Keppel REIT reported a 22.8 per cent year-on-year jump in distributable income to S$129.6 million for the half year ended Jun 30, driven by contributions from the newly acquired Top Ryde City Shopping Centre and a higher stake in Marina Bay Financial Centre (MBFC) Tower 3.
Property income, the trust’s top-line indicator, rose 16.7 per cent YoY to S$159.3 million, while net property income increased 13.1 per cent to S$122.5 million. Distributable income from operations (excluding an S$10 million Anniversary Distribution) climbed 25.2 per cent to S$119.6 million. The interim distribution per unit (DPU) came in at 2.61 Singapore cents, down 4.0 per cent from 2.72 cents a year earlier, reflecting a larger unit base.
By segment, net property income attributable to unitholders advanced 13.3 per cent YoY to S$112.1 million, underpinned by the first-time consolidation of Top Ryde City Shopping Centre in Sydney. Share of results from joint ventures surged 37.2 per cent to S$83.8 million, supported by the additional one-third interest in MBFC Tower 3 secured on 31 December 2025 as well as higher rental rates and lower borrowing costs across the associate portfolio.
Leasing momentum remained firm, with more than 1.1 million square feet of space committed during the period, translating into a positive rental reversion of 12.8 per cent. Banking, insurance and financial services tenants accounted for about two-thirds of new and expansion demand, while the technology, media and telecommunications sector contributed just over 10 per cent. Portfolio occupancy stayed high at 96.7 per cent, and the weighted average lease expiry (WALE) stood at 4.5 years, extending to 8.0 years for the top 10 tenants.
Borrowing costs edged up 5.4 per cent to S$48.8 million, though the average cost of debt was contained at 3.27 per cent with 62 per cent of borrowings on fixed rates. Aggregate leverage was 40.0 per cent, and the interest coverage ratio remained comfortable at 2.7 times. Sustainability-linked and green facilities represented 80 per cent of total borrowings, in line with the trust’s decarbonisation focus.
During the half year, all Singapore assets attained BCA Green Mark Platinum Super Low Energy certification, which management believes will underpin leasing demand amid rising tenant emphasis on sustainability. Keppel REIT’s portfolio, valued at S$11.8 billion, is concentrated in Singapore (78.7 per cent by value) with additional exposure to Australia, South Korea and Japan.
Chief executive officer Chua Hsien Yang said the first-half performance was supported by robust leasing activity and the continued “flight-to-quality” trend in the office market. He noted that excluding the 2025 acquisitions, both net property income and joint-venture contributions still grew, underscoring portfolio resilience. Looking ahead, the manager intends to pursue proactive asset management and selective acquisitions in core markets to capture demand for premium, sustainable workspaces, while maintaining a disciplined capital structure amid a higher-for-longer interest-rate environment.