Keppel REIT · SGX:K71U
Keppel REIT — Q3 2007 Earnings Presentation
14 slides from Keppel REIT's earnings presentation, Oct 10, 2007
Slide 1: Financial Results from 1 January to 30 September 2007
FINANCIAL RESULTS from 1 January to 30 September 2007 10 October 2007 Contents Highlights Financial Results Portfolio Performance Proposed Acquisition of One-third Interest in One Raffles Quay Market Review and Outlook Going Forward 2
Slide 2: Highlights
Highlights Financial Results (1 Jan to 30 Sept 2007) ¾ Net profit of $11.8m, up 46.6% from YTD Sept 2006 ¾ Distribution Per Unit (DPU) of 6.14 cents (8.21 cents annualised) ¾ 99.6% committed occupancy as at 30 Sept 2007 ¾ Total return of 10.1% (1) for YTD 3Q2007 and 169% since listing (2) (1) Based
Slide 3: Earnings Continued to Outperform; Portfolio Income by Asset
Earnings Continued to Outperform Distributable income outperforms by 34.8% to reach $14.9m for YTD Sept 2007 YTD Sept 2007 YTD Sept 2006 3Q2007 3Q2006 % Chg % Chg (1) ($'000) Actual Pro forma Actual Actual Property Income 29,041 24,676 17.7 10,323 8,769 17.7 Property Expenses (7,803) (7,265) 7.4 (
Slide 4: DPU Outperforms; Capital Management
DPU Outperforms 3Q2007 DPU of 2.23 cents, outperforms 3Q2006 by 30.4% DPU of 6.14 cents for YTD Sept 2007 (annualised at 8.21 cents) YTD Sept 2007 3Q2007 3Q2006 DPU 6.14 ¢ 2.23 ¢ 1.71 ¢ Annualised DPU 8.21 ¢ 8.85 ¢ 6.78 ¢ Distribution Yield (1) 3.05% 3.29% 2.52% (1) Based on closing price of $2.
Slide 5: Portfolio Performance: Broad Tenant Diversity
Portfolio Performance Broad Tenant Diversity Top 10 Tenants : 51.4% of NLA (73,066 sm) @ 30 Sept 2007 International Enterprise Singapore 10.8% GE Pacific 10.1% Keppel Land Int'l 6.7% J.V. Fitness 4.1% Seadrill Management 3.9% Prudential Assurance Co. S'pore 3.6% Intercontinental Hotels Group 3.4% Si
Slide 6: Strong Trade Sector Mix; Further Appreciation in Portfolio Rents
Strong Trade Sector Mix Diverse tenant base ¾ A total of 94 tenants from various industries Financial and business services Hospitality Government agencies Pharmaceuticals and healthcare IT services and consultancy Risk diversification ¾ Top tenant by NLA contributes less than 15% of g
Slide 7: Positive Rent Reversions; Strong Occupancy Rates
Positive Rent Reversions Lease Expiry as a Percentage of NLA @ 30 Sept 2007 About 70% of NLA due for renewal 35% 29.1% 29.6% from 2008 to 2010 30% 26.7% 25% Positive rent 20% 14.2% reversions on 15% sustained demand 10% for prime office 5% space 0% 2008 2009 2010 2011 and beyond 13 Strong Occupa
Slide 8: Proposed Acquisition of One-third Interest in One Raffles Quay
Proposed Acquisition of One-third Interest in One Raffles Quay Significant Maiden Acquisition Proposed acquisition of Keppel Land’s one-third stake in One Raffles Quay (ORQ) for about $941.5m Significant maiden acquisition (1) ¾ Asset size more than doubles from $815m to $1.76 bn ¾ Portfolio net
Slide 9: Enlarged Portfolio with ORQ Stake
Enlarged Portfolio with ORQ Stake Total portfolio value to $1.76 billion(3) Prudential Tower (1) Keppel Towers Total NLA to One Raffles Quay (2) 1.23 million sf(3) GE Tower Bugis Junction Towers (1) K-REIT Asia owns approximately 44% of strata area of the building (108,439 sf) 17 (2) K-REIT Asia’s a
Slide 10: Strong Demand for Quality Space; Upward Trend in Office Rents
Strong Demand for Quality Space Robust Singapore economy ¾ Government revised upwards 2007 GDP growth forecast to 7 – 8% from 5 – 7% previously Strong growth in financial services sector More broad-based demand from shipping, energy, trading, legal and IT sectors Rental and occupancy rates s
Slide 11: Going Forward: Growth Strategy
Going Forward Growth Strategy Achieve better returns through Organic proactive management and active Growth leasing of properties Seek growth acquisitions in Acquisition Singapore and overseas that will Growth potentially value-add to the portfolio Identify asset enhancement Asset initiatives to bet
Slide 12: A Pan-Asian Commercial REIT
A Pan-Asian Commercial REIT Target portfolio size of $2 bn within reach $m Portfolio Size 2,000 $1,756.5m 1,800 Grow portfolio by 1,600 identifying and pursuing 1,400 1,200 quality commercial 1,000 assets in Singapore and 800 $630.7m $677.0m $815.0m other Asian growth cities 600 400 200 Ride o
Slide 13: Total Return Outperforms Major Indices; Property Portfolio
Total Return Outperforms Major Indices Total return of 169% since listing (1) Total Return 240% 240% 220% 220% 200% 200% 180% 180% 160% 160% 140% 140% 120% 120% 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% -20% -20% 4/28/2006 5/28/2006 6/27/2006 7/27/2006 8/26/2006 9/25/2006 10/25/2006 11/24/20
Slide 14: Snapshot of K-REIT Asia; Thank You
Snapshot of K-REIT Asia Manager K-REIT Asia Management Limited Property Portfolio Four quality office buildings valued at $815 million Listing and Trading Date 28 Apr 2006 on Singapore Stock Exchange (1) Market Capitalisation $718.4 million (as at 9 Oct 2007) Unit Price $2.96 (closing price on 9 Oct