First Quarter 2019 Financial Results 17 April 2019 Outline Key - PowerPoint PPT Presentation

First Quarter 2019 Financial Results 17 April 2019

Outline • Key Highlights 3 • Financial Review 4 • Portfolio Update 11 • Looking Ahead 18 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 or 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. 2

1Q 2019 Key Highlights • Delivered distributable income (DI) of Portfolio Statistics $47.3 million (1) and distribution per Unit (DPU) of 1.39 cents High Committed Occupancy • Lowered aggregate leverage to 35.7% and 98.7% extended weighted average term to maturity to 3.3 years (2) Long Weighted Average Lease Expiry • Issued $200.0 million convertible bonds at a 5.7 years coupon rate of 1.9% per annum • Raised portfolio committed occupancy to 98.7% • Maintained long portfolio WALE of 5.7 years (1) Includes distribution of capital gains of $3.0 million for 1Q 2019. 3 (2) Takes into account commitments received to refinance the remaining 2019 loans.

Financial Review 8 Chifley Square, Sydney

Financial Performance 1Q 2019 1Q 2018 +/(-) $40.0 m (1) Property Income $39.7 m +0.7% Net Property Income (NPI) $31.3 m $31.2 m +0.3% Less: Attributable to Non-controlling Interests ($4.1 m) -* $27.2 m (2) $31.2 m (12.6%) NPI Attributable to Unitholders Share of Results of Associates $26.4 m (3) $28.5 m (7.1%) and Joint Ventures $47.3 m (4) $48.2 m (1.9%) Distribution to Unitholders Distribution per Unit (DPU) 1.39 cents 1.42 cents (2.1%) * Denotes less than $0.1m (1) Property income was higher year-on-year due mainly to higher one-off Distribution Timetable compensation received in 1Q 2019. (2) Reflects amount attributable to Unitholders based on an interest of 79.9% in Ocean Financial Centre following the divestment of a 20% stake in Dec 2018. Ex-Date: Thu, 25 Apr 2019 (3) Share of results of associates was lower year-on-year due mainly to lower one-off Books Closure Date: Fri, 26 Apr 2019 income received, occupancy changes and higher borrowing costs. Share of results of joint ventures was lower year-on-year due mainly to Payment Date: Thu, 30 May 2019 depreciation of Australian dollar against Singapore dollar. (4) This includes a distribution of capital gains of $3.0 million for 1Q 2019. 5

Income Contribution Breakdown by Geography 1Q 2019 % 1Q 2018 % (for 1Q 2019) Ocean Financial Centre (1) 16,129 26.0 21,479 32.6 Marina Bay Financial Centre 22,266 35.9 21,074 32.0 79.9% One Raffles Quay 6,173 9.9 6,928 10.5 Bugis Junction Towers 4,997 8.1 3,735 5.7 8 Chifley Square 3,084 5.0 3,233 4.9 8 Exhibition Street 3,454 5.6 3,162 4.8 20.1% 275 George Street 2,674 4.3 2,822 4.3 David Malcolm Justice Centre 3,203 5.2 3,431 5.2 Singapore Australia Total 61,980 100.0 65,864 100.0 (1)Income contribution from Ocean Financial Centre reflects the amount attributable to Unitholders based on an interest of 79.9% (2018: 99.9%) following the divestment of a 20% stake in December 2018. 6

Balance Sheet +/(-) As at 31 Mar 2019 As at 31 Dec 2018 Total Assets $7,616 m $7,784 m (2.2%) Borrowings (1) (3.7%) $2,930 m $3,044 m (5.2%) Total Liabilities $2,321 m $2,449 m Unitholders’ Funds $4,714 m $4,757 m (0.9%) Adjusted NAV per Unit (2) $1.37 $1.39 (1.4%) (1) Included borrowings accounted for at the level of associates and excluded the unamortised portion of upfront fees in relation to the borrowings. (2) For 31 March 2019 and 31 December 2018, these excluded the distributions to be paid in May 2019 and paid in February 2019 respectively. 7

Capital Management ▪ Received commitments to refinance the remaining loans due in 2019 Managing interest rate exposure ▪ Extended weighted average term to maturity from 2.8 years (1) to 3.3 years (2) 9% ▪ Lowered aggregate leverage from 36.3% (1) to 35.7% after repayment of loans through working capital optimisation and Fixed-Rate with part of proceeds from the sale of a 20% stake in Ocean Borrowings Financial Centre Floating-Rate Borrowings As at 31 Mar 2019 91% Interest Coverage Ratio 4.1x All-in Interest Rate 2.88% p.a. Sensitivity to SOR (3) Aggregate Leverage 35.7% Every 50 bps in SOR 3.3 years (2) Weighted Average Term to Maturity translates to Unencumbered Assets 83% ~0.04 cents in DPU (1) As at 31 December 2018. (2) This takes into account commitments received to refinance the remaining loans that are due in 2019. (3) Based on the Group’s borrowings including those accounted for at the level of associates, and number of Units in issue as at 31 March 2019. 8

Convertible Bonds ▪ Issued 5-year convertible bonds on Debt Maturity Profile 10 April 2019 at coupon rate of 1.9% to lower (as at 31 Mar 2019, assuming convertible bonds were issued in 1Q 2019) interest costs and diversify funding sources ▪ Financing option that brings estimated interest 31% savings of approximately $1.5-2.0 million p.a. compared to a new loan in current high $200m 21% interest rate environment $75m $127m (2) 21% $50m 16% Convertible Bonds 11% $698m $650m $608m Issue Size $200.0 m $538m (1) $489m $360m Coupon Rate 1.9% p.a. Conversion Premium 12.5% 2019 2020 2021 2022 2023 2024 Maturity 5 year Bank loans $50m 7-year MTN at 3.15% (Issued in February 2015) $75m 7-year MTN at 3.275% $200m 5-year convertible bonds at 1.9% (Issued in April 2017) (Issued in April 2019) (1) Received commitments to refinance these loans. (2) $127.0 million loan repayment through working capital optimisation efforts and with part of the proceeds from the sale of a 20% stake in Ocean Financial Centre. 9

Unit Buy-Back Programme Monthly Unit Buy-Back Volume (since initiation of programme) ▪ Buying back Units below NAV is accretive to Unitholders and is part of proactive capital 13.56m management strategy ▪ Purchased and cancelled 34.0 million issued Units since the initiation of Unit buy-back 5.36m programme in 3Q 2018 4.08m 3.50m 2.50m 3.25m ▪ Seeking Unitholders’ approval at the coming 1.78m Annual General Meeting to continue with the - Unit buy-back programme Jul Aug Sep Oct Nov Dec Jan Feb 2018 2018 2018 2018 2018 2018 2019 2019 10

Portfolio Update Marina Bay Financial Centre, Singapore

1Q 2019 Leasing Update Leases Committed by Geography (3) ~136,400 sf 0 100% (Attributable ~57,100 sf) Leases Committed Singapore Australia 69% Leases Committed by Type (3) Retention Rate Average signing rent for Singapore office leases ~$12.03 (1) psf 49.9% 50.1% 98.7% above Grade A core CBD market average Portfolio Committed of $11.15 (2) psf Occupancy Renewal leases New leases (1) For the Singapore office leases concluded in 1Q 2019 and based on a simple average calculation. 12 (2) Source: CBRE, 1Q 2019. (3) Based on committed attributable area.