Keppel Reit · SGX:K71U
Keppel Reit — 9M 2022 Earnings Presentation
26 slides from Keppel Reit's earnings presentation, Oct 25, 2022
Slide 1: 3Q 2022 Key Business and Operational Updates
3Q 2022 Key Business and Operational Updates 25 October 2022
Slide 2: Outline
Outline Constituent of: ▪ 9M 2022 Key Highlights 3 ▪ Financial & Portfolio Highlights 7 FTSE ST Large & FTSE4GOOD Mid Cap Index Developed & ▪ Market Review 17 FTSE4GOOD ASEAN 5 Index ▪ Additional Information 21 FTSE EPRA Nareit Global Developed Index IMPORTANT NOTICE: The past performance of Keppel
Slide 3: 9M 2022 Key Highlights
9M 2022 Key Highlights To reward the unwavering support of Keppel REIT’s Unitholders, an additional $100 million from accumulated capital gains will be distributed over the next five years leading up to its 20th anniversary in 2026 Pan-Asian Portfolio with Higher Distributable Income Improved Portfo
Slide 4: Committed to Delivering Stable Income & Sustainable Returns
Committed to Delivering Stable Income & Sustainable Returns Portfolio Optimisation • Improve yield by enhancing Keppel REIT’s portfolio of quality assets through strategic acquisitions and divestments Portfolio Optimisation • Provide income stability and long-term capital appreciation of portfolio,
Slide 5: Well-Executed Portfolio Optimisation Strategy
Well-Executed Portfolio Optimisation Strategy Expanded footprint to Australia: Expanded footprint 77 King Street (100%), Sydney, and to South Korea: 275 George Street (50%), Brisbane T Tower (99.4%), Seoul Listed on SGX Acquired $9.0b AUM Acquired >$600m AUM - David Malcolm Acquired Pinnacle Office
Slide 6: To Distribute an Additional $100m Over the Next Five Years
To Distribute an Additional $100m Over the Next Five Years to Celebrate Keppel REIT’s 20th Listing Anniversary in 2026 • Accumulated capital gains through successful execution of portfolio optimisation since listing in 2006 • To celebrate Keppel REIT’s 20th anniversary in 2026, we will distribute $1
Slide 7: Financial & Portfolio Highlights
Financial & Portfolio Highlights Pinnacle Office Park, Sydney 7
Slide 8: 9M 2022 Distributable Income Increased 3.4%
9M 2022 Distributable Income Increased 3.4% ▪ 9M 2022 Distributable Income increased 3.4% year-on-year, mainly due to the acquisition of Keppel Bay Tower in May 2021 and adjustments of income tax expense for previous years, partially offset by the divestment of 275 George Street in July 2021 and low
Slide 9: Prudent Capital Management
Prudent Capital Management As at 30 Sep 2022 Interest Coverage Ratio(2) 3.6x ▪ Aggregate leverage remained healthy at 38.4% All-in Interest Rate 2.13% p.a. ▪ 9M 2022 all-in interest rate was 2.13% p.a. Aggregate Leverage 38.4% ▪ 72% of the borrowings are on fixed rates Weighted Average Term to Matur
Slide 10: Diversified Pan-Asian Portfolio of Prime Commercial Assets
Diversified Pan-Asian Portfolio of Prime Commercial Assets $9.0b portfolio of prime quality assets anchored across different markets enhance income stability and long-term growth opportunities T Tower, Seoul 8 Chifley Square, 99.4% Interest Pinnacle Office Park, Occupancy: 98.6% Sydney Sydney Ocean
Slide 11: 9M 2022 Portfolio Performance
9M 2022 Portfolio Performance Leases Committed Leases Committed As at 30 Sep 2022: by Geography(1) by Type(1) Singapore, 79.6% Australia, 9.3% Renewal, New, 96.8% 67.2% 32.8% Portfolio committed occupancy South Korea, 11.1% 10.5 years New leasing demand and expansions from: Top 10 tenants’ WALE Tech
Slide 12: Well-spread Lease Expiry Profile
Well-spread Lease Expiry Profile ▪ Average signing rent for Singapore office leases(1) concluded in 9M 2022 was $11.47 psf pm, reflecting robust demand for prime office space ▪ Average expiring rents of Singapore office leases(2)(psf pm): $10.06 in 2022, $11.35 in 2023 and $10.97 in 2024 Lease Expir
Slide 13: Established and Diversified Tenant Base
