Keppel REIT · SGX:K71U
Keppel REIT — K-REIT Asia — Investor Presentation (October 2007)
23 slides from Keppel REIT's investor presentation, October 2007
Slide 1: Investor Presentation
Singapore’s Leading Commercial REIT Investor Presentation October 2007
Slide 2: Important Notice
Important Notice THIS PRESENTATION IS AVAILABLE ONLY TO PERSONS WHO ARE NON-U.S. PERSONS AND PERSONS WITH ADDRESSES OUTSIDE THE U.S., CANADA AND JAPAN The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicit
Slide 3: Overview Of K-REIT Asia
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Slide 4: Singapore's Leading Commercial REIT
Singapore’s Leading Commercial REIT To invest in quality real estate and real estate-related assets which are income-producing and used predominantly for commercial purposes in Singapore and in Asia Listed on the SGX-ST with market capitalisation of S$716 million(1) Existing portfolio valued at
Slide 5: High Quality Portfolio Of Assets
High Quality Portfolio Of Assets Prudential Tower Keppel Towers and Property Bugis Junction Towers Property (1) GE Tower Net Lettable Area (“NLA”) 10,074 sqm 40,014 sqm 22,990 sqm Car Park Lots N/A 288 N/A Leasehold estate of Leasehold estate of Tenure 99 years expiring Estate in fee simple 99 years
Slide 6: Strong Performance Since Listing
Strong Performance Since Listing Strong DPU growth for six consecutive quarters Strong NAV(2) growth th anic grow 3.00 2.50 +39.4% org 7% NAV per unit (S$) 2.23¢ (3) 2.14¢ +40. S$2.56 DPU cents 2.00 2.50 1.71¢ 1.76¢ 1.77¢ 1.60¢ S$2.00 1.50 2.00 S$1.82 1.00 1.50 26/4/06 to 3Q 2006 4Q 2006 1Q 2007
Slide 7: Riding On The Strengthening Singapore Office Sector
Riding On The Strengthening Singapore Office Sector Demand Demand and and Supply Supply of of Office Space(1) Office Space (1) Forecast 7-8% real GDP growth for 60,000 95% 2007(2) Cumulative Supply/Demand Demand in 1H2007 was 1.3m(3) sq ft 90% compared to 10–yr average of 1.1m sq ft Occupancy 50
Slide 8: Multi-pronged Growth Strategy
Multi-pronged Growth Strategy 1 Consecutive quarter-on-quarter DPU growth since listing Approx. 85% of existing portfolio NLA is due for renewal from 2007-2011 Organic Growth Potential for further positive rental reversions supported by strengthening Singapore office sector 2 Closer to achie
Slide 9: Strong Keppel Land Sponsorship
Strong Keppel Land Sponsorship Marina Marina Business Business & & Ocean Ocean Leading development expertise Financial 1 Financial Centre Financial Centre Financial Centre Centre ♦ Leading property developer having successfully completed multiple landmark commercial developments ♦ Currently owns and
Slide 10: Acquisition of One Raffles Quay ("ORQ")
Acquisition of One Raffles Quay (“ORQ”)
Slide 11: Acquisition Of One-Third Interest In One Raffles Quay
Acquisition Of One-Third Interest In One Raffles Quay A Prestigious Landmark Commercial Development North Tower South Tower The Plaza Retail Link Strategically located in Singapore’s new downtown Close proximity to the Marina Bay Financial Centre and the Sands Integrated Resort developments 50
Slide 12: Joint Ownership Structure
Joint Ownership Structure Joint ownership with Suntec REIT and Hongkong Land (1) one-third ownership one-third ownership one-third ownership One Raffles Quay Pte Ltd Property management company(2) 100% One Raffles Quay (1) Suntec REIT’s unitholders approved the acquisition of one-third interest in O
Slide 13: Financing Structure
Financing Structure Acquisition of one-third interest in One Raffles Quay Uses of funds Total Proceeds Sources of funds S$966.5m Equity Fund Raising Convertible Bonds S$566.5m – S$716.5m S$250m – S$400m 33.0% Keppel Land to subscribe for approx. 41% 24.6% 22.9% (1) Pre-Acquisition S$250m CB S$400m C
Slide 14: Key benefits of the Acquisition
Key benefits of the Acquisition
Slide 15: Key Benefits of the Acquisition
Key Benefits of the Acquisition The acquisition will bring the following key benefits to Unitholders: 1 Delivering Delivering on on Growth Growth Strategy Strategy 2 Acquisition Acquisition of of aa Landmark Landmark Commercial Commercial Property Property with with Blue-Chip Blue-Chip Tenants Tenan
Slide 16: Delivering On Growth Strategy
1 Delivering On Growth Strategy Acquisition of One Raffles Quay: More than doubles K-REIT Asia’s portfolio value Closer to achieving acquisition target of S$2.0 billion Increases ability to capitalise on strengthening Singapore office sector Enhances K-REIT Asia’s position as a leading comme
Slide 17: Acquisition of A Landmark Commercial Property
2 Acquisition of A Landmark Commercial Property Singapore’s Tenants Tenants Singapore’s Central Central Business Business District District include: include: One One Raffles Raffles Quay Quay One Raffles Quay Designed by internationally-acclaimed architectural firm: KPF, New York Strategically l
Slide 18: Accretive Acquisition
3 Accretive Acquisition The Acquisition is expected to improve DPU… DPU DPU Forecast Forecast for for Projection Projection Year Year 2008 2008 11.0 c r etion S$567 million EFR(1) c 10.0 16.7% a 10.43¢ S$400 million CB(2) DPU cents + n 33.0% Leverage c retio % ac +9.1 9.0 S$717 million EFR(1) 9.75¢
Slide 19: High Growth Potential From Future Rental Reversions
4 High Growth Potential From Future Rental Reversions 55.7% of ORQ NLA is due for renewal or rent review from 2007-2011 84.9% of existing properties NLA is due for renewal from 2007-2011 Strong potential for positive rental reversions Staggered expiry profile facilitates stable and rising re
Slide 20: Greater Trading Liquidity and Flexibility
5 Greater Trading Liquidity and Flexibility Investors will have greater trading liquidity and free float Post-Acquisition Post-Acquisition Post-Acquisition Post-Acquisition Pre-Acquisition Pre-Acquisition (if (if S$567m S$567m EFR; EFR; S$400m S$400m CB) CB) (if (if S$717m S$717m EFR; EFR; S$250m
Slide 21: K-REIT Asia - An Attractive Investment Proposition
K-REIT Asia - An Attractive Investment Proposition
Slide 22: Attractive Investment Proposition
Attractive Investment Proposition 1 Leading Leading pure-play pure-play commercial commercial REIT REIT 2 High High quality quality portfolio portfolio with with blue-chip blue-chip tenants tenants 3 Strong Strong organic organic growth growth supported supported by by positive positive rental renta
Slide 23: Thank You
TT THANK YOU -- (ayasia