Keppel Reit’s 9M distributable income falls 0.6% to S$159.6 million

[SINGAPORE] The manager of Keppel Real Estate Investment Trust (Reit) on Wednesday (Oct 29) posted a 0.6 per cent lower distributable income of S$159.6 million for the first nine months of its financial year, from S$160.6 million.

This includes an anniversary distribution of S$15 million, which remained unchanged from the same period in the year before. 

Net property income for the first nine months grew 8.6 per cent year on year to S$161.3 million, from S$148.5 million. 

The increase came on the back of contributions from freehold Grade A office building 255 George Street in Sydney, sustained demand for Singapore prime office space, and lower borrowing costs at the associate level, said the manager. Higher occupancy in another office building in Sydney, 2 Blue Street, was a factor as well.

Earlier in October, the manager of Keppel Reit said it raised S$113 million in a private placement to purchase a 75 per cent interest in Top Ryde City Shopping Centre in Sydney. It entered an agreement on Oct 7 to acquire a majority stake in the freehold retail mall for A$393.8 million (S$335.1 million).

Aggregate leverage stood at 42.2 per cent as at Sep 30, with an interest coverage ratio of 2.6 times. The weighted average cost of debt stood at 3.45 per cent per annum.

Its borrowings on fixed rates made up 65 per cent of total borrowings.

Portfolio committed occupancy stood at 96.3 per cent, while rental reversion for the period was recorded at 12 per cent. The weighted average lease expiry was at 4.7 years.

Units of Keppel Reit closed Tuesday S$0.04 or 3.9 per cent higher at S$1.07.