Keppel REIT · SGX:K71U
Keppel REIT — K-REIT Asia — Investor Presentation (August 2010)
31 slides from Keppel REIT's investor presentation, Aug 31, 2010
Slide 1: Investor Meetings
INVESTOR MEETINGS 31 August 2010 1
Slide 2: Important Notice
Important Notice The past performance of K-REIT Asia 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
Slide 3: Agenda
Agenda Overview of K-REIT Asia Key Highlights Financial Performance Going Forward Appendices 3
Slide 4: Overview of K-REIT Asia
Overview of K-REIT Asia K-REITAaSla
Slide 5: K-REIT Asia at a Glance
K-REIT Asia at a Glance Real estate investment trust investing in quality income-producing commercial real estate and real estate-related assets pan-Asia Portfolio size of 6 assets valued at S$2.3bn as at 30 June 2010 Portfolio NLA of 1.5mn sf as at 30 June 2010 K-REIT Asia Market cap of S$1
Slide 6: Portfolio of Quality Assets
Portfolio of Quality Assets 77 King Street(1) 275 George Street One Raffles Quay One Raffles Quay Sydney Australia Brisbane, Australia North Tower South Tower (50% Stake) (33% Stake) (33% stake) Bugis Junction Prudential Tower Towers Keppel Towers GE Tower (73.4% stake) 1. The acquisition of the off
Slide 7: Singapore Property Portfolio
Singapore Property Portfolio Quality commercial properties strategically located near train stations and expressways Downtown Core of Singapore 7
Slide 8: Singapore Asset Portfolio
Singapore Asset Portfolio Bugis Junction Towers Keppel Towers and GE Tower Prime 15-storey office tower Keppel Towers: Prime Part of Bugis Junction - an integrated 27-storey office building development comprising a retail mall and the five-star InterContinental Singapore GE Tower: Prime Hote
Slide 9: Singapore Asset Portfolio
Singapore Asset Portfolio Prudential Tower Property One Raffles Quay Grade-A office building 30-storey Grade-A building strategically located at the Located in the CBD, within a heart of the business and 5-minute walk from Raffles Place financial district MRT station Direct underground link
Slide 10: Australia Asset Portfolio
Australia Asset Portfolio 275 George Street, Brisbane Office Tower at 50% stake 77 King Street(3), Sydney 30-storey Grade-A building 18 Storey Grade-A building completed in April 2009 completely refurbished in September 2008 Located in the revitalised George Street precinct of Brisbane’s CBD
Slide 11: Key Highlights
Key Highlights K-REITAaSla
Slide 12: Track Record of Occupancy Rates
Track Record of Occupancy Rates Portfolio Occupancy 100% 99.6% 100% 99.4% 99.7% 100% 99.4% 99.6% 99.6% 99.0% 100% 98.4% 97.9% 95.8% 96.0% 94.9% 94.9% 95.0% 95% 90% 85% 80% 75% 70% 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009
Slide 13: Steady Portfolio Rent
Steady Portfolio Rent Singapore Portfolio Average Monthly Rent(1) $9.00 $8.30 $8.19 $8.06 $8.13 $7.91 $8.16 $8.00 $7.61 $7.37 $7.43 $6.86 $7.00 $6.02 $6.00 $5.00 $4.28 $4.43 $4.05 $4.00 $3.65 $3.71 $3.80 $3.00 $2.00 $1.00 $- Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2006 2006 2006 2007 2007
Slide 14: Balanced Portfolio Lease Expiry
Balanced Portfolio Lease Expiry 100% of rent reviews due in 2010 completed Lease expiries and rent reviews well staggered from 2010-2013 Portfolio Lease Profile(1) by NLA 15.7% 14.1% 14.4% 9.3% 8.8% 7.8% 3.4% 2.8% 3.1% 0.0% 2010 2011 2012 2013 2014 Leases Expiring as a Percentage of Total Portfo
Slide 15: Diverse Blue-chip Tenant Base
Diverse Blue-chip Tenant Base Broad tenant diversity Top 10 tenants have a WALE of 7.3yrs Tenant Business Sector by NLA Portfolio Top 10 Tenants by NLA Telstra Corporation Limited 10.4% Deutsche Bank Aktiengesellschaft 6.3% I.E.Singapore 5.7% GE Pacific Pte Ltd 5.3% 135 tenants in UBS AG 5.1% variou
Slide 16: Long Lease Terms provide Income Stability
Long Lease Terms provide Income Stability Weighted average lease term to expiry for • Portfolio: 5.7 years • Top 10 tenants who account for 52% of portfolio’s NLA: 7.3 years Long lease terms(1) account for 40.5% of portfolio’s NLA Portfolio Lease Terms by NLA 40.5% 59.5% 1. Long lease terms are
