Keppel REIT's 1QFY2025 net property income (NPI) rose by 13.3% y-o-y to $54.6 million, and distributable income, which includes share of associates and the anniversary distribution, rose by 3.2% y-o-y to $57 million.
NPI growth was supported by the performance of 255 George Street. Share of associates increased by 11% y-o-y to $24 million, supported by better performance of the Singapore properties in the CBD.
Portfolio occupancy remained high at 96.0% with double-digit rental reversion of 10.6%. Weighted average lease expiry (WALE) remained relatively stable at 4.7 years, with top 10 tenants' WALE of 8.7 years. Ocean Financial Centre achieved the Building and Construction Authority (BCA) Green Mark Platinum Super Low Energy certification in April 2025.
Aggregate leverage rose to 42.1% as at end-March compared to 41.2% as at Dec 31, 2024. Average cost of debt of 3.52% in 1QFY2025 was higher than the 3.4% recorded in 4QFY2024.
Interest coverage ratio remained stable at 2.5x. The debt maturity profile is well-staggered with weighted average term to maturity at 2.6 years. Sustainability-focused funding remained at 82% of total borrowings as at March 31.
In 1QFY2025, Keppel REIT refinanced approximately $421 million of loans at lower margins. For the $475 million of loans maturing in 2QFY2025, the manager is in the documentation stage for the facility agreements.
See also: Excluding legacy O&M assets, Keppel’s net profit grew over 25% y-o-y in 1QFY2025
Chua Hsien Yang, CEO of the manager, said: "Our portfolio of prime commercial assets continued to exhibit strength with a high portfolio occupancy of 96.0% and a strong rental reversion of 10.6%. The attributable NPI for Singapore, Australia and North Asia has also increased by 3.3%, 20.8% and 12.6% respectively. We continue to explore ways to improve tenant experience and reinforce our position as the preferred landlord by enhancing and future-proofing our properties. We have completed the asset enhancement initiatives at Building D of Pinnacle Office Park, as well as the fitted suites at 255 George Street. We are also pleased to have achieved the BCA Green Mark Platinum Super Low Energy certification for Ocean Financial Centre. Looking ahead, we remain focused on proactive management of our properties and leases, prudent capital management, and staying agile to adapt to the evolving landscape."
Keppel REIT closed at 83 cents on April 22.
