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A Publication of Keppel Corporation
ISSUE
04
2019
www.kepcorp.com/ekeppelite
Grand Innovating to
stay ahead
Making a
difference
opening
MCI (P)
027/01/2019 18 26 49
Contents
SUSTAINING GROWTH SPECIAL FOCUS Editorial Advisor
Ho Tong Yen
1 Editor’s Note 26 Innovating to stay ahead
2 Keppel Corporation Financial Results
Editor
7 Financial highlights HSEMATTERS
Sue-Ann Huang
8 In conversation
10 Keppel REIT Financial Results 38 Embracing safety
12 Keppel DC REIT Financial Results
Copy Editors
13 Keppel Infrastructure Trust Financial EMPOWERING LIVES Fiona Aw, Lee Wan Jun
Results
14 Keppel Pacific Oak US REIT Financial 40 Building a future-ready workforce
Results 41 Appreciating colleagues Editorial Team
16 Changes in composition of Employer of choice Ana Luisa Cruz, Ang Lai Lee, Ariel Tee,
Keppel Corporation’s Board 42 Building bonds Brian Lee, Elizabeth Widjaja,
18 Grand opening Emmeline Khoo, Frances Teh, Glenda Yang,
44 Investor with the Midas touch
20 Industry leader Grace Chia, Guo Xiaorong, Han Sufen,
45 Embracing a circular economy
22 Expanding footprint Hoo Yao Lin, Ivana Chua, Loh Jing Ting,
Roy Tan, Tang Yibing, Teri Liew, Tracy Pham,
23 Quality deliveries GETTING TO KNOW YOU Yolanda Guo, Zavier Ong
24 New build expertise
25 Growing presence in Sydney
46 Spotlight on: Chor How Jat Email: keppelgroup@kepcorp.com
AAMTF III makes first investment in Website: www.kepcorp.com/ekeppelite
Beijing
NURTURING COMMUNITIES
28 Enhancing competencies Keppelite is a publication of Keppel
30 Engaging analysts and retail Corporation, and is published quarterly
48 Let the Games begin!
shareholders by the Group Corporate Communications
49 Making a difference
31 Sporting a new look Division. All rights reserved. Permission from
52 Keppel Community Month the publisher is required for reproduction by
32 Deepening presence in China
34 Singapore’s Deputy Prime Minister any means in whole or in part.
visits Tianjin Eco-City
Printed in Singapore by
36 Unlocking capital
Image Printers Pte Ltd.
Compelling suite of LNG solutions
37 Settlement with Sete Brasil
Appointments
Cover image: The Podium is a landmark mixed-use development and lifestyle destination located in the
heart of the Ortigas central business district in Manila.
1 EDITOR'S NOTE
Editor’s Note
Keppel has been contributing to the This issue of Keppelite also takes a closer
growth and development of urban look at the Group’s efforts to embed a
communities around the world with culture of innovation (pages 26 to 28).
landmark projects that reflect our vision, Through Keppel Technology & Innovation,
network and execution capabilities. Keppel has been driving innovation with
technology foresight, and by developing
On the cover of Keppelite, we capabilities and strong partnerships.
showcase The Podium, in Manila, a
mixed-use development by As we strengthen our businesses and
Keppel Land and BDO Unibank, which operations, we also celebrate our people.
was opened on 10 September 2019 by Across the Group, a series of activities
Madam Halimah Yacob, President of were organised in July and August to
the Republic of Singapore, during her thank Keppelites for their hard work and
state visit to the Philippines to celebrate dedication. We also recognised our
50 years of Singapore-Philippines long-serving staff across the group,
diplomatic relations (page 18). including four who received their 40-year
long service awards at the OneKeppel
In China, the Sino-Singapore Tianjin Dinner & Dance (pages 42 and 43).
Eco-City is a model for sustainable
development. Keppel has contributed In addition, as part of a series of interviews
for 11 years to the development of with senior management, we speak to
the Eco-City, harnessing our diverse Mr Chor How Jat, MD (Conversions &
capabilities in property, environmental Repairs) of Keppel O&M, about his journey
infrastructure and connectivity. We with Keppel over two decades, as well
were honoured to welcome Singapore’s as his views on the opportunities and
Deputy Prime Minister Heng Swee Keat, challenges of the industry (pages 46 to 47).
who visited the Eco-City on
16 October 2019 (pages 34 and 35). Finally, we share snapshots of our efforts
to give back to the larger community and
We continue to extend our footprint protect the environment. Through various
globally. Keppel Land China grew its sponsorships and volunteer events, we
presence in China with a string of are shaping a cleaner, greener world,
strategic acquisitions in Nanjing, Beijing, bringing the arts to the less privileged,
Guangzhou and Shanghai (pages 32 promoting literacy and uplifting spirits
and 33). Meanwhile, Alpha DC Fund (pages 49 to 52).
announced that its wholly-owned
subsidiary has acquired a plot of freehold We hope you enjoy your read of Keppelite.
land to develop a data centre in Sydney,
Australia (page 25). Keppelite Editor
2 SUSTAINING GROWTH
Keppel Corporation Financial Results
Executing our strategy
Keppelite reproduces the speech delivered by Mr Loh Chin Hua, CEO of
Keppel Corporation, at the Company’s 3Q & 9M 2019 results webcast.
1
3 SUSTAINING GROWTH
Financial Performance as at end-June 2019, due to $145 million of full ownership over these uncompleted
Amidst a volatile international interim cash dividend paid to shareholders rigs, and can explore various options to
environment marked by trade tensions in August 2019 and recent acquisitions by extract the best value from them.
and slowing global growth, Keppel has the Property Division.
performed creditably, with stronger Keppel O&M continued its focus on
contributions from the Offshore & Offshore & Marine executing projects well. It delivered a
Marine (O&M), Infrastructure and Reflecting Keppel O&M’s progress in Floating Storage and Re-gasification Unit
Investments divisions. For 9M 2019, we securing new orders and the increased (FSRU) in 3Q 2019 and a jackup in October
achieved a net profit of $515 million, workload in our yards, our O&M Division 2019, and is on track to deliver Singapore’s
37% lower than the $813 million in 9M made a profit of $18 million in 9M 2019, first dual-fuel bunker tanker in 2019.
