Kore Us Reit · SGX:CMOU
Kore Us Reit — Keppel Pacific Oak US REIT — Investor Presentation (May 2023)
35 slides from Kore Us Reit's investor presentation, May 2023
Slide 1: Investor Presentation May 2023
Investor Presentation May 2023
Slide 2: Important Notice and Content Outline
Important Notice Content Outline The past performance of Keppel Pacific Oak US REIT is not necessarily indicative of its future performance. Certain 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, O
Slide 3: Overview of KORE
Overview of KORE 105 Edgeview Denver, Colorado
Slide 4: Keppel Pacific Oak US REIT (KORE)
Keppel Pacific Oak US REIT Sponsors • Keppel Capital and KORE Pacific Advisors (“KPA”) (KORE) US Asset • Pacific Oak Capital Advisors LLC, also advisor Manager for Pacific Oak Strategic Opportunity REIT First choice US office SREIT focused Manager • Keppel Pacific Oak US REIT Management Pte. Ltd. on
Slide 5: Successful Execution of Growth Strategy
Successful Execution of Growth Strategy 9 Nov 2017: Listed on SGX Jan 2019 Aug 2021 IPO with 11 office buildings Strengthened foothold in the Completed the strategic and business campuses across strong Maitland submarket acquisitions of Bridge Crossing in 7 key growth markets with acquisition of Mai
Slide 6: KORE's Presence In Key Growth Markets
KORE’s Presence In Key Growth Markets Popular in-migration destinations due to attractive lifestyle, culture and employment opportunities Seattle, Washington The Plaza Buildings SEATTLE Bellevue Technology Center #17 Seattle The Westpark Portfolio Austin, Texas Westech 360 #4 Grea
Slide 7: 1Q 2023 Key Business and Operational Updates
1Q 2023 Key Business and Operational Updates Bridge Crossing Nashville, Tennessee
Slide 8: Financial Performance
Financial Performance Financial Highlights 1Q 2023 1Q 2022 % Adjusted Distributable Income for (US$ ’m) (US$ ’m) Change 1Q 2023 was down 12.5% year-on-year to US$13.1m due to: Gross Revenue 37.1 37.0 0.2 • Divestments of Northridge Center I & II and Powers Ferry in 2H 2022. • Higher financing cost a
Slide 9: Stable Financial Position
Stable Financial Position Prudent capital management with 100% unsecured loans provide greater financial flexibility, no long-term refinancing obligation till late 2024 As at 31 March 2023 Debt Maturity Profile (as at 31 March 2023) Total Debt • US$580.2 million of external loans • 100% unsecured an
Slide 10: Quality Portfolio Driven By Tech and Innovation
SEATTLE – BELLEVUE/REDMOND, Washington NASHVILLE, Tennessee Quality Portfolio The Plaza Buildings Bellevue Technology Center Occupancy: 95.1% The Westpark Portfolio Bridge Crossing Occupancy: 100% Driven By Occupancy: 90.3% Occupancy: 97.2% ORLANDO, Florida Tech and DENVER, Colorado Innovation Westm
Slide 11: Steady Income with Visible Organic Growth
Steady Income with Visible Organic Growth ~218,897sf New Renewal Expansion Leased spaces for 1Q 2023, equivalent to 4.6% New leasing demand and expansions from: of portfolio NLA. Excluding Spectrum’s major renewal/expansion, the leased spaced is 25.9% TAMI(2) 59.5% ~117,931 sf, equivalent to 2.5% of
Slide 12: Resilient Portfolio with Diversified Tenant Composition
Resilient Portfolio with Diversified Tenant Composition KORE’s buildings and business campuses in ~49% of KORE’s portfolio NLA comprises the tech hubs of Seattle – Bellevue/Redmond, high-quality tenants from the growing and Austin and Denver contribute ~67% of NPI(1) defensive sectors of TAMI, medic
Slide 13: Low Tenant Concentration Risk
As at 31 March 2023 Low Tenant Top 10 Tenants Sector Asset Location % of CRI Comdata Inc TAMI Bridge Crossing Nashville 3.5 Concentration Ball Aerospace Lear Cooperation TAMI TAMI Westmoor Center The Plaza Buildings Denver Seattle – 3.0 2.8 Bellevue/Redmond Risk Gogo Business Aviation TAMI 105 Edgev
Slide 14: Last 12 Months Rent Growth
Last 12 Months Rent Growth 0.9% Key Growth Markets Average 1.2% United States Average 0.9% Gateway Cities Average 0.1% US Average Seattle, Bellevue CBD 1.1% Seattle, Eastside Bellevue 1.9% Seattle, Redmond 2.0% Austin, Northwest 0.9% Denver, Northwest Denver, Broomfield 0.8% 1.7% 1.2% Nashville, Bre
Slide 15: Projected 12-Month Rent Outlook
Projected 12-Month Rent Outlook Key Growth Markets Average United States Average 0.2% 1.0% 0.2% Gateway Cities Average -0.9% US Average Seattle, Bellevue CBD 0.9% Seattle, Eastside Bellevue 0.8% Seattle, Redmond 0.8% Austin, Northwest -1.0% Denver, Northwest Denver, Broomfield 1.0% 1.3% 1.0% Nashvil
Slide 16: 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 9.7 7.9 - (243) 4,747(1)* 1.1 0.9
Slide 17: Market Outlook
Market Outlook Maitland Promenade I Orlando, Florida
Slide 18: U.S. Economic Updates
U.S. Economic Updates (2) % Unemployment Rate (2) % Labour Force Participation Rate 20 66 65 • US real GDP increased by 1.1% 15 64 quarter-on-quarter in 1Q 2023(1). 63 10 62 • Unemployment rate dipped to 3.4% in 5 61 April 2023(2). 60 0 59 • Labour force participation rate unchanged at 62.6% in Apri
Slide 19: Growth in the U.S. Economy
