Keppel REIT · SGX:K71U
Keppel REIT — H1 2018 Earnings Presentation
26 slides from Keppel REIT's earnings presentation, Jul 16, 2018
Slide 1: Second Quarter & Half Year 2018 Financial Results
Second Quarter & Half Year 2018 Financial Results 16 July 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: 1H 2018: Key Highlights
1H 2018: Key Highlights Distributable Income $96.6 mil $ Distribution per Unit 2.84 cents Aggregate Leverage 38.6% All-in Interest Rate 2.77% p.a. Leases Committed 882,800 sf (Attributable area ~386,800 sf) Portfolio Committed Occupancy 99.3% Portfolio WALE 5.2 years Tenant Retention
Slide 4: Financial Performance & Capital Management
Financial Performance & Capital Management Marina Bay Financial Centre, Singapore 4
Slide 5: Financial Performance
Financial Performance 2Q 2018 2Q 2017 1H 2018 1H 2017 Property Income $51.7 mil(1) $39.8 mil $91.4 mil(1) $79.7 mil Net Property Income $43.2 mil $31.9 mil $74.4 mil $63.3 mil Share of Results of Associates $26.5 mil $28.3 mil $54.9 mil $59.8 mil and Joint Ventures Distribution to Unitholders $48.3
Slide 6: Income Contribution
Income Contribution Resilient income streams augmented by a young and diversified portfolio of premium Grade A office space in Singapore and Australia Income Contribution* by Asset & Geography (for 1H 2018) Marina Bay Financial Centre, 29.0% One Raffles Quay, 9.5% Bugis Junction Towers, 82.5% 5.6%
Slide 7: Balance Sheet
Balance Sheet As at As at 30 Jun 2018 31 Mar 2018 % of Assets Unencumbered 84% Total Assets $7,623 mil $7,615 mil Unencumbered (1) Borrowings $3,371 mil $3,367 mil Total Liabilities $2,666 mil $2,661 mil Unitholders’ $4,806 mil $4,800 mil Funds 16% Adjusted NAV Encumbered $1.40 $1.40 per Unit(2) (1)
Slide 8: Capital Management
Capital Management Proactively managing the refinancing of loans that are due in 2019 30 Jun 2018 Weighted average term to maturity Interest Coverage Ratio 4.3x of 2.9 years Intends to initiate unit buy-backs as part of All-in Interest Rate (p.a.) 2.77% proactive capital management strategy Ag
Slide 9: Portfolio Review
Portfolio Review 8 Chifley Square, Sydney 9
Slide 10: Progress at 311 Spencer Street
Progress at 311 Spencer Street Development of freehold Grade A office tower is progressing 30-year lease to Victoria Police will commence upon completion of development AUM(2) Breakdown by Asset & Geography (as at 30 Jun 2018) Ocean Financial Centre, 30.7% One Raffles Quay, 14.9% 86.9% Bugis Jun
Slide 11: Proactive Leasing Strategy
Proactive Leasing Strategy Leasing Updates for 1H 2018 54 ~882,800 sf 99.3% Committed Leases Portfolio Committed Leases (Attributable ~386,800 sf) Occupancy Tenant Retention 77% ~5.2 years ~8.0 years & WALE Retention Rate Portfolio WALE Top 10 Tenants’ WALE Leases Committed in 1H 2018 Breakdown by G
Slide 12: Proactive Leasing Strategy (Cont'd)
Proactive Leasing Strategy (Cont’d) Average signing rent for the Singapore office leases was ~$10.74 psf pm(1) for 1H 2018 New demand from diverse sectors: In Singapore, new leases were mainly from the banking, insurance and financial services sector In Australia, demand mainly came from a g
Slide 13: Proactive Leasing Strategy (Cont'd)
Proactive Leasing Strategy (Cont’d) Committed occupancies for the Singapore and Australia assets are well above market average, testament to the portfolio’s ability to attract quality tenants In the midst of leasing up vacancies at 275 George Street and 8 Exhibition Street High Portfolio Committ
Slide 14: Well-Spread Lease Expiry
Well-Spread Lease Expiry Portfolio income stability enhanced with a well-spread lease expiry profile 2.9% of portfolio NLA remaining for renewal and 8.8% remaining for review in 2018 Portfolio Lease Expiry Profile (by attributable area) 42.7% 21.0% 14.4% 8.8% 10.2% 8.1% 7.1% 3.3% 4.9% 2.9% 1.6%
Slide 15: Diversified Tenant Base
Diversified Tenant Base Top 10 Tenants(1) Profile of Tenant Base(1) Occupies 39.6% of portfolio NLA Number of Tenants: 337(2) Contributes 37.0% of gross rental income DBS 6.2% Western Australian Govt 4.9% BNP Paribas 4.8% Standard Chartered 4.3% Ernst & Young 3.9% Banking, insurance and financial se
Slide 16: Looking Ahead
Looking Ahead Ocean Financial Centre, Singapore 16
Slide 17: Singapore Office Market
Singapore Office Market In 2Q 2018, occupancy in the core CBD remained stable at 94.1%, while average Grade A office rental rose to $10.10 psf pm Positive medium-term rental outlook in view of tapering supply pipeline and recovering market fundamentals 96.2% 95.8% 94.8% 95.2% 95.1% 95.9% 95.8% 9
Slide 18: Australia Office Market
Australia Office Market National CBD office average occupancy improved to 90.1% Vacancy level is at its lowest level since 2013 driven by improving business and leasing conditions across Australia office markets Leasing enquiries observed to be gravitating towards quality assets View from terr
Slide 19: 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 20: Additional Information
Additional Information 8 Exhibition Street, Melbourne 20
Slide 21: 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 (1) S$8.5 billion(1) total attributable NLA of Singapore and Australia(1
Slide 22: 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 23: Portfolio Information: Singapore
Portfolio Information: Singapore Marina Bay Ocean Financial Centre One Raffles Quay Bugis Junction Towers Financial Centre (3) Attributable NLA 880,603 1,025,522 442,806 244,579 (sf) Ownership 99.9% 33.33% 33.33% 100.0% Keppel Land, ANZ, DBS Bank, Deutsche Bank, IE Singapore, Principal tenants BNP P
Slide 24: 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 25: 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% 3.3% 43.4% 53.3% Management Act
Slide 26: Thank You
REIT Thank You