K-REIT distribution per unit up 1% for 2008 to 8.91 cents

K-REIT Asia’s distribution per unit (DPU) climbed one per cent for the 12 months ended December 2008, hitting 8.91 Singapore cents.

Total revenue for the period was up 84.2 per cent to S$23.4 million.

The strong results were attributed to increasing rental rates.

But real estate trust said in a filing to the Singapore Exchange that the current economic downturn is expected to affect its earnings, especially in the office space sector.

Monthly rates for prime office space eased by 12.5 per cent to and average of S$15 per square foot in the fourth quarter of last year.

The REIT said that additional supply coming on stream this year could further depress earnings in this sector in 2009.

Source : Channel NewsAsia – 19 Jan 2009