9 February 2018 Asia Pacific/Singapore Equity Research REITs

Keppel KBS US REIT (KPEL.SI / KORE SP) Rating Price (06-Feb-18, US$) Target price (US$) Upside/downside (%) Mkt cap (US$mn) Enterprise value (US$ mn) Number of shares (mn) Free float (%) 52-wk price range (US$) ADTO-6M (US$ mn)

OUTPERFORM 0.88 0.97 10.7 553.1 819.7 628.56 90.5 0.92-0.88 1.4

Target price is for 12 months. [V] = Stock Considered Volatile (see Disclosure Appendix)

Research Analysts Nicholas Teh 65 6212 3026 [email protected] Louis Chua, CFA 65 6212 5721 [email protected] Daniel Lim 65 6212 3011 [email protected]

Share price performance

The price relative chart measures performance against the FTSE STRAITS TIMES IDX which closed at 3,386.57 on 06/02/18. On 06/02/18 the spot exchange rate was US$1/US$1

Performance Absolute (%) Relative (%)

1M -3.3 -0.9

3M

12M

INITIATION

Room to grow ■ Diversified across the US. Keppel-KBS US REIT (KORE) holds an initial portfolio of 11 freehold US offices across seven markets in the US—Seattle (32% of cash rental income), Sacramento (6%), Denver (15%), Austin (12%), Houston (21%), Atlanta (7%), and Orlando (7%). Overall, the portfolio is largely Class A, with Class A suburban assets accounting for 37% of the portfolio by cash rental income, followed by Class A CBD assets at 32% and Class B/B+ suburban assets at 31%. The structure of KORE will be similar to other US Asset Singapore REITs which allows for minimal tax exposure. ■ Several organic growth drivers. KORE's growth will be underscored by annual escalations of 2.0-3.0% which affect 97.5% of the existing leases. Meanwhile, expiring rents in 2018E and 2019E are a steep 23.5-26.0% below market and could provide upside given the relatively well balanced lease expiry profile. Additionally, KORE's low occupancy of 90% (as of 3Q17) could allow for upside from occupancy improvements. ■ A large market to acquire. KORE will be able to leverage off its US Asset Manager, KBS Capital Advisors LLC (KBS), experience in the US market to source for acquisitions. An office market that has transacted over US$100 bn p.a. since 2013. With a gearing of 36.0%, debt headroom is limited, however, we believe, potential acquisitions could still be immediately yield accretive. ■ Initiate coverage with an OUTPERFORM rating and target price of US$0.97 per unit, implying total returns of 17%. Given low expiring rents throughout 2018 and 2019, annual step ups and occupancy improvements, KORE should provide one of the strongest organic growth profiles over the next two years. Meanwhile, the potential to acquire asset from KBS and directly in a large office market like the US, provides a good opportunity for inorganic growth. Key risks include changes to tax law, weaker-than-expected reversions and acquisition risk. Financial and valuation metrics Year Net property income (US$ mn) EBITDA (US$ mn) Net attributable profit (US$ mn) Distributable income (US$ mn) EPS (CS adj.) (US$) Consensus EPS (US$) EPS growth (%) P/E (x) DPU (US$) Change from previous DPU (%) DPU yield (%) P/B (x) EV/EBITDA (x) ROE (%) Net debt/equity (%)

12/16A 46.2 39.0 18.3 30.9 0.03 n.a. 35.6 30.2 0.05 n.a. 5.6 1.05 21.0 7.0 50.4

12/17E 53.7 47.2 62.1 34.8 0.10 0.04 239.5 8.9 0.06

12/18E 54.5 48.2 41.5 36.7 0.07 0.05 (33.5) 13.4 0.06

12/19E 56.8 50.0 42.7 38.8 0.07 0.05 2.4 13.1 0.06

6.3 1.00 17.3 11.5 48.0

6.6 0.99 17.3 7.5 50.0

7.0 0.99 17.1 7.6 53.5

Source: Company data, Thomson Reuters, Credit Suisse estimates

DISCLOSURE APPENDIX AT THE BACK OF THIS REPORT CONTAINS IMPORTANT DISCLOSURES, ANALYST CERTIFICATIONS, LEGAL ENTITY DISCLOSURE AND THE STATUS OF NON-US ANALYSTS. US Disclosure: Credit Suisse does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

9 February 2018

Focus charts and tables Figure 2: 97.5% of leases (by rental income and NLA) have 2-3% p.a. rental escalations

Figure 1: Map of portfolio 12

No rental escalations 2.5%

Washington (45.4% of portfolio)

Washington 1. The Plaza Buildings (appraised value: US$243.9mn) 2. Bellevue Technology Centre (appraised value: US$133.0 mn) California (4.6% of portfolio) 3. Iron Point (appraised value: US$38.2 mn) 3 Colorado

California

Colorado (14.6% of portfolio) 4. Westmoor Centre (appraised value: US$121.4 mn) 4

Georgia (4.8% of portfolio) 9. Powers Ferry (appraised value: US$19.2 mn) 10. Northridge Centre (appraised value: US$20.5 mn) 9,10

Texas (25.3% of portfolio) 5.Great Hills (appraised value: US$33.3 mn)

With rental escalations 97.5%

Georgia Texas

6. Westech 360 (appraised value: US$43.8 mn) 7. 1800 West Loop (appraised value: US$82.0 mn)

5,6

Florida

7,8 Florida (5.2% of portfolio) 11. Maitland Promenade II (appraised value: US$43.4 mn)

8. West Loop I & II (appraised value: US$50.7 mn)

11

Portfolio breakdown is based on the appraised value, the higher of the independent valuations for each asset conducted by JLL and Cushman & Wakefield. Source: Company data

Source: Company data

Figure 3: Expiring rents are below market

Figure 4: Potential to raise occupancy

% of total leases expiring: 17.1%

% of total leases expiring: 16.8% $28.90

$27.76

23.5%

99.5% 97.0% 91.0% 91.9% 94.3% 94.3% 92.1% 94.9% 95.7% 94.8% 94.8% 91.6% 90.6% 90.5% 89.2% 91.6% 91.5% 90.3% 89.1% 88.9% 88.3% 87.7% 85.8% 84.1%

99.0% 99.0%

26.0%

$23.40

$22.03

90.7% 85.8% 90.0% 83.3% 85.3% 88.1% 82.6% 82.6%

83.2%

73.1%

Average rent of leases expiring in 2018F

Current average market rent for leases expiring in 2018F

Average rent of leases expiring in Current average market rent for leases 2019F expiring in 2019F

Maitland Iron Point Power Ferry Westech 360 Northridge Promenade II (Sacramento) (Atlanta) (Austin) Center I & II (Orlando) (Atlanta)

Occupancy as at June 2017

Great Hills Plaza (Austin)

Bellevue West Loop I & The Plaza Technology II Buildings Center (Houston) (Bellevue) (Seattle)

Committed occupancy as at Sept 2017

1800 West Loop South (Houston)

Westmoor Center (Denver)

Portfolio

Market occupancy

Source: Company data

Source: Company data

Figure 5: Possible to acquire accretively?

Figure 6: Office REIT 2018 dividend yields

Equity issue yield 6.00%

6.50%

7.00%

7.50%

8.00%

8.50%

Dilutiv e

Dilutiv e

Dilutiv e

Dilutiv e

Dilutiv e

Dilutiv e

6.00% Accretiv e Accretiv e

Dilutiv e

Dilutiv e

Dilutiv e

Dilutiv e

6.50% Accretiv e Accretiv e Accretiv e Accretiv e

Dilutiv e

Dilutiv e

7.00% Accretiv e Accretiv e Accretiv e Accretiv e Accretiv e

Dilutiv e

5.50% NPI yield

7.50% Accretiv e Accretiv e Accretiv e Accretiv e Accretiv e Accretiv e

Source: Credit Suisse estimates

Keppel KBS US REIT (KPEL.SI / KORE SP)

Source: Credit Suisse estimates

2

9 February 2018

Keppel KBS US REIT (KPEL.SI / KORE SP) Price (06 Feb 2018): US$0.88; Rating: OUTPERFORM; Target Price: US$0.97; Analyst: Nicholas Teh Income Statement (US$ mn) Gross revenue Property expenses Net property income EBITDA Net interest expense/(inc.) Recurring PBT Net profit (Credit Suisse) Distributable income Balance Sheet (US$ mn) Cash & cash equivalents Current receivables Current assets Property, plant & equip. Investment properties Investment in Associates/JV Total assets Current liabilities Long-term debt Total liabilities Unitholder funds Capital employed Cash Flow (US$ mn) EBIT Net interest Tax paid Working capital Other cash & non-cash items Operating cash flow Capex Net property acq. Investing cash flow Equity raised Dividends paid Financing cash flow Total cashflow Adjustments Net change in cash Per share Shares (wtd avg.) (mn) EPS (Credit Suisse) (US$) DPU (US$) BVPS (US$) NAV per share (US$) Earnings Growth (%) Gross revenue Net property income Net profit Distributable income DPU Margins (%) Net property income Pre-tax profit Net profit Valuation (x) P/E DPU yield (%) P/B EV/EBITDA Profitability (%) ROE ROA Credit ratios Net debt/equity (%) Net debt/EBITDA (x) Debt/asset (%)

12/16A 80 34 46 39 12 24 18 31 12/16A 21 0 21 0 804 0 825 8 287 300 526 817 12/16A 39 10 0 0 6 55 (20) (808) (832) 573 (15) 829 52 0 52 12/16A 629 0.03 0.05 0.84 n.a. 12/16A

12/17E 88 34 54 47 10 63 62 35 12/17E 21 0 22 0 830 0 851 8 287 299 552 843 12/17E 47 10 0 0 (22) 35 (6) 0 (6) 0 (35) (45) (15) 0 (15) 12/17E 629 0.10 0.06 0.88 n.a. 12/17E

12/18E 91 36 55 48 10 42 41 37 12/18E 27 0 27 0 850 0 877 8 306 318 559 868 12/18E 48 10 0 0 (0) 58 (18) 0 (18) 0 (37) (29) 11 0 11 12/18E 630 0.07 0.06 0.89 n.a. 12/18E

12/19E 94 37 57 50 11 43 43 39 12/19E 30 0 30 0 875 0 905 8 331 343 563 897 12/19E 50 11 0 0 (1) 60 (25) 0 (25) 0 (39) (25) 10 0 10 12/19E 634 0.07 0.06 0.89 n.a. 12/19E

6.7 10.4 35.6 13.5 13.5

9.5 16.2 239.5 12.4 12.4

3.2 1.6 (33.3) 5.4 5.1

3.8 4.2 2.9 5.9 5.3

57.7 30.0 22.9 12/16A 30.2 5.6 1.05 21.0 12/16A 7.0 4.4 12/16A 50.4 6.79 34.7

61.2 71.5 70.9 12/17E 8.9 6.3 1.00 17.3 12/17E 11.5 7.4 12/17E 48.0 5.62 33.7

60.2 46.5 45.8 12/18E 13.4 6.6 0.99 17.3 12/18E 7.5 4.8 12/18E 50.0 5.80 34.9

60.4 46.1 45.4 12/19E 13.1 7.0 0.99 17.1 12/19E 7.6 4.8 12/19E 53.5 6.03 36.6

Company Background Keppel KBS US REIT is an office REIT with assets in the US. The REIT manager is a 50/50 JV between Keppel Corporation and KBS, the 11th largest owner of office assets in the US.

Blue/Grey Sky Scenario

Our Blue Sky Scenario (US$) 1.06 Tightest yield that KORE's closest comparable Manulife US REIT traded to of 5.5% Our Grey Sky Scenario (US$) Similar price to book as Singapore office REITs of 0.9x

0.80

Share price performance

The price relative chart measures performance against the FTSE STRAITS TIMES IDX which closed at 3,386.57 on 06-Feb-2018 On 06-Feb-2018 the spot exchange rate was US$1/US$1

Source: Company data, Thomson Reuters, Credit Suisse estimates

Keppel KBS US REIT (KPEL.SI / KORE SP)

3

9 February 2018

Valuations comparison Figure 7: Singapore REIT valuation comparison Ticker

CT SP MCT SP SPHREIT SP FCT SP SGREIT SP CRCT SP LMRT SP

Singapore REITs Retail Capitaland Mall Trust Mapletree Comm. Trust SPH REIT Frasers Centrepoint Trust Starhill Global CapitaRetail China Trust Lippo-Malls Indo Retail Trust

Price Rating (S$)

TP Up/Dn Mkt Cap (S$) % (S$mn)

CY16

Yield ROE (%) CY17 CY18 T+1

P/B 6M ADT Free(x) (S$mn) float (%)

2.00 1.56 1.00 2.21 0.74 1.58 0.41

O O N N NR NR NR

2.30 1.73 0.98 2.26 -

15 11 -2 2 -

7,093 4,491 2,555 2,046 1,603 1,425 1,144

5.6 5.4 5.5 5.3 n.a. 6.4 8.4

5.6 5.6 5.6 5.4 6.7 6.4 7.4

5.6 5.8 5.6 5.6 6.9 6.7 8.4

5.8 5.9 4.8 5.7 5.7 5.8 8.4

1.0 1.1 1.1 1.1 0.8 1.0 1.1

25.3 8.3 1.9 2.3 2.4 1.9 1.9

71 61 30 59 64 63 64

1.70 1.91 1.18 1.41 0.71 0.91 0.88

U U U NR NR NR O

1.54 1.52 0.97 0.97

-9 -21 -18 10

6,242 5,109 3,996 1,240 1,098 1,243 731

5.2 5.2 5.4 7.0 7.3 4.1 5.6

5.1 5.3 4.8 6.9 6.6 5.7 6.3

5.0 5.3 4.9 n.a. 6.9 6.0 6.6

4.7 3.8 2.7 5.0 3.5 8.0 11.3

1.0 0.9 0.8 0.9 0.8 1.1 1.0

20.3 11.6 6.1 2.3 0.3 3.2 n.a.

67 95 53 72 38 93 82

2.60 1.21 1.94 1.09

N N N NR

2.63 1.18 1.82 -

1 -2 -6 -

7,702 3,821 3,695 1,657

6.0 6.1 5.8 n.a.

6.1 6.4 5.9 7.8

6.3 6.5 6.1 6.9

7.6 8.0 7.7 7.2

1.3 1.2 1.4 1.2

22.7 9.0 7.0 5.4

83 59 59 59

AREIT SP MLT SP MINT SP FLT SP

Office Capitaland Commercial Trust Suntec REIT Keppel REIT Frasers Comm OUE C-REIT Manulife US Keppel KBS US Industrial Ascendas REIT Mapletree Logistics Trust Mapletree Industrial Trust Frasers Logistics and Industrial Trust

CACHE SP AAREIT SP EREIT SP

Cache Logistics Trust AIMS AMP Industrial REIT ESR REIT

0.85 1.33 0.57

NR NR NR

-

-

911 853 742

8.2 n.a. 7.4

7.8 7.9 6.9

7.5 7.9 7.6

8.6 7.2 7.2

1.1 1.0 1.0

2.0 0.9 0.7

93 81 92

AIT SP SSREIT SP SBREIT SP

Ascendas India Trust Sabana REIT Soilbuild Business Space REIT

1.05 0.39 0.66

NR NR NR

-

-

982 411 691

5.4 n.a. 9.3

5.6 n.a. 8.7

6.4 n.a. 7.6

7.1 n.a. 6.7

1.6 0.7 0.9

0.9 0.5 1.3

80 89 67

VIT SP

0.90

NR

-

-

878

7.8

8.3

8.4

8.6

1.2

1.0

15

KDCREIT SP

Viva Industrial Trust Data Centre Keppel DC REIT

1.36

O

1.47

8

1,533

4.5

5.4

5.7

7.7

1.4

3.0

65

ART SP CDREIT SP FEHT SP

Hospitality Ascott Residence Trust CDL Hospitality Trusts Far East Hospitality Trust

1.18 1.66 0.71

N O NR

1.11 1.70 -

-6 3 -

2,537 1,991 1,319

7.0 6.0 6.1

5.7 5.6 5.6

6.2 6.1 5.8

5.5 6.1 4.2

0.9 1.1 0.8

2.9 2.9 1.1

48 63 37

OUEHT SP FHT SP ASCHT SP

OUE Hospitality Trust Frasers Hospitality Trust Ascendas Hospitality Trust

0.85 0.78 0.86

N NR NR

0.80 -

-6 -

1,544 1,452 972

5.4 n.a. n.a.

