Kore Us Reit · SGX:CMOU
Kore Us Reit — Keppel Pacific Oak US REIT — Shareholder Meeting (April 2022)
25 slides from Kore Us Reit's shareholder meeting presentation, Apr 20, 2022
Slide 1: Annual General Meeting
Annual General Meeting 20 April 2022
Slide 2: Important Notice
Important Notice The past performance of Keppel Pacific Oak US REIT is not necessarily indicative of its future performance. Certain statements made in this release may not be based on historical information or facts and may be “forward-looking” statements due to a number of risks, Content Outline u
Slide 3: FY 2021 Key Highlights
FY 2021 Key Highlights Bridge Crossing Nashville, Tennessee
Slide 4: Continued Growth in FY 2021
Continued Growth in FY 2021 DPU and Distributable Income outperformed FY 2020 Strengthened foothold in key growth markets with Distributable Income Distribution Per Unit two accretive acquisitions in 2021 – 105 Edgeview (US$ million) (US cents) (Denver) and Bridge Crossing (Nashville)(1) 6.23 6.34 6
Slide 5: FY 2021 Key Highlights
FY 2021 Key Highlights Continued Growth Stable Robust in Operating Income Income Stream Financial Position Strong Total Unitholder Return Leases Signed in FY 2021 Stable Operating Performance 27.2% 14.3% Portfolio NLA 91.9% KORE delivered total Unitholder return ~730, 619 sf signed in FY 2021. Lease
Slide 6: 2021 Sustainability Achievements
2021 Sustainability Achievements Sustainability is at the core of our strategy and we are committed to delivering sustainable distributions to Unitholders LEED Gold 1 GHG 30% ✓ The Plaza Buildings Female Board Directors Emissions reduction for are female Scopes 1 and Representation Westmoor Center 3
Slide 7: Commitment to ESG Excellence
Commitment to ESG Excellence Environmental Stewardship Responsible Business People & Community Achieve 30% greenhouse gas Uphold strong corporate governance, Maintain at least 30% female emission reduction by 2030, robust risk management, as well as directors on the Board from 2019 timely and transp
Slide 8: 1Q 2022 Key Business and Operational Updates
1Q 2022 Key Business and Operational Updates Tenant lounge, 1800 West Loop South Houston, Texas
Slide 9: Financial Performance
Financial Performance Financial Highlights Distributable Income for 1Q2022 was up 10.9% year-on-year to US$16.6m 1Q 2022 1Q 2021 % due to: (US$ ’m) (US$ ’m) Change • The acquisitions of Bridge Crossing in Nashville and 105 Edgeview in Denver in Gross Revenue 37.0 34.6 6.9 August 2021. Strong balance
Slide 10: Proactive Capital Management
Proactive Capital Management 100% unsecured loans and low aggregate leverage provide greater financial flexibility As at 31 March 2022 Debt Maturity Profile Total Debt • US$567.4 million of external loans 100% of Loans Unsecured • 100% unsecured 27.3% 22.0% 21.1% Available Facilities • US$50.0 milli
Slide 11: Quality Portfolio Driven By Tech and Innovation
SEATTLE – BELLEVUE/REDMOND, Washington ATLANTA, Georgia Quality Portfolio The Plaza Buildings Bellevue Technology Center Occupancy: 95.7% The Westpark Portfolio Powers Ferry Occupancy: 67.6% Northridge Center I & II Occupancy: 78.4% Occupancy: 88.9% Driven By Occupancy: 96.8% NASHVILLE, Tennessee Te
Slide 12: Steady Income with Visible Organic Growth
Steady Income with Visible Organic Growth New Renewal Expansion New leasing demand and expansions from: ~146,768sf Leased spaces for 1Q 2022, equivalent to Professional Services(1) 41.3% 2.9% of portfolio NLA. Portfolio WALE of 21.2% 47.0% 3.7 years(3) by CRI. Finance and Insurance 33.4% Leases sign
Slide 13: Resilient Portfolio with Diversified Tenant Base
Resilient Portfolio with Diversified Tenant Base KORE’s buildings and business campuses in ~47% of KORE’s portfolio NLA comprises the tech hubs of Seattle – Bellevue/Redmond, of high-quality tenants from the growing and Austin and Denver contribute ~61% of NPI(1) defensive sectors of TAMI, medical a
Slide 14: Low Tenant Concentration Risk
As at 31 March 2022 Low Tenant Top 10 Tenants Comdata Inc Sector Technology Asset Bridge Crossing Location Nashville % of CRI 3.5 Concentration Ball Aerospace Technology Westmoor Center Denver Seattle – 3.2 Lear Cooperation Technology The Plaza Buildings 2.7 Bellevue/Redmond Risk Gogo Business Aviat
Slide 15: Last 12 Months Rent Growth
Last 12 Months Rent Growth 0.7% Key Growth Markets Average 1.2% United States Average 0.7% Gateway Cities Average -0.1% US Average Seattle, Bellevue CBD 0.6% Seattle, Eastside Bellevue 2.6% Seattle, Redmond 2.6% Austin, Northwest 2.4% Denver, Northwest 0.9% Denver, Broomfield Nashville, Brentwood 1.
