Keppel REIT’s net property income up 6% YoY in H1 2022

Its portfolio committed occupancy stood at 95.5%.

Keppel REIT posted a 6% year-on-year (YoY) growth in net property income to reach around $89.5m in the first half of 2022, whilst the profit for the period soared by 74.6% YoY to around $208m.

In a financial statement, the company said the committed occupancy of its portfolio was 95.5%, whilst the portfolio and top 10 tenants’ weighted average lease expiry remained long at around six years and 10.5 years, respectively.

The tenant retention rate was at 89% during the period, it said.

Keppel REIT also said that around 881,900 square feet were committed in the first half, including new and expansion leases from tenants in various industry sectors. Singapore accounted for the majority of the leases, with weighted average signing rent for office leases at around $11.43 per sq per month.

READ MORE: CBD, Grade A office rents grew 1.8% QoQ in Q2

It added that the development project, Blue & William, was around 48.7% completed as of 30 June and is on track for completion by mid-2023. 

Meanwhile, the company’s distribution to Unitholders rose 4.6% YoY to $110.5m, mainly driven by the acquisition of Keppel Bay Tower in May 2021. It was offset by the divestment of 275 George Street in Brisbane in July 2021 and a lower contribution from 8 Chifley Square.

Keppel REIT said that its sustainability-focused portfolio of Grade A commercial properties continues to deliver resilient performance amid global economic uncertainties and rising costs.

“Looking ahead, the Manager will continue to focus on maintaining stable and sustainable distribution to Unitholders and achieving long-term growth,” the financial statement read.