Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — Citi APAC Property Conference 2019
28 slides from Keppel Dc Reit's conference presentation, Jun 28, 2019
Slide 1: Investor Presentation
Investor Presentation Citi APAC Property Conference in Hong Kong 27-28 June 2019
Slide 2: Important Notice
Important Notice The past performance of Keppel DC 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, uncertainties and assump
Slide 3: Contents
Contents ◼ Introduction ◼ Portfolio Update ◼ Capital Management ◼ Outlook ◼ Additional Information 3
Slide 4: Introduction
Introduction [ic Dc REIT 47
Slide 5: First pure-play data centre REIT listed in Asia on the SGX
First pure-play data centre REIT listed in Asia on the SGX ▪ 15 assets located in key data centre hubs across APAC and Europe Ireland 1. Keppel DC Dublin 1, Dublin 2. Keppel DC Dublin 2, Dublin United Kingdom 3. GV7 Data Centre, London 4. Cardiff Data Centre, Cardiff The Netherlands 5. Almere Data C
Slide 6: 1Q 2019 Highlights
1Q 2019 Highlights Steady growth in adjusted Stable income stream Low aggregate leverage DPU, increasing 6.7% to 1.92 with healthy portfolio provides financial flexibility to cents in 1Q 2019 occupancy and long WALE pursue growth Adjusted DPU (cents) Portfolio Occupancy Aggregate Leverage3 8.00 6.00
Slide 7: Portfolio Growth since Listing
Portfolio Growth since Listing maincubes Keppel DC Intellicentre 3 Keppel DC Singapore 3 Keppel DC Dublin 2 East Data Centre1 Data Centre Singapore 5 Cardiff Data Centre Milan Data Centre Intellicentre 2 31 Dec 2018 Data Centre 31 Dec 2017 AUM: $2.0b 31 Dec 2016 31 Dec 2015 AUM: $1.5b 15 assets AUM:
Slide 8: Portfolio Update
Portfolio Update yy) DC REIT 8
Slide 9: Diversified and Resilient Portfolio
Diversified and Resilient Portfolio Portfolio Update ▪ 67.4% of portfolio in Asia ▪ Healthy portfolio occupancy of ▪ Keppel DC Singapore 3 Pacific and 32.6% in Europe 93.2% and long WALE of 8.0 years ̶ Retrofitting works to make way for expansion within a client’s premises Portfolio AUM breakdown Le
Slide 10: Diversified and Resilient Portfolio
Diversified and Resilient Portfolio ◼ Quality data centres that cater to the requirements of global clientele Rental income breakdown for the month of Mar 20191 • Colocation facilities provide diverse client profile and lease expiry By trade sector: • Fully-fitted and shell & core facilities provide
Slide 11: Capital Management
Capital Management Ks ta) DC REIT
Slide 12: Prudent Capital Management
Prudent Capital Management ◼ Managing interest rate exposure: Interest rates of loans substantially Borrowings on fixed rate hedged with floating-to-fixed interest rate swaps As at 31 Mar 2019 ◼ Diversifying sources of funding: Issuance of €50m 7-year floating Fixed Floating rate notes due 2026 Rate
Slide 13: Prudent Capital Management
Prudent Capital Management Mitigating impact of currency fluctuations: Investment properties breakdown1 Debt currency breakdown (as at 31 Mar 2019) (as at 31 Mar 2019) ▪ Hedged forecasted foreign-sourced distributions till 2H 2020 through foreign currency forward contracts Italy Ireland 2.8% ▪ Adopt
Slide 14: Outlook
Outlook [ic Dc REIT 14 ff
Slide 15: Supported by Sound Industry Fundamentals
Supported by Sound Industry Fundamentals Total mobile data traffic Global co-location market predicted to increase by 31% expected to grow by 15-17% in CAGR by 2024, reaching 136 20191 exabytes per month by end 20242 Global cloud infrastructure Hyperscale operator revenues market expected to grow by
Slide 16: Positioned For Growth
