Slide 1: First Quarter 2016 Financial Results
First Quarter 2016 Financial Results 13 April 2016
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
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Slide 5: Key Highlights
Key Highlights $ € £ Distributable Income2 Portfolio Occupancy Aggregate Leverage3 +1.0% 92.0% 29.6% against IPO forecast1 as at 31 Mar 2016 as at 31 Mar 2016 Annualised Distribution Yield Portfolio WALE Interest Coverage 7.22% 8.7 years 8.3 times up 8bps from IPO forecast1 by leased lettable area
Slide 6: Financial Review
Financial Review
Slide 7: 1Q 2016 Distributable Income: Actual vs Forecast
1Q 2016 Distributable Income: Actual vs Forecast1 1Q 2016 1Q 2016 Variance Actual Forecast1 (%) (S$’000) (S$’000) Distributable Income to Unitholders2 14,747 14,598 +1.0 Comprising: Gross Revenue 24,771 25,488 (2.8) Property Expenses (3,585) (3,855) (7.0) Net Property Income 21,186 21,633 (2.1) Dist
Slide 8: 1Q 2016 Distributable Income: Year-on-Year Comparison
1Q 2016 Distributable Income: Year-on-Year Comparison 1Q 2016 1Q 20151 Variance Actual Actual (%) (S$’000) (S$’000) Distributable Income to Unitholders2 14,747 14,206 +3.8 Comprising: Gross Revenue 24,771 25,928 (4.5) Property Expenses (3,585) (4,199) (14.6) Net Property Income 21,186 21,729 (2.5) D
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights As at As at 31 March 2016 31 December 2015 (S$’000) (S$’000) Investment Properties1 1,103,738 1,102,685 Total Assets1 1,197,293 1,211,171 Gross Borrowings 342,533 341,848 Total Liabilities 400,337 397,683 Unitholders’ Funds 796,575 813,114 Units in Issue (‘000) 883,060 882,9
Slide 10: Aggregate Leverage
Aggregate Leverage As at As at 31 March 2016 31 December 2015 (S$’000) (S$’000) Investment Properties1 1,072,411 1,071,358 (excluding finance lease liabilities commitments) Total Assets1 1,165,966 1,179,844 (excluding finance lease liabilities commitments) Gross Borrowings + Deferred Payment2 345,54
Slide 11: Portfolio Performance
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Slide 12: Geographical Network
Geographical Network Ireland Assets Under Management (AUM) Citadel 100 Data Centre, Dublin ~S$1.07b1 United Kingdom comprising 9 data centres in 6 countries GV7 Data Centre, London (excludes maincubes Data Centre which The Netherlands is under development by the Vendor) Almere Data Centre, Almere Al
Slide 13: Diversified Client Profile & Lease Mix
Diversified Client Profile & Lease Mix Rental income breakdown Rental income breakdown by trade sector by lease type For the month of March 2016 For the month of March 2016 Shell & core, IT Services 6.3% Corporate Lease Type WALE1 4.4% 36.8% Financial Colocation 2.3 years services Colocation 13.5% 6
Slide 14: Portfolio Performance
Portfolio Performance Portfolio’s occupancy rate was 92.0% with weighted average lease expiry (WALE) of 8.7 years notwithstanding a client downsizing its requirements in Citadel 100 Data Centre Lease expiry profile Portfolio Metrics As at 31 March 2016 As at 31 March 2016 Lettable Area 597,909 sq
Slide 15: Capital Management
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Slide 16: Prudent Capital Management
Prudent Capital Management Hedging of borrowing costs As at 31 March 2016 Un- Managing interest rate exposure: hedged 13% Entered into floating-to-fixed interest rate swaps to lock in interest rates of the long-term loans Hedged 87% As at 31 March 2016 Debt maturity profile As at 31 March 2016
Slide 17: Prudent Capital Management (Cont'd)
Prudent Capital Management (Cont’d) Mitigating impact of currency fluctuations: Used foreign currency forward contracts to hedge the REIT’s foreign- sourced distribution. Hedging up to 2H 2017 completed Adopted natural hedging by borrowing in currencies that match the denomination of correspon
Slide 18: Outlook
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Slide 19: Fundamentals remain sound
Fundamentals remain sound Global data centre traffic forecasted to see three-fold increase from 2014 to 2019, supported by global trends that drive data creation and storage requirements Global data centre IP traffic (in Zettabytes)1 25% CAGR (2014-2019) 10.4 8.6 7.0 5.6 4.4 3.4 2014 2015 2016 201
Slide 20: Harnessing Strengths
Harnessing Strengths Keppel Corporation’s proposed consolidation of its interest in Keppel DC REIT Management (the REIT Manager) under Keppel Capital: The REIT Manager will be Private Equity Property able to leverage the scale One of the largest Pan-Asian and resources of a larger, commercial RE
Slide 21: Committed to Deliver Value
Committed to Deliver 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 DP
Slide 22: Additional Information
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Slide 23: 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 Acting on behalf services of Unitholders REIT Manager Trustee Management Keppel DC REIT Trustee’s fees fees Perpetual (Asia) Limited Keppel DC REIT [f.k.a The Trus
Slide 24: Portfolio Overview (as of 31 March 2016)
Portfolio Overview (as of 31 March 2016) Asia Pacific Lettable area No. of Occupancy Carrying Value(5) WALE Property Location Interest Lease type Land lease title (sq ft) clients(1) rate (%) (S$m) (years) Leasehold (Expiring 30 Keppel lease / 2.6(2) S25 Singapore 100% 109,574 20(2) 85.7 275.0 Septem
Slide 25: Portfolio Overview (as of 31 March 2016) (Cont'd)
Portfolio Overview (as of 31 March 2016) (Cont’d) Europe Lettable No. of Occupancy Carrying Value(5) WALE Property Location Interest area Lease type Land lease title clients(1) rate (%) (S$m) (years) (sq ft) London, Triple-net Leasehold (Expiring GV7 Data Centre United 100% 24,972 1 100.0 78.7 10.9
Slide 26: Overview of Lease Arrangements
Overview of Lease Arrangements Asia Pacific Responsibilities of Lessor / Owner Management Maintenance Maintenance Lease Day-to-day Insurance Property Description Property Facilities Building Arrangement Refresh Capex Opex Tax Keppel lease(1) / Client: Pays cost of rent and all expenses recharged t
Slide 27: Overview of Lease Arrangements (Cont'd)
Overview of Lease Arrangements (Cont’d) Europe Responsibilities of Lessor / Owner Management Maintenance Maintenance Lease Day-to-day Insurance Property Description Property Facilities Building Arrangement Refresh Capex Opex Tax GV7 Data Centre Triple-net lease Client: Pays all outgoings; responsi
Slide 28: Thank you.
Thank you. KG y-y-1) DC REIT 27