Growth in the U.S. Economy Real GDP Percent Change at Annual Rate(1), 2022: Q3 – 2022: Q4 Key Growth Markets Average 4.7% 2.6% United States Average 2.6% US Average Gateway Cities Average 1.7% Seattle 3.7% Austin 7.0% 4.7% Denver 2.7% Nashville 4.3% Houston 7.0% Average of Key Dallas 7.0% Growth Mar
Slide 20: Continued Exodus From America's Big Cities
Continued Exodus From America’s Big Cities • Most of the gateway cities continue to face a tough future. 2021-2022 population change among the top 10 largest metro areas(1) • New York continues to lead the country in population loss and outmigration(1). Phoenix Miami Saw largest annual numeric and
Slide 21: New York City Record High Levels of Felony Crimes in 2022
New York City Record High Levels of Felony Crimes in 2022 • More than 170,000 felony crimes were reported in 2022 – Rise in felony crimes in New York City the most since 2006, when such statistics became publicly (2021 to 2022)(1) available(1) . +32% 172,852 felonies reported in 2022. +27% +25% +2
Slide 22: Spike In Firms Leaving Chicago Traced Back To 2020
Spike In Firms Leaving Chicago Traced Back To 2020 List of companies that moved out of Chicago(2) • Number of people leaving Chicago continues to grow(1). Over the last five years, more people left than moved in Store (net loss of at least 249,000 people). Only New York and San Francisco saw big
Slide 23: Deteriorating Situation in Downtown San Francisco
Deteriorating Situation in Downtown San Francisco Union Square Area Store Closures • San Francisco shaken by organized crime. Since 2020(3) • Residents are calling on authorities to address the increasingly Date announced Store dangerous situation. May 2023 Nordstrom • The city has become associated
Slide 24: California's Business Exits
California’s Business Exits California lost a total of 352 headquarters in the period January 1, 2018 through December 31, 2021 • Los Angeles and San Francisco counties have experienced the highest number of relocations, to growth markets where KORE is present. California Headquarters Losses From Ja
Slide 25: Relocations Out of California
Relocations Out of California Top 10 states for California relocations (1) Overbearing Rank State Known Relocations regulations 1 Texas 132 Exorbitant 2 Tennessee 31 taxes 3 Nevada 25 4 Florida 24 High costs 5 Arizona 21 6 Colorado 20 7 North Carolina 13 • High cost of buildings are driving large co
Slide 26: Low State Personal Income Taxes
Low State Personal Income Taxes Individuals are moving to states with zero or low personal income taxes, accelerating population growth State Individual Tax Rates (as at January 1, 2023)(1) 5.47% Key Growth Markets Average 4.12% United States Average 5.47% Gateway Cities Average 9.52% US Average Col
Slide 27: Low State Corporate Income Taxes
Low State Corporate Income Taxes Companies are moving to states with zero or low corporate taxes, accelerating population growth State Corporate Income Tax Rates (as at January 1, 2023)(1) 5.99% Key Growth Markets Average 4.21% United States Average 5.99% Gateway Cities Average 8.69% US Average Colo
Slide 28: 2023 Rankings for Overall State Taxes
2023 Rankings for Overall State Taxes Lower overall tax rates in KORE’s key growth markets vs gateway cities Overall State Rankings(1) Best Key Growth 22 46 Markets Florida 4 where KORE is present Texas 13 Tennessee 14 Gateway Markets Colorado 21 Washington 28 Average of Massachusetts 34 Key Growth
Slide 29: Large Firms Cutting Back Work-From Home
Large Firms Cutting Back Work-From Home • Amazon and Meta joins corporate giants Disney, General Motors, Walmart, Starbucks and Vanguard Group in asking employees to return to offices more frequently. Workplace collaboration and culture essential for employee development. Shift in bargaining pow
Slide 30: First choice US office S-REIT focused on TAMI, medical and healthcare
Strategic presence in some of the fastest growing states in the U.S. First choice US office S-REIT Exposure to the fast-growing TAMI, medical and healthcare sectors provides income resilience. focused on the fast-growing TAMI, medical and Highly diversified portfolio with low tenant concentration ri
Slide 31: Thank You
Thank You For more information, please visit www.koreusreit.com Connect with us on: Lobby space at 1800 West Loop Houston, Texas
Slide 32: Additional Information
Additional Information Bellevue Tech Center Bellevue, Seattle, Washington
Slide 33: 2022 Sustainability Achievements
2022 Sustainability Achievements Execute sound fiscal and asset management strategy to drive growth and long-term value for Unitholders ENVIRONMENTAL STEWARDSHIP RESPONSIBLE BUSINESS Established a dedicated Board ESG Maintain high standards of ethical Committee business conduct and compliance
Slide 34: Trust Structure
Sponsors(2) Trust Structure Keppel Capital KPA Unitholders Keppel Capital International Keppel No withholding (1)tax in relation to Trustee Management Management Agreement Section 1446(f) Services Fees Keppel Pacific Oak US REIT Trustee Management Trustee Management (Manager) Tax-efficient struc
Slide 35: 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$36.6 billion(1) • US$4.0 billion Global assets under management as at end-2022 Assets under
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