6.0 7.9 n.a.

5.9 6.1 5.8

5.7 6.5 3.5

1.1 0.9 1.0

1.6 1.0 0.7

66 35 55

CCT SP SUN SP KREIT SP FCOT SP OUECT SP MUST SP KORE SP

Source: Company data, Credit Suisse estimates, IBES estimates

Keppel KBS US REIT (KPEL.SI / KORE SP)

4

9 February 2018

Room to grow Diversified across the US Keppel-KBS US REIT (KORE) holds an initial portfolio of 11 freehold US offices across seven markets in the US. Specifically these are—The Plaza and Bellevue Technology Center in Seattle (32% of Portfolio cash rental income), Iron Point in Sacramento (6%), Westmoor Center in Denver (15%), Westech 360 and Greathills in Austin (12%), 1800 Westloop and Westloop I&II in Houston (21%), Power Ferry Landing and Northridge Center I&II in Atlanta (7%), and Maitland Promenade II in Orlando (7%). Overall, the portfolio is largely Class A, with Class A suburban assets accounting for 37% of the portfolio by cash rental income, followed by Class A CBD assets at 32% and Class B/B+ at 31%.

Several growth drivers Organic growth for KORE will be underscored by annual escalations of 2.0-3.0% which affect 97.5% of existing leases, by cash rental income. Meanwhile, KORE's lease expiry profile is relatively well spread with 16.5-17.3% of leases by cash rental income expiring p.a. in 2018E-19E, allowing it to mark-to-market existing rents, particularly given that expiring rents in 2018E and 2019E are an estimated 23.5-26.0% below market. We believe, the Plaza Buildings and Bellevue Technology Center will have the steepest discount to market rents at 26.7-36.2% for 2018E, however, historical data from KBS imply that expiring rents for Westloop I & II, 1800 Westloop and Northridge may also be significantly below market. The average occupancy of KORE's portfolio was 90% which could allow for upside from occupancy improvements, particularly in buildings where current occupancy levels are below market such as The Plaza Buildings and Bellevue Tech Center which are 6.4 pp and 5.7 pp below market.

A large market to acquire A key strategy for KORE, is on investments and acquisition, while there is no ROFR available, the US market has transacted over US$100 bn p.a. worth office assets since 2013. KORE will be able to leverage off its US asset manager, KBS Capital Advisors LLC (KBS), the 11th largest US owner of office properties globally. KORE's initial gearing (debt/total assets) of 36.0%, leaves a debt headroom of only US$71 mn before hitting 40.0%. As such, larger acquisitions are likely to require equity fund raising, and we estimate that if KORE were to fund future acquisitions with 70% equity and 30% debt, a potential acquisition with an initial NPI yield 6.5% would only be immediately DPU accretive if equity issued to fund the acquisition are below 7.5% yield. The added benefit of acquisitions would be that funds raised can be used to increase its tax shield, and push expected tax liabilities further out.

Initiate coverage with OUTPERFORM We are initiating coverage on KORE with an OUTPERFORM rating and target price of US$0.97 per unit, implying total returns of 17%. Given low expiring rents throughout 2018 and 2019, step ups of 2.5% and occupancy improvements, KORE should provide one of the strongest organic growth profiles within our REIT coverage over the next two years. Meanwhile, the potential to acquire asset from KBS and source for assets directly in a large market provides a good opportunity to grow the portfolio inorganically.

Key risks We believe the key risks to KORE are: (1) changes to tax law; (2) economic risk; (3) competition risk; (4) acquisition risks which can cause DPU dilution while lack of acquisitions could result in rising tax expenses; and (5) unexpected decline in office demand.

Keppel KBS US REIT (KPEL.SI / KORE SP)

5

9 February 2018

Diversified across the US Figure 8: Map of Keppel-KBS US REIT's assets Washington (45.4% of portfolio) 12 Washington 1. The Plaza Buildings (appraised value: US$243.9mn) 2. Bellevue Technology Centre (appraised value: US$133.0 mn) California (4.6% of portfolio) 3. Iron Point (appraised value: US$38.2 mn) 3

Colorado (14.6% of portfolio) 4. Westmoor Centre (appraised value: US$121.4 mn) Colorado 4

California

Georgia (4.8% of portfolio) 9. Powers Ferry (appraised value: US$19.2 mn) 10. Northridge Centre (appraised value: US$20.5 mn) 9,10

Texas (25.3% of portfolio) 5.Great Hills (appraised value: US$33.3 mn)

Georgia

6. Westech 360 (appraised value: US$43.8 mn) 7. 1800 West Loop (appraised value: US$82.0 mn)

Texas 5,6

Florida

7,8 Florida (5.2% of portfolio) 11. Maitland Promenade II (appraised value: US$43.4 mn)

8. West Loop I & II (appraised value: US$50.7 mn)

11

Portfolio breakdown based on appraised values of each asset, which is the higher of the two independent valuations conducted on each asset by JLL and Cushman & Wakefield. Source: Company data

Keppel-KBS US REIT's (KORE) initial portfolio comprises of 11 commercial assets of varying size and value, spread across the US. Geographically, the assets broadly are clustered into three areas: (1) West Coast (Washington and California) which makes up c.50% of the portfolio's appraised value; (2) Central (Colorado and Texas) which constitutes almost 40% of the portfolio; and (3) East Coast (Georgia and Florida) which accounts for c.10% of the portfolio. Key details of the portfolio are summarised below.

Figure 9: Summary of Keppel-KBS US REIT's office assets Parking Occu- No. of pancy# tenants stalls

WALE by Avg rent

Valuation

Purchase Suburban Office

(US$ mn)

price (US$ mn)

Land Completion tenure year

NLA (sq ft)

p.a.)

JLL

The Plaza Buildings Seattle Bellevue Tech Center Seattle

FH FH

1978 – 1983 2000

490,994 330,508

1,254 1,320

89.2% 90.6%

66 15

3.0 4.1

38.74 30.51

236.1^ 129.3^

243.9 133.0

Iron Point Westmoor Center Great Hills Plaza Westech 360 1800 West Loop West Loop I & II Powers Ferry Northridge Center Maitland Promenade II

FH FH FH FH FH FH FH FH FH

1999 1998 – 1999 1985 1986 1982 1980 – 1981 1985 1985 – 1989 2001

211,887 607,755 139,252 173,058 398,490 313,873 146,352 186,580 226,990

1,351 2,800 471 628 1,024 1,044 569 724 1,052

99.5% 82.6% 91.9% 94.3% 85.8% 90.5% 94.8% 92.1% 99.0%

31 21 15 31 54 54 22 27 12

2.5 4.7 4.4 2.9 2.8 4.6 3.8 2.6 5.2

23.36 23.88 31.09 33.52 29.57 26.31 18.68 18.74 23.77

38.2 118.2 33.3 43.8 82.0 50.7 18.3 20.5 37.0

35.2 121.4 33.0 39.8 75.1 41.9 19.2 20.2 43.5

807.4

806.1

Asset

US City

NLA for Jun-17 (years) (US$ psf

(3Q17)

Sacramento Denver Austin Austin Houston Houston Atlanta Atlanta Orlando

Total/average

3,225,739 12,237

90.0% 340*

3.8

/ CBD

class

Cushman 236.4 CBD A 128.9 Suburban A & B 37.0 Suburban A 117.7 Suburban A 32.3 Suburban B 42.5 Suburban B 79.5 49.1 18.6 19.9 42.1

CBD Suburban Suburban Suburban Suburban

A A B B A

804.0

Note: Average rents for June 2017 are annualised. FH = Freehold; # Committed occupancy as at 30 September; ^ For Plaza Buildings, valuation takes into account value of air lots above average which may be developed as unutilised plot ratio. For BTC, valuation takes into account value of vacant lot which may be developed as unutilised plot ratio; *Total number of tenants is lower than sum of individual buildings due to overlapping tenants in properties. Data as at 30 June 2017. Source: Company data

Keppel KBS US REIT (KPEL.SI / KORE SP)

6

9 February 2018

A mix of Suburban and CBD offices The REIT's portfolio is made up of a combination of Class A and Class B assets in both CBD and Suburban locations. Geographically, the largest key markets are: (1) Seattle in Washington (32% of cash rental income); (2) Houston, Texas (21%); (3) Denver, Colorado (15%); and Austin, Texas (12%). The remaining 20% is split roughly equally between Atlanta, Orlando and Sacramento.

Figure 10: Office class composition*

Figure 11: Geographical breakdown of portfolio*

Atlanta 7% Class B and B+ Suburban 31%

Seattle 32%

Class A CBD 32%

Orlando 7%

Denver 15%

Class A Suburban 37%

Sacramento 6%

* By cash rental income. Source: Company data

Houston 21%

Austin 12%

* By cash rental income. Source: Company data

Exposure to growing metros KORE's offices are located in cities with the fastest growing populations, in particular, Austin, Houston, Orlando, Denver, Bellevue and Atlanta were all part of the Top 15 fastest growing metropolitan statistical areas based on a 2011-16 CAGR, with Austin being the fastest growing in the US. Moving forward, Cushman & Wakefield expects all seven markets to continue to grow above the average 2017-21E CAGR of 0.7%, with Orlando and Austin growing the fastest at 3.1% and 2.8%, respectively.

3.5% 3% 3%

3%

2.5% 2% 2%

2% 2% 2%

2% 2%

2% 2% 2%

2.1%

2.0% 2% 2% 2% 2% 2%

1.5%

2% 1%

1% 1% 1%

1% 1%

1% 1% 1% 1% 1.0%

1.6% 1.3%

0.0%

0.0%

Orlando

0.5%

Austin Raleigh Houston Orlando San Antonio Dallas Denver Nashville Charlotte Phoenix Las Vegas Seattle-Bellevue Jacksonville Oklahoma Atlanta Salt Lake Miami Tampa Portland Washington San Francisco San Jose Columbus San Diego Riverside Sacramento New Orleans Indianapolis Richmond Minneapolis Grand Rapids Boston

1.0%

1.0%

0.5%

Keppel KBS US REIT (KPEL.SI / KORE SP)

1.9%

1.5%

1.0%

Source: US Census Bureau, Credit Suisse

US average = 1.0%

Seattle

2.0%

2.8%

Houston

2.5%

3%

Atlanta

3.0%

3.1%

3.0%

Sacramento

3.5%

4%

Austin

4.0%

Figure 13: Office-using employment CAGR (201721E) by market

Denver

Figure 12: Population growth CAGR 2011-16 by Metropolitan statistical area

Source: Moody's, Cushman & Wakefield

7

9 February 2018

Similarly, employment growth is expected to continue to be healthy. Specifically for officeusing employment growth. Cushman expects a 2017-21E CAGR of between 1.0% to 2.6% for KORE's various markets over 2017-21E, which should be supportive of a positive net office demand.

Figure 14: Office-using employment CAGR (2017-21E) by market 3.0% 2.6% 2.5%

1.9%

2.0%

1.8% 1.6%

1.4%

1.5%

1.3%

1.0%

1.0%

0.5%

0.0% Orlando

Austin

Houston

Seattle

Atlanta

Denver

Sacramento

Source: Moody’s, Cushman & Wakefield

Manageable supply for KORE's markets According to Cushman & Wakefield, incoming supply looks to be largely manageable for the submarkets which KORE is exposed to. Amongst KORE's portfolio, the largest completions were seen in Bellevue CBD (where the Plaza Buildings are located) in 2017. However, we would note that those incoming buildings were already 90-100% committed by companies such as Amazon, Valve, WeWork and Salesforce, while no buildings are under construction for now, with the known incoming supply being the 370k sqft Summit III project which may breakground only in 2019. Meanwhile, in the Eastside suburban market, completions equivalent to 3% of the total stock are coming up in 2018. This is from one development, the Kirkland Urban office park (~15 minutes drive from Bellevue Tech Center). This includes tenants such as Tableau, QFC, and Wave, while reports have noted that including on-going discussions on other spaces in phase 1 of the project, pre-leasing would be ~75%.

Figure 15: Completions as a percentage of total stock

2017 2018 2019

Bellevue CBD

Eastside suburban office

Carmichael

Northwest Denver

Northwest Austin

6.8% 0.0% 0.0%

0.0% 3.0% 2.2%

0.0% 0.6% 0.6%

0.0% 0.9% 1.2%

1.2% 0.6% 0.6%

Westloop Cumberland/IGalleria 75 0.0% 0.0% 0.0%

3.6% 0.5% 0.6%

North Central/I285/GA 400

Maitland

1.6% 1.2% 0.6%

0.0% 0.6% 0.8%

Source: Company data, Credit Suisse estimates

Keppel KBS US REIT (KPEL.SI / KORE SP)

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Declining vacancy for most markets Figure 16: Vacancy trends Bellevue CBD 2012 2013 2014 2015 2016 2017

Eastside suburban Carmichael office

10.8% 9.9% 8.4% 12.0% 7.5% 8.2%

12.6% 13.4% 10.2% 8.2% 9.1% 9.0%

21.3% 20.4% 20.0% 17.9% 15.6% 15.6%

Northwest Denver

Northwest Austin

21.1% 20.5% 19.9% 19.0% 19.6% 18.5%

16.4% 16.0% 14.6% 14.2% 14.9% 14.8%

Westloop Cumberland/IGalleria 75 11.5% 10.5% 8.4% 10.7% 13.2% 14.2%

17.8% 17.1% 18.0% 19.3% 16.8% 18.4%

North Central/I285/GA 400

Maitland

21.7% 20.1% 18.9% 18.5% 19.1% 20.0%

18.0% 18.1% 17.3% 17.1% 15.1% 14.7%

Source: Company data, Credit Suisse estimates

Vacancy rates have been declining for most markets, and are particularly low for Bellevue CBD and the Eastside suburban office market at 8.2-9.0%. In markets such as Westloop Galleria in Houston, vacancy rates have been rising and now stands at 14.2%, however, limited incoming supply would put some pressure on rents moving forward. We do note, however, that KORE's assets are located close to the Texas Medical Centre (particularly West Loop I & II), the largest medical complex in the world which is home to the world's largest children's hospital and world's largest cancer hospital. As a result of its close proximity, a significant 46% of West Loop's NLA is leased to tenants in the resilient medical and healthcare sector. Vacancy rates are also high in markets such as Northwest Denver where Westmoor (11% of NPI) is located and in Atlanta where Powersferry (2.7% of NPI) and Northridge (3.0% of NPI) are located.

Broad trade sector exposure KORE's tenants are spread across several sectors with professional services, and finance and insurance companies making up 35% and 29% of cash rental income, respectively. Additionally, its diverse tenant base and assets ensure there is less reliance on any single tenant with its Top 10 tenants only accounting for 22.4% of the total cash rental income. These tenants are mainly in Westmoor Center, Bellevue Technology Center and The Plaza buildings.

Keppel KBS US REIT (KPEL.SI / KORE SP)

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Figure 17: Portfolio trade sector exposure by cash rental income

Figure 18: Portfolio trade sector exposure by NLA

Source: Company data

Source: Company data

Figure 19: Top 10 tenants by portfolio cash rental income Tenant

Property

Trade sector

Zimmer Biomet Spine, Inc. Unigard Insurance Company ServiceLink Field Services

Westmoor Center Bellevue Technology Center Westmoor Center

Technology Finance and Insurance Finance and Insurance

3.0% 2.7% 2.3%

Ball Aerospace & Tech Corp

Westmoor Center

Professional Services

2.2%

Reed Group, LTD US Bank National Association Oracle America, Inc.

Westmoor Center The Plaza Buildings Westmoor Center

Finance and Insurance Finance and Insurance Professional Services

2.2% 2.2% 2.1%

Regus PLC Blucora, Inc. Health Care Service Corp

Bellevue Technology Center The Plaza Buildings 1800 West Loop

Professional Services Technology Finance and Insurance

1.9% 1.9% 1.8%

Top 10 tenants

% of cash rental income

22.4%

Source: Company data

Tax efficient structure KORE's company structure will take on a similar form to Manulife US REIT, a way which allows for minimal taxation, although with several ownership conditions including a 9.8% ownership limit for all unitholders including for its sponsors, Keppel and KBS.

Keppel KBS US REIT (KPEL.SI / KORE SP)

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9 February 2018

Figure 20: Structure of Keppel-KBS US REIT

Source: Company data

We believe a clearer understanding of the structure can be obtained from looking at the flow of money from KORE to the entities owning the assets (Lower Tier US REITs) and how the income is finally flowed back to unitholders.

