The manager of Keppel REIT has reported property income of $61.3 million for the 1QFY2024 ended March 31, 6.3% higher y-o-y.
Net property income (NPI) grew by 7.2% y-o-y to $48.2 million. The higher property income and NPI were attributed to higher rentals and contributions from 2 Blue Street.
NPI attributable to unitholders rose by 7.1% y-o-y to $43.4 million during the quarter.
Share of results of associates, which are Keppel REIT’s one-third interests in One Raffles Quay and Marina Bay Financial Centre, rose by 11.2% y-o-y to $21.9 million from higher rentals. The growth was offset by higher borrowing costs and property expenses.
Share of results of joint ventures (JVs), which are Keppel REIT’s 50% interests in 8 Chifley Square and David Malcolm Justice Centre, fell by 5.4% y-o-y to $5.7 million.
Borrowing costs during the quarter was up by 21.3% y-o-y at $18.7 million.
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Despite the higher operating performance, distributable income from operations stood flat at $50.2 million and at $55.2 million, including the anniversary distribution of $5 million, due mainly to higher borrowing costs.
During the quarter, the REIT reported positive rental reversion of 10.9%.
As at March 31, its portfolio committed occupancy stood at 96.4% while portfolio weighted average lease expiry (WALE) stood at 4.6 years.
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Aggregate leverage as at the same period stood at 39.4% with 74% borrowings at fixed rates. Interest coverage ratio stood at 3.3 times.
Units in Keppel REIT closed 1 cent higher or 1.19% up at 85 cents on April 22.