2018. In 2018, we benefitted from the compared to a net loss of $38 million for
en-bloc sales of development projects 9M 2018. Our yards completed 47 scrubber and
in China (Zhongshan and Shenyang) ballast water treatment system retrofit
and Vietnam, as well as gains from the In Brazil, Keppel O&M has reached contracts in 9M 2019 worth over
divestment of a commercial property a Settlement Agreement (SA) with $80 million, as shipowners strive to meet
in Beijing, which had yielded profits of Sete Brasil, bringing closure to the IMO 2020 and IMO Ballast Water
$544 million. the outstanding contracts for the Management Convention regulations. We
construction of the six rigs. The SA will have received 100 scrubber orders since
On an annualised basis, our Return become effective upon the fulfilment of 2018 and continue to see more enquiries.
on Equity was 6.1%. We had free cash certain conditions precedent, including
outflow of $1,029 million in 9M 2019, the successful sale of two rigs, which Our efforts to build new capabilities and
compared to free cash inflow of are about 92% and 70% completed, capture new opportunities are bearing
$815 million in 9M 2018 due to higher by Sete Brasil to Magni Partners. As fruit. Over the past four years, gas solutions
working capital requirements in the part of the agreement, the contracts and offshore renewables have contributed
O&M and Property divisions as well for the other four uncompleted rigs $2.4 billion in new orders for Keppel O&M.
as lower proceeds from en-bloc sales. are considered amicably terminated
Our net gearing was 0.88x as at with no penalties, refunds or additional Keppel O&M’s net orderbook currently
end-September 2019, compared to 0.82x amounts due to any party. We will have stands at $5.1 billion as at end-September
1. Vietnam, especially
2 Ho Chi Minh City, is
a promising market
for Keppel. With our
strong foothold in the
country, Keppel units
are actively exploring
business opportunities
to provide solutions as
the country continues
its urbanisation trend.
2. In August 2019, Keppel
O&M delivered the
Floating Storage and
Re-gasification Unit
BW Paris to
BW Offshore.
4 SUSTAINING GROWTH
Even after the injection of
Keppel DC Singapore 4
into Keppel DC REIT,
the Group will continue
to earn recurring fees
from rendering asset
management, operations
and maintenance
services for the asset.
2019, excluding our projects for Seizing opportunities in Vietnam and occupancy rate for Grades A & B
Sete Brasil, compared to $4.3 billion as Vietnam, especially Ho Chi Minh City offices was more than 96%. We expect to
at end-2018. New contracts secured by (HCMC), is a promising market for Keppel. see further growth in HCMC, especially
Keppel O&M year-to-date amount to In September, we hosted a group of along its Eastern and Southern corridors.
about $1.9 billion, with close to 60% of analysts to visit Keppel Land’s residential
these new orders for liquefied natural and commercial projects in HCMC, as With our strong foothold in the country,
gas and renewables-related projects. well as the site for Saigon Sports City. We other Keppel units are also actively
continue to see strong demand for quality exploring business opportunities
Property homes and commercial projects in HCMC, to provide solutions as the country
Our Property business performed well, underpinned by growing affluence and continues its urbanisation trend. We
achieving a net profit of $340 million urbanisation trends in the city. will continue to expand our presence
for 9M 2019. This is lower than the in Vietnam, leveraging our decades of
$768 million for 9M 2018, mainly due Keppel Land currently has about 20 experience and strong capabilities in
to the absence of en-bloc sales and licensed projects in Vietnam, with a total this market.
divestments. registered investment capital of over
US$3 billion. Earnings from Keppel Land Infrastructure
In China, Keppel Land made four Vietnam have grown steadily from Our Infrastructure Division achieved a net
acquisitions this quarter, deepening $10 million in 2015 to $134 million in 2018, profit of $145 million in 9M 2019, up 20%
our presence in Beijing, Shanghai and and made up almost 30% of Keppel from $121 million in 9M 2018, driven by higher
Nanjing, and entering new, high-growth Land’s net profit in 9M 2019. contributions from Keppel Infrastructure and
markets such as Guangzhou. our data centre business.
We have over 17,000 homes in our residential
In 9M 2019, the Property Division landbank, about 153,000 sm GFA of Keppel Infrastructure continued to achieve
sold about 3,520 homes, with a total completed commercial projects in HCMC, stable earnings growth, with a net profit of
sales value of about $2.1 billion. Home and another 252,000 sm GFA of commercial $94 million for 9M 2019, up from
sales were over 12% higher than the space under development. $82 million year-on-year. Strong earnings
3,150 homes sold in 9M 2018, with for 9M 2019 were underpinned by better
significantly more homes sold in China For 1H 2019, the absorption rate in the city performance from Energy Infrastructure
and Vietnam. for new condominium projects was 88% and Environmental Infrastructure.
5 SUSTAINING GROWTH
In October, the Energy Market Authority gains from the divestment of assets to These initiatives will contribute to building
released statistics which showed that Keppel DC REIT, share of profits from up Keppel Capital to be a steady pillar of
Keppel Electric is the top Open Electricity our interest in Keppel DC REIT as well income for the Group.
Market retailer with 27% market share of as gains arising from dilution or partial
residential consumers. sale of interest in Keppel DC REIT. This On 16 October 2019, we welcomed
does not include the approximately Singapore’s Deputy Prime Minister
To streamline its operations and $270 million premium over the carrying Heng Swee Keat when he visited the
better allocate resources, Keppel value of Keppel’s stake in Keppel DC REIT Sino-Singapore Tianjin Eco-City, which is
Telecommunications & Transportation as at end-September 2019. Over this developing well as a model for sustainable
has entered into agreements to divest its period, our average shareholder’s funds urbanisation. Our joint venture, SSTEC,
stakes in logistics facilities and operations invested in the data centre business was has further accelerated the Eco-City’s
in Foshan and Hong Kong. about $350 million. development with the sale of two residential
land plots in the quarter. Profits from the
Executing Keppel’s Business Model We will continue to seek opportunities sale of one plot have been recognised
The data centre business continues to be in the data centre business, harnessing in this quarter, while the second will be
an important growth area for Keppel. the Group’s ability to create good assets, recognised upon the completion of the sale
which we can own, manage and then expected in 4Q 2019.
In September, Alpha DC Fund and recycle at the right time to earn the best
Keppel Data Centres entered into risk-adjusted returns. M1’s Transformation
agreements to divest a 99% interest in M1 continues its transformation, harnessing
Keppel DC Singapore 4 (KDC SGP 4) Data centres are critical for smart, the synergies of being part of the Keppel
to Keppel DC REIT for about connected cities but they have a large Group to enhance its B2C and B2B offerings,
$385 million. KDC SGP 4 is the first carbon footprint. As a leading player strengthen its digital capabilities, and explore
divestment for Alpha DC Fund and in providing data centre solutions, and new markets. Following the launch of its
demonstrates Keppel’s ability to create with our engineering capabilities and new One Plan in May, more than 50,000 new
value for different stakeholders through rich history of innovation, Keppel is customers have signed up for the plan.