How will the proceeds be channeled? The structure of KORE has been set up in a way where there are essentially five layers. Moving down Figure 20: ■

Keppel-KBS US REIT will wholly-own Singapore Sub 1 and Singapore Sub 2, and will inject any capital raised into these two subsidiaries.



Singapore Sub 1 and 2 will inject the capital into its Parent US REIT in two ways:

Keppel KBS US REIT (KPEL.SI / KORE SP)

o

Singapore Sub 1 (SG Sub 1) will contribute equity funding to the Parent US REIT in return for 100% of the voting common shares.

o

Singapore Sub 2 (SG Sub 2) will inject capital into it directly and indirectly wholly owned companies and a partnership in Barbados. Subsequently, the partnership will extend a loan to the Parent US REIT, which may periodically repay the loan or refinance the loan at the prevailing interest rates, at or near maturity.

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9 February 2018



Parent US REIT holds the common shares of the Upper Tier Sub US REITs and channels the funds from SG Sub 1 and SG Sub 2 to each of them in exchange for 100% of the voting common shares.



Upper and Lower Tier Sub US REITs. The Upper Tier Sub US REITs will subsequently inject the equity funding into the relevant Lower Tier Sub US REITs which will then each own a single asset.

Each US REIT (Sub and Parent) will issue approximately 125 preferred shares to individuals unrelated to KORE or the Sponsors, due to the US REIT incorporation tax requirements for US REITs to have a minimum of 100 shareholders. These preferred shares are subject to transfer restrictions to ensure the beneficial ownership continues to be held by 100 or more persons.

Withholding tax mainly incurred with dividends from Parent US REIT to SG Sub 1 Income generated from the US assets will be distributed from the US Sub REITs, to the Parent US REIT. The Upper/Lower Tier US Sub REITs and Parent US REIT will elect to be taxed as US REITs, which similar to the Singaporean REITs, have to pay out at least 90% of income as dividends to qualify for tax transparency. After which, the Parent US REIT will channel the funds to SG Sub 1 via dividends and SG Sub 2 via interest payments and principal repayments. The transfer of funds from Parent US REIT to the SG Subs will be where the tax shield/tax leakage will mainly occur.

30% withholding tax at SG Sub 1 Dividends from Parent US REIT to SG Sub 1 will incur a 30% withholding tax, however, we expect dividend payments to be minimal, this is mainly due to the interest payments to service the intercompany loan from SG Sub 2 and the depreciation charges for the US Office assets (US REIT entities subject to US GAAP accounting).

Interest payments and principal repayments to SG Sub 2 form the tax shield The income received at SG Sub 2 will not be subject to US federal income tax or the 30% withholding tax as long as the interest qualifies as "portfolio interest" where the requirements include: 1.

The beneficial owner does not actually or constructively own 10% or more of the total combined voting power of all classes of units entitled to vote

2.

The beneficial owner is not a controlled foreign corporation to which parent US REIT is a "related person" within the meaning of the IRC.

3.

The beneficial owner has timely provided a statement signed under penalties of perjury that includes its name and address and certifies that it is a Non-US Unitholder in compliance with applicable requirements, on an applicable IRS Form W-8.

Subsequently, SG Sub 1 and 2 will then distribute the payments to KORE. IRAS exemption for distribution from SG Sub 1 and 2 to KORE KORE made an application for tax ruling from the Inland Revenue Authority of Singapore (IRAS) which allows capital repayments and dividends from SG Sub 1, SG Sub 2 and future subsidiaries of KORE (set up to disburse funds to the Parent US REIT) to not be subject to taxes in Singapore, subject to certain conditions. Committed to distributing 100% of distributable income until end 2019 KORE has committed to paying out 100% of distributable income until end 2019, after which, it will pay out at least 90% of distributable income on a semi-annual basis. Keppel KBS US REIT (KPEL.SI / KORE SP)

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Unit ownership limit of 9.8% A key requirement under the structure of Keppel-KBS US REIT will be the unit ownership limit of 9.8% applicable to all unitholders as it allows the US entities to be deemed as US REITs and for the interest and principal repayments received by SG Sub 2 to qualify as "portfolio interest", and hence, not incur taxes. To ensure this limit is maintained, in the event that any unit holder breaches more than 9.8% of total units in Keppel-KBS US REIT, directly or indirectly, the units will be automatically forfeited and held by the Trustee. All rights attributable to those units, including voting rights and right of distributions, will be held by the Trustee. The Trustee will have the right and power to dispose of the units forfeited and the unit holder will receive the proceeds (net of any expenses), capped by the price paid by the unitholder. Any surplus will be donated to a charity, or philanthropic organisation/purpose.

How sustainable is the tax shield? Depreciation will continue to be a cash trap on the US REITs level. To overcome this, a proportion of repatriated income from the Parent US REIT to KORE is likely to be in the form of principal repayment of the intercompany loan from SG Sub 2. As a result, this will continue to lower the value of the loan outstanding, and hence, lower the future interest payments. To mitigate this decline in outstanding amount, we believe that any debt and equity funding raised at the KORE level for future acquisitions/capex will once again be channeled down to the Parent US REIT via SG Sub 1 and SG Sub 2 such that the amount of the intercompany loan will be raised. Growing rents will continue to raise the profitability of the Sub US REITs, eventually leading to higher payment of taxable dividends from the Parent US REIT to SG Sub 1, however, this can be mitigated by carrying forward prior year losses. If there are not additional acquisitions and there is no additional capital injected into SG Sub 2, we estimate that KORE will start to incur withholding tax expenses from payments from Parent US REIT to SG Sub 1 in 2021.

Further changes to tax legislation? A key risk could arise from further changes to the tax legislation in the US where technical corrections, regulations or administrative guidance addressing the new provisions under the US Tax Act may be enacted or issued in the future. However, for now, the changes so far have already been addressed in the latest structure.

Franchise tax in Texas Specifically for Texas, the state is subject to a franchise tax based on the Texas taxable margin. This franchise tax is calculated on the taxable margin (defined as the entity's total revenue less the greater of total cost of goods sold or total compensation, but capped at 70% of the entity's total revenue) apportioned to Texas based on the single sales factor, and is taxed at 0.75%.

Keppel KBS US REIT (KPEL.SI / KORE SP)

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9 February 2018

Several growth drivers Annual escalations The main driver of organic growth for KORE will come from the fact that 97.5% of existing leases, by cash rental income, have built in annual escalations of 2.0-3.0%. We have estimated that this will provide annual growth of 2.5% for the portfolio on average.

Figure 21: 97.5% of existing leases (by cash rental and NLA) have rental escalations of 2-3% p.a. No rental escalations 2.5%

With rental escalations 97.5%

Source: Company data

Balanced lease expiry profile KORE's lease expiry profile is relatively well spread with 16.5-17.3% of leases by cash rental income expiring per year in 2018E-19E. Meanwhile, for 2H17 only 6.4% of leases are left for renewal. The proportion of expiries is expected to remain relatively similar till at least 2021E, according to the lease expiry profile as at 30 June 2017. This will give KORE the opportunity to gradually mark-to-market its existing rents and allow rent reversions to have a relatively larger impact on the REIT's organic growth profile.

Figure 22: Portfolio lease expiry profile 35% 31.3%

30.4%

30% 25% 20%

16.8% 17.3%

17.1%

16.5%

15%

14.9%

16.2%

13.3%

13.2%

10% 6.6%

6.4%

5% 0% 2017

2018

2019

NLA

2020

2021

≥2022

Cash rental income

Note: Does not include potential renewals for leases expiring between 30 June 2017 and 31 December 2017. Source: Company data

Keppel KBS US REIT (KPEL.SI / KORE SP)

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9 February 2018

Which buildings will be driving reversions? Based on the current passing rents and individual building leases expiry profiles, we estimate that expiries in FY18 and FY19 will largely be driven by five key buildings, which are The Plaza Buildings, Bellevue Tech Center, Iron Point, Westmoor Center and 1800 West Loop South. ■ In 2018, we estimate that these five buildings will account for 84% of the 17.3% expiring leases by cash rental income. ■ In 2019, we estimate that these five buildings will account for 68.1% of the 16.5% expiring leases by cash rental income.

Figure 23: Breakdown of expiries in 2018 Maitland Promenade II 1%

Great Hills Plaza 1%

Powers Ferry 2%

Figure 24: Breakdown of expiries in 2019

Bellevue Technology Center 3% Northridge Center I & II 3%

West Loop I & II 3% The Plaza Buildings 28%

Westech 360 7% Iron Point 10%

Westech 360, 5% Northridge Center I & II, 5%

Powers Ferry, 3%

Maitland Promenade II, 6%

1800 West Loop, 21%

West Loop I & II, 6%

Westmoor Center, 15%

Iron Point, 8% Westmoor Center 21%

1800 West Loop 21%

Note: as of 30 June 2017. Source: Company data, Credit Suisse estimates

Keppel KBS US REIT (KPEL.SI / KORE SP)

Great Hills Plaza, 8%

The Plaza Bellevue Buildings, 13% Technology Center, 11%

Source: Company data, Credit Suisse estimates

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9 February 2018

Expiring rents are below market On average, we note that the passing rents for KORE's portfolio are below market rates, given the strong pick up in rents across key markets. In particular, for 2018E, the average rent for expiring leases is 23.5% lower compared to the average market rents, meanwhile, for 2019, the average rent of leases expiring is at an even steeper 26.0% below average market rents.

Figure 25: Expiring rents vs market for 2018 and 2019 % of total leases expiring: 17.1%

% of total leases expiring: 16.8%

$28.90 $23.40

$27.76

23.5%

Average rent of leases expiring in 2018F

$22.03

26.0%

Average rent of leases expiring in Current average market rent for leases 2019F expiring in 2019F

Current average market rent for leases expiring in 2018F

Note: rents are quoted in US$ psf p.a. Source: Company data

Upside from the Plaza Buildings and Bellevue Technology Center Most notably, the expiring rents for the Plaza Buildings and Bellevue Technology Center are a significant 26.7% and 36.2% below market, respectively, and should likely show the strongest reversions.

Figure 26: The Plaza 2018 expiring rents are 26.7% below market % of Plaza Building's leases expiring:

22.5%

USD 32.93

USD 41.72

Figure 27: Bellevue Technology Center 2018 expiring rents are 36.2% below market % of BTC's leases expiring:

3.7% USD 31.22

26.7% USD 22.93

Rent of leases expiring in 2018F

Current market rent

Note: rents are quoted in US$psf p.a. Source: Company data

Keppel KBS US REIT (KPEL.SI / KORE SP)

36.2%

Rent of leases expiring in 2018F

Current market rent

Note: rents are quoted in US$psf p.a. Source: Company data

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9 February 2018

Rents of other assets also look to be below market Historical SEC filings in 2013 by KBS Strategic Opportunity REIT imply that average rents at Westloop I & II, 1800 Westloop and Northridge may also be significantly below market, in addition to Bellevue Tech Centre and The Plaza. For these buildings, the average rents in 2012 or at acquisition (between 2012-13) were between 26.2-35.2% below current asking rents. While the average rents in 2012/2013 would have been subject to annual escalations, we believe that these are unlikely to have been substantial enough to bring them up to current market levels. Imputing an annual step up of 2.5% to the passing rents back in 2012/2013, would still imply that expiring rents are 11.5-19.5% below current market asking rents for Westloop I & II, 1800 Westloop and Northridge. For Power Ferry Landing, rents back in 2012 were only US$18.94 psf p.a. implying that expiring rents would be ~5% below current market rates, however, its WALE was only 1.6 years then, implying that a lot of the leases may have already been renewed and brought up to market levels. On aggregate, our estimates imply rent reversions of about 9.6% and 8.9% for KORE's portfolio as a whole in FY18E and FY19E, respectively.

Figure 28: Implied expiring rents vs asking rents Average 2012 rent/at acquisition The Plaza Bellevue Technology Center Westloop I & II 1800 Westloop Northridge Powers Ferry Landing Iron Point

As of WALE Implied expiring Asking rents Variance between rents implied expiring (years) (US$ psf p.a.) (US$ psf p.a.) and asking rents 38.0 28.23 31-Dec-13 NA 31.2 21.9% 31.7 22.05 31-Dec-12 5.2 24.9 27.0% 28.5 21.08 31-Dec-12 3.2 23.9 19.5% 32.3 24.67 31-Mar-13 4.5 27.9 15.8% 21.5 17.04 31-Dec-12 3.1 19.3 11.5% 22.5 18.94 31-Dec-12 1.6 21.4 5.0% 21.58 31-Dec-12

3.5

24.4

23.0

-5.8%

Note: implied expiring rents based average rents in 2012/2013 growing at 2.5% p.a. Source: Company data, Credit Suisse estimates

Potential for occupancy improvement As at 30 Sept 2017, the average occupancy of KORE's portfolio was 90.0%. This provides some potential for upside from occupancy improvements, particularly in buildings where current occupancy levels are below market.

The Plaza and Bellevue Technology Centre occupancy rates show biggest gaps to market The largest gaps come from assets in strong markets such as Bellevue. This includes The Plaza buildings (89.2% occupied as of 30 Sept 2017) and the Bellevue Tech Centre (90.6% occupied as of 30 Sept 2017) where occupancy levels are 6.4 pp and 5.7 pp below market levels, respectively.

Keppel KBS US REIT (KPEL.SI / KORE SP)

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Figure 29: Occupancy rate vs market

99.5% 97.0% 91.0% 91.9% 94.3% 94.3% 92.1% 94.9% 95.7% 94.8% 94.8% 91.6% 90.6% 90.5% 89.2% 91.6% 91.5% 90.3% 89.1% 88.9% 88.3% 87.7% 85.8% 84.1%

99.0% 99.0%

90.7% 85.8% 90.0% 83.3% 85.3% 88.1% 82.6% 83.2% 82.6%

73.1%

Maitland Iron Point Power Ferry Westech 360 Northridge Promenade II (Sacramento) (Atlanta) (Austin) Center I & II (Orlando) (Atlanta)

Occupancy as at June 2017

Great Hills Plaza (Austin)

Bellevue West Loop I & The Plaza Technology II Buildings Center (Houston) (Bellevue) (Seattle)

Committed occupancy as at Sept 2017

1800 West Loop South (Houston)

Westmoor Center (Denver)

Portfolio

Market occupancy

Source: Cushman & Wakefield

In these two submarkets within the greater Seattle region, we believe strong tech demand will be a driver in bringing new tenants into the office buildings. According to JLL, SeattleBellevue accounted for 29% of 9M17 national net absorption and based on the 7.3 mn sq ft of tracked tenant demand currently, the momentum is expected to continue. Meanwhile, it is also the fastest growing "tech hub" in the US with a 10.7% rise in its share of open tech-jobs over the past year, with 57% of job openings with salaries of over US$100k. Additionally, most of the assets under KORE have gone through some form of refurbishment since 2013 which will help to improve the attractiveness for tenants.

Figure 30: Most assets have been refurbished since 2013 The Plaza Buildings

Last refurbishment

Details

2014-2015

Recent refurbishments include renovations of both lobbies with new modern designs, along with a refresh of the

Bellevue Technology Center 2013-2014

building exteriors Includes Building G&H: Lobby and common area renovations, Building D: new entrance and parking field, Building C: update to property amenities, Building extra parking

Iron Point

2013

Complete lobby renovation at 1180 building while other buildings received new furniture and other improvements between 2014-2016

Westmoor Center

2014-2016

Capital improvements have been made since 2006, including build-out of the business center in Westmoor Center III and mechanical upgrades, including elevator modifications and lobby renovations.

Great Hills Plaza Westech 360

2014 2014

1800 West Loop West Loop I & II Powers Ferry Northridge Center I & II Maitland Promenade II

2013-2014 2013-2014 2013 2011 2011

Complete renovation of the lobby, custom artwork, modern furniture and concierge desk added Complete remodel of restrooms and lobby upgrades to each building as well as major landscaping overhaul including clearing overgrowth and installing outdoor lighting and new monument signage Complete renovation of building lobby, elevator modernization, new conference room facility. Significantly refurbished during 2013 and 2014 Property completely renovated including lobby, restrooms, corridor and café N.A. N.A.

