Keppel REIT (K71U) AGM 2025 presentation summary

FY 2024 key highlights

• Property income rose 12.2% year-on-year to $261.6m, with net property income up 10.7% to $201.9m.

• Distribution per unit decreased 3.4% to 5.60 cents due to higher borrowing costs.

• Portfolio committed occupancy reached 97.9%, with a strong rental reversion of +13.2%.

• Weighted average lease expiry (WALE) stands at 4.7 years, with top 10 tenants' WALE at 9.0 years.

• Aggregate leverage is 41.2%, with 69% of borrowings on fixed rates and an all-in interest rate of 3.40%.

Financial performance and capital management

• Growth in property income and NPI driven by strong performance at key assets and new acquisitions.

• Distributable income and DPU declined mainly due to increased borrowing costs from acquisitions and refinancing.

• Manager will receive 25% of management fees in cash and the rest in units from FY 2025.

• Sustainability-focused funding constitutes 82% of total borrowings, with green notes issued.

• Interest coverage ratio is 2.5x, with a weighted average debt maturity of 2.5 years.

Portfolio review and strategy

• Portfolio value stands at $9.5b, diversified across Singapore, Australia, South Korea, and Japan.

• Recent acquisitions include 255 George Street (Sydney) and expansion into new markets.

• Committed occupancy rates remain high across all regions, supporting income stability.

• Lease expiry profile is well-staggered, with significant expiries spread over several years.

• Tenant base is diversified, with top 10 tenants contributing 31.3% of gross rent.