Keppel REIT · SGX:K71U
Keppel REIT — Q3 2012 Earnings Presentation
32 slides from Keppel REIT's earnings presentation, Oct 15, 2012
Slide 1: Third Quarter 2012 Financial Results
Third Quarter 2012 Financial Results 15 October 2012
Slide 2: Important Notice
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 may be “forward-looking” statements due to a number of risks, uncertainties and assumptio
Slide 3: Sterling Property Portfolio
Sterling Property Portfolio Nine premium Grade A office assets valued at more than $6.35 billion with a total NLA of approximately 3.0 million sf Singapore Properties Ocean Financial Centre MBFC Towers 1 and 2 and Bugis Junction One Raffles Quay Prudential Tower (99.9% interest) Marina Bay Link Mall
Slide 4: Contents
Contents 3Q 2012 Highlights Financial Performance Capital Management Portfolio Analysis Market Review and Outlook Going Forward Additional Information 3
Slide 5: 3Q 2012 Highlights
3Q 2012 Highlights Keppel aus
Slide 6: Financial Highlights
Financial Highlights 3Q 2012 Distribution per Unit (DPU) Ï 84.9% y-o-y to 1.96 cents 3Q 2012 Annualised DPU Ï 85.3% y-o-y to 7.80 cents YTD Sep 2012 Distributable Income Ï 94.3% y-o-y to $150.0 million YTD Sep 2012 Property Income Ï 109.7% y-o-y to $116.1 million YTD Sep 2012 Net Property Income Ï 1
Slide 7: Quarterly Distributions
Quarterly Distributions Quarterly DPU will commence in 3Q 2012. Current Distribution Frequency Previous Distribution Frequency Income period Proposed payment dates(1) Income period Payment dates 1Q Distributable income May 1H Distributable income August 2Q Distributable income August 2H Distributabl
Slide 8: Income-accretive Acquisition
Income-accretive Acquisition Income-accretive acquisition of 50% interest in a new office tower to be developed on the Old Treasury Building site in Perth, Australia 98% pre-committed by the Government of Western Australia Long-term lease of 25 years with options to extend for another 25 years Exten
Slide 9: 8 Chifley Square Topping-Off
8 Chifley Square Topping-Off Completion of main structural works on 25 September 2012 On schedule for completion in 3Q 2013 8
Slide 10: Financial Highlights
Financial Highlights Keppel aus
Slide 11: YTD Sep 2012 Distributable Income up 94.3% y-o-y to $150.0m
YTD Sep 2012 Distributable Income Ï 94.3% y-o-y to $150.0m YTD Sep 2012 YTD Sep 2011 Change Property Income $116.1m $55.3m $60.7m 109.7% Net Property Income $91.9m $43.9m $48.0m 109.3% Share of Results of Associates $34.8m $25.4m $9.4m 36.9% Distributable Income to Unitholders(1) $150.0m $77.2m $72.
Slide 12: YTD Sep 2012 DPU up 89.5% y-o-y to 5.80 cents
YTD Sep 2012 DPU Ï 89.5% y-o-y to 5.80 cents YTD Sep 2012 annualised DPU of 7.75 cents outperformed 2012 forecast(1) by 8.2% 3Q 2012 2Q 2012 1Q 2012 YTD Sep 2012 2012 Forecast(1) Distribution Per Unit (DPU) - For the Period 1.96 cents 1.94 cents 1.90 cents 5.80 cents 7.16 cents - Annualised 7.80 cen
Slide 13: Healthy Balance Sheet
Healthy Balance Sheet As at 30 Sep 2012 As at 30 Jun 2012 Non-current Assets $5,789 m $5,785 m Total Assets $5,945 m $5,975 m Borrowings(1) $2,800 m $2,780 m Total Liabilities $2,668 m $2,645 m Unitholders’ Funds $3,275 m $3,327 m Net Asset Value (NAV) Per Unit $1.25 $1.27 Adjusted NAV Per Unit(2) $
Slide 14: Capital Management
Capital Management Keppel [iiss 13
Slide 15: Capital Management
Capital Management As at 30 Sep 2012 As at 30 Jun 2012 Gross Borrowings(1) $2,800 m(4) $2,780 m(4) Aggregate Leverage 44.1% 43.9% Average All-in Interest Rate(2) 2.00% 2.00% Interest Coverage Ratio(3) 5.2 times 5.3 times Weighted Average Term to Expiry 3.4 years(5) 3.6 years(5) (1) These include bor
Slide 16: Balanced Debt Maturity Profile
Balanced Debt Maturity Profile Maintained all-in interest cost at 2.00% in 3Q 2012 Well-staggered debt expiry profile with average 3.4 years(1) term to expiry Borrowings diversified across 12 lenders Debt Maturity Profile $’mn 900 800 700 600 500 400 775 825 300 598 598 200 447 100 155 0 2012 2013 2
