Kore Us Reit · SGX:CMOU
Kore Us Reit — Keppel-KBS US REIT — Non-Deal Roadshow (February 2019)
23 slides from Kore Us Reit's roadshow presentation, Feb 26, 2019
Slide 1: Keppel-KBS US REIT Tokyo and Seoul Non-Deal Roadshow
Keppel-KBS US REIT Tokyo and Seoul Non-Deal Roadshow 25 – 26 February 2019
Slide 2: Contents and Important Notice
Contents Investment Highlights 2 Portfolio Overview 3 Operational Performance 11 Looking Ahead 17 Important Notice The past performance of Keppel-KBS US REIT is not necessarily indicative of its future performance. Certain statements made in this release may not be based on historical information or
Slide 3: Investment Highlights
Investment Highlights Distinctive office REIT focused on key growth markets in the US ◼ To invest in a diversified portfolio of income-producing commercial assets and real estate- Investment related assets in key growth markets of the United States with favourable economic and mandate office fundame
Slide 4: Portfolio Overview
Portfolio Overview First choice submarkets with positive growth fundamentals Seattle, Washington Description 13 office properties across 7 key growth markets NLA Over 4.3 million sf AUM US$1.07 billion The Westpark Portfolio The Plaza Buildings Bellevue Technology Center Occupancy rate: 97.1% Occupa
Slide 5: US Market Outlook
US Market Outlook Sound economic conditions ▪ US labour market continued to strengthen in 2018 Last 12M Deliveries ▪ Growth trajectory of the US economy projected to continue 59.9mln sf at a moderate pace as recovery matures ▪ Projected GDP growth of 2.3% in 2019 and 2.0% in 2020 Last 12M Absorption
Slide 6: US Market Outlook
US Market Outlook Attractive US office real estate fundamentals Deliveries & Demolitions1 Vacancy Rate1 Overall Net Absorption/Overall Overall Net Absorption/Overall Asking Rent2 Asking Rent 4-QTR TRAILING AVERAGE Forecast 25.0 $36 ◼ Solid leasing momentum has led to healthy 20.0 $34 absorption that
Slide 7: First Choice Submarkets: West Coast
First Choice Submarkets : West Coast Seattle Sacramento Central 31% ▪ Strong economic and population growth, largely ▪ The capital of California and benefits from driven by technology and aerospace a diversified economy (e.g. education, Seattle West Coast manufacturing industries healthcare and prof
Slide 8: First Choice Submarkets: Central
First Choice Submarkets: Central Denver Austin Houston East Coast ▪ Young and educated workforce, ▪ Major technology hub in Texas ▪ Fifth largest MSA in USA, and 12% strong population growth and low which benefits from a highly home to the Texas Medical Center business cost and taxes propel educated
Slide 9: First Choice Submarkets: East Coast
First Choice Submarkets: East Coast Orlando Atlanta East Coast 12% Atlanta ▪ Robust metropolitan area and a major hub ▪ Third most Fortune 500 company headquarters Orlando for aerospace companies with thriving in the US, with a steady stream of business technology, healthcare and tourist relocations
Slide 10: First Choice Submarkets: Rent growth drivers
First Choice Submarkets: Rent growth drivers Property and Submarket Vacancy Last 12M Last 12M Average Last 12M Projected Rate Deliveries absorption Submarket Rent Rental Growth Rental Growth (%) (sf’000) (sf’000) (US$ p.a.) (%) (%) The Plaza Buildings 5.9% - 98.0 48.9 10.4% 7.5% Seattle, Bellevue CB
Slide 11: Growing in Value
Growing in Value As at 31 Dec 2018 At IPO/Acquisition Cushman Valuation Purchase Price Cushman JLL Property (US$ ’million) (US$ ’million) (US$ ’million) (US$ ’million) The Plaza Buildings, Seattle, Bellevue CBD 253.5 240.0 243.9 236.1 Bellevue Technology Center, Seattle, Eastside 136.0 131.2 133.0 1
Slide 12: Operational Performance for the Financial Period from Listing Date to 31 December 2018
Operational Performance for the Financial Period from Listing Date to 31 December 2018 Maitland Promenade II, Orlando, Florida
Slide 13: Financial Performance
Financial Performance Higher DI driven by acquisition and stable operating performance 4Q 2018 (1) Listing Date to 31 Dec 2018 (1) Actual Forecast(2) % Actual Forecast(2) % (US$’000) (US$’000) Change (US$’000) (US$’000) Change Gross Revenue 24,502 23,128 5.9 105,917 104,902 1.0 Property Expenses (9,
Slide 14: Financial Performance: Healthy balance sheet
Financial Performance Healthy balance sheet US Tax Restructuring Update As at 31 Dec 2018 ▪ US Department of Treasury clarified its (US$’000) position and treatment of hybrid entities Total Assets 1,067,112 and hybrid arrangements on 20 Dec 2018 Investment Properties 1,016,750 ▪ Government of Barbad
Slide 15: Capital Management
Capital Management Limited interest rate exposure with term loans significantly hedged Debt Maturity Profile As at 31 Dec 2018 US$374.4m of external 38.7% 38.7% Total debt loans (100% unsecured) US$45.0m of undrawn 21.4% Available facilities revolving credit facility 1.3% (1) Aggregate leverage(2) 3
Slide 16: Leasing Updates
Leasing Updates Strong leasing momentum with positive rental reversion ▪ Strong leasing demand for KORE’s assets in first choice submarkets ▪ Committed ~133,000 sf (18 leases) in 4Q 2018, bringing total leases signed since IPO to ~741,000 sf (100 leases) ▪ Leasing demand mainly from the fast-growing
Slide 17: Well-Diversified Tenant Base
Well-Diversified Tenant Base Resilient portfolio with low tenant concentration risk ▪ Well-diversified tenant base across key growth sectors ▪ Top 10 tenants comprise 17.5% of portfolio NLA and contribute 20.8% of cash rental income Top 10 tenants by cash rental income as at 31 December 2018 Portfol
Slide 18: Looking Ahead
Looking Ahead Northridge Centre II, Atlanta, Georgia
Slide 19: KORE Strategy
KORE Strategy Focused on Stable Distributions and Delivering Long Term Value Portfolio Value Accretive Prudent Capital Optimisation Acquisitions Management ▪ Focused leasing strategy ▪ Pursue growth ▪ Effective hedging to targeting high growth opportunities that mitigate against impact sectors creat
Slide 20: Thank You
Thank You For more information, please visit www.kepkbsusreit.com Westech 360, Austin, Texas
Slide 21: Additional Information
Additional Information Great Hills Plaza, Austin, Texas
Slide 22: Structure of Keppel-KBS US REIT
Structure of Keppel-KBS US REIT Sponsors(1) KPA Keppel Capital Keppel Unitholders relevant International Pte. Ltd. Capital Tax-efficient structure for entity (“KCI”) holding US properties Keppel Management Agreement Trustee Management Keppel-KBS US REIT Services Keppel-KBS Fees Management Leverage S
Slide 23: Keppel Capital: Integrated Asset Management Platform With A Blue-Chip Parentage
Keppel Capital: Integrated Asset Management Platform With A Blue-Chip Parentage 20% ownership 100% ownership Private Fund Managers Listed REITs and Business Trust ▪Incepted in 2019 to ▪Private equity fund ▪Distinctive US office ▪Asia’s first data ▪One of the largest ▪One of the largest establish, of
Keppel-KBS US REIT — Non-Deal Roadshow (February 2019) on 6ix