Kore Us REIT · SGX:CMOU
Kore Us REIT — Keppel Pacific Oak US REIT — FY2021 Earnings Presentation
31 slides from Kore Us REIT's earnings presentation, Jan 26, 2022
Slide 1: Second Half and Full Year 2021 Financial Results
Second Half and Full Year 2021 Financial Results 26 January 2022
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, Content Outline u
Slide 3: Key Highlights
Key Highlights Bridge Crossing Nashville, Tennessee
Slide 4: Key Highlights
Key Highlights Continued Growth Stable Robust in Operating Income Income Stream Financial Position FY 2021 Distributable Income (DI) Leases Signed Healthy US$62.4mil in FY 2021 Aggregate Leverage 6.5% YoY 14.3% Portfolio NLA 37.2% DI of US$32.5 million for 2H 2021 was 10.0% Leased 4.9% of total port
Slide 5: Financial Performance & Capital Management
Financial Performance & Capital Management Bellevue Technology Center Bellevue, Seattle, Washington
Slide 6: Financial Performance for 2H & FY 2021
Financial Performance for 2H & FY 2021 Distribution per Unit (US cents) 2H 2021 2H 2020 % FY 2021 FY 2020 % 6.34 6.23 US$’000 US$’000 Change US$’000 US$’000 Change Gross Revenue 72,874 69,090 5.5 141,257 139,590 1.2 Net Property Income 42,095 41,111 2.4 82,682 82,983 (0.4) (NPI) Adjusted NPI FY 2020
Slide 7: Strong Balance Sheet that Supports Growth Aspirations
Strong Balance Sheet that Supports Growth Aspirations As at 31 December 2021 US$’000 Total Assets 1,513,568 Investment Properties 1,455,830 Cash and Cash Equivalents 50,977 Other Assets 6,761 Total Liabilities 659,674 Gross Borrowings 563,420 Other Liabilities 96,254 Unitholders’ Funds 853,894 Units
Slide 8: Stable Financial Position and Healthy Aggregate Leverage
Stable Financial Position and Healthy Aggregate Leverage Prudent capital management with 100% unsecured loans that provide greater financial flexibility As at 31 December 2021 Debt Maturity Profile (as at 31 December 2021) Total Debt • US$563.4 million of external loans 21.9%(4) 22.2% 21.3% • 100% u
Slide 9: Portfolio Performance
Portfolio Performance 105 Edgeview Denver, Colorado
Slide 10: Key Growth Markets Driven By Tech And Innovation
SEATTLE – BELLEVUE/REDMOND, Washington ATLANTA, Georgia Key Growth Markets The Plaza Buildings Occupancy: 92.0% Bellevue Technology Center Occupancy: 95.7% The Westpark Portfolio Occupancy: 95.3% Powers Ferry Occupancy: 84.2% Northridge Center I & II Occupancy: 77.9% Driven By NASHVILLE, Tennessee T
Slide 11: Steady Income with Visible Organic Growth
Steady Income with Visible Organic Growth Lease Expiry Profile (as at 31 December 2021) ~730,619 sf in FY 2021 29.2% 28.5% Leased ~250,454 sf in 4Q 2021, bringing total leased spaces in FY 2021 to ~730,619 sf, equivalent NLA to 4.9% and 14.3% of portfolio NLA respectively. 17.2% 17.0% 15.7% 15.4% 13
Slide 12: Resilient Portfolio with Tech Focused Tenant Composition
Resilient Portfolio with Tech Focused Tenant Composition KORE’s buildings and business campuses in ~45% of KORE’s portfolio NLA comprises the tech hubs of Seattle – Bellevue/Redmond, of high-quality tenants from the growing and Austin and Denver contribute ~62% of NPI(1) defensive sectors of TAMI, m
Slide 13: Low Tenant Concentration Risk
As at 31 December 2021 Low Tenant Top 10 Tenants Sector Asset Location % of CRI Comdata Inc Technology Bridge Crossing Nashville 3.4 Concentration Ball Aerospace Technology Westmoor Center Denver 2.9 Seattle – Lear Cooperation Technology The Plaza Buildings 2.7 Risk Gogo Business Technology 105 Edge
Slide 14: Growing in Value
Growing in Value Increase in portfolio value driven mainly by properties in Seattle, Denver and Orlando As at 31 December 2021 As at 31 December 2020 Change Property % Change (US$ ‘million) (US$ ‘million) (US$ ‘million) The Plaza Buildings 339.0 312.0 27.0 8.7 Seattle, Bellevue CBD Bellevue Technolo
Slide 15: Commitment to ESG Excellence
Commitment to ESG Excellence Sustainability is at the core of our strategy and we are committed to delivering sustainable distributions to Unitholders Environmental Stewardship Responsible Business People & Community Achieve 30% greenhouse gas Uphold strong corporate governance, Maintain at least 30
Slide 16: Last 12 Months Rent Growth
Last 12 Months Rent Growth 0.1% Key Growth Markets Average 0.8% United States Average 0.1% Gateway Cities Average -0.9% US Average Seattle, Bellevue CBD 1.3% Seattle, Eastside Bellevue 1.8% Seattle, Redmond 1.6% Austin, Northwest 0.6% Denver, Northwest 0.4% Denver, Broomfield Nashville, Brentwood 0.
