Kore Us REIT · SGX:CMOU
Kore Us REIT — Keppel Pacific Oak US REIT — Q3 2021 Earnings Presentation
21 slides from Kore Us REIT's earnings presentation, Oct 27, 2021
Slide 1: 3Q 2021 Key Business and Operational Updates
3Q 2021 Key Business and Operational Updates 27 October 2021
Slide 2: Robust Financial Performance
Robust Financial Performance Financial Highlights Distributable Income for 3Q2021 was up 8.4% year-on-year to US$15.9m, supported by: 3Q 2021 3Q 2020 % 9M 2021 9M 2020 % • The recently completed acquisitions (US$ ’m) (US$ ’m) Change (US$ ’m) (US$ ’m) Change of Bridge Crossing in Nashville and Gross
Slide 3: Stable Financial Position
Stable Financial Position Healthy aggregate leverage and 100% unsecured loans provide greater financial flexibility As at 30 September 2021 Debt Maturity Profile Total Debt • US$549.9 m of external loans 100% of Loans Unsecured • 100% unsecured 26.3% 22.7% 20.9% Available Facilities • US$75.8m of te
Slide 4: Key Growth Markets Driven By Tech And Innovation
SEATTLE – BELLEVUE/REDMOND, Washington ATLANTA, Georgia Key Growth Markets The Plaza Buildings Occupancy: 93.9% Bellevue Technology Center Occupancy: 94.6% The Westpark Portfolio Occupancy: 95.9% Powers Ferry Occupancy: 84.3% Northridge Center I & II Occupancy: 83.5% Driven By NASHVILLE, Tennessee T
Slide 5: Strategic Presence in some of the Fastest Growing States
Strategic Presence in some of the Fastest Growing States % Change in Resident Top 20 Fastest Growing States in the US Population in 2021 1 Utah 19.3 2 Idaho 18.4 3 Nevada 17.9 4 Texas* 17.8 5 Arizona 17.4 6 Colorado* 16.8 7 Florida* 16.4 8 Washington* 15.6 9 North Dakota 14.1 10 South Carolina 13.9
Slide 6: Steady Income with Visible Organic Growth
Steady Income with Visible Organic Growth Lease Expiry Profile (as at 30 September 2021) 38.1% 38.3% ~480,165 sf Leased spaces for 9M 2021, equivalent to 9.4% of portfolio NLA. Portfolio WALE of 3.4 years(3) by CRI. NLA 18.0% 17.9% 15.5% 13.8% CRI 8.3% 14.0% 12.3% 12.3% 11.9% 4.2% 3.7% Positive rent
Slide 7: Tech Focused Tenant Composition and Industry Exposure
Tech Focused Tenant Composition and Industry Exposure KORE’s buildings and business campuses in ~43% of KORE’s portfolio NLA comprises the tech hubs of Seattle – Bellevue/Redmond, of high-quality tenants from the growing and Austin and Denver contribute ~62% of NPI(1) defensive sectors of TAMI(3) an
Slide 8: Low Tenant Concentration Risk
As at 30 September 2021 Low Tenant Top 10 Tenants Sector Asset Location % of CRI Comdata Inc Technology Bridge Crossing Nashville 3.3 Concentration Ball Aerospace Technology Westmoor Center Denver 2.8 Seattle – Lear Cooperation Technology The Plaza Buildings 2.6 Risk Gogo Business Technology 105 Edg
Slide 9: Last 12 Months Rent Growth
Last 12 Months Rent Growth -0.4% Key Growth Markets Average 0.2% United States Average -0.4% Gateway Cities Average -1.3% US Average Seattle, Bellevue CBD 1.1% Seattle, Eastside Bellevue 0.7% Seattle, Redmond 0.6% Austin, Northwest -0.4% Denver, Northwest -0.5% Denver, Broomfield Nashville, Brentwoo
Slide 10: Projected 12-Month Rent Outlook
Projected 12-Month Rent Outlook KORE’s average in-place rents are ~7% below asking rents, which will continue to drive organic growth Key Growth Markets Average United States Average -0.7% 0.1% -0.7% Gateway Cities Average -1.8% US Average Seattle, Bellevue CBD 0.3% Seattle, Eastside Bellevue 0.6% S
Slide 11: Actual Against Projected 12-Month Market Rent Growth
