Keppel Ltd. · SGX:BN4

Keppel — Keppel REIT — 9M 2024 Earnings Presentation

31 slides from Keppel's earnings presentation, Oct 22, 2024

  1. Slide 1: 3Q 2024 Key Business and Operational Updates

    3Q 2024 Key Business and Operational Updates 22 October 2024

  2. Slide 2: Content

    Content 1. 9M 2024 Key Highlights - Pg 3 4. Market Review – Pg 16 2. Financial Highlights 5. Additional Information – Pg 5 – Pg 21 3. Portfolio Review – Pg 8 2 BLUE STREET, SYDNEY © Keppel REIT 2

  3. Slide 3: 9M 2024 Key Highlights

    9M 2024 Key Highlights Property Income Net Property Income $193.7m $148.5m +12.3% y-o-y +10.8% y-o-y $193.7m $148.5m $134.0m $172.6m 9M 2023 9M 2024 9M 2023 9M 2024 % Aggregate All-in Borrowings on Leverage Interest Rate Fixed Rates 41.9% 3.38% p.a. 68% KEPPEL BAY TOWER, As at 30 Sep 2024 For 9M 202

  4. Slide 4: 9M 2024 Key Highlights

    9M 2024 Key Highlights Higher Portfolio Committed Occupancy 97.6 % vs 97.0% as at 30 Jun 2024 Long Portfolio WALE 4.6 years (1) Top 10 tenants’ WALE at 8.2 years(1) Robust Rental Reversion +10.2 % Proactive Leasing Strategy ~ 869,100 sf Total leases committed in 9M 2024 KR GINZA II, © Keppel REIT TO

  5. Slide 5: Financial Highlights

    02 Financial KEPPEL BAY TOWER, SINGAPORE Highlights 5

  6. Slide 6: Higher Property Income Supported by Strong Operational Performance and Contributions

    Higher Property Income Supported by Strong Operational Performance and Contributions from 2 Blue Street and 255 George Street • Property Income and NPI increased 12.3% and 10.8% year-on-year respectively due mainly to higher occupancy at Ocean Financial Centre and KR Ginza II, as well as contributio

  7. Slide 7: Disciplined Capital Management

    As at 30 Sep 2024 Disciplined Capital Management Interest Coverage Ratio (2) 3.0x Adjusted Interest Coverage Ratio(3) 2.7x • Aggregate leverage at 41.9% with 68% of borrowings All-in Interest Rate 3.38% p.a. on fixed rates Aggregate Leverage 41.9% • AUD, KRW and JPY denominated loans formed ~17%, We

  8. Slide 8: Portfolio Review

    03 Portfolio OCEAN FINANCIAL CENTRE, SINGAPORE Review 8

  9. Slide 9: Diversified Portfolio of Prime Commercial Assets in Asia Pacific

    Diversified Portfolio of Prime Commercial Assets in Asia Pacific $9.5b portfolio of prime quality assets anchored across different markets enhance income stability and long-term growth opportunities T Tower, Seoul 99.4% Interest Japan KR Ginza II, Tokyo South Korea 98.5% Interest Occ: 100.0% 3.1% 0.

  10. Slide 10: Performance Breakdown by Geography

    Performance Breakdown by Geography Singapore Portfolio North Asia Portfolio 9M 2024 191.3 9M 2024 10.7 NPI(1) 3.8% NPI(1) (S$m) (S$m) 15.5% 9M 2023 184.3 9M 2023 9.3 3Q 2024 98.9 3Q 2024 100.0 Committed Occupancy Committed Occupancy (%) (%) 2Q 2024 98.9 2Q 2024 100.0 Australia Portfolio Performance

  11. Slide 11: 9M 2024 Portfolio Performance

    9M 2024 Portfolio Performance (By Attributable Committed Gross Rent) Leases Committed by Geography Leases Committed by Type As at 30 Sep 2024 New, Singapore, 82.1% By Attributable Australia, By Attributable 42.5% 97.6% Committed 17.0% Committed Portfolio committed Renewal, Gross Rent 57.5% Gross Ren

