Keppel REIT · SGX:K71U
Keppel REIT — FY2012 Earnings Presentation
33 slides from Keppel REIT's earnings presentation, Jan 21, 2013
Slide 1: Full Year 2012 Financial Results
Full Year 2012 Financial Results 21 January 2013
Slide 2: Important Notice
Important Notice The past performance of Keppel REIT is not necessarily indicative of its future performance. Certain statements made in this presentation may not be based on historical information or facts and may be “forward-looking” statements due to a number of risks, uncertainties and assumptio
Slide 3: About Keppel REIT
About Keppel REIT Quality portfolio of nine commercial Grade A office assets valued at more than $6.5 billion Portfolio total NLA of approximately 3.0m sf(1) as at 31 December 2012 Market capitalisation of $3.4 billion(2) as at 31 December 2012 Listed on the SGX-ST in April 2006 via a distribution-i
Slide 4: Growth History
Growth History S$6.5 billion S$6.0 billion S$3.5 billion • Announced the acquisition of a 50% S$2.1 billion interest in the OTB S$2.1 billion • First forward office development(1) funding in Perth, WA • First overseas acquisition • Increased interest • First third-party acquisition structure in OFC
Slide 5: Sterling Property Portfolio
Sterling Property Portfolio Nine premium Grade A office assets valued at more than $6.5 billion with a total NLA of approximately 3.0 million sf Singapore Properties Ocean Financial Centre MBFC Towers 1 and 2 and Bugis Junction One Raffles Quay Prudential Tower (99.9% interest) Marina Bay Link Mall
Slide 6: Contents
Contents FY2012 and 4Q 2012 Highlights Financial Performance Capital Management Portfolio Analysis Market Review and Outlook Going Forward Additional Information 5
Slide 7: FY2012 and 4Q 2012 Highlights
FY2012 and 4Q 2012 Highlights 6
Slide 8: FY2012 and 4Q 2012 Highlights
FY2012 and 4Q 2012 Highlights FY2012 FY2012 Distributable Income 78.7% y-o-y to $201.9 million FY2012 Net Property Income 102.2% y-o-y to $124.7 million FY2012 Share of Results of Associates 25.3% y-o-y to $46.8 million Achieved four consecutive quarters of DPU growth in FY2012 Delivered Total
Slide 9: Property Highlights
Property Highlights Ocean Financial Centre was named the World’s Best Commercial High-Rise Development at the International Property Awards on 7 December 2012 Keppel REIT received approval from the Federal Investment Review Board (Australia) to acquire a 50% interest in the new office tower to be de
Slide 10: Financial Performance
Financial Performance Keppel isis 9
Slide 11: FY2012 Distributable Income up 78.7% Y-o-Y to $201.9m
FY2012 Distributable Income 78.7 % Y-o-Y to $201.9m FY2012 FY2011 Change Property Income $156.9m $78.0m $78.9m 101.2% Net Property Income $124.7m $61.7m $63.0m 102.2% Share of Results of Associates $46.8m $37.4m $9.4m 25.3% Distributable Income to Unitholders(1) $201.9m $113.0m $88.9m 78.7% Distri
Slide 12: FY2012 DPU up 74.2% Y-o-Y to 7.77 cents
FY2012 DPU 74.2% Y-o-Y to 7.77 cents FY2012 DPU of 7.77 cents outperformed FY2012 forecast(1) by 8.5% Distribution Per Unit 4Q 2012 3Q 2012 2Q 2012 1Q 2012 FY2012 FY2012 (DPU) Actual Forecast(1) - For the Period 1.97 cents 1.96 cents 1.94 cents 1.90 cents 7.77 cents 7.16 cents DPU 8.5% 7.77 cents
Slide 13: 4Q 2012 Distribution Per Unit
4Q 2012 Distribution Per Unit Distribution Per Unit (DPU) 1.97 cents Distribution Period 1 October 2012 to 31 December 2012 Distribution Timetable Trading on “Ex” Basis Friday, 25 January 2013 Books Closure Date Tuesday, 29 January 2013 Distribution Payment Date Wednesday, 27 February 2013 12
Slide 14: Healthy Balance Sheet
Healthy Balance Sheet As at 31 Dec 2012 As at 30 Sep 2012 Non-current Assets $6,002 m $5,789 m Total Assets $6,139 m $5,945 m Borrowings(1) $2,801 m $2,800 m Total Liabilities $2,674 m $2,668 m Unitholders’ Funds $3,464 m $3,275 m Net Asset Value (NAV) Per Unit $1.32 $1.25 Adjusted NAV Per Unit(2) $
Slide 15: Capital Management
Capital Management Keppel isis
Slide 16: Capital Management
Capital Management As at 31 Dec 2012 As at 30 Sep 2012 Gross Borrowings(1) $2,801 m $2,800 m Aggregate Leverage 42.9% 44.1% Average All-in Interest Rate(2) 2.02% 2.00% Interest Coverage Ratio(3) 4.8 times 5.2 times Weighted Average Term to Expiry 3.1 years(4) 2.3 years(4) (1) These include borrowing
Slide 17: Balanced Debt Maturity Profile
