Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — Investor Presentation (February 2022)
27 slides from Keppel Dc Reit's investor presentation, Feb 11, 2022
Slide 1: Investor Presentation
Investor Presentation February 2022
Slide 2: Outline
Outline Overview 3 FY 2021 Financial & Portfolio Updates 6 Outlook 17 Additional Information 21 Constituent of: Awards and Certifications: FTSE Straits FTSE EPRA Nareit Global MSCI Singapore GPR 250 Times Index Developed Index Small Cap Index Index Series 2
Slide 3: Overview
Overview CGS] DC REIT 3 f
Slide 4: Focused on Growing Data Centre Portfolio
Focused on Growing Data Centre Portfolio ASIA PACIFIC SINGAPORE • DC1 • Keppel DC Singapore 1 • Keppel DC Singapore 2 • Keppel DC Singapore 3 Keppel DC REIT • Keppel DC Singapore 4 • Keppel DC Singapore 5 Assets under Management MALAYSIA • Basis Bay Data Centre, $3.5b1 Cyberjaya AUSTRALIA • Gore Hil
Slide 5: Value Creation with DPU Accretive Investments
Value Creation with DPU Accretive Investments Strengthening foothold Maiden acquisition in China in Europe ▪ Strategic acquisition of Guangdong ▪ Strategic acquisitions of Data Centre for RMB635.9m to tap London Data Centre1 in the into China’s growing digital economy UK for £57.0m and ▪ Guangdong i
Slide 6: FY 2021 Financial & Portfolio Updates
FY 2021 Financial & Portfolio Updates 6
Slide 7: FY 2021 Key Highlights
FY 2021 Key Highlights Sustainable Financial Resilient & Diversified Strong Balance Growth Portfolio Sheet Distributable Income Growth in AUM Aggregate Leverage3 $171.6m $3.4b1 34.6% for FY 2021, a 9.4% y-o-y increase, due mainly to as at 31 Dec 2021, representing a 13.3% growth from a as at 31 Dec
Slide 8: Delivering Stable Returns to Unitholders
Delivering Stable Returns to Unitholders Distribution Per Unit (cents)1 9.851 2H 2H +/(-) FY FY +/(-) +7.4% ($’000) 9.170 2021 2020 % 2021 2020 % Distributable Income 87,350 81,935 6.6 171,606 156,915 9.4 Comprising: FY 2020 FY 2021 Gross Revenue 135,918 141,621 (4.0) 271,065 265,571 2.1 Distributio
Slide 9: Maintaining a Strong Balance Sheet
Maintaining a Strong Balance Sheet As at As at +/(-) ($’000) 31 Dec 2021 31 Dec 2020 % Investment Properties 3,401,436 3,005,038 +13.2 Property under development - 24,676 (100.0) Total Assets 3,780,150 3,349,828 +12.8 Gross Borrowings1 1,289,580 1,165,756 +10.6 Total Liabilities 1,444,474 1,367,586
Slide 10: Healthy Leverage & Well-diversified Debt Maturity Profile
Healthy Leverage & Well-diversified Debt Maturity Profile ▪ In 4Q 2021, Keppel DC REIT: – Extended loans of S$275m by 2 years until 2027; and GBP 11.2m for 5 years until 2027 – Obtained 1 revolving credit facility of S$150m for 6 years and 1 amortising loan of RMB400m for 5 years Debt Maturity Profi
Slide 11: Prudent Capital Management
Prudent Capital Management ▪ Managing interest rate exposure: 74% of Debt currency breakdown Investment properties breakdown1 loans hedged through floating-to-fixed (as at 31 Dec 2021) (as at 31 Dec 2021) interest rate swaps, with the remaining Italy unhedged borrowings in EUR Ireland 1.8% EUR 8.6%
Slide 12: Proactive Portfolio Management
Guangdong Data Centre Proactive Portfolio Management ▪ Strengthened portfolio with the completion of the acquisition of Guangdong Data Centre and the investment in bonds and preference shares issued by M1 Network Private Limited ▪ Continued leasing momentum in 4Q 2021 with healthy lease renewals ▪ P
Slide 13: Diversified and Resilient Portfolio
Diversified and Resilient Portfolio Rental Income by Trade Sector Rental Income by Lease Type Top 10 Clients (for the month of Dec 2021)1 (for the month of Dec 2021)1 (for the month of Dec 2021)1 Internet Internet Enterprise 37.0% Corporate Enterprise One of the largest tech companies globally 45.7%
Slide 14: Commitment to ESG Excellence