Slide 17: Portfolio Analysis
Portfolio Analysis Keppel aus
Slide 18: Portfolio Occupancy Rate
Portfolio Occupancy Rate Portfolio occupancy of 98.2% exceeded expectations Singapore property portfolio occupancy of 98.0% is higher than core CBD occupancy of 93.2%(1) 100.0% 100.0% 100.0% 99.5% 100.0% 97.4% 98.2% 95.0% Singapore core CBD occupancy at 93.2%(1) Bugis Junction One Raffles Prudential
Slide 19: Stable Lease Portfolio
Stable Lease Portfolio Top ten tenants have long WALE of 7.5 years(1) Weighted Average Lease Expiry (WALE) Top Ten Tenants WALE 7.5 years(1) Portfolio WALE 6.1 years(2) Portfolio with Long-Term Leases(3) by NLA Long-Term Leases 45% Short-Term Leases 55% (1) Including the acquisition of the Old Treas
Slide 20: Portfolio Lease Expiry
Portfolio Lease Expiry Well-balanced lease renewal and rent review profile No more than 18% of NLA due for renewal in each year All leases expiring in 2012 have been renewed Only 0.3% of leases due for review in 4Q 2012 Portfolio Lease Profile (by NLA) as at 30 September 2012 17.7% 10.4% 9.5% 8.6% 6
Slide 21: Tenants diversified across various business sectors
Tenants diversified across various business sectors Retail (Exclude F&B and Services), 1.0% Accounting & Telecommunications consultancy services, & multi-media, 8.3% 1.7% Legal, 7.8% 216 (1) tenants from a F&B, 1.1% diversified range of business sectors Energy & natural resources, 9.4% (1) Tenants w
Slide 22: Blue-Chip Tenant Base
Blue-Chip Tenant Base Top ten tenants account for 43.5% of portfolio NLA Top Ten Tenants Australia and New Zealand Banking Group Ltd 7.8% Standard Chartered Bank 6.5% Telstra Corporation Limited 5.8% Barclays Capital Service Limited Singapore Branch 4.4% BNP Paribas 3.6% Drew & Napier LLC 3.6% Deuts
Slide 23: Asset Enhancements
Asset Enhancements Enhancement works at Prudential Tower on track for completion in 4Q 2012 Main lobby, lift cars, rs, toilets 22
Slide 24: Asset Enhancements
Asset Enhancements Enhancement works at Bugis Junction Towers rs on track for completion in 1Q 2013 Main lobby, lift cars, toilets 23
Slide 25: Market Review and Outlook
Market Review and Outlook Keppel aus
Slide 26: Singapore Office Market: Core CBD Occupancy
Singapore Office Market Office market showed signs of stabilising in 3Q2012 1.69 million sf. net absorption YTD exceeds 10-year annual average of 1.12 million sf. $15 95.2% 95.3% 100% 93.3% 94.4% 93.1% 93.2% 91.2% 91.2% 91.9% 92.3% 91.2% 91.6% 90.7% 90% Average Grade A Office Rental ($ psf pm) $12 $
Slide 27: Economic and Office Market Outlook
Economic and Office Market Outlook Singapore Continued demand from the legal services, natural resource, insurance, and multi-media businesses Medium-sized businesses taking advantage of current rents to upgrade office premises YTD net absorption exceeds 10-year historical annual average Ren
Slide 28: Going Forward
Going Forward Keppel [iiss 27
Slide 29: Strategic Direction
Strategic Direction Vision Keppel REIT aims to be a successful commercial real estate investment trust with a sterling portfolio of assets pan-Asia. Mission To deliver stable and sustainable returns to Unitholders by continually enhancing our assets and expanding our portfolio. Achieving Acquiring M
Slide 30: Additional Information
Additional Information Keppel aus
Slide 31: Portfolio Information
Portfolio Information Singapore Portfolio Australia Portfolio Ocean Old Treasury 275 George 8 Chifley Bugis Junction MBFC Financial One Raffles Prudential Tower 77 King Street Building Office Street Square Towers Interest (3) Centre Quay Interest Property Property Tower Interest Interest Property In
Slide 32: Thank you
Thank you Fax: 6835 7747 http://www.keppelreit.com For enquiries, please contact Ms Casiopia Low Investor Relations & Research Tel: 6433 7622 Email: casiopia.low@keppelreit.com 31