Established and Diversified Tenant Base ▪ Keppel REIT has a diversified tenant ▪ Top 10 tenants take up 40.5% of NLA base of 411(1) tenants, many of which are and contribute 35.2% of gross rent established blue-chip corporations Top 10 Tenants Tenant Business Sector % State of Victoria 10.0% Banking
Slide 14: Blue & William on Track to Complete by Mid-2023
Blue & William on Track to Complete by Mid-2023 ▪ Blue & William reached structural completion in Sep 2022 and has entered the next phase of development with installation of the distinctive terracotta façade ▪ Development on track to complete by mid-2023 ▪ In advanced negotiations with a few prospec
Slide 15: Sustainable and Future Ready Portfolio with ESG Excellence
Health-Safety Excellence Sustainable and Future Ready Portfolio • Marina Bay Financial Centre with ESG Excellence Tenants at 8 Exhibition Street were and One Raffles Quay achieved WELL Health–Safety invited to join in the celebrations Rating in Sep 2022, all Keppel during NAIDOC (National REIT’s Sin
Slide 16: Sustainable and Future Ready Portfolio with ESG Excellence
Sustainable and Future Ready Portfolio with ESG Excellence Keppel REIT’s ESG Targets ESG Benchmarks Environmental Stewardship ▪ MSCI ESG – ‘A’ Rating ▪ ISS ESG Corporate Rating – Prime status ▪ Halve Scope 1 and 2 emissions by 2030 from 2019 levels ▪ Global Real Estate Sustainability Benchmark (GRES
Slide 17: Market Review
Market Review Marina Bay Financial Centre, Singapore 17
Slide 18: Singapore Office Market
Singapore Office Market ▪ Average core CBD Grade A office rents increased to $11.60 psf pm and average occupancy in core CBD increased to 94.8% in 3Q 2022 Grade A Rent and Core CBD Occupancy Demand and Supply (million sf) 2.1 1.9 1.7 95.8% 93.8% 94.8% 95.8% 93.8% 93.3% 93.8% 93.6% 94.8% 1.3 $15 100%
Slide 19: Australia Office Market
Australia Office Market 95.2% 91.3% 94.9% 96.0% 87.5% 88.6% 88.4% 87.1% 86.5% 100% 90.8% 92.1% 90.4% 89.9% 82.7% 82.4% 82.6% 100% 1,200 75.5% 79.9% 1,032 1,045 80% 1200 964 80% Sydney CBD 900 799 930 885 888 906 914 60% North Sydney 900 729 60% 641 676 688 651 662 661 666 580 600 40% 600 40% Prime G
Slide 20: Seoul Office Market
Seoul Office Market ▪ CBD Grade A occupancy increased to 95.1% in 3Q 2022 CBD Grade A Rent and Occupancy 200,000 92.9% 95.1% 100% 90.7% 89.2% 91.2% 85.0% 86.6% 86.7% 82.7% 160,000 80% 112,127 117,605 120,000 60% 97,572 98,926 101,276 95,169 91,845 92,325 91,656 80,000 40% 40,000 20% 0 0% 4Q16 4Q17 4
Slide 21: Additional Information
Additional Information Keppel Bay Tower, Singapore 21
Slide 22: Singapore Portfolio Valuations
Singapore Portfolio Valuations Valuation based on Variance 31 Dec 2021 30 Jun 2022 30 Jun 2022 Cap Rate attributable interest S$ % Ocean Financial Centre S$2,066.2m S$2,086.2m S$20.0m 1.0 S$2,987psf 3.50% (79.9% interest) Towers 1 & 2, and S$1,711.0m S$27.7m 1.6 S$2,965psf 3.30% Marina Bay Financial
Slide 23: Overseas Property Valuations
Overseas Property Valuations Valuation based on Local Currency (A$/KRW) Variance S$ Variance Cap Rate 30 Jun 2022 Keppel REIT’s interest A$/KRW % S$ % (%) 31 Dec 2021 30 Jun 2022 31 Dec 2021 30 Jun 2022 8 Chifley Square(1) A$24,310 A$234.5m A$235.0m A$0.5m 0.2 S$228.5m S$231.5m S$3.0m 1.3 4.63 (50%
Slide 24: Portfolio Information: Singapore
Portfolio Information: Singapore As at Ocean Financial Centre Marina Bay Financial Centre(4) One Raffles Quay Keppel Bay Tower 30 Sep 2022 Attributable NLA 697,855 sf 1,021,834 sf 441,048 sf 386,223 sf Ownership 79.9% 33.3% 33.3% 100.0% BNP Paribas, DBS Bank, TikTok, Keppel Group, Principal tenants(
Slide 25: Portfolio Information: Australia & South Korea
Portfolio Information: Australia & South Korea Blue & William(3), As at 8 Exhibition David Malcolm 8 Chifley Square, Pinnacle Office Sydney Victoria Police T Tower, 30 Sep 2022 Street(4), Justice Centre, Sydney Park, Sydney (Under Centre, Melbourne Seoul Melbourne Perth Development) Attributable 104
Slide 26: Thank you
Thank you Blue & William, Sydney Artist Impression 26