Keppel REIT · SGX:K71U
Keppel REIT — Q1 2017 Earnings Presentation
24 slides from Keppel REIT's earnings presentation, Apr 19, 2017
Slide 1: First Quarter 2017 Financial Results
1Q 2017 First Quarter 2017 Financial Results Financial Results 19 April 2017 19 April 2017
Slide 2: Outline
Outline Key Highlights for 1Q 2017 3 Financial Highlights & Capital Management 4 Portfolio Performance 10 Market Update 16 IMPORTANT NOTICE: The past performance of Keppel REIT is not necessarily indicative of its future performance. Certain statements made in this presentation may not be based on h
Slide 3: Key Highlights for 1Q 2017
Key Highlights for 1Q 2017 (1) $48.1 mil 1.45 cents Distributable Income DPU Financial Highlights & Aggregate leverage at 38.4% All-in interest ICR at Capital 2.57% 4.6x Management No refinancing requirements 75% fixed-rate loans until 2018 84% unencumbered assets Committed 10 leases or High committ
Slide 4: Financial Highlights & Capital Management
Financial Highlights & Capital Management Ocean Financial Centre, Singapore
Slide 5: Financial Performance
Financial Performance ‒ Distribution to Unitholders for 1Q 2017 was 11.6% lower y-o-y due mainly to (i) absence of income from the divested 77 King Street in Sydney in January 2016, (ii) lower income contribution from Bugis Junction Towers, as well as (iii) absence of other gains distribution 1Q 201
Slide 6: Balance Sheet
Balance Sheet As at 31 March 2017 As at 31 December 2016 Total assets $7,550 mil $7,535 mil (1) Borrowings $3,330 mil $3,329 mil Total liabilities $2,632 mil $2,637 mil Unitholders’ funds $4,764 mil $4,747 mil (2) Adjusted NAV per Unit $1.42 $1.43 (1) These included borrowings accounted for at the l
Slide 7: Distribution per Unit
Distribution per Unit Distribution Per Unit (DPU) 1Q 2017 1.45 cents Distribution Timetable Trading on “Ex” Basis Tuesday, 25 April 2017 Books Closure Date Thursday, 27 April 2017 Distribution Payment Date Tuesday, 30 May 2017 7
Slide 8: Prudent Capital Management
Prudent Capital Management As at 31 Mar 2017 As at 31 Dec 2016 Gross Borrowings $3,330 mil $3,329 mil Interest Coverage Ratio 4.6x 4.7x All-in Interest Rate 2.57% 2.51% Weighted Average Term to Maturity 3.2 years 3.5 years Aggregate Leverage 38.4% 38.5% Borrowings on Fixed-Rate (as at 31 Mar 2017) %
Slide 9: Debt Maturity Profile
Debt Maturity Profile ‒ Weighted average term to maturity at 3.2 years as at 31 March 2017 ‒ On 6 April 2017, issued a 7-year $75 million Medium Term Notes (MTN) at a fixed-rate of 3.275% ‒ Proceeds from the issuance will be applied towards refinancing of borrowings No refinancing requirements until
Slide 10: Portfolio Performance
Portfolio Performance David Malcolm Justice Centre, Perth
Slide 11: Continued Proactive Leasing Efforts
Continued Proactive Leasing Efforts Continued tenant-centric approach to retain tenants and maintain high committed portfolio occupancy levels. Committed 10 leases in ~82,700 sf -1% Rent Reversion Leases 1Q 2017 (Attributable ~67,700 sf) Tenant 87% 99.4% Tenant retention rate High Committed Retentio
Slide 12: Portfolio Lease Expiry Profile
Portfolio Lease Expiry Profile Portfolio Lease Expiry Profile (By Attributable NLA) as at 31 March 2017 50.8% 20.9% 15.4% 11.8% 6.9% 6.2% 6.1% 4.2% 4.9% 2.8% 1.6% 1.7% 2017 2018 2019 2020 2021 2022 and beyond Lease Lease expiry expiry asas a%%ofofattributable total portfolio NLA NLA Rent Rentreview
Slide 13: Committed Occupancy Levels
Committed Occupancy Levels Singapore Australia Overall 99.3% 99.7% 99.4% 99.3% 99.8% 100.0% 99.3% 99.7% 100.0% 100.0% 99.4% 95.9% (1) Singapore core CBD occupancy at 95.6% Australia total CBD occupancy at 88.1%(2) Bugis Junction Ocean Financial Marina Bay One Raffles Quay 275 George 8 Exhibition 8 C
Slide 14: Weighted Average Lease Expiry and Top Ten Tenants
Weighted Average Lease Expiry Weighted Average Lease Expiry (WALE)(1) Top Ten Tenants(2) - 43.2% of portfolio NLA - 39.8% of gross rental income Approx. 9 years (till year 2026) DBS Bank 6.2% ANZ 5.6% Western Australian Govt 5.0% Approx. 6 years (till year 2023) BNP Paribas 4.7% Telstra Corporation
Slide 15: Well-Diversified Tenant Base
Well-Diversified Tenant Base(1) TMT, 10% Legal, 10% Number of tenants (2) 314 Energy, Natural resources, Shipping and Marine, 9% Banking, insurance & financial services, 44% Real estate & property services, 7% Accounting & consultancy services, 5% Services, 2% Retail and F&B, 2% Government agency, O
Slide 16: Market Update
Market Update 8 Chifley Square, Sydney
Slide 17: Singapore Office Market
Singapore Office Market ‒ According to CBRE, concerns around supply overhang from the new office projects are dissipating. ‒ Soon-to-be completed developments are now reporting stronger pre-commitments. ‒ Increased leasing activities, with demand from tenants in the banking and finance sector, as we
Slide 18: Market Outlook – Australia
Market Outlook – Australia ‒ Recorded a 2.4% growth for 2016, driven mainly by stronger household consumption. ‒ Growth estimated at between 2.0% and 3.0% for 2017. ‒ Australia’s national CBD office occupancy remained stable at 88.1% as at end-December 2016. ‒ Leasing activities remained strong in t
Slide 19: Additional Information
Additional Information Bugis Junction Towers 19
Slide 20: Portfolio Overview
Portfolio Overview Best-in-Class Assets Largest Portfolio of Assets Under Well-Diversified in Strategic Locations Premium Office Assets Management Tenant Base 11 office towers in 8 quality 314 tenants Premium Grade and Grade A assets 3.3 million sf S$8.4 billion diversified across various in the bus
Slide 21: Premium Grade A Office Portfolio
Premium Grade A Office Portfolio Singapore * 89% Ocean Financial Centre Marina Bay Financial Centre One Raffles Quay Bugis Junction Towers (99.9% interest) (33.3% interest) (33.3% interest) (100% interest) Australia * 11% 8 Chifley Square, 8 Exhibition Street, 275 George Street, David Malcolm Justic
Slide 22: Portfolio Information
Portfolio Information SINGAPORE Ocean Financial Centre Marina Bay Financial Centre (3) One Raffles Quay Bugis Junction Towers Attributable NLA 881,366 sf 1,026,319 sf 443,603 sf 244,579 sf Ownership 99.9% 33.33% 33.33% 100.0% ANZ, DBS Bank, Deutsche Bank, Keppel Land, Principal tenants BNP Paribas,
Slide 23: Keppel REIT Structure
Keppel REIT Structure Keppel Capital Keppel Land The REIT Manager can leverage The REIT Manager can leverage the scale and resources of a larger the Sponsor‘s expertise and Institutional and asset management platform track record in this industry Public Investors 100% ~45% ~55% Management Acting on
Slide 24: Thank You
+) fa REIT Thank You