Keppel REIT · SGX:K71U
Keppel REIT — K-REIT Asia — Investor Presentation (December 2009)
26 slides from Keppel REIT's investor presentation, December 2009
Slide 1: Investor Meetings December 2009
INVESTOR MEETINGS December 2009 1
Slide 2: Agenda
Agenda Overview of K-REIT Asia Proactive Capital Management Singapore Office Sector Outlook Appendix 2
Slide 3: Overview of K-REIT Asia
Overview of K-REIT Asia K-REITAaSla
Slide 4: K-REIT Asia at a Glance
K-REIT Asia at a Glance Who we are Singapore-based REIT that invests in commercial real estate assets in Singapore and across Asia Listed on the SGX on 28 Apr 2006 Market cap of S$1.3bn as at 25 Nov 2009 Managed by K-REIT Asia Management Limited(1) Sponsor Sponsored by Keppel Land Limited
Slide 5: Property Portfolio
Property Portfolio Property Portfolio as at 30 Sep 2009(1) Attributable NLA 1.2mm sf Committed occupancy 94.9% Average portfolio rental S$7.91 psf(2) Valuation S$1,970.2mm Number of tenants 110 1. Excluding the Prudential Tower Strata Acquisition 2. S$8.22 if not for the lower income support from OR
Slide 6: Quality Asset Portfolio
Quality Asset Portfolio Prudential Tower Property Keppel Towers and GE Tower 30-storey Grade-A building within CBD Keppel Towers: Prime 27- Located at Raffles Place, within a 5- storey office building minute walk from Raffles Place MRT GE Tower: Prime 13- station storey office building App
Slide 7: Quality Asset Portfolio (cont'd)
Quality Asset Portfolio (cont’d) Bugis Junction Towers One Raffles Quay Prime 15-storey office tower located Grade-A office building along Victoria Street strategically located at Direct underground link to Bugis MRT the heart of the business station and financial district Direct underground
Slide 8: Diverse Blue-chip Tenant Base
Diverse Blue-chip Tenant Base Broad tenant diversity Blue-chip tenant base Tenant Business Sector by NLA Portfolio’s Top 10 Tenants by NLA 110 tenants in various business sectors Top 10 tenants comprise 51.9% of the portfolio Deutsche Bank 8.0% Shipping & Accounting & marine services Consultancy
Slide 9: Strong Portfolio Fundamentals
Strong Portfolio Fundamentals K-REIT Asia’s portfolio occupancy rate is higher Long term leases account for more than 30% of than the market average the portfolio’s NLA Occupancy % Portfolio weighted average lease term to expiry 100% (“WALE”): 5.3 years 100.0% WALE of top 10 tenants: 6.8 years 9
Slide 10: Strong Sponsorship by Keppel Land
Strong Sponsorship by Keppel Land Keppel Land’s extensive network, strong development expertise and well-established tenant relationships provide a strong platform for K-REIT Asia to further its pan-Asian REIT ambition Keppel Land Selected Portfolio of Commercial Properties With history dating bac
Slide 11: Key Strengths
Key Strengths Prime assets Portfolio of four prime grade-A commercial office properties with blue-chip Strategically located in and around Singapore’s CBD tenants Diverse blue-chip tenant base with long term leases Above-market portfolio occupancy of 94.9% as at 30 Sep 2009 Stable and Stab
Slide 12: Proactive Capital Management
Proactive Capital Management 12
Slide 13: Successful Completion of the Rights Issue
Successful Completion the Rights Issue Underwritten renounceable 1-for 1 Rights Issue Offer Approx. 666.7m Rights Units issued at S$0.93 per Rights Unit Structure Raised gross proceeds of approximately S$620 million The 110.6% subscribed Rights Issue Strengthen balance sheet Use of Proceed
Slide 14: Provide Greater Financial Flexibility
Provide Greater Financial Flexibility Low aggregate leverage post-rights issue As at 30 Sep 2009 40% 33.0% 29.5% 30% 20% 10% 9.1% 0% (1) (1) Actual Pro forma pre-rights issue Pro forma post-rights issue Additional funding capacity of up to S$648 million allowing K-REIT Asia to increase its assets un
