Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — 1H 2017 Earnings Presentation
27 slides from Keppel Dc Reit's earnings presentation, Jul 17, 2017
Slide 1: Second Quarter & First Half 2017 Financial Results
Second Quarter & First Half 2017 Financial Results 17 July 2017
Slide 2: Important Notice
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 or facts and may be “forward-looking” statements due to a number of risks, uncertainties and assump
Slide 3: Content
Content Key Highlights Financial Performance Portfolio Review Capital Management Outlook Additional Information 2
Slide 4: Key Highlights
Key Highlights
Slide 5: Key Highlights
Key Highlights $ € £ DPU Declared1 Portfolio Occupancy Aggregate Leverage2 3.63 cents 93.1% 27.7% for 1H 2017 as at 30 Jun 2017 as at 30 Jun 2017 Annualised Distribution Yield1 Portfolio WALE Interest Coverage 5.56% 9.4 years 10.6 times based on 1H 2017’s by leased area as at 30 Jun 2017 closing p
Slide 6: Financial Performance
Financial Performance
Slide 7: Distributable Income
Distributable Income +/(-) +/(-) ($’000) 2Q 2017 2Q 2016 1H 2017 1H 2016 % % Distributable Income to Unitholders 1 20,130 14,749 +36.5 41,896 29,496 +42.0 Comprising: Gross Revenue 34,515 24,865 +38.8 66,739 49,636 +34.5 Property Expenses (3,152) (2,760) +14.2 (6,532) (6,345) +2.9 Net Property Incom
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights As at As at +/(-) ($’000) 30 Jun 2017 31 Dec 2016 % Investment Properties 1,462,328 1,225,938 +19.3 Total Assets 1,641,692 1,582,999 +3.7 Gross Borrowings 1 438,843 439,321 (0.1) Total Liabilities 526,147 509,131 +3.3 Unitholders’ Funds 1,090,666 1,073,525 +1.6 Units in Issu
Slide 9: Aggregate Leverage
Aggregate Leverage As at As at +/(-) ($’000) 30 Jun 2017 31 Dec 2016 % Investment Properties 1 1,429,930 1,193,540 +19.8 (excluding finance lease liabilities commitments) Deposited Properties 1 1,582,443 1,550,258 +2.1 (excluding finance lease liabilities commitments) Gross Borrowings + Deferred Pay
Slide 10: Distribution Declared
Distribution Declared DPU of 3.63 cents declared for 1H 2017 Adjusted DPU and adjusted annualised distribution yield of 1H 2017 would have been 3.48 cents and 5.44%1 respectively after excluding the one-off capital distribution Adjusted distribution yield1 Distribution Timetable 5.44% Ex-Date Fr
Slide 11: Portfolio Review
Portfolio Review
Slide 12: Portfolio Update
Portfolio Update Portfolio occupancy of 93.1% and a long WALE of 9.4 years Of the three major leases due for expiry in 2017, Two of the leases have been agreed in-principle, pending finalisation of lease documentation Basis Bay lease has been renewed for another five years. The client has re
Slide 13: Stable & Diversified Portfolio
Stable & Diversified Portfolio Rental income breakdown in the month of June 20171 By trade sector: IT services Income stability with an established global clientele Corporate 26.6% 2.7% and a mix of master-leased facilities on long leases, Financial services as well as colocation facilities which pr
Slide 14: Activities in Europe
Activities in Europe Capex works at Keppel DC Dublin 1 Construction of maincubes Data to improve overall power efficiency Centre is on track and legal scheduled to commence in 4Q 2017 completion of the deal targeted to be in 2Q 2018 Keppel DC Dublin 1 to undergo upgrading maincubes Data Centre o
Slide 15: Capital Management
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Slide 16: Prudent Capital Management
Prudent Capital Management Early refinancing of loans: Refinanced EUR and Hedging of borrowing costs As at 30 June 2017 Un- GBP-denominated loans that were maturing in 2018 hedged 17% Diversifying sources of funding: Established S$500,000,000 Multicurrency Medium Term Note Programme Hedged 83%
Slide 17: Prudent Capital Management (Cont'd)
Prudent Capital Management (Cont’d) Mitigating impact of currency fluctuations: Hedged the REIT’s foreign-sourced distributions up to 2H 2018 through foreign currency forward contracts Adopted natural hedging by borrowing in currencies that match the corresponding investments Investment proper
Slide 18: Outlook
Outlook
Slide 19: Positive Industry Trends
Positive Industry Trends Data centre spending remains robust in 2017: Close to 75%1 of companies’ data centre budgets have increased or stayed consistent since 2016 level Continued demand for quality data centre space: Large enterprises expected to continue running mission-critical workloads in
Slide 20: Committed to Deliver Value
Committed to Deliver Value Vision: To be the preferred data centre real estate investment trust, serving as a trusted partner to our stakeholders. Mission: Guided by the Keppel Group’s operating principles and core values, we will create value for our investors by growing a quality portfolio of data
Slide 21: Additional Information
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Slide 22: Keppel DC REIT Structure
Keppel DC REIT Structure Keppel Telecommunications Keppel Capital & Transportation The REIT Manager can leverage The REIT Manager can leverage the scale and resources of a larger the Sponsor‘s expertise and track Institutional and Keppel Land asset management platform record in this industry Public
Slide 23: Portfolio Overview (as at 30 June 2017)
Portfolio Overview (as at 30 June 2017) Attributable No. of Occupancy Carrying value3 WALE Location Interest lettable area Lease type Land lease title Asia Pacific clients1 rate (%) ($m) (years) (sq ft) Leasehold Keppel DC Keppel lease / (Expiring 30 Sep 2025, Singapore 100% 109,721 19 87.5 280.1 4.
Slide 24: Portfolio Overview (as at 30 June 2017) (Cont'd)
Portfolio Overview (as at 30 June 2017) (Cont’d) Attributable No. of Occupancy Carrying value4 WALE Location Interest lettable area Lease type Land lease title Europe (sq ft) clients1 rate (%) ($m) (years) London, Leasehold Triple-net GV7 Data Centre United 100% 24,972 1 100.0 69.1 9.6 (Expiring (Fu
Slide 25: Overview of Lease Arrangements
Overview of Lease Arrangements Asia Pacific Responsibilities of Owner Maintenance Lease Insurance Property Description Property Building Arrangement Refresh Capex Opex Tax Keppel lease1 / Client: Pays rent Keppel DC Singapore 1 Colocation3 Owner: Bears all expenses; responsible for facil
Slide 26: Overview of Lease Arrangements (Cont'd)
Overview of Lease Arrangements (Cont’d) Europe Responsibilities of Owner Maintenance Lease Insurance Property Description Property Building Arrangement Refresh Capex Opex Tax GV7 Data Centre Triple-net lease Client: Pays rent and all outgoings; responsible for facilities management - - - - Cardiff
Slide 27: Thank you.
Thank you. LG yt) DC REIT 26