our business model and hunt as a pack. committed to building more energy-
efficient data centres. M1 is working closely with different
The total gain to the Keppel Group from business units across the Keppel Group to
KDC SGP 4 is about $83 million, including Investments enhance the connectivity of our different
our share of fair value gains since 2016 Our Investments Division made a net solutions, whether they are new, smarter
and fees earned by Keppel Data Centres, profit of $12 million for 9M 2019, compared rigs, advanced yards of the future, data
Alpha and Keppel DC REIT Management. to a net loss of $38 million in 9M 2018. centres or urban solutions. We are also
Even after the asset’s injection into expanding the cross-selling of services
Keppel DC REIT, the Group will continue This has been another productive quarter across the Group’s different consumer
to earn recurring fees from rendering for Keppel Capital as its listed entities businesses, including M1, Keppel Electric
asset management, operations and and private funds continue to grow their and City Gas. Analyses of publicly available
maintenance services for the asset. portfolios, and at the same time realise data suggest that only less than 2% of
value from existing assets. Singapore households currently use all
Keppel DC REIT’s proposed acquisitions three of the Group’s services. There is
of KDC SGP 4 and DataCentre One have Keppel REIT is divesting Bugis Junction therefore significant scope to expand
also been well received by investors with Towers in Singapore, as part of its ongoing our share of customer wallets. M1 is also
the successful equity fundraising exercise portfolio optimisation strategy. actively exploring opportunities with SPH
in which its preferential offering was about Keppel DC REIT is acquiring two to leverage its extensive media consumer
75% oversubscribed. data centres in Singapore, while base for new value-added services.
Keppel Pacific Oak US REIT is expanding
Over the past five years from 2014 its portfolio with the acquisition of a Grade M1 has also started multi-vendor 5G trials
to 2018, the Keppel Group achieved A office complex in the key growth market and will be working closely with Government
earnings of about $430 million from the of Dallas. Meanwhile, Alpha continued agencies, enterprises and institutes of higher
data centre business, including profits to actively pursue acquisitions and learning to co-develop use cases for selected
from the development and management divestments totalling about US$1 billion in markets and jointly bring new, innovative
of data centres, fees, fair value gains and this quarter. and smart applications that leverage 5G
6 SUSTAINING GROWTH
technology to the market. These include, townships, environmental infrastructure, we will strictly avoid, such as coal-fired
for example, M1 and NTU’s partnership to water treatment, and offshore wind plants, those that we will maintain, and
integrate standalone 5G technology into infrastructure, among others. those which we will grow and expand,
cellular vehicle-to-everything (C-V2X) taking into account their respective
communications around NTU’s smart At a board strategy meeting in environmental impacts.
campus to enhance road safety and optimise September, Keppel reaffirmed our
road usage – a first-of-its-kind in Singapore. commitment to environmental These are part of our efforts to build
sustainability, which will be woven into Keppel into a stronger, more sustainable
Committed to Sustainability the performance appraisal of senior company. According to a recent survey
In September, global leaders met in management across the Group. We conducted by Mercer, Keppel’s employee
New York City for the UN Climate Action have set targets to reduce carbon engagement score has risen steadily from
Summit, where they announced concrete emissions, waste generation and water 80% in 2015, to 82% in 2017, to 86% in
steps to deal with the climate crisis. consumption, as well as invest in 2019, compared to the current average of
renewable energy generation. 76% among Singapore companies. This
Keppel is committed to sustainability, is an encouraging reflection of Keppel’s
which is at the core of not just how we run To this end, we have recently established organisational health, and the passion
our business, but our strategy as a provider a new business unit, Keppel Renewable and commitment of Keppelites, which
of solutions for sustainable urbanisation. Energy, to pursue opportunities for Keppel will stand us in good stead to achieve the
Today, Keppel is contributing to a cleaner as a developer, owner and operator of company’s targets, and not only generate
and greener world with our suite of renewable energy infrastructure. We have good returns, but build a sustainable
solutions, including green buildings and also defined the kinds of businesses that future for all.
Keppel Corporation is committed to sustainability, not just in how we run our business, but also in our strategy as a provider of solutions for sustainable urbanisation.
7 SUSTAINING GROWTH
Keppel Corporation Financial Results
Financial highlights
Keppelite reproduces excerpts of the presentation by Mr Chan Hon Chew, CFO of Keppel Corporation, on the
Company’s financial performance at the 3Q & 9M 2019 results webcast.
3Q 2019 financial highlights 9M 2019 financial highlights
$m 3Q 2019 3Q 2018* % Change $m 9M 2019 9M 2018* % Change
Revenue 2,067 1,295 60 Revenue 5,382 4,288 26
Operating Profit 183 283 (35) Operating Profit 665 1,049 (37)
Profit Before Tax 227 334 (32) Profit Before Tax 716 1,080 (34)
Net Profit 159 227 (30) Net Profit 515 813 (37)
EPS (cents) 8.8 12.5 (30) EPS (cents) 28.4 44.8 (37)
* An agenda decision on a clarification in relation to capitalisation of borrowing costs by property developer under IAS 23 Borrowing Costs was finalised by the International
Financial Reporting Standards Interpretations Committee in 2019. As the financial reporting framework applied by the Group is equivalent to International Financial Reporting
Standards, the agenda decision has relevant impact to the Group’s Property Division. Consequently, 2018 financial figures have been restated.
3Q 2019 financial highlights 9M 2019 financial highlights $1.1 billion compared to 9M 2018. All divisions
In 3Q 2019, the Group recorded a net Compared to the same period last year, net registered higher revenues during 9M 2019.
profit of $159 million, which was 30% profit for 9M 2019 was 37% lower at
lower than 3Q 2018. Correspondingly, the $515 million. Consequently, annualised Despite higher revenues, operating profit at
earnings per share (EPS) decreased by Return on Equity decreased to 6.1%. $665 million was 37% or $384 million lower
30% to 8.8 cents in this quarter. than 9M 2018. This was due mainly to lower
Free cash outflow for the period was gains from en-bloc sales of development
The Group’s revenue for 3Q 2019 was $1,029 million as compared to an inflow projects and absence of gain from
60% or $772 million higher than 3Q 2018. of $815 million in 9M 2018 mainly due to divestment of Beijing Aether as compared
All divisions registered higher revenues higher working capital requirements with the to 9M 2018, partially offset by fair value gain
during the quarter. construction progress of from the re-measurement of previously held
Offshore & Marine’s major projects, interest in M1 arising from the acquisition
However, operating profit for 3Q 2019 fell and Keppel Land’s additional property this year.
by 35% or $100 million despite higher development and land acquisition costs, as
revenues, largely due to absence of gain well as lower proceeds from en-bloc sales. Profit before tax, at $716 million, decreased
from divestment of Beijing Aether as by a slightly lower percentage of
compared to 3Q 2018. Net gearing increased from 0.48x as at 34% due mainly to higher investment
end-2018 to 0.88x as at end-September income and higher share of profits from
Profit before tax was $227 million, 2019. This was due mainly to borrowings associated companies, partly offset by
decreased by a slightly lower percentage drawn down for the acquisition of M1 and the higher net interest expense, as a result of
of 32% due mainly to higher share of privatisation of Keppel Telecommunications & higher borrowings and the adoption of
profits from associated companies, partly Transportation, working capital requirements, Singapore Financial Reporting Standards
offset by net interest expense in the payment of the final dividend for FY 2018 and (International) 16.
current period as compared to net interest interim dividend for FY 2019, as well as the
income in 3Q 2018. recognition of lease liabilities following the After tax and non-controlling interests, net
adoption of Singapore Financial Reporting profit at $515 million was 37% or $298 million
After tax and non-controlling interests, Standards (International) 16 on leases. lower, translating to EPS of 28.4 cents.
net profit was 30% or $68 million lower at
$159 million, translating to an EPS of The Group earned a total revenue of about For more information on the results, please
8.8 cents. $5.4 billion in 9M 2019, an increase of 26% or visit www.kepcorp.com
8 SUSTAINING GROWTH
Keppel Corporation Financial Results
In conversation
Keppelite reproduces highlights of management’s responses
to questions from the media and investment community at
the Company’s 3Q & 9M 2019 results webcast.
