Bookmark & Share
TWO units within the Keppel Group of companies reported second-quarter results yesterday.
Keppel Telecommunications and Transportation (Keppel T&T) posted a second-quarter profit of $10 million - 6.5 per cent down on the same quarter last year - while K-Reit Asia saw distribution per unit for the second quarter rise 21 per cent to 2.64 cents.
Keppel T&T's revenue was hit in the second quarter, falling 15.2 per cent to $29.2 million, as lower revenue from its logistics arm and weaker numbers from the group's associated companies took their toll.
Primarily a logistics company, Keppel has two other divisions - network engineering and investments, such as a 20 per cent stake in telco M1.
For the first half of this year, Keppel T&T's revenue fell 4.5 per cent to $59 million and profit lost 3.9 per cent to $20.2 million.
The company attributed this first-half revenue dip to a switch of focus as it wound down its network engineering business and changed its emphasis to data centre operations. These are difficult times for the logistics industry, Keppel T&T noted, with weak global consumption denting exports.
The group said, however, that it had begun to market co-location space for its data centre in Singapore, which it expects to be completely fitted out by the end of the year.
The company assured investors that it would 'continue to remain vigilant in managing cost and improving efficiency, while seeking opportunities that may emerge'.
Second-quarter earnings per share for Keppel T&T fell by 0.1 cent to 1.8 cents, a drop of 5.3 per cent from the second quarter of last year. The group's net asset value per share of 50 cents as of June 30 this year was unchanged from Dec 31.
Keppel T&T's share price rose by two cents to $1.45 yesterday, an increase of 1.4 per cent.
At K-Reit Asia, the trust's manager attributed the higher distribution per unit to improved rental rates for new and renewed leases.
Net property income for the second quarter was 34 per cent ahead at $12.3 million.
The distribution yield - annualised distribution per unit of 10.59 cents divided by the share price of 97.5 cents on June 30 - works out to around 10.9 per cent.
K-Reit said that improving sentiment was leading to increasing activity in the office leasing market and easing the pace of decline for office rents.
However, demand for office space was still likely to be subdued this year.
Yesterday, K-Reit units ended two cents higher at $1.05.
Search Property News
