Keppel REIT has reported a distribution per unit (DPU) of 5.80 cents for the FY2023 ended Dec 31, 2023, 2.0% lower y-o-y. DPU for the 2HFY2023 fell by 1.7% y-o-y to 2.90 cents.
The lower DPUs were mostly due to the higher borrowing costs. In the FY2023, borrowing costs rose by 16.0% y-o-y to $67.0 million while borrowing costs rose 8.3% y-o-y to $35.2 million in the 2HFY2023.
For the FY2023 and 2HFY2023, the REIT had 3.78 billion units in issue compared to the 3.74 billion units in issue in the corresponding periods the year before.
Property income for the FY2023 rose by 6.3% y-o-y to $233.1 million while property income for the 2HFY2023 rose by 7.9% y-o-y to $118.2 million. The increases were mainly attributable to higher property income from Ocean Financial Centre, Keppel Bay Tower, 8 Exhibition Street and KR Ginza II.
Net property income (NPI) for the FY2023 rose by 3.7% y-o-y to $182.4 million while 2HFY2023 NPI rose by 7.0% y-o-y to $92.5 million. The higher NPIs were due mainly to higher rentals and occupancy for the REIT’s Singapore portfolio. The performance was slightly offset by lower NPI from the Victoria Police Centre and Pinnacle Office Park due mainly to a weaker Australian dollar (AUD).
Interest income for the FY2023 fell by 70.9% y-o-y to $7.3 million due mainly to repayments of advance by an associate in January 2023 and April 2023.
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Distributable income from operations fell by 5.8% y-o-y to $198.7 million in the FY2023 while distributable income for the 2HFY2023 dipped by 0.7% y-o-y to $99.7 million.
Including the anniversary distributions of $20 million for the year, distribution to unitholders dipped by 1.0% y-o-y to $218.7 million in the FY2023. 2HFY2023 distributions, including the anniversary distributions dipped by 0.6% y-o-y to $109.7 million.
The REIT announced in October 2022 that it would distribute a total of $100 million over a five-year period.
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As at end-December, the REIT reported a portfolio occupancy of 97.1% and a weighted average lease expiry (WALE) of 5.5 years.
Its portfolio valuation increased by 0.8% h-o-h to $9.2 billion as at Dec 31, 2023.
The REIT’s aggregate leverage stood at 38.9% with an interest coverage ratio of 3.4 times. The REIT’s fixed borrowings were at 75%.
Unitholders will receive their DPUs on March 15.
Units in Keppel REIT closed 2 cents lower or 2.19% down at 89.5 cents on Jan 29.