Q: Annualised Return on Equity (ROE) of has been able to achieve these returns on a renewables, gas, etc. but there are no plans
6.1% is quite far away from the Group’s consistent basis for quite a number of years. currently to exit any business.
mid-term ROE target of 15%. Is your
target still achievable? For 9M 2019, we have seen less en-bloc Q: O&M’s new order momentum
sales and divestments. In order for us appears to have slowed down in recent
LCH: The short answer is yes, we believe to hit our 12%, I think we need to turn months, driving a quarter-on-quarter
the 15% target ROE is achievable. When assets faster. We are also looking to see decline in your orderbook. Are there
we first unveiled this target, we said it is how we can leverage our experience signs of decline in customer enquiries
a medium to long-term target. These are in the various markets like Vietnam and contracts because of the uncertain
all stretch goals. But if you look at the and China, to collaborate with different macro environment?
Group’s recent history, we have achieved parts of the Group, and to earn higher
returns well in excess of that. returns through fees and others, besides CO: The FID (Final Investment Decision) of
development profits. projects is not driven by quarters. On top
But of course, to get that 15%, all of that, although there are still challenges
engines of the Group must be firing. Q: In line with your commitment to in certain segments of the oil and gas
Indeed, today if you look at some of sustainability, are there any businesses market, for example the drilling units, we
the Group’s businesses like Keppel that you will exit such as oil? continue to see opportunities in offshore
Infrastructure, Keppel Capital, etc, we renewables and the LNG market. There
are already hitting those targets. LCH: We are committed as a business to are still fresh enquiries going on in those
sustainability, and we will not go into any markets, and we continue to chase them
In order for the whole Group to hit 15%, business that is pollutive, for example coal- and improve the quality of our orderbook.
we would need to see Keppel Offshore fired power plants. We will make announcements when there
& Marine (O&M) come up. We also are material developments in new orders.
would need to see Keppel Land improve As for the oil business, although it has a
on its performance from last year, which carbon footprint, the world still requires Q: Did O&M continue to increase hiring
was already quite good at 11% for fossil fuels. And you can see from our in 3Q 2019? Were the new hires in
FY 2018. All in all, we believe that this business at Keppel O&M that we have Singapore?
15% can be achieved. also started to move, partly driven by
the market. We are still doing oil-related CO: Year-to-date Keppel O&M has
Q: The Property Division’s annualised business but have pivoted away a little, increased its headcount by about 2,120
ROE is the lowest in several years at about and are focused now on renewables and personnel, more than the 1,800 headcount
6%. Are you still confident of achieving on gas. This has actually paid off for us. increase initially envisaged. The bulk of the
through cycle ROE target of 12%, and what For 9M 2019, renewables made up about increase was overseas, while about 250
is required to achieve the ROE target? $720 million of the $1.9 billion worth of new were in Singapore.
orders that Keppel O&M had secured.
LCH: As I had alluded to earlier, this 12% In 3Q 2019, we hired about 1,350
is a stretch target for Keppel Land. But as So in short, we are taking a portfolio personnel, and this includes new hires to
we have seen in recent past, Keppel Land approach. We are looking to emphasise fill new positions and to replace those who9 SUSTAINING GROWTH
have left due to natural attrition. Comparing possibility. We will make an announcement LCH – Mr Loh Chin Hua,
quarter on quarter, the net increase in when the plan is firmed up. CEO of Keppel Corporation
Keppel O&M’s global direct headcount CHC – Mr Chan Hon Chew,
was about 1,190. Q: What are your plans for KrisEnergy? CFO of Keppel Corporation
CT – Ms Christina Tan,
Q: Can you indicate if the $476 million CHC: As you know, KrisEnergy has filed
CEO of Keppel Capital
provisions by Keppel in relation to the for moratorium protection. At this point in
six rigs for Sete Brasil are adequate time, we have yet to receive any proposal CO – Mr Chris Ong,
and there will not likely be more? for their restructuring. We are waiting for CEO of Keppel Offshore & Marine
What are your expectations of possible the proposal before we can evaluate the TSY – Mr Tan Swee Yiow,
writebacks? options available to us. So there is no CEO of Keppel Land
further update on that.
CHC: We have made $476 million in
provisions for the six rigs. When making Q: Can you provide an update on your
those provisions, we have considered a fund management business? How is the
number of different scenarios and different progress toward achieving the $50 billion
outcomes. Based on those scenarios assets under management (AUM) target?
and outcomes, we believe $476 million in
provision is sufficient. And looking at the CT: We are confident in terms of our
information we have today based on the target to achieve $50 billion in AUM. This
settlement agreement, these provisions are is because given the volatile market right
still sufficient. now, investors are looking for real assets
which can provide long-term cashflows
As to your next question on whether there which are more valuable to them, given the
are any possible writebacks, I think at stability of these cashflows.
this point it is still too premature. As you
know, the settlement agreement is still Keppel is very well-placed in the
under discussion. It is not yet settled. But creation of these assets. We are able,
at this point, we believe the provisions are through our sister companies, to develop
adequate and also reasonable. infrastructure projects, offshore rigs, and
floating liquefied natural gas vessels,
Q: What are your development plans for which provide long-term cash flows for
Keppel Towers? investors. We are quite fortunate that
Keppel Capital is part of this eco-system.
TSY: We have started the design and And with the demand from sovereign
redevelopment process. We are in the wealth funds and institutional investors,
process of consulting different approving we are very confident that we are able to
authorities on this redevelopment achieve this target.10 SUSTAINING GROWTH
Keppel REIT Financial Results
Unlocking value
Keppel REIT’s distributable income for
3Q 2019 was $47.5 million, 2.5% higher
than 3Q 2018’s distributable income
of $46.3 million. Distribution per Unit
(DPU) for 3Q 2019 was 1.40 cents,
up 2.9% year-on-year. The improved
performance was due mainly to a full
quarter contribution from T Tower in
Seoul, higher average portfolio rentals,
capital gains distribution of $2.0 million
for 3Q 2019, and the DPU-accretive Unit
buy-back programme. The increase was
partially offset by the absence of rental
support and lower contribution from
Ocean Financial Centre following the
divestment of a 20% stake.