Commitment to ESG Excellence Environmental Stewardship ▪ Emissions To progressively reduce our combined Scope 1 and Scope 2 emissions with an aim to halve this by 2030 from a 2019 baseline ▪ Energy – To introduce renewable energy1 (RE) to at least 50% of the colocation assets by 2030, as well as enc
Slide 15: Commitment to ESG Excellence (Cont'd)
Commitment to ESG Excellence (Cont’d) Responsible Business ▪ Corporate Governance Uphold strong corporate governance, robust risk management, as well as timely and transparent communications with stakeholders ▪ Cybersecurity and Data Privacy Uphold high standards of cybersecurity and data protection
Slide 16: Commitment to ESG Excellence (Cont'd)
Commitment to ESG Excellence (Cont’d) People & Community ▪ Diversity and Inclusion To achieve 25% female directors on the Board by 2025 ▪ Employee Health and Wellbeing Provide a safe and healthy environment for all stakeholders, adopting the Keppel Zero Fatality Strategy to achieve a zero fatality w
Slide 17: Outlook
Outlook CGS] DC REIT 171 ff
Slide 18: Outlook for Data Centres Remains Optimistic
Outlook for Data Centres Remains Optimistic Data centre systems spending in 2022 is forecast to reach US$207b, a 5.8% increase year-on-year1 Hyperscalers continue to aggressively expand their operations, with rapid growth of both enterprise and consumer-oriented cloud markets2 Expect strong demand f
Slide 19: Well-Positioned for Growth
Proxy to Fast-Growing Tech Sector Well-Positioned for Resilient asset class with highly defensive and Growth long-term sustainable income stream ▪ Diversified portfolio of assets globally, with a large and stable client base The Manager will continue Strong operational expertise and proven track rec
Slide 20: 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
Slide 21: Additional Information
Additional Information CGy-T] DC REIT 2
Slide 22: Portfolio Overview (as at 31 Dec 2021)
Portfolio Overview (as at 31 Dec 2021) Attributable No. of Occupancy rate WALE Location Interest lettable area Valuation2 Lease type Land lease title clients1 (%) (years)3 (sq ft) Asia Pacific Leasehold Keppel lease / (Expiring 30 Sep 2025, Keppel DC Singapore 1 Singapore 100% 109,721 25 93.1 S$336.
Slide 23: Portfolio Overview (as at 31 Dec 2021)
Portfolio Overview (as at 31 Dec 2021) Attributable lettable No. of Occupancy Location Interest Valuation2 Lease type WALE (years)3 Land lease title area (sq ft) clients1 rate (%) Europe Cardiff, £26.0m Triple-net Cardiff Data Centre 100% 79,439 1 100.0 9.5 Freehold United Kingdom (S$47.4m) (Shell &
Slide 24: Portfolio Valuation
Portfolio Valuation 31 Dec 20211 31 Dec 2020 Income Capitalisation Approach Capitalisation Rate 4.40% - 9.31% 4.95% - 10.12% - Asia Pacific 5.25% - 8.75% 5.25% - 10.12% - Europe 4.40% - 9.31% 4.95% - 8.26% 1. Excludes iseek Data Centre which was divested in 2021 and includes Eindhoven Campus and Gua
Slide 25: Overview of Lease Arrangements
Overview of Lease Arrangements Responsibilities of Owner Maintenan Lease Insurance Asia Pacific Property Description Building Refresh Arrangement Capex Opex Tax ce Keppel lease1 / ◼ Client: Pays rent Keppel DC Singapore 1 ✓ ✓ ✓ ✓ Colocation2 ◼ Owner: Bears all expenses; responsible for facilities ma
Slide 26: Overview of Lease Arrangements
Overview of Lease Arrangements Responsibilities of Owner Maintenance Lease Europe Description Insurance Arrangement Property Building Refresh Capex Opex Tax Cardiff Data Centre Triple-net lease ◼ Client: Pays rent and all outgoings; responsible for facilities management - - - - GV7 Data Centre Tripl
Slide 27: Keppel DC REIT Structure
Keppel DC REIT Structure as (at 31 Dec 2021) Keppel Keppel Capital Telecommunications & Transportation Institutional and The REIT Manager can leverage The REIT Manager can leverage Public Investors the scale and resources of a the Sponsor‘s expertise and track larger asset management record in this
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