Keppel REIT recorded a distributable income of $144.6 million for the nine months ended Sept 30, 2025 (9MFY2025), marking a 0.6% year-on-year decline.

Including anniversary distributions, total distributions for the period amounted to $159.6 million, also down 0.6% y-o-y.

Had the manager opted to receive 100% of management fees in cash (instead of the current 25% cash component implemented from FY2025), distributable income would have risen 6.7% y-o-y to $155.3 million.

Property income grew 5.5% y-o-y to $204.5 million, driven by contributions from 255 George Street and improved occupancy at 2 Blue Street. Consequently, net property income (NPI) increased 8.6% y-o-y to $161.3 million.

Share of associates' results rose 15.4% y-o-y to $75.4 million, benefiting from higher rentals and reduced borrowing costs at Marina Bay Financial Centre and One Raffles Quay. Joint venture contributions (from 8 Chifley Square and David Malcolm Justice Centre) remained stable at $17.8 million.

Borrowing costs climbed 5% y-o-y to $68.3 million due to financing for the 255 George Street acquisition in May 2024 and refinancing at prevailing market rates.

Portfolio metrics as of Sept 30 showed committed occupancy at 96.3% (vs. 97.6% in Sept 2024 and 95.9% last quarter), with weighted average lease expiry (WALE) at 4.7 years. Aggregate leverage stood at 42.2%, with an interest coverage ratio of 2.6x.

CEO Chua Hsien Yang highlighted the portfolio’s "outstanding performance," citing 96.3% occupancy and 12.0% rental reversions. He noted easing benchmark rates had reduced the weighted average cost of debt from 3.51% (1HFY2025) to 3.45% (9MFY2025).

Chua also emphasized the REIT’s inaugural pure-play retail investment in Top Ryde City Shopping Centre, citing Australia’s robust retail fundamentals as a driver for long-term returns.

Keppel Reit jumps 0.93% at 11:59 am, Oct 29.