Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — Q1 2015 Earnings Presentation
25 slides from Keppel Dc Reit's earnings presentation, 2015
Slide 1: First Quarter 2015 Financial Results
First Quarter 2015 Financial Results For the period 12 December 2014 to 31 March 2015
Slide 2: Important Notice
Important Notice DBS Bank Ltd. and Standard Chartered Securities (Singapore) Pte. Limited are the Joint Financial Advisers and Issue Managers to the initial public offering of Keppel DC REIT (the “Offering”). DBS Bank Ltd., Standard Chartered Securities (Singapore) Pte. Limited and Credit Suisse (Si
Slide 3: Content
Content Key Highlights Financial Review Portfolio Performance Capital Management Outlook 2
Slide 4: Key Highlights
u DC REIT : Key Highlights
Slide 5: Key Highlights
Key Highlights Net property income outperformed IPO forecast1 by 2.0% Distributable income was 1.3% higher than IPO forecast1 Portfolio occupancy rate rose to 93.6% Annualised distribution yield2 was 7bps above IPO forecast1 Aggregate Leverage3 of 26.7% Notes: (1) On a pro-rata basis for t
Slide 6: Financial Review
Financial Review
Slide 7: Distributable Income
Distributable Income Actual1 Forecast2 Variance ($’000) ($’000) (%) Distributable Income to Unitholders3 17,160 16,939 +1.3 Comprising: Gross Revenue 31,150 30,244 +3.0 Property Expenses (4,996) (4,606) +8.5 Net Property Income 26,154 25,638 +2.0 Notes: (1) Actual income available for distribution t
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights As at 31 Mar 2015 ($’000) Investment Properties1 1,020,420 Total Assets1 1,109,978 Gross Borrowings 287,783 Total Liabilities 341,165 Unitholders’ Funds 768,370 Units in Issue (‘000) 882,930 Net Asset Value (“NAV”) per Unit ($) 0.870 Unit Price (as at 31 March 2015) ($) 1.03
Slide 9: Gearing Ratios
Gearing Ratios As at 31 Mar 2015 ($’000) Investment Properties1 989,079 (excluding finance lease liabilities commitments) Total Assets1 1,078,637 (excluding finance lease liabilities commitments) Gross Borrowings2 287,783 Total Borrowings3 319,124 Aggregate Leverage 26.7%4 Loan-to-Value (“LTV”) 29.1
Slide 10: Portfolio Performance
Portfolio Performance
Slide 11: Favourable Lease Profile
Favourable Lease Profile Providing long term stability with potential upside from rental reversions Co-location Double- or triple-net leases WALE(2) Rental income(1) WALE(2) breakdown by lease type(3) 10.8 years 2.9 years Fixed escalations Fixed escalations Rental rates with annual Rental
Slide 12: Favourable Lease Profile
Favourable Lease Profile Healthy portfolio occupancy rate Maintaining healthy occupancy and long 93.5% 93.6% lease expiry profile IPO 01 Jan 201531 Mar 2015 Long lease expiry profile (as at 31 March 2015) WALE of 7.5 years by leased lettable area 53.14% 35.62% 32.11% 26.81% 15.88% 8.02% 9.93% 7.23
Slide 13: Diverse Global Customer Base
Diverse Global Customer Base Building relationships with diverse global clientele Breakdown of rental income(1) by trade sector Profiles of top 10 customers Keppel DC REIT’s top 10 customers include: Corporate, 4.2% IT services, − 3 Fortune Global 500 and S&P 100 41.7% companies listed on NASDAQ
Slide 14: Capital Management
Capital Management
Slide 15: Active Capital Management
Active Capital Management Hedged 100% of interest rate exposure under its initial debt facilities for the next 4 to 5 years using interest rate swaps Hedged 100% of forecasted distribution for the next 2 years using foreign currency forward contracts Natural hedge: Use of foreign currency deno
Slide 16: Active Capital Management
Active Capital Management Well-spread debt maturity profile Approximately $288m of term loans Total debt For the period 12 Dec 2014 to 31 Mar 2015 $35m of undrawn revolving credit facility 19.5% Aggregate 26.7% Leverage(1) Average cost 2.5% per annum for the financial period 45.2% of debt(2)
Slide 17: Outlook
Outlook
Slide 18: Positioned to Capture Value
Positioned to Capture Value Growth momentum of demand set to continue Growth in global IP traffic (Petabyte per month) Increase in outsourced data centre space (Proportion) 60% CAGR: 21.0% 52.5% 50% CAGR: 20.0% 42.2% 40% 38.5% 33.0% 30% 2014 24.0% 2018F 20% 16.3% CAGR: 18.0% 10% 0% Asia Pacific We
Slide 19: Positioned to Capture Value
Positioned to Capture Value Active capital management High growth industry with Established significant track record barriers to entry Strategic location in key data centre hubs Strong global clientele To provide Unitholders with regular and stable distributions, and to achieve long-term growth in D
Slide 20: Additional Information
Additional Information
Slide 21: Keppel DC REIT Structure
Keppel DC REIT Structure Institutional and Public Keppel T&T Keppel Land Investors and Basis Bay 100% Vendor 30.1% 4.9% 65.0% Management Acts on behalf services of Unitholders REIT Manager Trustee Management Keppel DC REIT Trustee fees fees Keppel DC REIT The Trust Company (Asia) Management Pte. Ltd
Slide 22: Geographical Network
Geographical Network Ireland Citadel 100 Data Centre, Dublin Investment Mandate: United Kingdom To invest, directly or indirectly, in a diversified GV7 Data Centre, London portfolio of income-producing real estate Netherlands assets, which are used primarily for data Almere Data Centre, Almere Almer
Slide 23: Portfolio Overview (as of 31 March 2015)
Portfolio Overview (as of 31 March 2015) Lettable area No. of Occupancy Carrying value(6) Property Location Interest (sq ft) customers(1) rate (%) (S$m) Lease type WALE (years) Land lease title Singapore 100% 109,574 18(2) 86.0 253.9 Keppel lease / Co- 3.4(2) Leasehold (Expiring 30 location Septembe
Slide 24: Overview of Lease Arrangements
Overview of Lease Arrangements Responsibilities of Lessor / Owner Management Maintenance Maintenance Day-to-day Lease Insurance Asset Description Property Facilities Building Arrangement Refresh Capex Opex Tax Keppel lease(1) / Lessee: Pays cost of rent and all expenses recharged to Lessor S25
Slide 25: Thank you.
Thank you. KG y-y-1) DC REIT 24