Kore Us REIT · SGX:CMOU
Kore Us REIT — Keppel-KBS US REIT — Q3 2018 Earnings Presentation
25 slides from Kore Us REIT's earnings presentation, Oct 17, 2018
Slide 1: 3Q 2018 and 9M 2018 Financial Results
3Q 2018 and 9M 2018 Financial Results 17 October 2018
Slide 2: Contents and Important Notice
Contents Key Highlights 2 Portfolio Review 4 Financial Performance & Capital Management 8 Deepening Seattle Presence with Maiden Acquisition 12 Market Outlook 16 Looking Ahead 19 Important Notice The past performance of Keppel-KBS US REIT is not necessarily indicative of its future performance. Cert
Slide 3: Key Highlights
Key Highlights Westpark Portfolio, Seattle, Washington
Slide 4: Stable 3Q 2018 performance driven primarily by organic growth
Stable 3Q 2018 performance driven primarily by organic growth Strong leasing with ~134,000 sf (18 leases) committed Portfolio committed occupancy of 90.1% as at 3Q 2018 $ Organic growth driven mainly by positive rental reversion for leases committed in 3Q 2018, with 5.9% (by NLA) due for renew
Slide 5: Portfolio Overview
Portfolio Overview Bellevue Technology Center, Seattle, Washington
Slide 6: Leasing Updates
Leasing Updates Strong leasing in 3Q 2018 with positive rental reversion 98% of portfolio has built-in rental escalations ~134,000 sf (18 leases) committed, with Annual escalations positive rental reversion achieved for the of between 2-3% majority of leases Average annual rental escalations of
Slide 7: Well-Diversified Tenant Base
Well-Diversified Tenant Base Resilient portfolio with low tenant concentration risk Well-diversified tenant base across key growth sectors Top 10 tenants comprise 19.0% of portfolio NLA and contribute 23.1% of cash rental income Top 10 tenants by cash rental income as at 30 September 2018 Portfo
Slide 8: First choice submarkets with positive growth fundamentals
First choice submarkets with positive growth fundamentals Portfolio Overview Description 11 office properties across key growth markets Seattle, Washington NLA 3.2 million AUM US$826.2 million Occupancy 90.1% The Plaza Buildings Bellevue Technology Center Occupancy rate: 86.0% Occupancy rate: 98.1%
Slide 9: Financial Performance & Capital Management
Financial Performance & Capital Management Maitland Promenade, Orlando, Florida
Slide 10: Financial Performance
Financial Performance Performance in line with IPO Forecast 3Q 2018 DPU of 1.50 US cents, 0.7% above IPO forecast Total DPU of 5.32 US cents from Listing Date to 30 September 2018, 0.6% above IPO forecast Annualised distribution yield of 7.54%(1) 3Q 2018 Listing Date to 30 Sept 2018 Actual For
Slide 11: Financial Performance: Maintained healthy balance sheet
Financial Performance Maintained healthy balance sheet As at 30 Sept 2018 (US$’000) Total Assets 869,492 Investment Properties 826,153 Cash and Cash Equivalents 32,458 Other Assets 10,881 Total Liabilities 319,225 Gross Borrowings 289,440 Other Liabilities 29,785 Unitholders’ Funds 550,267 Units in
Slide 12: Capital Management
Capital Management Limited interest rate exposure with term loans significantly hedged Debt Maturity Profile As at 30 Sept 2018 US$289.4m of external 50.0% 50.0% Total debt loans (100% unsecured) US$50.0m of undrawn Available facilities No refinancing needs revolving credit facility until November 2
Slide 13: Deepening Seattle Presence with Maiden Acquisition of the Westpark Portfolio
Deepening Seattle Presence with Maiden Acquisition of the Westpark Portfolio Westpark Portfolio, Seattle, Washington
Slide 14: Creating Long Term Value for Unitholders
Creating Long Term Value for Unitholders The Westpark Portfolio Transaction Summary Purchase price of US$169.4m is lower than independent appraisals by Cushman and JLL Attractive Discount to Independent Valuations(1) US $181.4m US $178.0m US $169.4m 4.8% Discount 6.6% Discount Business campus co
Slide 15: Strategic Addition for Stronger Growth Platform
Strategic Addition for Stronger Growth Platform Westpark Portfolio: Business campus of Property 21 buildings in Redmond, Washington Land Tenure Freehold Land Area 1,804,255 sf NLA 781,966 sf Occupancy 97.7%(1) WALE 4.3 years(2) Refurbishment Between 2016 to 2017 Period Number of Tenants 102(3) (1) T
Slide 16: Accretive Acquisition Positioned for Long Term Growth
Accretive Acquisition Positioned for Long Term Growth 1 Deepen Presence in High Growth Seattle Market Strong macroeconomic growth indicators that outpace national average Limited new office inventory in the Redmond micromarket and positive leasing demand in recent years Positive trend in renta
Slide 17: Market Outlook
Market Outlook Seattle, Washington
Slide 18: US Market Outlook
US Market Outlook Stable office market supported by sound macroeconomic conditions US economy momentum remains strong 12-month 12-month on the back of increased fiscal stimulus Deliveries Absorption Projected GDP growth of 2.9% in 2018 66.4m sf 56.1m sf and 2.5% in 2019 Ongoing strong domestic
Slide 19: First Choice Submarkets: Rent growth drivers
First Choice Submarkets : Rent growth drivers Average Property/ Last 12M Last 12M Vacancy Last 12M Projected Submarket Rent Submarket Deliveries (sf’000) Absorption (sf’000) Rate Rental Growth Rental Growth (US$) The Plaza Buildings 48.1 - 26 7.9% 10.0% 10.4% Bellevue CBD Bellevue Technology Center
Slide 20: Looking Ahead
Looking Ahead The Plaza Buildings, Seattle, Washington
Slide 21: Focused on Stable Distributions and Long Term Value Creation
Focused on Stable Distributions and Long Term Value Creation Focused on first choice submarkets that businesses desire to be located in - Desirable live-work-play destinations with a quality workforce - Strong macroeconomic growth indicators that outpace national average Strong organic growth dr
Slide 22: Thank You
Thank You For more information, please visit www.kepkbsusreit.com Westech 360, Austin, Texas
Slide 23: Additional Information
Additional Information Great Hills Plaza, Austin, Texas
Slide 24: Structure of Keppel-KBS US REIT
Structure of Keppel-KBS US REIT Sponsors: KC relevant KPA relevant Keppel Capital Unitholders entity1 entity1 International Pte. Ltd. (“KCI”) Tax-efficient structure for holding 7.0%2 7.0%2 US properties Keppel Management Agreement Trustee Management Keppel-KBS US REIT Services Keppel-KBS Fees Manag
Slide 25: Portfolio overview
Portfolio overview Committed WALE Carrying Value Property City Type Location NLA (sf) occupancy1 (in years)1 (US$m) Westpark Portfolio(2) Seattle Suburban Redmond submarket, one of the best performing office 781,966 97.7% 4.0 169.4 markets in the Seattle region The Plaza Buildings Seattle CBD Bellev