Slide 1: Third Quarter & Nine Months 2015 Financial Results
Third Quarter & Nine Months 2015 Financial Results 15 October 2015
Slide 2: Important Notice
Important Notice DBS Bank Ltd. and Standard Chartered Securities (Singapore) Pte. Limited are the Joint Financial Advisers and Issue Managers to the initial public offering of Keppel DC REIT (the “Offering”). DBS Bank Ltd., Standard Chartered Securities (Singapore) Pte. Limited and Credit Suisse (Si
Slide 3: Content
Content Key Highlights Financial Review Portfolio Performance Capital Management Outlook 2
Slide 4: Key Highlights
Key Highlights
Slide 5: Key Highlights
Key Highlights YTD1: o Net property income outperformed IPO forecast2 by 1.7% o Distributable income was 1.8% higher than IPO forecast2 o Annualised distribution yield3 was 12bps above IPO forecast2 3Q 2015: o Net property income was marginally lower than IPO forecast2, due to higher property ta
Slide 6: Financial Review
Financial Review
Slide 7: YTD Distributable Income
YTD1 Distributable Income YTD Actual1 Forecast2 Variance (S$’000) (S$’000) (%) Distributable Income to Unitholders3 45,912 45,114 +1.8 Distribution Per Unit3 (cents) 5.20 5.11 +1.8 Annualised Distribution Yield4 6.96% 6.84% +12bps Comprising: Gross Revenue 82,920 80,558 +2.9 Property Expenses (13,46
Slide 8: 3Q 2015 Distributable Income
3Q 2015 Distributable Income 3Q Actual1 Forecast2 Variance (S$’000) (S$’000) (%) Distributable Income to Unitholders3 14,480 14,165 +2.2 Comprising: Gross Revenue 25,743 25,295 +1.8 Property Expenses (4,370) (3,853) +13.4 Net Property Income 21,373 21,442 (0.3) Notes: (1) For the financial period of
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights As at 30 Sept 2015 (S$’000) Investment Properties1 1,050,546 Total Assets1 1,139,399 Gross Borrowings 331,196 Total Liabilities 382,506 Unitholders’ Funds 756,480 Units in Issue (‘000) 882,930 Net Asset Value (“NAV”) per Unit (S$) 0.857 Unit Price (as at 30 September 2015) (
Slide 10: Aggregate Leverage
Aggregate Leverage As at 30 Sept 2015 (S$’000) Investment Properties1 1,019,730 (excluding finance lease liabilities commitments) Total Assets1 1,108,853 (excluding finance lease liabilities commitments) Gross Borrowings2 334,227 Total Borrowings3 362,012 Aggregate Leverage 30.1%4 Notes: (1) Investm
Slide 11: Portfolio Performance
Portfolio Performance
Slide 12: Portfolio Expansion
Portfolio Expansion Maiden acquisition completed successfully on 10 August 2015 Sale and leaseback transaction with Macquarie Telecom for the shell and core building of Intellicentre 2 in Sydney enhances long-term stability of the REIT’s income stream Portfolio WALE: extended to approx. 8.9 ye
Slide 13: Geographical Network
Geographical Network Ireland Current AUM Citadel 100 Data Centre, Dublin United Kingdom ~S$1.05b comprising 9 data centres GV7 Data Centre, London Netherlands Almere Data Centre, Almere Total Lettable Area Almere Data Centre 2, Almere [ROFR asset] Citadel 100 GV7 Almere ~597,900 sq ft European acros
Slide 14: Strong & Diverse Tenant Pool
Strong & Diverse Tenant Pool Assets located in key data centre hubs across Asia Pacific and Europe Well-diversified and credit-worthy tenant base Breakdown of portfolio1 Breakdown of rental income2 by geography by tenant’s trade sector Ireland, 9.2% Corporate, IT services, Netherlands, 4.4% 39.4
Slide 15: Proactive Leasing Strategy
Proactive Leasing Strategy Leases signed in No. of Area Maintained healthy portfolio 3Q 2015 leases (sq ft) occupancy of 95.1%, with seven of Renewal leases 2 2,775 nine assets at full occupancy Expansion leases 2 2,440 Long portfolio WALE of 8.9 years New leases 4 93,221 Portfolio occupancy rat
Slide 16: Favourable Lease Profile
Favourable Lease Profile A balanced portfolio comprising stable long-term Rental income1 breakdown by lease type3 leases and co-location assets with diversified tenant profile Co-location, Co-location Fully-fitted Shell & core 69.2% Fully-fitted, 25.1% WALE2 2.6 years 9.9 years 16.0 years Rental R
Slide 17: Capital Management
Capital Management
Slide 18: Disciplined Capital Management
Disciplined Capital Management Proactive hedging policies to mitigate interest rate and foreign currency risks: Fixed 100% of interest rate exposure for long-term loans Hedged 100% of forecasted foreign-sourced distribution up to 1H 2017 Use of natural hedging to manage foreign currency risks
Slide 19: Disciplined Capital Management
Disciplined Capital Management Hedging of borrowing costs Approximately S$331m of external loans As at 30 September 2015 Total debt S$40m of undrawn revolving credit facility Hedged 90% Aggregate 30.1% Leverage1 Un- hedged 10% Average cost 2.5% per annum for the financial period Debt maturit
Slide 20: Outlook
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Slide 21: Fundamentals Remain Sound
Fundamentals Remain Sound Demand for data centres remains stable, fueled by growth in data storage needs Social Media Users2 2.2 billion Penetration: 30% Y-o-Y growth: 23% Total Population1 7.4 billion Internet Users2 Urbanisation: 53% Mobile Users2 3.2 billion Penetration: 43% 3.7 billion Y-o-Y g
Slide 22: Strategically Positioned to Tap Growth
Strategically Positioned to Tap Growth Large and growing base of Internet users in the REIT’s key investment regions Increasing outsourcing of data centre requirements Internet users in the world1 Global co-location annualised revenue2 US$36.1b Middle East Australia 3.5% 0.8% Africa 9.6% US$22.8
Slide 23: Committed to Deliver Value
Committed to Deliver Value Active capital management High growth industry with Established significant track record barriers to entry Strategic location in key data centre hubs Strong global clientele To provide Unitholders with regular and stable distributions, and to achieve long-term growth in DP
Slide 24: Additional Information
Additional Information
Slide 25: Keppel DC REIT Structure
Keppel DC REIT Structure Institutional and Public Keppel T&T Keppel Land Investors and Basis Bay 100% Vendor 30.1% 4.9% 65.0% Management Acts on behalf services of Unitholders REIT Manager Trustee Management Keppel DC REIT Trustee fees fees Keppel DC REIT The Trust Company (Asia) Management Pte. Ltd
Slide 26: Portfolio Overview (as of 30 September 2015)
Portfolio Overview (as of 30 September 2015) Lettable area No. of Occupancy Carrying value(6) WALE Property Location Interest Lease type Land lease title (sq ft) customers(1) rate (%) (S$m) (years) Leasehold Keppel lease / 3.12) (Expiring 30 September S25 Singapore 100% 109,574 20(2) 85.7 253.9 Co-l
Slide 27: Overview of Lease Arrangements
Overview of Lease Arrangements Responsibilities of Lessor / Owner Management Maintenance Maintenance Day-to-day Lease Insurance Asset Description Property Facilities Building Arrangement Refresh Capex Opex Tax Keppel lease(1) / Lessee: Pays cost of rent and all expenses recharged to Lessor S25
Slide 28: Thank you.
Thank you. KG y-y-1) DC REIT 27