Keppel REIT reports full-year distributable income of S$214m


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23/01/2014

Distributable income for the full year ended December 31 came in at S$214 million, a 6 per cent increase from FY2012.

SINGAPORE: Keppel Real Estate Investment Trust (Keppel REIT) has booked a record distributable income for 2013 since its listing.

Distributable income for the full year ended December 31 came in at S$214 million.

This is a 6 per cent increase from FY2012.

During a briefing on Friday, Keppel REIT announced a distribution per unit (DPU) of 1.97 cents for the fourth quarter of 2013, unchanged from the previous year.

This works out to a DPU of 7.88 cents for FY2013, up 1.4 percent from FY2012.

Keppel REIT attributed the growth to better performance of Marina Bay Financial Centre Phase 1, Ocean Financial Centre, One Raffles Quay, as well as additional income from newly-acquired 8 Exhibition Street and Old Treasury Building in Australia.

For the fourth quarter, the income available for distribution was up 5.9 per cent on-year at S$54.92 million.

Meanwhile, net property income rose 13.9 per cent on-year to S$37.35 million.

Keppel REIT said it has completed refinancing of all loans due in 2014 and the S$60 million due in 2015, with no refinancing requirements for the next 22 months.

It added that all five Singapore properties in its portfolio achieved 100 per cent occupancy – the first time in almost six years that Keppel REIT’s Singapore portfolio has achieved 100 per cent occupancy.

On its acquisition plans this year, in particular the acquisition of Keppel Land’s one-third stake in Marina Bay Financial Centre Tower 3, the REIT manager said it depends on whether Keppel Land is willing to sell.

Ng Hsueh Ling, CEO of Keppel REIT Management, said: “It depends on whether Keppel Land is willing to divest their stake in MBFC Tower 3. Now Tower 3 is probably 90 plus per cent occupied so we have not approach Keppel Land yet, it is only the beginning of this year.

“At the right time, we can actually approach them and we can see if they are willing to divest off their one-third stake this year, for example. So we can’t shed any light on this yet because we have not approached Keppel Land.

“Based on the current trading level, it may not be so easy to acquire Tower 3, assuming Keppel Land is willing to divest it. So one of our intentions was we could consider divesting one of our older assets to partially fund the Tower 3 acquisition so that we do not have to go to the market for huge equity raising. Nothing has been crystallised as yet.”

All in, Marina Bay Financial Centre Tower 3 has more than 1.3 million square feet of Grade A office and retail space, with a net lettable area of 1,340,000 square feet.

With the positive outlook for Singapore, analysts expect office rents to continue to strengthen, led by prime Grade A office space.

As at 31 December 2013, Keppel REIT’s total portfolio of 10 properties in Singapore and Australia grew 10.4 per cent on-year to S$7.2 billion, based on independent valuations.

Its portfolio of assets includes Bugis Junction Towers, Marina Bay Financial Centre Phase 1, Ocean Financial Centre, One Raffles Quay and Prudential Tower in Singapore. The remaining five properties are located in Brisbane, Sydney, Perth and Melbourne in Australia.

 

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