Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — Investor Presentation (January 2015)
29 slides from Keppel Dc Reit's investor presentation, January 2015
Slide 1: Investor Presentation January 2015
First data centre REIT listed in Asia Investor Presentation January 2015
Slide 2: Important Notice
Important Notice DBS Bank Ltd. and Standard Chartered Securities (Singapore) Pte. Limited are the Joint Financial Advisers and Issue Managers to the Initial Public Offering of Keppel DC REIT (the “Offering”). DBS Bank Ltd., Standard Chartered Securities (Singapore) Pte. Limited and Credit Suisse (Si
Slide 3: Keppel DC REIT: The first data centre REIT listed in Asia
Keppel DC REIT The first data centre REIT listed in Asia Market Capitalisation Offering Price Expected Distribution Yield S$856m S$0.97 per unit 6.8% (2015F) and as at 7 Jan 2015, as at 7 Jan 2015, up from S$821m as at listing up from S$0.93 as at listing 7.1% (2016F) with growth of 4.5% from 2015-1
Slide 4: Geographical Network
Geographical Network Ireland Current focus areas for growth Citadel 100 Data Centre, Dublin United Kingdom Europe Asia Pacific GV7 Data Centre, London • France • Australia Netherlands • Germany • Hong Kong Almere Data Centre, Almere Almere Data Centre 2, Almere [ROFR] • Netherlands • Japan Citadel 1
Slide 5: High Quality Portfolio
High Quality Portfolio Strategically located in key cities that are regional data centre hubs Built to high technical specifications required by mission critical operations Stable long-term leases with government-related entities and blue chip MNCs Large proportion of young properties with f
Slide 6: Keppel DC REIT Structure
Keppel DC REIT Structure Institutional and Public Keppel T&T Keppel Land Investors and Basis Bay 100% Vendor 30.1% 4.9% 65.0% Management Acts on behalf services of Unitholders REIT Manager Trustee Management Keppel DC REIT Trustee fees fees Keppel DC REIT The Trust Company (Asia) Management Pte. Ltd
Slide 7: Industry Overview
Industry Overview
Slide 8: Data Growth
Data Growth The recent trend towards “Big Data” has underscored the increasing demand for data storage. BroadGroup estimates that the amount of data created globally is expected to grow at a CAGR of 47.7% from 2013 to 2018. 7
Slide 9: What is a Data Centre?
What is a Data Centre? Specialised facility designed to house mission critical networking and computer equipment. Data centres provide highly reliable, secure environment with redundant mechanical cooling systems, electrical power systems and network communication connections. Fire suppression a
Slide 10: Strong Fundamental Growth Drivers
Strong Fundamental Growth Drivers Growing data Strong growth in data creation, usage and requirements expected to continue. 1 requirements Mission critical Data centre facilities support customers’ critical day-to-day business operations, 2 infrastructure and/or meet regulatory and compliance re
Slide 11: Investment Highlights
Investment Highlights
Slide 12: Investment Highlights
Investment Highlights 1 High Growth Industry with Significant Barriers to Entry 2 Quality Investment Portfolio 3 Located in Key Data Centre Hubs with Strong Growth Profile 4 Diversified Customer Base with Favorable Lease and Co-Location Profile 5 Attractive Yield and Opportunities for Growth 6 Conse
Slide 13: High Growth Industry with Significant Barriers to Entry
1 High Growth Industry with Significant Barriers to Entry Explosive growth in data creation driving the need for data storage A Growth in data creation and storage needs B Cloud computing, e-commerce and online shopping (Data in zettabytes(1)) 28.1 4.0 0.4 2008 2013 2018E 5.6bn users 6bn hrs of view
Slide 14: High Growth Industry with Significant Barriers to Entry [Cont]
1 High Growth Industry with Significant Barriers to Entry [Cont] Keppel DC REIT has an established installed base in the data centre market, which is challenging for new entrants to develop a presence in High barriers to entry Substantial upfront cost Data centres are designed to high technical Da
Slide 15: Quality Investment Portfolio
2 Quality Investment Portfolio Strategically located across key cities in Asia-Pacific and Europe with excellent connectivity. Long land tenure with 45.3% of portfolio(1,2) located on freehold land or tenure of >150 years. Long WALE of 7.8 years(3) by leased Lettable Area Low capex requireme
