Keppel Ltd. · SGX:BN4
Keppel — Keppel DC REIT — Merger or Acquisition (July 2024)
10 slides from Keppel's merger presentation, Jul 11, 2024
Slide 1: Acquisition of Tokyo Data Centre 1
Acquisition of Tokyo Data Centre 1 11 Jul 2024
Slide 2: Acquisition Overview
Acquisition Overview Acquisition of 98.47% freehold interest of a shell & core data centre (DC) in Tokyo, Japan Purchase Consideration1 100% Basis: JPY 23.4b (SGD 201.0m) KDCR’s 98.47% Effective Interest2: JPY 23.0b (SGD 197.9m) Valuation 100% Basis: JPY24.0b (SGD 206.1m)1 Net Lettable Area ~190,166
Slide 3: Quality DC Leased to Hyperscaler
Quality DC Leased to Hyperscaler • Located within a primary DC hub in West Tokyo Primary markets Secondary markets 1 • Built to meet the latest seismic safety standards, featuring a base isolation system • 100% leased to a Fortune Global 500 Company (Hyperscaler) • Triple-net (Shell and core) lease;
Slide 4: Key Investment Merits
Key Investment Merits 1 Maiden foray into Japan, the second largest data centre hub in Asia 2 Potential positive rental reversion 3 Enhanced portfolio metrics & income resilience 4 DPU accretive acquisition 4
Slide 5: 1. Maiden Foray Into Japan
1. Maiden Foray Into Japan Japan Tokyo • 3rd largest economy globally with high digital • Tokyo is one of the top DC markets in Asia and penetration globally1,2 • Strategic location with good connectivity, • Strong demand underpinned by increasing cloud reliable power infrastructure and stable adopt
Slide 6: 2. Potential Positive Rental Reversion
2. Potential Positive Rental Reversion • Current rent committed in mid-2010s, remaining lease term of ~7 years, provides opportunity for positive rental reversion and further organic growth • Hyperscale and build-to-suit data centres typically have longer contract terms, with hyperscalers often cont
Slide 7: 3. Enhanced Portfolio Metrics & Income Resilience
3. Enhanced Portfolio Metrics & Income Resilience [Post the Intellicentre Campus transactions which were completed in Jun 2024] % of Rental Income2 • Improved portfolio occupancy from 98.1% to 98.2%; Lengthened portfolio WALE1 from 6.5 10.2% 0.0% 11.9% years to 6.6 years 23.6% Pre - 23.1% Post - acq
Slide 8: 4. DPU Accretive Acquisition
4. DPU Accretive Acquisition • FY 2023 pro forma DPU will increase from 9.383 FY 2023 Pro Forma cents to 9.488 cents, had the proposed transaction Distribution Per Unit (cents)1 occurred on 1 Jan 2023 • Funded by JPY debt, providing natural hedge 9.488 9.383 • Post-acquisition, average cost of debt
Slide 9: Diversified Global Portfolio with Strong Asia Pacific Presence
Diversified Global Portfolio with Strong Asia Pacific Presence Keppel DC REIT Assets under Management $3.8b1 JAPAN • Tokyo Data Centre 1, Tokyo 23 data centres across 10 countries AUM Breakdown (as at 31 Mar 2024)1 Asia Pacific 73.1% Europe 26.9% Singapore 53.2% Germany 6.4% Australia 7.2% Ireland 7
Slide 10: Thank You
Thank You 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