The commencement of income contribution from 311 Spencer Street in Melbourne helped to improve Keppel REIT's 3Q performance.
Keppel REIT’s distributable income from operations improved 4.6% y-o-y to $47.6 million in the third quarter ended Sept 30.
This was due mainly to the commencement of income contribution from 311 Spencer Street in Melbourne, which achieved practical completion on July 9.
Lower interest expenses also helped to increase Keppel REIT’s distribution income from operations, the REIT manager says in a key business and operational update on Oct 19.
Keppel REIT’s property income also rose 5.7% y-o-y to $44.8 million. Accordingly, net property income (NPI) attributable to unitholders grew 7.9% y-o-y to $31.3 million.
During the quarter, the REIT lengthened its weighted average lease expiry (WALE) to 7.1 years and maintained a committed occupancy of 98.3%.
However, Keppel REIT’s performance was weak for the nine-month period.
Distributable income from operations slipped 1.3% y-o-y to $132.4 million.
Property income also fell 1.6% y-o-y to $120.3 million.
Furthermore, NPI slid 1.3% y-o-y to $81.9 million.
Amid the Covid-19 pandemic, the REIT managers says that it remains focused on maintaining stable and sustainable distributions to unitholders, and to achieving long‐term growth.
Keppel REIT’s high portfolio committed occupancy, long WALE and established tenants from diversified sectors will continue to support its income resilience, it adds.
Keppel REIT closed flat at $1.06 with 5.3 million units changed hands on Oct 19.
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