Keppel REIT Q2 net property income up 35.42% to $43.21m

Bugis Junction Towers and Ocean Financial Centre both posted higher income.

Keppel REIT’s net property income (NPI) for the second quarter of 2018 jumped 35.42% to $43.2m from $31.9m last year. Property income grew 29.9% to $51.7m from $39.8m last year.

According to its financial statement, there was an increase in one-off income, as well as higher property income and NPI from Bugis Junction Towers and Ocean Financial Centre. These were partially offset by lower property income and NPI from 275 George Street.

The company also cited higher interest income, lower amortisation expense, net foreign exchange differences, as well as a net change in fair value of derivatives. These were partially offset by lower net property income from 275 George Street, lower rental support, lower share of results of associates and joint ventures, and higher borrowing costs.

For the first half of 2018, NPI jumped by 17.54% to $74.4m from $63.3m last year thanks to an increase in one-off income, as well as higher property income and net property income from Bugis Junction Towers, Ocean Financial Centre and 8 Exhibition Street.

“Looking ahead, the volatile environment will continue to pose challenges,” Keppel REIT said. It will continue to adopt a tenant-centric leasing approach to capitalise on the improving office market so as to offset the impact of recent years’ declining rentals.

“A prudent capital management strategy will be maintained to optimise the REIT’s performance in a rising interest rate environment,” it added.