Keppel Reit H1 DPU dips 4% to S$0.0261 on enlarged unit base, sells Ginza office block for US$70 million
This is due to an enlarged unit base for the distribution period, its manager says
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[SINGAPORE] Keppel Real Estate Investment Trust (Reit) on Wednesday (Jul 29) posted a distribution per unit of S$0.0261 for its first half ended June, a 4 per cent decline from S$0.0272 a year prior.
This was due to an enlarged unit base for the distribution period, the Reit’s manager said in a Singapore Exchange filing.
Ex-dividend date for the distribution is on Aug 5, while the record date is on Aug 6. The distribution will be paid on Sep 15.
Distributable income from operations for the period stood at S$119.6 million, up 25.2 per cent year on year from S$95.5 million.
The anniversary distribution is S$10 million in H1, unchanged from a year ago.
The distributable income including anniversary distribution is recorded at S$129.6 million, rising 22.8 per cent on the year from S$105.5 million.
Property income also rose 16.7 per cent year on year to S$159.3 million in H1, from S$136.5 million, largely due to contributions from Top Ryde City Shopping Centre, said the manager.
Net property income attributable to unitholders stood at S$112.1 million for the period, up 13.3 per cent from S$98.9 million a year before.
Keppel Reit in H1 committed over 1.1 million square feet of leases.
“Demand for new and expansion office space was primarily driven by the banking, insurance and financial services sector, as well as the technology, media and telecommunications sector,” said the manager.
The portfolio also continued to deliver positive rental reversions, achieving 12.8 per cent in H1.
As at Jun 30, aggregate leverage stands at 40 per cent, with 62 per cent of total borrowings on fixed rates.
Weighted average cost of debt stood at about 3.3 per cent per annum, with an interest coverage ratio was 2.7 times.
The manager of Keppel Reit on Wednesday also announced that it is divesting its majority stake in KR Ginza II, a freehold boutique office building in Tokyo, for 11.5 billion yen (US$70.2 million).
The eight-storey property has a total net lettable area of 3,594 square metres, and was previously acquired by the trust in November 2022.
The proposed sale represents a premium of 28.4 per cent over the property’s purchase price at acquisition in November 2022 and is 9.7 per cent above its valuation as at Jul 10, 2026.
The buyer is a listed real estate company in Japan and the deal is expected to be completed in Q3 2026.
Post-sale, the portfolio committed occupancy remains high at 96 per cent with a weighted average lease expiry of 4.5 years.
Units of Keppel Reit ended 0.6 per cent or S$0.005 higher at S$0.89 on Tuesday.
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