Kore Us REIT · SGX:CMOU
Kore Us REIT — Keppel-KBS US REIT — 1Q 2018 Earnings Presentation
43 slides from Kore Us REIT's earnings presentation, 2018
Slide 1: 1Q 2018 Financial Results
1Q 2018 Financial Results For the period 9 November 2017 to 31 March 2018
Slide 2: Contents / Important Notice
Contents Key Highlights 2 Portfolio Review 5 Market Outlook 9 Financial Performance & Capital Management 12 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 on historical info
Slide 3: Key Highlights
Key Highlights The Plaza Buildings, Seattle, Washington
Slide 4: Key Highlights
Key Highlights Available distribution per Unit (DPU) of 2.32 US cents, 0.4% above IPO forecast $ $ Income Available for Distribution Aggregate Leverage Portfolio Committed Occupancy US$14.6 million 33.6% 89.8% Annualised Distribution Yield Interest Coverage Portfolio WALE1 6.73% 6.1x 3.7 years Based
Slide 5: Distinctive portfolio with quality assets
Distinctive portfolio with quality assets Well-positioned to capture opportunities in key growth markets The Plaza Buildings Westmoor Center Westech 360 Powers Ferry Market: Seattle Market: Denver Market: Austin Market: Atlanta Valuation: US$243.9mn Valuation: US$121.4mn Valuation: US$43.8mn Valuati
Slide 6: Portfolio Review
Portfolio Review Great Hills Plaza, Austin, Texas
Slide 7: Portfolio Overview
Portfolio Overview Key Statistics as at 31 Mar 2018 No. of Assets 11 Total NLA (sf) 3,225,739 Land Tenure 100% Freehold The Plaza Buildings, Seattle WALE by NLA 3.7 Occupancy1 89.8% No. of Tenants 333 Committed Occupancy Rates(1) (as at 1Q 2018) 99.5% 96.5% 99.0% 92.3% 89.4% 95.8% 94.9% 95.7% 89.3%
Slide 8: Diversified tenant base with low tenant concentration
Diversified tenant base with low tenant concentration Top 10 tenants(1) Tenant Sector Asset % Portfolio tenant base Ball Aerospace & composition(1) Technology Westmoor Center 3.9% Tech Corp Zimmer Biomet Spine, Inc. Technology Westmoor Center 3.0% Others Professional Media and 9.7% Services Informat
Slide 9: Proactive lease management
Proactive lease management 32 leases signed since IPO, amounting to 252,000 sf of leasing activity as at 1Q 2018 New leases were signed with reputable tenants from diverse sectors, primarily from: o Technology, Financial Services and Manufacturing sectors Generally 2.0% to 4.0% rental escalati
Slide 10: Market Outlook
Market Outlook Westech 360, Austin, Texas
Slide 11: Attractive US office real estate fundamentals
Attractive US office real estate fundamentals 12-month national average occupancy of 89.7% 12-month net absorption was 54.6 million sf Deliveries were 68.4 million sf, with the majority of supply in gateway cities such as New York, the Bay Area and Chicago Projected rent growth for 2018 is 1
Slide 12: Overview of portfolio markets
Overview of portfolio markets Favourable dynamics in key growth cities Westech 360 & Powers Ferry Landing East The Plaza Buildings Westmoor Center Great Hills Plaza Sub-market snapshot: Sub-market snapshot: Sub-market snapshot: Sub-market snapshot: Avg. vacancy rate: 6.4% Avg. vacancy rate:9.9%
Slide 13: Financial Performance & Capital Management
Financial Performance & Capital Management Bellevue Technology Centre, Seattle, Washington
Slide 14: Distributable Income
Distributable Income DPU outperformed forecast by 0.4% 9 Nov 2017 to 31 March 2018 Actual1 Forecast2 +/(-) % (U$’000) (U$’000) Distributable Income 14,616 14,607 +0.1% Comprising: Gross Revenue 36,102 35,519 +1.6% Property Expenses (13,774) (14,298) -3.7% Net Property Income 22,328 21,221 +5.2% DP
Slide 15: Balance Sheet
Balance Sheet Maintained healthy balance sheet As at 31 Mar 2018 (US$’000) Total Assets 861,051 Gross Borrowings 286,931 Total Liabilities 308,768 Unitholders’ Funds 552,283 Units in Issue (‘000) 628,565 Net Asset Value per Unit (US $) 0.88 Unit Price (US $) 0.88 14
Slide 16: Capital Management
Capital Management As at 31 March 2018 Debt Maturity Profile US$289.4m of external loans 50.0% 50.0% Total debt (unencumbered) Available US$50m of undrawn revolving facilities credit facility Aggregate 2018 2019 2020 2021 2022 33.6% leverage (1) Interest Rate Exposure Average 3.4% per annum
Slide 17: Sustainable distributions and total returns
