Keppel Reit
Keppel Reit's second-quarter distribution per unit slipped 2.1 per cent to 1.39 cents, due mainly to lower one-off income from Ocean Financial Centre and lower revenue and net property income from Bugis Junction Towers.
The real estate investment trust (Reit) had received lower one-off income due to the early surrender of leases and absence of rental support top-up payments for its one-third interest in Marina Bay Financial Centre Tower 3. The rental support had been fully drawn in the preceding quarter.
The lower one-off income was also a result of the divestment of a 20 per cent stake in Ocean Financial Centre, announced late last year.
For the three months ended June 30, income available for distribution fell by a similar percentage of 2.1 per cent to $47.3 million.
Net property income attributable to unitholders fell 37.8 per cent to $26.9 million, on the back of a 22.7 per cent decline in property income to $39.9 million.
In the first half of this year, the Reit manager had committed total leases of about 272,900 sq ft, bringing Keppel Reit's portfolio committed occupancy to 99.1 per cent as at end-June.
Almost all leases concluded in the first half were in Singapore. The average signing rent for the Singapore office leases committed was $11.93 per square foot (psf) per month, above the Grade A core central business district market average of $11.30 psf per month, according to CBRE.
Keppel Infrastructure Trust
Keppel Infrastructure Trust (KIT) reported a flat total distribution per unit (DPU) of 0.93 cent for the second quarter - despite marked improvements year on year in its distributable cash flow (DCF), revenue and net profits.
The trust - with businesses in the three sectors of energy, distribution and network as well as waste and water - reported a 26.3 per cent increase in DCF at $45.8 million for the three months ended June 30. This came mainly from the contributions by Ixom HoldCo that was acquired in February.
Despite a higher DCF, trust manager Keppel Infrastructure Fund Management declared a flat DPU of 0.93 cent for the quarter, unchanged from a year ago and the preceding quarter. The DPU will be paid on Aug 16.
KIT swung from a loss of $4 million in the second quarter of last year to a profit of $15.96 million in the same quarter this year, while revenue almost tripled from $142.9 million to $418 million in the same period.
Net assets as at June 30 of $2.24 billion increased compared to $1.48 billion as at Dec 31 last year as a result of an equity fund-raising exercise and perpetual securities issued.
