Keppel REIT’s Portfolio Occupancy Dips To 95.1%
SINGAPORE – Local bourse filings showed that the committed occupancy rate of Keppel REIT’s property portfolio declined to 95.1 per cent at the end of Q1 2022 compared to 96.5 percent during the same period last year, reported The Business Times on Wednesday evening (20 April, SGT).
As of 31 March 2022, its portfolio weighted average lease expiry (WALE) stood at 6.1 years.
During the period under review, Keppel REIT leased out 475,000 sq ft of space, with new leases and expansions primarily carried out by real estate and property services sector as well as the manufacturing and distribution segment.
Keppel REIT’s manager disclosed that most of the leases concluded were located in Singapore. In particular, average signing rent for its local office space was about S$11.15 psf per month.
Notably, Singapore properties account for 78.3 percent of Keppel REIT’s portfolio, while Australia and South Korea respectively make up 18.2 percent and 3.5 percent. Interestingly, RHB believes that any potential acquisitions or any divestment by Keppel REIT could likely come from the Australian market.
Aside from that, Keppel REIT’s distributable income rose 4.3 percent S$53.8 million in Q1 2022 from S$51.6 million during the first three months of 2021.
Its manager credited the growth in distributable income mainly to the purchase of the Keppel Bay Tower in May last year. However, this was partially offset by the sale of 275 George Street office building in Brisbane, Australia last July.
As for Keppel REIT’s property income, it increased 6.7 percent year-on-year to S$54.5 million from S$51.1 million previously, while net property income (NPI) attributable to unitholders rose 9.9 percent from S$36.4 million to S$40 million.
