Third Quarter 2012 Financial Results 15 October 2012
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, 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. 1
Sterling Property Portfolio Nine premium Grade A office assets valued at more than $6.35 billion with a total NLA of approximately 3.0 million sf Singapore Properties Ocean Financial Centre Bugis Junction MBFC Towers 1 and 2 and One Raffles Quay Prudential Tower (99.9% interest) Towers (33.3% interest) Marina Bay Link Mall (92.8% interest) (33.3% interest) Australia Properties 275 George Street 77 King Street 8 Chifley Square Old Treasury Building Office Tower (50% interest), Office Tower, (50% interest), (50% interest), Brisbane Sydney Perth Sydney * Expected to be completed * Expected to be completed 2 in 3Q 2013. in 3Q 2015.
Contents 3Q 2012 Highlights Financial Performance Capital Management Portfolio Analysis Market Review and Outlook Going Forward Additional Information 3
3Q 2012 Highlights 4
Financial Highlights 3Q 2012 Distribution per Unit (DPU) � 84.9% y-o-y to 1.96 cents 3Q 2012 Annualised DPU � 85.3% y-o-y to 7.80 cents YTD Sep 2012 Distributable Income � 94.3% y-o-y to $150.0 million YTD Sep 2012 Property Income � 109.7% y-o-y to $116.1 million YTD Sep 2012 Net Property Income � 109.3% y-o-y to $91.9 million YTD Sep 2012 Share of Results of Associates � 36.9% y-o-y to $34.8 million All-in interest rate maintained at 2.00% Average portfolio committed occupancy � to 98.2% Ocean Financial Centre � to 95.0% Prudential Tower � to 100.0% 77 King Street � to 97.4% 5
Quarterly Distributions Quarterly DPU will commence in 3Q 2012 . Current Distribution Frequency Previous Distribution Frequency Income period Proposed payment dates (1) 1Q Distributable Income period Payment dates May income 1H Distributable August income 2Q Distributable August income 2H Distributable February income 3Q Distributable November income (1) Exact date of payment of distribution income may vary. 4Q Distributable February income Distribution Per Unit (DPU) Distribution Per Unit (DPU) 1.96 cents Distribution Period Distribution Period 1 July 2012 – 30 September 2012 Distribution Timetable Trading on “Ex” Basis Friday, 19 October 2012 Books Closure Date Tuesday, 23 October 2012 Distribution Payment Date Tuesday, 27 November 2012 6
Income-accretive Acquisition Income-accretive acquisition of 50% interest in a new office tower to be developed on the Old Treasury Building site in Perth, Australia 98% pre-committed by the Government of Western Australia Long-term lease of 25 years with options to extend for another 25 years Extends top ten tenants’ weighted average lease expiry (WALE) to 9.7 years (1) and portfolio WALE to 7.2 years (1) Key Property and Transaction Details Premium Grade A office Description 35-storey 28 Barrack Street, Location Perth, Australia Net Lettable Area 165,750 sf (50% interest) Purchase Consideration $212.0 million (50% interest) 5-Star Green Star Targeted Green Ratings 4.5-Star NABERS energy rating (1) Based on figures as at 30 September 2012, including the 25-year lease by the Government of Western Australia. 7
8 Chifley Square Topping-Off Completion of main structural works on 25 September 2012 On schedule for completion in 3Q 2013 8
Financial Highlights 9
YTD Sep 2012 Distributable Income � 94.3% y-o-y to $150.0m YTD Sep 2012 YTD Sep 2011 Change Property Income $116.1m $55.3m $60.7m 109.7% Net Property Income $91.9m $43.9m $48.0m 109.3% Share of Results of Associates $34.8m $25.4m $9.4m 36.9% Distributable Income to Unitholders (1) $150.0m $77.2m $72.8m 94.3% Distribution Per Unit (DPU) 3.06 cents (2) - For the Period 5.80 cents 2.74 cents 89.5% 4.09 cents (2) - Annualised 7.75 cents 3.66 cents 89.5% $150.0 m $116.1 m $91.9 m $77.2 m YTD Sep 2011 $55.3 m $43.9 m YTD Sep 2012 $34.8 m $25.4 m Property Income Net Property Income Share of Results of Distributable Income Associates (1) The distributable income to Unitholders is based on 100% of the income available for distribution. (2) Restated to take into account the effect of the fully underwritten, renounceable 17-for-20 rights issue of 1,159,694,000 units at an issue price of $0.85 per rights unit and computed based on the issued units at the end of the period aggregated with 1,159,694,000 units which were issued on 13 December 2011. 10
YTD Sep 2012 DPU � 89.5% y-o-y to 5.80 cents YTD Sep 2012 annualised DPU of 7.75 cents outperformed 2012 forecast (1) by 8.2% 2012 Forecast (1) 3Q 2012 2Q 2012 1Q 2012 YTD Sep 2012 Distribution Per Unit (DPU) 1.94 cents - For the Period 1.96 cents 1.90 cents 5.80 cents 7.16 cents - Annualised 7.80 cents 7.80 cents 7.64 cents 7.75 cents 7.16 cents DPU 7.75 cents 7.16 cents (1) 1.94 cents 1.96 cents 1.90 cents 1Q 2012 2Q 2012 3Q 2012 YTD Sep 2012 (1) 2012 Forecast Annualised (1) As published in the Circular to Unitholders dated 19 October 2011. 11
Healthy Balance Sheet As at 30 Sep 2012 As at 30 Jun 2012 Non-current Assets $5,789 m $5,785 m Total Assets $5,945 m $5,975 m Borrowings (1) $2,800 m $2,780 m Total Liabilities $2,668 m $2,645 m Unitholders’ Funds $3,275 m $3,327 m Net Asset Value (NAV) Per Unit $1.25 $1.27 Adjusted NAV Per Unit (2) $1.23 $1.23 (1) These include borrowings accounted for at the level of associates and excludes the unamortised portion of upfront fees in relation to the borrowings. (2) For 30 September 2012, this excludes the distributable income to be distributed in November 2012. For 30 June 2012, this excludes the distributable income to be distributed in August 2012. 12
Capital Management 13
Capital Management As at 30 Sep 2012 As at 30 Jun 2012 Gross Borrowings (1) $2,800 m (4) $2,780 m (4) Aggregate Leverage 44.1% 43.9% Average All-in Interest Rate (2) 2.00% 2.00% Interest Coverage Ratio (3) 5.2 times 5.3 times 3.4 years (5) 3.6 years (5) Weighted Average Term to Expiry (1) These include borrowings accounted for at the level of associates and excludes the unamortised portion of upfront fees in relation to the borrowings. (2) Average all-in interest rates for the respective quarters include cost of swapping floating interest rates to fixed rates. (3) Figures for the respective quarters. Interest coverage ratio = Ratio of quarter earnings before interest, tax, depreciation and amortisation divided by interest expense. (4) These include Keppel REIT’s proportionate share of the deferred payments due to the construction of the car park and retail podium at Ocean Financial Centre. (5) The debt weighted average term to expiry will extend to 3.4 years when the $598 million loans due for refinancing on 31 December 2012 are refinanced for 5 years to 2017. The actual debt weighted average term to expiry as at 30 September 2012 is 2.3 years. 14
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