Kore Us REIT · SGX:CMOU
Kore Us REIT — Keppel-KBS US REIT — Q2 2018 Earnings Presentation
42 slides from Kore Us REIT's earnings presentation, Jul 17, 2018
Slide 1: 2Q2018 and 1H2018 Financial Results
2Q2018 and 1H2018 Financial Results 17 July 2018
Slide 2: Table of contents and Important Notice
Table of contents Key Highlights 2 Portfolio Review 4 Market Outlook 8 Financial Performance & Capital Management 11 Important Notice The past performance of Keppel-KBS US REIT is not necessarily indicative of its future performance. Certain statements made in this release may not be based on histor
Slide 3: Key Highlights
Key Highlights 1800 West Loop South, Houston, Texas
Slide 4: Key Highlights
Key Highlights 2Q2018 Performance in line with IPO projections 32 (>220,000 sf) leases signed in 2Q2018 with reputable tenants across the $ technology, financial, legal and professional services sectors Positive rental reversion for leases signed in 2Q2018 Well-placed to capture upside from po
Slide 5: Portfolio Overview
Portfolio Overview Bellevue Technology Center, Seattle, Washington
Slide 6: Strong leasing momentum with positive rental reversion
Portfolio Overview Strong leasing momentum with positive rental reversion 32 leases (>220,000 sf) signed in 2Q2018 with reputable tenants across the technology, financial, legal and professional services sectors; 64 leases (about 472,000 sf) signed since IPO Achieved overall positive rental reve
Slide 7: Resilient portfolio with diversified tenant base
Portfolio Overview Resilient portfolio with diversified tenant base Low tenant concentration: Top 10 tenants take up 19.0% of portfolio NLA and contribute 22.8% of cash rental income as at 30 Jun 2018 Top 10 tenants by cash rental income as at 30 Jun 2018 Portfolio tenant base composition (by NLA)
Slide 8: Portfolio Overview: properties in key growth markets
Portfolio Overview 11 properties (totaling 3.2m sf of NLA) located in key growth markets Seattle, Washington Atlanta, Georgia The Plaza Buildings Bellevue Technology Center Occupancy rate: 88.8% Occupancy rate: 95.1% Northridge Center I & II Sacramento, California Occupancy rate: 93.7% Iron Point Po
Slide 9: Market Outlook
Market Outlook West Loop I & II, Houston, Texas
Slide 10: US office market supported by stable macroeconomic conditions
Market Outlook US office market supported by stable macroeconomic conditions IMF raised US GDP growth projection for 2018 from 2.7% to 2.9%, supported by strong near- term outlook, robust job creation, and various favourable financial conditions1 12-month2 office net absorption of 50.2m sf and d
Slide 11: Submarket snapshot: Rent growth drivers
Market Outlook Submarket snapshot: Rent growth drivers Average Property/ Last 12M Last 12M Vacancy Last 12M Projected Submarket Rent Submarket Deliveries (sf’000) Absorption (sf’000) Rate Rental Growth Rental Growth (US$) The Plaza Buildings 46.8 - 941 5.9% 8.0% 9.5% Bellevue CBD Bellevue Technology
Slide 12: Financial Performance & Capital Management
Financial Performance & Capital Management Maitland Promenade, Orlando, Florida
Slide 13: DPU outperformed forecast by 0.5%
Financial Performance DPU outperformed forecast by 0.5% Declared DPU of 3.82 US cents: 0.5% higher than Key dates for distribution IPO forecast Ex-date 25 Jul 2018 Annualised distribution yield of 6.77% based on Books closure date 27 Jul 2018 2Q2018 closing price of US$0.88 Payment date 25 Sep 2
Slide 14: Maintained healthy balance sheet
Financial Performance Maintained healthy balance sheet As at 30 Jun 2018 (US$’000) Total Assets 875,489 Investment Properties 816,107 Cash and Cash Equivalents 50,082 Other Assets 9,300 Total Liabilities 311,695 Gross Borrowings 289,440 Other Liabilities 22,255 Unitholders’ Funds 563,794 Units in Is
Slide 15: Limited interest rate exposure with term loans significantly hedged
Capital Management Limited interest rate exposure with term loans significantly hedged Debt Maturity Profile As at 30 Jun 2018 US$289.4m of external 50.0% 50.0% Total debt loans (unsecured) US$50m of undrawn Available facilities revolving credit facility Aggregate leverage1 33.1% Average cost of deb
Slide 16: Key Takeaways: Sustainable distributions and total returns
