Kore Us Reit · SGX:CMOU
Kore Us Reit — Keppel Pacific Oak US REIT — Investor Presentation (December 2020)
29 slides from Kore Us Reit's investor presentation, Dec 3, 2020
Slide 1: Virtual Lunch with Investment Writers
Keppel Pacific Oak US REIT Virtual Lunch with Investment Writers 3 December 2020
Slide 2: Important Notice / Content Outline
Important Notice The past performance of Keppel Pacific Oak US REIT is not necessarily indicative of its future performance. Certain statements made in this release may not be based on historical information or facts and may be “forward-looking” statements due to a number of risks, uncertainties and
Slide 3: Overview
Overview Tenant lounge The Westpark Portfolio Seattle, Washington
Slide 4: About Keppel Pacific Oak US REIT (KORE)
Focus on Resilient and highly Tax advantaged key growth markets diversified portfolio structure in the US Sponsors ▪ Keppel Capital and KPA US Asset Manager ▪ Pacific Oak Capital Advisors LLC, also advisor Tenant lounge, Bellevue Technology Center, Seattle, Washington for Pacific Oak Strategic Oppor
Slide 5: KORE Strengths
KORE Strengths Strong rental reversion Presence in of 14.1% Stable portfolio first choice 100% committed Trading submarkets Highly unsecured debt Strong average rental occupancy liquidity with in key growth index inclusion diversified reversion across the markets Weighted average portfolio for 9M 20
Slide 6: Delivered Growth Since IPO
Delivered Growth Since IPO Distributable Income (US$ million) Listed on SGX Strengthened foothold 50.8 Portfolio value: US$0.83b in the strong Maitland 38.6 IPO with 11 office buildings submarket 26.0 & business campuses Maitland Promenade 1 19.7 across 7 key growth markets Orlando, Florida 24.8 29.
Slide 7: First Choice Submarkets in Key Growth Markets
First Choice Submarkets in Key Growth Markets SEATTLE – BELLEVUE/REDMOND, Washington ATLANTA, Georgia Overview The Plaza Bellevue Technology The Westpark Powers Ferry Northridge 13 freehold office buildings Buildings Center Portfolio Occupancy: 91.5% Center I & II Occupancy: 78.6% and business campu
Slide 8: Resilient and Highly Diversified Portfolio
Resilient and Highly Diversified Portfolio KORE’s buildings and business campuses in High quality and diverse tenants from the the tech hubs of Seattle, Austin and Denver contribute growing and defensive sectors of technology, ~63% of NPI as well as medical and healthcare Geographic Diversification
Slide 9: Low Tenant Concentration Risk
Low Tenant Concentration Risk Top 10 tenants contribute only 19.7% of CRI, with the largest tenant contributing only 3.4% of CRI As at 30 September 2020 Top 10 Tenants Sector Asset % CRI Ball Aerospace Technology Westmoor Center 3.4 Oculus VR Technology The Westpark Portfolio 2.5 Lear Technology The
Slide 10: Positive Economics in KORE's Key Growth Markets
Positive Economics in KORE’s Key Growth Markets KORE’s key growth markets continue to outperform national average Real GDP Growth Average(1) 2014-2018 Key Growth Markets Average 3.9% United States Average 2.50% 2.5% Gateway Cities Average 2.8% US Average Seattle 5.0% Denver 4.0% Austin Houston 1.2%
Slide 11: Rising Employment in KORE's Key Growth Markets
Rising Employment in KORE’s Key Growth Markets KORE’s key growth markets continue to outperform national average Employment Growth Average(1) 2015-2019 Key Growth Markets Average 2.7% United States Average 1.60% 1.6% Gateway Cities Average 1.7% US Average Seattle 2.8% Denver 2.4% Austin Houston 1.4%
Slide 12: Low State Personal Income Taxes
Low State Personal Income Taxes Individuals are moving to states with zero or low personal income taxes, accelerating population growth State Individual Tax Rates (as at July 1, 2019)(1) Key Growth Markets Average 3.95% United States Average 5.48% 5.48% Gateway Cities Average 8.40% US Average Colora
Slide 13: Low State Corporate Income Taxes
Low State Corporate Income Taxes Companies are moving to states with zero or low corporate taxes, accelerating population growth State Corporate Income Tax Rates (as at July 1, 2019)(1) Key Growth Markets Average 4.12% United States Average 6.25% 6.25% Gateway Cities Average 8.51% US Average Colorad
Slide 14: Expanding Population in KORE's Key Growth Markets
Expanding Population in KORE’s Key Growth Markets KORE’s key growth markets continue to outperform national average Population Growth Average(1) 2015-2019 Key Growth Markets Average 1.8% United States Average 0.6% 0.6% Gateway Cities Average 0.3% US Average Seattle 1.6% Denver 1.5% Austin 2.8% Houst