Positioned For Growth The Manager will continue to strengthen Keppel DC REIT’s presence and position it to capitalise growth opportunities in the Investment merits data centre industry ✓ Proxy to fast-growing data Ireland centre sector Keppel DC Dublin 1, Dublin Keppel DC Dublin 2, Dublin United Kin
Slide 17: Committed to Deliver Value
Committed to Deliver Value ▪ Vision: To be the preferred data centre real estate investment trust, serving as a trusted partner to our stakeholders. ▪ Mission: Guided by the Keppel Group’s operating principles and core values, we will create value for our investors by growing a quality portfolio of
Slide 18: Additional Information
Additional Information [ic Dc REIT 18
Slide 19: Distributable Income
Distributable Income 1Q 2019 Financial Update +/(-) ($’000) 1Q 2019 1Q 2018 % ▪ 6.7% y-o-y growth in DPU Distributable Income to Unitholders 27,109 20,867 +29.9 mainly contributed by new acquisitions Comprising Gross Revenue 48,033 38,008 +26.4 ▪ Issued €50 million 7-year floating rate notes due 202
Slide 20: Balance Sheet Highlights
Balance Sheet Highlights As at As at +/(-) ($’000) 31 Mar 2019 31 Dec 2018 % Investment Properties 2,032,061 2,028,672 +0.2 Total Assets 2,260,245 2,259,144 - Gross Borrowings1 714,231 673,952 +6.0 Total Liabilities 811,247 783,150 +3.6 Unitholders’ Funds 1,417,667 1,444,839 (1.9) Units in Issue (’0
Slide 21: Aggregate Leverage
Aggregate Leverage As at As at +/(-) ($’000) 31 Mar 2019 31 Dec 2018 % Investment Properties1 (excluding lease liabilities commitments) 1,999,332 1,995,206 +0.2 Deposited Properties1 (excluding lease liabilities commitments) 2,195,267 2,187,396 +0.4 Gross Borrowings + Deferred Payment 714,231 673,95
Slide 22: Portfolio Overview (as at 31 Mar 2019)
Portfolio Overview (as at 31 Mar 2019) Attributable No. of Occupancy Valuation2 WALE Asia Pacific Location Interest lettable area clients1 rate (%) ($m) Lease type (years) Land lease title (sq ft) Leasehold Keppel DC Keppel lease / Singapore 100% 109,721 17 86.9 287.0 3.0 (Expiring 30 Sep 2025, Sing
Slide 23: Portfolio Overview (as at 31 Mar 2019)
Portfolio Overview (as at 31 Mar 2019) Attributable No. of Occupancy Valuation2 WALE Europe Location Interest lettable area (sq ft) clients1 rate (%) ($m) Lease type (years) Land lease title Cardiff, Triple-net Cardiff Data Centre 100% 79,439 1 100.0 67.0 12.2 Freehold United Kingdom (Shell & core)
Slide 24: Overview of Lease Arrangements: Asia Pacific
Overview of Lease Arrangements Asia Pacific Responsibilities of Owner Maintenance Lease Insurance Property Description Property Building Arrangement Refresh Capex Opex Tax Keppel lease1 / ◼ Client: Pays rent Keppel DC Singapore 1 ✓ ✓ ✓ ✓ Colocation3 ◼ Owner: Bears all expenses; responsible for facil
Slide 25: Overview of Lease Arrangements: Europe
Overview of Lease Arrangements Europe Responsibilities of Owner Maintenance Lease Insurance Property Description Property Building Arrangement Refresh Capex Opex Tax Cardiff Data Centre Triple-net lease ◼ Client: Pays rent and all outgoings; responsible for facilities management - - - - GV7 Data Cen
Slide 26: Keppel DC REIT Structure
Keppel DC REIT Structure Keppel Keppel Capital Telecommunications & Transportation Institutional and The REIT Manager can leverage The REIT Manager can leverage Public Investors the scale and resources of a larger the Sponsor‘s expertise and track asset management platform record in this industry 50
Slide 27: What is a Data Centre?
What is a Data Centre? ▪ Facilities that house servers and network equipment, supporting clients’ critical business operations ▪ Requires technical expertise and intricate understanding of the industry and clients’ needs Internet Connectivity Fire suppression and building monitoring systems Physical
Slide 28: Thank You
Thank You yy) DC REIT 28 ff