Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — 1H 2022 Earnings Presentation
27 slides from Keppel Dc Reit's earnings presentation, Aug 23, 2022
Slide 1: Investor Presentation Aug 2022
Investor Presentation Aug 2022
Slide 2: Outline
Outline Key Highlights 3 Financial Results 7 Portfolio Updates 13 Outlook 17 Additional Information 21 Constituent of: Awards and Certifications: FTSE Straits FTSE EPRA Nareit Global MSCI Singapore GPR 250 Times Index Developed Index Small Cap Index Index Series 2
Slide 3: Key Highlights
Key Highlights 3
Slide 4: 1H 2022 Key Highlights
1H 2022 Key Highlights Sustainable Financial Resilient & Diversified Healthy Balance Growth Portfolio Sheet Higher Distributable Income Growth in AUM Aggregate Leverage3 $91.2m $3.5b 35.3% for 1H 2022, 8.2% higher y-o-y, due mainly to as at 30 Jun 2022. as at 30 Jun 2022. contributions from accretiv
Slide 5: Key Highlights: Accretive Acquisitions in Guangdong
Guangdong Data Centre 3 (Left) & Guangdong Data Centre 2 (Right), China Key Highlights: Accretive Acquisitions in Guangdong ▪ DPU-accretive acquisitions of Guangdong Data Centre 2 and 3 in Jiangmen, Guangdong Province ̶ DPU accretion of 2.7%1 ̶ Master leased on a triple net basis2 for 15 years3 to G
Slide 6: Focused on Growing Data Centre Portfolio
Focused on Growing Data Centre Portfolio Keppel DC REIT Assets under Management $3.5b1 21 data centres across 9 countries as at 30 June 2022 AUM Breakdown (as at 30 Jun 2022)3 Asia Pacific 69.8% Europe 30.2% Singapore 55.7% UK 6.1% Malaysia 0.6% Netherlands 7.0% China 4.1% Ireland 8.0% Australia 9.4
Slide 7: Financial Results
Financial Results CGy-T] DC REIT 72
Slide 8: Higher Distributable Income and DPU
Higher Distributable Income and DPU • Higher distributable income and DPU in 1H 2022 was mainly due to contributions from the: o Acquisitions of Guangdong Data Centre, London Data Centre and Eindhoven Campus o NetCo debt securities o Asset enhancement initiatives (AEI) at DC1 and the Dublin assets o
Slide 9: Delivering Sustainable DPU Growth
Delivering Sustainable DPU Growth +/(-) • Increase in gross revenue was partially offset by: ($’000) 1H 2022 1H 2021 o Net lower contributions from the Singapore % colocation assets; Distributable Income 91,158 84,256 +8.2 o Divestment of iseek Data Centre; o Depreciation of the EUR, AUD and GBP Com
Slide 10: Healthy Balance Sheet
Healthy Balance Sheet As at As at +/(-) ($’000) 30 Jun 2022 31 Dec 2021 % Investment Properties 3,465,109 3,401,436 +1.9 Total Assets 3,885,696 3,780,150 +2.8 Gross Borrowings1 1,353,726 1,289,580 +5.0 Total Liabilities 1,494,868 1,444,474 +3.5 Unitholders’ Funds 2,348,255 2,293,247 +2.4 Units in Is
Slide 11: Well-staggered Debt Maturity Profile
Well-staggered Debt Maturity Profile ▪ Obtained credit facilities for RMB 480 mil and EUR 30 mil for 5 years in 3Q 2022 ▪ Diversified sources of funding with issuance of EUR 75 mil fixed rate notes due in 2028 As at Change from Debt Maturity Profile 30 Jun 2022 31 Mar 2022 as at 30 Jun 2022 ~$537.4
Slide 12: Proactive Management of Interest Rates and Forex
Proactive Management of Interest Rates and Forex Majority of loans hedged through floating-to- Debt currency breakdown Investment properties breakdown2 fixed interest rate swaps (as at 30 Jun 2022) (as at 30 Jun 2022) Italy Floating Ireland 1.7% 24% 8.2% Fixed EUR Netherlands 76% Debt 42.7% SGD 7.1%
Slide 13: Portfolio Updates
Portfolio Updates [CAS De REIT wy
Slide 14: Proactive Portfolio Management
Almere Data Centre, the Netherlands Proactive Portfolio Management ▪ Strong portfolio occupancy and WALE of 98.2%1 and 7.6 years2 respectively ▪ Continued leasing momentum3 with healthy renewals and expansion by existing clients ▪ Built-in income and rental escalations based on Consumer Price Index
