Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Keppel Pacific Oak US REIT — Q1 2023 Earnings Presentation
24 slides from Singapore Exchange's earnings presentation, Apr 18, 2023
Slide 1: 1Q 2023 Key Business and Operational Updates
1Q 2023 Key Business and Operational Updates 18 April 2023
Slide 2: Financial Performance
Financial Performance Financial Highlights 1Q 2023 1Q 2022 % Adjusted Distributable Income for (US$ ’m) (US$ ’m) Change 1Q 2023 was down 12.5% year-on-year to US$13.1m due to: Gross Revenue 37.1 37.0 0.2 • Divestments of Northridge Center I & II and Powers Ferry in 2H 2022. • Higher financing cost a
Slide 3: Stable Financial Position
Stable Financial Position Prudent capital management with 100% unsecured loans provide greater financial flexibility, no long-term refinancing obligation till late 2024 As at 31 March 2023 Debt Maturity Profile (as at 31 March 2023) Total Debt • US$580.2 million of external loans • 100% unsecured an
Slide 4: Quality Portfolio Driven By Tech and Innovation
SEATTLE – BELLEVUE/REDMOND, Washington NASHVILLE, Tennessee Quality Portfolio The Plaza Buildings Bellevue Technology Center Occupancy: 95.1% The Westpark Portfolio Bridge Crossing Occupancy: 100% Occupancy: 90.3% Occupancy: 97.2% Driven By ORLANDO, Florida Tech and DENVER, Colorado Innovation Westm
Slide 5: Steady Income with Visible Organic Growth
Steady Income with Visible Organic Growth ~218,897sf New Renewal Expansion Leased spaces for 1Q 2023, equivalent to 4.6% New leasing demand and expansions from: of portfolio NLA. Excluding Spectrum’s major renewal/expansion, the leased spaced is 25.9% TAMI(2) 59.5% ~117,931 sf, equivalent to 2.5% of
Slide 6: Resilient Portfolio with Diversified Tenant Composition
Resilient Portfolio with Diversified Tenant Composition KORE’s buildings and business campuses in ~49% of KORE’s portfolio NLA comprises the tech hubs of Seattle – Bellevue/Redmond, high-quality tenants from the growing and Austin and Denver contribute ~67% of NPI(1) defensive sectors of TAMI, medic
Slide 7: Low Tenant Concentration Risk
As at 31 March 2023 Top 10 Tenants Sector Asset Location % of CRI Low Tenant Comdata Inc TAMI Bridge Crossing Nashville 3.5 Concentration Ball Aerospace Lear Cooperation TAMI TAMI Westmoor Center The Plaza Buildings Denver Seattle – 3.0 2.8 Bellevue/Redmond Risk Gogo Business Aviation TAMI 105 Edgev
Slide 8: Last 12 Months Rent Growth
Last 12 Months Rent Growth 0.9% Key Growth Markets Average 1.2% United States Average 0.9% Gateway Cities Average 0.1% US Average Seattle, Bellevue CBD 1.1% Seattle, Eastside Bellevue 1.9% Seattle, Redmond 2.0% Austin, Northwest 0.9% Denver, Northwest Denver, Broomfield 0.8% 1.7% 1.2% Nashville, Bre
Slide 9: Projected 12-Month Rent Outlook
Projected 12-Month Rent Outlook Key Growth Markets Average United States Average 0.2% 1.0% 0.2% Gateway Cities Average -0.9% US Average Seattle, Bellevue CBD 0.9% Seattle, Eastside Bellevue 0.8% Seattle, Redmond 0.8% Austin, Northwest -1.0% Denver, Northwest Denver, Broomfield 1.0% 1.3% 1.0% Nashvil
Slide 10: First Choice Submarkets Outlook
First Choice Submarkets Outlook Property Submarket Last 12M Last 12M Under Last 12M Projected Submarket Vacancy Rate Vacancy Rate Deliveries Absorption Construction Rental Growth Rental Growth Property (%) (%) (sf’000) (sf’000) (sf’000) (%) (%) Seattle, Bellevue CBD 9.7 7.9 - (243) 4,747(1)* 1.1 0.9
Slide 11: Market Outlook
Market Outlook Maitland Promenade I Orlando, Florida
Slide 12: U.S. Economic Updates
U.S. Economic Updates (2) % Unemployment Rate (2) % Labour Force Participation Rate 20 66 65 • US real GDP increased by 2.6% 15 64 quarter-on-quarter in 4Q 2022(1). 63 10 62 • Unemployment rate dipped to 3.5% in 5 61 March 2023(2). 60 0 59 • Labour force participation rate increased to 62.6% in Marc
Slide 13: Growth in the U.S. Economy
