SINGAPORE (July 15): The manager of Keppel REIT has declared distribution per unit (DPU) of 1.39 cents for the 2Q19 ended June, some 2.1% lower than DPU of 1.42 cents a year ago.

Income available for distribution dipped 2.1% to $47.3 million during the quarter, from $48.3 million in 2Q18.

Property income fell 22.7% to $39.9 million in 2Q19, from $51.7 million a year ago, mainly due to lower one-off income for early surrender of leases.

Other income, which includes one-off income received from certain tenants, plunged 93.0% to $0.9 million, from $12.9 million a year ago.

Meanwhile, gross rental income was relatively stable during the current quarter, edging up 0.6% to $38.1 million, from $37.9 million a year ago.

Property expenses were 4.8% higher at $8.9 million, led by a 27.3% increase in property tax to $3.2 million.

Consequently, net property income (NPI) slumped 28.1% to $31.1 million, from $43.2 million a year ago.

The portfolio weighted average lease expiry (WALE) remained at approximately 5.3 years, with committed occupancy maintained at 99.1%.

Annualised distribution yield was 4.4% based on Keppel REIT’s market closing price of $1.26 per unit as at June 30, 2019.

As at end June, cash and cash equivalents stood at $98.7 million.

Looking ahead, the manager says that the group will continue its ongoing portfolio optimisation focus, while driving operational excellence in its asset and capital management efforts.

Units at Keppel REIT closed 1 cent higher at $1.26 on Monday.