For 9M 2019, distributable income was
$142.1 million, slightly lower than 9M
2018’s $142.9 million. DPU for the period
was 4.18 cents, which translates to an
annualised distribution yield of 4.4%
based on market closing price of $1.26
per Unit as at 30 September 2019.
As part of its proactive capital
management strategy, the Manager
continued with its DPU-accretive Unit
buy-back programme. In 3Q 2019, a total
of approximately 13.6 million issued Units
were purchased and cancelled. As at
30 September 2019, aggregate leverage
was 38.9% and weighted average term
to maturity was 3.4 years. All-in interest
rate decreased from 2.86% per annum to
2.82% per annum in 3Q 2019.
In 9M 2019, the Manager committed
total leases of approximately 516,400 sf
(attributable area of approximately
Keppel REIT unlocks value with the divestment
of its strata ownership of Bugis Junction Towers
in Singapore for $547.5 million.11 SUSTAINING GROWTH
221,000 sf). Almost all leases concluded in in our current geographies of Singapore, 311 Spencer Street development
9M 2019 were in Singapore. The average Australia and South Korea. We believe that tops out
signing rent for the Singapore office leases quality assets across different markets
committed in 9M 2019 was approximately provide greater income stability and Keppel REIT marked the topping
$12.35 psf pm. As at 30 September opportunities for growth in the long term.” out of the state-of-the-art
2019, Keppel REIT’s portfolio committed Victoria Police Centre at 311
occupancy remained healthy at 98.9%. The Completed in 1994, Bugis Junction Towers Spencer Street in Melbourne,
portfolio weighted average lease expiry is a 15-storey Grade A office building Australia, on 19 August 2019.
remained long at approximately 5.1 years. with approximately 70-year leasehold Upon commencement of the
land tenure remaining and close to 30-year lease to the Victoria
Portfolio Optimisation Strategy 250,000 sf of NLA. The development has Police expected in 2Q 2020,
In line with the Manager’s ongoing 99.0% committed occupancy and a long the freehold Grade A office
portfolio optimisation strategy, on weighted average lease expiry of 6.0 years tower will contribute a steady
1 October 2019, Keppel REIT announced as at 30 September 2019. Its principal income stream to Keppel REIT
the divestment of its strata ownership of tenants are Enterprise Singapore, and complement its pan-Asian
Bugis Junction Towers in Singapore for a InterContinental Hotels Group and portfolio of premium Grade A
sale price of $547.5 million or $2,200 psf UCommune. commercial assets.
based on the building’s NLA. The sale
price is 6.3% above the latest valuation With the divestment proceeds, the Victoria Police Centre has an
of $515.0 million and 243.2% above the Manager will continue its DPU-accretive estimated total net lettable
purchase price of $159.5 million in 2006. Unit buy-back programme, seek higher area of over 700,000 sf and is
yielding opportunities for growth, as well strategically located between
Based on the net property income for the as pare down debt. The Manager will also Melbourne’s central business
12 months preceding 30 June 2019, the work to enhance stability of distribution district and the Docklands
sale price translates to a yield of 3.0%. to Unitholders while continuing with its precinct. It is also within walking
The property has been held since Keppel ongoing portfolio optimisation initiatives distance to the Southern Cross
REIT’s listing in 2006, and has delivered and proactive efforts to mitigate Station, the city’s major railway
asset-level returns of 19.4% p.a. over the occupancy voids. and transportation hub.
holding period.
Post-divestment of Bugis Junction
Mr Paul Tham, CEO of the Manager, Towers, which is expected to be
said, “The divestment of Bugis Junction completed in 4Q 2019, Keppel REIT ’s
Towers is part of our ongoing portfolio portfolio will remain firmly anchored by
optimisation strategy and realises capital assets in the Singapore CBD. Assuming
gains of approximately $378.1 million. the divestment was completed on
Post-divestment, Keppel REIT’s portfolio 30 September 2019, Keppel REIT ’s assets
will remain firmly anchored by our under management would comprise
assets in the central business district nine premium commercial properties in
of Singapore. We will continue to seek Singapore (81.0%), Australia (15.2%) and
strategic and higher yielding acquisitions South Korea (3.8%).12 SUSTAINING GROWTH
Keppel DC REIT Financial Results
Strong fundamentals
Keppel DC REIT has delivered
1
distributable income of $27.4 million for
3Q 2019, 5.4% higher than 3Q 2018’s
$26.0 million. Distributable income for
9M 2019 was also higher at $81.8 million,
increasing by 16.9% from 9M 2018’s
$70.0 million. The increases were mainly
supported by higher contributions from
the Singapore data centres, partially
offset by overseas contribution due
to currency depreciation against the
Singapore dollar.
Accordingly, Keppel DC REIT achieved
higher Distribution per Unit (DPU) of 1.93
cents for 3Q 2019, bringing 9M 2019 DPU
to 5.78 cents, 5.7% higher than 9M 2018’s
5.47 cents. Based on 9M 2019’s market
closing price of $1.910 per Unit, the REIT’s
annualised distribution yield was 4.03%.
On the operational front, the retrofitting
works at Keppel DC Singapore 3 was centre hubs globally, spanning an high at 12.7 times as at 30 September 2019.
completed in July 2019. The fit-out works aggregate lettable area of approximately The Manager has refinanced its Singapore
at Keppel DC Dublin 2 to make way for 1,411,412 sq ft. dollar-denominated loan due end-2019
client expansion was also completed, by another six years, bringing the REIT’s
bringing the occupancy rate of To partially fund the proposed weighted average debt tenor to 3.8 years.
Keppel DC Dublin 2 to 100%. Asset acquisitions of KDC SGP 4 and DC1,
enhancement works to improve energy the REIT raised approximately As at 30 September 2019, the REIT’s
efficiency at Keppel DC Dublin 1 remains $478.2 million in gross proceeds through portfolio weighted average lease expiry
on track for completion in 2020. a fully underwritten private placement and (WALE) was 7.7 years, and portfolio
preferential offering of approximately 277.0 occupancy rate remained healthy at 93.6%.
On 16 September 2019, the Manager million new units. The private placement,
announced the proposed acquisitions which was over nine times covered, has In addition, Keppel DC REIT has been
of Keppel DC Singapore 4 (KDC SGP 4) reduced the REIT’s aggregate leverage included in the FTSE EPRA Nareit Global
and the data centre located at 18 Riverside from 31.9% as at 30 June 2019, to 28.9% Developed Index from 23 September 2019.