Slide 17: Financial Performance
Financial Performance K-REITAaSla
Slide 18: Financial Performance
Financial Performance Net Property Income and Distributable Income 25,000 20,000 15,000 10,000 5,000 - $'000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 Net Property Income Distributable Income K-REIT Asia was established on 28 Nove
Slide 19: Healthy Balance Sheet
Healthy Balance Sheet As at 30 June 2010 Non-current Assets $2,245.4 m Total Assets $2,373.3 m Borrowings $351.1 m Total Liabilities $390.5 m Unitholders’ Funds $1,982.8 m Net Asset Value (NAV) Per Unit(1) $1.48 Adjusted NAV Per Unit(2) $1.45 1. Based on 1,340,700,280 units in issue as at 30 June 20
Slide 20: Healthy Financial Position
Healthy Financial Position As at 30 June 2010 Gross Borrowings(1) $351.1m Aggregate Leverage 15.2% All-in Interest Rate 3.54%(2) Interest Coverage Ratio(3) 5.4 times Weighted Average Term to Expiry 0.8 years 1. Includes unamortised portion of upfront fees in relation to the borrowings. 2. Excludes t
Slide 21: Low Aggregate Leverage
Low Aggregate Leverage Low Aggregate Leverage at 15.2% 54.3% of assets unencumbered $1bn multi-currency Medium Term Note Programme Debt Expiry Profile Aggregate Leverage $'mm 200.0 27.7% 190.1 25.2% 180.0 161.0 160.0 CMBS 140.0 Revolving 15.2% term loan 120.0 100.0 March 2011 May 2011 31 Decem
Slide 22: Going Forward
Going Forward K-REITAaSla
Slide 23: Key Strengths
Key Strengths Prime assets Portfolio of six strategically located commercial office properties in Singapore and Australia with blue-chip Diversified stable of creditworthy tenants tenants Above-market portfolio occupancy of 97.9% as at 30 June 2010 Stable income underpinned by long term leas
Slide 24: Three-pronged Growth Strategies
Three-pronged Growth Strategies Key Strategies Track Record Initiatives Portfolio occupancy Attract new creditworthy consistently above market tenants to increase occupancy Active asset levels as well as retain good existing management tenants Steady growth of average Embark on asset enhance
Slide 25: Appendices
Appendices K-REITAaSla
Slide 26: Key Portfolio Statistics
Key Portfolio Statistics Bugis Junction Keppel Towers and As at 30 June 2010 One Raffles Quay Prudential Tower(2) 275 George Street(3) Towers GE Tower Attributable NLA (sf) 247,475 430,112 445,120 175,675 224,686 Ownership 100.0% 100.0% 33.3% 73.4% 50.0% Number of tenants 8 65 31 24 7 UniCredit Bank
Slide 27: Portfolio Valuation
Portfolio Valuation 31 Dec 08 31 Dec 09 Change Total Singapore Portfolio Value (S$ million) 2,102 1,973(1) (6.1%) Total Value psf (S$) 1,707 1,603(1) (S$ million) ( S$ psf) 1,400 2,500 2,213 1,200 2,100 2,066 2,000 1,850 1,000 800 1,500 1,347 1,265 1,257 600 1,200 1,000 985 935 400 580 541 (2) 500 2
Slide 28: Singapore Office Market turns Positive
Singapore Office Market turns Positive Occupancy and rentals rise on the back of sustained economic expansion 97.1% 96.2% 95.4% 93.1% 91.5% 91.9% 93.3% 91.2% 91.2% 18.8 18.8 $ 16.1 16.1 15.0 12.9 12.3 10.5 10.2 8.6 8.8 8.5 8.1 8.0 7.5 6.8 6.7 6.9 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-
Slide 29: Sustained Economic Recovery
Sustained Economic Recovery Singapore GDP growth in 2010 to range between 13.0% to 15.0% 18.8% GDP growth in 2Q2010 y-o-y Positive 17.9 % GDP growth in 1H2010 y-o-y economic Stronger than expected growth provides positive spin-offs for office sector outlook Financial services sector boosted
Slide 30: Singapore remains key investment market in Asia
Singapore remains key investment market in Asia World’s Most Competitive Country “IMD World Competitiveness Yearbook 2010” World’s easiest place to do business “Doing Business 2009” ranking by World Bank for 4th consecutive year World’s most open economy for International Trade and Investment
Slide 31: Thank you
Thank you For queries, please contact Ms Casiopia Low Investor Relations & Research Tel: 6433 7622 Fax: 6835 7747 Email: casiopia.low@kreitasia.com http://www.kreitasia.com 31