Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — Q1 2018 Earnings Presentation
27 slides from Keppel Dc Reit's earnings presentation, Apr 16, 2018
Slide 1: First Quarter 2018 Financial Results
First Quarter 2018 Financial Results 16 April 2018
Slide 2: Important Notice
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 and assump
Slide 3: Content
Content Key Highlights Financial Performance Portfolio Review Capital Management Outlook Additional Information 2
Slide 4: Key Highlights
Key Highlights
Slide 5: Key Highlights
Key Highlights $ € £ Distribution per Unit1 Portfolio Occupancy Aggregate Leverage2 1.80 cents 93.7% 37.4% for 1Q 2018 as at 31 Mar 2018 as at 31 Mar 2018 Annualised Distribution Yield Portfolio WALE Interest Coverage 5.00% 9.6 years 10.7 times based on 1Q 2018’s by leased area as at 31 Mar 2018 clo
Slide 6: Financial Performance
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Slide 7: Distributable Income
Distributable Income +/(-) ($’000) 1Q 2018 1Q 2017 % Distributable Income to Unitholders1 20,867 21,766 (4.1) Comprising: Gross Revenue 38,008 32,224 +17.9 Property Expenses (3,920) (3,380) +16.0 Net Property Income 34,088 28,844 +18.2 Distribution per Unit2 (DPU) (cents) 1.80 1.89 (4.8) Adjusted DP
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights As at As at +/(-) ($’000) 31 Mar 2018 31 Dec 2017 % Investment Properties 1,719,094 1,570,090 +9.5 Total Assets 1,896,543 1,763,282 +7.6 Gross Borrowings1 685,738 546,481 +25.5 Total Liabilities 787,082 646,780 +21.7 Unitholders’ Funds 1,082,663 1,089,716 (0.6) Units in Issu
Slide 9: Aggregate Leverage
Aggregate Leverage As at As at +/(-) ($’000) 31 Mar 2018 31 Dec 2017 % Investment Properties1 1,685,325 1,536,321 +9.7 (excluding finance lease liabilities commitments) Deposited Properties1 1,834,581 1,701,350 +7.8 (excluding finance lease liabilities commitments) Gross Borrowings + Deferred Paymen
Slide 10: Portfolio Review
Portfolio Review
Slide 11: Completion of First German Acquisition
Completion of First German Acquisition Expansion of the REIT’s footprint in Europe with its first German acquisition completed on 30 March 2018 The four-storey fully-fitted data centre has energy-efficient features and has been certified by TÜV as a Level 3 Highly Available data centre Commenc
Slide 12: Diversified & Resilient Portfolio
Diversified & Resilient Portfolio Geographical diversification of portfolio enhances income stream sustainability Portfolio WALE remained long at 9.6 years while occupancy was at 93.7% Acquisition of the remainder of 999-year leasehold land interest in Keppel DC Dublin 1 announced on 14 March
Slide 13: Diversified & Resilient Portfolio (Cont'd)
Diversified & Resilient Portfolio (Cont’d) Rental income breakdown for the month of March 20181 Quality data centres that cater to the requirements of global clientele By trade sector: Income stability with a mix of master-leased Corporate Internet facilities on long leases, as well as colocatio
Slide 14: Capital Management
Capital Management
Slide 15: Prudent Capital Management
Prudent Capital Management Managing interest rate exposure: Interest rates of long-term Borrowings on Fixed Rate As at 31 March 2018 loans substantially hedged with floating-to-fixed interest rate swaps Floating Diversifying sources of funding: Issuance of €50 million floating Fixed Rate Rate ra
Slide 16: Prudent Capital Management (Cont'd)
Prudent Capital Management (Cont’d) Mitigating impact of currency fluctuations: Hedged the REIT’s forecasted foreign-sourced distributions till 1H 2019 through foreign currency forward contracts Adopted natural hedging by borrowing in currencies that match the corresponding investments Investm
Slide 17: Outlook
Outlook
Slide 18: Sound Industry Fundamentals
Sound Industry Fundamentals Demand for data centre space continues to be driven by: Enterprises moving towards digitalisation Increasing cloud adoption Development of new technologies Implementation of data sovereignty regulations These trends are expected to fuel data storage requiremen
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 Ireland Keppel DC Dublin 1, Dublin Keppel DC Dublin 2, Dublin Proactive United Kingdom Asset 1 Management GV7 Data Centre, London C
Slide 20: Committed to Deliver Value
Committed to Deliver Value Vision: To be the preferred data centre real estate investment trust, serving as a trusted partner to our stakeholders. Mission: Guided by the Keppel Group’s operating principles and core values, we will create value for our investors by growing a quality portfolio of data
Slide 21: Additional Information
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Slide 22: Keppel DC REIT Structure
Keppel DC REIT Structure Keppel Telecommunications Keppel Capital & Transportation The REIT Manager can leverage The REIT Manager can leverage the scale and resources of a larger the Sponsor‘s expertise and track Institutional and Keppel Land asset management platform record in this industry Public
Slide 23: Portfolio Overview (as at 31 March 2018)
Portfolio Overview (as at 31 March 2018) Attributable No. of Occupancy Valuation2 WALE Location Interest lettable area Lease type Land lease title Asia Pacific clients1 rate (%) ($m) (years) (sq ft) Leasehold Keppel DC Keppel lease / (Expiring 30 Sep 2025, Singapore 100% 109,721 16 84.6 286.0 4.0 Si
Slide 24: Portfolio Overview (as at 31 March 2018) (Cont'd)
Portfolio Overview (as at 31 March 2018) (Cont’d) Attributable No. of Occupancy Valuation2 WALE Location Interest lettable area Lease type Land lease title Europe (sq ft) clients1 rate (%) ($m) (years) Cardiff, Triple-net Cardiff Data Centre United 100% 79,439 1 100.0 62.0 13.2 Freehold (Shell & cor
Slide 25: Overview of Lease Arrangements
Overview of Lease Arrangements Asia Pacific Responsibilities of Owner Maintenance Lease Insurance Property Description Property Building Arrangement Refresh Capex Opex Tax Keppel lease1 / Client: Pays rent Keppel DC Singapore 1 Colocation3 Owner: Bears all expenses; responsible for facil
Slide 26: Overview of Lease Arrangements (Cont'd)
Overview of Lease Arrangements (Cont’d) Europe Responsibilities of Owner Maintenance Lease Insurance Property 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
Slide 27: Thank you.
Thank you. LG yt) DC REIT 26