Keppel REIT's property in Singapore, Bugis Junction Towers. (Photo: REITsWeek)

Keppel REIT has announced a DPU of 1.42 Singapore cents for its 2Q 2017, 11.8% lower than the 1.61 reported in the corresponding period of 2016.

Gross revenue and net property income for the period came in at SGD39.8 million (USD29.11 million) and SGD31.9 million, both lower by about 1.7% year-on-year respectively than what was reported for 2Q 2016.

Keppel REIT has attributed the set of results mainly to the absence of income from 77 King Street in Sydney which was divested in January 2016, lower one-off income in 1H 2017, lower income contribution from Bugis Junction Towers, and the absence of other gains distribution.

However during the quarter, occupancies at the REIT’s Ocean Financial Centre, Marina Bay Financial Centre Phase 1, and Bugis Junction Towers increased, improving committed occupancy for its portfolio to 99.8%.

Its Australian portfolio meanwhile maintained a committed of 99.7% and as such, overall committed occupancy for Keppel REIT’s portfolio increased to 99.8% as at end-June 2017.

The REIT’s weighted average lease expiry (WALE) for its top 10 tenants and overall portfolio stood at approximately nine years and six years respectively.

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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.