Keppel Reit posts Q1 DPU of 1.39 Singapore cents

KEPPEL Reit on Wednesday announced that its first-quarter distribution per unit (DPU) fell 2.1 per cent year-on-year to 1.39 Singapore cents.

Property income edged up 0.7 per cent year-on-year to S$40.02 million, while net property income inched up 0.3 per cent to S$31.31 million. Distribution to unitholders was down 1.9 per cent to S$47.32 million on the back of the impact of occupancy changes, a weaker Aussie dollar and lower income contribution from Ocean Financial Centre following the divestment of a 20 per cent stake in December 2018. At the end of the quarter, Keppel Reit's portfolio committed occupancy stood at 98.7 per cent. The portfolio weighted average lease expiry worked out to around 5.7 years, the Reit highlighted.

Aggregate leverage was lowered to 35.7 per cent from 36.3 per cent as at end-December 2018, after the further repayment of loans through working capital optimisation and with part of the proceeds from the divestment of the 20 per cent stake in Ocean Financial Centre in 4Q 2018. The weighted average term to maturity was extended from 2.8 years to 3.3 years. The DPU is payable on May 30.

Units in the Reit closed down two cents at S$1.24 on Wednesday before the announcement.