Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — FY2024 Earnings Presentation
28 slides from Keppel Dc Reit's earnings presentation, Jan 24, 2025
Slide 1: Second Half and Full Year 2024 Financial Results
Second Half and Full Year 2024 Financial Results 24 Jan 2025
Slide 2: Outline
Outline 1. Key Highlights 4. Capital Management 2. Financial Updates 5. Outlook 3. Portfolio Updates 6. Additional Information Constituent of: Awards and Certifications: FTSE EPRA Nareit Global MSCI Singapore GPR 250 Developed Index Small Cap Index Index Series 1 2 Image.png 1. The use by Keppel DC
Slide 3: Key Highlights
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Slide 4: Key Highlights
Key Highlights Robust Value Creation through Dynamic Financials Portfolio Management Capital Management • 2H 2024 DPU1: 4.902 cents, a • Portfolio occupancy: 97.2% • Strong balance sheet and 13.2% increase year-on-year agile financial strategies to • Portfolio WALE3: 6.3 years by lettable area suppo
Slide 5: Financial Updates
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Slide 6: Robust Financial Performance
Robust Financial Performance 2H 2024 vs 2H 2023 Distributable Income ($’000)1 Distribution Per Unit (cents)2 • Higher DI and DPU underpinned by strong reversions for multiple 172,733 9.383 9.451 major Singapore contract renewals in 2H 2024 as part of the Keppel 167,718 Leases • Higher gross revenue
Slide 7: Distribution Details
Distribution Details Distribution For the period from 1 Jul to 27 Nov 2024 28 Nov to 31 Dec 2024 DPU1 4.083 cents 0.819 cents Ex-distribution Date 26 Nov 2024 4 Feb 2025 Record Date 27 Nov 2024 5 Feb 2025 Payment Date 10 Feb 2025 17 Mar 2025 1. Computed based on the distributable income to Unitholde
Slide 8: Portfolio Updates
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Slide 9: Healthy Portfolio Performance
Healthy Portfolio Performance as at 31 Dec 2024 High Portfolio Occupancy Strong portfolio reversion4 of ~39% for FY 2024 97.2% • Continued reversions of >30% in 4Q 2024 1 • Optimise portfolio performance by leveraging positive market trends to drive strong reversions and ensuring prudent cost manage
Slide 10: Staggered Contract Expiry Profile
Staggered Contract Expiry Profile as at 31 Dec 2024 By Lettable Area By Rental Income 51.3% 27.6% 30.0% 22.1% 15.4% 14.2% 7.6% 6.7% 7.3% 8.4% 5.0% 4.4% 2025 2026 2027 2028 2029 ≥2030 2025 2026 2027 2028 2029 ≥2030 Colocation 4.5% 2.7% 1.4% 2.7% 5.9% 2.5% Colocation 13.7% 7.7% 2.2% 12.0% 27.4% 12.4%
Slide 11: Diversified Global Client Base
Diversified Global Client Base • Proportion of rental income from hyperscalers has increased post-acquisition of KDC SGP 7 & 8 Top 10 Clients3 Trade Sector Rental Income1 Rental Income by Trade Sector1 Fortune Global 500 Company (Hyperscaler) Internet Enterprise 39.2% Internet Fortune Global 500 Com
Slide 12: Growth in Data Centre Portfolio Valuation
Growth in Data Centre Portfolio Valuation 31 Dec 2024 31 Dec 2023 Portfolio Value 1 1 Location No. of Valuation No. of Valuation S$4,831.5m Properties (S$’m) Properties (S$’m) (S$3,601.7m in 2023) 2 Asia Pacific 14 3,867.8 12 2,563.4 +34.1% with acquisitions; 3 Singapore 8 3,179.0 6 1,960.6 +3.4% on
Slide 13: Capital Management
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Slide 14: Agile Financial Management
Agile Financial Management Key Metrics As at 31 Dec 2024 Change from 30 Sep 2024 Aggregate Leverage1 31.5% -820 bps 3.1% (4Q 2024) -20 bps Average Cost of Debt2 3.3% (YTD) -10 bps Weighted Average Debt Tenor 3.2 years -0.2 years Weighted Average Hedge Tenor 2.7 years -0.2 years Interest Coverage Rat
Slide 15: Favourable Debt Profile
Favourable Debt Profile as at 31 Dec 2024 Proportion of Fixed to Floating Loans Debt Maturity Profile Fixed Floating 4.6% 66% 34% 0.6% 3.0% Debt 1.6% 3.2% 7.3% 5.9% 5.3% 8.7% • A 50 bps change would have a ~1.3%1 impact 16.5% to 4Q 2024’s DPU on a pro forma basis 14.3% 12.6% 5.9% 2.5% 3.8% 4.2% Debt
