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Keppel REIT DPU Fall for 1QFY2016

Keppel REIT Logo

Keppel REIT announces its unaudited financial results for 1QFY2016 on 14th April 2016. Distributable income increased slightly by 0.8% despite the divestment of 77 King Street in Sydney in January 2016. DPU fell by 1.2% from 1.70 cents in 1QFY2015 to 1.68 cents in 1QFY2016.

1QFY2016
(S$’000)
1QFY2015
(S$ ‘000)
YoY(%)
Property Income  41,167  42,405  (3.0)
Net Property Income  32,910  34,587  (5.1)
Distributable Amount  54,438  54,009  0.8
Distribution Per Unit (“DPU”) (cents)  1.68  1.70 ( 1.2)

Weighted Average Debt Maturity

Keppel REIT has completed 100% of refinancing requirements in 2016. The weighted average term to maturity to 3.6 years. There is no refinancing requirements until the second half of 2017.

Weighted Average Lease Expiry

Keppel REIT achieved a significant reduction of expiring leases to only a minimal 3% for the rest of 2016, with a 99% tenant retention rate. Long WALE of approximately 8 years (till year 2024) and 6 Years (till year 2022) for the top 10 tenants and overall portfolio respectively.

Keppel REIT Weighted Average Debt Expiry 1Q2016

Occupancy

Occupancy is 99.4% and an average positive rent reversion of 7% was achieved for all leases executed in 1QFY2016.

Keppel REIT Occupancy

85% of total leases is not due for renewal till 2018 and beyond. Approximately 80% of total leases is
not due for renewal till 2019 and beyond, when limited new office supply is expected.

Rental

Average Grade A rent for Singapore’s core Central Business District is at approximately $9.90 psf in 1Q 2016. Keppel REIT is able to keep it at approximate S$10.90.

Keppel REIT Rent 1Q2016

I have previously added more of Keppel REIT to my portfolio. (Read more at Summary of January 2016 Transactions)

Soilbuild REIT DPU Fall for 1QFY2016

Soilbuild REIT Logo

Soilbuild REIT announces its results for 1QFY2016 on 21st January 2016. Gross revenue increased 8.2% to S$20.1 million and net property income (“NPI”) grew 8.8% to S$17.2 million. Distributable income rose 9.6% to S$14.6 million from S$13.3 million in 1QFY2015.

Distribution Per Unit (DPU) fell 4.7% to 1.557 cents as compared to 1.633 cents a year ago. The annualised distribution yield is 8.5% based on the closing price of S$0.73 as at 31st March 2016.

1QFY2016
(S$’000)
1QFY2015
(S$ ‘000)
YoY(%)
Gross Revenue 20,142 18,615 8.2
Net Property Income 17,193 15,798 8.8
Distributable Amount 14,609 13,325 9.6
Distribution Per Unit (“DPU”) (cents) 1.557 1.633 (4.7)
Annualised DPU (cents) 6.228 6.487 (4.0)

Weighted Average Debt Maturity

With the post refinancing in April 2016, the weighted average debt maturity was lengthen from 3 years to 3.6 years.

Soilbuild REIT 1Q2016 Refinancing

Occupancy

Soilbuild REIT has a portfolio occupancy rate of 94.8% as at 31 March 2016. The portfolio renewals achieved a positive rental uplift of 7.6%.

Weighted Average Lease Expiry

Weighted average lease expiry (by gross rental income) stands at 4.7 years.

Soilbuild REIT WALE

Mr Roy Teo, CEO of the Manager, said: “For 1Q FY2016, the fall in occupancy is partially cushioned by a 6.6% positive rental reversion, despite several quarters of declining rental in various sub-industrial sectors.”

I have previously added more of Soilbuild REIT to my portfolio. (Read more at Summary of January 2016 Transactions)

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