Keppel REIT’s Q3 2022 in Line; Rewarding Unitholders With SGD 100 Million Capital Distribution

Keppel REIT‘s third-quarter 2022 distributable income of SGD 165.4 million was in line with our expectation as the trust continues to benefit from the strong Singapore central business district, or CBD, Grade A office market. The trust’s operating metrics remain robust, with portfolio occupancy improving to 96.8% this quarter from 95.5% in the previous quarter and tenant retention rate remaining high at 82%. On its rental reversion, management highlighted that they would have achieved an extremely strong positive 14% rental reversion for this quarter had they not brought forward the renewal of a large lease expansion, bringing rental reversions down to a positive 9.7% (still a huge positive in our view).