Keppel REIT's Ocean Financial Centre, in which a stake was sold to Allianz Real Estate in 2018. (Photo: REITsWeek)

Keppel REIT has achieved a distribution per unit (DPU) of 1.40 cents for its 2Q 2020, an increase of 0.7% year-on-year.

Distributable income for the period was SGD47.5 million (USD34 million), including capital gains distribution of SGD5.0 million, bringing total distributable income for the half year of 2020 (1H 2020) to SGD94.8 million.

Notwithstanding the impact of the implementation of COVID‐19 tenant relief measures, the cessation of rental support, and lower income contribution following the divestment of Bugis Junction Towers in November 2019, distributable income for 1H 2020 was maintained year‐on‐year due mainly to contributions from T Tower, commencement of major leases in the Singapore portfolio, higher capital gains distribution, and lower borrowing costs, said the REIT.

“Keppel REIT’s prime office portfolio and high quality tenant profile have provided income stability and resilience during this challenging period”, said the REIT.

“However, with increased government measures and the extended outbreak, the manager has increased targeted tenant support measures over this last quarter”, it added.

Aggregate leverage was 36.3% and all‐in interest rate was reduced to 2.48% per annum.

Data from Keppel REIT’s latest results have been updated into the Singapore REITs table.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.