Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — FY2019 Earnings Presentation
27 slides from Keppel Dc Reit's earnings presentation, Jan 21, 2020
Slide 1: Fourth Quarter & Full Year 2019 Financial Results
Fourth Quarter & Full Year 2019 Financial Results 21 January 2020
Slide 2: Outline
Outline ◼ Key Highlights ◼ Financial Performance ◼ Capital Management ◼ Portfolio Update ◼ Outlook Important Notice: The past performance of Keppel DC REIT is not necessarily indicative of its future performance. Certain statements made in this presentation may not be based on historical information
Slide 3: Key Highlights for FY 2019
Key Highlights for FY 2019 Steady growth in Adjusted DPU, Stable income stream with Low aggregate leverage increasing by 5.3% to 7.713 cents healthy portfolio occupancy and provides financial flexibility to long WALE pursue growth Adjusted DPU (cents) 8.00 Portfolio Occupancy Aggregate Leverage4 3 +
Slide 4: Steady Growth Momentum Since IPO
Steady Growth Momentum Since IPO 12 Dec 2014 31 Dec 2019 AUM: $1.0b 2015 2016 2017 2018 2019 AUM: $2.6b2 IPO with 8 assets Keppel DC maincubes 17 assets Intellicentre 2 Milan Data Centre DC1 across 6 countries Data Centre Singapore 3 Data Centre across 8 countries Cardiff Data Centre Keppel DC Keppe
Slide 5: DPU-Accretive Acquisitions in Singapore and Germany
DPU-Accretive Acquisitions in Singapore and Germany ▪ Completed acquisitions of Keppel DC Singapore 4 and DC1 in 4Q 2019 ▪ Deepen presence in Germany with acquisition of Kelsterbach Data Centre, a purpose-built data centre facility located near the Frankfurt Airport 99% Interest in Keppel DC Singapo
Slide 6: Financial Performance
Financial Performance yy) DC REIT 6s
Slide 7: Distributable Income
Distributable Income Distribution Per Unit (cents) 4Q 4Q +/(-) FY FY +/(-) ($’000) 2019 2018 % 2019 2018 % 8.00 Distributable Income to +4.0% 7.61 31,464 26,126 20.4 113,245 96,096 17.8 Unitholders 7.32 Comprising 7.00 Gross Revenue 52,981 48,043 10.3 194,826 175,535 11.0 Property Expenses (4,455) (
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights As at As at +/(-) ($’000) 31 Dec 2019 31 Dec 2018 % Investment Properties 2,637,026 2,028,672 +30.0 Total Assets 2,927,994 2,259,144 +29.6 Gross Borrowings1 870,388 673,952 +29.1 Total Liabilities 1,025,446 783,150 +30.9 Unitholders’ Funds 1,868,018 1,444,839 +29.3 Units in
Slide 9: Aggregate Leverage
Aggregate Leverage As at As at +/(-) ($’000) 31 Dec 2019 31 Dec 2018 % Investment Properties1 (excluding lease liabilities commitments and options) 2,585,178 1,995,206 +29.6 Deposited Properties1 (excluding lease liabilities commitments and options) 2,838,306 2,187,396 +29.8 Gross Borrowings + Defer
Slide 10: Capital Management
Capital Management yy) DC REIT 10
Slide 11: Prudent Capital Management
◼ Maintaining low aggregate leverage: Prudent Capital Management Provides flexibility and a healthy debt Debt Maturity Profile headroom for growth As at 31 Dec 2019 ◼ Raised $478.2m in gross proceeds through private placement and preferential offering of approx. 277.0m new Units 31.6% 13.7% 6.8% 17.