Key Takeaways Sustainable distributions and total returns Exposure to targeted growth cities within the US with attractive office real estate fundamentals Organic growth from positive rental reversion, strong leasing momentum and portfolio performance Actively pursuing inorganic growth via acq
Slide 17: Thank you
Thank you (Cys KBS US REIT
Slide 18: Additional Information
Additional Information Great Hills Plaza, Austin, Texas
Slide 19: Structure of Keppel-KBS US REIT
Structure of Keppel-KBS US REIT Sponsors: KC relevant KPA relevant Keppel Capital Unitholders entity1 entity1 International Pte. Ltd. (“KCI”) Tax-efficient structure for holding 7.0%2 7.0%2 US properties Keppel Management Agreement Trustee Management Keppel-KBS US REIT Services Keppel-KBS Fees Manag
Slide 20: Portfolio overview
Portfolio overview Committed WALE Carrying Value Property City Type Location NLA (sf) occupancy1 (in years)1 (US$mn) The Plaza Buildings Seattle Class A CBD Bellevue CBD, one of the most active leasing sub-market 490,994 88.8% 3.0 242.3 in Seattle Bellevue Technology Seattle Class A & B Bellevue, on
Slide 21: The Plaza Buildings, Seattle
The Plaza Buildings, Seattle Class A office buildings in the heart of Bellevue CBD Property overview Type Two Class A office buildings with a freestanding garage Completion date 1978 – 1983 Refurbishment date 2014 – 2015 NLA (sf) 490,994 Committed occupancy1 88.8% WALE by NLA 3.0 years Notable tenan
Slide 22: The Plaza Buildings, Seattle
The Plaza Buildings, Seattle Class A office buildings in the heart of Bellevue CBD Location map Market dynamics and outlook Bellevue is the fifth largest city in the state of Washington, and the third largest in the Seattle metropolitan area Seattle, Washington Bellevue CBD is one of the fast gr
Slide 23: Bellevue Technology Center, Seattle
Bellevue Technology Center, Seattle Modern office campus with diverse functionalities Property overview Type Class A and B office buildings with an underground parking garage Completion date 1973, 1980 and 2000 Refurbishment date 2013 – 2014 NLA (sf) 330,508 Committed occupancy1 95.1% WALE by NLA 3.
Slide 24: Bellevue Technology Center, Seattle
Bellevue Technology Center, Seattle Modern office campus with diverse functionalities Location map Market dynamics and outlook Seattle’s eastside suburban office market has historically been among the most active in the region due to its relatively large inventory of office Seattle, Washington spa
Slide 25: Iron Point, Sacramento
Iron Point, Sacramento Centrally located high-quality office asset in Folsom Property overview Type Class A business campus Completion date 1999 and 2001 Refurbishment date 2013 - 2016 NLA (sf) 211,887 Committed occupancy1 97.9% WALE by NLA 2.6 years Notable tenants Sierra Pacific Mortgage Co Pr
Slide 26: Iron Point, Sacramento
Iron Point, Sacramento Centrally located high-quality office asset in Folsom Location map Market dynamics and outlook Sacramento is the state capital Region offers pro-business climate, an educated workforce from the research and educational institutions, relatively low housing costs and a stron
Slide 27: Westmoor Center, Denver
Westmoor Center, Denver Class A office campus between downtown Denver and Boulder Property overview Type Class A business campus Completion date 1999 – 2000 Refurbishment date 2014 – 2016 NLA (sf) 607,755 Committed occupancy1 82.4% WALE by NLA 5.2 years Notable tenants Ball Aerospace & Tech Corp
Slide 28: Westmoor Center, Denver
Westmoor Center, Denver Class A office campus between downtown Denver and Boulder Location map Market dynamics and outlook The Denver area’s highly educated workforce and slightly below average business costs continue to attract employers and support job growth Significant residential base that
Slide 29: Great Hills Plaza, Austin
Great Hills Plaza, Austin Class B office building with excellent access to major thoroughfares Property overview Type Three-storey Class B office building Completion date 1985 Refurbishment date 2014 NLA (sf) 139,252 Committed occupancy1 96.5% WALE by NLA 4.8 years Notable tenants E20pen, LLC Ci
Slide 30: Great Hills Plaza, Austin
