Keppel REIT · SGX:K71U
Keppel REIT — Q1 2012 Earnings Presentation
32 slides from Keppel REIT's earnings presentation, Apr 16, 2012
Slide 1: First Quarter Results Announcement
First Quarter Results Announcement 16 April 2012
Slide 2: Important Notice
Important Notice The past performance of K-REIT Asia 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 assumptio
Slide 3: Contents
Contents 1Q 2012 Highlights Financial Performance Capital Management Portfolio Analysis Market Review and Outlook Going Forward Additional Information 3 Definitively Keppel
Slide 4: 1Q 2012 Highlights
1Q 2012 Highlights 4 Definitively Keppel
Slide 5: 1Q 2012 Highlights
1Q 2012 Highlights Distribution per unit 97.9% y-o-y to 1.90 cents Distributable income 100.2% y-o-y to $48.5 million Net property income 90.8% y-o-y to $28.5 million Share of results of associates 82.6% y-o-y to $11.2 million All-in interest rate to 2.03% for 1Q 2012 from 2.35% for 4Q 201
Slide 6: Update on Ocean Financial Centre
Update on Ocean Financial Centre Successfully converted interest in Ocean Financial Centre (OFC) into a Limited Liability Partnership (LLP) Unitholders benefit from tax transparent property income Steadily increased committed occupancy to 91% Leased an additional 98,000sf Committed Occupancy 6% 90.6
Slide 7: Key Financial Indicators
Key Financial Indicators 1Q 2012 1Q 2011 Change Property Income $36.6m $18.7m 96.0% Net Property Income $28.5m $14.9m 90.8% Share of Results of Associates $11.2m $6.2m 82.6% Distributable Income to $48.5m $24.3m 100.2% Unitholders(1) Distribution Per Unit (DPU) 1.90 cents 0.96 cents(2) 97.9% Annuali
Slide 8: Quarterly Distribution Payment
Quarterly Distribution Payment Quarterly DPU distribution will take effect from 3Q 2012 More frequent income distributions to Unitholders Quarterly distributions will improve returns to investors taking into account the time value of money In line with objective to deliver stable and sustainable ret
Slide 9: Financial Performance
Financial Performance 9 Definitively Keppel
Slide 10: 1Q 2012 Distributable Income doubled y-o-y to $48.5m
1Q 2012 Distributable Income doubled y-o-y to $48.5m 1Q 2012 1Q 2011 Change Property Income $36.6m $18.7m $17.9m 96.0% Net Property Income $28.5m $14.9m $13.6m 90.8% Share of Results of Associates $11.2m $6.2m $5.1m 82.6% Distributable Income to Unitholders(1) $48.5m $24.3m $24.3m 100.2% $48.5m $36.
Slide 11: 1Q 2012 DPU up 97.9% y-o-y to 1.90 cents
1Q 2012 DPU 97.9% y-o-y to 1.90 cents 1Q 2012 1Q 2011 Change Distribution Per Unit (DPU) - For the Period 1.90 cents 0.96 cents(1) 0.94 cents 97.9% - Annualised 7.64 cents 3.89 cents(1) 3.75 cents 96.4% Distribution Yield 7.9%(2) 3.0%(3) 4.9% 163.3% 7.64 cents 7.9% 3.89 cents 1Q 2011 1Q 2011 1Q 201
Slide 12: 1Q 2012 Distributable Income up 35.9% q-o-q
1Q 2012 Distributable Income 35.9% q-o-q 1Q 2012 4Q 2011 Change Property Income $36.6m $22.6m $14.0m 61.8% Net Property Income $28.5m $17.8m $10.8m 60.6% Share of Results of Associates $11.2m $12.0m -$0.8m -6.2% Distributable Income to Unitholders(1) $48.5m $35.7m $12.8m 35.9% $48.5m $36.6m $35.7m
Slide 13: 1Q 2012 DPU up 35.7% q-o-q
1Q 2012 DPU 35.7% q-o-q 1Q 2012 4Q 2011 Change Distribution Per Unit (DPU) - For the Period 1.90 cents 1.40 cents(1) 0.50 cents 35.7% - Annualised 7.64 cents 5.55 cents 2.09 cents 37.7% Distribution Yield 7.9%(2) 6.7%(3) 1.2% 17.9% 7.64 cents 7.9% 5.55 cents 6.7% 4Q 2011 1Q 2012 4Q 2011 1Q 2012 1.
