Kore Us Reit · SGX:CMOU
Kore Us Reit — Keppel Pacific Oak US REIT — CGS-CIMB Webinar (August 2021)
27 slides from Kore Us Reit's conference presentation, Aug 20, 2021
Slide 1: Keppel Pacific Oak US REIT Presentation for CGS-CIMB Webinar
Keppel Pacific Oak US REIT Presentation for CGS-CIMB Webinar 20 August 2021
Slide 2: Important Notice
Important Notice The past performance of Keppel Pacific Oak US REIT is not necessarily indicative of its future performance. Certain statements made in this release may not be based on historical information or facts and may be “forward-looking” statements due to a number of risks, uncertainties and
Slide 3: Overview
Overview 105 Edgeview Denver, Colorado
Slide 4: Keppel Pacific Oak US REIT (KORE)
Keppel Pacific Oak US REIT Sponsors • Keppel Capital and KORE Pacific Advisors (“KPA”) (KORE) US Asset • Pacific Oak Capital Advisors LLC, also advisor Manager for Pacific Oak Strategic Opportunity REIT First choice US office SREIT focused Manager • Keppel Pacific Oak US REIT Management Pte. Ltd. on
Slide 5: Successful Execution of Growth Strategy
Successful Execution of Growth Strategy Jul 2021 9 Nov 2017: Listed on SGX Jan 2019 Announced the strategic IPO with 11 office buildings Strengthened foothold in the acquisitions of Bridge Crossing and business campuses across strong Maitland submarket in Nashville, Tennessee, and 7 key growth marke
Slide 6: Deepening Tech Footprint in Nashville and Denver
Deepening Tech Footprint in Nashville and Denver Expanding KORE’s portfolio in key growth markets in the US Overview Bridge Crossing 105 Edgeview Key Growth Market Nashville, Tennessee Denver, Colorado Submarket Brentwood Broomfield Land Tenure Freehold Freehold Bridge Crossing, Nashville, Tennessee
Slide 7: Deepening Tech Footprint in Nashville and Denver: Key Investment Highlights
Deepening Tech Footprint in Nashville and Denver Key Investment Highlights Deepens presence in key growth markets driven 1 by tech and innovation, which will enhance income resilience Prime locations in key submarkets with limited 2 upcoming supply Bridge Crossing, Nashville, Tennessee DPU-accretive
Slide 8: Key Growth Markets Driven By Tech and Innovation
SEATTLE – BELLEVUE/REDMOND, Washington ATLANTA, Georgia Key Growth Powers Ferry Northridge Center I & II Markets The Plaza Bellevue The Westpark (1) Buildings Technology Center Portfolio Occupancy: 80.1% Occupancy: 78.4% Occupancy: 91.1% Occupancy: 96.1% Occupancy: 95.2% NASHVILLE, Tennessee Driven
Slide 9: Strengthening Presence In Magnet Cities
Strengthening Presence In Magnet Cities Popular in-migration destinations due to attractive lifestyle, culture and employment opportunities Seattle, Washington SEATTLE ❖ The Plaza Buildings ❖ Bellevue Technology Center ❖ The Westpark Portfolio #6 Seattle Sacramento, California ❖ Iron Point
Slide 10: Strategic Presence in some of the Fastest Growing States
Strategic Presence in some of the Fastest Growing States % Change in Resident Top 20 Fastest Growing States in the US from 2010-2020(1) Population 1 Utah 18.4 2 Idaho 17.3 3 Texas* 15.9 4 North Dakota 15.8 5 Nevada 15.0 6 Colorado* 14.8 7 District of Columbia 14.6 8 Florida* 14.6 9 Washington* 14.6
Slide 11: 1H 2021 Key Highlights
1H 2021 Key Highlights Tenant lounge The Westpark Portfolio Redmond, Seattle, Washington
Slide 12: 1H 2021 Key Highlights
1H 2021 Key Highlights Continued Growth Stable Robust in Operating Income Income Stream Financial Position Distributable Income Positive Healthy US$29.9 mil Rental Reversion Aggregate Leverage 2.8% YoY 5.4% 37.1%(2) DI of US$29.9 million for 1H 2021 was 2.8% Continued positive rental reversions for
Slide 13: Stable Income with Visible Organic Growth
Stable Income with Visible Organic Growth ~302,000 sf Lease Expiry Profile (as at 30 June 2021) Leased spaces, equivalent 31.5% 31.7% to 6.4% of portfolio NLA. NLA 5.4% 14.2%13.6% 18.1% 17.6% 14.3% 15.8% 15.1% CRI 12.4% Positive rent reversion for 8.0% 7.7% 1H 2021. Average rent collection was ~98%
Slide 14: Tech Focused Tenant Composition and Industry Exposure
Tech Focused Tenant Composition and Industry Exposure KORE’s buildings and business campuses in ~36% of KORE’s portfolio NLA is comprised the tech hubs of Seattle – Bellevue/Redmond, of high-quality tenants from the growing and Austin and Denver contribute ~61% of NPI(1) defensive sectors of technol