Road Singapore (DC1) at agreed values as at 30 September 2019. The preferential
of approximately $384.9 million and offering was 175.4% subscribed and will The data centre market remains strong,
$200.2 million respectively. The proposed further improve the REIT’s aggregate supported by ongoing digitalisation and
acquisitions are expected to be highly leverage, providing more debt headroom cloud deployments. Improved connectivity
accretive to Keppel DC REIT’s DPU. to pursue growth. as well as the development and adoption
When completed in 4Q 2019, the REIT’s of new technologies will continue to
assets under management will grow Keppel DC REIT’s average cost of debt drive the growth of data creation and fuel
by 30.2% to approximately $2.6 billion, remained competitive at 1.7% per annum demand for data storage requirements in
comprising 17 data centres in key data while interest coverage ratio remained key data centre hubs globally.13 SUSTAINING GROWTH
Keppel Infrastructure Trust Financial Results
Stable returns
Keppel Infrastructure Fund Management On 24 August 2019, the Basslink KIFM announced the proposed
(KIFM), as Trustee-Manager of Keppel electricity interconnector suffered divestment of KIT ’s 51% stake in
Infrastructure Trust (KIT), delivered a low voltage cable failure located DataCentre One to Keppel DC REIT
distributable cash flow (DCF) of $55.7 million in an above ground section in the for a consideration of $102.9 million,
for 3Q 2019, bringing DCF for 9M 2019 to transition station in Gifford, Victoria. allowing KIT to realise the remaining
$149.9 million. This was 61.0% and 40.0% KIT announced its return to service lease value upfront, benefiting
higher than the corresponding periods in on 29 September 2019, ahead of the Unitholders. DataCentre One owns
2018 respectively, and was driven mainly by previously announced date of mid- the data centre building at
the positive contribution from October 2019. 18 Riverside Road Singapore (DC1).
Ixom HoldCo Pty Ltd (Ixom), as well as higher The proceeds are expected to be
contributions from City Gas as a result of over- In the Energy segment, Keppel redeployed into quality acquisitions
recovery due to time lag in adjustment of gas Merlimau Cogen experienced an that will further strengthen the Trust’s
tariffs to reflect actual fuel costs. unplanned maintenance for one of portfolio, as well as for refinancing
its four units, and the affected unit purposes and working capital needs.
KIFM also declared Distribution per Unit is scheduled to resume service in
(DPU) of 0.93 cents for 3Q 2019, bringing November 2019. KIFM will continue to grow the Trust
DPU for 9M 2019 to 2.79 cents. This through acquisitions that will create
translated to an annualised distribution yield KIT fulfilled all contractual obligations greater value for KIT and Unitholders
of 7.0%, based on the market closing price per for its assets in the Waste & Water through stable recurring returns and
Unit of $0.530 as at 30 September 2019. sectors during the quarter. steady long-term capital appreciation.
1. Keppel DC Singapore 4 (on page 12) and the data
1 centre located at 18 Riverside Road Singapore
(DC1) (on page 13).14 SUSTAINING GROWTH
Keppel Pacific Oak US REIT Financial Results
Robust growth
Keppel Pacific Oak US REIT (KORE) has and rent growth in KORE’s key growth the Costar Office National Report in
achieved distributable income (DI) of markets resulted in a portfolio rental September 2019, asking rent rose 6.6%
US$12.4 million for 3Q 2019, exceeding reversion of 19.2% for 3Q 2019, bringing in Austin and 6.2% in Seattle, ranking
the IPO forecast for the same period by overall portfolio rental reversion for 9M them first and third respectively in terms
23.3%, and 31.0% higher than the DI for 3Q 2019 to 13.4%. Leasing demand in 3Q of 12-month asking rent growth. Seattle
2018. DI for 9M 2019 was US$37.2 million, 2019 came mainly from the technology and Austin make up approximately 50%
exceeding the IPO forecast and 9M 2018 and professional service sectors, with of KORE’s portfolio by CRI.
by 23.2% and 31.0% respectively. over two-thirds of leasing activities
occurring within KORE’s business Looking ahead, the Manager remains
Contributions from the technology-focused campuses in the fast-growing technology focused on its long-term goal of delivering
markets of Seattle, Denver and Austin hubs of Seattle, Austin and Denver. stable distributions to Unitholders, by
continued to drive KORE’s higher year- leveraging KORE’s strategic exposure to
on-year (y-o-y) performance for 9M 2019. As at 30 September 2019, the weighted the growing technology hubs and the
Distribution per Unit (DPU) for 3Q 2019 average lease expiry by cash rental REIT’s unique value proposition of its
was 1.50 US cents, bringing total DPU for income (CRI) for KORE’s portfolio and office towers and business campus style
9M 2019 to 4.50 US cents, translating to an top 10 tenants was 4.1 years and properties that are desired by technology
annualised distribution yield of 7.8% based 5.6 years respectively. Aggregate and other companies.
on the market closing price of US$0.775 leverage and interest coverage ratios
per Unit as at the last trading day on were 38.5% and 4.6 times respectively. Extending presence to Dallas
30 September 2019. On 6 September 2019, the Manager
In the US, the technology sector announced the proposed acquisition of
9M 2019 saw strong leasing momentum with continued to be a major driver of office One Twenty Five, an office complex in
14.3% of KORE’s portfolio leased, bringing rent growth y-o-y, with the strongest Irving, Dallas, for US$101.5 million. The
portfolio committed occupancy to 93.8% as increases occurring in markets such property comprises two class A office
at 30 September 2019. Strong office demand as Seattle and Austin. According to buildings – 125 East John Carpenter and
Name change to Keppel Pacific Oak US REIT
Keppel-KBS US REIT is now known as On the name change, Mr Peter McMillan III, Mr David Snyder, CEO and CIO of
Keppel Pacific Oak US REIT (KORE). Chairman of the Manager, said, the Manager, added, “While our
The name change took effect “Keppel Pacific Oak US REIT continues to name has changed, it is business as
on 5 September 2019. Its name receive the full support of the usual for Keppel Pacific Oak US REIT,
on the Singapore Exchange Core Plus Team, which has provided and with no impact to our day-to-day
Securities Trading Limited is will continue to provide asset management operations. Our strategy and focus for
KepPacOakReitUSD, and its services to the REIT. This same team, the REIT remains unchanged, and we
Bloomberg ticker symbol remains which will be employed under the new US will continue to invest in key growth
as KORE:SP. The Board of Directors asset manager, will also continue to source markets of the US with favourable
and the senior management of the quality assets in first choice submarkets for economic and office fundamentals that
Manager remain unchanged. Keppel Pacific Oak US REIT.” are above the national average.”15 SUSTAINING GROWTH
Keppel Pacific Oak US REIT has entered into an agreement to acquire One Twenty Five, an office complex in Irving, Dallas, for US$101.5 million.
