Keppel REIT · SGX:K71U
Keppel REIT — K-REIT Asia — Q1 2008 Earnings Presentation
12 slides from Keppel REIT's earnings presentation, Apr 21, 2008
Slide 1: 1Q 2008 Financial Results
1Q 2008 FINANCIAL RESULTS 21 April 2008 Contents Financial Results Operations Review & Portfolio Performance Capital Management Market Outlook & Review 2 1
Slide 2: Financial Results
Financial Results Distributable Income Up 165.9% over 1Q 2007 1Q 2008 1Q 2008 1Q 2007 (1) ($'000) Actual Forecast % Chg Actual % Chg Property Income 11,506 11,484 0.2 8,866 29.8 Property Expenses (2,365) (2,487) (4.9) (2,404) (1.6) Net Property Income 9,141 8,997 1.6 6,462 41.5 Investment and Intere
Slide 3: DPU Comparison and Advanced Distribution; Income Contribution
DPU Comparison and Advanced Distribution DPU jumps by 159.9% over 1Q 2007 1Q 2008 DPU of 4.60¢ to be included in the Advanced Distribution pay- out estimated to be 6.45 - 6.50¢ pay-out, unit for 6.50¢ per unit, the period 1 Jan - 7 May 2008 1Q 2008 1Q 2008 1Q 2007 (1) Actual Forecast % Chg Actual %
Slide 4: Balance Sheet; Operations Review & Portfolio Performance
Balance Sheet ($million) 31 Mar 2008 31 Dec 2007 Non-current Assets 2,055.0 2,061.8 Total Assets 2,081.7 2,088.1 (1) Borrowings 1,131.3 1,131.3 Total Liabilities 1,157.0 1,154.3 Unitholders' Funds 924.6 933.8 Net Asset Value Per Unit $3.73 $3.78 (2) Adjusted NAV Per Unit $3.68 $3.73 (1) Borrowings a
Slide 5: Broad Tenant Diversity; Improved Tenant Diversification
Broad Tenant Diversity Total of 121 tenants as at 31 March 2008 Committed occupancy of 99.6% for portfolio as at 31 March 2008 High tenant retention ratio of 93.6% for 1Q 2008 Tenant Tenant Business Business Sector Sector by by Net Net Lettable Lettable Area Area @ @ 31 31 Mar Mar 2008 2008 7.5% 4.3
Slide 6: Portfolio Lease Expiry & Rent Review Profiles
Portfolio Lease Expiry & Rent Review Profiles Positive rent reversions Lease Lease Profile Profile as as aa Percentage Percentage of of Net Net Lettable Lettable Area Area @@ 31 31 Mar Mar 2008 expected due to limited 2008 prime office space 25% 18.7% 18.8% About 42.2% of 20% portfolio’s net lettabl
Slide 7: Capital Management: Rights Issue to Strengthen Balance Sheet
Capital Management Rights Issue to Strengthen Balance Sheet Debt Profile Fixed-rate mortgage loans of $190m: 4.06% p.a. until May 2011 Floating-rate bridging loan of $942m maturing in Sep 2008 Pre- Rights Issue 31 Mar 2008 31 Dec 2007 Gross Borrowings $1,132.1m $1,132.1m (1) Aggregate Leverage 53.9%
Slide 8: Impact of Rights Issue; Timetable for Rights Issue
Impact of Rights Issue Aggregate leverage To be reduced to 27.7% from 53.9% Funding capacity About $679.8m, based on 60% leverage limit(1) Proceeds of about $551.7m from Rights Issue Number of units in issue To increase to 645m from 248.1m Free Float To increase to about $254m from $104m(2) (1) Base
Slide 9: Market Outlook & Review
Market Outlook & Review Office Rents Supported by Economic Growth 1Q 2008 advance GDP growth estimate at 7.2% Continued growth in financial services, construction and manufacturing sectors Prime Prime Office Office Occupancy Occupancy and and Rentals Rentals Government’s 2008 GDP $16 100% forecast a
Slide 10: Office Rents Continue to Rise
Office Rents Continue to Rise Demand for prime office space is expected to continue although pace of rental growth is likely to moderate Monthly prime office rents forecast to grow by about 13% y-o-y by end- 2008(1) No substantial new supply until Marina Bay Financial Centre, Phase I (>50% space alr
Slide 11: Additional Information: Snapshot of K-REIT Asia
Additional Information Snapshot of K-REIT Asia Manager K-REIT Asia Management Limited (1) Property Portfolio 5 quality commercial office assets valued at $2.1 bil Listing and Trading Date 28 Apr 2006 on Singapore Stock Exchange (2) Market Capitalisation $379.6 million (2) Unit Price $1.53 (2) Total
Slide 12: High Quality Portfolio of Assets
High Quality Portfolio of Assets Property Prudential Tower(1) (1) Keppel Towers and GE Tower Bugis Junction Towers One Raffles Quay (2) Net Lettable Area (sm) 10,074 40,002 22,990 41,359 (2) Number of Tenants 13 68 9 31 KBC Bank N.V. GE Pacific IE Singapore ABN Amro McGraw-Hill Principal Tenants Sea