Keppel REIT · SGX:K71U
Keppel REIT — K-REIT Asia — Non-Deal Roadshow (June 2011)
29 slides from Keppel REIT's roadshow presentation, June 2011
Slide 1: Investor Meetings
Investor Meetings June 2011 Building Strengths. Defining Distinction.
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: Contents
Contents About K-REIT Asia 1Q 2011 Highlights Financial Performance Portfolio Analysis Capital Management Market Review and Outlook Going Forward Additional Information 3
Slide 4: About K-REIT Asia
K-REITaSi. About K-REIT Asia
Slide 5: Singapore's Leading Office REIT
Singapore’s Leading Office REIT Vision To be a successful commercial real estate investment trust with a sterling portfolio of assets pan-Asia Mission To deliver stable and sustainable returns to Unitholders by continually enhancing our assets and expanding our portfolio. Listed on the SGX-ST in Apr
Slide 6: Growth History
Growth History Current AUM: $3.6 billion 10 Dec 2007 2 Nov 2009 1 Mar 2010 15 Dec 2010 21 Dec 2010 3 May 2011 Acquired one- Acquired Acquired 50% Acquired one- Acquired 77 King Acquired third stake in additional 29.0% interest in 275 third stake in Street office additional 19.4% One Raffles interest
Slide 7: 1Q 2011 Highlights
K-REITaSi. 1Q 2011 Highlights
Slide 8: 1Q2011 Highlights
1Q2011 Highlights 1Q2011 Distribution per unit 34.6% y-o-y to 1.79 cents 1Q2011 Distributable income 36.1% y-o-y to $24.3 million 1Q2011 Net property income 7.6% y-o-y to $14.9 million 1Q2011 Share of results of associated companies 194.0% y-o-y to $6.2 million Overall portfolio average occupan
Slide 9: Financial Performance
K-REITaSi. Financial Performance
Slide 10: FY2010 Net Property Income up 38% y-o-y
FY2010 Net Property Income 38% y-o-y FY 2010 FY 2009 Change Property Income $84.6m $62.8m $21.8m 34.6% Net Property Income $67.3m $48.9 m $18.4m 37.7% Share of Results of $9.7m $8.2m $1.5m 18.1% Associated Companies Distributable Income to Unitholders $85.6m $70.5m $15.1m 21.4% Distribution Per Un
Slide 11: 1Q2011 Distributable Income up 36% y-o-y
1Q2011 Distributable Income 36% y-o-y 1Q 2011 1Q 2010 Change Property Income $18.7m $18.2m $0.5m 2.5% Net Property Income $14.9m $13.9m $1.0m 7.6% Share of Results of $6.2m $2.1m $4.1m 194.0% Associated Companies Distributable Income to Unitholders $24.3m $17.8m $6.4m 36.1% Distribution Per Unit (
Slide 12: 1Q2011 DPU up 4.7% q-o-q
1Q2011 DPU 4.7% q-o-q 1Q 2011 4Q 2010 Change Property Income $18.7m $21.4m -$2.7m(2) -12.6% Net Property Income $14.9m $17.5m -$2.6m(2) -14.7% Share of Results of $6.2m $3.3m $2.9m 87.4% Associated Companies Distributable Income to Unitholders $24.3m $23.2m $1.1m 4.7% Distribution Per Unit (“DPU”)
Slide 13: Healthy Balance Sheet
Healthy Balance Sheet As at As at 31 Mar 2011 31 Dec 2010 Non-current Assets $3,043.7m $3,043.9m Total Assets $3,112.1m $3,115.9m Borrowings $1,002.6m(2) $989.9m(2) Total Liabilities $1,089.1m $1,060.4m Unitholders’ Funds $2,023.0m $2,055.6m Net Asset Value (NAV) Per Unit $1.49 $1.52 Adjusted NAV Pe
Slide 14: Portfolio Analysis
K-REITaSi. Portfolio Analysis
Slide 15: Portfolio Occupancy Rate
Portfolio Occupancy Rate Singapore property portfolio is 99.0% occupied compared with core CBD of 94.4% Portfolio Occupancy 120% 100.0% 100.0% 100.0% 97.4% 99.8% 96.9% 100% Singapore core CBD occupancy = at 94.4%(2) 80% 71.8% 60% 40% 20% 0% Bugis Junction One Raffles Prudential MBFC Phase 1 275 Geor