Slide 15: Income Stability Underpinned by Diversified Client Mix
Income Stability Underpinned by Diversified Client Mix ▪ High-quality client base of largely investment grade or equivalent credit profile ▪ Well-diversified client base Rental Income by Trade Sector Rental Income by Type of Contracts Top 10 Clients (for the month of Jun 2022)1 (for the month of Jun
Slide 16: Commitment to ESG Excellence
Commitment to ESG Excellence Environmental Stewardship Responsible Business • Signatory of the Climate Neutral • Dedicated Board ESG Committee Data Centre Pact in Europe Environmental o To develop and articulate ESG Stewardship strategy • Renewable electricity procured for o Provide oversight of sus
Slide 17: Outlook
Outlook CGS] DC REIT 171 ff
Slide 18: Data Centre Growth Supported by Strong Global Demand
Data Centre Growth Supported by Strong Global Demand Keppel DC Singapore 3, Singapore • Worldwide end-user spending on public cloud services to grow 20.4% to US$494.7 bil in 2022 and to nearly US$600.0 bil by 20231 • Worldwide spend on data systems to grow 5.5% to US$218.6 mil in 2022 and to US$230.
Slide 19: Value Creation for Stakeholders
Value Creation for Stakeholders Diversified portfolio of data centres with a predominantly Asia focus Diversified global portfolio • Strong operational expertise and proven growth track record with strong Asia Pacific • Proactive asset management to optimise portfolio returns • Large and stable clie
Slide 20: Thank You
Thank You Important Notice: The past performance of Keppel DC 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
Slide 21: Additional Information
Additional Information CGy-T] DC REIT 21 ff
Slide 22: Portfolio Overview (as at 30 June 2022)
Portfolio Overview (as at 30 June 2022) Attributable No. of Occupancy rate WALE Location Interest lettable area Valuation2 Lease type Land lease title clients1 (%) (years)3 (sq ft) Asia Pacific Leasehold Keppel lease / (Expiring 30 Sep 2025, Keppel DC Singapore 1 Singapore 100% 109,721 24 92.64 S$33
Slide 23: Portfolio Overview (as at 30 June 2022)
Portfolio Overview (as at 30 June 2022) Attributable lettable No. of Occupancy Location Interest Valuation2 Lease type WALE (years)3 Land lease title area (sq ft) clients1 rate (%) Europe London, £57.0m4 Triple-net London Data Centre 100% 94,867 1 100.0 17.0 Freehold United Kingdom (S$104.0m) (Shell
Slide 24: Overview of Contractual Arrangements
Overview of Contractual Arrangements Responsibilities of Owner Maintenan Contractual Insurance Asia Pacific Property Description Building Refresh Arrangement Capex Opex Tax ce Keppel lease1 / ◼ Client: Pays rent Keppel DC Singapore 1 ✓ ✓ ✓ ✓ Colocation2 ◼ Owner: Bears all expenses; responsible for f
Slide 25: Overview of Contractual Arrangements
Overview of Contractual Arrangements Responsibilities of Owner Maintenance Contractual Europe Description Insurance Arrangement Property Building Refresh Capex Opex Tax London Data Centre Triple-net lease ◼ Client: Pays rent and all outgoings; responsible for facilities management - - - - Cardiff Da
Slide 26: ESG Targets and Commitments
ESG Targets and Commitments Environmental Stewardship Responsible Business People & Community Align reporting with the Obtain and maintain green certification for all Engage with local communities and recommendations of the Taskforce on Singapore colocation assets by 2025 and obtain contribute to Ke
Slide 27: Keppel DC REIT Structure
Keppel DC REIT Structure as (at 30 Jun 2022) Keppel Keppel Capital Telecommunications & Transportation Institutional and The REIT Manager can leverage The REIT Manager can leverage Public Investors the scale and resources of a the Sponsor‘s expertise and track larger asset management record in this