Keppel REIT · SGX:K71U
Keppel REIT — Q1 2018 Earnings Presentation
27 slides from Keppel REIT's earnings presentation, Apr 18, 2018
Slide 1: First Quarter 2018 Financial Results
First Quarter 2018 Financial Results 18 April 2018
Slide 2: Outline
Outline Key Highlights 3 Financial Performance & Capital Management 4 Portfolio Review 9 Looking Ahead 16 IMPORTANT NOTICE: The past performance of Keppel REIT is not necessarily indicative of its future performance. Certain statements made in this presentation may not be based on historical informa
Slide 3: 1Q 2018: Key Highlights
1Q 2018: Key Highlights Distributable Income $48.2 mil $ Distribution per Unit 1.42 cents Aggregate Leverage 38.6% All-in Interest Rate 2.75% p.a. Leases Committed 674,100 sf (Attributable area ~261,400 sf) High Portfolio Committed Occupancy 99.4% Long Portfolio WALE 5.3 years High T
Slide 4: Financial Performance & Capital Management
Financial Performance & Capital Management Marina Bay Financial Centre, Singapore 4
Slide 5: Financial Performance
Financial Performance 1Q 2018 1Q 2017 Property Income $39.7 mil $39.9 mil Net Property Income $31.2 mil $31.4 mil Share of Results of Associates and Joint Ventures $28.5 mil $31.5 mil Distribution to Unitholders $48.2 mil $48.1 mil Distribution per Unit (DPU) 1.42 cents 1.45 cents Ex-Date Tue, 24 Ap
Slide 6: Income Contribution
Income Contribution Portfolio income is derived from diversified sources across eight office assets strategically located in the central business districts of Singapore and Australia Income Contribution* by Asset & Geography (for 1Q 2018) Marina Bay Financial Centre, One Raffles Quay, 32.0% 10.5%
Slide 7: Balance Sheet
Balance Sheet As at As at 31 Mar 2018 31 Dec 2017 % of Assets Unencumbered 84% Total Assets $7,615 mil $7,604 mil Unencumbered (1) Borrowings $3,367 mil $3,375 mil Total Liabilities $2,661 mil $2,689 mil Unitholders’ $4,800 mil $4,763 mil Funds 16% Adjusted NAV Encumbered $1.40 $1.40 per Unit(2) (1)
Slide 8: Capital Management
Capital Management No refinancing requirements until 2019(1) 31 Mar 2018 Weighted average term to maturity of 3.2 years(1) Interest Coverage Ratio 4.1x All-in Interest Rate 2.75% Debt Maturity Profile Aggregate Leverage 38.6% 25% 22% 20% Managing interest rate exposure 18% $50m 77% Fixed-Rate 0%
Slide 9: Portfolio Review
Portfolio Review 8 Chifley Square, Sydney 9
Slide 10: Resilient Portfolio of Prime Assets
Resilient Portfolio of Prime Assets Long-term resilience of the REIT’s income streams is augmented by AUM* Breakdown a young and diversified portfolio by Asset & Geography comprising premium Grade A office (as at 31 Mar 2018) space in Singapore and Australia Marina Bay Financial Centre, 35.1% One
Slide 11: Proactive Leasing Strategy
Proactive Leasing Strategy Leasing Updates for 1Q 2018 20 ~674,100 sf 99.4% Committed Leases Portfolio Committed Leases (Attributable ~261,400 sf) Occupancy Tenant Retention 93.0% ~5.3 years ~7.9 years & WALE Retention Rate Portfolio WALE Top 10 Tenants’ WALE Leases Committed in 1Q 2018 Breakdown by
Slide 12: Proactive Leasing Strategy (Cont'd)
Proactive Leasing Strategy (Cont’d) Signing rent for the Singapore office leases was ~$10.05 psf(1) for 1Q 2018 New demand from diverse sectors In Singapore, majority were expansions in the legal sector In Australia, demand came from a government agency taking up space at 275 George Street i
Slide 13: Proactive Leasing Strategy (Cont'd)
Proactive Leasing Strategy (Cont’d) Asset occupancy levels remained healthy with a proactive leasing strategy built on tenant-centric approach Committed occupancies for the Singapore and Australia assets are well above market average High Portfolio Committed Occupancy (as at 31 Mar 2018) Singapo
Slide 14: Well-Spread Lease Expiry
