The Directors of Keppel REIT Management Limited, as Manager of Keppel REIT, are pleased to announce the unaudited results of Keppel REIT for the half year ended 30 June 2023.
Higher Property Income Underpinned by Resilient Operational Performance
- Property income in 1H 2023 increased 4.7% year-on-year to $114.9 million due to higher rentals achieved and portfolio occupancy.
- 1H 2023 distribution to unitholders was lower year-on-year due mainly to higher property expenses and borrowing costs.
- Maintained high portfolio committed occupancy of 94.9% and positive rental reversion.
- The portfolio occupancy would have been 97.0% if Blue & William, which achieved practical completion on 3 April 2023, is excluded, an increase from 96.3% as at 31 March 2023.
- Blue & William achieved committed occupancy of 37.7% and is receiving a rental guarantee on unlet space for a period of up to three years from the practical completion date.
- The portfolio continued to enjoy long weighted average lease expiry (WALE) of 5.7 years.
- Driven by stable leasing demand for prime office space, committed occupancies for Ocean Financial Centre and One Raffles Quay were at 100%, while Marina Bay Financial Centre and Keppel Bay Tower were above 98.0%.
- Aggregate leverage at 39.2% with 76% of borrowings on fixed rates.
- Purchased and cancelled 19.65 million units in 1H 2023 with 10.15 million units purchased and cancelled in 2Q 2023.