Keppel Reit H2 DPU down 10.4% at S$0.0251 amid enlarged unit base, higher NPI

[SINGAPORE] The manager of Keppel Reit posted a distribution per unit (DPU) of S$0.0251 for the second half ended Dec 31, 2025, down 10.4 per cent from S$0.028 in the year-ago period.

This brought its full-year DPU to S$0.0523, 6.6 per cent lower on the year from S$0.056. Keppel Reit’s distribution yield for FY2025 stood at 5.4 per cent, a one percentage point decline from 6.4 per cent in the prior year.

The lower DPU for the latest distribution period, from Oct 17 to Dec 31, 2025, was attributed to an enlarged unit base, said the manager in a bourse filing on Wednesday (Feb 4).

The decline was also due to the absence of contributions from two acquisitions completed in the latter half of December 2025, for which full contributions will commence in 2026.

Distributable income from operations for the six months stood at S$96.9 million, down 0.8 per cent from S$97.6 million in H2 FY2024. For FY2025, distributable income fell 1.1 per cent year on year to S$192.4 million, from S$194.5 million for FY2024.

The distributable income for Q4 is attributable to units in issue as at Dec 31, 2025, and new units issued on Jan 19, 2026, pursuant to the real estate investment trust’s (Reit) preferential offering launched in December, said the manager.

The distribution will be paid on Mar 25, after a record date of Feb 12.

H2 net property income (NPI) rose 2.4 per cent year on year to S$107.7 million from S$105.1 million. For the full year, NPI rose 6.9 per cent to S$215.9 million from S$201.9 million in the year-ago period.

Property income for H2 increased marginally by 1.1 per cent on the year to S$138 million from S$136.5 million. For the full year, this rose 4.9 per cent to S$274.5 million from S$261.6 million.

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The increase in NPI and property income was due to higher contributions from Keppel Bay Tower, 2 Blue Street and 255 George Street, which was acquired on May 9, 2024, as well as Top Ryde City Shopping Centre, which was acquired on Dec 19, 2025. This was partially offset by lower contributions from Victoria Police Centre and Pinnacle Office Park.

The Reit’s share of results of associates and joint ventures rose 13.3 per cent year on year to $124.6 million for FY2025, from S$110 million, amid higher rentals at the Singapore assets and lower borrowing costs.

As at Dec 31, 2025, the Reit’s aggregate leverage was 47.9 per cent. The manager noted that its debt maturity profile remained “staggered”, with a weighted average term to maturity of 2.4 years.

For FY2025, its weighted average cost of debt was 3.41 per cent per annum, with an interest coverage ratio of 2.6 times.

Units of Keppel Reit closed flat on Tuesday at S$0.98.