Investor Presentation

12 August 2021

Outline

Key Highlights

Financial Results

Portfolio Updates

Outlook

Additional Information

Constituent of:

FTSE Straits

FTSE EPRA Nareit Global

MSCI Singapore

Times Index

Developed Index

Small Cap Index

3

10

14

17

21

Awards and Accreditations:

GPR 250

Index Series

2

1H 2021 Key Highlights

Strengthen

Income Stream

Strong Leasing Momentum

0.8%1

Proactive leasing efforts saw new, renewal and expansion leases secured with clients. Including the latest renewal lease signed in July 2021, only 0.8% of leases1 are expiring for the remainder of the year.

Sustainable

Growth

Stable Distributable Income

$84.3m

for 1H 2021, which was 12.4% higher y-o-y compared to 1H 2020, due mainly to contributions from accretive acquisitions and completion of asset enhancement initiative works.

Financial Flexibility

Aggregate Leverage5

36.7%

as at 30 Jun 2021, providing comfortable debt headroom to pursue growth.

High Portfolio Occupancy

Continued DPU growth

98.0%2

4.924 cents

as at 30 Jun 2021.

for 1H 2021, which was 12.5% above 1H 2020's

DPU.

High Interest Coverage

12.9 times

as at 30 Jun 2021.

Long Portfolio WALE

6.5 years3,4

by leased area.

Annualised DPU yield

3.96%

based on the market closing price of $2.490 per Unit at 30 Jun 2021.

Average Cost of Debt6

1.5%

as at 30 Jun 2021.

1.

By leased area, and 1.6% by rental income. As at 30 Jun 2021, leases expiring for the remainder of the year was 1.7% by leased area and 7.6% by rental income.

2.

Post-acquisition of Guangdong Data Centre and assuming the acquisition was completed on 30 Jun 2021, portfolio occupancy would be 98.2%.

3.

WALE by rental income was 4.9 years as a higher proportion of rental income is from colocation assets, which typically have shorter lease periods.

3

4.

Post-acquisition of Guangdong Data Centre and assuming the acquisition was completed on 30 Jun 2021, WALE would be 7.3 years by leased area and 5.3 years by rental income.

5.

Aggregate leverage was computed based on gross borrowings and deferred payment as a percentage of the deposited properties, both of which do not take into consideration the

lease liabilities pertaining to land rent commitments and options.

6.

Including amortisation of upfront debt financing costs and excluding lease charges.

Value Creation Strategy

Widened Mandate with Continued Focus on Data Centres

  • Access to wider range of opportunities such as data centre campuses with non-data centre assets (e.g. distribution centre, fibre network) and edge data centres
  • At least 90% of AUM will continue to be data centres
  • Proposed investment in debt securities and preference shares into M1's network assets1
    • Expected to be highly yield accretive,
      without having to assume any operational risks
    • Generate long-term stable income to Unitholders for 15 years

Completion of Intellicentre 3 East Data Centre (IC3 East DC) in Sydney

  • Development completed on 13 Jul 2021
  • Total development cost of A$26.0m (approx. S$26.6m2)
  • IC3 East DC and Intellicentre 2 Data Centre located within the same site in Macquarie Park, and will collectively be renamed Intellicentre Campus
  • Commencement of a new 20-year triple net master lease with Macquarie Data Centres at Intellicentre Campus

Tapping into China's Growing

Digital Economy

  • DPU-accretiveacquisition of Guangdong Data Centre in Jiangmen, Guangdong Province, that will strengthen distributions to Unitholders
  • Inroads into the fast-growing data centre market in China
  • Will improve Keppel DC REIT's portfolio occupancy and strengthen income resilience

1.

On 28 April 2021, Keppel DC REIT and M1 signed a non-binding term sheet with the intention to enter into definitive agreements with respect to the proposed investment by

4

Keppel DC REIT into a special purpose vehicle, which is intended to be established by M1 to own and operate M1's current mobile, fixed and fibre assets (collectively "network assets").

2.

Based on an exchange rate of RMB 1.00 to S$0.2076 as at 30 Jun 2021.

Guangdong Data Centre is located

within the Greater Bay Area, which includes Guangzhou, one of China's most vibrant economic regions

Maiden Data Centre Acquisition into China

Guangdong Data Centre

• 7-storey data centre designed in accordance with the

Description

Code for Design of Data Centre Grade A GB1

1 of 6 data centres buildings to be completed in the Bluesea

•

Intelligence Valley Mega Data Centre Campus

• Sale and leaseback on a triple net basis2 for 15 years

• Purchase Consideration represents 7.8% discount to

Key highlights

the independent market valuation3

• Right of first refusal to acquire remaining 5 data centres

to be developed within the campus

Lettable Area

20,595 sm (221,689 sq ft)

Land Tenure

Leasehold with approx. 46 years remaining

Purchase

RMB 635.9m (approx. S$132.0m4)

Consideration

1.

Grade A is the highest standard for data centres in the People's Republic of China ("PRC").

5

2.

With the exception of applicable real estate tax which the lessee shall bear up to a certain threshold.

3.

Based on the valuation by Savills Valuation and Professional Services (S) Pte Ltd, an independent valuation firm appointed by the trustee of Keppel DC REIT, the market value of the

property was RMB 690.0 million (approximately S$143.2 million) as at 1 Jul 2021.

4.

Based on an exchange rate of RMB 1.00:S$0.2076 as at 30 Jun 2021.

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original document
  • Permalink

Disclaimer

Keppel DC REIT published this content on 12 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 August 2021 00:10:02 UTC.