Keppel Reit's distributable income for Q3 up 4.6%

SINGAPORE - Keppel Reit posted a 4.6 per cent increase in distributable income to S$4.4 million for the third quarter.

The improved distribution income was mainly owing to better performance from Ocean Financial Centre, Bugis Junction Towers and 8 Chifley Square in Sydney.

The Reit's manager, Keppel Reit Management, said on Monday: "On the capital management front, the manager continues to proactively mitigate financing, interest and foreign exchange risks."

During the three months to Sept 30, the manager increased its fixed-rate loans to over 70 per cent, which will insulate against interest rate fluctuations.

The manager said this will also allow for operational and financial flexibilities.

It added that Keppel Reit's average cost of debt was constant at2.5 per cent, with interest coverage ratioat a healthy 4.4 times.

The manager is declaring a distribution per unit of 1.7 cents for the three months to Sept 30, which "translates to an annualised distribution yield of 7.2 per cent".

rachaelb@sph.com.sg