Keppel Reit Q1 distributable income falls 3.5% to $48.4 million
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255 George Street in Sydney, which Keppel Reit acquired in May 2024, contributed to its higher net property income.
PHOTO: KEPPEL REIT
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SINGAPORE - Keppel Reit reported on April 23 that its distributable income from operations in the first quarter of 2025 fell 3.5 per cent year on year to $48.4 million from $50.2 million previously.
Including an annual $20 million anniversary distribution, distributable income fell 3.2 per cent year on year to $53.4 million, from $55.2 million.
However, as the Reit manager said that it had elected to receive 25 per cent of its management fees in cash from financial year 2025, it noted that the Reit’s distributable income (including its anniversary distribution) would have grown 3.2 per cent if management fees were fully payable in units.
Borrowing costs jumped 23.4 per cent on the year to $23.1 million from $18.7 million, following the acquisition of 255 George Street in Sydney in May 2024, as well as the refinancing of borrowings in FY2024, the Reit manager said.
Despite this, net property income (NPI) grew 13.3 per cent year on year to $54.6 million in Q1 from $48.2 million. Property income rose 12.1 per cent to $68.7 million, from $61.3 million.
The manager said these increases were due to better performance of its Singapore properties in the Central Business District, higher occupancy at 2 Blue Street in Sydney, as well as contributions from 255 George Street.
Relating to the Reit’s interests in One Raffles Quay and Marina Bay Financial Centre, Keppel Reit posted an 11 per cent increase in share of results of associates to $24.3 million year on year, from $21.9 million.
The Reit’s portfolio occupancy was 96 per cent, while weighted average lease expiry stood at 4.7 years. The portfolio is currently worth $9.5 billion, with 78.6 per cent of its assets in Singapore.
Due to higher rentals, the NPI of the Singapore portfolio grew 3.3 per cent year on year, while committed occupancy fell 2 percentage points from the previous quarter. Its Australian portfolio, which comprises 17.6 per cent of the Reit’s assets, increased 20.8 per cent year on year due to the acquisition of 255 George Street and higher occupancy at 2 Blue Street – both of which are office buildings in Sydney.
The manager said new leasing demand and expansions in the quarter came largely from the technology, media and telco sector at 47.7 per cent of attributable gross rent, followed by the banking, insurance and financial services sector.
Units of Keppel Reit closed 1.8 per cent higher at 84.5 cents on April 23. THE BUSINESS TIMES
