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

Keppel REIT has reported net property income (NPI) of SGD35.6 million for its 3Q 2020, a rise of 7.2% year-on-year.

Distributable income from operations for the quarter was SGD47.6 million, a 4.6% increase year‐on‐year.

This was mainly due to the commencement of income contribution from 311 Spencer Street in Melbourne, which achieved practical completion on 9 July 2020, and lower interest expenses.

As at 3Q 2020, Keppel REIT’s portfolio occupancy was 98.3% with WALE lengthened to 7.1 years from 4.6 years, due mainly to the addition of 311 Spencer Street which is on a 30‐year long lease to the Victoria Police.

However, headwinds loom on the horizon for the Australia office market as JLL Research observed a general decline in the office market occupancy across the various cities during the quarter.

Singapore average Grade A office rents also registered a decrease in 3Q 2020, from SGD11.15 psf pm to SGD10.70 psf pm.

But in Seoul, JLL Research reported stable occupancy in the CBD Grade A office market.

“The COVID‐19 pandemic continues to present unprecedented challenges to the business community”, said Keppel REIT in its 3Q 2020 results statement.

“Keppel REIT’s high portfolio committed occupancy, long WALE and established tenants from diversified sectors will continue to support the REIT’s income resilience”, it assured investors.

Keppel REIT was last done on the SGX at SGD1.06, which implies a distribution yield of about 5.2%, according to data compiled on the Singapore REITs table.