Kore Us REIT · SGX:CMOU
Kore Us REIT — Keppel-KBS US REIT — FY2018 Earnings Presentation
23 slides from Kore Us REIT's earnings presentation, Jan 24, 2019
Slide 1: Financial Results for the period from Listing Date to 31 December 2018
Financial Results for the period from Listing Date to 31 December 2018 24 January 2019
Slide 2: Contents and Important Notice
Contents Key Highlights 2 Financial Performance & Capital Management 5 Portfolio Overview 9 Market Outlook 14 Looking Ahead 17 Important Notice The past performance of Keppel-KBS US REIT is not necessarily indicative of its future performance. Certain statements made in this release may not be based
Slide 3: Key Highlights
Key Highlights Westpark Portfolio, Seattle, Washington
Slide 4: Delivered Long-Term Value for Unitholders
Delivered Long-Term Value for Unitholders Distributable Distribution per Unit Distribution Portfolio Committed Income (DI) (DPU) Yield Occupancy From Listing Date to 31 Dec 2018 From Listing Date to 31 Dec 2018 As at 31 Dec 2018 As at 31 Dec 2018 US$43.8 M 6.22 US cents 8.9% (1) 91.6% ▪ First acquis
Slide 5: First choice submarkets with positive growth fundamentals
First choice submarkets with positive growth fundamentals Seattle, Washington Portfolio Overview Description 12 office properties across 7 key growth markets NLA Approx. 4.0 million AUM US$1.02 billion The Plaza Buildings Bellevue Technology Center The Westpark Portfolio Occupancy rate: 93.4% Occupa
Slide 6: Financial Performance & Capital Management
Financial Performance & Capital Management Maitland Promenade II, Orlando, Florida
Slide 7: Financial Performance: Higher DI driven by acquisition and stable operating performance
Financial Performance Higher DI driven by acquisition and stable operating performance 4Q 2018 (1) Listing Date to 31 Dec 2018 (1) Actual Forecast(2) % Actual Forecast(2) % (US$’000) (US$’000) Change (US$’000) (US$’000) Change Gross Revenue 24,502 23,128 5.9 105,917 104,902 1.0 Property Expenses (9,
Slide 8: Healthy balance sheet; US Tax Restructuring Update
Financial Performance Healthy balance sheet US Tax Restructuring Update As at 31 Dec 2018 ▪ US Department of Treasury clarified its (US$’000) position and treatment of hybrid entities Total Assets 1,067,112 and hybrid arrangements on 20 Dec 2018 Investment Properties 1,016,750 ▪ Government of Barbad
Slide 9: Capital Management
Capital Management Limited interest rate exposure with term loans significantly hedged Debt Maturity Profile As at 31 Dec 2018 US$374.4m of external 38.7% 38.7% Total debt loans (100% unsecured) US$45.0m of undrawn 21.4% Available facilities revolving credit facility 1.3% (1) Aggregate leverage(2) 3
Slide 10: Portfolio Overview
Portfolio Overview Bellevue Technology Center, Seattle, Washington
Slide 11: Deepening Presence in First Choice US Submarkets
Deepening Presence in First Choice US Submarkets Driving growth with value accretive acquisitions The Westpark Portfolio Maitland Promenade I Seattle, Washington Orlando, Florida ▪ Completed on 30 November 2018 ▪ Completed on 16 January 2019 ▪ 21 building business campus in Redmond, ▪ Adjacent to Ma
Slide 12: Leasing Updates
Leasing Updates Strong leasing momentum with positive rental reversion ▪ Strong leasing demand for KORE’s assets in first choice submarkets ▪ Committed ~133,000 sf (18 leases) in 4Q 2018, bringing total leases signed since IPO to ~741,000 sf (100 leases) ▪ Leasing demand mainly from the fast-growing
Slide 13: Well-Diversified Tenant Base
Well-Diversified Tenant Base Resilient portfolio with low tenant concentration risk ▪ Well-diversified tenant base across key growth sectors ▪ Top 10 tenants comprise 17.5% of portfolio NLA and contribute 20.8% of cash rental income Top 10 tenants by cash rental income as at 31 December 2018 Portfol
Slide 14: Growing in Value
Growing in Value As at 31 Dec 2018 At IPO/Acquisition Cushman Valuation Purchase Price Cushman JLL Property (US$ ’million) (US$ ’million) (US$ ’million) (US$ ’million) The Plaza Buildings 253.5 240.0 243.9 236.1 Seattle, Bellevue CBD Bellevue Technology Center 136.0 131.2 133.0 129.3 Seattle, Eastsi
Slide 15: Market Outlook
Market Outlook Seattle, Washington
Slide 16: US Market Outlook
US Market Outlook Stable office market supported by sound economic conditions ▪ US labour market continued to strengthen in 2018 Last 12M Deliveries ▪ Growth trajectory of the US economy projected to continue 59.9mln sf at a moderate pace as recovery matures ▪ Projected GDP growth of 2.3% in 2019 an
Slide 17: First Choice Submarkets: Rent growth drivers
First Choice Submarkets: Rent growth drivers Property and Submarket Vacancy Last 12M Last 12M Average Last 12M Projected Rate Deliveries absorption Submarket Rent Rental Growth Rental Growth (%) (sf’000) (sf’000) (US$ p.a.) (%) (%) The Plaza Buildings 5.9% - 98.0 48.9 10.4% 7.5% Seattle, Bellevue CB
Slide 18: Looking Ahead
Looking Ahead Northridge Centre II, Atlanta, Georgia
Slide 19: Focused on Stable Distributions and Delivering Long Term Value
Focused on Stable Distributions and Delivering Long Term Value Portfolio Value Accretive Prudent Capital Optimisation Acquisitions Management ▪ Focused leasing strategy ▪ Pursue growth ▪ Effective hedging to targeting high growth opportunities that mitigate against impact sectors create long term va
Slide 20: Thank You
Thank You For more information, please visit www.kepkbsusreit.com Westech 360, Austin, Texas
Slide 21: Additional Information
Additional Information Great Hills Plaza, Austin, Texas
Slide 22: Structure of Keppel-KBS US REIT
Structure of Keppel-KBS US REIT Sponsors(1) KPA Keppel Capital Keppel Unitholders relevant International Pte. Ltd. Capital Tax-efficient structure for entity (“KCI”) holding US properties Keppel Management Agreement Trustee Management Keppel-KBS US REIT Services Keppel-KBS Fees Management Leverage S
Slide 23: Portfolio overview
Portfolio overview Committed occupancy WALE Valuation Property City Location NLA (sf) (by NLA) (in years) (US$m) The Plaza Buildings Seattle Bellevue CBD, one of the most active leasing submarket in 490,994 93.4% 3.5 253.5 Seattle Bellevue Technology Seattle Bellevue, one of the most active leasing