Slide 15: Low Tenant Concentration Risk
As at 30 June 2021 Low Tenant Top 10 Tenants Sector Asset Location % of CRI Ball Aerospace Technology Westmoor Center Denver 3.0 Concentration Lear Technology The Plaza Buildings, Seattle – Bellevue/Redmond 2.8 Seattle – Risk Oculus VR Technology The Westpark Portfolio Bellevue/Redmond 2.4 Zimmer Bi
Slide 16: US Office Market Overview
US Office Market Overview Tenant lounge, 1800 West Loop South Houston, Texas
Slide 17: US Economy: Recovery Apace
US Economy: Recovery Apace Continued resumption of economic activity in 2021 • US Real GDP increased 6.5% q-o-q in % GDP Growth % Labour Force Participation Rate 2Q 2021 reflecting the continued 40 66 economic recovery, reopening of establishments, and continued 30 65 government response related to
Slide 18: CEOs and Employees want to Return to Offices
CEOs and Employees want to Return to Offices Progress in vaccinations and the removal of COVID-19 restrictions are raising confidence and optimism Top 10 US Cities: Employee Office Visits People Vaccinated in the US (as at 4 August 2021)(2) (% of total Population)(3) Houston 49.3% Dallas 47.9% At Le
Slide 19: Tech Continues to Lead in Office Leasing
Tech Continues to Lead in Office Leasing KORE’s focus on the historically fast-expanding tech sector will benefit the REIT 100 Largest U.S. Office Leases by Tech Firms in 2020(1) Markets with Most Square Footage Leased • The tech sector leased ~26m sf of office space in 2020, accounting for 17% of t
Slide 20: Corporate Relocations Reshaping Market Trends
Corporate Relocations Reshaping Market Trends Growing popularity of Super-Sun Belt Cities and 18-Hour Cities such as Texas for tax advantages and deep talent pool, is reshaping office market outlook • Hewlett Packard Enterprise is moving its HQ from Silicon Valley, California to Houston, Texas • Ora
Slide 21: First choice US office SREIT focused on the fast-growing tech sector
Strategic presence in some of the fastest growing states in the US. First choice Exposure to the fast-growing tech sector provides income resilience and growth. US office SREIT focused on the fast-growing Highly diversified portfolio with low tenant concentration risk. tech sector across key growth
Slide 22: Additional Information
Additional Information Westech 360 Austin, Texas
Slide 23: Financial Performance for 1H 2021
Financial Performance for 1H 2021 1H 2021 1H 2020 % Change (US$’000) (US$’000) Gross Revenue 68,383 70,500 (3.0) Net Property Income 40,587 41,872 (3.1) Adjusted NPI (excludes non-cash straight-line rent, 40,868 40,231 1.6 lease incentives and amortisation of leasing commissions) Income Available 29
Slide 24: Robust Financial Position and Healthy Aggregate Leverage
Robust Financial Position and Healthy Aggregate Leverage Healthy aggregate leverage and 100% unsecured loans provide greater financial flexibility As at 30 June 2021 Debt Maturity Profile Total Debt • US$505.7m of external loans 100% of Loans Unsecured • 100% unsecured 28.6% 24.7% 22.8% Available Fa
Slide 25: Trust Structure
Trust Structure ✓ Tax-efficient structure for holding US properties • No US corporate tax (21%) and US withholding tax (30%) • No Singapore corporate tax (17%) and Singapore withholding tax (10%) • Subject to limited tax ✓ Leverage Sponsors' expertise and resources to optimise returns for Unitholder
Slide 26: Strong Sponsors: Keppel Capital and KORE Pacific Advisors
Strong Sponsors: Keppel Capital and KORE Pacific Advisors (2) • Asset management arm of Keppel Corporation • Established commercial real estate investment and a premier manager in Asia manager in the US • US$28 billion(1) • US$4.0 billion Global assets under management as at end-2020 Assets under ma
Slide 27: Thank You
Thank You OUR SUSTAINABILITY COMMITMENT We place sustainability at the heart of our strategy and are committed to For more information, delivering sustainable distributions and strong total returns for Unitholders. please visit www.koreusreit.com ENVIRONMENTAL STEWARDSHIP Connect with us on: In line
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