Keppel Reit Q1 distributable income falls 3.5% to S$48.4 million

Keppel Reit reported on Wednesday (Apr 23) that its distributable income from operations fell 3.5 per cent to S$48.4 million on the year in Q1 2025, from S$50.2 million previously.

Including an annual S$20 million anniversary distribution, distributable income fell 3.2 per cent year on year to S$53.4 million, from S$55.2 million. However, as the Reit manager said that it had elected to receive 25 per cent of its management fees in cash from FY2025, it noted that the Reit’s distributable income (including its anniversary distribution) would have grown 3.2 per cent if management fees were fully payable in units.

Borrowing costs jumped 23.4 per cent on the year to S$23.1 million from S$18.7 million, following the acquisition of 255 George Street in Sydney in May 2024, as well as the refinancing of borrowings in FY2024, the Reit manager said.

Despite this, net property income grew 13.3 per cent year on year to S$54.6 million in Q1 from S$48.2 million. Property income rose 12.1 per cent to S$68.7 million, from S$61.3 million.

The manager said these increases were due to better performance of its Singapore properties in the Central Business District, higher occupancy at 2 Blue Street, as well as contributions from 255 George Street.

Relating to the Reit’s interests in One Raffles Quay and Marina Bay Financial Centre, Keppel Reit posted an 11 per cent increase in share of results of associates to S$24.3 million year on year, from S$21.9 million.

The Reit’s aggregate leverage stood at 42.1 per cent, with 65 per cent of total borrowings on fixed rates, and an interest coverage ratio of 2.5 times, the manager said.

Its portfolio occupancy was 96 per cent, while weighted average lease expiry stood at 4.7 years.

Units of Keppel Reit closed S$0.005 or 0.61 per cent higher at S$0.83 on Tuesday.

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