Keppel REIT (K71U) H1 2025 earnings summary

Executive summary

• Net property income rose 11.8% year-over-year to $108.3 million, driven by operational strength, new acquisitions such as 255 George Street, and higher occupancy.

• Portfolio value stood at $9.4 billion as of 30 June 2025, with assets across Singapore, Australia, South Korea, and Japan.

• Portfolio occupancy remained high at 95.9%, with strong rental reversions and tenant diversification.

• Distributable income from operations was $95.5 million, down 1.4% year-over-year, but would have increased 5.9% if management fees were paid entirely in units.

• Distribution per unit for 1H 2025 was 2.72 cents.

Financial highlights

• Property income rose 9.1% year-over-year to $136.5 million for 1H 2025.

• Profit for the period attributable to unitholders surged 341.8% to $76.0 million; total profit for the period was $88.8 million, up 181.1%.

• Share of results from associates increased 13.6% year-over-year, mainly from higher rentals and lower borrowing costs.

• DPU for 1H 2025 was 2.72 cents, a 2.9% decrease year-over-year; annualized DPU yield was 6.1%.

• Net asset value per unit decreased to $1.21–$1.23 from $1.24–$1.27 at end-2024.

Outlook and guidance

• Borrowing costs are expected to decline in H2 2025 as benchmark rates soften and refinancing at lower margins takes effect.

• No significant borrowings maturing for the remainder of 2025.

• Rental rates in Singapore CBD expected to continue upward trend, supported by limited supply and strong demand.

• Focus remains on portfolio optimisation, proactive leasing, sustainability initiatives, and disciplined capital management.

• Double-digit rental reversions remain the KPI target for the year.