Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — H1 2020 Earnings Presentation
26 slides from Keppel Dc Reit's earnings presentation, Jul 21, 2020
Slide 1: First Half 2020 Financial Results
First Half 2020 Financial Results 21 July 2020
Slide 2: Outline
Outline ◼ Key Highlights ◼ Financial Performance ◼ Capital Management ◼ Portfolio Update ◼ Outlook Constituent of: Awards and Accreditations: FTSE EPRA Nareit GPR 250 MSCI Singapore Global Developed Index Index Series Small Cap Index 2
Slide 3: 1H 2020 Highlights
1H 2020 Highlights Steady growth in DPU Resilient income stream Financial flexibility Adjusted DPU (cents) High portfolio occupancy Low aggregate leverage4 8.000 7.7103 7.000 6.510 6.6801 6.9702 7.320 96.1% 34.5% 6.000 as at 30 Jun 2020 as at 30 Jun 2020 5.000 4.375 Long portfolio WALE High interest
Slide 4: Achieving Growth through DPU-accretive Acquisitions
Achieving Growth through DPU-accretive Acquisitions ▪ Completed acquisitions of the remaining 999-year leasehold land interest at Keppel DC Dublin 1 and Kelsterbach Data Centre in Germany in Mar and May 2020 respectively Keppel DC Dublin 1 Keppel DC Remaining 999- Kelsterbach Singapore 4 year leaseh
Slide 5: Financial Performance
Financial Performance KGyt] DC REIT 5f
Slide 6: Distributable Income
Distributable Income Distribution Per Unit (cents)1 Distribution Timetable 5.000 4.375 Ex-Date 28 Jul 2020 +13.6% 4.000 3.850 Record Date 29 Jul 2020 Payment Date 1 Sep 2020 3.000 1H 2019 1H 2020 ($’000) 1H 2020 1H 2019 +/(-) % Distributable Income to Unitholders 74,980 54,353 +38.0 Comprising Gross
Slide 7: Balance Sheet Highlights
Balance Sheet Highlights As at As at +/(-) ($’000) 30 Jun 2019 31 Dec 2019 % Investment Properties 2,840,032 2,637,026 +7.7 Property under development 7,382 - Nm Total Assets 3,143,700 2,927,994 +7.4 Gross Borrowings1 1,055,160 870,388 +21.2 Total Liabilities 1,195,120 1,025,446 +16.5 Unitholders’ F
Slide 8: Aggregate Leverage
Aggregate Leverage As at As at +/(-) ($’000) 30 Jun 2020 31 Dec 2019 % Investment Properties1 2,823,640 2,585,178 +9.2 (excluding lease liabilities commitments) Deposited Properties1 3,082,225 2,838,306 +8.6 (excluding lease liabilities commitments) Gross Borrowings + Deferred Payment 1,062,429 870,
Slide 9: Capital Management
Capital Management KGyt] DC REIT 9
Slide 10: Prudent Capital Management
Prudent Capital Management Debt Maturity Profile As at 30 Jun 2020 13.2% 11.8% 26.1% 5.9% 15.2% 1.2% 6.0% 1.9% 6.4% 4.9% 7.4% 2020 2021 2022 2023 2024 2025 2026 SGD AUD GBP EUR ▪ Refinanced short-term EUR 32.7m loan with new EUR 70m loan facilities due As at 30 Jun 2020 2024 Total debt ~$1,055.2m of
Slide 11: Prudent Capital Management
◼ Managing interest rate exposure: Prudent Capital Management 69% of loans hedged with floating-to- fixed interest rate swaps, with the remaining unhedged borrowings in EUR Investment properties breakdown1 Debt currency breakdown (as at 30 Jun 2020) (as at 30 Jun 2020) ◼ Mitigating impact of currenc
Slide 12: Portfolio Update
Portfolio Update KGyt] DC REIT 12 ff
Slide 13: Stable income stream with healthy portfolio occupancy and long WALE
Stable income stream with healthy portfolio occupancy and long WALE Diversified and Resilient Portfolio ▪ Obtained tax transparency treatment for Keppel DC Singapore 4 ▪ Renewed land lease of Keppel DC Singapore 4 by 30 years Portfolio Occupancy Portfolio WALE ▪ Additional power capacity at Keppel D
Slide 14: Diversified and Resilient Portfolio
