Keppel Reit H2 2024 DPU falls 3.4 per cent to S$0.028 on lower distributable income

THE manager of Keppel real estate investment trust (Reit) reported a 3.4 per cent fall in second-half 2024 distribution per unit to S$0.028, from S$0.029 in the same corresponding period in 2023.

In a regulatory filing on Monday (Jan 27) the Reit reported a 13.6 per cent increase in H2 2024 net property income to S$105.1 million from S$92.5 million a year prior. The increase was attributed to higher property income from T Tower, KR Ginza II, 2 Blue Street and 255 George Street. This was partially offset by lower net property income from Ocean Financial Centre and 8 Exhibition Street due to higher property tax and a lower one-off income for 8 Exhibition Street.

Despite the increase in property income, distribution income for H2 2024 fell 2.1 per cent to S$97.6 million from S$99.7 million in H2 2023. This was driven by lower fair value gain on investment properties in H2 2024 compared with H2 2023, as well as lower rental support, net foreign exchange differences, higher management fees and higher borrowing costs.

Including the anniversary distribution, distributable income for H2 2024 would have fallen 1.9 per cent to S$107.6 million from S$109.7 million in H2 2023.

For the full 2024 fiscal year, net property income grew 10.7 per cent to S$201.9 million from S$182.4 million in FY2023, driven by the same factors in H2 2024. Distributable income for FY2024 fell 2.1 per cent to S$194.5 million from S$198.7 million in FY 2023. Including the anniversary distribution, FY2024 distributable income fell 1.9 per cent to S$214.5 million from S$218.7 million.

Distribution per unit for FY2024 fell 3.4 per cent to S$0.056 from S$0.058 in FY2023.

“Looking ahead, our focus remains on proactive asset management to capitalise on the flight-to-quality trend, and we continue to be disciplined in capital management to deliver sustainable long-term total return to the unitholders,” said Chua Hsien Yang, CEO of the manager.