5100 North O’Connor – offering a total The office complex has undergone The acquisition was approved by
of 445,317 sf of quality spaces. extensive capital improvements and Unitholders at an extraordinary general
asset enhancements since 2015, and meeting on 15 October 2019. The proceeds
One Twenty Five is located in the boasts modern interior finishes and of approximately US$71.5 million from a
first choice submarket of Las Colinas, onsite amenities including a fitness private placement of 104,286,000 New Units
which has been experiencing strong centre, conference centre, deli, tenant at an issue price of US$0.725 per New Unit
leasing demand supported by limited lounge and a seven-storey parking will be used to partially fund the acquisition.
supply of quality office spaces, as well garage. It has a healthy committed The private placement was more than four
as strong employment growth and occupancy of 95.5%, with a weighted times subscribed with strong demand from
population expansion. The class A average lease expiry of 7.0 years and new and existing institutional as well as
office complex is part of a desirable limited lease expiries until 2023. It is other accredited investors.
live-work-play community centrally currently leased to 20 tenants from
located in the fast-growing Dallas- diverse industries, mainly in the Upon completion of acquisition expected
Fort Worth region, which is home to professional services, medical and in 4Q 2019, KORE’s portfolio will have a
a young, well-educated and affluent healthcare, government, as well as total of 13 quality freehold properties in
population. financial and insurance sectors. eight key growth markets across the US.16 SUSTAINING GROWTH
Changes in composition of
Keppel Corporation’s Board
Keppel Corporation Limited (Keppel) has announced the appointment of
Mr Teo Siong Seng, Mr Tham Sai Choy and Mrs Penny Goh as independent
directors to the Keppel Board. The appointment of Mr Teo and Mr Tham
took effect from 1 November 2019 while Mrs Goh’s appointment will be
from 2 January 2020.
Mr Teo Siong Seng and nominations committee. As a member Mrs Goh serves as an Honorary Legal
Mr Teo Siong Seng, 64, is the Executive of the executive committee, Mr Tham was Advisor to the Real Estate Developers’
Chairman and Managing Director of responsible for KPMG’s global strategies Association of Singapore. In addition,
Pacific International Lines Pte Ltd (PIL), and planning, including developing the she is a member of the Advisory Board
one of the largest shipowners and firm’s capabilities in cybersecurity, data for Real Estate Programme, Singapore
operators in Southeast Asia with a focus analytics and digital transformation. Management University and a member
on Asia-Africa and the Middle East. He Mr Tham also worked with many of of the Advisory Committee for the School
is also the Chairman and CEO of PIL’s Singapore’s listed companies in their of Design and Environment, National
listed subsidiary in Hong Kong, Singamas audits and other consultancy work over his University of Singapore.
Container Holdings Ltd. 36 years of practice.
Mrs Goh has been Chairman of Keppel
Mr Teo is Chairman of the Singapore Mr Tham is currently the Chairman of REIT Management Limited (Keppel
Business Federation, Honorary President the Singapore Institute of Directors and REIT Management), the manager of
of the Singapore Chinese Chamber of serves on the boards of the Accounting Keppel REIT, since 22 April 2017. She
Commerce & Industry, a Director of & Corporate Regulatory Authority, the will be re-designated as
Business China, and Honorary Consul Housing & Development Board, Nanyang non-independent Director of
of The United Republic of Tanzania in Polytechnic, the Singapore International Keppel REIT Management upon her
Singapore. He is an independent non- Arbitration Centre, DBS Group Holdings appointment as independent Director of
executive Director of Wilmar International Limited, and Mount Alvernia Hospital. Keppel, and will continue as Chairman of
Limited, COSCO Shipping Holdings and the board of Keppel REIT Management.
COSCO Shipping Energy Transportation, Mrs Penny Goh
a Board Member of Enterprise Singapore Mrs Penny Goh, 66, is Co-Chairman and Mrs Goh is the Lead Independent Director
and a Member of the Future Economy Senior Partner of Allen & Gledhill LLP, of Mapletree Logistics Trust Management
Council. Mr Teo was also a Nominated a leading law firm in Singapore, where Ltd, the manager of Mapletree Logistics
Member of Parliament of Singapore from she has for many years headed the firm’s Trust, where she also chairs its Nominating
2009 to 2014. corporate real estate practice. She advises and Remuneration Committee and is also
listed corporations, private equity property an Independent Director of HSBC Bank
Mr Tham Sai Choy funds, sovereign wealth funds and real (Singapore), where she is a member of the
Mr Tham Sai Choy, 59, was Managing estate investment trusts. She has extensive Audit and Risk Committees.
Partner of KPMG Singapore and then experience in a broad range of corporate
Chairman of KPMG Asia Pacific before real estate transactions for commercial, Dr Lee Boon Yang, Chairman of Keppel,
he retired in 2017. He was a member of industrial and logistics projects in said, “We welcome three highly respected
KPMG’s global board, and had served Singapore and Asia Pacific, involving business leaders to join the Board as we
on its executive committee and risk investment, joint development and profit work to accelerate Keppel’s transformation
committee, and chaired its compensation participation structures. and growth.17 SUSTAINING GROWTH
“Siong Seng, with his extensive business 20 June 2012, has also stepped down from business helped to chart Keppel’s
experience and network, will help the Keppel’s Board for personal reasons. Both growth. Previously on the Board
Group to better navigate and seize directors stepped down from the Board with Risk Committee, and more recently,
opportunities in a challenging international effect from 1 November 2019. as Chairman of the Nominating
environment. Keppel will also benefit Committee and a member of the Board
from Sai Choy’s wealth of experience in In appreciation of their service, Chairman Safety Committee, he has contributed
developing global strategies on cyber Lee said, “On behalf of the Board, I would greatly to strengthening Keppel’s
security and data analytics, as well as like to thank Heng Tan and Puay Chiang organisational health and our safety
corporate governance, as we proceed with for their invaluable contributions. culture.”
Keppel’s transformation. We also welcome
Penny’s deep experience providing “Over 15 years of distinguished service, Professor Jean-Francois Manzoni, who
strategic legal counsel to corporates and during which he served in the Nominating was appointed non-executive and
her guidance on best practices, particularly Committee, Remuneration Committee independent Director on 1 October
in the real estate business.” and Board Risk Committee, Heng Tan has 2018, succeeded Mr Tan Puay Chiang as
provided wise and insightful guidance Chairman of the Nominating Committee,
Separately, Mr Tow Heng Tan, who has been a which allowed Keppel to thrive through with effect from 1 November 2019.
non-executive and non-independent Director good and tough times.
since 15 September 2004, has stepped down With effect from 2 January 2020, the
from Keppel’s Board after serving for more “Our appreciation also goes to Puay Chiang Keppel Board will comprise a total of
than 15 years. Mr Tan Puay Chiang, a non- whose extensive experience and 11 directors, of whom 10 are independent
executive and independent Director since in-depth understanding of the energy directors.
(From left to right) Mr Teo Siong Seng, Mr Tham Sai Choy and Mrs Penny Goh have been appointed as independent directors to the Keppel Board.18 SUSTAINING GROWTH 1 The Podium in the Philippines Grand opening The Podium, an office and retail mixed-use development by Keppel Land and BDO Unibank, was opened on 10 September 2019 by Madam Halimah Yacob, President of the Republic of Singapore, during her state visit to the Philippines to celebrate the 50th anniversary of diplomatic relations between Singapore and the Philippines.
