Investor Presentation August 2020
Outline ▪ Overview 3 ▪ Navigating the COVID-19 Situation 7 ▪ 2Q 2020 Review 12 ▪ Additional Information 23 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 information or facts and may be “forward - looking” statements due to a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments or shifts in expected levels of property rental income, changes in operating expenses, including employee wages, benefits and training, property expenses and governmental and public policy changes, and the continued availability of financing in the amounts and terms necessary to support future business. Prospective investors and unitholders of Keppel REIT (“Unitholders”) are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of Keppel REIT Management Limited, as manager of Keppel REIT (the “Manager”) on future events. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained in this presentation. None of the Manager, the trustee of Keppel REIT or any of their respective advisors, representatives or agents shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. The value of units in Keppel REIT (“Units”) and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request the Manager to redeem their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on Singapore Exchange Securities Trading Limited (“SGX - ST”) . Listing of the Units on SGX-ST does not guarantee a liquid market for the Units. 2
Growth since Listing in 2006 Expanded footprint Expanded footprint to Australia: to South Korea: 77 King Street (100%), Sydney, and T Tower (99.4%), Seoul 275 George Street (50%), Brisbane Listed on SGX >$600m AUM $7.9b (1) AUM 4 assets in Acquired Acquired Acquired Acquired Singapore - 8 Chifley Square (50%), - David Malcolm Justice three retail units at 311 Spencer Street 9 assets in Singapore, Sydney Centre (50%), Perth 8 Exhibition Street, development (50%), Australia & South Korea - Ocean Financial Centre - 8 Exhibition Street (50%), Melbourne Melbourne 2020 (87.5%), Singapore Melbourne 2019 2018 2017 2016 2015 2014 2013 2006 2012 2011 2010 2009 2007 Acquired Increased Asset swap: Increased stake Divested Divested Divested Divested One Raffles stake in Keppel Towers and in Ocean Financial Prudential Tower, 77 King Street, 20% minority stake Bugis Junction Quay (33.3%), Prudential GE Tower for Centre (to 99.9%), Singapore Sydney in Ocean Financial Towers, Singapore Singapore Towers, MBFC Towers 1 & 2 Singapore Centre (to 79.9%), Acquired Singapore and MBLM (33.3%), Singapore MBFC Tower 3 (33.3%), Singapore Singapore 1) Based on assets under management as at 30 June 2020. 3
Sustainable Pan-Asian Portfolio with Income Resilience 98.6% Strong committed occupancy with long weighted average lease expiry of 4.6 years Marina Bay One Raffles Ocean Financial Financial Centre Quay Centre (1) 5.1% Annualised distribution yield of Grade A commercial portfolio Green Awards BCA Green Mark Platinum award for all Singapore assets; 5 Stars NABERS Energy rating for most Australian assets Note: Data as at 30 June 2020. 4 (1) Based on an annualised DPU and the market closing price of $1.10 per Unit as at 30 June 2020. 4
Portfolio Anchored by Singapore CBD Assets $7.9 billion portfolio in key business districts of Singapore, Australia and South Korea enhances income diversification and long-term stability 311 Spencer Street, T Tower, Seoul Melbourne 99.4% Interest 50% Interest South Korea (Achieved practical completion Ocean Financial 3.7% on 9 July 2020) Centre 79.9% Interest 8 Exhibition Street, Melbourne 50% Interest Singapore Marina Bay 275 George Street, Financial Centre 80.0% Australia Brisbane 33.3% Interest 50% Interest 16.3% David Malcolm Justice Centre, One Raffles Quay Perth 33.3% Interest 8 Chifley Square, 50% Interest Sydney 50% Interest Note: Based on assets under management as at 30 June 2020. 5
Resilient and Diversified Tenant Base ▪ Keppel REIT has a diversified tenant ▪ Top 10 tenants take up 37.9% of NLA base of 340 (1) tenants, many of which are and contribute 34.9% of gross rent established blue-chip corporations Top 10 Tenants Tenant Business Sector 6.6% DBS Government of Banking, insurance and financial services 40.3% 5.3% GOWA Western Australia Technology, media and telecommunications 13.3% 4.4% Standard Chartered Legal 8.8% Energy, natural resources, shipping and marine 8.0% 4.2% Ernst & Young Government agency 7.9% 4.1% BNP Paribas Real estate and property services 6.4% Marina Bay Accounting and consultancy services 5.9% 3.4% Telstra Financial Centre Services 4.4% David Malcolm 2.6% UBS Manufacturing and distribution 2.3% Justice Centre Retail and food & beverage 1.8% 2.5% One Raffles Quay Drew & Napier Hospitality and leisure 0.1% 8 Exhibition Street 2.5% Others 0.8% ANZ Ocean Financial Centre Total 100% 275 George Street 2.3% Deutsche Note: All data as at 30 June 2020 and based on portfolio committed NLA. 6 (1) Tenants with multiple leases were accounted as one tenant.
Navigating the COVID-19 Situation Ocean Financial Centre lit in blue in support of the #SeeItBlue campaign that highlights the importance of mental well-being and expresses gratitude to frontline workers battling the COVID-19 outbreak 7
Navigating the COVID-19 Situation Across Keppel REIT’s portfolio: Developments on the ground SMEs (3) in portfolio ▪ Gradual return of tenants to offices after the two- month “Circuit Breaker”; site visits by prospective tenants can resume with adherence to social distancing requirements 5.6% ▪ On 5 June 2020, the COVID-19 (Temporary Measures) (Amendment) Bill was passed in Parliament and provides for co-sharing of rental waiver to eligible small and medium of portfolio NLA enterprises (SMEs) by the government and the landlord, as well as a repayment scheme (1) for any rental deferment/arrears Tenant relief measures (3) Singapore o Eligible retail SMEs, gyms and clinics: two-month rental waiver by landlord, in Approx. $12.5m addition to the pass-through of the 100% property tax rebate and cash grant from the including estimated $9.2m of government which amounts to approximately two months of rental government property tax rebates o Eligible office SMEs: one-month rental waiver by landlord, on top of the and cash grant pass-through of the 30% property tax rebate and cash grant from the government which amounts to approximately one month of rental Rental collection 98% ▪ Facilitating return of tenants to offices as restrictions are gradually eased in most states in 2Q 2020 ▪ “Mandatory Code of Conduct” issued by the National Cabinet, focusing on SMEs with Australia turnover below $50m, which seeks to protect eligible tenants from termination of leases and entitles eligible tenants (2) to rent waivers and deferrals Rental deferrals $1.6m South ▪ Most tenants have been operating from T Tower, with adherence to social distancing advisory Korea as at 30 Jun 2020 (1) First instalment payment required no later than 1 November 2020, and full payment within nine months or the remaining term of the tenancy, whichever is shorter. (2) Only applicable to SMEs with turnover of $50m or less, and who are eligible for the federal Jobkeeper program. One of the main criteria for a business to be eligible for the 8 8 program is a projected reduction of revenue by more than 30% due to COVID-19. Rent reductions may consist of a combination of waivers and deferrals where rental waiver must be no less than 50% of the total rent reduction. (3) Estimates as at 30 June 2020. Final tenant eligibility will be dependent on the assessment by the authorities.
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