Keppel Reit Q1 distributable income rises 19.7% to S$57.9 million
Net property income up 9.7% year on year at S$59.9 million for the quarter
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[SINGAPORE] Keppel Reit reported on Tuesday (Apr 21) that its distributable income from operations for the first quarter ended Mar 31, 2026, rose 19.7 per cent to S$57.9 million from S$48.4 million in the year-ago period.
It rose 17.8 per cent year on year to S$62.9 million from S$53.4 million after including a S$5 million anniversary distribution.
The increase was supported by a 14.4 per cent rise in property income to S$78.6 million. This was due mainly to contributions from Top Ryde City Shopping Centre and increased occupancy at Ocean Financial Centre, the manager said.
Net property income grew 9.7 per cent year on year to S$59.9 million for the quarter, from S$54.6 million.
The real estate investment trust’s (Reit) share of results of joint ventures rose 37.6 per cent to S$41.7 million. This was primarily attributed to the additional one-third interest in Marina Bay Financial Centre Tower 3 acquired at the end of 2025, as well as higher rentals and lower borrowing costs.
No distribution was declared for the quarter as it is paid out on a half-yearly basis. Based on the total number of units in issue, the estimated distribution per unit for Q1 would be S$0.0127, the manager said.
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Chua Hsien Yang, CEO of the manager, said: “Keppel Reit continued to record strong rental reversion of 17.2 per cent in Q1 2026, with the portfolio enjoying a high occupancy of 97.1 per cent.”
He added: “While the macroeconomic environment and Middle East conflict present a more volatile operating environment, Keppel Reit remains anchored by our robust underlying performance and supported by favourable market fundamentals.”
In Q1, the Reit committed over 450,000 square feet of leases. Portfolio occupancy improved to 97.1 per cent from 96.7 per cent, driven by higher office occupancy and stable performance at Top Ryde City Shopping Centre.
The weighted average lease expiry for the portfolio stood at about 4.4 years.
In Singapore, the Reit achieved a weighted average signing rent of S$13.26 per square foot (psf) per month for office leases, compared with an average rent of S$11.98 psf per month for leases expiring in financial year 2026.
New and expansion demand was primarily driven by the banking, insurance, and financial services sector, which accounted for 73.9 per cent of new leases.
As at Mar 31, 2026, the Reit’s aggregate leverage was 40.2 per cent. The weighted average cost of debt for Q1 was 3.16 per cent per annum, while the interest coverage ratio was 2.6 times. About 62 per cent of total borrowings are on fixed rates.
Units of Keppel Reit closed flat at S$0.92 on Monday.
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