19 SUSTAINING GROWTH
Madam Halimah Yacob was accompanied The Podium is a landmark mixed-use 1. Madam Halimah Yacob (centre),
President of the Republic of
by Mr Mohamed Abdullah Alhabshee, development and lifestyle destination
Singapore, together with (from left to
as well as Ministers and senior government located in the heart of the Ortigas central right) Mr Nestor Tan, President and
officials from Singapore and the business district in the Philippines. The CEO of BDO, Mr Loh Chin Hua,
CEO of Keppel Corporation and
Philippines. Senior management from the Podium retail mall houses unique retail,
Chairman of Keppel Land,
Keppel Group, led by Dr Lee Boon Yang, dining and lifestyle offerings, with a diverse Ms Teresita Sy-Coson, Chairperson
Chairman of Keppel Corporation, and exciting range of about 260 local and of BDO, Dr Lee Boon Yang,
Chairman of Keppel Corporation,
Mr Loh Chin Hua, CEO of Keppel Corporation international retail brands. The Podium
Mr Hans Sy, Chairman of the
and Chairman of Keppel Land, as well as West Tower is the tallest Grade A office Executive Committee of SM Prime
Mr Tan Swee Yiow, CEO of Keppel Land, building in Ortigas Center at 48 storeys. Holdings, and Mr Tan Swee Yiow,
CEO of Keppel Land, at the opening
were also present.
of The Podium in the Philippines.
An eco-icon, The Podium has a 2,000 sm
Mr Tan Swee Yiow, CEO of Keppel Land, garden wall, the largest vertical green 2 Madam Halimah Yacob, President
of the Republic of Singapore,
said, “Keppel Land has been contributing wall in the country with over 6,500 plants.
together with Mr Mohamed Abdullah
to and participating in the growth of the In recognition of its sustainable features, Alhabshee, being briefed on The
Philippines’ economy since the early 1990s. The Podium was awarded the LEED Gold Podium, an office and retail mixed-
use development by Keppel Land
The Podium is a landmark commercial Award (Core & Shell) pre-certification
and BDO Unibank. Dr Lee Boon
development that hosts multinational by the US Green Building Council, and Yang (fourth from left), Chairman of
companies and retail tenants. Its successful is the first building in the Philippines to Keppel Corporation, Mr Loh Chin
Hua (first from right), CEO of Keppel
completion is a testament of the strong receive the provisional Green Mark Gold
Corporation and Chairman of Keppel
relationships, network and execution Award by the Building and Construction Land, and Ms Teresita Sy-Coson
capabilities that we have built over the years.” Authority of Singapore. (second from right), Chairperson of
BDO, were also present.
220 SUSTAINING GROWTH
1
Industry leader
Keppel Group is honoured to have identifies companies demonstrating for the Environment and Water Resources,
received recognition from government strong ESG policies and practices. took place on 27 August 2019.
and industry bodies for its
commitment to good environmental, Keppel Corporation was also recognised Meanwhile, Keppel Land was named the
social and governance (ESG) policies for its sustainable business practices Overall Global Real Estate Sector Leader
and practices, as well as business by the Singapore Environment Council in the Global Real Estate Sustainability
and product excellence. (SEC). It won the SEC-STATS Asia Pacific Benchmark 2019. In the same listing,
Singapore Environmental Achievement Keppel REIT, managed by Keppel REIT
Committed to sustainability Award in the services category at SEC’s Management Limited, as well as Alpha Asia
Keppel Corporation has been Environmental Achievement Awards 2019. Macro Trends Fund (AAMTF) II and
included as an index constituent of The award ceremony, graced by AAMTF III under Alpha Investment Partners,
the FTSE4Good Index Series, which Mr Masagos Zulkifli, Singapore Minister all maintained their Green Star Status.21 SUSTAINING GROWTH
Strong investor relations while Keppel Infrastructure Trust was
Keppel Group was presented with a few the runner-up for the Sustainability
awards at Singapore Corporate Awards Award in the REITs & Business Trusts
(SCA) 2019. Keppel Corporation received Category.
the Bronze award in the Best Annual
Report category for companies with a Premier real estate developer
market capitalisation of over $1 billion, In the Euromoney Real Estate Survey
while Keppel Pacific Oak US REIT’s 2019, Keppel Land garnered 23
inaugural annual report secured the Merit accolades, including being named the
award in the SCA Best Annual Report Best Overall Real Estate Developer in Recognition by Forbes
category for newly-listed corporations. the Global and Asia Pacific categories,
In the REITs & Business Trusts category, as well as in China, Vietnam and Keppel has been recognised in the
Keppel DC REIT scooped up the Silver Indonesia. Forbes’ Global 2000 rankings as
award for Best Investor Relations. one of the World’s Best Regarded
In addition, Highline Residences, Companies 2019 and World’s Best
Over at the Securities Investors Keppel Land’s residential development Employers 2019.
Association (Singapore) 20th Investors’ at the heart of Tiong Bahru, Singapore,
Choice Awards 2019 event, Keppel was recognised at the Singapore Mr Loh Chin Hua, CEO of
DC REIT was the runner-up for the Landscape Architecture Awards 2019 and Keppel Corporation, said, “Being
Most Transparent Company Award, the Singapore Property Awards 2019. recognised by Forbes as one of the
world’s best regarded companies
and employers reflects the trust
we have built up with stakeholders,
whether through upholding high
standards of corporate governance
and business ethics, or investing
1. Mr Masagos Zulkifli (sixth from right), Singapore Minister for the Environment and Water Resources,
in our people and creating
with members of the Keppel Group Sustainability Working and Sub-Committees at the SEC conducive work environments
Environmental Achievement Awards 2019. where employees can fulfil their
2. Keppel Group was recognised for its achievements in shareholder communications and investor
aspirations and potential.”
relations at the Singapore Corporate Awards 2019. Representing the Group are from left to right:
Mr Chua Hsien Yang, CEO of Keppel DC REIT Management; Mr Ho Tong Yen, Director of Group Forbes’ Global 2000 comprises
Corporate Communications, Keppel Corporation; Mr Yeo Meng Hin, Director of Group Human
Resources, Keppel Corporation; and Mr Andy Gwee, CFO of Keppel Pacific Oak US REIT Management.
the world’s 2,000 largest public
companies based on measures
of revenue, profits, assets and
2
market value. The top 250 World’s
Best Regarded Companies
were evaluated based on
trustworthiness, social conduct,
the strength of their products and
services and how they fare as
employers.
As for the list of top 500 World’s
Best Employers, Forbes partnered
with Statista to cull Forbes’ Global
2000 list based on 1.4 million
employment recommendations
sourced from a global poll and
regional surveys.You can also read
