Keppel REIT’s income sprouts by 4.6% in 3Q

On back of better performances from key properties.

Significant boosts from Ocean Financial Centre, Bugis Junction Towers and 8 Chifley Square in Sydney pulled the REIT’s distributable income up by 1.8%.
According to a statement by Keppel REIT, it’s fixed-rate loans increased to over 70%, which will insulate against interest rate fluctuations.

“Distribution per unit ("DPU") of 1.70 cents for the third quarter 2015,” Keppel REIT said.

“Average cost of debt remained constant at 2.5% and interest coverage ratio at a healthy 4.4 times. [We] hedged almost 100% of distribution payment from Australia up till the first quarter of 2016,” they added.

Meanwhile, Keppel REIT also concluded a total of 82 leases, or 1.1m sf of office space.

“Of the new office leases secured in 3Q 2015, one-third were from tenants setting up presence and operations in Singapore, one-third were from first-time entrants into Keppel REIT's portfolio and the remaining one-third were expansions by existing tenants,” Keppel REIT said.

“Notwithstanding the supply of office spaces from both upcoming and existing buildings, the Manager completed 100% of all leases due for review and almost all leases due for renewal in 2015. With this, approximately 70% of total leases are not due for renewal till 2018 and beyond,” they added.