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Keppel Reit's Q2 DPU down 9.5%

KEPPEL Reit marked a 9.5 per cent year-on-year decline in distribution per unit (DPU) to 1.72 Singapore cents in the second quarter ended June 30, 2015.

Net property income slipped 11.4 per cent year on year to S$34.7 million, mainly due to the absence of income from the divested Prudential Tower as well as the lack of rental support from Marina Bay Financial Centre Phase one and the 87.5 per cent interest in Ocean Financial Centre.

Keppel Reit said it has completed all its refinancing requirements for this year and early-refinanced some 70 per cent of loans due in 2016. It also commenced early refinancing for loans due in 2017. This has extended the maturity of all its total borrowings for repayment from 2017 and beyond.

"Looking ahead, the manager remains focused on tenant retention and is continually engaging tenants for forward renewals," Keppel Reit said.

It has renewed and reviewed almost all of its leases that are due for renewals and reviews in 2015. To-date, it has achieved a positive rental reversion of 18 per cent on average, a healthy tenant retention rate of about 84 per cent, and a portfolio occupancy level of 99.3 per cent.