Growth in the U.S. Economy Real GDP Percent Change at Annual Rate(1), 2022: Q3 – 2022: Q4 Key Growth Markets Average 4.7% 2.6% United States Average 2.6% US Average Gateway Cities Average 1.7% Seattle 3.7% Austin 7.0% 4.7% Denver 2.7% Nashville 4.3% Houston 7.0% Average of Key Dallas 7.0% Growth Mar
Slide 14: Continued Exodus From America's Big Cities
Continued Exodus From America’s Big Cities • Most of the gateway cities continue to face a tough future. 2021-2022 population change among the top 10 largest metro areas(1) • New York continues to lead the country in population loss and outmigration(1). Phoenix Miami ➢ Saw largest annual numeric and
Slide 15: Large Firms Cutting Back Work-From Home
Large Firms Cutting Back Work-From Home • Amazon and Meta joins corporate giants Disney, General Motors, Walmart, Starbucks and Vanguard Group in asking employees to return to offices more frequently. ❖ Workplace collaboration and culture essential for employee development. ❖ Shift in bargaining pow
Slide 16: First choice US office S-REIT focused on TAMI, medical and healthcare
Strategic presence in some of the fastest growing states in the U.S. First choice Exposure to the fast-growing TAMI, medical and healthcare sectors provides US office S-REIT income resilience. focused on the fast-growing TAMI, medical and Highly diversified portfolio with low tenant concentration ri
Slide 17: Thank You / Important Notice
Important Notice The past performance of Keppel Pacific Oak US REIT is not necessarily indicative of its future performance. Certain Thank You statements made in this release may not be based on historical information or facts and may be “forward-looking” statements due to a number of risks, uncerta
Slide 18: Additional Information
Additional Information Bellevue Tech Center Bellevue, Seattle, Washington
Slide 19: KORE's Presence In Key Growth Markets
KORE’s Presence In Key Growth Markets Popular in-migration destinations due to attractive lifestyle, culture and employment opportunities Seattle, Washington ❖ The Plaza Buildings SEATTLE ❖ Bellevue Technology Center #17 Seattle ❖ The Westpark Portfolio Austin, Texas ❖ Westech 360 #4 ❖ Grea
Slide 20: California's Business Exits
California’s Business Exits California lost a total of 352 headquarters in the period January 1, 2018 through December 31, 2021 • Los Angeles and San Francisco counties have experienced the highest number of relocations, to growth markets where KORE is present. California Headquarters Losses From Ja
Slide 21: Relocations Out of California
Relocations Out of California Top 10 states for California relocations (1) Rank State Known Relocations 1 Texas 132 2 Tennessee 31 3 Nevada 25 • High cost of buildings are driving large 4 Florida 24 corporations away from California. 5 Arizona 21 • Housing affordability crisis another reason 6 Color
Slide 22: 2022 Sustainability Achievements
2022 Sustainability Achievements Execute sound fiscal and asset management strategy to drive growth and long-term value for Unitholders ENVIRONMENTAL STEWARDSHIP RESPONSIBLE BUSINESS ✓ Established a dedicated Board ESG ✓ Maintain high standards of ethical Committee business conduct and compliance ✓
Slide 23: Trust Structure
Sponsors(2) Trust Structure Keppel Capital KPA Unitholders Keppel Capital International Keppel ✓ No withholding (1)tax in relation to Trustee Management Management Agreement Section 1446(f) Services Fees Keppel Pacific Oak US REIT Trustee Management Trustee Management (Manager) ✓ Tax-efficient struc
Slide 24: Strong Sponsors: Keppel Capital and KORE Pacific Advisors
Strong Sponsors: Keppel Capital and KORE Pacific Advisors (2) • Asset management arm of Keppel Corporation • Established commercial real estate investment and a premier manager in Asia manager in the US • US$36.6 billion(1) • US$4.0 billion Global assets under management as at end-2022 Assets under
Keppel Pacific Oak US REIT — Q1 2023 Earnings Presentation on 6ix