Keppel REIT Management announced its property income rose 14 percent year-on-year to $94.1 million for 1H 2014 due to improved performance from Ocean Financial Centre and Prudential Tower, as well as additional income from 8 Exhibition Street in Melbourne, which was acquired in August 2013.
Its unaudited results for the Q2 and H1 2014 also show its total return before tax for 1H 2014 stood at $82.9 million, a 10.1 percent increase year-on-year as a result of higher net property income and interest income, as well as lower amortisation and trust expenses.
These were partly offset by lower rental support, as well as higher borrowing costs and management fees due to the enlarged portfolio as compared to 1H 2013.
During the quarter, approximately 93,000 sf of attributable net lettable area (“NLA”) were renewed and leased to tenants.
In addition, about 164,000 sq feet of attributable NLA which were due to expire over the next three years were successfully renewed ahead of time, which will ensure income certainty over a longer term.
Keppel REIT achieved overall tenant retention rate of 87 percent for 1H 2014. Occupancy level for its entire portfolio as at 30 June 2014 stands at 99.4 percent.
Image source: Keppel REIT
Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
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