  12. Slide 12: Well-Spread Lease Expiry Profile

    Well-Spread Lease Expiry Profile • Average signing rent for Singapore office leases(1) concluded in 9M 2024 was $12.93 psf pm, supported by healthy demand from diverse sectors for prime office space • Average expiring rents of Singapore office leases(2) (psf pm): $10.34 in 2024, $11.14 in 2025 and $

  13. Slide 13: Established and Diversified Tenant Base

    Established and Diversified Tenant Base (By Attributable Gross Rent) • Keppel REIT has a diversified tenant base of 487(1) • Top 10 tenants contribute 31.0% of committed tenants, many of which are established blue-chip attributable gross rent corporations Top 10 Tenants Tenant Business Sector % Stat

  14. Slide 14: Updates on One Raffles Quay's Asset Enhancement Initiatives

    Updates on One Raffles Quay’s Asset Enhancement Initiatives North Tower South Tower Upgraded Concierge Counter Refreshed Main Lobby Refurbished Seating Area South Tower Lobby Refurbished Seating Area Refreshed Lift Lobby Digital Directory Newly Installed Artwork © Keppel REIT 14

  15. Slide 15: ESG Activities in 3Q 2024

    ESG Activities in 3Q 2024 At Victoria Police Centre, a In support of Cancer Council’s complimentary bicycle servicing Daffodil Day, a donation drive exercise was extended to was hosted at 8 Exhibition tenants who rode bicycles to Street, where proceeds were work, with donations made to donated to th

  16. Slide 16: Market Review

    04 Market Review 255 GEORGE STREET, SYDNEY 16

  17. Slide 17: Singapore Office Market

    Singapore Office Market • Average core CBD Grade A office rents remained at $11.95 psf pm with average occupancy in core CBD at 93.4% in 3Q 2024 Grade A Rent and Core CBD Occupancy Demand and Supply (million sf) 1.7 0.9 0.8 1.0 0.8 0.7 0.6 0.6 94.8% 95.8% 94.8% 95.1% 0.5 $15 93.8% 93.3% 94.7% 94.4%

  18. Slide 18: Australia Office Market

    Australia Office Market 96.0% 95.2% 87.5% 88.6% 85.3% 84.1% 84.6% 83.3% 84.5% 100% 90.4% 89.9% 84.0% Sydney CBD 1,500 1,200 1,032 1,045 80% North Sydney 1200 75.5% 79.9% 76.7% 78.4% 79.2% 79.9% 100% 90% 80% 930 919 955 956 961 982 70% 900 885 60% 900 729 688 651 670 693 686 673 670 60% 676 50% Prime

  19. Slide 19: Seoul Office Market

    Seoul Office Market • CBD Grade A vacancy remains low with occupancy at 97.2% in 3Q 2024 CBD Grade A Rent and Occupancy 97.0% 98.5% 98.3% 98.4% 97.2% 200,000 90.7% 89.2% 100% 86.7% 82.7% 160,000 80% 140,496 143,237 133,152 138,865 121,356 120,000 60% 92,325 97,572 98,926 91,656 80,000 40% 40,000 20%

  20. Slide 20: Tokyo Office Market

    Tokyo Office Market • Occupancy in Tokyo central 5 wards continues to be high in 3Q 2024 for Grade A office at 96.9% and Grade B office at 97.0% Tokyo Central 5 Wards Grade A Rent and Occupancy Tokyo Central 5 Wards Grade B Rent and Occupancy 99.6% 99.8% 99.1% 99.0% 99.4% 98.7% 97.8% 97.0% 97.0% 96.

