Keppel DC REIT's net property income up 14.2% to $24.9m in Q4

Thanks to the contribution from Cardiff DC and Milan DC.

Keppel DC REITs announced an increase in net property income in the quarter ending in December, up 14.2% to $24.9m.

Gross rental income for 4Q16 was $26.1 million, an increase of $1.5m or 6.0% from 4Q15 of $24.6m.The group said these were due to contribution from Cardiff DC and Milan DC, increase in variable income at the Singapore Properties due to higher ad hoc revenue and lower other property-related costs and higher overseas contribution due to appreciation of EUR against SGD.

"These were partially offset by lower overseas contribution due to the depreciation of GBP and MYR against SGD. At KDC DUB 1, there was lower rental income arising from a client downsizing its requirements in 1Q16. Other income was $0.8m arising mainly from power and service revenue charged to clients, as well as the rental top up income provided by the vendor of a newly acquired overseas asset," the group said.

For 4Q16, property operating expenses was $1.9m, a decrease of 1.0m as compared to 4Q15. This was largely due to lower property tax, repairs and maintenance and other property-related costs.

However, it posted lower distribution per unit for the said quarter, which came in at 1.31 cents, lower than the 1.64 cents from the same period a year earlier.