Keppel REIT · SGX:K71U
Keppel REIT — K-REIT Asia — Investor Presentation (November 2007)
14 slides from Keppel REIT's investor presentation, November 2007
Slide 1: Investor Meeting November 2007
INVESTOR MEETING November 2007 Contents Introduction Financial Highlights Acquisition of a One-third Interest in One Raffles Quay Portfolio Performance Going Forward 2
Slide 2: Introduction
Introduction Introduction Leading pan-Asian commercial-focused S-REIT Presently a pure-office S-REIT Market capitalisation grows to $651.8m(1) from $250.1m(2) since listing on SGX-ST on 28 April 2006 Significant expansion with acquisition of a one- third interest in One Raffles Quay ¾ Portfo
Slide 3: High Quality Portfolio of Assets
High Quality Portfolio of Assets Property Prudential Tower (1) Keppel Towers and GE Tower Bugis Junction Towers One Raffles Quay (2) Net Lettable Area (sm) 10,074 40,002 22,990 124,078 Number of Tenants 14 68 12 31 McGraw-Hill Companies GE Pacific ABN Amro IE Singapore Principal Tenants The Executiv
Slide 4: Organic Growth / Solid Asset Backing
Strong Organic Growth Earnings driven by strong Strong DPU growth organic growth Net Property Income/Distributable Income ($m) 8 $7.3m $7.5m 2.50 growth +39.4% 2.23 7 $6.5m 2.14 $6.3m $6.2m 6 2.00 $5.4m 1.71 1.76 1.77 $5.2m 1.60 5 DPU (cents) $4.3m $4.3m $4.3m 1.50 $4.1m 4 $2.8m 3 1.00 2 0.50 1
Slide 5: Strong Total Return Since Listing / Prudent Capital Management
Strong Total Return Since Listing Strong total return of Total Total Return Return 240% 240% 168% outperforming 220% 220% major Singapore 200% 180% 200% 180% indices 160% 140% 160% 140% 120% 120% 100% 100% Total Return 80% 80% Since Listing 60% 60% 40% 40% K-REIT Asia(1) 168% 20% 20% 0% 0% -20% -2
Slide 6: Acquisition of a One-third Interest in One Raffles Quay
Acquisition of a One-third Interest in One Raffles Quay Significant Maiden Acquisition Acquisition of Keppel Land’s one-third stake in One Raffles Quay (ORQ) for $941.5m approved at EGM on 11 October 2007 Significant maiden acquisition ¾ Asset size more than doubles from $815m to $1.76 bn ¾ Port
Slide 7: Enlarged Portfolio with ORQ Stake / Growth Potential from Positive Rent Reversions
Enlarged Portfolio with ORQ Stake Strategically located in new downtown at Marina Bay with direct underground North North Tower Tower South South Tower Tower access to Raffles Place MRT station. Fully occupied with blue-chip tenants with long-term leases. Close to Marina Bay Sands Integrated Resort
Slide 8: Attractive Investment Proposition
Attractive Investment Proposition 1 Delivering Delivering on on Growth Growth 116% growth in portfolio value to $1,756m (1) Strategy Strategy Closer to achieving target size of $2 bn 2 Acquisition Acquisition of of aa ORQ is strategically located and is an iconic commercial property Landmark L
Slide 9: Riding on Strengthening Office Sector
Riding on Strengthening Office Sector Demand Demand and and Supply Supply of of Office Space(1) Office Space (1) Robust Singapore economy with forecast 75 94 7 – 8% real GDP growth for 2007 Cumulative Supply/Demand (m sf) 92 70 90 Strong demand from financial services Occupancy (%) 88 sector 65
Slide 10: Strong Occupancy Rates / Broad Tenant Diversity
Strong Occupancy Rates Existing Existing Portfolio Portfolio Occupancy Occupancy Committed 100% 99.7 100.0 99.4 99.6 99.6 98.4 occupancy remains 97.5 96.4 96.8 97.3 97.1 95.5 strong at 99.6%, 95% 92.9 higher than Core 90.5 CBD and Fringe 90% CBD occupancy of 97.1% and 96.5% 85% respectively (Sourc
Slide 11: Trade Sector Mix
Strong Trade Sector Mix Diverse tenant base ¾ A total of 94 tenants from various industries Financial and business services Hospitality Government agencies Pharmaceuticals and healthcare IT services and consultancy Risk diversification ¾ Top tenant by NLA contributes less than 15% of g
Slide 12: Growth Strategy / A Pan-Asian Commercial REIT
Growth Strategy Achieve better returns through Organic proactive management and active Growth leasing of properties Seek growth acquisitions in Acquisition Singapore and overseas that will Growth potentially value-add to the portfolio Identify asset enhancement Asset initiatives to better meet the n
Slide 13: Keppel Land Sponsorship
Strong Keppel Land Sponsorship Marina Marina Bay Bay Ocean Ocean Leading development expertise Financial 1 Financial Financial Centre Centre Financial Centre Centre ♦ Leading property developer with landmark commercial developments ♦ Currently owns and developing more than 4.5m sf NLA of prime offic
Slide 14: Thank You / Snapshot of K-REIT Asia
Snapshot of K-REIT Asia Manager K-REIT Asia Management Limited Property Portfolio Five quality office buildings valued at $1.76 bn (1) Listing and Trading Date 28 Apr 2006 on Singapore Stock Exchange Market Capitalisation $651.8 million (as at 7 Nov 2007) (2) Unit Price $2.68 (closing price on 7 Nov