Keppel Reit · SGX:K71U
Keppel Reit — 1Q 2021 Earnings Presentation
21 slides from Keppel Reit's earnings presentation, Apr 21, 2021
Slide 1: 1Q 2021 Key Business and Operational Updates
1Q 2021 Key Business and Operational Updates 21 April 2021
Slide 2: Outline
Outline Constituent of: ▪ Financial & Portfolio Highlights 5 FTSE ST Large & Mid Cap Index ▪ Market Review 13 ▪ Additional Information 18 FTSE EPRA Nareit Global Developed Index IMPORTANT NOTICE: The past performance of Keppel REIT is not necessarily indicative of its future performance. Certain sta
Slide 3: Sustainable Pan-Asian Portfolio with Income Resilience
Sustainable Pan-Asian Portfolio with Income Resilience $8.9b Singapore, Australia, ESG Awards 19.2% Grade A commercial portfolio with 77.4% ▪ BCA Green Mark Platinum award for strong committed occupancy to an South all Singapore assets established and diversified tenant base Korea, 3.4% ▪ 5 Stars an
Slide 4: Key Highlights
Key Highlights $51.6m 96.5% 1Q 2021 distributable income High portfolio committed occupancy from operations(1) as at 31 Mar 2021 Up 22.0% y-o-y $270.0m 6.7 years Gross proceeds raised from the Long portfolio weighted average lease private placement(2) that was expiry (WALE) as at 31 Mar 2021 approxi
Slide 5: Financial & Portfolio Highlights
Financial & Portfolio Highlights Pinnacle Office Park, Sydney 5
Slide 6: Financial Performance
Financial Performance Achieved year-on-year growth in distributable income from operations due mainly to: ▪ Contributions from Victoria Police Centre and Pinnacle Office Park, higher one-off income as well as lower borrowing costs ▪ Offset by the impact of slightly lower portfolio occupancy Distribu
Slide 7: Prudent Capital Management
Prudent Capital Management ▪ All-in interest rate reduced year-on-year to 2.01% p.a. from 2.58% p.a. ▪ Successful private placement of 238.9m new Units to partially fund the acquisition of Keppel Bay Tower, as well as increase Keppel REIT’s free float and liquidity ▪ Green loans represented approxim
Slide 8: Managing the COVID-19 Situation
Managing the COVID-19 Situation ▪ Keppel REIT’s quality office portfolio and high-quality tenant profile continue to provide income stability and resilience ▪ More tenants have returned to their office premises since the Singapore Government announced the updated workplace safe management measures w
Slide 9: Grade A Portfolio with High Occupancy and Long WALE
Grade A Portfolio with High Occupancy and Long WALE $8.9 billion portfolio in key business districts of Singapore, Australia and South Korea enhances income diversification and long-term stability T Tower, Seoul 8 Chifley Square, 99.4% Interest Pinnacle Office Sydney Occupancy: 98.6% Park, Sydney So
Slide 10: 1Q 2021 Leasing Update
1Q 2021 Leasing Update New leasing demand and expansions from: Leases Committed Leases Committed Total Leases Committed Banking, insurance and financial services 38.8% by Geography(1) by Type(1) ~309,800 sf Singapore, Renewal, Manufacturing and distribution 32.7% (Attributable ~146,800 sf) 46.7% Leg
Slide 11: Established and Diversified Tenant Base
Established and Diversified Tenant Base ▪ Keppel REIT has a diversified tenant ▪ Top 10 tenants take up 42.2% of NLA base of 354(1) tenants, many of which are and contribute 37.3% of gross rent established blue-chip corporations Top 10 Tenants Tenant Business Sector State of Victoria 10.4% Banking,
Slide 12: Operating in the New Environment
Operating in the New Environment Wellness Flexibility Technology 1m Strong hygiene, air quality Incorporation of flexibility into office Robust IT infrastructure and smart and safe management design and work arrangement building technology to support tenant measures to enhance to facilitate collabor
Slide 13: Market Review
Market Review T Tower, Seoul 13
Slide 14: Singapore Office Market
Singapore Office Market ▪ Average core CBD Grade A office rents remained stable at $10.40 psf pm in 1Q 2021 while average occupancy in core CBD increased slightly to 93.9% Grade A Rent and Core CBD Occupancy Demand and Supply 2.1 1.9 1.7 1.3 94.8% 95.8% 93.8% 94.8% 95.8% 93.8% 93.9% 0.8 0.8 0.9 1.0
Slide 15: Australia Office Market
Australia Office Market 94.9% 96.0% 95.2% 94.0% 97.0% 98.2% 91.8% 91.3% 87.5% 87.5% 100% 90.1% 92.1% 86.2% 84.8% 100% 1,200 1,045 1,200 90% 964 1,032 80% 80% Sydney CBD 900 799 930 915 60% Melbourne CBD 900 70% 60% 679 503 538 573 546 542 50% 600 40% 600 448 40% 406 30% Prime Grade occupancy 300 20%
Slide 16: Seoul Office Market
Seoul Office Market ▪ CBD Grade A occupancy increased to 87.2% in 1Q 2021 CBD Grade A Rent and Occupancy 200,000 90.9% 100% 87.7% 85.3% 86.9% 86.9% 87.2% 83.1% 160,000 80% 120,000 60% 95,381 95,169 97,572 98,508 91,845 92,325 91,656 80,000 40% 40,000 20% 0 0% 4Q15 4Q16 4Q17 4Q18 4Q19 4Q20 1Q21 CBD G
Slide 17: Committed to Delivering Stable Income & Sustainable Returns
Committed to Delivering Stable Income & Sustainable Returns Portfolio Optimisation • Portfolio optimisation to improve yield, while maintaining exposure to Singapore CBD Portfolio • Hold quality assets across different markets for improved income stability Optimisation and to provide more long-term
Slide 18: Additional Information
Additional Information One Raffles Quay, Singapore 18
Slide 19: Portfolio Information: Singapore
Portfolio Information: Singapore Keppel Bay Tower As at Marina Bay Ocean Financial Centre One Raffles Quay (Pending acquisition 31 Mar 2021 Financial Centre(4) completion) Attributable NLA 699,959 sf 1,023,412 sf 441,392 sf 386,600 sf Ownership 79.9% 33.3% 33.3% 100.0% BNP Paribas, DBS Bank, Deutsch
Slide 20: Portfolio Information: Australia & South Korea
Portfolio Information: Australia & South Korea As at 8 Exhibition Victoria Police David Malcolm 8 Chifley Square, Pinnacle Office 275 George T Tower, 31 Mar 2021 Street(3), Centre, Justice Centre, Sydney Park, Sydney Street, Brisbane Seoul Melbourne Melbourne Perth Attributable 104,055 sf 378,164 sf
Slide 21: Thank You
Thank You For more information, please visit: www.keppelreit.com Connect with us on: Victoria Police Centre, Melbourne 21