Kore Us REIT · SGX:CMOU
Kore Us REIT — Keppel-KBS US REIT — Shareholder Meeting (April 2019)
20 slides from Kore Us REIT's shareholder meeting presentation, Apr 17, 2019
Slide 1: Annual General Meeting
Annual General Meeting 17 April 2019
Slide 2: Content Outline and Important Notice
Content Outline • Key Highlights 3 • 2018 Operational Updates 7 • Market Outlook 13 • Looking Ahead 18 Important Notice The past performance of Keppel-KBS US REIT is not necessarily indicative of its future performance. Certain statements made in this release may not be based on historical informati
Slide 3: Key Highlights
Key Highlights Downtown Bellevue, Washington
Slide 4: Growing to Deliver in 2018
Growing to Deliver in 2018 Distributable Income (DI) Assets Under Management Stable Occupancy Tax Update US$43.8m US$1.02b 91.6% • US Department of Treasury 2.0% above IPO forecast. Grew 26.5% from Portfolio Committed Occupancy clarified its position and US$804.0 million at IPO as at 31 December 201
Slide 5: Deepening Presence in Key Growth Markets
Deepening Presence in Key Growth Markets Driving growth with value accretive acquisitions The Westpark Portfolio Maitland Promenade I Seattle, Washington Orlando, Florida • Completed on 30 November 2018 • Completed on 16 January 2019 • 21 building business campus in Redmond, Washington • Adjacent to
Slide 6: Key Growth Markets with Positive Fundamentals
Key Growth Markets with Positive Fundamentals Seattle, Washington Atlanta, Georgia Overview The Plaza Buildings Bellevue Technology Center The Westpark Portfolio Northridge Center I & II Powers Ferry 13 freehold office properties Occupancy rate: 94.2% Occupancy rate: 98.5% Occupancy rate: 97.8% Occu
Slide 7: 2018 Operational Update
2018 Operational Update Westpark Portfolio Seattle, Washington
Slide 8: Financial Performance
Financial Performance Stronger performance driven by acquisition and stable operating performance Listing Date to 31 December 2018 (1) Actual Forecast(2) % Change (US$’000) (US$’000) Gross Revenue 105,917 104,902 1.0 Property Expenses (41,565) (42,905) (3.1) Net Property Income 64,352 61,997 3.8 Inc
Slide 9: Capital Management
Capital Management Limited interest rate exposure with term loans significantly hedged Debt Maturity Profile As at 31 December 2018 US$374.4 million of external Total debt 38.7% 38.7% loans (100% unsecured) 21.3% US$45.0 million of undrawn Available facilities revolving credit facility (1) 1.3% Aggr
Slide 10: Healthy Leasing Momentum
Healthy Leasing Continued Organic Growth • Strong leasing demand for KORE’s assets in first choice submarkets Momentum • Committed ~741,000 sf (100 leases) since listing • Leasing demand mainly from the fast-growing technology, finance and professional services sectors • Continued organic growth dri
Slide 11: Well-Diversified Tenant Base
Well-Diversified Tenant Base Resilient portfolio with low tenant concentration risk • Well-diversified tenant base across key growth sectors • Top 10 tenants comprise 17.5% of portfolio NLA and contribute 20.8% of cash rental income Top 10 tenants by cash rental income as at 31 December 2018 Portfol
Slide 12: Key Highlights for 1Q 2019
Key Highlights for 1Q 2019 Distributable Annualised Distribution Income Yield US$12.4m 8.7% Improved Based on the market 1Q 2019 30.7% above 1Q 2018 closing price of and 22.9% above US$0.70 per Unit Performance IPO Forecast as at the last trading day of 1Q 2019 Driven by ▪ higher gross revenue from
Slide 13: Market Outlook
Market Outlook Downtown Seattle, Washington
Slide 14: US Economy at a glance
US Economy Sound economic conditions at a glance • Despite concerns over slowing growth, economic fundamentals in the US remain strong • Labour market continues to show strength with 2.9% +3.2% filings for US unemployment benefits falling to the Real GDP growth1 Average hourly lowest in 49 years2 ea
Slide 15: US Market Outlook
US Market Outlook Attractive US Office Real Estate Fundamentals Overall Net Absorption(1) Deliveries & Demolitions(1) 100.0 Forecast 90.0 80.0 70.0 60.0 MSF 50.0 40.0 30.0 20.0 10.0 0.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Net Absorption Overall Asking Rents & Vacancy (1) $36.00 11.5% F
Slide 16: Key Growth Markets Outlook
Key Growth Markets Outlook Our Markets have Outperformed the National Average Over the Last 5 Years (1) (2) (3) • With the exception of Houston, our key growth markets have exceeded United States and gateway cities in terms of real GDP, employment and population growth • Houston was significantly af
Slide 17: First Choice Submarkets Outlook
First Choice Submarkets Outlook Submarket Last 12M Last 12M Average Submarket Last 12M Projected Submarket Vacancy Rate Deliveries absorption Rent Rental Growth Rental Growth Property (%) (sf’000) (sf’000) (US$ p.a.) (%) (%) Seattle, Bellevue CBD The Plaza Buildings 5.1% - 210.0 50.1 8.7% 7.4% Seatt
Slide 18: Looking Ahead
Looking Ahead Northridge Center II, Atlanta, Georgia
Slide 19: Focused on Stable Distributions and Delivering Long Term Value
Focused on Stable Distributions and Delivering Long Term Value Portfolio Value Accretive Prudent Capital Optimisation Acquisitions Management • Focused leasing • Pursue growth • Effective hedging to opportunities that create mitigate against impact strategy targeting high long term value of unfavour
Slide 20: Thank You
Thank You For more information, please visit www.kepkbsusreit.com Westech 360 Austin, Texas
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