SINGAPORE (Jan 24): Keppel REIT has declared a distribution per unit (DPU) of 1.48 cents for the 4Q2016, down 11.9% from a year ago. For the full-year, the REIT reported a 6.3% decline in DPU to 6.37 cents.

Property income came in 6.5% lower at $40 million for the quarter. For the full-year, it was 5.3% lower at $161.3 million.

Net property income (NPI) fell 9.6% for the quarter to $31.4 million. On a full-year basis, NPI declined 6.6% to $128.4 million, mainly attributable to the absence of income contribution from 77 King Street which was divested in January 2016, and lower property income and net property income from Bugis Junction Towers. These were partially offset by higher property income and net property income from Ocean Financial Centre.

As at end-December 2016, the portfolio occupancy rate stood at 99.2%. Portfolio renewals registered negative rental reversion of 9% for the full-year.

The REIT’s weighted average lease expiry stood at 6.1 years as at end-December.

Keppel REIT says that Singapore’s weaker economic growth and cautious sentiments continued to weigh in on the office sector as average Grade A rents eased further to $9.10 psf in 4Q2016. In particular, it noted that the banking and energy sectors were faced with a challenging operating environment.

Units of Keppel REIT closed 0.5 cent higher at $1.045.

Keppel REIT posts 11.9% decline in 4Q DPU to 1.48 cents

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Keppel REIT posts 11.9% decline in 4Q DPU to 1.48 cents

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