Slide 16: Outlook
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Slide 17: Data Centres to Power the AI Revolution
Data Centres to Power the AI Revolution • The global data centre market has expanded at a steady pace, underpinned by growth from global cloud service providers (CSPs) which accounts for 22.7% of the global supply as of 3Q 2024. The global colocation data centre market took up a larger share of the
Slide 18: Thank You
Thank You For more information, please visit: www.keppeldcreit.com Connect with us on: Linkedin - Free social media icons Important Notice: The past performance of Keppel DC REIT is not necessarily indicative of its future performance. Certain statements made in this presentation may not be based on
Slide 19: Additional Information
06 Additional Information 19
Slide 20: Diversified Global Portfolio with Strong Asia Pacific Presence
Diversified Global Portfolio with Strong Asia Pacific Presence KEPPEL’S ASSETS • • • • SINGAPORE CHINA INDONESIA JAPAN • THE NETHERLANDS Keppel DC REIT Assets under Management • Keppel DC Singapore 7 • Keppel DC Singapore 8 • DC 1 ~$5.0b1 25 data centres across 10 countries AUM Breakdown1 Asia Pacif
Slide 21: Keppel DC REIT's AUM has Quintupled Since IPO
Keppel DC REIT’s AUM has Quintupled Since IPO AUM: ~$5.0b2,3 25 assets across 10 countries ~17% CAGR AUM: $1.0b 1 3.7 3.7 3.4 8 assets 3.0 across 6 2.6 countries 2.0 1.5 1.1 1.2 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1. Divested iseek Data Centre in Australia in Sep 2021. 2. Divested
Slide 22: Portfolio Overview (as at 31 Dec 2024)
Portfolio Overview (as at 31 Dec 2024) Attributable Attributable Land lease No. of Occupancy rate WALE Property Age Interest lettable area gross Valuation3 Lease type Land lease title remaining Clients1 (%) (years)4 (years) (sq ft) revenue 2 (years) Asia Pacific Leasehold ~28 Keppel DC Singapore 1,
Slide 23: Portfolio Overview (as at 31 Dec 2024)
Portfolio Overview (as at 31 Dec 2024) Attributable Attributable Land lease No. of Occupancy WALE Property Age Interest lettable area gross Valuation3 Lease type Land lease title remaining Clients1 rate (%) (years)4 (years) (sq ft) revenue2 (years) Europe Kelsterbach Data Centre, €39.0m Triple-net 1
Slide 24: Overview of Contractual Arrangements
Overview of Contractual Arrangements Responsibilities of Owner Insuranc Contractual Property Mainten Building Refresh Asia Pacific Description Capex Arrangement Opex ance Tax e Keppel lease1 / • Client: Pays rent Keppel DC Singapore 1 ✓ ✓ ✓ ✓ Colocation2 • Owner: Bears all expenses; responsible for
Slide 25: Overview of Contractual Arrangements
Overview of Contractual Arrangements Responsibilities of Owner Maintenance Contractual Europe Description Insurance Arrangement Property Building Refresh Capex Opex Tax Kelsterbach Data Centre Triple-net lease • Client: Pays rent and all outgoings; responsible for facilities management - - - - mainc
Slide 26: ESG Targets and Commitments
ESG Targets and Commitments Environmental Stewardship Responsible Business People & Community Align reporting with the Obtain and maintain green certification for all Engage with local communities and recommendations of the Taskforce on Singapore colocation assets by 2025 and obtain contribute to Ke
Slide 27: ESG Highlights
ESG Highlights Environmental Stewardship Responsible Business People & Community • Align reporting with the • Dedicated Board ESG Committee • Dedicated >1,100 community hours in recommendations of the conjunction with Keppel’s Fund • Recertified BCA Green Mark Platinum Award for Taskforce on Climate
Slide 28: Keppel DC REIT Structure (as at 31 Dec 2024)
Keppel DC REIT Structure (as at 31 Dec 2024) Keppel Institutional and The REIT Manager can leverage Keppel’s global asset management platform and its strong expertise as an operator in sustainability- Public Investors related solutions spanning the areas of infrastructure, real estate and connectivi