K-REIT positive on 2012 outlook

K-REIT Asia said on Tuesday that investors will most likely enjoy a higher distribution per unit (DPU) of at least 7.16 Singapore cents by the end of 2012.

K-REIT announced yesterday an 11.1 per cent increase in its DPU for the year ended December to 7.08 Singapore cents.

The DPU for last year includes two weeks’ rental income contribution from Ocean Financial Centre (OFC), which was completely acquired on Dec 14, said Ms Ng Hsueh Ling, CEO of K-REIT Asia Management.

As such, she is confident that the OFC, which is 85 per cent occupied, will bring higher rental income by end-2012 and contribute to a higher DPU. The company also aims to achieve full occupancy for OFC by mid-2013.

Ms Ng also said that there are no concrete plans at the moment to acquire new buildings, but that it may scout for properties in Hong Kong, China, Korea and Japan in the future.

Distributable income for the year rose by 31.9 per cent to about S$113 million due to larger share of profits from BFC Development and One Raffles Quay and higher interest income.

Source : Today – 18 Jan 2012

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