Keppel REIT · SGX:K71U
Keppel REIT — Q3 2017 Earnings Presentation
24 slides from Keppel REIT's earnings presentation, Oct 17, 2017
Slide 1: Keppel REIT Third Quarter and Nine Months 2017 Financial Results
Keppel REIT Third Quarter and Nine Months 2017 Financial Results 17 October 2017
Slide 2: Outline
Outline Key Highlights 3 Financial Performance & Capital Management 4 Portfolio Review 8 Looking Ahead 13 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 informa
Slide 3: Key Highlights
Key Highlights Distributable Income $142.5 mil $ for 9M 2017 Distribution per Unit 4.27 cents for 9M 2017 Aggregate Leverage 38.8% as at 30 Sep 2017 All-in Interest Rate 2.58% p.a. for 9M 2017 Portfolio Committed 99.6% Occupancy as at 30 Sep 2017 Portfolio WALE 6 years By attributable NL
Slide 4: Financial Performance & Capital Management
Financial Performance & Capital Management Marina Bay Financial Centre, Singapore
Slide 5: Financial Performance
Financial Performance 3Q 2017 3Q 2016 9M 2017 9M 2016 Property income $40.4 mil $39.5 mil $120.1 mil $121.3 mil Net property income $31.7 mil $31.6 mil $95.0 mil $96.9 mil Share of Results of $28.6 mil $32.6 mil $88.3 mil $86.6 mil Associates and Joint Ventures Distribution to Unitholders1 $47.0 mil
Slide 6: Balance Sheet
Balance Sheet As at As at 30 Sep 2017 30 Jun 2017 % of Assets Unencumbered 84% Total assets $7,634 mil $7,658 mil Unencumbered 1 Borrowings $3,397 mil $3,335 mil Total liabilities $2,716 mil $2,783 mil Unitholders’ $4,764 mil $4,723 mil funds 16% Adjusted NAV Encumbered $1.41 $1.40 per Unit2 (1) Inc
Slide 7: Capital Management
Capital Management Weighted average term to maturity of 3.0 years 30 Sep 2017 Interest Coverage Ratio 4.4x In the midst of refinancing loans that are due in 2018 All-in Interest Rate 2.58% Aggregate Leverage 38.8% Debt Maturity Profile 24% Managing interest rate exposure 22% $50m 19% 20% 76% Fix
Slide 8: Portfolio Review
Portfolio Review 8 Chifley Square, Sydney
Slide 9: Developments at Spencer Street
Developments at 311 Spencer Street Completed acquisition of a 50% interest in 311 Spencer Street in Melbourne on 31 July 2017 Commenced construction of the Grade A office tower in August 2017 Completion expected in 4Q 2019 Yield accretive: 6.4%1 Stable income stream: 30-year lease with fix
Slide 10: Proactive Leasing Strategy
Proactive Leasing Strategy Leasing Updates for 9M 2017 62 ~532,200 sf -3% Committed Leases Leases (Attributable ~250,200 sf) Rental Reversion 91.8% ~6 years ~8 years Tenant Retention Retention Rate Portfolio WALE Top 10 Tenants’ WALE as at 30 Sep 2017 as at 30 Sep 2017 High Portfolio Committed Occup
Slide 11: Proactive Leasing Strategy (Cont'd)
Proactive Leasing Strategy (Cont’d) Completed almost all leases due for renewal in 2017, with only 0.5% of the total portfolio NLA remaining Started negotiations for some leases due for renewal and review in 2018 Portfolio Lease Expiry Profile (by Attributable NLA) 52.5% 21.2% 14.5% 11.2% 6.7% 7
Slide 12: Tenant Profile
Tenant Profile Top 10 Tenants (by Attributable NLA) Well-Diversified Tenant Base(1) Occupies 43.5% of portfolio NLA Number of Tenants: 321(2) Contributes 40.2% of gross rental income DBS 6.2% ANZ 5.7% Western Australian Govt 5.0% BNP Paribas 4.8% Telstra 4.5% Banking, insurance and financial service
Slide 13: Looking Ahead
Looking Ahead Ocean Financial Centre, Singapore
Slide 14: Singapore Office Market
Singapore Office Market Property consultants are generally of the view that sentiments are improving amidst stronger economic fundamentals. Average rental rate of Grade A office space increased q-o-q to $9.10 psf. Average occupancy in the core CBD decreased q-o-q to 92.5% 96.6% 95.7% 96.1% 96.
Slide 15: Australia Office Market
Australia Office Market National CBD office average occupancy improved marginally q-o-q to 89.1%. Australian CBD office markets saw positive leasing activities in 2Q 2017 with business confidence at healthy levels. 2Q 2017 was the first quarter in six years to have exhibited positive net absor
Slide 16: Commitment to Sustainability
Commitment to Sustainability 2nd among 13 Asian listed office entities Global Real Estate 3rd among 52 Asian listed companies Sustainability GRESB assesses the sustainability performance of property Benchmark (GRESB) 2017 companies and real estate funds globally on aspects including environmental pe
Slide 17: Operational Excellence
Operational Excellence Strategy in Action Long Term Sustainable Our goal is to generate sustainable income and Income create long-term value for Unitholders through achieving operational excellence in all that we do. Our foundation stems from: Our Strong Track Record Delivering sustainable income
Slide 18: Additional Information
Additional Information 8 Exhibition Street, Melbourne 18
Slide 19: Portfolio Overview
Portfolio Overview Best-in-Class Assets Largest Portfolio of Premium Office Assets Under Management in Strategic Locations Assets 9 quality Premium Grade and Grade A assets 3.7 million sf in the business and financial districts S$8.5 billion(1)(2) total attributable NLA(1) of Singapore and Australia
Slide 20: Premium Grade A Office Portfolio
Premium Grade A Office Portfolio Singapore* 87% Ocean Financial Centre Marina Bay Financial Centre One Raffles Quay Bugis Junction Towers (99.9% interest) (33.3% interest) (33.3% interest) (100% interest) Australia* 13% 311 Spencer Street 8 Chifley Square, 8 Exhibition Street, 275 George Street, Dav
Slide 21: Portfolio Information: Singapore
Portfolio Information: Singapore Marina Bay Ocean Financial Centre One Raffles Quay Bugis Junction Towers Financial Centre (3) Attributable NLA 880,872 1,026,344 442,806 244,579 (sf) Ownership 99.9% 33.33% 33.33% 100.0% Keppel Land, ANZ, DBS Bank, Deutsche Bank, IE Singapore, Principal tenants BNP P
Slide 22: Portfolio Information: Australia
Portfolio Information: Australia David Malcolm 311 Spencer Street, 8 Chifley Square, 8 Exhibition Street, 275 George Street, Justice Centre, Melbourne Sydney Melbourne(2) Brisbane Perth (Under construction) Attributable NLA 104,138 245,949 224,693 167,784 358,500 (sf) Ownership 50.0% 50.0% 50.0% 50.
Slide 23: Keppel REIT Structure
Keppel REIT Structure Keppel Capital Keppel Land The REIT Manager can leverage The REIT Manager can leverage the scale and resources of a larger the Sponsor‘s expertise and Institutional and asset management platform track record in this industry Public Investors 100% 2% 44% 54% Management Acting on
Slide 24: Thank You
REIT Thank You