Keppel REIT’s net property income (NPI) rose 9.7% y-o-y in 1QFY2026 ended March 31 “mainly to contributions from Top Ryde City Shopping Centre and increased occupancy at Ocean Financial Centre”.
Share of results of joint ventures increased by 37.6% y-o-y due mainly to contribution from the additional one-third interest in Marina Bay Financial Centre (MBFC) Tower 3 (announced in December 2025), along with higher rentals and lower borrowing costs.
Keppel REIT’s share of results from joint ventures comprises its one-third interests in One Raffles Quay and Marina Bay Financial Centre (Towers 1 and 2 and Marina Bay Link Mall), two-third interest in MBFC Tower 3 and 50% interests in 8 Chifley Square and David Malcolm Justice Centre.
Keppel REIT pays distributions half-yearly. Distributable income from operations during the quarter rose 19.7% y-o-y to $57.9 million.
As at March 31, the weighted average lease expiry (WALE) for the portfolio and the top 10 tenants was at approximately 4.4 years and 8.0 years respectively.
Aggregate leverage was 40.2%, with a weighted average term to maturity (WATM) of 2.6 years.
See also: KORE reports 1QFY2026 distributable income of US$10 mil, up 4.3% y-o-y
For 1QFY2026, the weighted average cost of debt was 3.16% per annum. Excluding the effects of equity bridge loans obtained to preliminarily fund the acquisition of an additional one-third interest in MBFC Tower 3 that were repaid in full on Jan 20, it would be 3.27% per annum.
The interest coverage ratio was 2.6 times. As at March 31, 62% of total borrowings was on fixed rates, and sustainability-focused funding was at 79% of total borrowings.
During the quarter, Keppel REIT committed more than 450,000 sq ft (attributable area of approximately 240,800 sq ft) of leases. New and expansion office demand was primarily driven by the banking, insurance and financial services (73.9%) sector.
See also: Alpha Integrated REIT’s 1QFY2026 portfolio occupancy improves to 91.4%
1QFY2026 portfolio occupancy increased to 97.1% from 96.7% in 4QFY2025 as a result of higher office occupancy and stable occupancy at Top Ryde City Shopping Centre in Sydney.
Rental reversion for the portfolio for 1QFY2026 was at 17.2%. The weighted average signing rent of Keppel REIT’s Singapore CBD office leases was approximately $13.26 psf per month in 1QFY2026, while the average rent of leases expiring in FY2026 is $11.98 psf per month.
Chua Hsien Yang, CEO of the manager, says: “Keppel REIT continued to record strong rental reversion of 17.2% in 1QFY2026, with the portfolio enjoying a high occupancy of 97.1%. While the macroeconomic environment and Middle East conflict present a more volatile operating environment, Keppel REIT remains anchored by our robust underlying performance and supported by favourable market fundamentals.”
Keppel REIT’s $11.8 billion portfolio comprises prime commercial properties located in Singapore (78.9% of portfolio), Australia (18.1%), South Korea (2.3%) and Japan (0.7%).
Units in Keppel REIT have fallen 5.15% year to date.