Source: Company data

Keppel KBS US REIT (KPEL.SI / KORE SP)

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Figure 31: 8 big tech hubs according to JLL

Source: http://www.jll.com/seattle/en-us/research/snapshots/206/seattle-bellevue-7-31-2017-tech-hub-growth

The Plaza had already increased its committed occupancy by 5.1 pp to 89.2% from 2Q173Q17. Meanwhile, Bellevue Technology Center's close proximity to Microsoft's campus should be an advantage while current tenants such as MOD Super Fast Pizza (8.2% of Bellevue Technology Center rental income), is one of the fastest growing fast-casual food chains in the US, according to the Business Journal1 and as such, could require more office space as a results of its rapid growth. For other assets where the market occupancy is only slightly below market, we would expect the lease up potential to be more gradual.

1

https://www.bizjournals.com/seattle/news/2017/06/14/mod-pizza-growth-fast-casual-restaurant-technomic.html

Keppel KBS US REIT (KPEL.SI / KORE SP)

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9 February 2018

Figure 33: Change in occupancy in Sept-2017 vs Jun-2017

Source: Company data

6% 5.1% 3.8%

4%

2.8%

3% 2%

2.2%

1.9%

1.7% 0.6%

0.0%

Portfolio

0.0% Maitland Promenade II

0.0%

Northridge Center I & II

Iron Point

Bellevue Technology Center

The Plaza Buildings

0%

Westmoor Center

0.0%

Powers Ferry

1%

Portfolio

2.6%

West Loop I & II

5%

1800 West Loop

90.0%

Westech 360

99.0%

Maitland Promenade II

Northridge Center I & II

Powers Ferry

West Loop I & II

1800 West Loop

Westech 360

Great Hills Plaza

Westmoor Center

Iron Point

Bellevue Technology Center

The Plaza Buildings

99.5% 94.8%92.1% 91.9%94.3% 100% 90.5% 89.2%90.6% 85.8% 82.6% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

Great Hills Plaza

Figure 32: Occupancy as of Sept-2017

Source: Company data

Vacancy risk for those above market occupancy? Several of KORE's assets look to have occupancies above market which would imply the risk of higher vacancies. In particular, these are Maitland Promenade II (Orlando), Iron Point (Sacramento), Powers Ferry Landing (Atlanta) and Northridge Center I & II (Atlanta). In total these four buildings accounted for about 18.1% of KORE's 2016 Net Property Income (NPI). ■ Powers Ferry Landing's (2.7% of 2016 NPI) micro market occupancy is weighed down specifically by one particular building, The Pavilion Building, which is a building on the corporate campus of Voya investments (formerly ING). Meanwhile the rest of the buildings are 85-100% occupied. ■ Northridge Center I & II's (3.0% of 2016 NPI) micro market is made up of several buildings with varying occupancy from as low as 3.4%. However, we do note that for the three buildings in the immediate vicinity, on Northridge Rd and Roberts Dr, occupancies are lower than Northridge Center I & II at 71.9-86.2%. ■ Maitland Promenade II's (6.4% of 2016 NPI) submarket is mostly made up of buildings which were largely built between 1985-95, as compared to Maitland Promenade II that was built in 2001. Of the competitive set of buildings, the newer buildings built from 1998 onwards were largely 98-100% occupied. We also note that lease expiries in 2018 and 2019 will only account for 1.8% and 13.8% of the building's cash rental income, respectively. ■ Iron Point's (6.0% of 2016 NPI) location across Intel Corporation's Folsom Campus and near the US Highway 50, one of the three main throughways into Sacramento, raises its attractiveness compared to competing buildings. We would, however, note that, of the buildings within the immediate vicinity of Iron Point, the Natoma Station Corporate Center is only 60.6% occupied, which could pose a risk, while the rest of the neighbouring buildings are 97-100% occupied. Meanwhile, since KBS Strategic Opportunity REIT acquired Iron Point in 2011, the property had undergone a complete lobby renovation with brighter lighting fixtures and interiors, and had introduced new tenant amenities such as an outdoor walking track and a fitness centre.

Keppel KBS US REIT (KPEL.SI / KORE SP)

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9 February 2018

A large market to acquire KORE has an investment strategy of principally investing, directly or indirectly, in a diversified portfolio of income-producing commercial assets and real estate-related assets in the key growth markets of the United States. The key strategy is on investments and acquisition growth with several key investment criteria.

Figure 34: KORE’s investment criteria Criteria

Description

Yield requirements

The Manager will seek to optimise total returns by investing in income-producing properties that provide increasing distributions over time, through the ability to increase the building's occupancy, renew existing leases to higher market rents at lease expiration, and from contractual rental increase in the tenant's leases. Tenant mix and occupancy characteristics Seek to acquire properties with high quality and reputable existing tenants, or properties with the potential to generate higher rentals, and Location

Value adding opportunities Building and facilities specification

properties with potential for high tenant retention rates, relative to comparable properties in their respective micro-property markets. "The Manager will also evaluate a range of location-related criteria including, but not necessarily limited to, ease of access, proximity and connectivity to major business, tourist and transportation hubs, visibility of premises from the surrounding catchment markets, and immediate presence and concentration of competitors." Seek to acquire properties with opportunities to increase occupancy rates and enhance value through proactive property management. The potential to add value through selective renovation or other types of asset enhancement initiatives will also be assessed. The Manager will seek to acquire buildings with good quality specifications and that are in compliance with the relevant building and zoning regulations, including energy conservation, health and safety regulations. The Manager will rely on due diligence reports submitted by experts relating to the structural soundness of the building, repairs, maintenance, capital expenditure requirements and encroachment of site boundaries.

Source: Company data

While there is no ROFR available, the US market has been transacting over US$100 bn worth office assets every year since 2013. As such, management acquisition experience/capabilities may arguably be a more important factor as compared to a market such as Singapore where third-party acquisition opportunities are far less prominent.

Figure 35: US office total sales volume

Note: data in US$ bn. Source: Real Capital Analytics

Leveraging off the KBS network and expertise KORE will be able to leverage off its US asset manager, KBS Capital Advisors LLC's (KBS) extensive experience in the US markets. KBS is one of the premier commercial real estate investment managers and the eleventh largest US owner of office properties globally. Since inception in 1992, KBS has had over US$33 bn worth of transactional volume completed and currently manages an AUM of more than US$11.4 bn in 16 funds (seven public REITs and nine private funds) across 30 markets in the US, 41.8 mn sq ft of NLA with a diversified clientele of 3,000 tenants.

Keppel KBS US REIT (KPEL.SI / KORE SP)

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9 February 2018

Headquartered in California, the KBS team of more than 180 experienced specialists across the US is focused on acquiring assets that meet tenant demands and generate sustainable returns for investors.

Figure 36: KBS-managed properties across the US

Source: Company data

KORE will have access to a weekly investment report, which highlights potential deals sourced by KBS, that is circulated to its asset management teams.

Assets could also come from KBS Strategic Opportunity REIT All of KORE's initial portfolio will come from KBS Strategic Opportunity REIT (KBS SOR) where occupancy levels look to have substantially improved and stabilised. Given that KBS SOR's strategy allows it to acquire assets that are more opportunistic, it could acquire more assets, stabilise them and eventually sell them to KORE. However, we do note that there is no ROFR given, hence, KORE will likely have to bid against other funds/investors that are keen to acquire the assets.

Figure 37: Growth in occupancy since KBS SOR acquired assets Occupancy at acquisition

Occupancy as at 30 June 2017

The Plaza Buildings Bellevue Technology Center

81% 62%

84% 89%

Iron Point

38%

96%

Westmoor Center 1800 West Loop

81% 76%

83% 83%

West Loop I & II Powers Ferry Northridge Center I & II

77% 32% 40%

88% 95% 92%

Maitland Promenade II

77%

99%

Note: Westech 360 and Greathills not included as historical occupancy not disclosed by KBS SOR. Source: Company data, KBS SOR Dec2016 valuation and portfolio update (http://getfilings.com/sec-filings/161215/KBS-Strategic-Opportunity-REIT-Inc_8K/kbssor993presentation.htm)

Conflict with other KBS REITs? KBS is structured in two distinct teams, (1) the Core Strategy Team and (2) the Strategic Opportunity Team (SOR Team). Each team is responsible for sourcing acquisitions and subsequent asset management for a subset of KBS-advised programmes with access to the weekly investment report. Keppel KBS US REIT (KPEL.SI / KORE SP)

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■ The SOR Team will be managing KORE on behalf of KBS and will be the only KBSadvised real estate programme with a core strategy that the SOR team manages. The other SOR REITs will generally be investing in value-added and opportunistic properties of all types with higher total return and risk profiles with lower initial yields and a much larger proportion of total return coming from capital appreciation. KORE's strategy is more similar to the programmes under the Core Strategy Team, which have a focus on stabilised, income-producing investments and as such, are expected to compete with KORE. ■ Separate reporting lines—the SOR Team and the Core Strategy Team are different, where the SOR team will report to Peter McMillan III and Keith D. Hall, whereas the Core Strategy Team will report to Peter M. Bren and Charles J. Schreiber Jr. ■ Keith Hall will provide his insights to KORE, if there is a potential conflict. However, Keith Hall will continue to be on the investment committees for each of the Core Strategy REITs, however, if the situation arises that there is a potential conflict of interest (i.e., if KORE and the Core Strategy Team have expressed interest in the same asset), Keith Hall will recuse himself from participating in any discussion on behalf of the Core Strategy Team, so that he can provide his insights on behalf of KORE. ■ Peter McMillan III will also provide his insights to KORE, if there is a potential conflict. He will retain his officer and director positions on each of KBS REIT, KBS REIT II and KBS REIT III, which are Core Strategy REITs. This will be to allow him to access information regarding any potential sale of assets by the REITs, which may be suitable for KORE and will allow him direct access to the broader KBS network to effectively source for real estate opportunities in the US. Similar to Keith Hall, in the event of a conflict of interest, Peter McMillan III will recuse himself from participating in any discussions on behalf of KBS REIT, KBS REIT II and KBS REIT III, so that he can provide his insights on behalf of KORE.

Figure 38: Structure of KBS entities

Source: Company data

Keppel KBS US REIT (KPEL.SI / KORE SP)

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Figure 39: Seven private REITs are currently managed by KBS Name of REIT/Fund

Investment Focus

KBS REIT

Core and core plus real estate and loans secured by real estate. Not currently investing. Currently selling assets and distributing funds back to shareholders.

KBS REIT II

Core and core plus real estate and loans secured by real estate. Not currently investing.

KBS REIT III

Core and core plus real estate with some loans secured by real estate. Not currently investing.

KBS Growth & Income REIT

Core, core plus and value add real estate with some loans secured by real estate.

Value add and opportunistic real estate, investments in joint ventures managing such real estate and loans secured by real estate. Value add and opportunistic real estate, investments in KBS Strategic Opportunity REIT II joint ventures managing such real estate and loans secured by real estate. KBS Legacy Partners Apartment REIT Core and core plus real estate. Not currently investing. KBS SOR

Fund Closed Asset Type Date Direct investment generally in office 31-May-08 properties, while loans could be secured by various asset types. Direct investment generally in office 31-Dec-10 properties, while loans could be secured by various asset types. Direct investment generally in office 29-May-15 properties, while loans could be secured by various asset types. Direct investment generally in office n.a. properties, while loans could be secured by various asset types. 23-Nov-12

All asset types

n.a.

All asset types

31-Mar-14

Apartments

Source: Company data

Keppel Capital also has a deal allocation procedure to avoid conflict KORE's other sponsor, Keppel Capital, does not currently manage any funds with competing or similar mandates as KORE. However, in the event that any Keppel Capital vehicle manages a fund that has an overlapping investment mandate, there already exists a deal allocation procedure. These will include deals sourced by (1) the Keppel Capital Vehicles and (2) Keppel Capital Investments; however, deals sourced by KBS will not be subject to this. The allocation procedure will be conducted based on a suitability assessment that will take into account: Specific investment objectives, sufficient fund, investment hurdle, impact on returns, special interest (e.g., ability to bid at a higher price due to an existing special interest of the trust/fund), prior experience, timing and prior deal allocations (number of recent deals offered to specific trust/fund to ensure equality in offering opportunities). We believe that most of the potential acquisition opportunities will be sourced by KBS, given their experience in the US market, rather than Keppel Capital.

How would acquisitions be funded? Debt headroom of only US$71 mn before hitting 40.0% The REIT's initial debt that will be used to partially fund its portfolio is expected to amount to US$287 mn, denominated in USD, and implying gearing (debt/total assets) of 36.0%, we estimate that this will provide the REIT with a debt headroom of US$71 mn before it hits 40.0% (regulatory limit is 45.0%). KORE's debt is priced at 3.3% (excluding amortisation of upfront fees) with the intention to hedge 75% of its interest rate exposure, this should mitigate volatility to earnings from interest rate fluctuations until 2021, when the first tranche of US$144 mn worth of debt will mature.

Keppel KBS US REIT (KPEL.SI / KORE SP)

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Figure 40: Debt maturity profile (US$ mn)

144

144

2021F

2022F

140 120 100 80 60 40 20 0

0

0

0

0

2017F

2018F

2019F

2020F

Source: Company data

A significant portion of debt headroom will be taken up by leasing costs and capex KORE estimates that it will need to spend US$17.3 mn and US$24.9 mn in 2018 and 2019, respectively, on leasing costs and capital expenditure that will include non-routine maintenance work and preventative measures. We estimate that this would raise gearing from 36% in 2017 to 36.8% in 2019 (assuming no revaluation gains).

Still possible to acquire accretively? Cap rates in the US have been compressing since 2010, along with the decline in the tenyear government bond yield with average CBD and Suburban office cap rates trading at around 5.5-7.0%. We do note that given KORE's focus on total returns, the REIT could look to acquire buildings where existing occupancy rates are relatively low and management believes they can be raised further. As such, the initial yields for potential acquisitions could be below cap rates.

Keppel KBS US REIT (KPEL.SI / KORE SP)

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Figure 41: US cap rates

Source: Federal Reserve, PwC

Figure 42: KORE's markets have broadly seen cap rate compression (%) Seattle Sacramento Denver Austin Houston Atlanta

2010 7.72 n.a. 8.81 n.a. 9.13 7.89

2011 7.00 8.45 7.31 n.a. 8.03 8.02

2012 6.50 n.a. 7.10 7.25 7.25 8.16

2013 6.11 n.a. 7.34 6.46 7.31 8.08

2014 5.64 7.44 7.00 6.61 7.10 7.16

2015 5.85 7.21 7.49 6.52 6.81 6.70

2016 5.87 n.a. 6.98 6.56 7.12 7.05

2017 5.75 n.a. 6.50 6.39 7.69 6.98

Note: data based on transactions. 2017 data includes transactions up until July 2017. Source: Real Capital Analytics

In order to lower gearing, KORE will have to fund future acquisitions largely with equity rather than debt. We estimate that in the scenario that KORE were to fund future acquisitions with 70% equity and 30% debt, assuming a cost of debt of 3%. A potential acquisition with an initial NPI yield 6.5% will only be immediately DPU-accretive if the new units issued to fund the acquisition are issued below 7.5% yield. Further permutations are as follows:

Figure 43: Dilution/Accretion sensitivity assuming 70% equity funding

NPI yield

Equity issue yield 7.0% 7.5%

6.0%

6.5%

8.0%

8.50%

5.5% 6.0%

Dilutive Accretive

Dilutive Accretive

Dilutive Dilutive

Dilutive Dilutive

Dilutive Dilutive

Dilutive Dilutive

6.5% 7.0% 7.5%

Accretive Accretive Accretive

Accretive Accretive Accretive

Accretive Accretive Accretive

Accretive Accretive Accretive

Dilutive Accretive Accretive

Dilutive Dilutive Accretive

Source: Company data, Credit Suisse estimates

If we were to assume that KORE were to fund future acquisitions with 60% equity and 40% debt instead, assuming a cost of borrowing at 3%. A potential acquisition with an initial NPI yield 6.5% could be immediately DPU-accretive if the new units issued to fund the acquisition were also issued below 7.5% yield. Further permutations are as follows: Keppel KBS US REIT (KPEL.SI / KORE SP)

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Figure 44: Dilution/Accretion sensitivity assuming 60% equity funding

NPI yield

5.5% 6.0% 6.5% 7.0% 7.5%

6.0%

6.5%

Accretive Accretive Accretive Accretive Accretive

Dilutive Accretive Accretive Accretive Accretive

Equity issue yield 7.0% 7.5% Dilutive Accretive Accretive Accretive Accretive

Dilutive Dilutive Accretive Accretive Accretive

8.0%

8.50%

Dilutive Dilutive Dilutive Accretive Accretive

Dilutive Dilutive Dilutive Dilutive Accretive

Source: Company data, Credit Suisse estimates

Acquisitions will also help to push out future tax expenses Given the structure of KORE, any funding raised at the KORE level can be used to "top up" the intercompany loan to US Parent REIT, which will effectively lower the near-term tax expense or push the expected cash taxes further out. As such, we believe there is still a relatively comfortable timeframe for KORE to look for a suitable acquisition before a rising tax expense starts to become a consideration during the acquisition process.

