Keppel REIT has reported distributable income from operations of $148.6 million during the 9MFY2023 ended Sept 30, 10.1% lower y-o-y.
The lower distributable income was attributed to the higher borrowing costs, and higher property expenses mainly as a result of higher property tax and utility costs. The double-digit y-o-y drop was partially offset by higher property income and rental support.
Including the REIT’s anniversary distribution of $15 million, the REIT’s unitholders will receive $163.6 million in total for the nine-month period.
The REIT announced, on Oct 25, 2022, that it will distribute $100 million over a five-year period to celebrate its 20th anniversary in 2026.
Meanwhile, the REIT reported a higher property income of $172.6 million for the 9MFY2023, a 5% increase y-o-y. The higher property income was due to increased portfolio occupancy and contribution from its KR Ginza II property.
Its net property income (NPI) increased slightly by 1% y-o-y to $134 million, while NPI attributable to unitholders grew marginally by 0.3% y-o-y to $120.4 million.
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For this quarter, the REIT’s portfolio occupancy stood at 95.9%. Excluding Blue & William which achieved its practical completion on April 3, the REIT’s portfolio committed occupancy would be 97.9%, an increase from 97.0% as at June 30.
Its weighted average lease expiry (WALE) stood at 5.6 years as at the same period.
The REIT’s aggregate leverage stood at 39.5%, with 76% of its borrowings at fixed rates as at Sept 30.
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Its Australia, Korea and Japanese denominated loans formed 17%, 4% and 3% of its total portfolio borrowings respectively. Meanwhile, sustainability-focused funding constituted 68% of total borrowings.
Units in Keppel REIT closed at 84 cents on Oct 17.
