- Keppel REIT reported distributable income of S$53.4m for 1Q25 (-3.2% y-o-y), which is in line with our expectation.
- Management has lowered the proportion of management fees paid in units from 100% to 75% starting from 2025. Without the change in policy, distributable income would have grown 3.2% y-o-y instead.
Stronger growth from Australia.
- - Read this at SGinvestors.io -
- NPI from Australia properties increased 20.8% y-o-y due to higher occupancy at 2 Blue Street in North Sydney (with Alstom and BBC Studios secured as new tenants in 4Q24) and contribution from newly-acquired 255 George Street in Sydney CBD (completion: 9 May 24).
Portfolio occupancy eased 1.9ppt q-o-q to 96.0% as of Mar 25.
- Occupancy at Ocean Financial Centre (OFC) dipped 3.7ppt q-o-q to 94.7% in 1Q25 due to BNP Paribas returning several floors. Keppel REIT has already backfilled 70% of the vacant space with positive rental reversion at more than 30%.
- Occupancy at Keppel Bay Tower dipped 6.8ppt q-o-q to 92.5% due to downsizing by a food & beverage tenant. Keppel REIT received one-off income of S$3.0m in 1Q25, primarily comprising a pre-termination fee equivalent to 12 months of rental income from the food & beverage tenant.
Strong rental reversion of 10.6% in 1Q25.
- Read more at SGinvestors.io.