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Initiate coverage with OUTPERFORM We are initiating coverage on KORE with an OUTPERFORM rating and a target price of US$0.97 per unit, implying total returns of 17%. Given low expiring rents throughout 2018 and 2019, step ups of 2.5% and occupancy improvements, KORE should provide one of the strongest organic growth profiles within our REIT coverage over the next two years. Meanwhile, the potential to acquire asset from KBS and source for assets directly in a large market provides a good opportunity to grow the portfolio inorganically. ■ Our target price is based on our dividend discount methodology with cost of equity of 8.1% derived based on a market risk premium of 5.0%, a risk-free rate of 3.5% (historical long-term average) and beta of 0.93, slightly below the US Office REIT average of 1.0, given that KORE will mainly be holding stabilised assets with no development pipeline. Our terminal growth assumption is 1.5%.

Figure 45: Beta comparison for REITs 1.4 1.2

US office REIT Average = 1.0

1.0 0.8 0.6 0.4 0.2 0.0 BXP

BDN

OFC

DEI

FCE/A

HPP

KRC

SLG

VNO

US Source: Company data, Credit Suisse estimates

Figure 46: DDM sensitivity to terminal growth and cost of equity Terminal Growth

Cost of equity

7.1% 7.6% 8.1% 8.6% 9.1%

0.5%

1.0%

1.5%

2.0%

2.5%

0.95 0.92 0.90 0.87 0.85

0.99 0.96 0.93 0.90 0.88

1.03 1.00 0.97 0.94 0.91

1.08 1.04 1.01 0.98 0.95

1.13 1.10 1.06 1.03 1.00

Source: Credit Suisse estimates

How does the yield compare? The Singapore office REIT dividend yields currently range between 4.7% and 6.5% for 2018E. It may not be directly comparable, given that the Singapore office REIT's assets are predominantly located in Singapore; however, we believe that valuations in Singapore are predominantly based on dividend yields, which would make it a more relevant benchmark to use for valuation.

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Figure 47: 2018 dividend yield comparison (%) 8.0 6.6

7.0

6.9

6.0 6.0 5.0

4.9

5.0

Keppel REIT

Capitaland Commercial Trust

5.3

4.0

3.0 2.0 1.0 0.0 Suntec REIT

Manulife US

Keppel KBS US

OUE C-REIT

Source: Company data, Credit Suisse estimates

Manulife US REIT is the closest comparison We believe that KORE will be most compared to be Manulife US REIT, given its exposure to the US office market. Manulife US REIT trades at a 2018E yield of 6.7%. Besides the difference in asset portfolios, we note that key characteristics between the two, such as the structure, gearing, payout and proportion of management fees to NPI, are similar. However, we do note that Manulife US REIT pays 100% of its property management fees in units (which gets added back to distributable income), while KORE pays its property management fees in cash. For 1H17, we note that property management fees in units made up 4.5% of the total distributable income for Manulife US REIT.

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Key risks In our view, these are the key risks to Keppel-KBS US REIT (KORE):

Risk of changes in US and Singapore tax laws US federal income tax laws governing US REITs and other corporations and the administrative interpretations of those laws may be amended at any time, potentially with retroactive effect. The recently announced tax changes reforming the United States Internal Revenue Code introduced by the US government and resulting enactment of the US Tax Act impacted certain interest expense deductibility. As a result, KORE took steps to restructure its entities to continue to provide an efficient tax structure for investing in US office. However, moving forward, there are risks that any legislation, new regulations, administrative interpretations or court decisions could result in higher tax expenses for KORE. For Singapore, KORE has obtained the tax rulings from the IRAS in relation to certain Singapore income tax treatment of the income of Singapore Sub 1, each Loan Subsidiary and Keppel-KBS US REIT. The Tax Rulings were made based on the IRAS’ understanding that the steps to be taken in the proposed arrangements by KORE will be in compliance with applicable laws and regulations in the US. The Tax Rulings will remain valid so long as each Loan Subsidiary and its transaction to be undertaken remain as represented to the IRAS and there are no other changes made to each Loan Subsidiary or its activities. The Tax Rulings do not shelter KORE from any future changes in the tax laws that may have a direct impact on the Tax Rulings and where there is a change in the interpretation of any of the tax laws that affects the Tax Rulings, the IRAS may withdraw the Tax Rulings.

Economic risks Given Keppel-KBS US REIT will have pure exposure to the US, an economic downturn in the US, particularly in KORE's six states (Washington, California, Colorado, Texas, Georgia and Florida) may negatively affect the performance of the REIT as several tenants have pre-termination rights that could allow them to end their leases early. This would lead to increased vacancy under the REIT's portfolio. A downturn may impact office space demand, making it difficult to fully renew expiring leases or tenant out any vacant space, which would impact KORE's rental income and property values.

Competition risk KORE's assets compete for tenants against various landlords in its market. Although vacancy rates are expected to improve, there is still potential for other landlords to offer more preferential rates or incentives to try to entice tenants. Additionally, as markets continue/start to improve, developers may view this as an opportunity to provide more supply in the market. These newer buildings could offer better locations, features and working environment that will intensify competition, while also pushing KORE to consider further capex to refresh its assets.

Acquisition risk KORE's portfolio currently comprises assets in the US and management's investment mandate is to acquire offices in income-producing office real estate in key US markets. Given that gearing is expected to be 36%, a large acquisition could result in a need for equity raising, which could cause DPU dilution. The added benefit for KORE in acquiring is that it could also help to mitigate taxes by replenishing its intercompany loan as the principal is gradually paid down to offset the cash trap from depreciation. However, if KORE is unable to acquire assets and replenish its intercompany loan, this will likely lead to increasing withholding tax expenses. Keppel KBS US REIT (KPEL.SI / KORE SP)

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Risks from non-compete clauses and existing restrictions Certain leases contain non-compete clauses that prevent KORE from signing new tenants, which are in competition with existing tenants without the tenant's consent. This may hamper KORE's occupancies in the future. The manager, however, is not aware of this having resulted in material adverse impact to the operations in the past. Similarly, specifically for Bellevue Technology Center, the asset is governed by a Declaration of Restrictive Covenants, Conditions, Restrictions, Reservations and Easements for Unigard Park (CC&Rs). One of the restrictions is no other insurance company other than Unigard Insurance, an existing tenant at BTC, may use the asset, which limits insurance companies from BTC's potential pool of tenants.

Risks from natural disasters Certain risks, such as floods and losses caused by the outbreak of contagious diseases, contamination or other environmental impairment, may be uninsurable or the cost of insurance may be prohibitive when compared to the risk. Currently, KORE’s property and casualty insurance policies do not cover acts of war, intentional or dishonest acts, nuclear reaction or radio-active contamination, asbestos contamination or other long-term environmental impairments. Further, should an uninsured loss or a loss in excess of insured limits occur, KORE could be required to pay compensation and/or lose capital invested and future revenue from that property, and any financial obligations secured by the property may be accelerated. Additionally, natural disasters may cause significant disruption to the business and operations of the assets.

Risks from non-compliance to local zoning regulations Based on zoning reports received for KORE's properties, some do not comply with relevant local zoning regulations, which include building set-back lines, building height limitations, floor area ratio, and parking stall formula. The zoning reports recommended no remedial action be taken to rectify this at this point.

(1) Northridge Center I & II The asset is non-conforming as to parking setbacks with c.35 parking lots constructed too close to the property boundary. The city of Sandy Springs has confirmed it currently has no plans to enforce the setback requirements.

(2) Power Ferry, West Loop I & II, The Plaza Buildings The following assets were built in compliance with then-applicable zoning requirements but do not comply with the current relevant zoning regulations. If the properties sustain a casualty, the assets may need to be reconstructed in accordance with the zoning rules.

Limitations on ownership of units in KORE To ensure that the Parent US REIT and Sub-US REITs maintain their status as US REITs, KORE unitholders are subject to an ownership limit prohibiting them from directly or indirectly owning in excess of 9.8% of the total outstanding units. To comply with this requirement, however, units acquired or held in excess of the 9.8% ownership limit will be subject to Automatic Forfeiture which terminates the unitholder’s rights to distributions and to vote. The trustee has the right and power to dispose of such units.

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Risk of significant periodic capex KORE’s properties and future properties to be acquired may require periodic capital expenditures beyond the Manager’s estimates at the time of acquisition for refurbishment or development of the properties. There is a risk that KORE may be unable to fund such required capex solely from cash provided from its operating activities. If this is funded by debt, this will further increase KORE’s gearing, which may impact KORE’s debt headroom, and flexibility to acquire assets. Conversely, if KORE is not able to fund such capex needs, the attractiveness, marketability and operating efficiency of its assets may be adversely affected.

Foreign exchange risk While KORE will be traded in the US, and distributions received by unitholders can also be USD denominated, there will be some elements of foreign exchange risk. Revenue received from KORE’s properties is in USD. A portion of this will have to be converted into SGD to settle expenses at Keppel-KBS US REIT’s level and for the distribution payments from KORE to unitholders, except for those who elect to receive distributions in USD. Accordingly, Keppel-KBS US REIT is exposed to risks associated with exchange rate fluctuations, which may adversely affect Keppel-KBS US REIT’s results of operations. The value of US dollars against foreign currencies fluctuates and is affected by changes in the US and international political and economic conditions, and by many other factors. Thus, any unitholders whose base currency is not USD will be exposed to fluctuations in the USD relative to their base currency from KORE’s distributions and the capital value.

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Management profiles Mr David Snyder, CEO and CIO Prior to his employment with the Manager, Mr Snyder was a consultant to KBS where he oversaw the overall management and assisted in formulating the operational strategy and tactics for the portfolio. From 2008 to 2015, Mr Snyder was CFO at KBS where he managed and advised five non-traded REITs. In addition, he oversaw, directed and participated in all aspects of investor relations, finance, financial reporting, accounting and financial planning, including the negotiation and management of a portfolio transfer of 800 properties with a value of over US$1 bn. Mr Snyder started as a senior accountant with Arthur Andersen LLP in 1993. Prior to that, Mr Snyder joined Regency Health Services as its director of financial reporting. From 1998 to 2008, Mr Snyder was with Nationwide Health Properties, working as a financial controller before becoming vice president & financial controller in 2005. Mr Andy Gwee, CFO Mr Gwee was previously head of finance of Keppel DC REIT Management Pte. Ltd. Mr Gwee has over 16 years of experience in the accounting, finance and auditing industry. Prior to joining Keppel DC REIT Management Pte. Ltd., Mr Gwee was the senior finance manager of Keppel Corporation Limited from 2012 to 2015, where he assisted the CFO and group controller. In addition to these functions, he provided accounting and technical advisory to various business units of the Keppel Group. From 2000 to 2012, Mr Gwee spent 12 years at PricewaterhouseCoopers LLP Singapore in an audit function, where he had been the engagement manager for leading clients and local listed groups. Mr Gwee graduated with a Bachelor of Accountancy from Nanyang Technological University of Singapore in 2000. He is a Chartered Accountant (Singapore) and is a member of the Institute of Singapore Chartered Accountants. Ms Grace Chia, Head of Investor Relations Ms Chia has over 16 years of experience in corporate communications and investor relations. She started her career with Keppel Corporation Limited, and has held various positions within the Keppel Group over the last 16 years. Prior to joining the Manager, she was the head, investor relations & communications, of Keppel Capital International Pte. Ltd (KCI). From 2014 to 2016, she was the senior manager, investor relations, at Keppel REIT Management Limited. Prior to this, Ms Chia was with the Group Corporate Communications division at Keppel Corporation Limited from 1999 to 2013, where her last held position was senior manager. Ms Chia graduated with a Bachelor of Commerce Degree from the University of Western Australia. Mr Chris Cheo, Finance Manager Prior to his appointment to the Manager, Mr Cheo was the finance manager of KCI, where he was responsible for the financial and reporting functions. These included group consolidation, management reporting, statutory and financial reporting, annual budgeting and certain compliance matters. Mr Cheo started as an auditor at Deloitte & Touche LLP in 2008. From 2010 to 2014, he joined DBS Bank Ltd. as an associate in the finance function of the stockbroking arm. From 2014 to 2017, Mr Cheo was the senior manager of Leeden National Oxygen Ltd., where he oversaw the group consolidation and financial reporting function, established finance policies and conducted training for finance staff.

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Mr Cheo graduated with a Bachelor of Accountancy from Nanyang Technological University of Singapore in 2008. He is a Chartered Accountant (Singapore) and is a member of the Institute of Singapore Chartered Accountants. Tai Wai Kit, Senior Investment Analyst Mr Tai will provide the CEO/CIO of Keppel-KBS US REIT with analytical, underwriting and investment thesis support within the Manager. Prior to joining the Manager, Mr Tai was a senior analyst in KCI, where he was responsible for sourcing and executing M&A opportunities. Prior to this, Mr Tai was an analyst in Alpha Investment Partners Limited from 2013 to 2016, where he was involved in various aspects of acquisition, asset management and portfolio management activities for the US and European real estate and data centre markets. Both stints have provided Mr Tai with significant exposure in real estate investment management and the capability to manage extensive portfolios. Mr Tai graduated with a Bachelor of Science (Real Estate) (Honours) with Specialisation in Real Estate Finance from the National University of Singapore. He is also a recipient of the Keppel Group Scholarship.

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Appendix – Overview of assets Summary of the Plaza Buildings The Plaza Buildings are located in the Bellevue CBD submarket, consisting of two Class A, multi-tenanted office buildings and a freestanding garage situated on a 175,399 sq ft site. The Plaza Center building totals 16 stories and was completed in 1983. The US Bank Plaza building is ten stories and was built in 1978, and the parking garage has 1,254 spaces.

Figure 48: Plaza Buildings—summary of asset details Address

10800 and 10900 NE 8th Street, Bellevue, King County, Washington

Land Tenure Completion Date Refurbishment Occupancy as of 30 June 2017 Parking Stalls Number of Floors NLA (sq ft) Land Area (sq ft) Gross Revenue Income for FY2016 (US$) Net Property Income for FY2016 (US$) Annualised Average Rent per sq ft (US$) for June 2017 Valuation by Cushman (US$ mn)* Valuation by JLL (US$ mn)* Number of Tenants as of 30 June 2017

Freehold 1978-1983 2014 to 2015 84.1% 1,254 Plaza Center: 16, US Bank Plaza: 10 490,994 175,399 17,394,000 12,387,000 38.74 243.9 236.1 66

WALE by NLA as at 30 June 2017 (years) WALE by Cash Rental Income for June 2017 (years)

3.0 3.1

* Both valuations take into account value of air lots above average which may be developed as unutilised plot ratio. Source: Company data

Figure 49: Lease expiry profile for Plaza Buildings 25%

23.1%

22.8% 22.5%

23.8%

19.0% 18.7%

20%

16.5%

17.5%

15% 11.1% 10%

9.9%

7.5% 7.6%

5%

0% 2017

2018

2019 NLA

2020 Cash rental income

Source: Company data

Keppel KBS US REIT (KPEL.SI / KORE SP)

Figure 50: Top ten tenants at Plaza Buildings

2021

≥2022

Tenant US Bank National Association Blucora, Inc. Visa USA, Inc. Nintex USA LLC Pointmarc Consulting LLC Futurewei Technologies, Inc Union Bank N.A HNN Associates LLC Construx Software Premier Office Centers, LLC Top 10 Tenants Other Tenants Total

Trade Sector Finance and Insurance Technology Finance and Insurance Technology Professional Services Professional Services Finance and Insurance Professional Services Technology Others

% of Cash Rental Income 10.6% 9.4% 7.1% 6.6% 6.0% 5.1% 3.5% 3.5% 3.4% 3.4% 58.6% 41.4% 100.0%

Source: Company data

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Figure 51: Plaza Building's trade sectors by NLA

Figure 52: Plaza Building historical occupancy 100%

Media and information 2%

90%

85.0%

89.2%

85.4%

84.1%

FY16

2Q17

77.4%

80%

Others 8%

82.8%

70%

Finance and insurance 37%

Professional services 28%

60%

50% 40% 30% 20%

Technology 26%

10% 0% FY14

Source: Company data

FY15

2Q16

3Q17*

* 3Q17 data based on committed occupancy. Note: No data provided for 2Q15. Source: Company data

Summary of Bellevue Technology Center Bellevue Technology Center (BTC) is located in the Eastside Suburban submarket of Seattle, close to the Bellevue CBD. The building comprises five Class B office buildings completed in 1973–80, and four Class A buildings and a parking garage, which were completed in 2000. The Class B buildings were renovated over 2001–03 and are considered by Cushman to be in average condition. KBS has owned the property since 2012. KBS subsequently rebranded the centre as Bellevue Technology Center and changed all the signage to reflect the new name. Two of the multi-tenant buildings received a lobby and corridor refresh. KBS also added an asphalt surface parking lot in front of with 25 parking stalls.

