Keppel Reit posts 8.1% y-o-y drop in Q3 DPU

Keppel Reit marked 8.1 per cent year-on-year drop in distribution per unit (DPU) to 1.7 Singapore cents for the third quarter ended Sept 30 due to an enlarged unit base relating to a stake acquisition of a property.

Keppel Reit acquired a one-third stake in Marina Bay Financial Centre Tower 3 in the fourth quarter last year and divested Prudential Tower on Sept 26, 2014.

Net property income for the third quarter slipped 13.3 per cent year on year to S$33.4 million due mainly to the divestment of Prudential Tower, partially mitigated by higher property income from Ocean Financial Centre and Bugis Junction Towers.

But Keppel Reit still achieved a 4.6 per cent rise in distributable income to S$54.41 million after factoring in net tax and other adjustments.

Despite challenging leasing market conditions, the Reit manager has achieved a positive rent reversion averaging 16 per cent for office leases signed, renewed and reviewed year-to-date.

Overall portfolio occupancy declined slightly from a quarter ago from 99.3 per cent to 98.5 per cent as of Sept 30.