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Keppel Reit's Q2 DPU drops after sale of Sydney office building

KEPPEL Reit on Tuesday posted a drop in its distribution per unit (DPU) to 1.61 Singapore cents for its second quarter ended June 30, 2016. In the corresponding quarter a year ago, it had paid out 1.72 Singapore cents.

Net property income fell 6.5 per cent to S$32.5 million, on the back of a 5.6 per cent drop in property income (comprising rents as well as carpark and other income) to S$40.6 million.

The fall was due mainly to the absence of income contribution from 77 King Street. In the first quarter, the Reit had sold the Sydney commercial building for A$160 million (S$158 million) to a unit of Invesco Asia Core Fund.

"Excluding contribution from 77 King Street, property income and net property income remained stable in Q2 2016," the Reit said.

The distribution will be paid on Aug 26; the books closure date is July 27.

Its counter dipped 1.5 cents to S$1.08 on Tuesday before its results release.