Figure 53: Bellevue Technology Center (BTC)—summary of asset details Address Land Tenure Completion Date Refurbishment Occupancy as of 30 June 2017 Parking Stalls

15805 NE 24th Street, Bellevue, King County, WA Freehold 1973, 1980 and 2000 in phases 2013 to 2014 88.9% 1,320

Number of Floors

One or three-storey buildings

NLA (sq ft) Land Area (sq ft) Gross Revenue Income for FY2016 (US$)

330,508 2,029,754 10,128,000

Net Property Income for FY2016 (US$) Annualised Average Rent per sq ft (US$) for June 2017 Valuation by Cushman (US$ mn)*

6,607,000 30.51 [133.0

Valuation by JLL (US$ mn)* Number of Tenants as of 30 June 2017 WALE by NLA as at 30 June 2017 (years)

129.3 15 4.1

WALE by Cash Rental Income for June 2017 (years)

4.2

* Both valuations take into account value of vacant lot which may be developed as unutilised plot ratio. Source: Company data

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Figure 54: Lease expiry profile for BTC

Figure 55: Top ten tenants at BTC

50% 44.5%

45%

46.3%

40% 35%

31.6% 31.8%

30% 25% 20%

17.3% 14.9%

15% 10%

5% 0%

3.7% 3.7%

3.0%

3.3%

0.0% 0.0% 2017

2018

2019 NLA

2020

2021

≥2022

Tenant Unigard Insurance Company (QBE Insurance Group) Regus PLC Hitachi Data Systems Corporation Trane U.S. Inc. MOD Super Fast Pizza Hitachi Consulting Corporation Advanced Micro Devices, Inc harman Connected Services SUHRCO Management, Inc. Grant Thornton LLP Top 10 Tenants Other Tenants Total

Trade Sector Finance and Insurance Professional Services Technology Professional Services Others Technology Technology Technology Professional Services Media and Information

Cash rental income

Source: Company data

Source: Company data

Figure 56: BTC's trade sectors by NLA

Figure 57: BTC’s historical occupancy 96.8%

100% 90% Media and Information 3%

Others 11%

% of Cash Rental Income 23.8% 16.6% 11.6% 9.4% 8.2% 5.9% 5.5% 3.7% 3.6% 3.4% 91.7% 8.3% 100.0%

96.8%

98.2% 88.9%

90.6%

2Q17

3Q17*

82.5%

80% Finance and insurance 25%

70%

60% 50% Professional services 32%

40% Technology 29%

30% 20% 10% 0% FY14

Source: Company data

FY15

2Q16

FY16

* 3Q17 data based on committed occupancy. Note: No data provided for 2Q15. Source: Company data

Summary of Iron Point Iron Point features five Class A office buildings. Four of the buildings were built in 1999, while the fifth was added in 2001. Iron Point is centrally located within Folsom, Sacramento, and is visible from US Highway 50. KBS has owned the Property since 2011. The 1180 building underwent a complete lobby renovation in 2013 and the other buildings received new furniture and improvements between 2014 and 2016.

Keppel KBS US REIT (KPEL.SI / KORE SP)

37

9 February 2018

Figure 58: Iron Point—summary of asset details Address Land Tenure Completion Date Refurbishment Occupancy as of 30 June 2017 Parking Stalls Number of Floors NLA (sq ft) Land Area (sq ft) Gross Revenue Income for FY2016 (US$) Net Property Income for FY2016 (US$)

1110-1180 Iron Point Rd., Folsom, Sacramento County, California Freehold 1999 2013 95.7% 1,351 One to three-storey buildings 211,887 685,350 4,417,000 2,778,000

Annualised Average Rent per sq ft (US$) for June 2017 Valuation by Cushman (US$ mn) Valuation by JLL (US$ mn) Number of Tenants as of 30 June 2017

23.36 35.2 38.2 31

WALE by NLA as at 30 June 2017 (years)

2.5

WALE by Cash Rental Income for June 2017 (years)

2.5

Source: Company data

Figure 59: Lease expiry profile for Iron Point 35%

Figure 60: Top ten tenants at Iron Point

33.1% 32.8%

30% 25%

22.1% 22.3% 18.8% 18.1%

20% 15.4% 15.7%

15% 10% 5%

5.7% 6.0%

4.8% 5.2%

0% 2017

2018

2019 NLA

2020 Cash rental income

Source: Company data

Keppel KBS US REIT (KPEL.SI / KORE SP)

2021

≥2022

Tenant Sierra Pacific Mortgage Co Inc CorVel Healthcare Corporation Pro Unlimited, Inc. Wells Fargo Bank, N.A. Aerojet FPI Management, Inc. First American Title Ingram Entertainment, Inc. Coldwell Banker Residential Barrett Business Services, Inc Top 10 Tenants Other Tenants Total

Trade Sector Professional Services Medical and Healthcare Professional Services Finance and Insurance Technology Professional Services Professional Services Media and Information Professional Services Professional Services

% of Cash Rental Income 18.3% 12.1% 12.0% 7.9% 7.5% 4.9% 4.4% 4.3% 2.6% 2.3% 76.3% 23.7% 100.0%

Source: Company data

38

9 February 2018

Figure 61: Iron Point's trade sectors by NLA Media and Information Others 2% 4% Medical and Healthcare 12%

Figure 62: Iron Point's historical occupancy 99.5%

100% 97.0%

97.0%

2Q16

FY16

95.7%

95% 91.8%

Finance and insurance 33%

90% 85.9% 85%

Professional Services 41%

Technology 8%

80%

75% FY14 Source: Company data

FY15

2Q17

3Q17*

* 3Q17 data based on committed occupancy. Note: No data provided for 2Q15. Source: Company data

Summary of Westmoor Center Westmoor Center comprises six 2- to 3-story, Class A, multi-tenanted office buildings with a total NLA of 607,755 sq ft on a total of 1.9 mn sq ft of land area. The asset is part of Westmoor Technology Park, which is a developing 425 acre office/high-tech campus with several major tenants. Within the park is an 18-hole golf course and associated clubhouse amenities. Asset improvements such as a new access card system, upgraded lobby and common areas were recently undertaken between 2014 and 2016. Westmoor Center benefits from its proximity to downtown Denver and Boulder, which allows employers to attract talents with a lower occupancy cost than both of these locations.

Figure 63: Westmoor Center—summary of asset details Address Land Tenure Completion Date Refurbishment Occupancy as of 30 June 2017 Parking Stalls Number of Floors

10055-10385 Westmoor Drive, Westminster, CO Freehold 1998 - 1999 2014 - 2016 82.6% 2,800 2 to 3 stories buildings

NLA (sq ft) Land Area (sq ft) Gross Revenue Income for FY2016 (US$)

607,755 1,904,706 11,025,000

Net Property Income for FY2016 (US$) Annualised Average Rent per sq ft (US$) for June 2017 Valuation by Cushman (US$ mn)

5,100,000 23.88 121.4

Valuation by JLL (US$ mn) Number of Tenants as of 30 June 2017 WALE by NLA as at 30 June 2017 (years)

118.2 21 4.7

WALE by Cash Rental Income for June 2017 (years)

4.6

Source: Company data

Keppel KBS US REIT (KPEL.SI / KORE SP)

39

9 February 2018

Figure 64: Lease expiry profile for Westmoor Center 35% 30%

27.0% 24.7%

25%

17.1%17.9%

20%

14.6%

15%

13.0%

10%

5%

Figure 65: Top ten tenants at Westmoor Center % of Cash Rental Income 20.0% 15.5% 14.7% 14.6% 13.6% 6.6% 2.9% 2.7% 2.6% 2.5% 95.7% 4.3% 100.0%

38.0% 37.4%

40%

3.7% 3.3%

1.8% 1.5%

0%

2017

2018

2019 NLA

2020

2021

≥2022

Cash rental income

Tenant Zimmer Biomet Spine, Inc. ServiceLink Field Services LLC Ball Aerospace & Tech Corp Reed Group, LTD Oracle America, Inc. HID Global Corporation Convergys Corporation General Services Administration Cabela's Incorporated Health Inventures LLC Top 10 Tenants Other Tenants Total

Trade Sector Technology Finance and Insurance Professional Services Finance and Insurance Professional Services Professional Services Professional Services Professional Services Technology Professional Services

Source: Company data

Source: Company data

Figure 66: Westmoor Center's trade sectors by NLA

Figure 67: Westmoor Center's historical occupancy

Medical and Healthcare, 1%

Others, 2% Media and Information, 1%

100% 90% 80%

77.8%

82.6%

82.6%

FY16

2Q17

3Q17*

66.8%

70% Finance and Insurance, 29%

82.6% 76.7%

60% 50%

Professional Services, 43%

40% Technology, 25%

30% 20% 10% 0% FY14

Source: Company data

FY15

2Q16

* 3Q17 data based on committed occupancy. Note: No data provided for 2Q15. Source: Company data

Summary of Great Hills Plaza Great Hills Plaza is a Class B multi-tenanted office building that has 139,252 sq ft of net rentable area. The asset sits on a 365,272 sq ft tract of land. The building has three stories and was completed in 1985. Cushman considers the asset to be in a good condition. The property is served by surface parking.

Keppel KBS US REIT (KPEL.SI / KORE SP)

40

9 February 2018

Figure 68: Great Hills Plaza—summary of asset details Address Land Tenure Completion Date Refurbishment Occupancy as of 30 June 2017 Parking Stalls Number of Floors NLA (sq ft) Land Area (sq ft) Gross Revenue Income for FY2016 (US$) Net Property Income for FY2016 (US$) Annualised Average Rent per sq ft (US$) for June 2017

9600 Great Hills Trail, Austin, Texas Freehold 1985 2014 89.1% 471 3 stories 139,252 365,272 3,462,000 1,755,000 31.09

Valuation by Cushman (US$ mn) Valuation by JLL (US$ mn) Number of Tenants as of 30 June 2017 WALE by NLA as at 30 June 2017 (years)

33.0 33.3 15 4.4

WALE by Cash Rental Income for June 2017 (years)

4.5

Source: Company data

Figure 69: Lease expiry profile for Great Hills Plaza

Figure 70: Top ten tenants at Great Hills Plaza

60% 48.4% 48.3%

50% 40% 30.6% 30.4%

30%

20% 11.7%11.3%

7.1% 7.8%

10% 2.2% 2.3%

0.0%

0% 2017

2018

2019 NLA

2020 Cash rental income

Source: Company data

Keppel KBS US REIT (KPEL.SI / KORE SP)

0.0%

2021

≥2022

Tenant RGN-AUSTIN VI, LLC E2Open, LLC Cintra US LLC RTI SURGICAL, INC. GUARANTY INSURANCE SERVICES Ferrovial Agroman US Corp GSI Environmental, Inc. Buchanan DiMasi Dancy & Grabou ONEAFFINITI LLC Patten Law Firm, P.C. Top 10 Tenants Other Tenants Total

Trade Sector Professional Services Media and Information Technology Medical and Healthcare Finance and Insurance Professional Services Professional Services Professional Services Professional Services Professional Services

% of Cash Rental Income 18.6% 16.7% 16.7% 8.1% 7.2% 6.7% 5.7% 5.2% 3.3% 3.1% 91.3% 8.7% 100.0%

Source: Company data

41

9 February 2018

Figure 71: Great Hills Plaza's trade sectors by NLA

Figure 72: Great Hills Plaza's historical occupancy 100%

Others, 1%

Finance and Insurance, 8%

88.0%

90%

86.0%

87.4%

89.1%

2Q16

FY16

2Q17

91.9%

81.1% 80% 70%

Media and Information, 19%

Technology, 18%

60% 50%

Medical and Healthcare, 6%

40% 30%

Professional Services, 48%

20% 10% 0% FY14

Source: Company data

FY15

3Q17*

* 3Q17 data based on committed occupancy. Note: No data provided for 2Q15. Source: Company data

Summary of Westech 360 Westech 360 contains four Class B multi-tenanted office buildings with 173,058 sq ft of net rentable area. The buildings are situated on a 441,655 sq ft of land. Each of the buildings has three stories and has similar in size and design. The asset's improvements were completed in 1986 and are in good condition, according to Cushman. The project has two free-standing parking garages.

Figure 73: Westech 360—summary of asset details Address Land Tenure Completion Date Refurbishment Occupancy as of 30 June 2017 Parking Stalls Number of Floors

8911 N. Capital of TX Hwy., Austin, Texas Freehold 1986 2014 94.3% 628 3 stories (4 buildings)

NLA (sq ft) Land Area (sq ft)

173,058 441,655

Gross Revenue Income for FY2016 (US$) Net Property Income for FY2016 (US$) Annualised Average Rent per sq ft (US$) for June 2017

5,272,000 2,916,000 33.52

Valuation by Cushman (US$ mn) Valuation by JLL (US$ mn) Number of Tenants as of 30 June 2017

39.8 43.8 31

WALE by NLA as at 30 June 2017 (years) WALE by Cash Rental Income for June 2017 (years)

2.9 2.9

Source: Company data

Keppel KBS US REIT (KPEL.SI / KORE SP)

42

9 February 2018

Figure 74: Lease expiry profile for Westech 360 28.4% 28.7%

30% 25% 19.2%

20%

18.3%

15%

11.1% 11.4% 8.3% 8.4%

10% 5% 0%

Figure 75: Top ten tenants at Westech 360

33.0% 33.2%

35%

0.0% 0.0% 2017

2018

2019 NLA

2020

2021

≥2022

Cash rental income

Tenant Maxpoint Interactive Inc D&S Residential Holdings, Inc. Flahive, Ogden, & Latson, PC Roku, Inc. Lockwood Andrews & Newnam Inc Kevin W. Lange Abel Law Group, LLP Tetra Tech, Inc. Carollo Engineers, P.C. Burns & McDonnell Engineering Top 10 Tenants Other Tenants Total

Trade Sector Media and Information Finance and Insurance Professional Services Technology Others Finance and Insurance Professional Services Professional Services Others Others

% of Cash Rental Income 13.2% 9.7% 7.9% 7.4% 5.9% 5.2% 4.9% 4.3% 4.1% 4.1% 66.7% 33.3% 100.0%

Source: Company data

Source: Company data

Figure 76: Westech 360's trade sectors by NLA

Figure 77: Westech 360's historical occupancy 100% 90% 80%

Others, 18%

97.6%

97.7%

2Q16

FY16

94.3%

94.3%

2Q17

3Q17*

82.9% 78.1%

70% Finance and Insurance, 30%

Media and Information, 13%

60% 50%

Technology, 7%

Professional Services, 32%

40% 30% 20% 10% 0% FY14

Source: Company data

FY15

* 3Q17 data based on committed occupancy. Note: No data provided for 2Q15. Source: Company data

Summary of West Loop I & II West Loop I & II is located c.6 miles west of Houston's CBD. The asset consists of a 7- & 8-story Class A, multi-tenant, office property that contains 313,873 sq ft of rentable area plus a parking garage. The improvements were completed in 1980 and 1981, which Cushman believes to be in a good condition.

