Including the REIT’s anniversary distribution of $15 million, the total distributable income stood at $160.6 million, 1.9% lower y-o-y.
As at Sept 30, the REIT’s aggregate leverage stood at 41.9% with 68% of borrowings on fixed rates, compared to the aggregate leverage of 39.5% with 76% of borrowings on fixed rates as at Sept 30, 2023.
The REIT’s interest coverage ratio (ICR) also fell to 3.0 times as at Sept 30 from 3.3 times last year.
As at Sept 30, Keppel REIT reported a portfolio occupancy of 97.6% compared to an occupancy rate of 97% a quarter ago and 95.9% a year ago.
See also: Keppel Pacific Oak US REIT’s 1QFY2025 distributable income falls by 19.3% y-o-y to US$9.6 mil
The portfolio’s weighted average lease expiry (WALE) stood at 4.6 years compared to the WALE of 5.6 years last year.
For this period, rental reversion stood at a positive 10.2%.
The team at DBS Group Research has maintained its “buy” call with an unchanged target price of $1.15 as it sees “steady improvement” across the REIT’s portfolio.
See also: Keppel DC REIT reports 1QFY2025 DPU of 2.503 cents, 14.2% higher y-o-y
In its view, key positives include the double-digit positive rental reversions, higher occupancy rates as well as the full-quarter income contribution from 255 George Street.
Meanwhile, it is watchful of the REIT’s higher gearing and higher borrowing costs, although it sees those as “likely to have peaked”.
As at 10.36am, units in Keppel REIT are trading 0.5 cents lower or 0.53% down at 93.5 cents.
