Keppel REIT posts 9M21 net property income climbed around 43 percent

Keppel REIT’s Ocean Financial CenterKeppel REIT’s Ocean Financial Center. Photo taken pre-Covid.

Keppel REIT reported Tuesday its net property income attributable to unitholders for the January-to-September period increased 42.6 percent on-year to S$116.8 million, mainly on contributions from Victoria Police Centre in Melbourne, Pinnacle Office Park in Sydney and Keppel Bay Tower in Singapore.

For the first half, Keppel REIT had reported net property income of S$84.38 million.

Including amounts attributable to non-controlling interests, net property income for the nine-month period rose 36.8 percent on-year to S$129.4 percent, the REIT said in a filing to SGX.

Property income for the nine months was S$162.2 million, up 34.8 percent on-year, the filing said.

The distributable income from operations increased 20.8 percent on-year to S$159.9 million, the filing said.

“Despite the COVID-19 pandemic, portfolio leasing activities remained positive, with new leases and expansions seen from diverse industry sectors including the financial services sector, technology, media and telecommunications sector, as well as manufacturing and distribution sector,” the REIT said in the statement.

“With accelerated vaccinations and further reopening, Grade A office buildings that are well managed with sustainable and technologically-advanced features are expected to be well sought after,” the REIT added.

Around 1.72 million square feet of space had committed leases in the nine-month period, with most in Singapore, Keppel REIT said.

Keppel REIT said portfolio occupancy was at 97.1 percent at end-September, and rental collection was healthy at 99 percent for the nine-month period.

At end-September, Keppel REIT’s portfolio included S$8.6 billion of Grade A commercial properties, with 80 percent in Singapore, 16.4 percent in Australia and 3.6 percent in South Korea. Nine of the 10 properties are green-certified, with Keppel Bay Tower, 8 Exhibition Street and Victoria Police Centre fully powered by renewable energy.