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Keppel REIT saw its distribution per unit (DPU) slide 2.9 percent to 1.36 in Q3 2018 from 1.40 over the same period last year.
Gross revenue and net property income fell 9.4 percent and 11 percent to $36.7 million and $28 million, respectively.
The drop was mainly due to lower contributions from 275 George Street, Ocean Financial Centre and 8 Exhibition Street, which was partially offset by higher contributions from Bugis Junction Towers.
For the nine months ended 30 September, Keppel REIT’s DPU fell 1.6 percent to 4.20, while gross revenue and net property income rose 6.6 percent and 8.1 percent to $128 million and $103 million, respectively.
Looking ahead, the REIT’s manager said it will “remain focused on driving operational excellence to navigate the volatile macro‐economic environment, while capitalising on the improving office market to mitigate the impact of recent years’ declining rentals”.
Keppel REIT cited CBRE data which showed that office occupancy in Singapore’s core central business district climbed to 94.6 percent in September from 94.1 percent in June, while average Grade-A rents rose to $10.45 psf pm from $10.10 psf pm previously.
The manager added that it will maintain a prudent capital management strategy to optimise the REIT’s performance amidst rising interest rates.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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