Keppel Reit · SGX:K71U
Keppel Reit — Q3 2020 Earnings Presentation
21 slides from Keppel Reit's earnings presentation, Oct 19, 2020
Slide 1: 3Q 2020 Operational Updates
3Q 2020 Operational Updates 19 October 2020
Slide 2: Outline
Outline Constituent of: ▪ Financial & Portfolio Highlights 3 FTSE ST Large & Mid Cap Index ▪ Market Review 13 ▪ Additional Information 18 FTSE EPRA Nareit Global Developed Index IMPORTANT NOTICE: The past performance of Keppel REIT is not necessarily indicative of its future performance. Certain sta
Slide 3: Financial & Portfolio Highlights
Financial & Portfolio Highlights Marina Bay Financial Centre, Singapore 3
Slide 4: Key Highlights
Key Highlights $47.6m 98.3% 3Q 2020 Distributable income High portfolio committed occupancy from operations(1) as at 30 Sep 2020 Up 12.0% q-o-q; up 4.6% y-o-y $142.4m 7.1 years 9M 2020 Distributable income, Long portfolio weighted average lease expiry including $10.0m capital gains(1) as at 30 Sep 2
Slide 5: Financial Performance
Financial Performance Stable distributable income for 9M 2020 due mainly to: ▪ Contributions from T Tower and 311 Spencer Street, commencement of major Singapore leases, capital gains distribution, and lower borrowing costs ▪ Offset by the impact of the divestment of Bugis Junction Towers in Nov 201
Slide 6: Prudent Capital Management
Prudent Capital Management ▪ All-in interest rate reduced year-on-year to 2.39% p.a. from 2.82% p.a. ▪ Issued $300m(1) of 3.15% perpetual securities to refinance $150m of 4.98% perpetual securities(2) and increase financial flexibility ▪ Approximately $894m of undrawn credit facilities available, in
Slide 7: DPU-Accretive Acquisition of Pinnacle Office Park, Sydney
DPU-Accretive Acquisition of Pinnacle Office Park, Sydney ▪ Acquiring a 100% interest in Pinnacle Office Park, a freehold Grade A commercial property comprising three office buildings near the Macquarie Park Metro Station ▪ Acquisition at a 5.25% initial NPI yield is part of ongoing portfolio optimi
Slide 8: Investment Merits
Investment Merits Click to view property video 1. Portfolio optimisation to improve income resilience and portfolio yield 2. DPU-accretive acquisition that will enhance the REIT’s distributions 3. Opportunity to gain exposure to a key Australian metropolitan office market 4. Expansion into Grade A m
Slide 9: Resilient Portfolio Anchored by Singapore CBD Assets
Resilient Portfolio Anchored by Singapore CBD Assets $8.4 billion portfolio in key business districts of Singapore, Australia and South Korea enhances income diversification and long-term stability T Tower, Seoul 8 Chifley Square, 99.4% Interest Pinnacle Office Sydney South Korea Occupancy: 94.7% Pa
Slide 10: Managing the COVID-19 Situation
Managing the COVID-19 Situation ▪ Keppel REIT’s quality office portfolio and high-quality tenant profile continue to provide income stability and resilience ▪ Portfolio committed occupancy remained high at 98.3%(1). Portfolio weighted average lease expiry was extended to 7.1 years(1); Top 10 tenants
Slide 11: 9M 2020 Leasing Update
9M 2020 Leasing Update Leases Committed Leases Committed New leasing demand and expansions from: by Geography(2) by Type(2) Total Leases Committed Real estate and property services 38.2% Australia, Renewal, ~955,600 sf Singapore, 24.3% 54.1% Technology, media and telecommunications 23.7% (Attributab
Slide 12: Established and Diversified Tenant Base
Established and Diversified Tenant Base ▪ Keppel REIT has a diversified tenant ▪ Top 10 tenants take up 43.3% of NLA base of 342(1) tenants, many of which are and contribute 38.0% of gross rent established blue-chip corporations Top 10 Tenants Tenant Business Sector State of Victoria 11.3% Banking,
Slide 13: Market Review
Market Review 8 Chifley Square, Sydney 13
Slide 14: Singapore Office Market
Singapore Office Market ▪ Average Grade A office rents registered a decrease to $10.70 psf pm in 3Q 2020 while average occupancy in core CBD decreased to 93.9% Grade A Rent and Core CBD Occupancy Demand and Supply 2.1 1.9 1.7 1.3 94.8% 95.8% 93.8% 94.8% 95.8% 95.4% 94.4% 93.9% 0.8 0.8 1.0 0.9 0.9 $1
Slide 15: Australia Office Market
Australia Office Market 94.9% 96.0% 95.2% 94.5% 93.0% 94.0% 97.0% 98.2% 98.2% 92.5% 91.8% 91.3% 89.7% 100% 90.1% 92.1% 87.9% 100% 1,200 1,045 1,200 90% 1,032 1,058 1,028 80% 80% 964 946 Sydney CBD 900 799 60% Melbourne CBD 900 70% 60% 679 503 538 573 575 559 553 50% 600 40% 600 448 40% 406 30% Prime
Slide 16: Seoul Office Market
Seoul Office Market ▪ CBD Grade A occupancy remained stable at 85.1% in 3Q 2020 CBD Grade A Rent and Occupancy 200,000 90.9% 91.3% 100% 87.7% 85.3% 86.9% 85.1% 85.1% 83.1% 160,000 80% 120,000 60% 95,765 95,175 91,851 92,331 91,662 93,578 95,066 97,164 80,000 40% 40,000 20% 0 0% 4Q15 4Q16 4Q17 4Q18 4
Slide 17: Committed to Delivering Stable Income & Sustainable Returns
Committed to Delivering Stable Income & Sustainable Returns Portfolio Optimisation • Portfolio optimisation to improve yield, while maintaining exposure to Singapore CBD Portfolio • Hold quality assets across different markets for improved income stability Optimisation and to provide more long-term
Slide 18: Additional Information
Additional Information One Raffles Quay, Singapore 18
Slide 19: Portfolio Information: Singapore
Portfolio Information: Singapore Marina Bay Ocean Financial Centre One Raffles Quay Financial Centre(4) Attributable NLA 700,504 sf 1,024,238 sf 441,475 sf Ownership 79.9% 33.3% 33.3% BNP Paribas, DBS Bank, Deutsche Bank, Principal tenants(1) ANZ, Standard Chartered Bank, Ernst & Young, Drew & Napie
Slide 20: Portfolio Information: Australia & South Korea
Portfolio Information: Australia & South Korea Pinnacle Office 8 Exhibition David Malcolm 8 Chifley Square, 311 Spencer 275 George Park, Sydney T Tower, Street(3), Justice Centre, Sydney Street, Melbourne Street, Brisbane (Pending Seoul Melbourne Perth completion) Attributable 104,055 sf 244,659 sf
Slide 21: Thank You
Thank You For more information, please visit: www.keppelreit.com Connect with us on: T Tower, Seoul 21