Keppel Reit Reports 7.2% Increase in Q1 Net Property Income to S$48.2 Million

Keppel Reit has recorded a net property income (NPI) of S$48.2 million for the first quarter ending March 31, 2024, marking a 7.2% rise from S$45 million in Q1 FY2023.

The increase in NPI was primarily driven by higher rentals and contributions from 2 Blue Street in Sydney, according to the Reit's manager.

Property income also saw a 6.3% uptick to S$61.3 million from S$57.7 million in the previous year.

NPI attributable to unitholders grew by 7.1% to S$43.4 million.

The strong demand for prime office space contributed to the Reit's higher NPI.

Keppel Reit's acquisition of a 50% interest in 255 George Street, a freehold Grade A office building in Sydney’s Central Business District, is expected to provide a first-year yield of more than 6% and a distribution per unit accretion of 1.4% on a pro forma basis.

Distributable income remained flat at S$50.2 million, with the Reit distributing a total of S$100 million of anniversary distribution over a five-year period on a semi-annual basis.

The Reit's portfolio occupancy was 96.4%, with a portfolio weighted average lease expiry of 4.6 years as of Mar 31, based on committed attributable gross rent.