The manager of <a href="https://www.theedgesingapore.com/tags/keppel-reit-kreit" target="_blank">Keppel REIT</a> reported distributable income from operations of $159.9 million for the 9MFY2021 ended September, 20.8% higher than distributable income of $132.4 million reported in the same period the year before.

The higher figure was mainly due to contributions from the Victoria Police Centre in Melbourne, Australia; Pinnacle Office Park in Sydney, Australia; and Keppel Bay Tower in Singapore. This was partly offset by the divestment of 275 George Street in Brisbane, Australia.

Property income for the nine-month period increased by 34.8% y-o-y to $162.2 million, while net property income (NPI) grew by 36.8% y-o-y to $129.4 million.

NPI attributable to unitholders increased by 42.6% y-o-y to $116.8 million.

<hr/>See: <a href="https://www.theedgesingapore.com/capital/brokers-calls/rhb-upgrades-keppel-reit-buy-being-beneficiary-economic-reopening-and" target="_blank">RHB upgrades Keppel REIT to 'buy' on being a beneficiary of economic reopening and sustainability wave</a><hr/>

The REIT reported 6.6% higher share of results of associates y-o-y to $67.8 million, while share of results of joint ventures increased by 3.7% y-o-y million.

As at end-September, the REIT reported a portfolio occupancy of 97.1% with a weighted average lease expiry (WALE) of 6.1 years.

The REIT’s WALE for its top 10 tenants stood at 10.8 years.

Aggregate leverage stood at 37.6% as at end-September. For the 9MFY2021, Keppel REIT’s all-interest rate was reduced to 1.99% per annum compared to the 2.39% per annum a year ago.

As at Sept 30, Keppel REIT’s portfolio comprised $8.6 billion Grade A commercial properties that’re located in the key business districts in Singapore, Australia and South Korea.

Nine out of 10 of the REIT’s properties are green-certified, including Keppel Bay Tower, 8 Exhibition Street and Victoria Police Centre, which are fully powered by renewable energy.

According to the REIT, the average core CBD Grade A office rents increased to $10.65 psf pm in 3Q201 while average occupancy in the core CBD remained stable at 92.1%.

In Australia, prime grade occupancies in Sydney’s CBD, Macquarie Park and Perth’s CBD stood higher at 87.4%, 88.4% and 85.6% respectively.

The prime grade occupancy rate in Melbourne was the exception as it stood lower at 83.9%.

For more stories about where the money flows, <a href="https://www.theedgesingapore.com/section/capital" target="_blank">click here for our Capital section</a>

The occupancy rate for Grade A offices in Seoul’s CBD increased to 87.9% during the quarter.

“Keppel REIT’s quality portfolio has remained resilient during the Covid-19 pandemic. With accelerated vaccinations and further reopening, Grade A office buildings that are well managed with sustainable and technologically-advanced features are expected to be well sought after,” says the REIT in a statement on Oct 26.

“The manager will continue its portfolio optimisation strategy and proactive tenant engagement to build a robust portfolio that meets diverse tenant needs,” it adds.

Units in Keppel REIT closed flat at $1.08 on Oct 25.

Keppel REIT reports 20.8% higher distributable income of $159.9 mil for 9MFY21

Like Liv@MB's hot launch last weekend, more strong residential sales to come this year: DBS

CGS-CIMB likes Sasseur REIT as 1Q results in line with estimates

Keppel REIT reports 20.8% higher distributable income of $159.9 mil for 9MFY21

Related Stories

Highlights

Government may consider supplementary budget to deal with growing costs, say Maybank economists

Related Stories

Analysts positive on Keppel REIT as it sees strong start to FY2022

S-REIT DPUs expected to grow 12% y-o-y in FY2022; office REITs preferred: Maybank Securities

'Add' SingPost as it's on route towards a steady recovery: CGS-CIMB