Well-Spread Lease Expiry Steady renewal of expiring and review leases in 1Q 2018 15.0% of leases remaining for renewal and review in 2018, and 11.9% in 2019 Portfolio Lease Expiry Profile (by attributable area) 41.1% 19.8% 14.3% 10.3% 8.8% 7.7% 7.1% 6.2% 4.9% 3.3% 1.6% 0.0% 2018 2019 2020 2021 2
Slide 15: Diversified Tenant Base
Diversified Tenant Base Top 10 Tenants(1) Profile of Tenant Base(1) Occupies 41.4% of portfolio NLA Number of Tenants: 328(2) Contributes 38.8% of gross rental income DBS 6.2% ANZ 5.1% Western Australia Govt 5.0% BNP Paribas 4.7% Standard Chartered 4.3% Banking, insurance and financial services 43.0
Slide 16: Looking Ahead
Looking Ahead Ocean Financial Centre, Singapore 16
Slide 17: Singapore Office Market
Singapore Office Market Occupancy in the core CBD improved to 94.1%, and average Grade A office rental rose to $9.70 psf in 1Q 2018 Strong demand from the insurance and TMT sectors, along with flexible space providers Office market outlook remains positive, driven by continued leasing momentum
Slide 18: Australia Office Market
Australia Office Market Stronger leasing activities across Australia office markets National CBD office average occupancy improved to 89.6% Vacancy level is at its lowest level since 2013 driven by employment growth View from 8 Exhibition Street in Melbourne David Malcolm Justice Centre, 8 Chi
Slide 19: Progress in Sustainability
Progress in Sustainability Keppel REIT in two key SGX ESG indices(1) – the SGX ESG Leaders Index and the SGX ESG Transparency Index David Malcolm Justice Centre in Perth awarded the 5 Stars NABERS Energy rating – recognition of energy-efficient operations and low greenhouse gas emission levels
Slide 20: Operational Excellence
Operational Excellence Deliver Strategy in Action Long-Term Sustainable Income Our goal is to generate sustainable income and create long-term value for Unitholders through achieving operational excellence in all that we do. Our foundation stems from: Our Strong Track Record Delivering sustainable
Slide 21: Additional Information
Additional Information 8 Exhibition Street, Melbourne 21
Slide 22: Portfolio Overview
Portfolio Overview Best-in-Class Assets Largest Portfolio of Premium Office Assets Under Management in Strategic Locations Assets 9 quality Premium Grade and Grade A assets 3.7 million sf in the business and financial districts S$8.5 billion(1) total attributable NLA(1) of Singapore and Australia(1)
Slide 23: Premium Grade A Office Portfolio
Premium Grade A Office Portfolio Singapore* 87% Ocean Financial Centre Marina Bay Financial Centre One Raffles Quay Bugis Junction Towers (99.9% interest) (33.3% interest) (33.3% interest) (100% interest) Australia* 13% 311 Spencer Street 8 Chifley Square, 8 Exhibition Street, 275 George Street, Dav
Slide 24: Portfolio Information: Singapore
Portfolio Information: Singapore Marina Bay Ocean Financial Centre One Raffles Quay Bugis Junction Towers Financial Centre (3) Attributable NLA 880,603 1,026,028 442,806 244,579 (sf) Ownership 99.9% 33.33% 33.33% 100.0% Keppel Land, ANZ, DBS Bank, Deutsche Bank, IE Singapore, Principal tenants BNP P
Slide 25: Portfolio Information: Australia
Portfolio Information: Australia David Malcolm 311 Spencer Street, 8 Chifley Square, 8 Exhibition Street, 275 George Street, Justice Centre, Melbourne Sydney Melbourne(2) Brisbane Perth (Under construction) Attributable NLA 104,138 245,954 224,693 167,784 358,683 (sf) Ownership 50.0% 50.0% 50.0% 50.
Slide 26: Keppel REIT Structure
Keppel REIT Structure Keppel Capital Keppel Land The REIT Manager can leverage The REIT Manager can leverage the scale and resources of a larger the Sponsor‘s expertise and Institutional and asset management platform track record in this industry Public Investors 100% 3.1% 43.6% 53.3% Management Act
Slide 27: Thank You
Thank You For enquiries, please contact: Grace Chia Head, Investor Relations T : +65 6803 1739 E: grace.chia@kepcapital.com