Balanced Debt Maturity Profile Successfully refinanced debt maturing in 2012 at competitive rates and terms All-in interest cost for FY2012 stood at 2.02% Well-staggered debt expiry profile with average 3.1 years(1) term to expiry Only $155m due for refinancing in 2013 Borrowings diversified across
Slide 18: Portfolio Analysis
Portfolio Analysis Keppel isis v7
Slide 19: Portfolio Occupancy Rate
Portfolio Occupancy Rate Healthy portfolio occupancy of 98.5% Singapore property portfolio occupancy of 98.5% is higher than core CBD occupancy of 92.2%(1) 100.0% 99.9% 100.0% 100.0% 100.0% 98.5% 95.9% 97.4% Singapore core CBD occupancy at 92.2%(1) Bugis Junction MBFC Phase 1 One Raffles Ocean Prude
Slide 20: Stable Lease Portfolio
Stable Lease Portfolio Top ten tenants have long WALE of 7.2 years(1) Weighted Average Lease Expiry (WALE) Top Ten Tenants WALE 7.2 years(1) Portfolio WALE 5.9 years(2) Portfolio with Long-Term Leases(3) by NLA 44.8% 55.2% Long-term Short-term leases leases (1) Including the acquisition of the Old T
Slide 21: Portfolio Lease Expiry
Portfolio Lease Expiry Well-balanced lease renewal and rent review profile Only 4.4% portfolio NLA due for renewal in 2013 Only 3.0% portfolio NLA due for rent review in 2013 Portfolio Lease Profile (by NLA) as at 31 Dec 2012 19.3% 18.9% 10.0% 10.4% 8.6% 5.4% 4.8% 4.4% 4.4% 3.0% 2013 2014 2015 2016
Slide 22: Tenants Diversified Across Various Business Sectors
Tenants Diversified Across Various Business Sectors Retail (Excludes F&B and services), 1.0% Accounting & Telecommunications consultancy & multi-media, 8.2% services, 1.7% Legal, 7.8% 218 (1) tenants from a F&B, 1.1% diversified range of business sectors Energy & natural resources, 9.3% (1) Tenants
Slide 23: Blue-Chip Tenant Base
Blue-Chip Tenant Base Top ten tenants account for 43.4% of portfolio NLA Top Ten Tenants Australia and New Zealand Banking Group Ltd 7.8% Standard Chartered Bank 6.5% Telstra Corporation Limited 5.7% Barclays Capital Service Limited Singapore Branch 4.4% BNP Paribas 3.6% Drew & Napier LLC 3.6% Deuts
Slide 24: Asset Enhancements
Asset Enhancements Enhancement works at Enhancement works at Prudential Tower completed Bugis Junction Towers in 4Q 2012 on track for completion in 2Q 2013 Lobby Lobby Toilets Toilets Lobby VIP drop-off 23
Slide 25: Market Review and Outlook
Market Review and Outlook Keppel isis
Slide 26: Core CBD Occupancy
Singapore Office Market ~1.33 million sf net absorption in FY2012 exceeded 10-year annual average of 1.27 million sf. Grade A office rentals likely to have bottomed-out in 4Q 2012 at $9.58 psf pm as there is limited new supply of Grade A office space in 2013. $15 95.2% 95.3% 100% 93.3% 94.4% 93.1% 9
Slide 27: Economic and Office Market Outlook
Economic and Office Market Outlook Singapore GDP expanded 1.2% year-on-year in 2012 Full year net absorption exceeded 10-year historical annual average by approximately 5% 94.2% Island-wide office occupancy higher than 10-year average of 90.4% Rental rates for Grade A office space likely to
Slide 28: Going Forward
Going Forward Keppel isis 27
Slide 29: Strategic Direction
Strategic Direction Vision Keppel REIT aims to be a successful commercial real estate investment trust with a sterling portfolio of assets pan-Asia. Mission To deliver stable and sustainable returns to Unitholders by continually enhancing our assets and expanding our portfolio. Achieving Acquiring M
Slide 30: Additional Information
Additional Information Keppel isis 29
Slide 31: Portfolio Information
Portfolio Information 92.4% of the Singapore property portfolio is located in the Raffles Place and Marina Bay precincts. Singapore Portfolio Ocean Financial Bugis Junction MBFC One Raffles Quay Prudential Tower Centre Towers Interest (3) Interest(3) Property Interest A pair of 33 and 50 43-storey p
Slide 32: Portfolio Information
Portfolio Information Australian Portfolio 275 George Street 8 Chifley Office Tower to be built at the 77 King Street Property Property Square Interest Old Treasury Building site (6) 34-storey Grade A office 35-storey Grade A office tower 30-storey Grade A office 18-storey Grade A office Description
Slide 33: For enquiries, please contact
http://www.keppelreit.com For enquiries, please contact Ms Casiopia Low Investor Relations & Research Email: casiopia.low@keppelreit.com Tel: 6433 7622 Fax: 6835 7747 32