Slide 15: Position K-REIT Asia for Acquisition Growth Across Asia
Position K-REIT Asia for Acquisition Growth Across Asia K-REIT Asia’s assets under management has more than tripled since listing in April 2006 S$ million 2,100 2,095 1,750 1,400 1,050 700 ► Dec 2007 – acquired one-third interest in ORQ 631 ► Sep 2009 – announced the Prudential Tower 350 Strata Acqu
Slide 16: Fund Asset Enhancement Initiatives to Maximise Rental Income
Fund Asset Enhancement Initiatives to Maximise Rental Income Proposed asset enhancement initiatives at Keppel Towers and GE Tower Proposed conversion of existing 4th storey roof garden to an office podium Alteration and renovation of reception lobbies, lift car interiors, washrooms, pantries, et
Slide 17: Long-term Proactive Capital Management
Long-term Proactive Capital Management Track OIS The points Manager adopts a proactive and prudent capital management strategy Maintain strong capital position ► Established S$1.0bn MTN Programme in Jan 2009 ► Additional source of funding and added flexibility to manage capital requirements Pr
Slide 18: In Line with the Manager's Strategies
In Line with the Manager’s Strategies… Key Strategies Track Record Current Initiatives Portfolio occupancy consistently Planned AEIs at Keppel and GE Active asset above market levels Towers to improve operating management Steady growth of average efficiency and maximise rental portfolio rent i
Slide 19: Singapore Office Sector Outlook
Singapore Office Sector Outlook 19
Slide 20: Improvement in Economic Prospects
Improvement in Economic Prospects General consensus that recovery should kick in earlier in 2010 instead of 2011 as previously expected Singapore 2nd consecutive quarter-on-quarter expansion in GDP economy Government forecast of 3 – 5% GDP growth in 2010 emerged from 2009 GDP growth forecast o
Slide 21: Decline in Rents Continues to Ease in 3Q 2009
Decline in Rents Continues to Ease in 3Q 2009 Rate of rental decline continues to moderate for Singapore’s grade A and prime office properties 20.2% Grade A Rental 18.0% 17.5% Decline 13.3% S$ psf Dec-08 Mar-09 Jun-09 Sep-09 97.1% 97.6% 97.6% 97.1% 96.2% 95.4% 93.1% 91.5% 91.2% 18.7 18.8 18.8 17.2 1
Slide 22: Singapore: Key Business Destination
Singapore: Key Business Destination Singapore remains a key investment market in Asia World’s easiest place to do business (“Doing Business 2009” ranking by World Bank) for 4th consecutive year 4th best financial centre globally in 2009, up from 10th in 2008 (ranking by World Economic Forum) F
Slide 23: Important Notice
Important Notice The information contained in this presentation is for information purposes only. A circular dated 3 October 2009 (the “Unitholders’ Circular”) setting out the details of the Rights Issue and the Trust Deed Supplement to Facilitate Equity Fund Raisings (each as defined herein) has be
Slide 24: Appendix
Appendix K-REITAaSla
Slide 25: Prudent Approach to Portfolio Valuation
Prudent Approach to Portfolio Valuation Change in portfolio valuation of ↓6.3% 31 Dec 08 29 Sep 09 Change Total Portfolio Value (S$ million) 2,102 (1) 1,970 (6.3%) 1,400 Total Value psf (S$) 1,707 (1) 1,600 2,500 1,200 2,213 2,066 2,100 2,000 1,000 1,850 (S$ million) 800 1,500 1,265 1,347 (S$) 1,250
Slide 26: Key Portfolio Statistics
Key Portfolio Statistics Keppel Towers and Bugis Junction As at 30 Sep 2009 Prudential Tower(1) One Raffles Quay GE Tower Towers Attributable NLA (sf) 108,439 430,162 247,475 445,185(3) Ownership 44.4% 100.0% 100.0% 33.3% Number of tenants 11 60 8 31 McGraw-Hill GE Pacific IE Singapore Companies Sea