Slide 15: 3Q 2020 Operational Updates
3Q 2020 Operational Updates Enhanced health and safety protocols across KORE’s properties
Slide 16: 9M 2020 Financial Highlights
Financial Performance • Continued efforts to drive growth and focus on operational excellence have led to year-on-year improvements largely due to: • Contribution from One Twenty Five, which was acquired in November 2019 • New and expansion leases from the tech hubs of Seattle and Denver • Strong ba
Slide 17: 9M 2020 Portfolio Highlights
Income Resilience and Healthy Occupancy • Leased ~49,600 sf of space in 3Q 2020, mainly in Seattle, Houston and Atlanta Expansions New • Total space leased in 9M 2020 was 14.8% 31.4% ~245,400 sf Leases signed • Driven mainly by demand from the tech in 9M 2020 and professional services sector • Portf
Slide 18: Prudent Capital Management
Prudent Capital Management Low aggregate leverage and 100% unsecured loans provide greater financial flexibility As at 30 September 2020 Debt Maturity Profile Total Debt • US$500.7 million of external loans • 100% unsecured 100% of Loans Unsecured 28.9% Available Facilities • US$55.0 million of (1)
Slide 19: Business Continuity and Strengths Through the Pandemic
Business Continuity and Strengths Through the Pandemic ✓ Strong rent collection is testament of KORE’s portfolio and tenant quality • Collected 98.6% of rents in 3Q 2020,and 98.9% for 9M 2020(1) - 100% of rent collected from top 10 tenants • ~1.1% impact on 9M 2020 NPI as a result of rent relief req
Slide 20: Market Outlook
Market Outlook Tenant lounge, 1800 West Loop South Houston, Texas
Slide 21: US Economy at a Glance
US Economy at a Glance % GDP Growth % Labour Force Participation 40 67 30 66 20 65 10 64 0 63 -10 62 -20 61 -30 60 -40 59 1Q 2020 2Q 2020 3Q 2020 2015 2016 2017 2018 2019 Oct-07 Oct-08 Oct-10 Oct-11 Oct-14 Oct-17 Oct-20 Oct-09 Oct-12 Oct-13 Oct-15 Oct-16 Oct-18 Oct-19 Great Hills Plaza, Austin, Texa
Slide 22: Last 12 Months Rent Growth
Last 12 Months Rent Growth Key Growth Markets Average United States Average 0.20% 1.0% 0.2% Gateway Cities Average -0.8% US Average Seattle, Bellevue CBD 1.5% Seattle, Eastside 2.0% Seattle, Redmond 2.2% Denver, Northwest 1.7% Austin, Northwest -0.6% Houston, Galleria/Uptown -1.8% 1.0% Houston, Gall
Slide 23: Projected 12-Month Rent Outlook
Projected 12-Month Rent Outlook KORE’s average in-place rents ~10% below asking rents which will continue to drive growth Key Growth Markets Average United States Average -3.0% -1.6% -3.0% Gateway Cities Average -3.9% US Average Seattle, Bellevue CBD -1.8% Seattle, Eastside -1.4% Seattle, Redmond -1
Slide 24: First Choice Submarkets Outlook
First Choice Submarkets Outlook Property Submarket Last 12M Last 12M Average Last 12M Projected Submarket Vacancy Rate Vacancy Rate Deliveries Absorption Submarket Rent Rental Growth Rental Growth Property (%) (%) (sf’000) (sf’000) (US$ p.a.) (%) (%) Seattle, Bellevue CBD 5.9 5.2 - (114.0) 54.2 1.5
Slide 25: Technology – A Key Driver of US Growth and Employment
Technology – A Key Driver of US Growth and Employment Ranking of Top 10 US Occupation Jobs Added During Decade, 2010-2019 Food Preparation and Serving 2,419,416 QCEW + self-employed* Personal Care and Services 2,179,869 Transportation and Material Moving 1,972,500 2-digit SOCs Tech 1,808,837 Managem
Slide 26: Committed to Deliver Long-Term Value
Strategically-located assets in key growth markets Constituents of: Highly diversified portfolio with tenants from high growth and defensive sectors • FTSE All World Small Cap Index Committed Income resilience supported by low tenant concentration and strong tenant mix to Deliver Long-Term Organic g
Slide 27: Thank You
Thank You For more information, please visit www.koreusreit.com Connect with us on: Westech 360 Austin, Texas
Slide 28: Additional Information
Additional Information Tenant Lounge, Westmoor Center Denver, Colorado
Slide 29: Trust Structure
Trust Structure Tax-efficient structure for holding US properties ▪ No US corporate tax (21%) and US withholding tax (30%) ▪ No Singapore corporate tax (17%) and Singapore withholding tax (10%) ▪ Subject to limited tax(2) Leverage Sponsors' expertise and resources to optimise returns for Unitholders
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