Keppel Reit first-half DPU falls 3.4% amid higher borrowing costs
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Keppel Reit’s Singapore properties performed strongly with committed occupancy of 98.9 per cent, its manager said.
PHOTO: LIANHE ZAOBAO
Mia Pei
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SINGAPORE - Keppel Reit’s distribution per unit (DPU) fell by 3.4 per cent to 2.8 cents for its first half-year ended June, from 2.9 cents the year before.
Property income was up 8.9 per cent year on year at $125.1 million for the first half, from $114.9 million.
Net property income (NPI) grew 7.7 per cent to $96.8 million from $89.9 million.
The increase was mainly attributed to higher property income and higher NPI from Ocean Financial Centre, KR Ginza II and 2 Blue Street, which achieved practical completion on April 3, 2023, and contribution from 255 George Street, which was acquired on May 9, 2024.
“This was partially offset by lower net property income from 8 Exhibition Street, Victoria Police Centre and Pinnacle Office Park due mainly to higher property expenses and a weaker Australian dollar,” said the manager.
Distributable income from operations declined 2.1 per cent year on year to $96.9 million from $99 million. This comes as borrowing costs rose 29.8 per cent to $41.3 million from $31.8 million.
The distribution will be paid out on Sept 13, after books closure on Aug 7.
Mr Koh Wee Lih, chief executive officer of the manager, highlighted a strong performance by the Reit’s Singapore properties with committed occupancy of 98.9 per cent, on an NPI increase of 4.1 per cent on the year.
Mr Koh noted that the performance of its Australia portfolio has also improved, with committed occupancy increasing to 93.6 per cent as at end-June from 91.6 per cent a quarter ago. NPI for the Australia portfolio for the period grew 12.3 per cent despite a stronger Singapore dollar.
Keppe Reit shares were trading unchanged at 88 cents as at 10.33am on July 30. THE BUSINESS TIMES
