KEPPEL Reit : K71U 0% posted net property income (NPI) of S$48.2 million for the first quarter ended Mar 31, 2024, up 7.2 per cent from S$45 million in Q1 FY2023.

This was mainly due to higher rentals and contributions from 2 Blue Street in Sydney, said the real estate investment trust’s (Reit) manager in a business update on Tuesday (Apr 23). 

This brought property income to S$61.3 million, up 6.3 per cent from S$57.7 million the year before. 

NPI attributable to unitholders also grew 7.1 per cent to S$43.4 million, from S$40.5 million.

The Reit’s higher NPI for the quarter was partly attributed to the strong demand for prime office space. 

The manager added that Keppel Reit’s acquisition of a 50 per cent interest in 255 George Street, a freehold Grade A office building in Sydney’s Central Business District, will provide a first-year yield of more than 6 per cent. Its distribution per unit accretion would stand at 1.4 per cent on a pro forma basis, assuming the acquisition was completed on Jan 1, 2023.

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The Reit’s distributable income for the quarter stood flat at S$50.2 million.

The manager announced in 2022 that it will distribute a total of S$100 million of anniversary distribution over a five-year period on a semi-annual basis. Including its anniversary distribution, it also remained flat year on year at S$55.2 million due to higher borrowing costs.

The Reit’s portfolio occupancy was 96.4 per cent, and its portfolio weighted average lease expiry stood at 4.6 years as at Mar 31, based on committed attributable gross rent.

Units of Keppel Reit closed 1.2 per cent or S$0.01 higher at S$0.85 on Monday.