Slide 16: Portfolio Lease Profile
Portfolio Lease Profile Well-balanced lease renewal and rent review profile All rent reviews for 2011 have been completed Portfolio Lease Profile (by Net Lettable Area) 14.3% 12.9% 10.7% 7.8% 7.2% 7.4% 6.1% 5.2% 2.9% 0.0% 2011 2012 2013 2014 2015 Leases expiring as a percentage of total portfolio NL
Slide 17: Stable Lease Portfolio
Stable Lease Portfolio Portfolio of long leases provides income stability Weighted Average Lease Expiry (WALE) Top Ten Tenants WALE 8.72 years Portfolio WALE 7.45 years Portfolio with Long-term Leases(1) by NLA Short-term Long-term leases leases1 39.0% 61.0% (1) Long-term leases are those with lease
Slide 18: Blue-Chip Tenant Base
Blue-Chip Tenant Base Stable of tenants diversified across business sectors Top Ten Tenants accounting for 55.1% of portfolio NLA Telecommunicati Retail (Exclude ons & multi- F&B and Accounting & Top Ten Tenants media services) consultancy Legal 2.4% 9.4% 1.5% services Standard Chartered Bank 9.9% 2
Slide 19: Capital Management
K-REITAS| Capital Management
Slide 20: Healthy Financial Position
Healthy Financial Position Proforma as at As at 31 Mar 2011 31 Mar 2011(3) Gross Borrowings(1) $1,306 m $1,420 m Aggregate Leverage 37.4% 39.3% All-in Interest Rate 2.74% 2.52% Interest Coverage Ratio(2) 4.4 times 4.4 times Weighted Average Term to Expiry 3.9 years 4.2 years (1) Includes borrowings
Slide 21: Debt Maturity Profile
Balance Debt Maturity Profile 82%(1) of AUM equivalent to approximately $3.0 billion(1) of assets unencumbered Low exposure to interest rate risk with majority of debt hedged to fix rates Well-staggered debt expiry profile with 4.2 years(1) term to expiry Borrowings comprise term loans and a revolvi
Slide 22: Market Review and Outlook
K-REITaSi. Market Review and Outlook
Slide 23: Singapore Office Market
Singapore Office Market Office rentals continue to strengthen $30 120% $25 97.1% 96.2% 95.4% 93.3% 95.2% 95.3% 94.4% 100% 93.1% 91.5% 91.2% 91.2% 91.9% Average Rentals $ psf pm $20 $18.80 80% Core CBD Occupancy $15.00 $15 $16.10 60% $12.90 $10.15 $9.90 $10.30 $10 $8.45 $9.00 40% $8.10 $8.00 $8.60 $8
Slide 24: Economic Outlook
Economic Outlook Singapore GDP expanded 8.3% in 1Q2011 Economy Overall growth is supported by manufacturing, construction and services industries remains Government expects full year GDP growth of 6.2% for 2011 buoyant Attractive investment environment makes Singapore the location-of- choice for glo
Slide 25: Going Forward
K-REITAS| Going Forward
Slide 26: Key Thrusts
Key Thrusts Active Acquisition Prudent Capital Asset Growth Management Management Pursue acquisition Manage assets and cost Attract creditworthy tenants opportunities in structure effectively as well as retain good Singapore and existing tenants pan-Asia Exercise prudent interest rate and foreign ex
Slide 27: Additional Information
K-REITAS| Additional Information
Slide 28: Portfolio Information
Portfolio Information Bugis Junction 77 King Street As at 31 Mar 2011 MBFC Phase One(2) One Raffles Quay Prudential Tower 275 George Street Towers Office Tower Attributable NLA (sf) 246,238 581,928 445,120 223,831(3) 224,686 148,025 Ownership 100% 33.3% 33.3% 92.8%(3) 50.0% 100% Number of tenants 11
Slide 29: Thank you
Thank you Fax: 6835 7747 http://www.kreitasia.com For enquiries, please contact Ms Casiopia Low Investor Relations & Research Tel: 6433 7622 Email: casiopia.low@kreitasia.com 29