Slide 1: Fourth Quarter & Full Year 2017 Financial Results
Fourth Quarter & Full Year 2017 Financial Results 22 January 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 $ € £ FY 2017 DPU Declared1 Portfolio Occupancy Aggregate Leverage2 7.12 cents 92.6% 32.1% 2H 2017 DPU: 3.49 cents as at 31 Dec 2017 as at 31 Dec 2017 Distribution Yield1 Portfolio WALE Interest Coverage 4.98% 9.1 years 9.7 times based on FY 2017’s by leased area ended 31 Dec 2017 clo
Slide 6: Financial Performance
Financial Performance
Slide 7: Distributable Income
Distributable Income +/(-) +/(-) ($’000) 4Q 2017 4Q 2016 FY 2017 FY 2016 % % Distributable Income to Unitholders1 20,245 14,770 +37.1 82,320 61,048 +34.8 Comprising: Gross Revenue 36,828 26,840 +37.2 139,050 99,139 +40.3 Property Expenses (4,180) (1,898) >100.0 (13,931) (8,203) +69.8 Net Property In
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights As at As at +/(-) ($’000) 31 Dec 2017 31 Dec 2016 % Investment Properties 1,570,090 1,225,938 +28.1 Total Assets 1,763,282 1,582,999 +11.4 Gross Borrowings 1 546,481 439,321 +24.4 Total Liabilities 646,780 509,131 +27.0 Unitholders’ Funds 1,089,716 1,073,525 +1.5 Units in Is
Slide 9: Aggregate Leverage
Aggregate Leverage As at As at +/(-) ($’000) 31 Dec 2017 31 Dec 2016 % Investment Properties 1 1,536,321 1,193,540 +28.7 (excluding finance lease liabilities commitments) Deposited Properties 1 1,701,350 1,550,258 +9.7 (excluding finance lease liabilities commitments) Gross Borrowings + Deferred Pay
Slide 10: Distribution Declared
Distribution Declared DPU of 3.49 cents declared for 2H 2017, bringing FY 2017 DPU to 7.12 cents Excluding the one-off capital distribution, adjusted DPU for FY 2017 would be 6.97 cents, 4.3% higher than FY 2016’s adjusted DPU of 6.68 cents after adjusting for the impact of the pro-rata Preferen
Slide 11: Portfolio Review
Portfolio Review
Slide 12: Portfolio Growth since Listing
Portfolio Growth since Listing maincubes Data Centre2 (expected completion in 2Q 2018) Keppel DC Dublin 2 Keppel DC Singapore 31 Milan Data Centre Cardiff Data Centre Intellicentre 2 Data Centre 31 Dec 2017 AUM: $1.65b 31 Dec 2016 AUM: $1.51b 31 Dec 2015 AUM: $1.20b 12 Dec 2014 AUM: $1.07b AUM: $1.0
Slide 13: Asset Additions in 2017
Asset Additions in 2017 Strengthen Foothold Deepen Presence in Dublin in Singapore 20 January 2017: Keppel DC Singapore 3 12 September 2017: Keppel DC Dublin 2 Completed acquisition of 90% interest in Acquired a second data centre in Dublin, colocation data centre Keppel DC Singapore 3 Ireland,
Slide 14: Investment Update: maincubes Data Centre
Investment Update: maincubes Data Centre Development of data centre is close to completion in Offenbach am Main, Germany Data centre is undergoing fit out before commencement of 15-year triple-net master lease Income contribution upon legal completion of the deal expected in 2Q 2018 Legal comp
Slide 15: Diversified Income Streams
Diversified Income Streams Expanded portfolio provides diversified income streams and enhances sustainability Portfolio AUM Portfolio AUM Portfolio AUM Breakdown Breakdown Breakdown (assuming completion of (as at 31 December 2016) (as at 31 December 2017) maincubes DC) Italy, Germany, Italy, 3.9%
Slide 16: Long Portfolio WALE
Long Portfolio WALE Portfolio WALE remained long at 9.1 years while occupancy was at 92.6% Over the next 3 years, less than 5% of the leases expiring in each year Lease expiry profile (by leased area) As at 31 December 2017 69.6% 12.7% 8.5% 4.7% 2.2% 2.3% 2018 2019 2020 2021 2022 ≥2023 15
Slide 17: Diversified & Resilient Portfolio
Diversified & Resilient Portfolio Quality data centres that cater to the requirements of clients from internet enterprise, telecommunications, information technology services and financial services sectors Rental income breakdown by trade sector1 Top 10 clients (based on rental income) 1 Client In
Slide 18: Diversified & Resilient Portfolio (Cont’d)
Diversified & Resilient Portfolio (Cont’d) Rental income breakdown for the Income stability with an established global clientele and month of December 20171 a mix of master-leased facilities on long leases, as well as By lease type: colocation facilities which provide diversity in terms of client pr
Slide 19: Capital Management
Keppel DC REIT Lorne wR Btn oetie, +. [em Siw Capital Management V/A
Slide 20: Prudent Capital Management
Prudent Capital Management Early refinancing of loans: Refinanced all loans that were Hedging of borrowing costs maturing in 2018 As at 31 December 2017 Diversifying sources of funding: Established $500,000,000 Multicurrency Medium Term Note Programme Hedged 86% Un- hedged Managing interest ra
Slide 21: Prudent Capital Management (Cont’d)
Prudent Capital Management (Cont’d) Mitigating impact of currency fluctuations: Hedged the REIT’s forecasted foreign-sourced distributions till 1H 2019 through foreign currency forward contracts Adopted natural hedging by borrowing in currencies that match the corresponding investments Investm
Slide 22: Outlook
Outlook
Slide 23: Positive Fundamentals
Positive Fundamentals Industry fundamentals remain intact, driven by global trends and developments that continue to propel data centre demand Worldwide Data1 @ 10x increase by 2025 Data Criticality1 20% critical; 10% hypercritical by 2025 Mobile Connectivity1 75% of world population by 2025 Sourc
Slide 24: Committed to Deliver Value
Committed to Deliver Value Vision: To be the preferred data centre real estate investment trust, serving as a trusted partner to our stakeholders. Mission: Guided by the Keppel Group’s operating principles and core values, we will create value for our investors by growing a quality portfolio of data
Slide 25: Additional Information
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Slide 26: Keppel DC REIT Structure
Keppel DC REIT Structure Keppel Telecommunications Keppel Capital & Transportation The REIT Manager can leverage The REIT Manager can leverage the scale and resources of a larger the Sponsor‘s expertise and track Institutional and Keppel Land asset management platform record in this industry Public
Slide 27: Portfolio Overview (as at 31 December 2017)
Portfolio Overview (as at 31 December 2017) Attributable No. of Occupancy Valuation2 WALE Location Interest lettable area Lease type Land lease title Asia Pacific clients1 rate (%) ($m) (years) (sq ft) Leasehold Keppel DC Keppel lease / (Expiring 30 Sep 2025, Singapore 100% 109,721 17 84.6 286.0 4.1
Slide 28: Portfolio Overview (Cont’d)
Portfolio Overview (as atAttributable 31 December 2017) (Cont’d) No. of Occupancy Valuation2 WALE Location Interest lettable area Lease type Land lease title Europe (sq ft) clients1 rate (%) ($m) (years) London, Leasehold Triple-net GV7 Data Centre United 100% 24,972 1 100.0 68.3 9.1 (Expiring (Full
Slide 29: 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 30: 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 GV7 Data Centre Triple-net lease Client: Pays rent and all outgoings; responsible for facilities management - - - - Cardiff
Slide 31: Thank you.
Thank you. LG yt) DC REIT 30