Keppel KBS US REIT (KPEL.SI / KORE SP)

43

9 February 2018

Figure 78: West Loop I & II—summary of asset details Address Land Tenure Completion Date Refurbishment Occupancy as of 30 June 2017 Parking Stalls Number of Floors NLA (sq ft) Land Area (sq ft) Gross Revenue Income for FY2016 (US$) Net Property Income for FY2016 (US$)

6565 and 6575 West Loop South, Bellaire, Harris County, Texas Freehold 1980 -1981 2013 - 2014 88.3% 1,044 West Loop I: 8 floors, West Loop II: 7 floors 313,873 243,486 6,891,000 3,588,000

Annualised Average Rent per sq ft (US$) for June 2017 Valuation by Cushman (US$ mn) Valuation by JLL (US$ mn) Number of Tenants as of 30 June 2017

26.31 41.9 50.7 54

WALE by NLA as at 30 June 2017 (years)

4.6

WALE by Cash Rental Income for June 2017 (years)

4.5

Source: Company data

Figure 79: Lease expiry profile for West Loop I & II 50%

45.5% 46.1%

45% 40% 35%

30% 25% 20%

16.0% 16.1%

16.1% 15.0%

15%

10.9% 10.8%

10%

6.3% 6.7%

5.2%

5.3%

5% 0% 2017

2018

2019 NLA

2020 Cash rental income

Source: Company data

Keppel KBS US REIT (KPEL.SI / KORE SP)

2021

≥2022

Figure 80: Top ten tenants at West Loop I & II Tenant synergy Healthcare the Rand Group LLC mitratech Holdings, Inc. sightline Health, LLC bbc Usa Chartering, LLC orthoaccel Technologies, Inc bellaire Dermatology eye Centers Of Texas, LLP regus Executive Suites h J Gruy & Associates Top 10 Tenants Other Tenants Total

Trade Sector Medical and Healthcare Technology Technology Medical and Healthcare Professional Services Medical and Healthcare Medical and Healthcare Medical and Healthcare Professional Services Professional Services

% of Cash Rental Income 11.2% 7.8% 7.3% 6.9% 6.2% 5.9% 5.7% 5.2% 4.3% 2.2% 62.7% 37.3% 100.0%

Source: Company data

44

9 February 2018

Figure 81: West Loop I & II's trade sectors by NLA

Figure 82: West Loop I & II's historical occupancy 100%

Media and Others, 4% Information, 2%

Finance and Insurance, 6%

90% 80%

86.9%

87.8%

88.3%

2Q16

FY16

2Q17

90.5%

79.7% 72.9%

70% Technology, 17%

60% 50%

Medical and Healthcare, 46%

40%

Professional Services, 25%

30% 20% 10% 0% FY14

Source: Company data

FY15

3Q17*

* 3Q17 data based on committed occupancy. Note: No data provided for 2Q15. Source: Company data

Summary of 1800 West Loop South 1800 West Loop South is located c.5 miles west of the Houston CBD. The property is a 21-story Class A, multi-tenanted office property with 400,101 sq ft of rentable area with a parking garage, which sits on 1.88 acres. Improvements were completed in 1982 and Cushman views this to be still in good condition.

Figure 83: 1800 West Loop South—summary of asset details Address Land Tenure Completion Date Refurbishment Occupancy as of 30 June 2017 Parking Stalls Number of Floors

1800 West Loop South, Houston, Harris County, Texas Freehold 1982 2013 - 2014 83.2% 1,024 21

NLA (sq ft) Land Area (sq ft)

398,490 82,095

Gross Revenue Income for FY2016 (US$) Net Property Income for FY2016 (US$) Annualised Average Rent per sq ft (US$) for June 2017

10,673,000 5,476,000 29.57

Valuation by Cushman (US$ mn) Valuation by JLL (US$ mn) Number of Tenants as of 30 June 2017

75.1 82.0 54

WALE by NLA as at 30 June 2017 (years) WALE by Cash Rental Income for June 2017 (years)

2.8 2.8

Source: Company data

Keppel KBS US REIT (KPEL.SI / KORE SP)

45

9 February 2018

Figure 84: Lease expiry profile for 1800 West Loop South 30%

26.7% 27.3%

25.5% 25.8%

25% 20.1% 20% 15.2%

16.2%

17.9%

15% 10%

8.2% 8.2% 4.3% 4.7%

5% 0% 2017

2018

2019 NLA

2020

2021

≥2022

Cash rental income

Figure 85: Top ten tenants at 1800 West Loop South Tenant Health Care Service Corp The Company Quanex Building Products Project Consulting Services Knowledge Reservoir General Service Administration Institute Of International Caldwell Boudreaux Lefler Pllc Exp Energy Services Inc Third Coast Bank Ssb Top 10 Tenants Other Tenants Total

% of Cash Rental Income 14.7% 12.3% 5.9% 4.9% 4.8% 4.1% 3.0% 3.0% 2.8% 2.6% 58.1% 41.9% 100.0%

Trade Sector Finance and Insurance Media and Information Professional Services Professional Services Professional Services Professional Services Professional Services Professional Services Others Finance and Insurance

Source: Company data

Source: Company data

Figure 86: 1800 West Loop South's trade sectors by NLA

Figure 87: 1800 West Loop South's historical occupancy 100% 90% 80%

Others, 22%

86.9%

85.9%

FY15

2Q16

FY16

79.6%

83.2%

85.8%

70%

Finance and Insurance, 23%

60% Technology, 2%

Media and Information, 14%

87.3%

50% 40%

Professional Services, 39%

30% 20% 10% 0% FY14

Source: Company data

2Q17

3Q17*

* 3Q17 data based on committed occupancy. Note: No data provided for 2Q15. Source: Company data

Summary of Power Ferry Powers Ferry Landing East is located south of I-285, but outside of the core development of the Cumberland/I-75 submarket. The asset is a six-story, Class B, multi-tenant office building with 146,352 sq ft of NLA situated on a 420,946 sq ft site. KBS has owned the Property since 2012 and has renovated the common areas to attract new tenancy. Works included a lobby renovation, refresh of the café and upgrade of lobby restrooms. Each storey received a common area restroom upgrade. The fitness centre in the basement was also upgraded and a conference room with restrooms was added in previously underutilised storage space.

Keppel KBS US REIT (KPEL.SI / KORE SP)

46

9 February 2018

Figure 88: Power Ferry—summary of asset details Address Land Tenure Completion Date Refurbishment Occupancy as of 30 June 2017 Parking Stalls Number of Floors NLA (sq ft) Land Area (sq ft) Gross Revenue Income for FY2016 (US$) Net Property Income for FY2016 (US$)

6190 Powers Ferry Road, Atlanta, Fulton County, Georgia Freehold 1985 2013 94.8% 569 6 146,352 420,946 2,401,000 1,229,000

Annualised Average Rent per sq ft (US$) for June 2017 Valuation by Cushman (US$ mn) Valuation by JLL (US$ mn) Number of Tenants as of 30 June 2017

18.68 19.2 18.3 22

WALE by NLA as at 30 June 2017 (years)

3.8

WALE by Cash Rental Income for June 2017 (years)

3.7

Source: Company data

Figure 89: Lease expiry profile for Power Ferry

Figure 90: Top ten tenants at Power Ferry

35% 29.8% 30.4%

30%

24.1% 23.5%

25% 20% 15%

17.4% 17.8% 11.5% 11.6%

10%

9.7% 9.0%

7.5% 7.6%

5% 0% 2017

2018

2019 NLA

2020 Cash rental income

Source: Company data

Keppel KBS US REIT (KPEL.SI / KORE SP)

2021

≥2022

Tenant LL Global Inc Georgia Banking Company Penton Business Media Inc Mortgage Guaranty Ins Corp N3 LLC Stern and Edlin Family Law PC ELCO Administrative Svces Southern Polymer Inc Columbia Hospitality Mgmt LLC White Horse Advisors LLC Top 10 Tenants Other Tenants Total

Trade Sector Finance and Insurance Finance and Insurance Media and Information Professional Services Media and Information Professional Services Media and Information Others Professional Services Media and Information

% of Cash Rental Income 18.2% 12.8% 8.8% 6.9% 5.7% 5.3% 5.0% 5.0% 4.8% 4.2% 76.7% 23.3% 100.0%

Source: Company data

47

9 February 2018

Figure 91: Power Ferry's trade sectors by NLA

Figure 92: Power Ferry's historical occupancy 100%

95%

Others, 10%

94.8%

94.8%

94.8%

94.8%

94.8%

FY15

2Q16

FY16

2Q17

3Q17*

90%

Media and Information, 26%

Finance and Insurance, 36%

85%

Professional Services, 28%

84.6%

80%

75% FY14

Source: Company data

* 3Q17 data based on committed occupancy. Note: No data provided for 2Q15. Source: Company data

Summary of Northridge Center I & II Northridge Center I & II is situated in the Central Perimeter of Atlanta. The submarket is one of the largest in Atlanta and has continued to be a prestigious location for corporations due to its proximity to housing, medical facilities and interstate access. Northridge Center is a 4- & 6-storey, Class B, multi-tenant office park with 186,580 sq ft of NLA situated on a 498,675 sq ft site. The improvements were completed in 1985 & 1989, which Cushman considers to be in an average condition. The buildings present well for the submarket and have had recent renovations.

Figure 93: Northridge Center I & II—summary of asset details Address Land Tenure Completion Date Refurbishment

365 and 375 Northridge Road, Atlanta, Fulton County, Georgia Freehold 1985 and 1989 2011

Occupancy as of 30 June 2017 Parking Stalls Number of Floors

91.5% 724 Building 1: 4 Stories, Building 2: 6 Stories

NLA (sq ft) Land Area (sq ft) Gross Revenue Income for FY2016 (US$)

186,580 498,675 3,098,000

Net Property Income for FY2016 (US$) Annualised Average Rent per sq ft (US$) for June 2017 Valuation by Cushman (US$ mn)

1,390,000 18.74 20.2

Valuation by JLL (US$ mn) Number of Tenants as of 30 June 2017

20.5 27

WALE by NLA as at 30 June 2017 (years) WALE by Cash Rental Income for June 2017 (years)

2.6 2.5

Source: Company data

Keppel KBS US REIT (KPEL.SI / KORE SP)

48

9 February 2018

Figure 94: Lease expiry profile for Northridge Center I & II 30%

27.5% 27.5%

25% 19.6% 20.1%

20% 15%

Figure 95: Top ten tenants at Northridge Center I & II

14.9% 15.4%

16.4% 16.0% 13.5% 13.3%

10%

8.2% 7.8%

5% 0%

2017

2018

2019 NLA

2020

2021

≥2022

Cash rental income

Tenant Mercury Insurance Services LLC Allstar Financial Group Inc Kuck Immigration Partners LLC Nolan Transportation Group Inc Calero Software LLC OneSource Relocation LLC Woolpert Inc Hire Velocity LLC Roberts Capital Partners LLC General Dynamics Inform Tech Top 10 Tenants Other Tenants Total

Trade Sector Finance and Insurance Finance and Insurance Professional Services Professional Services Media and Information Professional Services Media and Information Professional Services Professional Services Professional Services

% of Cash Rental Income 14.7% 12.1% 7.8% 7.7% 6.4% 6.2% 5.6% 4.9% 4.5% 3.6% 73.5% 26.5% 100.0%

Source: Company data

Source: Company data

Figure 96: Northridge Center's trade sectors by NLA

Figure 97: Northridge Center's historical occupancy 100%

Others, 6%

93.9%

91.5%

92.1%

2Q17

3Q17*

87.1%

90% 81.5% 80%

Media and Information, 16%

71.9%

70% Finance and Insurance, 29%

60% 50% 40%

Technology, 6%

Professional Services, 43%

30% 20% 10% 0% FY14

Source: Company data

FY15

2Q16

FY16

* 3Q17 data based on committed occupancy. Note: No data provided for 2Q15. Source: Company data

Summary of Maitland Promenade II Maitland Promenade II is a 5-storey, Class A, multi-tenant office building that contains 230,366 sq ft rentable area situated on a 398,216 sq ft site. The asset's improvements were completed in 2001 and are considered to be in good condition by Cushman. The property features a detached three-level parking garage with covered canopy walkway and amenities including rich lobby finishes, on-site café and shared fitness centre.

Keppel KBS US REIT (KPEL.SI / KORE SP)

49

9 February 2018

Figure 98: Maitland Promenade II—summary of asset details Address

NLA (sq ft) Land Area (sq ft) Gross Revenue Income for FY2016 (US$)

495 N Keller Road, Maitland, Orange County, Florida Freehold 2001 2013 to 2016 99.0% 1,052 8 floors (5 stories office and 3 stories parking garage) 226,990 398,216 5,312,000

Net Property Income for FY2016 (US$) Annualised Average Rent per sq ft (US$) for June 2017 Valuation by Cushman (US$ mn) Valuation by JLL (US$ mn)

2,971,000 23.77 43.5 37.0

Number of Tenants as of 30 June 2017

12

WALE by NLA as at 30 June 2017 (years) WALE by Cash Rental Income for June 2017 (years)

5.2 2.1

Land Tenure Completion Date Refurbishment Occupancy as of 30 June 2017 Parking Stalls Number of Floors

Source: Company data

Figure 99: Lease expiry profile for Maitland Promenade II

Figure 100: Top ten tenants at Maitland Promenade II

80%

66.4% 66.8%

70%

60% 50% 40% 30% 20%

13.6% 13.8%

10%

0.6% 0.3%

1.4% 1.5%

2017

2018

15.5% 15.1% 2.5%

2.6%

0% 2019 NLA

2020 Cash rental income

Source: Company data

Keppel KBS US REIT (KPEL.SI / KORE SP)

2021

≥2022

Tenant Zurich American Insurance Co Akerman, Senterfitt & Edison United Health Care Services Sonepar Management US Inc New York Life Insurance Co. Centene Management Company Taylor Morrison Home Funding Amtrust North America, Inc. Principal Life Insurance CO Embrace Home Loans Top 10 Tenants Other Tenants Total

% of Cash Trade Sector Rental Income Finance and Insurance 15.1% Professional Services 14.1% Finance and Insurance 13.8% Professional Services 12.6% Finance and Insurance 11.7% Medical and Healthcare 11.1% Professional Services 9.0% Finance and Insurance 8.2% Finance and Insurance 2.6% Professional Services 1.5% 99.7% 0.3% 100.0%

Source: Company data

50

9 February 2018

Figure 101: Maitland Promenade II's trade sectors by NLA

Figure 102: Maitland Promenade II's historical occupancy 100%

99.3%

99.0%

99.0%

FY16

2Q17

3Q17*

Others, 1%

95.4% 95%

Medical and Healthcare, 11%

90%

Professional Services, 38%

Finance and Insurance, 51%

86.4%

86.2%

FY15

2Q16

85%

80%

75% FY14

Source: Company data

Keppel KBS US REIT (KPEL.SI / KORE SP)

* 3Q17 data based on committed occupancy. Note: No data provided for 2Q15. Source: Company data

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9 February 2018

Companies Mentioned (Price as of 06-Feb-2018) A-HTRUST (ASHP.SI, S$0.86) AIMS AMP Capital (AART.SI, S$1.33) Ascendas India (AINT.SI, S$1.05) Ascendas REIT (AEMN.SI, S$2.63) Ascott Residence Trust (ASRT.SI, S$1.18) CDL Hospitality Trusts (CDLT.SI, S$1.66) CRT (CROE.SI, S$1.165) Cache Logis (CALT.SI, S$0.85) CapitaLand (CRCT.SI, S$1.58) Capitaland Commercial Trust (CACT.SI, S$1.73) Capitaland Mall Trust (CMLT.SI, S$2.0) EC World REIT (ECWO.SI, S$0.76) FLT (FRAE.SI, S$1.09) Far East H-Trust (FAEH.SI, S$0.71) Fortune REIT (FORT.SI, HK$9.29) Frasers (FRHO.SI, S$0.78) Frasers Centrepoint Trust (FCRT.SI, S$2.21) Frasers Commercial Trust (FRCR.SI, S$1.41) Keppel DC REIT (KEPE.SI, S$1.36) Keppel KBS US REIT (KPEL.SI, $0.88, OUTPERFORM[V], TP $0.97) Keppel REIT (KASA.SI, S$1.18) LMIR Trust (LMRT.SI, S$0.405) MGCCT (MAPE.SI, S$1.19) Manulife US (MANU.SI, $0.91) Mapletree Commercial Trust (MACT.SI, S$1.56) Mapletree Industrial Trust (MAPI.SI, S$1.96) Mapletree Logistics Trust (MAPL.SI, S$1.25) OUE C-REIT (OUEC.SI, S$0.71) OUE Hospitality Trust (OUER.SI, S$0.85) PCRT (PCRT.SI^B15) PCRT (PCRT.SI^B15) SPH REIT (SPHR.SI, S$1.0) Sabana Shariah (SABA.SI, S$0.39) Saizen REIT (SZNR.SI, S$0.033) Soilbuild (SBSR.SI, S$0.655) Starhill Global (STHL.SI, S$0.735) Suntec REIT (SUNT.SI, S$1.92) Viva Industrial (VIVA.SI, S$0.9)

Disclosure Appendix Analyst Certification

Nicholas Teh, Louis Chua, CFA and Daniel Lim each certify, with respect to the companies or securities that the individual analyzes, that (1) the views expressed in this report accurately reflect his or her personal views about all of the subject companies and securities and (2) no part of his or her compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report. The analyst(s) responsible for preparing this research report received Compensation that is based upon various factors including Credit Suisse's total revenues, a portion of which are generated by Credit Suisse's investment banking activities

As of December 10, 2012 Analysts’ stock rating are defined as follows:

Outperform (O) : The stock’s total return is expected to outperform the relevant benchmark* over the next 12 months. Neutral (N) : The stock’s total return is expected to be in line with the relevant benchmark* over the next 12 months. Underperform (U) : The stock’s total return is expected to underperform the relevant benchmark* over the next 12 months.

