Keppel REIT NPI dropped 28.1% to $31.06m in Q2

It was dragged by the lower one-off income from Ocean Financial Centre.

Keppel REIT’s net property income (NPI) crashed 28.1% YoY to $31.06m in Q2 from $43.21m during the same period a year ago, an announcement revealed. NPI attributable to unit holders dropped 37.8% to $26.86m from $43.17m a year ago.

“The decrease was mainly attributable to lower one-off income from Ocean Financial Centre and lower property income and net property income from Bugis Junction Towers,” the firm said in a statement.

For H1 2019, NPI fell 16.2% YoY to $62.37m from $74.46m in H1 2018. NPI attributable to unitholders shrank 27.2% YoY to $54.12m from $74.37m in the same period a year ago.

The firm noted that distributable income for H1 dipped to $94.6m from $96.6m mainly due to the lower one-off income received from the early surrender of leases, the absence of rental support in Q2 2019, and the impact from the divestment of a 20% stake in Ocean Financial Centre. The decrease was partially offset by income contribution from the newly acquired T Tower in Seoul CBD, as well as capital gains distribution of $6m for H1 2019.

Keppel REIT’s distribution per unit (DPU) dipped 2.1% YoY to $0.139 in Q2 2019 from $0.142 in Q2 2018. DPU also slipped 2.1% YoY in H1 2019 to $0.278 from $0.284 in H1 2018.