Slide 16: Projected 12-Month Rent Outlook
Projected 12-Month Rent Outlook KORE’s average in-place rents are 8.9% below asking rents, which will continue to drive organic growth Key Growth Markets Average United States Average 3.4% 3.2% 3.2% Gateway Cities Average 2.8% US Average Seattle, Bellevue CBD 3.6% Seattle, Eastside Bellevue 3.7% Sea
Slide 17: Actual Against Projected 12-Month Market Rent Growth
Actual Against Projected 12-Month Market Rent Growth Rent growth* for the last 12 months outperformed projections for KORE’s portfolio 4.0% 3.0% 3.0% 2.6% 2.6% 2.4% 1.7% 2.0% 1.0% 0.6% -0.5% 0.6% -1.0% 0.3% 0.1% 0.0% 0.9% -1.0% -1.7% -1.9% -0.9% -2.0% -2.9% -1.2% -1.6% -3.6% -2.0% -3.0% -4.0% -4.8%
Slide 18: First Choice Submarkets Outlook
First Choice Submarkets Outlook Property Submarket Last 12M Last 12M Under Last 12M Projected Submarket Vacancy Rate Vacancy Rate Deliveries Absorption Construction Rental Growth Rental Growth Property (%) (%) (sf’000) (sf’000) (sf’000) (%) (%) Seattle, Bellevue CBD 11.1 5.7 1100 1000 4,267(1)* 0.6
Slide 19: Market Outlook
Market Outlook Iron Point Sacramento, California
Slide 20: US Economic Progression
US Economic Progression Muted economic activity expected in 1Q 2022 % Unemployment Rate % Labour Force Participation Rate • US real GDP increased by 6.9% q-o-q in 16 66 4Q 2021 (1). 14 65 • Unemployment rate was 3.6% in March 12 2022, down from the high of 14.8% in April 64 2020’s recession(2). In F
Slide 21: Positive Economics in KORE's Key Growth Markets
Positive Economics in KORE’s Key Growth Markets KORE’s key growth markets continue to outperform national average Real GDP Percent Change at Annual Rate(1) Fourth Quarter, 2021 Key Growth Markets Average 8.9% 6.9% United States Average 6.9% US Average Gateway Cities Average 7.6% Seattle 8.3% Austin
Slide 22: Pandemic Migration Observed Across The US
Pandemic Migration Observed Across The US Popularity of suburban states soar as the pandemic fueled widespread movement % Change in Resident Top 20 Fastest Growing States in the US(5) Sunbelt markets seeing better than average Population in 2021 real estate market performance. 1 Utah 19.3 2 Idaho 18
Slide 23: Return to Office On Track to Improve
Return to Office On Track to Improve Suburban Markets Lead the Way as Tenants Target Amenity-rich Buildings ― Tenants appear to have long-term confidence in the office Texas metro areas lead in office occupancy. market as more companies are expanding their footprints than contracting(1) . Top 10 US
Slide 24: First choice US office S-REIT focused on the fast-growing TAMI, medical and healthcare sectors
Strategic presence in some of the fastest growing states in the US. First choice Exposure to the fast-growing TAMI, medical and healthcare sectors provides US office S-REIT income resilience. focused on the fast-growing TAMI, medical and Highly diversified portfolio with low tenant concentration ris
Slide 25: Thank You
Thank You For more information, please visit www.koreusreit.com Connect with us on: The Plaza Building Seattle – Bellevue/Redmond
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