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

Data from Keppel REIT’s latest disclosure has been incorporated into the Singapore REITs table.

Keppel REIT announced on 26 October that it has achieved distributable income of SGD159.9 million for 9M 2021, an increase of 20.8% year-on-year from 9M 2020.

The year-on-year improvement in distributable income, excluding any distribution of capital gains, was due mainly to contributions from Victoria Police Centre in Melbourne, Pinnacle Office Park in Sydney and Keppel Bay Tower in Singapore.

The increase was partially offset by the impact of the divestment of 275 George Street in Brisbane, said the REIT.

Proceeds from this divestment have since been deployed to repay debt and lower Keppel REIT’s aggregate leverage to 37.6% as at 30 September 2021.

The weighted average term to maturity of Keppel REIT’s borrowings has also been lengthened during the quarter to 3.3 years with the issuance of SGD150.0 million of 7-year medium term notes at 2.07% per annum in September 2021.

For 9M 2021, Keppel REIT’s all-in interest rate was reduced to 1.99% per annum compared to 2.39% per annum a year ago, with interest coverage ratio at 3.9 times.

“With accelerated vaccinations and further reopening, Grade A office buildings that are well managed with sustainable and technologically-advanced features are expected to be well sought after”, said Keppel REIT.

“The manager will continue its portfolio optimisation strategy and proactive tenant engagement to build a robust portfolio that meets diverse tenant needs”, it added.

Keppel REIT was last done on the SGX at SGD1.07, which presently implies a distribution yield of 5.50% according to data on the Singapore REITs table.

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.