Slide 9: Portfolio Review
Portfolio Review Pinnacle Office Park, Sydney 9
Slide 10: Robust 1H 2022 Portfolio Performance
Robust 1H 2022 Portfolio Performance Leases Committed Leases Committed As at 30 Jun 2022: by Geography(1) by Type(1) Singapore, 80.6% Australia, 7.3% Renewal, 95.5% 75.9% New, Portfolio committed occupancy South Korea, 24.1% 12.1% 10.5 years New leasing demand and expansions from: Top 10 tenants’ WA
Slide 11: Well-spread Lease Expiry Profile
Well-spread Lease Expiry Profile ▪ Average signing rent for Singapore office leases(1) concluded in 1H 2022 was $11.43 psf pm, reflecting robust demand for prime office space ▪ Average expiring rents of Singapore office leases(2)(psf pm): $9.82 in 2022, $10.81 in 2023 and $10.72 in 2024 27.7% Lease
Slide 12: Established and Diversified Tenant Base
Established and Diversified Tenant Base ▪ Keppel REIT has a diversified tenant ▪ Top 10 tenants take up 41.6% of NLA base of 390(1) tenants, many of which are and contribute 36.8% of gross rent established blue-chip corporations Top 10 Tenants Tenant Business Sector % State of Victoria 10.1% Banking
Slide 13: Blue & William Development Update
Blue & William Development Update ▪ Approximately 48.7% completed as at 30 June 2022, and on track to be completed in mid-2023 ▪ The developer will provide a coupon of 4.5% p.a. on cumulative progress payments made during development period, and a 3-year rental guarantee on any unlet space after pra
Slide 14: Increase in Singapore Portfolio Valuations
Increase in Singapore Portfolio Valuations Valuation based on Variance 31 Dec 2021 30 Jun 2022 30 Jun 2022 Cap Rate attributable interest S$ % Ocean Financial Centre S$2,066.2m S$2,086.2m S$20.0m 1.0 S$2,987psf 3.50% (79.9% interest) Towers 1 & 2, and S$1,711.0m S$27.7m 1.6 S$2,965psf 3.30% Marina B
Slide 15: Increase in Overseas Property Valuations
Increase in Overseas Property Valuations ▪ Valuation for Blue & William increased by 18.8% due to construction progress Valuation based on Local Currency (A$/KRW) Variance S$ Variance Cap Rate 30 Jun 2022 Keppel REIT’s interest A$/KRW % S$ % (%) 31 Dec 2021 30 Jun 2022 31 Dec 2021 30 Jun 2022 8 Chif
Slide 16: Sustainable and Future Ready Portfolio with ESG Excellence
ESG Benchmarks Sustainable and Future ▪ MSCI ESG – ‘A’ Rating Ready Portfolio with ▪ ISS ESG Corporate Rating – Prime status ESG Excellence ▪ Global Real Estate Sustainability Benchmark (GRESB) – Green Star status; ‘A’ rating for Public Disclosure Supporting climate action and the transition to a ES
Slide 17: ESG Targets and Activities in 1H 2022
ESG Targets and Activities in 1H 2022 Environmental Stewardship Responsible Business People and Community ▪ Halve Scope 1 and 2 emissions by 2030 ▪ Uphold high standards of corporate ▪ Provide a safe and healthy workplace from 2019 levels governance and risk management ▪ Invest in developing and tra
Slide 18: Market Review
Market Review Keppel Bay Tower, Singapore 18
Slide 19: Singapore Office Market
Singapore Office Market ▪ Average core CBD Grade A office rents increased to $11.30 psf pm in 2Q 2022 while average occupancy in core CBD decreased slightly to 93.6% Grade A Rent and Core CBD Occupancy Demand and Supply (million sf) 2.1 1.9 1.7 1.3 95.8% 94.8% 95.8% 0.8 0.8 0.9 0.8 $15 93.8% 93.8% 9
Slide 20: Australia Office Market
Australia Office Market 94.9% 96.0% 95.2% 88.4% 91.3% 87.5% 88.6% 87.1% 100% 90.8% 92.1% 90.4% 89.9% 82.7% 100% 75.5% 79.9% 82.4% 1,200 1,032 1,045 1200 964 80% 80% Sydney CBD 900 799 930 885 888 906 60% North Sydney 900 729 60% 641 676 688 651 662 661 580 600 40% 600 40% Prime Grade occupancy 300 2
Slide 21: Seoul Office Market
Seoul Office Market ▪ CBD Grade A occupancy increased to 92.9% in 2Q 2022 CBD Grade A Rent and Occupancy 200,000 90.7% 91.2% 92.9% 100% 86.6% 86.7% 89.2% 85.0% 82.7% 160,000 80% 120,000 112,127 60% 97,572 98,926 101,276 95,169 91,845 92,325 91,656 80,000 40% 40,000 20% 0 0% 4Q16 4Q17 4Q18 4Q19 4Q20
Slide 22: Additional Information
Additional Information Blue & William, Sydney Artist Impression 22
Slide 23: Committed to Delivering Stable Income & Sustainable Returns
Committed to Delivering Stable Income & Sustainable Returns Portfolio Optimisation • Portfolio optimisation to improve yield, anchored by prime CBD assets in Singapore Portfolio • Hold quality assets across different markets for improved income stability Optimisation and to provide more long-term gr
Slide 24: Attributable NPI by Property
Attributable NPI by Property 1H 2022 1H 2021 % % Breakdown of Attributable NPI $’000 $’000 by Geography Ocean Financial Centre 33,570 20.9 33,321 20.9 (For 1H 2022) Marina Bay Financial Centre 46,740 29.1 48,862 30.6 One Raffles Quay 20,361 12.7 18,386 11.5 71.2% Keppel Bay Tower(1) 13,627 8.5 3,079
Slide 25: Portfolio Information: Singapore
Portfolio Information: Singapore As at Ocean Financial Centre Marina Bay Financial Centre(4) One Raffles Quay Keppel Bay Tower 30 Jun 2022 Attributable NLA 698,312 sf 1,021,507 sf 441,048 sf 386,223 sf Ownership 79.9% 33.3% 33.3% 100.0% BNP Paribas, DBS Bank, Deutsche Bank, Keppel Group, Principal t
Slide 26: Portfolio Information: Australia & South Korea
Portfolio Information: Australia & South Korea Blue & William(3), As at 8 Exhibition David Malcolm 8 Chifley Square, Pinnacle Office Sydney Victoria Police T Tower, 30 Jun 2022 Street(4), Justice Centre, Sydney Park, Sydney (Under Centre, Melbourne Seoul Melbourne Perth Development) Attributable 104
Slide 27: 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 53.3% 7.0% track record in this industry asset management platform 39.7% 100% Management Act
Slide 28: Thank you
Thank you Marina Bay Financial Centre, Singapore 28