Actual Against Projected 12-Month Market Rent Growth Last 12 months rental growth* outperformed projections 3.0% 2.3% 2.0% 1.3% 1.1% 0.9% 1.0% 0.7% 0.6% 0.5% -0.5% -0.4% 0.0% 0.9% -0.4% -1.0% -0.7% -1.0% -1.1% -1.0% -1.0% -2.0% -1.4% -1.8% -1.8% -1.8% -2.2% -3.0% -2.7% -3.2% -3.2% -4.0% Seattle, Bel
Slide 12: First Choice Submarkets Outlook
First Choice Submarkets Outlook Property Submarket Last 12M Last 12M Under Last 12M Projected Submarket Vacancy Rate Vacancy Rate Deliveries Absorption Construction Rental Growth Rental Growth Property (%) (%) (sf’000) (sf’000) (sf’000) (%) (%) Seattle, Bellevue CBD 6.1 7.3 377 55.9 4,981(1) 1.1 0.3
Slide 13: US Economic Development
US Economic Development Economic growth surpassed consensus expectations % GDP Growth % Labour Force Participation Rate • US Real GDP increased 6.7% q-o-q 40 66 in 2Q 2021 reflecting the continued economic recovery, reopening of 30 65 establishments, and continued 20 government response related to 6
Slide 14: Office Sees Boost in Demand
Office Sees Boost in Demand The effects 14 of the pandemic is not slowing down office recovery Increase Decrease in Many people still long for the company in remote demand for working office space of colleagues despite the availability of remote working arrangements. Missed aspects of office life(4)
Slide 15: Commitment to ESG Excellence
Commitment to ESG Excellence Sustainability is at the heart of our strategy and we are committed to delivering sustainable distributions to Unitholders Environmental Stewardship Responsible Business People & Community Implement energy optimisation Strive for operational Invest in employees’ training
Slide 16: First choice US office S-REIT focused on the fast-growing tech sector
Strategic presence in some of the fastest growing states in the US. First choice Exposure to the fast-growing tech sector provides income resilience and growth. US office S-REIT focused on the fast-growing Highly diversified portfolio with low tenant concentration risk. tech sector across key growth
Slide 17: Additional Information
Additional Information Westech 360 Austin, Texas
Slide 18: KORE's Presence In Magnet Cities
KORE’s Presence In Magnet Cities Popular in-migration destinations due to attractive lifestyle, culture and employment opportunities Seattle, Washington SEATTLE ❖ The Plaza Buildings ❖ Bellevue Technology Center ❖ The Westpark Portfolio #6 Seattle Austin, Texas ❖ Westech 360 #2 #1 ❖ Grea
Slide 19: Trust Structure
Trust Sponsors(1) Keppel KPA Unitholders Capital Keppel Capital International Structure Keppel Management Agreement Trustee Management Services Fees Keppel Pacific Oak US REIT ✓ Tax-efficient structure for holding Trustee Trustee Management Management (Manager) US properties Fees Services • No US co
Slide 20: Strong Sponsors: Keppel Capital and KORE Pacific Advisors
Strong Sponsors: Keppel Capital and KORE Pacific Advisors (2) • Asset management arm of Keppel Corporation • Established commercial real estate investment and a premier manager in Asia manager in the US • US$28 billion(1) • US$4.0 billion Global assets under management as at end-2020 Assets under ma
Slide 21: Thank You
Important Notice The past performance of Keppel Pacific Oak US REIT is not necessarily indicative of its future performance. Certain Thank You statements made in this release may not be based on historical information or facts and may be “forward-looking” statements due to a number of risks, uncerta
Keppel Pacific Oak US REIT — Q3 2021 Earnings Presentation on 6ix