Keppel REIT has reported a distributable income from operations of $53.8 million, up 4.3% y-o-y for its 1QFY2022 ended March.
The growth was underpinned by the acquisition of Keppel Bay Tower in Singapore in May 2021, but partially offset by the impact from the divestment of 275 George Street in Brisbane in July 2021.
Keppel REIT’s committed leases of approximately 475,000 sf (attributable area of approximately 222,500 sf) in 1Q2022, including new leases and expansions mainly from the real estate and property services sector and manufacturing and distribution sector.
Most of the leases concluded were in Singapore and the average signing rent for the Singapore office leases was approximately $11.154 psf pm.
Committed occupancy was 95.1% as at Mar 31, 2022, while portfolio and top 10 tenants’ WALE remained long at approximately 6.1 years and 10.7 years respectively.
For 1Q 2022, tenant retention rate was 91%. Additional tenant relief measures granted in 1Q2022 amounted to approximately $0.2 million, to some ancillary retail tenants. Rental collection remained healthy at 99% for 1Q 2022.
To mitigate interest volatility, Keppel REIT increased its borrowings on fixed rates from 63% to 71% of the total. As at end-Mar this year, all-in interest rate was reduced to 1.81% per annum as compared to 2.01% per annum a year ago, with interest coverage ratio at 3.8 times. Aggregate leverage was 38.7% with a weighted average term to maturity of 3.1 years.
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Approximately 48% of Keppel REIT’s total borrowings are green loans, an increase from 39% as at end-Dec 2021.
On April 11, 2022, subsequent to the put option exercised by certain holders of the 1.90% convertible bonds due 2024, $146.5 million of the convertible bonds were redeemed. The redemption was funded through loan facilities at comparable interest rates, maturing mainly in 2026 and 2027.
Keppel REIT closed April 18 at $1.19, unchanged for the day.