  21. Slide 21: Additional Information

    2 BLUE STREET, SYDNEY 05 Additional Information 21

  22. Slide 22: Portfolio Information: Singapore

    Portfolio Information: Singapore As at Marina Bay Financial Ocean Financial Centre One Raffles Quay Keppel Bay Tower 30 Sep 2024 Centre(4) Attributable NLA 697,434 sf 1,018,104 sf 442,484 sf 386,224 sf Ownership 79.9% 33.3% 33.3% 100.0% BNP Paribas, DBS Bank, TikTok, Keppel, The Executive Centre, Pr

  23. Slide 23: Portfolio Information: Australia, South Korea & Japan

    Portfolio Information: Australia, South Korea & Japan As at 255 George 8 Chifley Pinnacle Office 8 Exhibition Victoria Police David Malcolm 2 Blue Street(3), T Tower, KR Ginza II, 30 Sep 2024 Street(4), Square, Park, Street(5), Centre, Justice Centre, Sydney Seoul Tokyo Sydney Sydney Sydney Melbourn

  24. Slide 24: Singapore Portfolio Valuations (As at 30 June 2024)

    Singapore Portfolio Valuations (As at 30 June 2024) Valuation based on Variance 31 Dec 2023 30 Jun 2024 30 Jun 2024 Cap Rate (%) attributable interest S$ % Ocean Financial Centre S$2,149.3m S$2,154.9m S$5.6m 0.3% S$3,090 psf 3.40 (79.9% interest) Towers 1 & 2, and S$1,794.0m S$1.0m 0.1% S$3,128 psf

  25. Slide 25: Australia Portfolio Valuations (As at 30 June 2024)

    Australia Portfolio Valuations (As at 30 June 2024) Valuation based on Local Currency (A$) Variance S$ Variance 30 Jun 2024 Cap Rate (%) attributable interest 31 Dec 2023 30 Jun 2024 A$ % 31 Dec 2023 30 Jun 2024 S$ % 2 Blue Street(1) A$18,578 A$287.0m A$263.5m A$(23.5m) (8.2) S$253.3m S$236.9m S$(16

  26. Slide 26: North Asia & Total Portfolio Valuations (As at 30 June 2024)

    North Asia & Total Portfolio Valuations (As at 30 June 2024) Valuation based on Local Currency (KRW/JPY) Variance S$ Variance 30 Jun 2024 Cap Rate (%) attributable interest 31 Dec 2023 30 Jun 2024 KRW/JPY % 31 Dec 2023 30 Jun 2024 S$ % T Tower(1) KRW 24.5m KRW 305.8b KRW 305.8b - - S$316.8m S$298.1m

  27. Slide 27: Committed to Delivering Stable Income & Sustainable Returns

    Committed to Delivering Stable Income & Sustainable Returns Portfolio Optimisation • Improve yield by enhancing Keppel REIT’s portfolio of quality assets through strategic acquisitions and divestments Portfolio • Provide income stability and long-term capital appreciation of portfolio, anchored Opti

  28. Slide 28: Well-Executed Portfolio Optimisation Strategy

    Well-Executed Portfolio Optimisation Strategy Expanded footprint Expanded footprint to Australia: Expanded footprint to Japan: 77 King Street (100%), Sydney, and to South Korea: KR Ginza II (98.5%), 275 George Street (50%), Brisbane Acquired T Tower (99.4%), Seoul Tokyo - David Acquired Malcolm Acqu

  29. Slide 29: Continued Focus on ESG Excellence to Attract Quality Tenants

    Continued Focus on ESG Excellence to Attract Quality Tenants Sustainable ESG Benchmarks and Future Ready Portfolio with • MSCI ESG Rating ESGatExcellence maintained ‘A’ • ISS Governance Risk Rating maintained at lowest risk level of “1” and ESG Corporate Rating maintained at “Prime” Sustainability s

  30. Slide 30: Thank you

    Thank you

  31. Slide 31: Important Notice

    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, uncertain

Keppel REIT — 9M 2024 Earnings Presentation on 6ix