Keppel REIT has delivered stable distributable income of $142.5 million for 9M 2017. The decrease was attributable to the absence of income from 77 King Street in Sydney which was divested in January 2016, lower one-off income received and the absence of other gains distribution. Distribution per Unit (DPU) of 1.40 cents was declared for 3Q 2017, bringing total DPU for 9M 2017 to 4.27 cents.
As at 30 September 2017, Keppel REIT’s all-in interest rate was stable at 2.58% with interest coverage ratio at 4.4x. Aggregate leverage remained stable quarter-on-quarter at 38.8%. Weighted average term to maturity of borrowings was three years. The Manager is proactively refinancing loans that are due in 2018.
The Manager continued its proactive leasing strategy and has completed almost all leases due for renewal in 2017, with only 0.5% of the total portfolio net lettable area remaining as at 3Q 2017. Portfolio retention rate remained high at 91.8% for 9M 2017.
As at 3Q 2017, committed occupancy of the REIT’s portfolio in Singapore and Australia were at 99.6% and 99.8% respectively. Overall committed occupancy for Keppel REIT’s portfolio remained healthy at 99.6%. Weighted average lease expiry for Keppel REIT’s top 10 tenants and overall portfolio were approximately eight years and six years respectively.
Over the long term, the Manager remains focused on achieving stable and sustainable income for Unitholders. The Manager will maintain its proactive tenant and lease management strategy to optimise value from the REIT’s quality portfolio of office buildings.