Slide 1: 3Q 2023 Key Business and Operational Updates
3Q 2023 Key Business and Operational Updates 17 October 2023
Slide 2: Outline
Outline Constituent of: ▪ 9M 2023 Key Highlights 3 ▪ Financial Highlights 4 FTSE ST Large & FTSE4GOOD Mid Cap Index Developed & ▪ Portfolio Review 7 FTSE4GOOD ASEAN 5 Index ▪ Market Review 14 ▪ Additional Information 19 FTSE EPRA Nareit Global Developed Index IMPORTANT NOTICE: The past performance o
Slide 3: 9M 2023 Key Highlights
9M 2023 Key Highlights A Resilient Portfolio of Healthy Demand Prudent Capital for Prime Office Management Prime Commercial Assets Anchored in key business districts of High Portfolio Occupancy Aggregate Leverage Singapore, Australia, South Korea and Japan 95.9%(1) 39.5% As at 30 September 2023 As a
Slide 4: Financial Highlights
Financial Highlights Keppel Bay Tower, Singapore 4
Slide 5: Increase in Property Income from Higher Rentals and Portfolio Occupancy
Increase in Property Income from Higher Rentals and Portfolio Occupancy ▪ Property Income for 9M 2023 increased 5.0% year-on-year due to higher rentals, increased portfolio occupancy and contribution from KR Ginza II ▪ 9M 2023 Distributable Income from Operations was lower due to increased borrowing
Slide 6: Proactive & Prudent Capital Management
Proactive & Prudent Capital As at 30 Sep 2023 Interest Coverage Ratio(2) 3.3x Management Adjusted Interest Coverage Ratio(3) 2.9x ▪ Aggregate leverage at 39.5% with 76% of borrowings All-in Interest Rate 2.85% p.a. on fixed rates Aggregate Leverage 39.5% Weighted Average Term to Maturity 2.7 years ▪
Slide 7: Portfolio Review
Portfolio Review Blue & William, Sydney 7
Slide 8: Diversified Portfolio of Prime Commercial Assets in Asia Pacific
Diversified Portfolio of Prime Commercial Assets in Asia Pacific $9.2b portfolio of prime quality assets anchored across different markets enhance income stability and long-term growth opportunities T Tower, Seoul KR Ginza II, Tokyo 99.4% Interest South Korea Japan 98.5% Interest Occupancy: 95.8% 3.
Slide 9: 9M 2023 Portfolio Performance
9M 2023 Portfolio Performance Leases Committed Leases Committed (1) (1) by Geography by Type Australia, New, Rent review, 56.1% 25.4% 2.5% As at 30 Sep 2023: Singapore, 63.2% South Korea, 8.9% Renewal, 95.9%(2) Japan, 41.4% Portfolio committed occupancy 2.5% New leasing demand and expansions from: T
Slide 10: Well-spread Lease Expiry Profile
Well-spread Lease Expiry Profile ▪ Average signing rent for Singapore office leases(1) concluded in 9M 2023 was $12.43 psf pm, supported by healthy demand for prime office space ▪ Average expiring rents of Singapore office leases(2) (psf pm): $11.58 in 2023, $11.05 in 2024 and $11.13 in 2025 Lease E
Slide 11: Established and Diversified Tenant Base
Established and Diversified Tenant Base ▪ Keppel REIT has a diversified tenant base of 455(1) ▪ Top 10 tenants take up 38.2% of NLA and contribute tenants, many of which are established blue-chip 33.0% of gross rent corporations Top 10 Tenants Tenant Business Sector % Banking, insurance and financia
Slide 12: ESG Activities in 3Q 2023
ESG Activities in 3Q 2023 One Raffles Quay 3 new EV Chargers were collaborated with Dignity installed at 8 Chifley Square Kitchen to cook and serve and will be fully operational afternoon tea and host by October 2023. These EV lively karaoke sessions with chargers, together with the seniors on 4th A
Slide 13: Sustainable and Future Ready Portfolio with ESG Excellence
Sustainable and Future Ready Portfolio with ESG Excellence Keppel REIT’s ESG Targets ESG Benchmarks Environmental Stewardship • MSCI ESG Rating maintained at ‘A’ • ISS Governance Risk Rating maintained at lowest risk level of “1” and ESG ▪ Halve Scope 1 and 2 emissions by 2030 from Corporate Rating
Slide 14: Market Review
Market Review Marina Bay Financial Centre, Singapore 14
Slide 15: Singapore Office Market
Singapore Office Market ▪ Average core CBD Grade A office rents increased to $11.85 psf pm and average occupancy in core CBD increased to 95.3% in 3Q 2023 Grade A Rent and Core CBD Occupancy Demand and Supply (million sf) 2.1 1.9 1.9 1.7 95.8% 93.8% 94.8% 95.8% 93.8% 93.3% 94.7% 94.5% 94.8% 95.3% 0.
