Keppel REIT · SGX:K71U
Keppel REIT — FY2011 Earnings Presentation
29 slides from Keppel REIT's earnings presentation, Jan 17, 2012
Slide 1: FY2011 Financial Results
FY2011 Financial Results 17 January 2012 Building Strengths. Defining Distinction.
Slide 2: Important Notice
Important Notice The past performance of K-REIT Asia 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: Contents
Contents FY2011 Highlights Financial Performance Capital Management Portfolio Analysis Market Review and Outlook Going Forward Additional Information 3
Slide 4: FY2011 Highlights
FY2011 Highlights FY2011 distribution per unit (DPU) 11.1% y-o-y to 7.08 cents(1) 6.0% from the 6.68 cents DPU forecast(2) FY2011 distributable income 31.9% y-o-y to $113.0 million 23.8% from the $91.2 million distributable income forecast(2) Portfolio average occupancy at 94.1% Singapore portfo
Slide 5: Income Accretive Acquisition of an 87.5% Interest in Ocean Financial Centre
Income Accretive Acquisition of an 87.5% Interest in Ocean Financial Centre 2 weeks’ rental income contribution in 4Q 2011 Successful conversion of ownership structure to a limited liability partnership providing tax transparency on income Committed occupancy rate improved to nearly 85% up from 79.6
Slide 6: 2H 2011 Distribution Per Unit
2H 2011 Distribution Per Unit Distribution Per Unit (“DPU”) 2.45 cents(1) Distribution Period 1 July 2011 – 31 December 2011 Distribution Timetable Trading on “Ex” Basis Wednesday, 25 January 2012 Books Closure Date Friday, 27 January 2012 Distribution Payment Date Friday, 24 February 2012 (1) DPU b
Slide 7: Financial Performance
K-REIT Financial Performance
Slide 8: FY2011 Distributable Income up 31.9% y-o-y to $113.0m
FY2011 Distributable Income 31.9% y-o-y to $113.0m FY2011 FY2010 Change Property Income $78.0m $84.6m -$6.6m -7.8% Net Property Income $61.7m $67.3m -$5.7m -8.4% Share of Results of Associates $37.4m $9.7m $27.7m 285.7% Distributable Income to Unitholders $113.0m $85.6m $27.3m 31.9% Distribution P
Slide 9: 4Q2011 Share of Results of Associates up 264.8% y-o-y to $12.0m
4Q2011 Share of Results of Associates 264.8% y-o-y to $12.0m 4Q 2011 4Q 2010 Change Property Income $22.6m $21.4m $1.3m 5.9% Net Property Income $17.8m $17.5m $0.3m 1.4% Share of Results of Associates $12.0m $3.3m $8.7m 264.8% Distributable Income to Unitholders $35.7m $23.2m $12.6m 54.3% Distribu
Slide 10: 4Q2011 Distributable Income up 33.9% q-o-q to $35.7m
4Q2011 Distributable Income 33.9% q-o-q to $35.7m 4Q 2011 3Q 2011 Change Property Income $22.6m $18.6m $4.0m 21.5% Net Property Income $17.8m $14.7m $3.1m 21.1% Share of Results of Associates $12.0m $10.9m $1.0m 9.6% Distributable Income to Unitholders $35.7m $26.7m $9.0m 33.9% Distribution Per Un
Slide 11: Healthy Balance Sheet
Healthy Balance Sheet As at As at 31 Dec 2011 30 Sep 2011 Non-current Assets $5,735.0m $3,189.3m Total Assets $5,856.9m $3,254.1m Borrowings(1) $2,166.0m $1,151.5m Total Liabilities $2,381.4m $1,272.8m Unitholders’ Funds $3,262.6m $1,981.3m Net Asset Value (NAV) Per Unit $1.28(3) $1.46 Adjusted NAV
Slide 12: Prudent Capital Management
Prudent Capital Management 12
Slide 13: Healthy Financial Position
Healthy Financial Position As at 31 Dec 2011 As at 30 Sep 2011 Gross Borrowings(1) $2,495 m(4) $1,454 m Aggregate Leverage 41.6% 39.8% Average All-in Interest Rate(2) 2.35% 2.48% Interest Coverage Ratio(3) 5.5 times 4.6 times Weighted Average Term to Expiry 3.1 years 3.6 years (1) Includes borrowing
Slide 14: Balance Debt Maturity Profile
Balance Debt Maturity Profile Well-staggered debt expiry profile with average 3.1 years(1) term to expiry All-in interest cost of 2.35% achieved in 4Q 2011 Borrowings diversified across 12 lenders When the $535 million loans due for refinancing on $' mn Debt Maturity Profile 31 December 2012 are ref
