Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — 9M 2019 Earnings Presentation
26 slides from Keppel Dc Reit's earnings presentation, Oct 15, 2019
Slide 1: Third Quarter & Nine Months 2019 Financial Results
Third Quarter & Nine Months 2019 Financial Results 15 October 2019
Slide 2: Outline
Outline ◼ Key Highlights ◼ Financial Performance ◼ Capital Management ◼ Portfolio Update ◼ Outlook 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 historical information
Slide 3: Key Highlights
Key Highlights ▪ Steady y-o-y growth in distributable income and DPU, increasing 16.9% to $81.8m and 5.7% to 5.78 cents respectively in 9M 2019 ▪ Announced DPU-accretive acquisitions of two Singapore data centres that will increase AUM by 30.2% to approximately $2.6 billion ▪ Inclusion in FTSE EPRA
Slide 4: Portfolio Growth since Listing
Portfolio Growth since Listing Keppel DC Keppel DC Intellicentre 3 Keppel DC DC located at 18 maincubes Keppel DC Singapore 3 Dublin 2 East Data Centre Singapore 4 Riverside Road Data Centre Singapore 5 (KDC SGP 4)2 Singapore (DC1)2 Cardiff Data Centre Milan Data Centre Post-completion Intellicentre
Slide 5: Strengthening Foothold in Singapore
Strengthening Foothold in Singapore 99% Interest in 100% Interest Grow portfolio AUM by KDC SGP 4 in DC1 30.2% to approx. $2.6b ▪ Five-storey carrier-neutral and ▪ Five-storey purpose-built facility ✓ DPU-accretive purpose-built colocation facility completed in 2016 completed in 2017 ▪ Triple-net ma
Slide 6: Financial Performance
Financial Performance yy) DC REIT 6g
Slide 7: Distributable Income
Distributable Income Distribution Per Unit (cents) 3Q 3Q +/(-) 9M 9M +/(-) ($’000) 2019 2018 % 2019 2018 % 6.00 Distributable Income to 27,427 26,024 5.4 81,780 69,970 16.9 5.781 Unitholders +5.7% Comprising 5.47 5.50 Gross Revenue 46,354 47,557 (2.5) 141,846 127,492 11.3 Property Expenses (4,085) (
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights As at As at +/(-) ($’000) 30 Sep 2019 31 Dec 2018 % Investment Properties 2,025,693 2,028,672 (0.1) Total Assets 2,470,882 2,259,144 +9.4 Gross Borrowings1 695,754 673,952 +3.2 Total Liabilities 823,011 783,150 +5.1 Unitholders’ Funds 1,616,400 1,444,839 +11.9 Units in Issue
Slide 9: Aggregate Leverage
Aggregate Leverage As at As at +/(-) ($’000) 30 Sep 2019 31 Dec 2018 % Investment Properties1 (excluding lease liabilities commitments) 1,993,244 1,995,206 (0.1) Deposited Properties1 (excluding lease liabilities commitments) 2,406,214 2,187,396 +10.0 Gross Borrowings + Deferred Payment 695,754 673,
Slide 10: Capital Management
Capital Management yy) DC REIT 10
Slide 11: Prudent Capital Management
◼ Refinanced Singapore dollar- Prudent Capital Management denominated loan due end-2019 by Debt Maturity Profile 6 years to 2025 As at 30 Sep 2019 ◼ Lower aggregate leverage provides healthy debt headroom for growth: Raised $478.2m in gross proceeds 17.4% through private placement and 8.7% 22.5% pre
Slide 12: Prudent Capital Management
Prudent Capital Management ◼ Managing interest rate exposure: 80% of loans hedged with floating-to- fixed interest rate swaps Investment properties breakdown1 Debt currency breakdown (as at 30 Sep 2019) (as at 30 Sep 2019) ◼ Mitigating impact of currency fluctuations: Italy ̶ Hedged forecasted forei
Slide 13: Portfolio Update
Portfolio Update yy) DC REIT 13 f
Slide 14: Diversified and Resilient Portfolio
