The manager of Keppel REIT has posted distributable income for the 1QFY2021 ended March of $51.6 million, 22% higher than distributable income of $42.3 million in the corresponding quarter the year before.
The figure includes the advanced distribution of $32.2 million or 0.94 cents per unit for the period from Jan 1 to Feb 28 that was paid to eligible unitholders on March 31 in connection with the private placement launched on Feb 18.
The manager, on Feb 18, launched a $270.0 million private placement that was around 4.6 times covered. Some 238.9 million new units were issued on March 1.
Distribution for the period from March 1 to June 30 will be revealed at the REIT’s results announcement for the 1HFY2021.
SEE:Keppel admits in talks with KBS to list US commercial REIT
The higher distributable income was attributable mainly to contributions from the Victoria Police Centre in Melbourne and Pinnacle Office Park in Sydney, as well as higher one-off income as well as lower borrowing costs during the quarter. The figure was offset by the impact of slightly lower portfolio occupancy, says the manager.
Property income for the 1QFY2021 rose 32% y-o-y to $51.1 million while net property income (NPI) grew 34.8% y-o-y to $40.7 million.
NPI attributable to unitholders was up by 40.5% y-o-y to $36.4 million.
Share of results of associates grew 31.1% y-o-y to $24.9 million while share of results of joint ventures increased 11.6% y-o-y to $7.7 million.
As at March 31, the REIT’s portfolio committed occupancy stood at 96.5% with a weighted average lease expiry (WALE) of 6.7 years.
Green loans, as at March 31, represented around 25% of the REIT’s attributable share of total borrowings, including the additional A$50 million ($51.6 million) green loan facility obtained in the 1QFY2021.
As at end-March, the REIT has an aggregate leverage of 35.2% with a weighted average term to maturity of 3.0 years.
The REIT had around $1.06 billion of undrawn credit facilities available.
For more stories about where the money flows, click here for our Capital section
In the same update, the manager of the REIT revealed that unitholders had approved the proposed acquisition of a 100% interest in Keppel Bay Tower at the extraordinary general meeting (EGM) on Feb 24.
According to the REIT, the average core CBD Grade A office rents reported by CBRE remained stable at $10.40 psf pm in 1QFY2021.
The manager adds that it is “focused on ensuring stable and sustainable distributions to unitholders, as well as achieving long-term growth” as countries make progress in managing the Covid-19 pandemic.
“Keppel REIT’s high portfolio committed occupancy, long WALE and established tenants from diverse sectors will continue to support the REIT’s income resilience. The manager will continue to optimise Keppel REIT’s portfolio and calibrate its leasing strategy to meet tenants’ evolving business needs,” reads the statement.
Units in Keppel REIT closed flat at $1.21 on April 21.
