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)

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