Slide 12: Prudent Capital Management
Prudent Capital Management ◼ Managing interest rate exposure: 82% of loans hedged with floating-to- fixed interest rate swaps Investment properties breakdown1 Debt currency breakdown ◼ Mitigating impact of currency (as at 31 Dec 2019) (as at 31 Dec 2019) fluctuations: Ireland Italy ̶ Hedged forecast
Slide 13: Portfolio Update
Portfolio Update yy) DC REIT 13 f
Slide 14: Optimising Portfolio Returns
Optimising Portfolio Returns Obtained building approvals and Increase power capacity at Fit out shell & core commenced construction of Keppel DC Singapore 5 space at DC1 Intellicentre 3 East Data Centre ▪ Expected completion: 2H 2020 ▪ Expected completion: 3Q 2020 ▪ Expected completion: 4Q 2020 ▪ Es
Slide 15: Diversified and Resilient Portfolio
Diversified and Resilient Portfolio Approx. 75% of portfolio in Asia Pacific Healthy portfolio occupancy of 94.9% Rental income and 25% in Europe and long WALE of 8.6 years breakdown for Dec 20191 By trade sector: Portfolio AUM breakdown Lease expiry profile (by leased area) As at 31 Dec 2019 As at
Slide 16: Diversified and Resilient Portfolio
Diversified and Resilient Portfolio Portfolio Valuation ◼ Quality data centres that cater to the requirements of global clientele 31 Dec 2019 31 Dec 2018 • Colocation facilities provide diverse client profile and lease expiry Valuation $2,560m $1,970m • Fully-fitted and shell & core facilities provi
Slide 17: Outlook
Outlook i sy2)] DC REIT 171 ff
Slide 18: Supported by Sound Industry Fundamentals
Supported by Sound Industry Fundamentals Cloud provider spending Mobile data traffic expected on colocation and data centre to increase by up to 3.5 times leasing grew by 17% in 1H from 2018 to 20213 20191 Global cloud infrastructure Worldwide IoT spending to market expected to grow at grow at 13.6%
Slide 19: Positioned for Growth
Positioned for Growth Ireland Keppel DC Dublin 1, Dublin Keppel DC Dublin 2, Dublin The Manager will continue to strengthen United Kingdom Keppel DC REIT’s presence and position GV7 Data Centre, London it to capitalise growth opportunities in Cardiff Data Centre, Cardiff the data centre industry The
Slide 20: Committed to Deliver Value
Committed to Deliver Value ▪ Vision: To be the preferred data centre real estate investment trust, serving as a trusted partner to our stakeholders. ▪ Mission: Guided by the Keppel Group’s operating principles and core values, we will create value for our investors by growing a quality portfolio of
Slide 21: Additional Information
Additional Information yy) DC REIT 2
Slide 22: Keppel DC REIT Structure
Keppel DC REIT Structure as at 31 Dec 2019 Keppel Keppel Capital Telecommunications & Transportation Institutional and The REIT Manager can leverage The REIT Manager can leverage Public Investors the scale and resources of a larger the Sponsor‘s expertise and track asset management platform record i
Slide 23: Portfolio Overview (as at 31 Dec 2019)
Portfolio Overview (as at 31 Dec 2019) Attributable No. of Occupancy WALE Location Interest lettable area Valuation2 Lease type Land lease title clients1 rate (%) (years) (sq ft) Asia Pacific Leasehold Keppel lease / Keppel DC Singapore 1 Singapore 100% 109,721 19 89.2 S$296.0m 3.9 (Expiring 30 Sep
Slide 24: Portfolio Overview (as at 31 Dec 2019)
Portfolio Overview (as at 31 Dec 2019) Attributable lettable No. of Occupancy WALE Location Interest Valuation2 Lease type Land lease title area (sq ft) clients1 rate (%) (years) Sydney, A$57.7 m Triple-net Intellicentre 2 Data Centre 100% 87,930 1 100.0 15.6 Freehold Australia (S$53.4m) (Shell & co
Slide 25: Overview of Lease Arrangements
Overview of Lease Arrangements Responsibilities of Owner Maintenanc Insurance Lease Property Building Asia Pacific Description Refresh Arrangement Capex Opex Tax e Keppel lease1 / ◼ Client: Pays rent Keppel DC Singapore 1 ✓ ✓ ✓ ✓ Colocation3 ◼ Owner: Bears all expenses; responsible for facilities ma
Slide 26: Overview of Lease Arrangements
Overview of Lease Arrangements Responsibilities of Owner Maintenance Lease Insurance Europe Description Property Building Arrangement Refresh Capex Opex Tax Cardiff Data Centre Triple-net lease ◼ Client: Pays rent and all outgoings; responsible for facilities management - - - - GV7 Data Centre Tripl
Slide 27: Thank You
Thank You yy) DC REIT 27 ff