Keppel REIT's NPI down 10.95% to $28.2m in Q3

Total committed space hit 1.9 million sqft.

Keppel REIT saw its net property income (NPI) dwindle down 10.95% YoY to $28.2m in Q3, according to its unaudited financial results. Distribution to unitholders dipped 1.40% to 46.34m.

Meanwhile, distribution per unit (DPU) slipped 2.85% to $0.136 from $0.140.

In September, the REIT’s total committed space hit 1.9 million sqft and average signing rent for Singapore office leases was around $10.88 psf pm. Amongst its leases, 40% were newbies whilst the rest were renewals or reviews.

The firm noted that demand for rental spaces mainly came from government agencies as well as the banking, finance, insurance, and financial services sector.

The portfolio’s weighted average lease expiry (WALE) grew to 5.7 years from 5.2 years in Q2. the firm noted that WALE for their top 10 tenants stood higher at around 8.1 years.

Amongst its new tenants will be HSBC, which just signed a 10-year lease for its new headquarters at Marina Bay Financial Tower 2. The bank eyes fit-out work to commence by H2 2019 whilst target occupancy is by April 2020.

The REIT’s portfolio committed occupancy stood at 98% whilst tenant retention rate hit 84% by end-September.

“Amidst improving market sentiments, the manager will continue to strive for an optimal balance between maintaining high occupancy levels and maximising returns from the assets,” the firm said.