Keppel REIT's Ocean Financial Centre, Singapore.Keppel REIT's Ocean Financial Centre, Singapore.

Singapore-listed office real estate investment trust, Keppel REIT (SGX:K71U), has posted a distribution per unit (DPU) of 1.70 Singapore cents for its 1Q2015.

This is a fall of 13.7% as compared to the 1.97 Singapore cents posted in the corresponding period in 2014.

Net property income (NPI) for the quarter stands at SGD42.4 million, a decrease of approximately 9.6% as compared to the SGD46.7 million in 1Q2014. Correspondingly, distributable income fell 2% to SGD54 million as compared to the SGD55.1 million reported for 2014.

“Distributable income for 1Q 2015 was comparable to that of 1Q 2014, notwithstanding the expiry of rental support from Keppel REIT’s 87.5% interest in Ocean Financial Centre in January 2015, the absence of income contribution from the divested Prudential Tower and the absence of rental support from MBFC Phase One”, Keppel REIT said in a statement announcing the results.

Keppel REIT’s portfolio occupancy for the quarter stands at 99.3%, with six of its seven office towers in Singapore seeing 100% committed occupancy. In Australia, Keppel REIT’s overall portfolio achieved 98.5% commitment.

Weighted average lease expiry (WALE) of the portfolio stands at approximately nine years and six years for its top 10 tenants and overall portfolio respectively. “The extended WALE and Keppel REIT’s young portfolio enhances the sustainability of the property income over the long term”, said the REIT.

Keppel REIT’s weighted debt to maturity is recorded at 3.4 years. The all-in interest rate was 2.47% with an interest coverage ratio of 4.6 times. 65% of its total borrowings are on fixed rates.

Units of Keppel REIT are currently listed on the Singapore Exchange at SGD1.22.

Keppel REIT's Ocean Financial Centre, Singapore.
Keppel REIT's Ocean Financial Centre, Singapore.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.