Slide 17: Projected 12-Month Rent Outlook
Projected 12-Month Rent Outlook KORE’s average in-place rents are 4.9% below asking rents, which will continue to drive organic growth Key Growth Markets Average United States Average 2.6% 3.1% 2.6% Gateway Cities Average 1.9% US Average Seattle, Bellevue CBD 1.6% Seattle, Eastside Bellevue 1.6% Sea
Slide 18: Actual Against Projected 12-Month Market Rent Growth
Actual Against Projected 12-Month Market Rent Growth Last 12 months rental growth* outperformed projections for majority of the portfolio 3.0% 2.4% 2.5% 2.0% 1.8% 1.6% 1.6% 1.6% 1.3% 1.4% 1.5% 0.8% 1.0% 0.6% 0.6% 1.2% 0.5% 0.5% -0.5% 0.1% -0.4% 0.0% 0.4% -0.5% -0.3% -1.0% -0.7% -0.9% -0.8% -0.8% -1.
Slide 19: First Choice Submarkets Outlook
First Choice Submarkets Outlook Property Submarket Last 12M Last 12M Under Last 12M Projected Submarket Vacancy Rate Vacancy Rate Deliveries Absorption Construction Rental Growth Rental Growth Property (%) (%) (sf’000) (sf’000) (sf’000) (%) (%) Seattle, Bellevue CBD 8.0 6.9 714 823 4,267(1)* 1.3 1.6
Slide 20: Market Outlook
Market Outlook Tenant lounge, 1800 West Loop South Houston, Texas
Slide 21: US Economic Progression
US Economic Progression Recovery apace notwithstanding the emergence of new COVID-19 variants that continue to emerge globally • US real GDP increased by 2.3% q-o-q in 3Q % GDP Growth % Labour Force Participation Rate 2021, reflecting the continued economic 40 66 impact of the COVID-19 pandemic (1).
Slide 22: Positive Economics in KORE's Key Growth Markets
Positive Economics in KORE’s Key Growth Markets KORE’s key growth markets continue to outperform national average Real GDP Growth Average(1) Third Quarter, 2021 Key Growth Markets Average 3.2% 2.3% United States Average 2.3% US Average Gateway Cities Average 2.7% Seattle 2.7% Austin 3.5% Denver 2.3%
Slide 23: Pandemic Migration Observed Across The US
Pandemic Migration Observed Across The US Popularity of suburban states soar as the pandemic fueled widespread movement % Change in Resident Top 20 Fastest Growing States in the US(5) Sunbelt markets seeing better than average Population in 2021 real estate market performance. 1 Utah 19.3 2 Idaho 18
Slide 24: Top Inbound vs Top Outbound US States
Top 10 Inbound vs Top 10 Outbound US States KORE’s key growth markets continue to experience inbound growth Net Domestic Migration, 1 April 2020 to 1 July 2021 Florida Texas Arizona North Carolina South Carolina Tennessee INBOUND STATES Georgia Idaho Utah Nevada Michigan Minnesota Hawaii Maryland Ne
Slide 25: Technology Sector Continues to Lead in Leasing
Technology Sector Continues to Lead in Leasing KORE has the presence and experience in the highly resilient tech-sector Others 13% • Tech leasing activity continues to outperform other sectors. Media/ Technology Telecomm 18% − Increased ~122% from the first quarter(1) . 5% − Displays a large spectru
Slide 26: First choice US office S-REIT 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 S-REIT focused on the fast-growing Highly diversified portfolio with low tenant concentration risk. tech sector across key growth
Slide 27: Thank You
Thank You For more information, please visit www.koreusreit.com Connect with us on: The Plaza Building Seattle – Bellevue/Redmond
Slide 28: Additional Information
Additional Information Iron Point Sacramento, California
Slide 29: KORE's Presence In Magnet Cities
KORE’s 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 Austin, Texas ❖ Westech 360 #2 #1 ❖ Grea
Slide 30: Trust Structure
Trust Sponsors(1) Keppel Unitholders Structure KPA Keppel Capital International Capital Keppel Management Agreement Trustee Management Services Fees Keppel Pacific Oak US REIT ✓ Tax-efficient structure for holding Trustee Trustee Management Management (Manager) US properties Fees Services • No US co
Slide 31: 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
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