Keppel REIT · SGX:K71U
Keppel REIT — Merger or Acquisition (October 2019)
10 slides from Keppel REIT's merger presentation, Oct 1, 2019
Slide 1: Divestment of Bugis Junction Towers
Divestment of Bugis Junction Towers 1 October 2019
Slide 2: Unlocking Value
Unlocking Value ▪ Sale of strata ownership of Bugis Junction Towers for $547.5 million ($2,200 psf) ▪ Achieved asset-level returns of 19.4% p.a. from this investment which has been held since Keppel REIT’s listing in 2006 ▪ Realising capital gains of $378.1 million(1) as part of ongoing portfolio op
Slide 3: Divestment Rationale
Divestment Rationale • Attractive asset-level returns of 19.4% p.a., driven by 1 $378.1 million(1) of capital gains ▪ Unlock value of capital appreciation while maintaining 2 exposure to Singapore CBD ▪ Improved financial flexibility for ongoing portfolio 3 optimisation: o Continue DPU-accretive Uni
Slide 4: Portfolio Anchored by Singapore CBD Assets
Portfolio Anchored by Singapore CBD Assets $7.9 billion portfolio in key business districts of Singapore, Australia and South Korea enhances income diversification and long-term stability T Tower, Seoul 311 Spencer Street, 99.38% Interest Melbourne South Korea 50% Interest (Under development) 3.8% O
Slide 5: Attractive Capital Gains
Attractive Capital Gains Bugis Junction Towers Sale price of $547.5 million: Capital gains: $378.1m(1) ▪ translates to a net property income yield of 3.0%(2) $’m 600 $547.5m ▪ is 6.3% above latest valuation(3) of $515.0 million 500 8 Aug 2019 valuation: ▪ is 243.2% above purchase price of $159.5 mil
Slide 6: Pro Forma Impact: Financials
Pro Forma Impact: Financials For Illustrative Purpose Before After DPU(1) 5.56 cents 5.52 cents Adjusted NAV per Unit(2) $1.39 $1.40 78.6% 77.1% Income Contribution(3) 20.3% 21.7% 1.1% 1.2% Singapore Australia South Korea Singapore Australia South Korea (1) Pro forma financial effects of the sale on
Slide 7: Pro Forma Impact: Portfolio
Pro Forma Impact: Portfolio ▪ Post divestment of Bugis Junction Towers, portfolio committed occupancy remains high at 99.0%(1), while portfolio WALE remains long at 5.2 years(1) Top 10 Tenants(1) Lease Expiry Profile(1) DBS 6.6% 40.2% Government of GOWA 5.3% Western Australia Standard Chartered 4.6%
Slide 8: Committed to delivering stable income and sustainable returns
Committed to delivering stable income and sustainable returns Marina Bay One Raffles Ocean Financial Financial Centre Quay Centre 8
Slide 9: Thank You
Thank You COU REIT 9
Slide 10: Important Notice
Important Notice The past performance of Keppel REIT is not necessarily indicative of its future performance. Certain statements made in this presentation may not be based on historical information or facts and may be “forward-looking” statements due to a number of risks, uncertainties and assumptio