Great Hills Plaza, Austin Class B office building with excellent access to major thoroughfares Location map Market dynamics and outlook Austin is the state capital and one of the biggest tech hubs in the US; an attractive destination for growing businesses given access to capital and a highly educ
Slide 31: Westech 360, Austin
Westech 360, Austin Office park with excellent access to major thoroughfares Property overview Type Office park with four Class B buildings Completion date 1986 Refurbishment date 2014 NLA (sf) 173,058 Committed occupancy1 97.4% WALE by NLA 2.8 years Notable tenants Maxpoint Interactive, Inc D&S
Slide 32: Westech 360, Austin
Westech 360, Austin Office park with excellent access to major thoroughfares Location map Market dynamics and outlook Austin is the state capital and one of the biggest tech hubs in the US; an attractive destination for growing businesses given access to capital and a highly educated workforce ami
Slide 33: 1800 West Loop South, Houston
1800 West Loop South, Houston Class A office building in Uptown Houston Property overview Type Class A office building with 12 storeys of onsite parking Completion date 1982 Refurbishment date 2013-2014 NLA (sf) 398,490 Committed occupancy1 82.9% WALE by NLA 2.9 years Notable tenants Health Care S
Slide 34: 1800 West Loop South, Houston
1800 West Loop South, Houston Class A office building in Uptown Houston Location map Market dynamics and outlook Located in Uptown Houston, among the largest suburban business districts in the U.S. Houston is second only to New York City in terms of number of Fortune 500 companies with headquarter
Slide 35: West Loop I & II, Houston
West Loop I & II, Houston Class A office building located in an affluent suburb in Houston Property overview Type Two Class A office buildings targeting healthcare and professional services tenants Completion date 1980 Refurbishment date 2013-2014 NLA (sf) 313,873 Committed occupancy1 90.2% WALE by
Slide 36: West Loop I & II, Houston
West Loop I & II, Houston Class A office building located in an affluent suburb in Houston Location map Market dynamics and outlook The West Loop is Houston’s largest suburban (non-CBD) office sub-market The property is located within the Bellaire area which has a significant residential househo
Slide 37: Powers Ferry, Atlanta
Powers Ferry, Atlanta Multi-tenanted office building located within a well-established sub-market Property overview Type Class B office building Completion date 1985 Refurbishment date 2013 NLA (sf) 146,352 Committed occupancy1 94.9% WALE by NLA 3.2 years Notable tenants LL Global Inc Georgia Ba
Slide 38: Powers Ferry, Atlanta
Powers Ferry, Atlanta Multi-tenanted office building located within a well-established sub-market Location map Market dynamics and outlook Situated in the Cumberland/I-75 sub-market of the Atlanta office market The sub-market has been outperforming the greater Atlanta market with recent developm
Slide 39: Northridge Center I & II, Atlanta
Northridge Center I & II, Atlanta Office park buildings in the Central Perimeter Property overview Type Two Class B office buildings Completion date 1985 – 1989 Refurbishment date 2013 NLA (sf) 186,580 Committed occupancy1 93.7% WALE by NLA 2.4 years Notable tenants Allstar Financial Group Inc K
Slide 40: Northridge Center I & II, Atlanta
Northridge Center I & II, Atlanta Office park buildings in the Central Perimeter Location map Market dynamics and outlook Atlanta is home to numerous Fortune 500 companies within Atlanta; ranks 3rd in no. of Fortune 500 company HQs, behind NY and Houston Heightened office demand driven by large
Slide 41: Maitland Promenade II, Orlando
Maitland Promenade II, Orlando Modern Class A building located in Orlando’s largest sub-market Property overview Type Class A office building with a three-storey garage Completion date 2001 Refurbishment date 2013 – 2016 NLA (sf) 226,990 Committed occupancy1 99.0% WALE by NLA 4.2 years Notable tenan
Slide 42: Maitland Promenade II, Orlando
Maitland Promenade II, Orlando Modern Class A building located in Orlando’s largest sub-market Location map Market dynamics and outlook Maitland is one of the largest office sub-markets in Orlando, which is dominated by technical, finance and insurance companies Robust job growth and in-migratio