Slide 14: Capital Management
Capital Management 14 Definitively Keppel
Slide 15: Healthy Financial Position
Healthy Financial Position As at 31 Mar 2012 As at 31 Dec 2011 Gross Borrowings(1) $2,523 m(4) $2,495 m(4) Aggregate Leverage 41.8% 41.6% Average All-in Interest Rate(2) 2.03% 2.35% Interest Coverage Ratio(3) 5.5 times 5.5 times Weighted Average Term to Expiry 2.9 years 3.1 years (1) Includes borrow
Slide 16: Balanced Debt Maturity Profile
Balanced Debt Maturity Profile Well-staggered debt expiry profile with average 2.9 years(1) term to expiry All-in interest cost of 2.03% achieved in 1Q 2012 Borrowings diversified across 12 lenders $' mn Debt Maturity Profile When the $535 million loans due for refinancing on $1,000 31 December 2012
Slide 17: Portfolio Analysis
Portfolio Analysis 17 Definitively Keppel
Slide 18: Portfolio Occupancy Rate
Portfolio Occupancy Rate Healthy portfolio occupancy of 96.1% Singapore property portfolio occupancy of 96.3% is higher than core CBD occupancy of 90.7% 100% 100% 100% 98.1%(3) 98.7% 96.1% 90.6%(2) Singapore core CBD occupancy at 90.7%(1) 88.0% Bugis Junction One Raffles Prudential MBFC Phase 1 Ocea
Slide 19: Portfolio Lease Profile
Portfolio Lease Profile Well-balanced lease renewal and rent review profile Only 1.9% of portfolio NLA due for rent review and renewal for the rest of 2012 Portfolio Lease Profile (by NLA) 15.7% 10.0% 9.8% 8.9% 8.9% 7.4% 5.6% 4.3% 1.6% 0.3% 2012 2013 2014 2015 2016 Leases Expiring as a Percentage of
Slide 20: Stable Lease Portfolio
Stable Lease Portfolio Income stability supported by long portfolio WALE of 6.4 years Weighted Average Lease Expiry (WALE) Top Ten Tenants WALE 7.9 Years Portfolio WALE 6.4 Years (1) Portfolio with Long-Term Leases by NLA Short-Term Leases 47% Long-Term Leases 53% (1) Long-term leases are those with
Slide 21: Tenants diversified across various business sectors
Tenants diversified across various business sectors Retail (Exclude F&B and Telecommunications services) Accounting & & multi-media 1.0% consultancy services 8.0% 1.8% Legal 6.8% F&B 1.1% 208(1) tenants from Energy & natural a diversified range of resources 9.3% business sectors Shipping & marine se
Slide 22: Blue-Chip Tenant Base
Blue-Chip Tenant Base Top ten tenants account for 44.4% of portfolio NLA Top Ten Tenants Australia and New Zealand Banking Group 7.2% Standard Chartered Bank 6.9% Telstra Corporation 6.1% Barclays Capital Service 4.6% Deutsche Bank Aktiengesellschaft 3.7% BNP Paribas 3.4% Drew & Napier 3.3% Ocean Fi
Slide 23: Staying Competitive
Staying Competitive Enhancement works at Bugis Junction Towers will complete in 1Q2013 Before After 23 Definitively Keppel
Slide 24: Staying Competitive
Staying Competitive Enhancement works at Prudential Tower will complete in 4Q2012 Before After 24 Definitively Keppel
Slide 25: Market Review and Outlook
Market Review and Outlook 25 Definitively Keppel
Slide 26: Singapore Office Market Core CBD Occupancy
Singapore Office Market Average Grade A office rental slips to $10.60psf per month due to new supply $15 95.2% 95.3% 100.0% 93.1% 93.3% 94.4% 93.1% 91.5% 91.2% 91.2% 91.9% 92.3% 91.2% 90.7% $12.30 $11.06 $11.00 80.0% $10.15 $10.30 $10.60 $10.60 $9.90 Average Rentals ($ psf pm) $10 $9.00 $8.80 Core C
Slide 27: Economic and Office Markets Outlook
Economic and Office Markets Outlook Singapore Economy remains on track to achieve growth of between 1% and 3% in 2012 Positive leasing activity continues at new premium Grade A office buildings Occupiers maintain flight-to-quality in relocating to newer and better specified buildings Australia Occup
Slide 28: Going Forward
Going Forward 28 Definitively Keppel
Slide 29: Strategic Direction
Strategic Direction Enhancing Assets Improving buildings' performance and efficiency Maintaining a balanced tenancy profile Attracting quality and creditworthy tenants Reinforcing relationships to retain good tenants Executing prudent lease strategies Maximising Performance Strengthening property ma
Slide 30: Additional Information
Additional Information 30 Definitively Keppel
Slide 31: Portfolio Information
Portfolio Information Singapore Portfolio Australia Portfolio Ocean Prudential 275 George 8 Chifley Bugis Junction MBFC Financial One Raffles 77 King Street Tower Street Square Towers Interest (2) Centre Quay Interest Property Interest Property Property Interest (5) Attributable 244,978 581,653 776,
Slide 32: Thank you
Thank you Fax: 6835 7747 http://www.kreitasia.com For enquiries, please contact Ms Casiopia Low Investor Relations & Research Tel: 6433 7622 Email: casiopia.low@kreitasia.com 32 Definitively Keppel