K-Reit distributable income 17.5% higher than forecast
KEPPEL Land’s real estate investment trust, K-Reit Asia, announced its maiden financial results yesterday and its distributable income of $2.8 million was 17.5 per cent higher than its forecast.
K-Reit was listed on the Singapore Exchange on April 28 following a distribution in specie of units to KepLand shareholders.
Unitholders will be entitled to a distribution per unit (DPU) of 1.16 cents for the period from April 26 to June 30. The annualised DPU of 6.42 cents is 18 per cent above its forecast DPU of 5.43 cents for the period from Jan 1 to Dec 31, 2006.
The Reit manager, K-Reit Asia Management, attributed the performance to higher rental income from its property portfolio as a result of higher occupancy and achieved rental rates, as well as lower property expenses.
Net property income for the period came to $4.3 million.
In a statement yesterday, the Reit manager said: ‘With limited supply over the next few years and shrinkage in existing inventory, strong demand for prime office space has spilled over to the broader market.’
K-Reit has an initial portfolio worth $630.7 million which includes Keppel Towers, GE Tower, Bugis Junction Towers and 44 per cent of the strata area of Prudential Tower. Committed occupancy reached 98.4 per cent as at end-June, compared to 89 per cent as at Sept 30, 2005.
The Reit manager said that it hopes to benefit from the upward rental cycle as a total of 37.4 per cent of lettable area will be up for renewal in 2007 and 2008, with another 23.6 per cent due for renewal in 2009.
Source : Business Times - 21 Jul 2006
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