Q. You joined Keppel in 2014. Can you share your journey in Keppel so far?

It has been a fascinating journey with Keppel. I started out in Keppel Corporation’s Group Strategy & Development department which was a great place to begin as it gave me a good understanding of the different business units and functions within the Group.

One of the key projects I was involved in during that time was the formation of Keppel Capital, where I worked with many of the different Keppel business units to put it together. With its establishment, I was fortunate to be given the opportunity to be CFO, supporting Christina who was leading the new asset management unit. It was a busy beginning for me with a new role to learn – I spent lots of weekends reading accounting technical papers and getting advice from my very capable finance team. While the role was quite wideranging, covering finance, compliance, legal and investor relations, I found it interesting to learn how all the different parts of the asset management business gel together. During that period, I also led Keppel’s efforts to list Keppel Pacific Oak US REIT with our US joint venture partner. The listing has been one of the most memorable highlights of my career at Keppel so far.

I was also fortunate to be Swee Yiow’s Deputy CEO at Keppel REIT for about a year, before becoming CEO in 2019. These experiences all helped prepare me for my role at Keppel REIT. Getting to the role isn’t sufficient though, what’s been most important is that I have a great team at the REIT – they are doing a really wonderful job. Over the years, I have definitely learnt more from them than they from me.

Q. You started out as an engineer in New York after graduating from Cornell University, and then became a management consultant at Bain & Company, before joining Keppel. How is your past experience contributing to your current role in Keppel?

I have always enjoyed building and creating things. I started out as a civil engineer in 2001 where a big part of my work involved the design and review of technical specifications of buildings. That has come in handy for my role at Keppel REIT, in terms of understanding operations and as we conduct technical due diligence on potential assets.

My experience as a management consultant has also been very useful, but even more so to me personally. In consulting, a lot of time is spent talking to industry experts, learning from others, and building on that knowledge. It drove home the importance of asking for advice. In a group as diverse and complex as Keppel, learning from colleagues is a critical thing.

Besides that, my time as a management consultant also taught me how to structure and frame complex issues, as well as approach problems from different angles. I’ve been able to leverage this structured approach to good use at Keppel REIT, where we’ve been able to look at the different levers that can be moved to improve the REIT for the benefit of all stakeholders.

Q. What are some of the key strategies that have been implemented at Keppel REIT under your leadership?

There are two key aspects to our strategy that we have been focused on over the last two years – optimising the portfolio and enhancing capital efficiency – with the main goal being to improve our Distribution per Unit (DPU) and achieve long-term sustainable returns for Unitholders.

Firstly, the portfolio optimisation strategy involves the divestment of older or lower yielding assets, which unlocks divestment proceeds that allow us to fund growth through reinvestments into higher yielding assets. It also enables us to expand into new geographies or markets, such as Seoul and Macquarie Park, to improve income resilience and diversification.

Secondly, the REIT has $8 billion in assets under management, but also approximately $3 billion in debt, so minimising borrowing costs is critical. The team has made significant efforts in enhancing our capital efficiency by optimising the REIT’s capital structure through share buy-backs, leveraging convertible and perpetual bonds, and restructuring interest rate swaps to reduce interest costs. Lowering costs has been as critical to our DPU as increasing our property income.

Q. There has been much discussion about the future of offices post COVID-19. How has Keppel REIT been affected by COVID-19 so far? How will Keppel REIT future-proof its assets?

With COVID-19’s widespread impact, telecommuting has become a necessity across countries and industries. In the longer run, this will continue to impact us as many firms will likely incorporate some degree of work-from-home considerations in their future office planning, as well as seek increased flexibility in their operations. Nonetheless, while the function of the office will continue to evolve, physical office spaces will continue to be a necessity for social interaction, client engagement and collaboration.

While there may be some impact on office demand, we think that it will likely be at a measured pace as tenants reassess their space requirements in the context of their existing leases, which are typically between three and five years. Additionally, in Singapore, the potential negative net impact could be further offset by the increase in demand from tech tenants, which has been a continuing trend despite COVID-19.

As landlords, we need to be nimble and adapt to the situation, making sure that we have the best-in-class assets in the right locations. Keppel Land, which is Keppel REIT’s sponsor, has developed premium assets which now form the very strong core of the REIT’s portfolio.

Looking ahead, we will need to ensure that our buildings have quality infrastructure and features that can ensure the health and wellness of occupants, such as advanced air filtration systems to ensure good indoor air quality. We will also need to further boost the standards of cleanliness, as well as continue to leverage technology and automation within our buildings.

Q. You were one of the close to 30 younger business leaders who contributed to the preparation of Vision 2030. What was the experience like?

It was a very good experience. I enjoyed working with leaders from the other business units. I was impressed by the ideas and goals that they have in mind both for their business units and for the Group. It was encouraging to see the strong desire among the Group’s business leaders for innovation, improvement, and to build on the transformative steps that Keppel has been undertaking over the past few years to drive the strategy and vision for Keppel forward.

One of the key points in Keppel’s Vision 2030 is the monetisation of Keppel’s assets through its listed REITs and Trust managed by Keppel Capital. This has the benefit of improving returns to Keppel Group, accelerating the growth of our Keppel businesses, and it also adds to Keppel REIT’s potential pipeline. I look forward to collaborating with the wider Keppel Group in pursuit of Vision 2030, while delivering stable and sustainable returns to our Unitholders.

Q. What do you do in your free time?

I spend a lot of time on work, so I don’t have a lot of free time [laughs]. That said, I think it is important for everyone to find their own balance between work, family, and doing what they enjoy. My wife is my saving grace on that front – carrying a greater load at home than me despite her own work. Without her, there is no way I could juggle everything. Outside of work, I spend most of my time with family, with regular family outings and date nights with my wife on weekends. Recently, my children and I have been watching the television series, Eco Challenge, known as the world’s toughest adventure race. I used to watch this show all the time in the 1990s. It recently restarted and it’s been great fun watching it with my sons and hearing them talk about it.