Slide 16: Australia Office Market
Australia Office Market 95.2% 1,500 94.9% 96.0% 87.5% 88.6% 85.3% 85.7% 85.1% 84.1% 100% 92.1% 90.4% 89.9% 84.0% 83.0% 79.0% 100% Sydney CBD 1,200 80% 1200 75.5% 79.9% 75.8% 80% 964 1,032 1,045 930 919 934 947 947 North Sydney 900 885 60% 900 729 670 686 684 684 60% 641 676 688 651 600 40% 600 40% P
Slide 17: Seoul Office Market
Seoul Office Market ▪ CBD Grade A vacancy remains low with occupancy at 96.6% in 3Q 2023 CBD Grade A Rent and Occupancy 97.0% 98.5% 98.1% 96.6% 200,000 90.7% 100% 86.6% 86.7% 89.2% 82.7% 160,000 80% 121,356 124,110 126,629 130,553 120,000 60% 97,572 98,926 91,845 92,325 91,656 80,000 40% 40,000 20%
Slide 18: Tokyo Office Market
Tokyo Office Market ▪ Higher occupancy for Grade A office in Tokyo central 5 wards at 95.3% while Grade B office occupancy increased to 96.5% in 3Q 2023 Tokyo Central 5 Wards Grade A Rent and Occupancy Tokyo Central 5 Wards Grade B Rent and Occupancy 99.6% 99.8% 99.1% 99.0% 99.4% 98.7% 100.0% 98.1%
Slide 19: Additional Information
Additional Information Pinnacle Office Park, Sydney 19
Slide 20: Singapore Portfolio Valuations (As at June 2023)
Singapore Portfolio Valuations (As at 30 June 2023) Valuation based on Variance Cap Rate 31 Dec 2022 30 Jun 2023 30 Jun 2023 attributable interest (%) S$ % Ocean Financial Centre S$2,140.5m S$2,140.5m - - S$3,069psf 3.40 (79.9% interest) Towers 1 & 2, and Marina Bay Financial S$1,770.0m S$13.0m 0.7
Slide 21: Overseas Property Valuations (As at June 2023)
Overseas Property Valuations (As at 30 June 2023) Valuation based on Local Currency (A$/KRW/JPY) Variance S$ Variance Cap Rate 30 Jun 2023 Keppel REIT’s interest 31 Dec 2022 30 Jun 2023 A$/KRW/JPY % 31 Dec 2022 30 Jun 2023 S$ % (%) 8 Chifley Square(1) A$22,945 A$227.5m A$222.5m A$(5.0m) (2.2) S$209.
Slide 22: Portfolio Information: Singapore
Portfolio Information: Singapore As at Marina Bay Financial Ocean Financial Centre One Raffles Quay Keppel Bay Tower 30 Sep 2023 Centre(4) Attributable NLA 697,434 sf 1,017,609 sf 441,690 sf 386,224 sf Ownership 79.9% 33.3% 33.3% 100.0% DBS Bank, BNP Paribas, TikTok, Keppel Group, Principal Standard
Slide 23: Portfolio Information: Australia, South Korea & Japan
Portfolio Information: Australia, South Korea & Japan As at 8 Chifley 8 Exhibition Victoria Police David Malcolm Pinnacle Office Blue & William(3), T Tower, KR Ginza II, 30 Sep 2023 Square, Street(4), Centre, Justice Centre, Park, Sydney Sydney Seoul Tokyo Sydney Melbourne Melbourne Perth Attributab
Slide 24: Committed to Delivering Stable Income & Sustainable Returns
Committed to Delivering Stable Income & Sustainable Returns Portfolio Optimisation • Improve yield by enhancing Keppel REIT’s portfolio of quality assets through strategic acquisitions and divestments Portfolio • Provide income stability and long-term capital appreciation of portfolio, Optimisation
Slide 25: Well-Executed Portfolio Optimisation Strategy
Well-Executed Portfolio Optimisation Strategy Expanded footprint Expanded footprint to Japan: Expanded footprint to Australia: KR Ginza II (98.5%), 77 King Street (100%), Sydney, and to South Korea: T Tower (99.4%), Tokyo 275 George Street (50%), Brisbane Seoul Acquired Acquired - David three adjace
Slide 26: To Distribute an Additional $100m Over Five Years to Celebrate Keppel REIT's 20th Listing Anniversary
To Distribute an Additional $100m Over Five Years to Celebrate Keppel REIT’s 20th Listing Anniversary in 2026 • Accumulated capital gains through successful execution of portfolio optimisation since listing in 2006 • As announced on 25 October 2022, to celebrate Keppel REIT’s 20th anniversary in 202
Slide 27: Thank you
Thank you One Raffles Quay, Singapore 27