Keppel REIT (K71U) Investor 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 (DPU) declined 3.4% to 5.60 cents due to higher borrowing costs.

• Portfolio committed occupancy reached 97.9%, with rental reversion at +13.2%.

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

• Weighted average lease expiry (WALE) for the portfolio was 4.7 years, with top 10 tenants' WALE at 9.0 years.

Financial results

• Net property income attributable to unitholders increased 11.7% to $182.9m.

• Distributable income from operations decreased 2.1% to $194.5m, mainly due to higher borrowing costs.

• Borrowing costs rose 32.2% to $88.5m following new acquisitions and refinancing.

• Adjusted NAV per unit declined 3.9% to $1.24.

• Interest coverage ratio was 2.5x, with sustainability-focused funding making up 82% of total borrowings.

Portfolio review

• Portfolio value stood at $9.5b, diversified across Singapore (77.9%), Australia (18.3%), South Korea (2.9%), and Japan (0.9%).

• Singapore assets maintained high occupancy and contributed 69.1% of attributable NPI.

• Australia portfolio saw higher NPI from new assets, offset by currency effects.

• Major tenants include State of Victoria, DBS, Aristocrat Technologies, and government agencies.

• Top 10 tenants accounted for 31.3% of gross rent and 35.9% of committed NLA.