Keppel REIT · SGX:K71U
Keppel REIT — Shareholder Meeting (November 2014)
22 slides from Keppel REIT's shareholder meeting presentation, Nov 24, 2014
Slide 1: Proposed Acquisition of a One-third Interest in Marina Bay Financial Centre Tower 3
Proposed Acquisition of a One-third Interest in Marina Bay Financial Centre Tower 3 Extraordinary General Meeting 24 November 2014 KEPPEL REIT EXTRAORDINARY GENERAL MEETING | PROPOSED ACQUISITION OF A ONE-THIRD INTEREST IN MBFC TOWER 3 1
Slide 2: Important Notice
Important Notice Important Notice The value of 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 princip
Slide 3: Growth Record
Growth Record • Divested stake in Prudential Tower • Proposed acquisition of a • Increased interest • Acquisition of the one-third in OFC to 99.9% new office tower interest in at the Old MBFC Tower 3 • Obtained tax Treasury Building • First overseas transparency acquisition • First forward in Perth
Slide 4: Consistent with Investment and Growth Strategy
Consistent with Investment and Growth Strategy » Strategic rejuvenation of property portfolio » On 26 September 2014, Keppel REIT completed the divestment of its 92.8% interest in Prudential Tower for S$512.0 million • 4.5% premium to the last valuation of S$490.0 million(1) • 46.7% over the origina
Slide 5: Quality Portfolio of Properties
Quality Portfolio of Properties Singapore Properties Ocean Financial Centre Marina Bay Financial Centre Phase One Raffles Quay Bugis Junction Towers Marina Bay Financial Centre Prudential Tower (99.9% interest) 1 (33.33% interest) (33.33% interest) Tower 3 (33.33% interest) (92.8% interest) Australi
Slide 6: Marina Bay Financial Centre Tower 3
Marina Bay Financial Centre Tower 3 KEPPEL REIT EXTRAORDINARY GENERAL MEETING | PROPOSED ACQUISITION OF A ONE-THIRD INTEREST IN MBFC TOWER 3 6
Slide 7: MBFC Tower 3: Premium Grade A Office Building
MBFC Tower 3: Premium Grade A Office Building MBFC Tower 3 Newly completed building located in the heart of prime waterfront land in Marina Bay with a total NLA of approximately 1.34 million sq ft A 46-storey Premium Grade A office building designed by Kohn Pedersen Fox Associates, a world-renowned
Slide 8: MBFC Tower 3: Tenancy Profile
MBFC Tower 3: Tenancy Profile » Well-established tenant base with long weighted average lease expiry (WALE) of 7.0 years » Occupancy at MBFC Tower 3 is approximately 96% as at 31 October 2014 • Leading financial services group in Asia with more than 250 branches across 17 markets DBS Bank • Listed o
Slide 9: Transaction Summary
Transaction Summary KEPPEL REIT EXTRAORDINARY GENERAL MEETING | PROPOSED ACQUISITION OF A ONE-THIRD INTEREST IN MBFC TOWER 3 9
Slide 10: Transaction Summary: Agreed Value and Independent Valuations
Transaction Summary Agreed Value Independent Valuations » Agreed value: S$1,248.0 million or S$2,790 psf Agreed value of the MBFC Tower 3 Interest is lower than the two independent valuations done - Inclusive of a five-year rental support of S$1,281.0 million(1) S$1,276.0 million(1) approximately S$
Slide 11: Purchase Consideration and Funding Structure
Purchase Consideration Purchase Consideration Funding Structure Agreed Value S$1,248.0 million » Divestment proceeds from Prudential Tower Less: » Placement proceeds(3) Adjustments for net S$537.9 million (1) » Consideration Units to liabilities Keppel Land(4) Purchase » Borrowings(5) Consideration
Slide 12: Post-Acquisition: Capital Management
Post-Acquisition: Capital Management » Continue to adopt a prudent and proactive capital management strategy Interest Coverage Ratio Percentage of Assets Unencumbered 72% or S$5.8 billion 4.9 times of property portfolio All-in Interest Rate Borrowings on Fixed-rate (1) ~2.3% ~65% of borrowings (1) A
Slide 13: Post-Acquisition: Capital Management
Post-Acquisition: Capital Management Million Pro Forma Debt Maturity Profile (S$ million) 1200 1000 800 (1) 540 600 (2) 275 75 121 400 733 715 200 404 387 300 350 0 0 2014 2015 2016 2017 2018 2019 2020 Post-acquisition (1) One-third share of estimated bank borrowings in CBDPL’s books. (2) (3) Estima
Slide 14: Key Benefits of Transaction
Key Benefits of Transaction KEPPEL REIT EXTRAORDINARY GENERAL MEETING | PROPOSED ACQUISITION OF A ONE-THIRD INTEREST IN MBFC TOWER 3 14
Slide 15: Youngest Commercial S-REIT Portfolio
Youngest Commercial S-REIT Portfolio » Youngest portfolio of premium assets in Raffles Place and Marina Bay precincts » Average portfolio age will improve to approximately 5.5 years » Reduce need for extensive asset enhancement initiatives or large capital expenditure KEPPEL REIT EXTRAORDINARY GENER
Slide 16: Provide Long-Term Income Stability and Sustainability
Provide Long-Term Income Stability and Sustainability » Lengthen WALE by NLA for top 10 tenants to 9.2 years and portfolio to 6.4 years (1) (1) » Top 10 tenants are diversified across six buildings in Singapore and Australia Portfolio WALE (by NLA) Top 10 Tenants 9.2 years(1) » Australia and New Zea
Slide 17: Complete Ownership Interest in MBFC
Complete Ownership Interest in MBFC » Keppel REIT will have an ownership interest in all three office towers at MBFC » Greater flexibility to optimise leasing and operational efficiencies KEPPEL REIT EXTRAORDINARY GENERAL MEETING | PROPOSED ACQUISITION OF A ONE-THIRD INTEREST IN MBFC TOWER 3 17
Slide 18: Post-Acquisition: Portfolio of Premium Office Assets
Post-Acquisition: Portfolio of Premium Office Assets 1 Portfolio of 12 office towers across nine quality Premium Grade and Grade A office assets and tenanted to established corporations across various business sectors 2 Premium office buildings located in the prime CBDs of Singapore and Australia, b
Slide 19: Leading Landlord in Singapore's Prime Business Districts
Leading Landlord in Singapore’s Prime Business Districts » Strengthen Keppel REIT’s position as the leading landlord of iconic office buildings strategically located in the prime precincts of Raffles Place and Marina Bay, the new downtown core of Singapore’s Central Business District Marina Bay Fina
Slide 20: Recommendation by Institutional Shareholder Services (ISS)
Recommendation by Institutional Shareholder Services (ISS) » ISS is the world’s leading provider of corporate governance solutions, offering objective governance research and recommendations Institutional Shareholder Services » In their report dated 10 November 2014, ISS has recommended that investo
Slide 21: Summary of Approvals Sought
Summary of Approvals Sought » The Manager seeks Unitholders’ approval for the following 3 resolutions: Resolution 1: the proposed acquisition of a one-third Interest in Marina Bay Financial Centre Tower 3 Resolution 2: the proposed issuance of new units as partial consideration for the proposed acqu
Slide 22: Thank You
Thank You KEPPEL REIT EXTRAORDINARY GENERAL MEETING | PROPOSED ACQUISITION OF A ONE-THIRD INTEREST IN MBFC TOWER 3 22