Keppel REIT posted a sharp rise in net profit to S$504.0 million for the year ended Dec 31 2025, a fourfold increase from S$129.7 million a year earlier, lifted mainly by S$339.7 million of fair-value gains on investment properties and higher rental contributions from newly acquired Australian assets.

Revenue, reported as property income, grew 4.9 per cent year-on-year (YoY) to S$274.5 million. Distributable income slipped 1.0 per cent to S$212.4 million, translating to a full-year distribution per unit (DPU) of 5.23 Singapore cents, down from 5.60 cents in FY2024. A final DPU of 0.88 cent will be paid on 25 March 2026 to unitholders on record as of 12 February 2026, following the interim distribution of 0.824 cent per unit paid on 25 November 2025.

On a geographical basis, Singapore continued to deliver the bulk of net property income (NPI), contributing S$262.0 million including rental support, up 2.9 per cent YoY. Australian assets generated S$105.2 million in NPI, a 6.0 per cent YoY increase, aided by maiden contributions from the 50 per cent stake in 255 George Street, Sydney (acquired in May 2024) and the 75 per cent stake in Top Ryde City Shopping Centre, Sydney (acquired in December 2025). South Korea and Japan provided S$12.1 million and S$2.0 million respectively.

Borrowing costs rose 2.0 per cent to S$90.4 million, reflecting higher debt to finance acquisitions and a weighted-average cost of debt of 3.41 per cent. Aggregate leverage increased to 47.9 per cent from 41.2 per cent a year earlier, temporarily elevated by S$890.1 million in equity bridge loans used to fund the additional one-third stake in Marina Bay Financial Centre Tower 3; the loans were repaid in January 2026 using S$886.3 million raised via a preferential offering.

The FY2025 portfolio value climbed 7.8 per cent to S$11.7 billion after the Sydney retail acquisition and positive revaluations in Singapore, South Korea and Japan, partly offset by lower Australian valuations amid softer market conditions. Interest coverage remained stable at 2.6 times.

During the year the trust undertook several capital-management initiatives: it issued S$400 million of subordinated perpetual securities, redeemed S$300 million of earlier hybrids, and completed a S$113 million private placement. The manager also announced an anniversary capital gains distribution of S$20 million, the third tranche of its five-year S$100 million programme.

Looking ahead, the manager pointed to improving occupancy in key markets. CBRE data showed core CBD Grade A office rents in Singapore rising to S$12.30 per square foot per month in 4Q 2025 with occupancy at 95.5 per cent. JLL reported firmer occupancy across Sydney, Melbourne, Perth and Seoul CBDs, while Tokyo’s central five wards saw Grade A occupancy edge up to 99.3 per cent. The manager will continue portfolio recycling, active asset management and prudent capital management to support stable distributions amid evolving interest-rate and economic conditions.