Annual General Meeting 17 June 2020 www.primeusreit.com
2 This document may contain forward-looking statements An investment in Units is subject to investment risks, Important including the possible loss of the principal amount that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ invested. Holders of Units (the “Unitholder”) have no materially from those expressed in forward-looking right to request the Manager to redeem or purchase Notice statements as a result of a number of risks, uncertainties their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading and assumptions. Representative examples of these on Singapore Exchange Securities Trading Limited (the factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital “SGX-ST”). Listing of the Units on the SGX-ST does and capital availability, competition from similar not guarantee a liquid market for the Units. developments, shifts in expected levels of property rental This document is not to be distributed or circulated income, changes in operating expenses, governmental and public policy changes, and the continued availability of outside of Singapore. Any failure to comply with this financing in the amounts and terms necessary to support restriction may constitute a violation of United State future business. securities laws or the laws of any other jurisdiction. Investors are cautioned not to place undue reliance on The past performance of Prime US REIT is not DBS Bank Ltd. was the sole these forward-looking statements, which are based on the necessarily indicative of its future performance. financial adviser and issue current view of management on future events. The value of The information presented in this document as at and units in Prime US REIT (the “Units”) and the income manager for the initial public derived from them may fall as well as rise. Units are not for the quarter ended 31 March 2020 is not audited or offering of Prime US REIT. obligations of, deposits in, or guaranteed by, the Manager, reviewed by the external auditors. DBS Trustee Limited (as trustee of Prime US REIT) or any of their affiliates. ANNUAL GENERAL MEETING | JUNE 2020
3 Agenda Key Highlights 01 Milestones 02 Portfolio Performance 03 Looking Ahead and 04 COVID-19 Update ANNUAL GENERAL MEETING | JUNE 2020
4 Delivering Performance and Stability Inclusion in MSCI Accretive Restructured Outperformed IPO listing Singapore acquisition of debt to provide IPO Forecast Our Sponsors: Small Cap Index Park Tower interest cost 2019 DPU of improved trading for $165.5M savings US 3.15 cents liquidity 7.5% higher than IPO Forecast 29 April 2020 24 February 2020 19 July 2019 26 November 2019 31 December 2019 ANNUAL GENERAL MEETING | JUNE 2020
5 1 2 Q1 2020 Completed Accretive Resilient Portfolio Acquisition of Park Key Tower for US$165.5 M • Portfolio 94.9% occupancy 96.1% leased • WALE of 4.9 years • Well diversified portfolio - no one AUM increased 13.6% to US$1.42 Highlights property contributes more than 16% to billion 1 , adding new market and NPI broader industry sector diversification 3 4 Strong Balance Sheet Outperformed through Prudent and Projections 2 for NPI by Proactive Capital 6.7%, for Distributable Management Income by 12.9% • Low gearing ratio of 33.7% • Interest coverage ratio 5.8x Driven by contribution from • Substantial debt capacity and Park Tower acquisition and [1.] Based on appraised valuation of US $1.25 billion as at 31 December 2019. higher income from IPO portfolio headroom [2.] Refers to IPO Portfolio's forecast figures for Forecast Year 2020 as disclosed in the Prospectus, pro-rated by months. ANNUAL GENERAL MEETING | JUNE 2020
6 Our Diversity Stability Quality & Growth Differentiated Proposition • Class A • Balance Sheet • Growth Markets • Established Tenants • Cash Flows • Industry Sectors in US Office • Depth of Real Estate DNA • Locations • Tenant Base ANNUAL GENERAL MEETING | JUNE 2020
7 Financially Strong and Committed Sponsor Group Three decades of experience as leading US Office player Preeminent player in Singapore Financial commitment to the real estate and REIT markets. REIT and Manager Transacted US$42b with over $8 bn of AUM Active representation Keppel DC REIT CEO active on the board representative on the board Experienced asset management team Provision of support services on the ground Depth of deal pipeline and target market opportunities www.primeusreit.com
