Keppel REIT · SGX:K71U
Keppel REIT — Merger or Acquisition (December 2020)
19 slides from Keppel REIT's merger presentation, Dec 23, 2020
Slide 1: Portfolio Optimisation with the Proposed Acquisition of Keppel Bay Tower
Portfolio Optimisation with the Proposed Acquisition of Keppel Bay Tower 23 December 2020
Slide 2: DPU-Accretive Acquisition that Complements Core CBD Offering
DPU-Accretive Acquisition that Complements Core CBD Offering ▪ Grade A office building strategically located in the HarbourFront/Alexandra submarket ▪ Established tenant base of multinational corporations and anchored by the Keppel Group ▪ Acquisition is consistent with the REIT's strategy of streng
Slide 3: Grade A Waterfront Business Hub
Grade A Waterfront Business Hub Building Completion 2002 (Recently refurbished in 2019) Land Tenure 99 years expiring on 30 September 2096 Attributable NLA 386,600 sf(1) (18-storey office tower with a six-storey podium block) Committed Occupancy 99.2%(2) WALE 3.3 years(2) No. of Tenants 29(2) ▪ Firs
Slide 4: Investment Merits
Investment Merits 4
Slide 5: Investment Merits
Investment Merits DPU and NPI yield accretive acquisition that 1 enhances Keppel REIT’s distributions and improves total unitholder returns Diversifies portfolio and strengthens tenant base 2 for income resilience Strategic expansion that complements the current 3 core CBD offering Grade A waterfron
Slide 6: DPU and NPI Yield Accretive
1 DPU and NPI Yield Accretive ▪ DPU and NPI yield accretive acquisition is part of ongoing portfolio optimisation efforts to enhance distributions and improve total unitholder returns ▪ Consistent with Keppel REIT's strategy of strengthening and diversifying its portfolio, while remaining focused on
Slide 7: Diversifies Portfolio and Strengthens Tenant Base for Income Resilience
2 Diversifies Portfolio and Strengthens Tenant Base for Income Resilience ▪ Reduces the REIT’s exposure to any single asset and further diversifies its income streams ▪ Post-acquisition, portfolio will grow to $9.0 billion with Grade A commercial assets in key business districts of Singapore, Austra
Slide 8: Diversifies Portfolio and Strengthens Tenant Base (Cont'd): Tenant Mix
2 Diversifies Portfolio and Strengthens Tenant Base for Income Resilience (Cont’d) Keppel Bay Tower’s Tenant Mix (% of NLA) 15.2% ▪ Committed occupancy of 99.2% and WALE of 17.7% 3.3 years by NLA 7.0% ▪ Diverse mix of 29 tenants ▪ Healthy rental collection for 3Q 2020 at 6.9% approximately 99% 1.3%
Slide 9: Diversifies Portfolio and Strengthens Tenant Base (Cont'd): Top Tenants
2 Diversifies Portfolio and Strengthens Tenant Base for Income Resilience (Cont’d) ▪ Headquarters to Keppel Group and its entities ▪ 39.7% of NLA on long leases to the Keppel Group entities ▪ Keppel Group becomes one of Keppel REIT's top 10 tenants by NLA ▪ Increases income diversification and reduc
Slide 10: Strong Occupancy and Well-Spread Lease Expiries
2 Strong Occupancy and Well-Spread Lease Expiries ▪ Portfolio committed occupancy level remains high at 98.2% ▪ Portfolio WALE by NLA remains long at approximately 6.5 years while lease expiry remains well-spread Portfolio Lease Expiry Profile (Post-Acquisition) (by committed attributable NLA) 43.5%
Slide 11: Strategic Expansion that Complements Core CBD Offering
3 Strategic Expansion that Complements Core CBD Offering ▪ Expands Keppel REIT’s offering to include quality CBD-fringe office space and meet potential shifts in occupier demand ▪ Offers more options and alternatives to tenants seeking dual locations/offices for business continuity purposes ▪ Post-a
Slide 12: HarbourFront/Alexandra: A Resilient City-Fringe Submarket
3 HarbourFront/Alexandra: A Resilient City-Fringe Submarket ▪ The city-fringe has shown resilience during the current COVID-19 pandemic with rents recording marginal decline of approximately 1.5% over 9M 2020 ▪ Demand continues to be supported by tenants who are attracted to the value proposition in
Slide 13: Grade A Waterfront Office with Excellent Connectivity to CBD and Amenities
4 Grade A Waterfront Office with Excellent Connectivity to CBD and Amenities HarbourFront/ Alexandra Precinct ▪ Well-connected by major expressways and public transportation nodes: Central ▪ 10 min drive to CBD Outram Business Pasir Park District Panjang Keppel Bay ▪ 5 min walk to HarbourFront MRT a
Slide 14: Participating in the Growth of the Greater Southern Waterfront
4 Participating in the Growth of the Greater Southern Waterfront ▪ Strategically located in Singapore’s Greater Southern Waterfront Gardens By the Bay (GSW), which is positioned as a (Bay East) destination for work, live and play Pasir Panjang Terminal Keppel Bay Tower Central Mount Business ▪ GSW i
Slide 15: Augments Green Footprint via Renewable Energy and Technology Innovation
5 Augments Green Footprint via Renewable Energy and Technology Innovation ▪ Singapore’s first commercial development to be fully powered by renewable energy ▪ High-tech green building: Facial recognition for Energy-efficient air Demand control contactless entry distribution fresh air intake Water-ef
Slide 16: Increases Free Float and Liquidity
6 Increases Free Float and Liquidity Free Float and Market Capitalisation(1) ($m) ▪ The Manager intends to fund the acquisition with debt and proceeds from an equity fund raising 3,854 which is intended to comprise a private placement of 3,578 approximately 256 million New Units 2,092 ▪ Increases Ke
Slide 17: Recap: Investment Merits
Recap: Investment Merits DPU and NPI yield accretive acquisition that 1 enhances Keppel REIT’s distributions and improves total unitholder returns Diversifies portfolio and strengthens tenant base 2 for income resilience Strategic expansion that complements the current 3 core CBD offering Grade A wa
Slide 18: Thank You
Thank You For more information, please visit: www.keppelreit.com Connect with us on: 18
Slide 19: Disclaimer
Disclaimer IMPORTANT NOTICE: The past performance of Keppel REIT is not necessarily indicative of its future performance. Similarly, the past performance of the Manager is not indicative of the future performance of the Manager. Certain statements made in this presentation may not be based on histor