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

Felicia Tan
Felicia Tan10/26/2021 07:32 AM GMT+08  • 3 min read
Keppel REIT reports 20.8% higher distributable income of $159.9 mil for 9MFY21
NPI attributable to unitholders increased by 42.6% y-o-y to $116.8 million.
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The manager of Keppel REIT 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.

See: RHB upgrades Keppel REIT to 'buy' on being a beneficiary of economic reopening and sustainability wave

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, click here for our Capital section

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.

Photo: Keppel REIT

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