8 Focus on Growing Cities In established and growth markets State Metro Property Sq. Ft. Occupancy 1 Village Center Colorado Denver 241,846 87.2% Station I Village Center 325,576 100% Station II Missouri St. Louis 101 S. Hanley 360,505 95.7% Utah Salt Lake City 222 Main 433,346 94.4% Texas Dallas Tower 909 374,251 92.9% San Antonio Promenade I & II 205,773 99.6% California Sacramento Park Tower 489,171 92.2% Tower I at San Fran/Oakland 222,207 91.5% Emeryville Pennsylvania Philadelphia Crosspoint 272,360 100% Washington Washington DC One 314,284 95.5% DC (MD) Washingtonian Washington Washington DC Reston Square 139,018 100% DC (VA) Georgia Atlanta 171 17th St. 510,268 96.6% • Highly educated workforce • Transportation infrastructure • Strong employment growth • Lower density urban • Affordability environments [1.] Data as per March 31 2020 ANNUAL GENERAL MEETING | JUNE 2020
9 Balanced Industry Sector Diversification Top 10 Tenants 1 4.2% Leased % of Portfolio Government Tenant Industry Credit Rating Property Sq.Ft. CRI 12.5% 15.3% Communications Charter Village Center Others Communications Moody's: Ba1 419,881 9% Station I & II Communications 4.0% Moody's: A3 Goldman Sachs Healthcare Finance S&P: BBB+ 222 Main 177,206 6.2% Group Inc. 4.6% Fitch: A Scientific Accommodation and One Washingtonian R&D Services Sodexo Operations LLC S&P: A- 190,698 5.8% 15.1% Food Services Center Finance 222 Main; Village Center 6.4% Holland & Hart LLP Legal Services Private Firm 114,103 4.2% Station I Information Moody's: a1 Wells Fargo Bank,NA Finance 171 17th Street 156,104 4.2% S&P: A+ 5.9% Fitch: AA Professional, 8.5% State of California Government Park Tower 141,372 3.2% Moody's: Aa2 Scientific Real Estate & Tech Services Professional, Arnall Golden Scientific, 6.1% 9% Private Firm 171 17th Street 122,240 3.2% Gregory LLP and Technical Mining, Oil & Gas Accommodation Services & Food Services 8.4% Legal Communications Whitney, Bradley Equipment Private Firm Reston Square 73,511 2.8% & Brown Manufacturing In Established + Growth 70% Real Estate and (STEM/TAMI) 2 Sectors WeWork Fitch: CCC+ Tower I at Emeryville 56,977 2.3% Rental and Leasing Mining, Quarrying, S&P: BB+ Apache Corporation and Oil and Gas Promenade I&II 70,596 2.3% Fitch: BBB [1.] Data as per March 31 2020 Extraction [2.] Established: Finance, Real Estate, Legal, Government STEM/TAMI: Communications, Health Care, Scientific R&D Services, Information, Professional, Scientific and Tech Total 1,522,688 43.3% Services. ANNUAL GENERAL MEETING | JUNE 2020 ANNUAL GENERAL MEETING | JUNE 2020
10 Proactive Lease Management 1.3% 4.9 yrs 6.3% by CRI of portfolio Positive rental WALE leased in 1Q 2020 reversion 50% 45.7% 43.5% 38% 25% 17.3% 15.7% 15.7% 15.5% 13% 9.1% 8.9% 8.9% 8.0% 6.0% 5.7% 0% 2020 2021 2022 2023 2024 2025 & Beyond By NLA By CRI ANNUAL GENERAL MEETING | JUNE 2020
11 Robust Balance Sheet Q4 2019 Q1 2020 Tenant Near-Term Maturities 33.7 33.7 Gearing 5.5x 5.8x Interest Coverage 160 $160 M $160 M 33% 33% $1,650 88.0% 89.1% % Fixed Rate 120 4.8 years / $105 M 5.2 years Average Debt Maturity Billions 21% 5.4 yrs 1 $937 Billions $913 $700 80 $63 M $47.4 M $86.9 M Available Undrawn Facility 13% $202 3.3% 3.3% Weighted Interest Cost 40 Interest Cost After Debt 2.8% Restructure 0 US $ 2020 2022 2023 2024 2029 US$ m [1.] Fully extended debt maturity ANNUAL GENERAL MEETING | JUNE 2020
12 Navigating Near Term COVID-19 Impact Leasing Strategies Re-occupancy Plan Rent Collections • Lease extensions • All 50 states have • April and May collections commenced phased are at 99% • Lease expansions re-openings • Continued Tenant • Benefit from de-densification Engagement • Preparing properties for re-occupancy with focus • Minimal Deferrals on health & safety ANNUAL GENERAL MEETING | JUNE 2020
13 Focus on Health and Safety Re-occupancy Strategy Cleaning Physical Distancing • Frequent and Deep Cleaning • Occupant Density Monitoring • Air & Water Quality Ventilation • Access & Elevators • Shared Conference Rooms Improvements • Technology Solutions including & Amenity Spaces • Events & Visitors efficient UV Light Treatments Protective Measures Communications • Personal Protective • On-Premise Signage Equipment (PPE) Standards • Hand Sanitizing Stations • Ongoing Communication • Proactive Tenant Engagement ANNUAL GENERAL MEETING | JUNE 2020
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