SINGAPORE – Keppel Reit’s distribution per unit (DPU) slipped 1.7 per cent to 2.9 cents for the second half of financial year 2023, as compared with 2.95 cents a year ago.

Gross rent for the period rose 7.2 per cent to $111.2 million, driving net property income to increase 7 per cent to $92.5 million, despite higher property expenses.

This was mainly due to higher rentals and occupancy for the Singapore properties, the Reit manager said on Jan 30.

Distributable income from operations registered a 0.7 per cent fall at $99.7 million for the half year.

The decrease was mainly attributable to lower interest income due mainly to repayment of advances by an associate. 

The distribution will be paid out on March 15, after the record date on Feb 7.

For the whole financial year, DPU was 2 per cent lower at 5.8 cents. Distributable income from operations dropped 5.8 per cent to $198.7 million.

The manager noted that the lower distribution to unit holders was mainly due to higher borrowing costs at $67 million, up 16 per cent from financial year 2022.

Gross rent for the year rose 6 per cent to $220.2 million, leading net property income to increase 3.7 per cent to $182.4 million.

Units of Keppel Reit closed two cents higher at 91.5 cents on Jan 30. THE BUSINESS TIMES