Kore Us Reit · SGX:CMOU

Kore Us Reit — Keppel-KBS US REIT — IPO Roadshow (November 2017)

19 slides from Kore Us Reit's IPO roadshow presentation, Nov 2, 2017

  1. Slide 1: Media & Analysts Briefing

    Media & Analysts Briefing 2 November 2017

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains confidential information and has been made to you on a strictly confidential basis and solely for your information. It is issued with a view to assisting you in deciding whether you wish to proceed with a further investigation of Keppel-KBS US REIT. The informat

  3. Slide 3: Offering summary

    Offering summary Issuer  Keppel-KBS US REIT (BBG ticker: KORE) Sponsors  Keppel Capital Holdings Pte. Ltd. (“KC”) and KBS Pacific Advisors Pte. Ltd. (“KPA”)  Keppel-KBS US REIT Management Pte. Ltd. (“Manager”) (50:50 joint venture partnership Manager between KC and KPA)  To invest in a diversifi

  4. Slide 4: Partnership between Keppel Capital and KBS

    Partnership between Keppel Capital and KBS Over 20 markets Over 30 markets Proven track record in public and High quality commercial real estate private investments across key portfolio and asset management gateway cities globally team across the US 11 funds 16 funds 2 listed REITs, 1 listed Busines

  5. Slide 5: Proven US office origination and acquisition track record

    Proven US office origination capabilities and acquisition track record  11th largest US owner of office properties globally(1)  >180 experienced and dedicated specialists across US  >US$33bn of transactional volume completed (1) National Real Estate Investor, as at 31 Dec 2016. 4

  6. Slide 6: Why invest in Keppel-KBS US REIT?

    Why invest in Keppel-KBS US REIT? 1 - Attractive US office real estate fundamentals 2 - Exposure to targeted growth cities within the US 3 - Highest total return portfolio amongst peers at 12.6%(1) 4 - Best-in-class management platforms with strong pipeline opportunities (1) Calculated as the sum of

  7. Slide 7: Attractive US office real estate fundamentals

    Attractive US office real estate fundamentals Completions and net absorption (mn sq ft) 170 Completion is expected to peak in 2017  Property upcycle expected to continue given a highly 120 sustainable economic growth in the US 70  Office demand expected to remain strong given 20 moderate levels of

  8. Slide 8: Strategic portfolio focus on key growth markets

    Strategic portfolio focus on key growth markets  Focus on markets which IPO PROPERTIES LOCATED IN MARKETS THAT outperform the US OUTPERFORM THE US AVERAGE GROWTH RATE average in GDP growth, new job creation and GMP(1) / GDP growth forecast Average forecast 2017F - 2021F (%) population growth 5.8% 

  9. Slide 9: Distinctive portfolio with quality assets

    Distinctive portfolio with quality assets  11 high quality,  Average 3.3 years  Strong occupancy  Attractive cash NPI freehold office from last rate of 90% yield of 6.3% for properties refurbishment 2018F The Plaza Buildings Westmoor Center Westech 360 Powers Ferry Market: Seattle Market: Denver

  10. Slide 10: Key growth markets: West Coast

    East Coast Key growth markets: West Coast West Coast 38% 14% Seattle Seattle Sacramento  Strong economic and population growth, largely  The capital of California and benefits from a Sacramento Central 48% driven by technology and aerospace diversified economy (e.g. education, healthcare manufactu

  11. Slide 11: Key growth markets: Central

    East Coast Key growth markets: Central West Coast 38% 14% Denver Denver Austin Houston  Young and educated workforce  Major technology hub in Central  Fifth largest MSA in USA, and Austin Central 48% and low business cost and taxes, USA which benefits from a highly home to the Texas Medical Cente

  12. Slide 12: Key growth markets: East Coast

    East Coast Key growth markets: East Coast West Coast 38% Atlanta 14% Orlando Orlando Atlanta  Robust metropolitan area with thriving tourist and  Third most Fortune 500 company headquarters in Central 48% healthcare industries, attracting strong in-migration the US, with a steady stream of busines

  13. Slide 13: Stable lease expiry profile

    Stable lease expiry profile Weighted Average Lease Expiry of 3.7 years(1), ensuring stability of cash flows Lease expiry profile (%) 31.3% 30.4% 16.7% 17.3% 17.1% 16.5% 16.2% 14.9% 13.3% 13.2% 6.7% 6.4% 2017F 2018F 2019F 2020F 2021F 2022F and beyond NLA Cash rental income Note: As at 30 June 2017. (

  14. Slide 14: Diversified tenant base with limited tenant concentration

    Diversified tenant base with limited tenant concentration Tenant base composition(1) Top 10 tenants(1) Tenant Tenant Mix Property % Zimmer Biomet Spine, Inc. Technology Westmoor Center 3.0% Unigard Insurance Company(2) Finance and Insurance Bellevue Technology Center 2.7% Others Professional Media a

  15. Slide 15: Attractive total return and high initial distribution yield

    Attractive total return and high initial distribution yield 1 2 3 Built-in Positive Potential growth in rental escalations rental reversion portfolio occupancy  ~97.5% of existing leases  Opportunity to lease  Ability to capitalise on with 2.0%-3.0% built-in expiring space with market active leas

  16. Slide 16: Forecast financials

    Forecast financials Gross revenue Net property income Distributable income (US$mn) (US$mn) (US$mn) 96.4 56.3 40.2 92.5 37.8 54.4 2018F 2019F 2018F 2019F 2018F 2019F Certainty of distributable income  97.5(1)% of locked-in leases have rental escalation clauses  79% and 75% of rental and recoveries

  17. Slide 17: Healthy balance sheet and active capital management

    Healthy balance sheet and active capital management Initial debt facility details Debt maturity profile (US$mn) Total debt  US$289.4mn 144.7 144.7 Available  US$50mn of undrawn revolving credit facilities facility Aggregate  36.0% at listing date, with maximum debt leverage headroom of US$131.6mn

  18. Slide 18: Opportunity to participate in a balanced office REIT focused on key growth markets in the US

    Opportunity to participate in a balanced office REIT focused on key growth markets in the US Attractive US office Highest total return portfolio 1 real estate fundamentals 3 amongst peers US GDP CAGR 2.0% for 2017F - 2021F 12.6% Total return Projected 2.3% Average asking rent CAGR for 2017F - 2021F

  19. Slide 19: Thank you

    Thank you (Gy KBS US REIT 18

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