Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — Shareholder Meeting (November 2016)
16 slides from Keppel Dc Reit's shareholder meeting presentation, Nov 7, 2016
Slide 1: Extraordinary General Meeting: Proposed Acquisition of Keppel DC Singapore 3
Extraordinary General Meeting: Proposed Acquisition of Keppel DC Singapore 3 7 November 2016
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: Portfolio Growth since Listing
Portfolio Growth since Listing 2016 2015 AUM of S$1.40b1 IPO (Dec 2014) AUM of S$1.07b AUM of S$1.02b Proposed Acquisition Keppel DC Singapore 1 Keppel DC Singapore 2 maincubes Data Centre2 Keppel DC Singapore 3 Gore Hill Data Centre iseek Data Centre Intellicentre 2 Cardiff Data Centre Basis Bay Da
Slide 4: Proposed Acquisition
Proposed Acquisition 90% interest in Keppel DC Singapore 3 (KDC SGP 3), from Keppel Data Centres Holding, a 70:30 joint venture between Keppel Telecommunications & Transportation and Keppel Land Keppel DC Singapore 3 in Tampines o Young Asset: Completed in July 2015 o Long Leases: Weighted average
Slide 5: Acquisition Price & Funding
Acquisition Price & Funding Agreed Value of 90% interest in KDC SGP 3 is lower than the independent valuations by Cushman & Wakefield and Savills S$207.0m S$208.0m 2.2% Discount 2.6% Discount S$202.5m Cushman & Wakefield Savills 90% of Agreed Value Proposed Acquisition will be funded by equity w
Slide 6: Merits of Proposed Acquisition
Merits of Proposed Acquisition
Slide 7: DPU Accretive Acquisition
1 DPU Accretive Acquisition DPU Accretion from Proposed Acquisition Pro Forma DPU2 (S$ cents) After +5.7% 6.88 Before DPU Scenarios1 2015 DPU Accretion 2015 DPU (Pro Forma) 6.51 With tax 6.51 cents 7.19 cents 10.4% transparency Without tax 6.51 cents 6.88 cents 5.7% transparency Pre-Completion Post-
Slide 8: Strengthens Foothold in Singapore
2 Strengthens Foothold in Singapore Projected Utilisation in Singapore 83.2% 83.8% “Singapore’s wholesale colocation 80.6% market is projected to grow at a 77.8% compound annual growth rate of 73.4% 10% from 2016 to 2020” – Structure Research 2016 2017 2018 2019 2020 Key data centre market: Singap
Slide 9: Strengthens Foothold in Singapore (Cont'd)
2 Strengthens Foothold in Singapore (Cont’d) Strategic Location Adjacent to existing property: KDC SGP 3 will be able to integrate seamlessly with KDC SGP 2 to become a data centre campus KDC SGP 2 KDC SGP 3 Prime Asset with High Specifications Green accolade: KDC SGP 3 is the first data centre
Slide 10: Enhances Income Resilience
3 Enhances Income Resilience The enlarged portfolio provides further diversified income streams Existing Portfolio Portfolio Post Completion (Including Cardiff DC) (Including Cardiff DC, Milan DC and KDC SGP 3) Italy, Ireland, Ireland, 3.8% 7.5% 6.1% Netherlands, Netherlands, 11.2% 9.1% U.K., Sing
Slide 11: Improves Portfolio Occupancy and Lease Profile
4 Improves Portfolio Occupancy and Lease Profile Portfolio occupancy rate rises to 93.9% Lease profile improves such that not more than 17.0% will be due for renewal in any one year for the next 10 years Enlarged Portfolio Post Transaction1 Lease Expiry Profile Post Transaction1,2 76.9% Portfoli
Slide 12: Creates Stronger Platform for Growth
5 Creates Stronger Platform for Growth Lowers aggregate leverage to 27.7% Increase in debt headroom for future acquisitions Greater financial flexibility with a larger and fully unencumbered portfolio as well as higher free float Increase in Debt Headroom (S$’million) Headroom +170 (45% Regula
Slide 13: Aligns Interests with Fully Underwritten Preferential Offering
6 Aligns Interests with Fully Underwritten Preferential Offering Further aligns interests with Keppel Increase in Market Capitalisation1 DC Investment Holdings and DC REIT (S$’billion) Holdings’ irrevocable undertakings to +27.4% 1.38 subscribe for pro-rata entitlement 1.08 Allows Unitholders’ p
Slide 14: Merits of Proposed Acquisition
Merits of Proposed Acquisition 1 Distribution per Unit (DPU) accretive 2 Strengthens foothold in Singapore 3 Enhances income resilience 4 Improves portfolio occupancy and lease profile 5 Creates a stronger platform for growth 6 Aligns interests with fully underwritten preferential offering 13
Slide 15: Thank You
Thank You
Slide 16: Extraordinary General Meeting: Proposed Acquisition of Keppel DC Singapore 3
Extraordinary General Meeting: Proposed Acquisition of Keppel DC Singapore 3 7 November 2016