Keppel Dc Reit · SGX:AJBU

Keppel Dc Reit — Merger or Acquisition (October 2016)

12 slides from Keppel Dc Reit's merger presentation, Oct 6, 2016

  1. Slide 1: Strengthens Data Centre Portfolio with Acquisition in Europe

    Strengthens Data Centre Portfolio with Acquisition in Europe 6 October 2016

  2. Slide 2: Important Notice

    Important Notice DBS Bank Ltd. and Standard Chartered Securities (Singapore) Pte. Limited are the Joint Financial Advisers and Issue Managers to the initial public offering of Keppel DC REIT (the “Offering”). DBS Bank Ltd., Standard Chartered Securities (Singapore) Pte. Limited and Credit Suisse (Si

  3. Slide 3: Content

    Content  Overview  Key Merits of Investment  Improving Earnings Stability 2

  4. Slide 4: Overview

    Overview  Maintains portfolio growth momentum with the REIT’s fourth acquisition since listing  Acquisition of a data centre’s shell and core in Cardiff, the capital city of Wales  Fully leased to one of the largest global cloud service providers on a 15-year triple-net lease basis Cardiff, Wales

  5. Slide 5: Key Merits of Investment

    Key Merits of Investment Consistent with the REIT’s investment strategy of acquiring income-producing assets that would enhance total return to Unitholders and increase potential for future growth • Cardiff is an emerging digital cluster driven by strong 1. Demand growth of government support and a

  6. Slide 6: 1. Demand Growth of Emerging Digital Cluster

    1. Demand Growth of Emerging Digital Cluster Projected demand in Wales “Cardiff, as capital of Wales, is positioned to benefit from Wales’ increase in data centre demand which is projected to grow at CAGR of 19% from 2016 to 2020” – BroadGroup  Thriving digital economy: South Wales is among the fiv

  7. Slide 7: 1. Demand Growth of Emerging Digital Cluster (Cont'd)

    1. Demand Growth of Emerging Digital Cluster (Cont’d)  Distribution of DCs for broader coverage: Projected utilisation rate in the UK BroadGroup sees data centre users looking 92% to increase domestic presence or distribute 90% data centres throughout the UK for broader 88% coverage 86%  Potential

  8. Slide 8: 2. Favourable Lease Structure with Creditworthy Client

    2. Favourable Lease Structure with Creditworthy Client  Increase portfolio income resilience with facility fully leased to and operated by one of the largest global cloud service providers  15-year triple-net lease provides stable cashflow with annual rental escalations mechanism  No requirement

  9. Slide 9: 3. Rebalanced Portfolio with Enhanced Stability

    3. Rebalanced Portfolio with Enhanced Stability  The acquisition of Cardiff Data Centre further diversifies the geographical profile of the REIT’s portfolio and increases the proportion of European assets in the portfolio After acquisition of Cardiff DC1 Current (excluding maincubes DC and Milan DC

  10. Slide 10: 3. Rebalanced Portfolio with Enhanced Stability (Cont'd)

    3. Rebalanced Portfolio with Enhanced Stability (Cont’d)  The addition of the shell and core asset enhances the REIT’s income stability and rebalances the portfolio with an increased proportion of master-leased facilities Increases Portion of Freehold Assets (by AUM) Extends Weighted Lease to Expir

  11. Slide 11: Improving Earnings Stability

    Improving Earnings Stability Interest Rate Volatility  The Manager will look to hedge the loan’s exposure with interest rate swaps over the 5-year loan tenure Foreign Currency Exposure  Acquisition fully funded by GBP debt to increase the natural hedge for the REIT’s assets in the UK  As with the

  12. Slide 12: Thank you.

    Thank you. KG y-y-1) DC REIT i

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