Keppel Reit · SGX:K71U
Keppel Reit — Q1 2022 Earnings Presentation
22 slides from Keppel Reit's earnings presentation, Apr 20, 2022
Slide 1: 1Q 2022 Key Business and Operational Updates
1Q 2022 Key Business and Operational Updates 20 April 2022
Slide 2: Outline
Outline Constituent of: ▪ 1Q 2022 Key Highlights 3 ▪ Financial & Portfolio Highlights 4 FTSE ST Large & Mid Cap Index ▪ Market Review 14 ▪ Additional Information 19 FTSE EPRA Nareit Global Developed Index IMPORTANT NOTICE: The past performance of Keppel REIT is not necessarily indicative of its futu
Slide 3: 1Q 2022 Key Highlights
1Q 2022 Key Highlights Pan-Asian Portfolio with Income Resilience $53.8m 95.1% Anchored in key business districts of 1Q 2022 distributable income Portfolio committed occupancy Singapore, Australia and South Korea from operations(1) as at 31 Mar 2022 Up 4.3% y-o-y Singapore, 78.3% 38.7% 6.1 years Agg
Slide 4: Financial & Portfolio Highlights
Financial & Portfolio Highlights Pinnacle Office Park, Sydney 4
Slide 5: Higher Distributable Income from Operations
Higher Distributable Income from Operations ▪ Distributable income of $53.8 million, a 4.3% year-on-year growth due mainly to the acquisition of Keppel Bay Tower in May 2021 ▪ The increase was partially offset by the impact of the divestment of 275 George Street in July 2021 Distributable Income 1Q
Slide 6: Prudent Capital Management
Prudent Capital Management As at 31 Mar 2022 Adjusted NAV per Unit(2) $1.29 ▪ All-in interest rate reduced year-on-year to 1.81% Interest Coverage Ratio(3) 3.8x p.a. from 2.01% p.a. All-in Interest Rate 1.81% p.a. ▪ Total borrowings on fixed rates increased from Aggregate Leverage 38.7% 63% to 71% d
Slide 7: Diversified Pan-Asian Portfolio of Prime Commercial Assets
Diversified Pan-Asian Portfolio of Prime Commercial Assets $8.9b portfolio of prime quality assets anchored across different markets enhance income stability and long-term growth opportunities As at 31 Mar 2022: T Tower, Seoul 8 Chifley Square, 99.4% Interest Occupancy: 100% 95.1% South Korea Pinnac
Slide 8: Robust 1Q 2022 Portfolio Performance
Robust 1Q 2022 Portfolio Performance Leases Committed Leases Committed Total Leases Committed by Geography(1) by Type(1) ~475,000 sf Renewal, (Attributable ~222,500 sf) Singapore, 80.7% 99.0% Retention Rate 91% Australia, 1.0% New, 19.3% New leasing demand and expansions from: ▪ Rental collection re
Slide 9: Well-spread Lease Expiry Profile
Well-spread Lease Expiry Profile ▪ Average signing rent for Singapore office leases(1) concluded in 1Q 2022 was $11.15 psf pm ▪ Average expiring rents of Singapore office leases(2)(psf pm): $10.10 in 2022, $10.84 in 2023 and $10.72 in 2024 Lease Expiries and Rent Reviews(3) Expiring Leases Rent Revi
Slide 10: Established and Diversified Tenant Base
Established and Diversified Tenant Base ▪ Keppel REIT has a diversified tenant ▪ Top 10 tenants take up 41.6% of NLA base of 383(1) tenants, many of which are and contribute 36.8% of gross rent established blue-chip corporations Top 10 Tenants Tenant Business Sector % State of Victoria 10.2% Banking
Slide 11: Sustainable Portfolio with ESG Excellence
