Keppel REIT reported its net property income for the second quarter climbed 35.5 percent on-year to S$43.2 million, as property income was boosted by one-off income from early lease surrenders.
That beat Daiwa’s forecast last week for S$31.9 million in net property income.
Property income for the quarter was S$51.65 million, up from S$39.85 million in the year-earlier quarter, the REIT manager reported in a filing to SGX after the market close on Monday. The distribution per unit (DPU) was 1.42 Singapore cents for the quarter, unchanged from the year-earlier quarter, in line with Daiwa’s forecast.
For the first half, net property income was up 17.6 percent on-year at S$74.43 million, it said. The first-half DPU was 2.84 Singapore cents, down from 2.87 Singapore cents in the year-earlier period, it said.
The manager said that as of the end of June, the portfolio’s committed occupancy remained high at 99.3 percent.
The REIT manager said it planned to start unit buybacks, intending to buy back up to around 1.5 percent of the issued units over six months, dependent upon market conditions.
For the Singapore portfolio outlook, the manager said the medium-term outlook remained positive amid a tapering supply pipeline, while in Australia, office-market vacancies were at the lowest since 2013 amid improving business conditions.