Keppel Reit Q3 DPU dips 2.9%

Keppel Reit's total return before tax for the quarter was $24.6 million, compared to $40.1 million a year ago, mainly due to lower net property income from Ocean Financial Centre (above), 275 George Street and 8 Exhibition Street.
Keppel Reit's total return before tax for the quarter was $24.6 million, compared to $40.1 million a year ago, mainly due to lower net property income from Ocean Financial Centre (above), 275 George Street and 8 Exhibition Street.PHOTO: ST FILE

SINGAPORE - Lower contributions from several properties took a toll on results for office landlord Keppel Reit in its third quarter.

Distribution per unit (DPU) slipped 2.9 per cent to 1.36 cents from 1.4 cents in the year-ago period, the group said in a Singapore Exchange filing on Monday (Oct 15).

That came as Q3 income available for distribution slipped 1.4 per cent to $46.3 million from the year-ago period.

For the three months ended Sept 30, gross revenue fell 9.4 per cent to $36.7 million from the preceding year. Net property income fell 10.9 per cent to $28.2 million from the preceding year.

These were due to lower contributions from Ocean Financial Centre, 275 George Street and 8 Exhibition Street, partially offset by higher property income and net property income from Bugis Junction Towers.

The group's total return before tax for the quarter was $24.6 million, compared to $40.1 million a year ago, mainly due to lower net property income from the three properties, lower rental support, lower share of results of associates and joint ventures, higher borrowing costs, net foreign exchange differences, as well as net change in fair value of derivatives.

Keppel Reit units finished $0.02 or 1.8 per cent up at $1.14 on Monday, before the results were announced.