Diversified and Resilient Portfolio Portfolio Update ▪ 66.9% of portfolio in Asia ▪ Healthy portfolio occupancy of ▪ Keppel DC Singapore 3 Pacific and 33.1% in Europe 93.6% and long WALE of 7.7 years ̶ Retrofitting works for client’s expansion completed in July 2019 Portfolio AUM breakdown Lease exp
Slide 15: Diversified and Resilient Portfolio
Diversified and Resilient Portfolio Rental income breakdown ◼ Quality data centres that cater to the requirements of global for the month of Sep 20191 clientele By trade sector: • Colocation facilities provide diverse client profile and lease expiry Internet • Fully-fitted and shell & core facilitie
Slide 16: Outlook
Outlook Keppel boiaug 16 f
Slide 17: Supported by Sound Industry Fundamentals
Supported by Sound Industry Fundamentals Cloud provider spending Mobile data traffic expected to on colocation and data center increase by up to 3.5 times from leasing grew by 17% in 1H 2018 to 20213 20191 Global cloud infrastructure Worldwide IoT spending to market expected to grow by grow at 13.6%
Slide 18: Positioned for Growth
Positioned for Growth Ireland Keppel DC Dublin 1, Dublin Keppel DC Dublin 2, Dublin The Manager will continue to strengthen United Kingdom Keppel DC REIT’s presence and position GV7 Data Centre, London it to capitalise growth opportunities in Cardiff Data Centre, Cardiff the data centre industry The
Slide 19: Committed to Deliver Value
Committed to Deliver Value ▪ Vision: To be the preferred data centre real estate investment trust, serving as a trusted partner to our stakeholders. ▪ Mission: Guided by the Keppel Group’s operating principles and core values, we will create value for our investors by growing a quality portfolio of
Slide 20: Additional Information
Additional Information yy) DC REIT 20 f
Slide 21: Keppel DC REIT Structure
Keppel DC REIT Structure as at 15 Oct 2019 Keppel Keppel Capital Telecommunications & Transportation Institutional and The REIT Manager can leverage The REIT Manager can leverage Public Investors the scale and resources of a larger the Sponsor‘s expertise and track asset management platform record i
Slide 22: Portfolio Overview (as at 30 Sep 2019)
Portfolio Overview (as at 30 Sep 2019) Attributable No. of Occupancy Valuation2 WALE Location Interest lettable area Lease type Land lease title clients1 rate (%) ($m) (years) (sq ft) Asia Pacific Leasehold Keppel lease / Keppel DC Singapore 1 Singapore 100% 109,721 18 87.2 287.0 4.0 (Expiring 30 Se
Slide 23: Portfolio Overview (as at 30 Sep 2019)
Portfolio Overview (as at 30 Sep 2019) Attributable lettable No. of Occupancy Valuation2 WALE Location Interest Lease type Land lease title area (sq ft) clients1 rate (%) ($m) (years) Sydney, Triple-net Intellicentre 2 Data Centre 100% 87,930 1 100.0 49.9 15.9 Freehold Australia (Shell & core) A$26.
Slide 24: Overview of Lease Arrangements
Overview of Lease Arrangements Responsibilities of Owner Maintenance Lease Insurance Asia Pacific Description Property Building Refresh Arrangement Capex Opex Tax Keppel lease1 / ◼ Client: Pays rent Keppel DC Singapore 1 ✓ ✓ ✓ ✓ Colocation4 ◼ Owner: Bears all expenses; responsible for facilities man
Slide 25: Overview of Lease Arrangements
Overview of Lease Arrangements Responsibilities of Owner Maintenance Lease Insurance Europe Description Property Building Arrangement Refresh Capex Opex Tax Cardiff Data Centre Triple-net lease ◼ Client: Pays rent and all outgoings; responsible for facilities management - - - - GV7 Data Centre Tripl
Slide 26: Thank You
Thank You yy) DC REIT 26 ff