ESG Benchmarks Sustainable Portfolio ▪ MSCI ESG – ‘A’ Rating ▪ ISS ESG Corporate Rating – Prime status with ESG Excellence ▪ Global Real Estate Sustainability Benchmark (GRESB) – Green Star status; ‘A’ rating for Public Disclosure Supporting climate action and the transition ESG Indices to a low-car
Slide 12: ESG Targets
ESG Targets Environmental Stewardship Responsible Business People and Community ▪ Halve Scope 1 and 2 emissions by 2030 ▪ Uphold high standards of corporate ▪ Provide a safe and healthy workplace from 2019 levels governance and risk management ▪ Invest in developing and training its people ▪ Reduce
Slide 13: Meeting Diverse Tenant Needs
Meeting Diverse Tenant Needs Robust portfolio of Grade A office properties that caters to tenants’ diverse business needs Quality Workplaces with Fitted/Flexible Strong ESG Focus Solutions Grade A office buildings that are well managed with Providing greater tenant flexibility sustainable and techno
Slide 14: Market Review
Market Review Marina Bay Financial Centre, Singapore 14
Slide 15: Singapore Office Market
Singapore Office Market ▪ Average core CBD Grade A office rents increased to $10.95 psf pm in 1Q 2022 and average occupancy in core CBD increased to 93.8% Grade A Rent and Core CBD Occupancy Demand and Supply 2.1 1.9 1.7 1.3 95.8% 94.8% 95.8% 0.8 0.8 0.9 0.8 $15 93.8% 93.8% 93.3% 93.8% 100% 0.4 0.7
Slide 16: Australia Office Market
Australia Office Market 94.9% 96.0% 95.2% 91.3% 87.5% 88.6% 88.4% 100% 90.8% 92.1% 90.4% 89.9% 100% 75.5% 79.9% 82.7% 1,200 1,032 1,045 1200 964 80% 80% Sydney CBD 900 799 930 885 891 60% North Sydney 900 729 60% 641 676 688 651 662 580 600 40% 600 40% Prime Grade occupancy 300 20% Prime Grade occup
Slide 17: Seoul Office Market
Seoul Office Market ▪ CBD Grade A occupancy increased to 91.2% in 1Q 2022 CBD Grade A Rent and Occupancy 200,000 91.2% 100% 90.7% 89.2% 85.0% 86.6% 86.7% 82.7% 160,000 80% 120,000 60% 97,572 98,926 101,276 95,169 91,845 92,325 91,656 80,000 40% 40,000 20% 0 0% 4Q16 4Q17 4Q18 4Q19 4Q20 4Q21 1Q22 CBD
Slide 18: Committed to Delivering Stable Income & Sustainable Returns
Committed to Delivering Stable Income & Sustainable Returns Portfolio Optimisation • Portfolio optimisation to improve yield, anchored by prime CBD assets in Singapore Portfolio • Hold quality assets across different markets for improved income stability Optimisation and to provide more long-term gr
Slide 19: Additional Information
Additional Information Keppel Bay Tower, Singapore 19
Slide 20: Portfolio Information: Singapore
Portfolio Information: Singapore As at Marina Bay Ocean Financial Centre One Raffles Quay Keppel Bay Tower 31 Mar 2022 Financial Centre(4) Attributable NLA 698,312 sf 1,022,508 sf 441,102 sf 386,223 sf Ownership 79.9% 33.3% 33.3% 100.0% BNP Paribas, DBS Bank, Deutsche Bank, Keppel Group, Principal D
Slide 21: Portfolio Information: Australia & South Korea
Portfolio Information: Australia & South Korea Blue & William(3), As at 8 Exhibition Victoria Police David Malcolm 8 Chifley Square, Pinnacle Office Sydney T Tower, 31 Mar 2022 Street(4), Centre, Justice Centre, Sydney Park, Sydney (Under Seoul Melbourne Melbourne Perth Development) Attributable 104
Slide 22: Thank You
Thank You For more information, please visit: www.keppelreit.com Connect with us on: Victoria Police Centre, Melbourne 22