▪ Quality data centres that cater to the requirements of global clientele Diversified and Resilient Portfolio ̶ Colocation facilities provide diverse client Rental income breakdown for Jun 20201 profile and lease expiry ̶ Fully-fitted and shell & core facilities By trade sector: By lease type: Inter
Slide 15: Prioritising Well-being of Clients and Employees amid COVID-19
Prioritising Well-being of Clients and Employees amid COVID-19 Closely monitoring impact on asset enhancement initiatives Heightened controls and safety Ireland: Resumed works at Keppel DC Dublin 1 in May measures 2020 with expected completion in 2H 2020, subject to ▪ Temperature screening, online h
Slide 16: Supporting Community Efforts in this Pandemic
Supporting Community Efforts in this Pandemic Continued engagement with Keppel Capital’s beneficiaries from the Muscular Dystrophy Association of (Singapore) (MDAS) through virtual game sessions 16
Slide 17: Outlook
Outlook iKeppellatus wf
Slide 18: Resilient Asset Class that Supports the Digital Economy
Resilient Asset Class that Supports the Digital Economy ▪ COVID-19 a catalyst to go digital, and some of these online behaviours are expected to continue post- pandemic1 ▪ Expect higher data traffic as enterprises adopt cloud solutions and ensure adequacy of collaboration platforms and videoconferen
Slide 19: Positioned for Growth
Positioned for Growth ▪ The Manager will continue to strengthen Keppel DC REIT’s presence and position it to capitalise growth opportunities in the data centre industry Fast growing asset class Resilient income stream Focused investment strategy Prudent capital management 19
Slide 20: Thank You
Thank You Important Notice: The past performance of Keppel DC 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
Slide 21: Additional Information
NG) -y-1) DC REIT Additional Information y
Slide 22: Keppel DC REIT Structure
Keppel DC REIT Structure as at 30 Jun 2020 Keppel Keppel Capital Telecommunications & Transportation Institutional and The REIT Manager can leverage The REIT Manager can leverage Public Investors the scale and resources of a larger the Sponsor‘s expertise and track asset management platform record i
Slide 23: Portfolio Overview (as at 30 Jun 2020)
Portfolio Overview (as at 30 Jun 2020) Attributable No. of Occupancy WALE Location Interest lettable area Valuation2 Lease type Land lease title clients1 rate (%) (years) (sq ft) Asia Pacific Leasehold Keppel lease / Keppel DC Singapore 1 Singapore 100% 109,721 21 89.2 S$296.0m 4.3 (Expiring 30 Sep
Slide 24: Portfolio Overview (as at 30 Jun 2020)
Portfolio Overview (as at 30 Jun 2020) Attributable lettable No. of Occupancy WALE Location Interest Valuation2 Lease type Land lease title area (sq ft) clients1 rate (%) (years) Sydney, A$57.7 m Triple-net Intellicentre 2 Data Centre 100% 87,930 1 100.0 15.1 Freehold Australia (S$53.4m) (Shell & co
Slide 25: Overview of Lease Arrangements
Overview of Lease Arrangements Responsibilities of Owner Maintenance Insurance Lease Property Asia Pacific Description Building Refresh Arrangement Capex Opex Tax Keppel lease1 / ◼ Client: Pays rent Keppel DC Singapore 1 ✓ ✓ ✓ ✓ Colocation3 ◼ Owner: Bears all expenses; responsible for facilities man
Slide 26: Overview of Lease Arrangements
Overview of Lease Arrangements Responsibilities of Owner Maintenance Lease Insurance Europe Description Property Building Arrangement Refresh Capex Opex Tax Cardiff Data Centre Triple-net lease ◼ Client: Pays rent and all outgoings; responsible for facilities management - - - - GV7 Data Centre Tripl