Keppel REIT (SGX:K71U) announced on 19 October that it has achieved higher distributable income of SGD54.4 million for 3Q 2015 and SGD163.2 million for YTD 2015, representing an increase of both of 4.6% and 1.8% above that of the corresponding periods in 2014 respectively.
“The improved distribution income was due largely to better performance from Ocean Financial Centre, Bugis Junction Towers and 8 Chifley Square in Sydney”, said the Singapore-listed office REIT in its announcement.
However distribution per unit (DPU) for the quarter was at 1.70 Singapore cents, representing a fall of 8.1% as compared to the 1.85 Singapore cents paid in the corresponding financial period in 2014.
The REIT’s portfolio occupancy has also declined from 99.3% to 98.5% from the previous quarter.
“Looking ahead, market conditions are expected to be challenging due to the upcoming office supply over the next two years and possible rising interest rate environment”, said the REIT.
“The manager will continue to intensify its tenant retention and engagement efforts to support occupancy and rental rates, while maintaining a well‐staggered lease expiry profile for sustainable and resilient returns”, it added.
Units of Keppel REIT are currently listed on the Singapore Exchange at SGD1.00.