The manager of Keppel REIT has reported a distributable income of $165.4 million for 9MFY2022, up 3.4% y-o-y mainly driven by the acquisition of Keppel Bay Tower in May 2021.
The rise is also attributed to the adjustment of income tax expense for previous years, partly offset by the divestment of 275 George Street in Brisbane in July 2021 and lower contributions from 8 Chifley Square.
Net property income at $132.6 million is up 2.5% y-o-y from the $129.4 million recorded in the same period last year.
Compared to a quarter ago, Keppel REIT’s portfolio committed occupancy grew from 95.5% to 96.8%, whilst portfolio and top 10 tenants’ weighted average lease expiry (WALE) remained long at approximately 6.1 years and 10.5 years respectively.
Leasing demand continued to show positive momentum, with approximately 1,686,100 sq ft committed in 9M 2022. Singapore makes up most of the leases committed.
As at Sept 30, Keppel REIT’s aggregate leverage stood at 38.4%. All-in interest rate and interest coverage ratio for 9MFY2022 were 2.13% per annum and 3.6 times respectively.
Borrowings on fixed rate was maintained at around 72% to mitigate the impact of rising interest costs, and weighted average term to maturity of the borrowings was 2.8 years with no loans maturing for the rest of 2022.
To celebrate its 20th anniversary in 2026, Keppel REIT is distributing $100 million out of its accumulated capital gain over the next five years as a reward to unitholders.
“With the unwavering support of unitholders, Keppel REIT has grown its assets under management from the initial portfolio of about $600 million to approximately $9 billion as at Sept 30,” says chairman of the manager Tan Swee Yiow.
He adds: “Our disciplined portfolio optimisation not only grew the portfolio from four assets in Singapore to 11 assets across Singapore, Australia and South Korea, it also transformed Keppel REIT into a leading office REIT in Asia Pacific. The anniversary distribution is a timely gesture to thank unitholders.”
Units in Keppel REIT closed at an unchanged 89 cents on Oct 25.