Keppel REIT · SGX:K71U
Keppel REIT — K-REIT Asia — FY2009 Earnings Presentation
16 slides from Keppel REIT's earnings presentation, Jan 20, 2010
Slide 1: FY2009 Financial Results
FY2009 FINANCIAL RESULTS 20 January 2010 1 Contents Operations Review Portfolio Analysis Capital Management Market Review & Outlook Going Forward 2 1
Slide 2: Highlights
Highlights Net property income 23.2% y-o-y Stronger • FY2009 distributable income up by 21.1% y-o-y Earnings Portfolio with 95% committed occupancy Better Performance • Average portfolio rent 7.2% y-o-y Rights issue raised about $620 million Increased Funding • Debt headroom to about $440m - $650m(1
Slide 3: FY2009 and 4Q 2009 Distributable Income
FY2009 Distributable Income Up 21.1% FY 2009 FY 2008 Change Property Income $62.8m $52.6m $10.2m 19.4% Net Property Income $48.9m $39.7m $9.2m 23.2% Distributable Income to $70.5m $58.2m $12.3m 21.1% Unitholders Distribution Per Unit 5.28cts 4.41cts(1) 0.87cts 19.7% Distribution Yield 4.8%(2) 6.3%(3
Slide 4: Healthy Balance Sheet; Enhanced Asset Portfolio
Healthy Balance Sheet Unitholders’ funds rose to $2 bn after recent rights issue As at 31 Dec 2009 As at 31 Dec 2008 Non-current Assets $2,044.6m $2,038.7m Total Assets $2,631.6m $2,092.3m Borrowings $578.9m $577.1m Total Liabilities $629.0m $606.7m Unitholders’ Funds $2,002.7m $1,485.7m Net Asset V
Slide 5: Awards and Accolades in 2009
Awards and Accolades in 2009 Singapore Corporate Awards 2009 • Best Annual Report Awards (Silver) “REITs and Business Trusts” category • Best Investor Relations Award (Silver) “$300m to less than $1b market capitalisation” category ISO 14000 certification • Obtained for Keppel Towers and GE Tower’s
Slide 6: Diverse Tenant Mix; Blue-chip Tenants
Diverse Tenant Mix 119 tenants in various business sectors Tenant Business Sector by Net Lettable Area as at 31 Dec 2009 Accounting & consultancy services Shipping & marine 3.8% services 7.7% Services 9% Real estate & property Banking, insurance & services 10% financial services 37.6% Pharmaceutical
Slide 7: Portfolio Occupancy Rate vs Market; Long Lease Terms
Portfolio Occupancy Rate vs Market 95% committed occupancy, higher than core CBD of 91.2%(1) As at As at Property 31 Dec 31 Dec 2009 2008 Keppel Towers and GE Tower 91.8% 99.2% Bugis Junction Towers 91.5% 100% Prudential Tower (73.4% of strata area(2)) 95.2% 92.3% One Raffles Quay (1/3 stake) 100% 1
Slide 8: Portfolio Lease Profile; Average Portfolio Rent
Portfolio Lease Profile Lease expiries and rent reviews well staggered from 2010-2013 Lease Profile as a % of Net Lettable Area as at 31 Dec 2009 16.1% 16.1% 16.4% 13.7% 10.9% 10.3% 9.2% 4.6% 2010 2011 2012 2013 Expiring Leases as a Percentage of Portfolio's Total NLA (including 1/3 One Raffles Quay
Slide 9: Portfolio Valuations vs Market Valuations
Portfolio Valuations vs Market Valuations K-REIT Asia’s portfolio valuation: $2.1bn as at 31 Dec 2009 • Portfolio valuation fallen by 5.3% from 31 Dec 2008 As at 31 Dec 2009 As at 31 Dec 2008 Keppel Towers and GE Tower $1,256 psf $1,347 psf Bugis Junction Towers $1,200 psf $1,265 psf Prudential Towe
Slide 10: Successfully Completed Rights Issue; Healthy Financial Position
Successfully Completed Rights Issue Approx. 666.7m Rights Units issued Raised gross proceeds of approximately $620m Enhanced Financial Strengthened balance sheet Flexibility Provide headroom for strategic acquisitions The Rights • Increase debt headroom by about $438.3m-$647.8m(1) Issue Repayment of
Slide 11: Market Review & Outlook
Market Review & Outlook 21 Improvement in Business Prospects GDP growth in line with forecast, signs of economic recovery • 2009 advance GDP estimate of negative 2.1% • Government forecast 3% - 5% GDP growth in 2010 • Leasing interest returns and rate of rental decline slows down Delays in construct
Slide 12: Pace of Decline for Rents Easing; Singapore: Key Business Destination
Pace of Decline for Rents Easing Occupancy and rents to improve as business confidence returns Singapore Office Market Occupancy and Rentals(1) 97.1% 97.6% 97.6% 97.1% 96.2% 95.4% $20 93.1% 91.5% 91.2% 91.2% 100% $18 80% $16 $14 60% $12 18.65 18.80 18.80 17.15 40% $10 16.00 16.10 16.10 14.90 15.00 1
Slide 13: Going Forward
Going Forward 25 Key Thrusts Pursue opportunities for strategic acquisitions in Singapore and Pan-Asia Attract creditworthy new tenants to increase occupancy as well as retain good existing tenants Manage K-REIT Asia’s assets and operating cost structure more effectively Identify potential asset enh
Slide 14: Important Notice
IMPORTANT NOTICE The value of units in K-REIT Asia (“Units”) and the income from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the
Slide 15: Distribution Details; Snapshot of K-REIT Asia
Distribution Details Distribution to Unitholders Distribution Period 1 July to 31 December 2009 Distribution Rate 2.77 cents per unit - Taxable : 2.12 cents per unit - Tax-exempt : 0.65 cents per unit Timetable Ex-dividend Date 26 January 2010 Books Closure Date 28 January 2010 Distribution Payment
Slide 16: Asset Portfolio Information
Asset Portfolio Information Property within/ Keppel Towers and Bugis Junction Prudential Tower One Raffles Quay near Singapore CBD GE Tower Towers Net Lettable Area (sf) 175,663 430,162 247,475 445,120(1) Number of Tenants 21 58 9 31 McGraw-Hill Companies IE Singapore GE Pacific Deutsche Bank The Ex