Sustainable distributions and total returns Exposure to attractive Economic growth led by consumer and 1 US economic fundamentals business spending, boosted by recent tax cuts Positive leasing Strong leasing capabilities, as shown in the 2 momentum new lease commitment at Westmoor Center Favoura
Slide 18: Thank you
Thank you KBS US REIT 17
Slide 19: Additional Information
Additional Information Great Hills Plaza, Austin, Texas
Slide 20: Structure of Keppel-KBS US REIT
Structure of Keppel-KBS US REIT Sponsors: KC relevant KPA relevant Unitholders Keppel Capital entity(1) entity(1) International Pte. Ltd. (“KCI”) 7.0%(2) 7.0%(2) Tax-efficient structure for holding Keppel US properties Management Agreement Trustee Management Services Fees Keppel-KBS US REIT Keppel-K
Slide 21: Portfolio overview
Portfolio overview Committed WALE Valuation Property City Type Location NLA (sf) occupancy(1) (in years)(1) (US$mn)(2) The Plaza Seattle Class A CBD Bellevue CBD, one of the most active 490,994 89.3% 2.6 243.9 Buildings leasing sub-market in Seattle Bellevue Seattle Class A & B B
Slide 22: The Plaza Buildings, Seattle
The Plaza Buildings, Seattle Class A office buildings in the heart of Bellevue CBD Property overview Type Two Class A office buildings with a freestanding garage Completion date 1978 – 1983 Refurbishment date 2014 – 2015 NLA (sf) 490,994 Committed occupancy(1) 89.3% WALE by NLA 2.6 years Notable ten
Slide 23: The Plaza Buildings, Seattle
The Plaza Buildings, Seattle Class A office buildings in the heart of Bellevue CBD Location map Market dynamics and outlook Bellevue is the fifth largest city in the state of Washington, and the third largest in the Seattle metropolitan area Seattle, Washington Bellevue CBD is one of the fast gr
Slide 24: Bellevue Technology Center, Seattle
Bellevue Technology Center, Seattle Modern office campus with diverse functionalities Property overview Type Class A and B office buildings with an underground parking garage Completion date 1973, 1980 and 2000 Refurbishment date 2013 – 2014 NLA (sf) 330,508 Committed occupancy(2) 92.3% WALE by NLA
Slide 25: Bellevue Technology Center, Seattle
Bellevue Technology Center, Seattle Modern office campus with diverse functionalities Location map Market dynamics and outlook Seattle’s eastside suburban office market has historically been among the most active in the region due to its relatively large inventory of office space Seattle, Washingt
Slide 26: Iron Point, Sacramento
Iron Point, Sacramento Centrally located high-quality office asset in Folsom Property overview Type Class A business campus Completion date 1999 and 2001 Refurbishment date 2013 - 2016 NLA (sf) 211,887 Committed occupancy(2) 99.5% WALE by NLA 2.7 years Notable tenants Sierra Pacific Mortgage Co
Slide 27: Iron Point, Sacramento
Iron Point, Sacramento Centrally located high-quality office asset in Folsom Location map Market dynamics and outlook Sacramento is the state capital Region offers pro-business climate, an educated workforce from the research and educational institutions, relatively low housing costs and a stron
Slide 28: Westmoor Center, Denver
Westmoor Center, Denver Class A office campus between downtown Denver and Boulder Property overview Type Class A business campus Completion date 1999 – 2000 Refurbishment date 2014 – 2016 NLA (sf) 607,755 Committed occupancy(2) 80.3% WALE by NLA 5.4 years Notable tenants Ball Aerospace & Tech Corp
Slide 29: Westmoor Center, Denver
Westmoor Center, Denver Class A office campus between downtown Denver and Boulder Location map Market dynamics and outlook The Denver area’s highly educated workforce and slightly below average business costs continue to attract employers and support job growth Significant residential base that
Slide 30: Great Hills Plaza, Austin
Great Hills Plaza, Austin Class B office building with excellent access to major thoroughfares Property overview Type Three-storey Class B office building Completion date 1985 Refurbishment date 2014 NLA (sf) 139,252 Committed occupancy(2) 96.5% WALE by NLA 5.1 years Notable tenants E20pen, LLC
Slide 31: Great Hills Plaza, Austin
