K-REIT's net profit, revenues rocket to S$31.3m and S$39.3m

This beyond double increase results to distributable income worth S$49.8m.

According to DBS Vickers, K-REIT’s NPI and gross revenues more than doubled to S $31.3m and S$39.3m, respectively, led by its 88% stake in Ocean Financial Centre (OFC) and improving occupancy rates at all properties.

Meanwhile, the income vacuum left by the expiry of One Raffles Quay’s (ORQ) was partly mitigated by the GST rebates and positive rental reversions. Distributable income was S$49.8m or 1.94cts DPU (+86.5% y-o-y, +2.1% q-o-q).

Here's more from DBS Vickers:

Although the Eurozone crisis has created uncertainties in the global economic climate, K-REIT’s portfolio continued to demonstrate resilience by outperforming the general office market. Occupancy is now 97% with improvement at all its properties, while leases that were renewed in the quarter saw positive rental reversions.

Meanwhile, OFC signing rents continued to hold up at S$11-13 psf supported by higher occupancy of 93% vs 91% a quarter ago. In Sydney, Apple has taken up additional space at 77 King Street, lifting occupancy by 5 ppt to 93%

Gearing has risen to 43.9% following the acquisition of 12.4% stake in OFC, but the trust is on track to refinance its S$598m loan due at the end of the year with a 5-year term loan. This should mitigate refinancing risk and extend its debt expiry profile from 2.5 years to 3.6 years.