Keppel REIT · SGX:K71U
Keppel REIT — K-REIT Asia — Non-Deal Roadshow (August 2008)
15 slides from Keppel REIT's roadshow presentation, Aug 18, 2008
Slide 1: Investor Meetings
INVESTOR MEETINGS 18 Aug 2008 Contents Overview Resilient Portfolio Improved Capital Efficiency Market Review & Outlook Going Forward Additional Information 2 1
Slide 2: Overview of K-REIT Asia
Overview of K-REIT Asia Commercial REIT with Pan-Asian mandate Portfolio of 5 quality office assets producing steady and sustainable returns Assets under management(1): S$2,102 million Net lettable area: 114,425 sm or 1,231,673 sf Prudential Tower(2) Keppel Towers Bugis Junction One Raffles Quay & G
Slide 3: Resilient Portfolio: Broad Tenant Diversity
Resilient Portfolio 5 Broad Tenant Diversity Tenant Business Sector by Net Lettable Area @ 30 Jun 2008 Accounting & consultancy services 7.5% 4.3% Banking, insurance & financial services 8.5% Conglomerate Government agency 8.1% Hospitality & leisure 35.4% IT services & consultancy 122 tenants Others
Slide 4: Blue-chip Tenants on Long Leases
Blue-chip Tenants on Long Leases Portfolio’s Top 10 Tenants by Monthly Gross Rental Income for Jun 2008 Deutsche Bank 7.2% UBS AG 5.3% I.E.Singapore 5.1% ABN AMRO 4.7% Total 46.6% GE Pacific 4.6% of portfolio’s Intercontinental Hotels 4.3% gross rental income The Executive Centre 4.3% Credit Suisse
Slide 5: Further Appreciation in Portfolio Rents
Further Appreciation in Portfolio Rents Average Portfolio Gross Rental Rates psf per month $8.00 $7.37(1) 72% year-on-year and $7.37 22% from end-2007 $7.50 $6.86(1) $7.00 $6.50 $6.02 (1) $6.00 $5.50 $5.00 $4.43 $4.28 $4.50 $4.05 $3.71 $3.80 $4.00 $3.65 $3.50 $3.00 Jun Sep Dec Mar Jun Sep Dec Mar Ju
Slide 6: Enhanced Funding Capacity After Rights Issue
Enhanced Funding Capacity After Rights Issue Post-Rights Issue 31 Dec 2007 30 Jun 2008 Gross Borrowings $1,132.1m $581.4m Aggregate Leverage 53.9% 27.7% All-in Interest Rate 3.88% 2.66% Interest Coverage Ratio 2.3 times 1.52 times Weighted Average Term to Expiry 1.15 years 1.07 years Corporate Ratin
Slide 7: Market Review & Outlook: Stable Office Demand-Supply
Market Review & Outlook 13 Stable Office Demand-Supply Expected Future New Supply 2.8 2.62m sf 2.60m sf 2.6 0.06 2.42m sf 2.4 2.2 1.03 0.70 2.0 1.8 1.53m sf Annual Million sf 1.6 average demand: 0.12 1.4 0.39 1.62m sf (1) 0.39 2.54 1.2 0.87m sf 1.0 0.8 1.72 0.41 0.6 1.20 1.02 0.4 0.06 0.2 0.40 0.0 2
Slide 8: Singapore's Growth Supports Office Demand
Singapore’s Growth Supports Office Demand Asean Business Outlook Survey by American Chamber of Commerce 71% of American senior executives plan to expand in ASEAN within the next two years 2008 Mastercard Worldwide Centers of Commerce Index Singapore: High scores for legal/political framework and eas
Slide 9: Going Forward: Growth Strategy
Going Forward 17 Growth Strategy Organic Growth Acquisition Growth Achieve better returns through Seek growth acquisitions in proactive management and active Singapore and overseas that will leasing of properties potentially value-add to the portfolio Asset Enhancement Identify asset enhancement ini
Slide 10: Leveraging on Key Strengths
Leveraging on Key Strengths Pan-Asian office- Office-focused focused S-REIT Pursue pan-Asian acquisition opportunities Portfolio of prime and grade-A office buildings Quality assets Buildings located at convenient locations within/near CBD and tenants Quality tenants with diverse trade mix Stable in
Slide 11: Additional Information: Snapshot of K-REIT Asia
Additional Information 21 Snapshot of K-REIT Asia Manager K-REIT Asia Management Limited Property Portfolio 5 quality commercial office assets valued at $2.1 billion Listing Date 28 Apr 2006 on Singapore Stock Exchange Market Capitalisation $909 million as at 15 Aug 2008 Unit Price $1.40 Number of U
Slide 12: 1H 2008 DPU Outperformed Forecast by 13.2%
1H 2008 DPU Outperformed Forecast by 13.2% 1H 2008 1H 2008 1H 2007 ($'000) Actual Forecast (1) % Chg Actual % Chg Property Income 24,495 24,258 1.0 18,718 30.9 Property Expenses (6,180) (5,685) 8.7 (4,973) 24.3 Net Property Income 18,315 18,573 (1.4) 13,745 33.2 Investment and Interest Income 21,872
Slide 13: 1H 2008 Income Contribution Up 191% Y-o-Y
1H 2008 Income Contribution Up 191% Y-o-Y 1H 2008 1H 2007 2Q 2008 2Q 2007 ($'000) Actual Actual % Chg Actual Actual % Chg Prudential Tower 3,627 2,450 48.0 1,795 1,167 53.8 Keppel Towers & GE Tower 9,525 6,508 46.4 4,847 3,645 33.0 Bugis Junction Towers 5,163 4,787 7.9 2,532 2,471 2.5 Total Net Prop
Slide 14: Prudential Tower Property; Keppel Towers & GE Tower
Prudential Tower Property 30-storey Grade-A building Prudential Tower Located at Raffles Place, within a 5-minute walk from MRT station 44.4% of building’s strata area owned by K-REIT Asia Winner of prestigious office/ industrial category of the FIABCI Prix d'excellence 2003 Awards Key Property Info
Slide 15: Bugis Junction Towers; One Raffles Quay
Bugis Junction Towers 15-storey office tower located along Victoria Street, Bugis Junction Towers Directly linked to Bugis MRT station Part of an integrated development known as Bugis Junction with a popular retail mall and the five-star InterContinental Singapore hotel Key Property Information Net