Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — K-REIT Asia — Q1 2009 Earnings Presentation
17 slides from Singapore Exchange's earnings presentation, Apr 21, 2009
Slide 1: 1Q 2009 Financial Results
1Q 2009 FINANCIAL RESULTS 21 Apr 2009 1 Contents Operations Review Portfolio Analysis Capital Management Market Review & Outlook Going Forward 2
Slide 2: Highlights
Highlights 9 1Q 2009 distributable income 37.3% y‐o‐y 9 Net property income 18.4% y‐o‐y 9 Portfolio with 95.8% committed occupancy 9 Average portfolio gross rental rate in Mar 2009 17.5% y‐o‐y 9 Low aggregate leverage of 27.6% 9 No refinancing requirements until 2011 3 Operations Review 4
Slide 3: 1Q 2009 Distributable Income and Quarter-on-Quarter Performance
1Q 2009 Distributable Income Up 37.3% ($'000) 1Q 2009 1Q 2008 Change % Chg Property Income 14,785 11,506 3,279 28.5 Net Property Income 10,820 9,141 1,679 18.4 Distributable Income 15,658 11,405 4,253 37.3 to Unitholders (1) Distribution Per Unit (cents) 2.38 4.60 (2.22) (48.3) (2) (3) Distribution
Slide 4: Rising DPUs and Attractive Distribution Yield
Rising DPUs % 8. 3 10 9.65 8.82 8.91 9 8 DPU (cents) 7 6.76 6 5 FY2006 FY2007 FY2008 FY2009 (Annualised)(1) (1) Based on annualised distribution per unit for 1Q 2009; distribution for 1Q 2009 was 2.38 cents per unit. 7 Attractive Distribution Yield As at 31 Mar 2009 16.2% Net Yields: 14.1% Local Cor
Slide 5: Healthy Balance Sheet
Healthy Balance Sheet Aggregate leverage of 27.6% • Lower than S‐REIT sector average of about 35%(1) As at ($ million) 31 Mar 2009 Non‐current Assets 2,028.0 Total Assets 2,073.0 Borrowings 577.6 Total Liabilities 612.0 Unitholders' Funds 1,461.0 Net Asset Value Per Unit $2.22 Adjusted Net Asset V
Slide 6: Broad Tenant Diversity and Blue-chip Tenants
Broad Tenant Diversity Tenant Business Sector by Net Lettable Area as at 31 Mar 2009 Accounting & consultancy Shipping & marine services services 7.7% 4.0% Services 9.0% Real estate & property services 8.1% Banking, insurance & 112 tenants financial services Pharmaceuticals & 35.3% in total healthca
Slide 7: Occupancy Rate and Long Lease Terms
Occupancy Rate 95.8% committed occupancy of portfolio as at 31 Mar 2009 higher than core CBD occupancy of 93.1%(1) As at As at Assets 31 Mar 2009 31 Dec 2008 Prudential Tower 87.7% 92.3% Keppel Towers and GE Tower 95.9% 99.2% Bugis Junction Towers 91.5% 100% One Raffles Quay (1/3 stake) 100% 100%
Slide 8: Portfolio Lease Profile and 2009 Lease Expiry Profile by Asset
Portfolio Lease Profile Lease Profile as a % of Net Lettable Area as at 31 Mar 2009 19.9% 16.0% 14.3% 11.5% 9.4% 9.5% 9.7% 8.1% 6.3% 2.6% 2009 2010 2011 2012 2013 Lease Expiry as a Percentage of Portfolio's Total NLA (Including 1/3 ORQ) Rent Review as a Percentage of Portfolio's Total NLA (Including
Slide 9: 2009 Rent Review Profile and Average Portfolio Rent
2009 Rent Review Profile by Asset Net Lettable Area As at 31 Mar 2009 Area Subject to Rent % of Portfolio’s Review in 2009 (sf) NLA One Raffles Quay (1/3 stake) 31,915 2.6% Total 31,915 2.6% 17 Average Portfolio Rent Below Market Rents Average portfolio rent in Mar 2009: $8.06 psf pm Average Portf
Slide 10: Prudent Financial Management
Capital Management 19 Prudent Financial Management As at 31 Mar 2009 Gross Borrowings $581.1m Aggregate Leverage 27.6% All‐in Interest Rate 4.26% Interest Coverage Ratio (1) 3.04 times Weighted Average Term to Expiry 2.0 years Corporate Rating (by Moody’s) Baa3 (1) Interest coverage ratio = Ratio of
Slide 11: No Immediate Need for Refinancing
No Immediate Need for Refinancing About 2/3 of total debt is unsecured Debt Profile as at 31 Mar 2009 Fixed‐rate $190m Maturing in May 2011 mortgage loan Floating‐rate $391m Maturing in Mar 2011 unsecured loan $ million 150 200 250 300 350 400 21 Market Review and Outlook 22
Slide 12: Weak Market Sentiment and Office Rents Moderating
Weak Market Sentiment Global economic downturn deepens • Singapore government cut GDP forecast to between ‐9% and ‐6% in 2009 • Office demand likely to be soft for 2009 • However, collective efforts by worldwide governments prevent downturn from worsening Singapore government’s measures to cushi
Slide 13: Singapore: Key Business Destination in Longer Term
Singapore: Key Business Destination in Longer Term Singapore: • Remains a key investment market in Asia – 4th in Forbes magazine's 2009 ranking of the best countries to do business • Diversifying beyond a financial hub and establishing multi‐ hubs in various industry sectors • In the medium term:
Slide 14: Meeting Challenges Ahead and Positive Factors
Meeting Challenges Ahead Priority on tenant retention and proactive asset management Opportunities for selective asset acquisitions 27 Positive Factors for K‐REIT Asia 28
Slide 15: Thank You
Thank You The value of units in K‐REIT Asia (“Units”) and the income from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the princi
Slide 16: Snapshot of K-REIT Asia
Snapshot of K‐REIT Asia Manager K‐REIT Asia Management Limited Property Portfolio 5 commercial office assets valued at $2.1 billion Listing Date 28 Apr 2006 on Singapore Stock Exchange Market Capitalisation $450 million as at 20 Apr 2009 Unit Price $0.685 Number of Units in Issue 657,543,286 Free Fl
Slide 17: Asset Portfolio
Asset Portfolio Prudential Tower Keppel Towers GE Tower Bugis Junction Towers One Raffles Quay North Tower One Raffles Quay South Tower 33