Great Hills Plaza, Austin Class B office building with excellent access to major thoroughfares Location map Market dynamics and outlook Austin is the state capital and one of the biggest tech hubs in the US; an attractive destination for growing businesses given access to capital and a highly educ
Slide 32: Westech 360, Austin
Westech 360, Austin Office park with excellent access to major thoroughfares Property overview Type Office park with four Class B buildings Completion date 1986 Refurbishment date 2014 NLA (sf) 173,058 Committed occupancy(2) 95.8% WALE by NLA 2.7 years Notable tenants Maxpoint Interactive, Inc D
Slide 33: Westech 360, Austin
Westech 360, Austin Office park with excellent access to major thoroughfares Location map Market dynamics and outlook Austin is the state capital and one of the biggest tech hubs in the US; an attractive destination for growing businesses given access to capital and a highly educated workforce ami
Slide 34: 1800 West Loop South, Houston
1800 West Loop South, Houston Class A office building in Uptown Houston Property overview Type Class A office building with 12 storeys of onsite parking Completion date 1982 Refurbishment date 2013-2014 NLA (sf) 398,490 Committed occupancy(2) 82.8% WALE by NLA 2.7 years Notable tenants Health Care
Slide 35: 1800 West Loop South, Houston
1800 West Loop South, Houston Class A office building in Uptown Houston Location map Market dynamics and outlook Located in Uptown Houston, among the largest suburban business districts in the U.S. Houston is second only to New York City in terms of number of Fortune 500 companies with headquarter
Slide 36: West Loop I & II, Houston
West Loop I & II, Houston Class A office building located in an affluent suburb in Houston Property overview Type Two Class A office buildings targeting healthcare and professional services tenants Completion date 1980 Refurbishment date 2013-2014 NLA (sf) 313,873 Committed occupancy(2) 89.4% WALE b
Slide 37: West Loop I & II, Houston
West Loop I & II, Houston Class A office building located in an affluent suburb in Houston Location map Market dynamics and outlook The West Loop is Houston’s largest suburban (non-CBD) office sub-market The property is located within the Bellaire area which has a significant residential househo
Slide 38: Powers Ferry, Atlanta
Powers Ferry, Atlanta Multi-tenanted office building located within a well-established sub-market Property overview Type Class B office building Completion date 1985 Refurbishment date 2013 NLA (sf) 146,352 Committed occupancy(2) 94.9% WALE by NLA 3.4 years Notable tenants LL Global Inc Georgia
Slide 39: Powers Ferry, Atlanta
Powers Ferry, Atlanta Multi-tenanted office building located within a well-established sub-market Location map Market dynamics and outlook Situated in the Cumberland/I-75 sub-market of the Atlanta office market The sub-market has been outperforming the greater Atlanta market with recent developm
Slide 40: Northridge Center I & II, Atlanta
Northridge Center I & II, Atlanta Office park buildings in the Central Perimeter Property overview Type Two Class B office buildings Completion date 1985 – 1989 Refurbishment date 2013 NLA (sf) 186,580 Committed occupancy(2) 95.7% WALE by NLA 3.1 years Notable tenants Allstar Financial Group Inc
Slide 41: Northridge Center I & II, Atlanta
Northridge Center I & II, Atlanta Office park buildings in the Central Perimeter Location map Market dynamics and outlook Atlanta is home to numerous Fortune 500 companies within Atlanta; ranks 3rd in no. of Fortune 500 company HQs, behind NY and Houston Heightened office demand driven by large
Slide 42: Maitland Promenade II, Orlando
Maitland Promenade II, Orlando Modern Class A building located in Orlando’s largest sub-market Property overview Type Class A office building with a three-storey garage Completion date 2001 Refurbishment date 2013 – 2016 NLA (sf) 226,990 Committed occupancy(2) 99.0% WALE by NLA 4.4 years Notable ten
Slide 43: Maitland Promenade II, Orlando
Maitland Promenade II, Orlando Modern Class A building located in Orlando’s largest sub-market Location map Market dynamics and outlook Maitland is one of the largest office sub-markets in Orlando, which is dominated by technical, finance and insurance companies Robust job growth and in-migratio