Slide 16: Located in Key Data Centre Hubs with Strong Growth Profile
3 Located in Key Data Centre Hubs with Strong Growth Profile Characteristics of key data centre hubs Advanced infrastructure, e.g. fibre connectivity Accessibility to major transportation nodes Secured power capacity Proximity to local demand Strong government support Keppel DC REIT’s mark
Slide 17: Diversified Customer Base with Favorable Lease Profile
4 Diversified Customer Base with Favorable Lease Profile Current portfolio: 34 customers (Approx. 96.1% of Keppel DC REIT’s Rental Income is derived from MNCs or government-related entities) Well diversified customer base across high value-added sectors Top 10 customers (based on Rental Income)(1)(2
Slide 18: Diversified Customer Base with Favorable Lease Profile [Cont]
4 Diversified Customer Base with Favorable Lease Profile [Cont] Balanced lease profile provides long term stability and potential positive rental reversions Keppel leases Co-location Rental formula WALE(2) S25: fixed rental of S$5m per annum + 3.0 years variable rent of 99% EBITDA(3) T25: fixe
Slide 19: Diversified Customer Base with Favorable Lease Profile [Cont]
4 Diversified Customer Base with Favorable Lease Profile [Cont] One of the longest portfolio WALEs of 7.8 years compared to other S-REITs Long lease expiry profile(1) (as at 30 September 2014) WALE of 7.8 years by leased Lettable Area as at 52.7% 30 September 2014 33.3% 32.0% 26.0% 14.7% 11.3% 8.2%
Slide 20: Attractive Yield and Opportunities for Growth
5 Attractive Yield and Opportunities for Growth Distribution yield of 6.8% in FY2015 and organic growth of 4.5% from FY2015-16 Attractive FY2015 yield of 6.8% Future drivers of distributable income growth A Majority of leases have average annual Embedded rental escalations of 2.0% - 4.0% organic
Slide 21: Attractive Yield and Opportunities for Growth [Cont]
5 Attractive Yield and Opportunities for Growth [Cont] “Rights of First Refusal” acquisition pipeline A Sponsor ROFR Income-producing data centres globally, Potential increase in aggregate Lettable Area including: (‘000 sq ft) T27, a data centre with GFA of 134,000 sq ft and approx. 47,000 sq ft o
Slide 22: Conservative Capital Structure & Sound Financial Mgmt
6 Conservative Capital Structure & Sound Financial Mgmt Conservative balance sheet and low leverage of 27.8% allows for additional leverage when growth opportunities arise Initial debt facility details Well-spread debt maturity(1) (Year ended 31 December) Approximately S$295m of term loans Total d
Slide 23: Conservative Capital Structure & Sound Financial Mgmt [Cont]
6 Conservative Capital Structure & Sound Financial Mgmt [Cont] Active financial management to optimise risk-adjusted returns to Unitholders Funding strategy Hedging policy Use of foreign currency denominated borrowings to match Hedged 100% of interest rate exposure under its initial debt the cur
Slide 24: Committed Sponsor with Proven Track Record
7 Committed Sponsor with Proven Track Record Listed company (market capitalisation of S$807 million(1)) on the SGX-ST with operations in Asia-Pacific and Europe Subsidiary of Keppel Corporation Limited, a leading Singapore-headquartered listed company (market capitalisation of S$15.3 billion(1))
Slide 25: Conclusion
Conclusion Portfolio of eight high quality and strategically located data centres in Asia-Pacific and Europe 1 High Growth Industry with Significant Barriers to Entry 2 Quality Investment Portfolio 3 Located in Key Data Centre Hubs with Strong Growth Profile 4 Diversified Customer Base with Favorabl
Slide 26: Appendix: Portfolio Information
Appendix Portfolio Information
Slide 27: Portfolio Overview (as of 30 September 2014)
Portfolio Overview (as of 30 September 2014) Lettable Area No. of Occupancy Appraised Value(2,3) 2015 GRI 2015 GRI psf 2015 NPI Property Location Interest (sq ft) Customers(1) rate (%) (S$m) (S$m) (S$) (S$m) Lease type WALE (years) Land lease title Singapore 100% 109,574 18(4) 86.0 262.8 23.8 217 21
Slide 28: Overview of Lease Arrangements
Overview of Lease Arrangements Lease type breakdown by Lease arrangement Rental Income (FY2015) Responsibilities of Lessor / Owner Keppel leases Co-location 39.8% 30.4% Management Maintenance Maintenance Day-to-day Insurance Property Facilities Building Refresh Capex Lease Opex Tax Asset Arrangement
Slide 29: Thank you
Thank you
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