Keppel REIT posts 2H21 net property income rose 15 percent

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

Keppel REIT reported Tuesday its second half net property income rose 15.2 percent on-year to S$88.2 million, mainly on contributions from Victoria Police Centre and the acquisition of Pinnacle Office Park and Keppel Bay Tower. 

T Tower in Seoul, South Korea, also posted higher property income, but had higher property expenses, the filing said.

In addition, 275 George Street, which was divested in July 2021, had a lower contribution, and net property income fell from Ocean Financial Centre and 8 Exhibition Street, the REIT said.

Property income for the six months ended 31 December grew 16.9 percent on-year to S$110.8 million, Keppel REIT said in a filing to SGX. 

The distribution per unit (DPU) was 2.88 Singapore cents for the second half, down 1.7 percent on-year from 2.93 Singapore cents in the year-ago period, the REIT said. 

For the second half of 2021, the REIT had around 3.70 billion units issued, while for the year-ago period, the REIT had around 3.41 billion units, the filing said.

Distributable income from operations for the second half rose to S$106.4 million, up 6.6 percent on-year, the filing said.

Full-year results

For the full year, Keppel REIT reported net property income increased 27.3 percent on-year to S$172.5 million on property income of S$216.6 million, up 27.2 percent on-year. The full-year DPU was 5.82 Singapore cents, up 1.6 percent from 5.73 Singapore cents the previous year, the filing said.

The increase was due mainly to full year contribution from Victoria Police Centre which achieved practical completion in July 2020, contribution from the acquisition of Pinnacle Office Park in December 2020 and Keppel Bay Tower in May 2021, as well as higher property and net property income from 8 Exhibition Street and T Tower due to stronger Australian dollar and Korean Won respectively.

This was offset partially by the lower contribution from 275 George Street which was divested in July 2021, as well as lower property income and net property income from Ocean Financial Centre. The lower property income and net property income from Ocean Financial Centre was due to occupancy changes.


In its outlook, Keppel REIT noted both Singapore and Australia have seen increases in prime office rents. 

“As the global community transitions towards endemic living, Grade A commercial buildings with strong safety and service levels are well positioned to attract and retain tenants,” Keppel REIT said. 

Keppel REIT’s portfolio has 11 properties located in Singapore, Australia and South Korea, with the assets under management valued at S$9 billion, the filing said. 

Read more details on Keppel REIT’s financial results.