*Relevant benchmark by region: As of 10th December 2012, Japanese ratings are based on a stock’s total return relative to the analyst's coverage universe which consists of all companies covered by the analyst within the relevant sector, with Outperforms representing the most attractive, Neutrals the less attractive, and Underperforms the least attractive investment opportunities. As of 2nd October 2012, U.S. and Canadian as well as European ra tings are based on a stock’s total return relative to the analyst's coverage universe which consists of all companies covered by the analyst within the relevant sector, with Outperforms representing the most attractive, Neutrals the less attractive, and Underperforms the least attractive investment opportunities. For Latin American and Asia stocks (excluding Japan and Australia), ratings are based on a stock’s total return relative to the average total return of the relevant country or r egional benchmark (India - S&P BSE Sensex Index); prior to 2nd October 2012 U.S. and Canadian ratings were based on (1) a stock’s absolute total return potential to it s current share price and (2) the relative attractiveness of a stock’s total return potential within an analyst’s coverage un iverse. For Australian and New Zealand stocks, the expected total return (ETR) calculation includes 12-month rolling dividend yield. An Outperform rating is assigned where an ETR is greater than or equal to 7.5%; Underperform wh ere an ETR less than or equal to 5%. A Neutral may be assigned where the ETR is between -5% and 15%. The overlapping rating range allows analysts to assign a rating that puts ETR in the context of associated risks. Prior to 18 May 2015, ETR ranges for Outperform and Underperform rati ngs did not overlap with Neutral thresholds between 15% and 7.5%, which was in operation from 7 July 2011.

Restricted (R) : In certain circumstances, Credit Suisse policy and/or applicable law and regulations preclude certain types of communications, including an investment recommendation, during the course of Credit Suisse's engagement in an investment banking transaction and in certain other circumstances. Not Rated (NR) : Credit Suisse Equity Research does not have an investment rating or view on the stock or any other securities related to the company at this time. Not Covered (NC) : Credit Suisse Equity Research does not provide ongoing coverage of the company or offer an investment rating or investment view on the equity security of the company or related products.

Keppel KBS US REIT (KPEL.SI / KORE SP)

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Volatility Indicator [V] : A stock is defined as volatile if the stock price has moved up or down by 20% or more in a month in at least 8 of the past 24 months or the analyst expects significant volatility going forward. Analysts’ sector weightings are distinct from analysts’ stock ratings and are based on the analyst’s expectations for the fundamentals and/or valuation of the sector* relative to the group’s historic fundamentals and/or valuation: Overweight : The analyst’s expectation for the sector’s fundamentals and/or valuation is favorable over the next 12 months. Market Weight : The analyst’s expectation for the sector’s fundamentals and/or valuation is neutral over the next 12 months. Underweight : The analyst’s expectation for the sector’s fundamentals and/or valuation is cautious over the next 12 months. *An analyst’s coverage sector consists of all companies covered by the analyst within the relevant sector. An analyst may cov er multiple sectors.

Credit Suisse's distribution of stock ratings (and banking clients) is: Global Ratings Distribution

Rating

Versus universe (%)

Of which banking clients (%)

Outperform/Buy* 46% (65% banking clients) Neutral/Hold* 38% (61% banking clients) Underperform/Sell* 13% (54% banking clients) Restricted 2% *For purposes of the NYSE and FINRA ratings distribution disclosure requirements, our stock ratings of Outperform, Neutral, a nd Underperform most closely correspond to Buy, Hold, and Sell, respectively; however, the meanings are not the sam e, as our stock ratings are determined on a relative basis. (Please refer to definitions above.) An investor's decision to buy or sell a security should be based on investment objectives, current holdin gs, and other individual factors.

Important Global Disclosures

Credit Suisse’s research reports are made available to clients through our proprietary research portal on CS PLUS. Credit Suisse research products may also be made available through third-party vendors or alternate electronic means as a convenience. Certain research products are only made available through CS PLUS. The services provided by Credit Suisse’s analysts to clients may depend on a specific client’s preferences regarding the frequency and manner of receiving communications, the client’s risk profile and investment, the size and scope of the overall client relationship with the Firm, as well as legal and regulatory constraints. To access all of Credit Suisse’s research that you are entitled to receive in the most timely manner, please contact your sales representative or go to https://plus.credit-suisse.com . Credit Suisse’s policy is to update research reports as it deems appropriate, based on developments with the subject company, the sector or the market that may have a material impact on the research views or opinions stated herein. Credit Suisse's policy is only to publish investment research that is impartial, independent, clear, fair and not misleading. For more detail please refer to Credit Suisse's Policies for Managing Conflicts of Interest in connection with Investment Research: https://www.creditsuisse.com/sites/disclaimers-ib/en/managing-conflicts.html . Credit Suisse does not provide any tax advice. Any statement herein regarding any US federal tax is not intended or written to be used, and cannot be used, by any taxpayer for the purposes of avoiding any penalties. Credit Suisse has decided not to enter into business relationships with companies that Credit Suisse has determined to be involved in the development, manufacture, or acquisition of anti-personnel mines and cluster munitions. For Credit Suisse's position on the issue, please see https://www.credit-suisse.com/media/assets/corporate/docs/about-us/responsibility/banking/policy-summaries-en.pdf . Target Price and Rating Valuation Methodology and Risks: (12 months) for Keppel KBS US REIT (KPEL.SI) Method: Our target price of US$0.97 for Keppel KBS US REIT is based on DDM which assumes a cost of equity of 8.1% and a 1.5% terminal growth rate. Given the low expiring rents in 2018 and 2019, rent reversions are expected to be strong over the next two years while annual escalations of 2-3% will also drive DPU growth, hence our OUTPERFORM rating. Risk:

Key investment risks to our target price of US$0.97 and OUTPERFORM rating for Keppel KBS US REIT are (1) changes to tax law which raise tax expenses for Keppel KBS US REIT; (2) economic risks; (3) competition risk; (4) weaker-than-expected rent reversions; and (5) acquisition risk.

Please refer to the firm's disclosure website at https://rave.credit-suisse.com/disclosures/view/selectArchive for the definitions of abbreviations typically used in the target price method and risk sections. See the Companies Mentioned section for full company names

Credit Suisse currently has, or had within the past 12 months, the following as investment banking client(s): KPEL.SI, CMLT.SI, OUER.SI, SPHR.SI, MACT.SI, CACT.SI, KEPE.SI, MAPI.SI, SUNT.SI, MAPL.SI, KASA.SI, AEMN.SI, FCRT.SI, ASRT.SI Credit Suisse provided investment banking services to the subject company (KPEL.SI, CMLT.SI, OUER.SI, MACT.SI, CACT.SI, KEPE.SI, MAPI.SI, KASA.SI, FCRT.SI, ASRT.SI) within the past 12 months. Credit Suisse currently has, or had within the past 12 months, the following issuer(s) as client(s), and the services provided were non-investmentbanking, securities-related: SPHR.SI, MAPI.SI, MAPL.SI Credit Suisse has managed or co-managed a public offering of securities for the subject company (KPEL.SI, MACT.SI, KEPE.SI, MAPI.SI, KASA.SI) within the past 12 months. Within the past 12 months, Credit Suisse has received compensation for investment banking services from the following issuer(s): KPEL.SI, CMLT.SI, OUER.SI, MACT.SI, CACT.SI, KEPE.SI, MAPI.SI, KASA.SI, FCRT.SI, ASRT.SI Credit Suisse expects to receive or intends to seek investment banking related compensation from the subject company (KPEL.SI, CMLT.SI, CDLT.SI, OUER.SI, SPHR.SI, MACT.SI, CACT.SI, KEPE.SI, MAPI.SI, SUNT.SI, MAPL.SI, KASA.SI, AEMN.SI, FCRT.SI, ASRT.SI) within the next 3 months. Keppel KBS US REIT (KPEL.SI / KORE SP)

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Within the last 12 months, Credit Suisse has received compensation for non-investment banking services or products from the following issuer(s): SPHR.SI, MAPI.SI, MAPL.SI Credit Suisse or a member of the Credit Suisse Group is a market maker or liquidity provider in the securities of the following subject issuer(s): AEMN.SI, ASRT.SI, CDLT.SI, CACT.SI, CMLT.SI, FCRT.SI, KEPE.SI, KPEL.SI, KASA.SI, MACT.SI, MAPI.SI, MAPL.SI, OUER.SI, SPHR.SI, SUNT.SI A member of the Credit Suisse Group is party to an agreement with, or may have provided services set out in sections A and B of Annex I of Directive 2014/65/EU of the European Parliament and Council ("MiFID Services") to, the subject issuer (KPEL.SI, CMLT.SI, CDLT.SI, OUER.SI, MACT.SI, KEPE.SI, MAPI.SI, SUNT.SI, MAPL.SI, KASA.SI, AEMN.SI, ASRT.SI) within the past 12 months. For date and time of production, dissemination and history of recommendation for the subject company(ies) featured in this report, disseminated within the past 12 months, please refer to the link: https://rave.credit-suisse.com/disclosures/view/report?i=346195&v=-4sspgo3nulniy71nck7bpfq5q .

Important Regional Disclosures

Singapore recipients should contact Credit Suisse AG, Singapore Branch for any matters arising from this research report. The analyst(s) involved in the preparation of this report may participate in events hosted by the subject company, including site visits. Credit Suisse does not accept or permit analysts to accept payment or reimbursement for travel expenses associated with these events. Restrictions on certain Canadian securities are indicated by the following abbreviations: NVS--Non-Voting shares; RVS--Restricted Voting Shares; SVS--Subordinate Voting Shares. Individuals receiving this report from a Canadian investment dealer that is not affiliated with Credit Suisse should be advised that this report may not contain regulatory disclosures the non-affiliated Canadian investment dealer would be required to make if this were its own report. For Credit Suisse Securities (Canada), Inc.'s policies and procedures regarding the dissemination of equity research, please visit https://www.creditsuisse.com/sites/disclaimers-ib/en/canada-research-policy.html. Principal is not guaranteed in the case of equities because equity prices are variable. Commission is the commission rate or the amount agreed with a customer when setting up an account or at any time after that. This research report is authored by: Credit Suisse AG, Singapore Branch.................................................................................................. Nicholas Teh ; Louis Chua, CFA ; Daniel Lim To the extent this is a report authored in whole or in part by a non-U.S. analyst and is made available in the U.S., the following are important disclosures regarding any non-U.S. analyst contributors: The non-U.S. research analysts listed below (if any) are not registered/qualified as research analysts with FINRA. The non-U.S. research analysts listed below may not be associated persons of CSSU and therefore may not be subject to the FINRA 2241 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account. Credit Suisse AG, Singapore Branch.................................................................................................. Nicholas Teh ; Louis Chua, CFA ; Daniel Lim Important disclosures regarding companies that are the subject of this report are available by calling +1 (877) 291-2683. The same important disclosures, with the exception of valuation methodology and risk discussions, are also available on Credit Suisse’s disclosure website at https://rave.credit-suisse.com/disclosures . For valuation methodology and risks associated with any recommendation, price target, or rating referenced in this report, please refer to the disclosures section of the most recent report regarding the subject company.

Keppel KBS US REIT (KPEL.SI / KORE SP)

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Investment principal on bonds can be eroded depending on sale price or market price. In addition, there are bonds on which investment principal can be eroded due to changes in redemption amounts. Care is required when investing in such instruments.

Keppel KBS US REIT (KPEL.SI / KORE SP)

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Keppel KBS US REIT (KPEL.SI / KORE SP)

(Houston). Westmoor. Center. (Denver). Portfolio. Occupancy as at June 2017. Committed occupancy as at Sept 2017. Market occupancy. 6.00%. 6.50%. 7.00% ..... KORE's tenants are spread across several sectors with professional services, and finance ...... Figure 39: Seven private REITs are currently managed by KBS.

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Oct 1, 2013 - See Appendix A-1 for Analyst Certification, Important Disclosures and .... ratings: Citi Research may also assign a three-month relative call (or rating) to a ..... Financial Center ("DIFC") and licensed and regulated by the Dubai.

Keppel Corporation
Price Target : 12-month S$ 12.90 ... latest contracts lift Keppel's YTD wins to S$6.7bn, ... Note : Share price and Target price are adjusted for corporate actions.

SPH REIT
If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CHK has no obligation to update its opinion or the in

Keppel Corp (KEP SP) FLNGV Worth a Fifth More ...
vessels (FLNGVs), the Gimi and the Gandria, which appear to be sister vessels to the Hilli (see Figure 1). ♢ FLNGVs likely to see strong global demand through 2020. According to the Douglas-Westwood World FLNG Market Forecast, the global floating l

hemaraj leasehold reit - Settrade
May 10, 2018 - CHARAN DNA. FVC. INSURE ..... 127 Gaysorn Tower, 14-16fl., Ratchadamri Rd.,. Lumpini ... Asian city resort Building 2nd Floor 1468/126-128.

Keppel Corporation - MOBILPASAR.COM
Apr 16, 2014 - Jackup order from Falcon Energy Group. 226. 279. 04-Jun-13. Caspian Drilling. 1x semisub. Contract to build 1 semisub with delivery scheduled in 4Q16. 800. 1000. 03-Jul-13. PV Drilling. 1x jackup. Jackup contract from PV Drilling Overs

SPH REIT
Manager, shopper traffic increased by 1-2% y-o-y despite competition from Jurong Lake District; we believe the mall's performance should remain resilient as it ...

Suntec REIT
Ivan Looi +65 6232 3841 [email protected]. Singapore Research +65 6232 3845 ..... Sangkat Toeuk Thla, Khan Sen Sok. Phnom Penh. Cambodia.

Keppel Land
Apr 16, 2014 - the Financial Services and Markets Act and is regulated by The Financial Conduct ... compliance with any applicable U.S. laws and regulations.

Suntec REIT
Oct 22, 2014 - Suntec reported 3Q DPU of 2.33cts (+2% YoY, +3% QoQ) with 0.04cts capital distribution, which ... retail leasing market as a factor of slower commitment. The target of ..... In cases where at least one Brazil based analyst (identified

Ascendas REIT
... Tan +65 66823716 [email protected]. Rachael TAN +65 6682 3713 [email protected]. Price Relative. Forecasts and Valuation. FY Mar (S$ m). 2014A 2015A. 2016F. 2017F. Gross Revenue. 614. 673. 696. 766. Net Property Inc. 436. 463. 488. 557. Total Ret

Soilbuild Business Space REIT - PhillipCapital
Oct 15, 2015 - We tuned in to the Analyst Briefing conference call earlier this morning. SBREIT will trade ex-dividend on 20 October. Results at a glance.

Starhill Global REIT
Jan 29, 2015 - Net property income ... Phillip Financial Advisory (Shanghai) Co Ltd .... of financial services to a large number of corporations in Singapore and.

KBS 20162017 Student Handbook Final.pdf
Megan Smallwood Teacher. Misty Sparks Teacher. Sallie Speir Teacher. Julie Spence Teacher. Glennisha Stanley Teacher. Peggy Trammell Teacher. Elizabeth Tucker Teacher. Jan Turpin Teacher. Judy Walker Teacher. Patricia Watson Psychologist. Sandy Watso

KBS 20162017 Student Handbook Final.pdf
Ashley Wilson Paraprofessional. Page 3 of 39. KBS 20162017 Student Handbook Final.pdf. KBS 20162017 Student Handbook Final.pdf. Open. Extract.

Parkway Life REIT
Jan 28, 2015 - Financial Summary. FY Dec (S$ ... Source: Company, DBS Bank, Bloomberg Finance L.P. .... 2001 (“CA”) in respect of financial services provided to the recipients. ... compliance with any applicable U.S. laws and regulations.