Slide 15: Portfolio Analysis
K-REITASic Portfolio Analysis
Slide 16: Portfolio Occupancy Rate
Portfolio Occupancy Rate Healthy portfolio occupancy of 94.1% Singapore property portfolio occupancy of 93.9% is higher than core CBD occupancy of 91.2% Portfolio Occupancy 100.0% 98.6% 100.0% 100.0% 94.1% 94.1% 88.0% Singapore core CBD occupancy at 91.2%(1) 84.9% Bugis Junction MBFC Phase 1 Ocean O
Slide 17: Portfolio Lease Profile
Portfolio Lease Profile Well-balanced lease renewal and rent review profile Approximately 57,600 sf or 2.2% of portfolio NLA due for rent review and renewal in 2012 Portfolio Lease Profile (by Net Lettable Area) 15.4% 10.1% 9.8% 8.9% 7.4% 7.7% 5.6% 4.4% 1.6% 0.6% 2012 2013 2014 2015 2016 Leases Expi
Slide 18: Stable Lease Portfolio
Stable Lease Portfolio Portfolio of long leases provides income stability Weighted Average Lease Expiry (WALE) Top Ten Tenants WALE 8.2 years Portfolio WALE 6.7 years Portfolio with Long-Term Leases(1) by NLA Short-term leases 43.3% Long-term leases(1) 56.7% (1) Long-term leases are those with lease
Slide 19: Blue-Chip Tenant Base
Blue-Chip Tenant Base Top ten tenants account for 48.1% of portfolio NLA Top Ten Tenants Australia and New Zealand Banking Group 7.4% Standard Chartered Bank 7.0% Telstra Corporation 6.2% Barclays Capital Service 4.8% Deutsche Bank Aktiengesellschaft 3.8% BNP Paribas 3.4% Drew & Napier 3.4% (1) Ocea
Slide 20: Tenants diversified across various business sectors
Tenants diversified across various business sectors Retail (Exclude F&B Accounting & and services), 1.0% consultancy Telecommunication services, 1.9% & multi-media, 8.2% Legal, 6.8% F&B, 0.8% Energy & natural resources, 8.5% Shipping & marine Banking, insurance services, 0.3% 200 tenants (1) & finan
Slide 21: Market Review and Outlook
K-REIT Market Review and Outlook
Slide 22: Singapore Office Market
Singapore Office Market Average Grade A office rental shows resilience $20 95.4% 93.1% 95.1% 93.3% 95.2% 95.3% 94.4% 93.1% 100% 91.2% 91.2% 91.9% 92.3% 91.2% $18 90% $15.00 Average Grade A Rental ($ psf pm) $16 80% Core CBD Occupancy (%) $14 70% $12.30 $12 $11.06 $11.00 60% $10.15 $9.90 $10.30 $10.6
Slide 23: Economic and Office Market Outlook
Economic and Office Market Outlook Singapore Economy expanded 4.8% in 2011 Forecast GDP growth of between 1% and 3% for 2012 Grade A office rental remains stable at $11.00 psf per month Positive net take-up expected despite significant amounts of new office space being completed in the core CBD in 2
Slide 24: Going Forward
Going Forward 24
Slide 25: Key Thrusts
Key Thrusts Active Acquisition Prudent Capital Asset Growth Management Management Actively pursue Manage assets and cost Attract creditworthy tenants acquisition structure more effectively to increase occupancy as opportunities in well as retain good existing Singapore and Exercise prudent interest
Slide 26: Additional Information
K-REIT Additional Information
Slide 27: Singapore's Leading Office REIT
Singapore’s Leading Office REIT Overview Listed on the SGX-ST in April 2006 with a market cap of $2.1bn(1) as at 30 December 2011. Quality portfolio of eight commercial Grade A office assets valued at approximately $6.0bn and spanning 2.6m sf NLA as at 31 December 2011. High quality office property
Slide 28: Portfolio Information
Portfolio Information Singapore Portfolio Australia Portfolio Ocean Prudential 275 George 8 Chifley Bugis Junction MBFC Financial One Raffles 77 King Street Tower Street Square Towers Interest (2) Centre Quay Interest Property Interest Property Property Interest (5) Attributable 246,238 581,653 775,
Slide 29: Thank you
Thank you Fax: 6835 7747 http://www.kreitasia.com For enquiries, please contact Ms Casiopia Low Investor Relations & Research Tel: 6433 7622 Email: casiopia.low@kreitasia.com 29