Distributable income for the quarter ended June rose 89.5 per cent to S$49.8 million.

The strong performance is due primarily to the income contribution from the 87.5 per cent interest in Ocean Financial Centre, acquired on December 14, 2011.

K-REIT managers added that strong occupancy for its portfolio of properties in Singapore and Australia also contributed to the better performance.

For the first half, K-REIT has announced a DPU of 3.84 cents, a 92.0 per cent increase on-year. Distributable income for the first half came in at S$98.4 million, a 94.6 per cent jump compared to a year ago.

Unit holders can expect to receive the DPU payment for the first half of 2012 on August 27, 2012.

K-REIT has also announced that it will pay distribution income on a quarterly basis from the financial quarter ending September 30, 2012.

Going forward, K-REIT Asia has maintained a positive economic outlook for Singapore and Australia. It said it will continue to selectively pursue opportunities for strategic acquisitions so as to deliver long-term growth.

Source : Channel NewsAsia – 16 Jul 2012

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In a filing with the Singapore Exchange, K-REIT Asia said the acquisition wil be funded by bank borrowings and the issue of 60 million new units at S$1.17 per unit. The issue price translates to a 15 per cent premium to K-REIT’s Monday closing price of S$1.02 per unit.

The proposed placement is expected to raise around S$70 million.

K-REIT, sponsored by Keppel Land Ltd., said it expects the acquisition to be immediately yield-accretive and raise its distribution to unit holders.

Ocean Financial Centre is a 43-storey premium Grade A office development located at the Raffles Place and Marina Bay precincts.

Ms Ng Hsueh Ling, CEO of K-REIT Asia Management, said: “Since our first acquisition of Ocean Financial Centre in December last year, we have raised the committed occupancy from 80 per cent to over 90 per cent as at end-March.

The enlarged interest will give us full management control of the property and higher tax transparent income, which will increase the DPU to K-REIT Asia’s unit holders.”

“With this acquisition, approximately 93 per cent of K-REIT Asia’s Singapore assets by value will be located in the prime Singapore central business district, strengthening K-REIT Asia’s position as the key premium office landlord in the Raffles Place and Marina Bay precincts.”

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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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The deal sees K-REIT’s aggregate leverage level rise about two percentage points to 41.6 per cent.

OFC is currently 80 per cent occupied with some existing leases at lower-than-existing market rental rates due to the global financial crisis.

To sweeten the deal, Keppel Land has promised rental support of up to S$170 million until end-2016 for K-REIT to fall back on.

K-REIT describes itself as “fortunate” to be offered the price for the acquisition of 87.5 per cent interest in OFC for 99 years along with the support agreed upon.

Keppel Land has a 46.4 per cent stake in K-REIT.

At S$2,600 per square foot, the OFC acquisition is not exactly cheap.

K-REIT Asia chief executive officer Ng Hsueh Ling said: “This is a fresh 99-year lease from the date of completion. This is quite unlike the rest of the other normal sales of sites, where you take about four years to complete the building. (And) what you get – after getting the building stabilised for one year – is probably 94 years or less (lease). Here, you are going to get a fresh 99 years (lease), and the S$2,600 per square foot (or) the S$2.013 billion includes S$170 million of income support.”

Source : Channel NewsAsia – 17 Oct 2011

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Distributable income for the three months ended June rose 19.7 per cent to S$26.3 million.

For the first half, K-REIT announced a DPU of 3.72 cents, a 25.3 per cent increase on-year.

Distributable income for the first half came in at S$50.5 million, a 27 per cent jump compared to a year ago.

This was due mainly to the higher interest income and share of results attributed to the recently-acquired one-third interest in Marina Bay Financial Centre Towers 1 & 2 and Marina Bay Link Mall.

However, net property income for the group in the first half fell 9.4 per cent year on-year to S$29.2 million due mainly to the divestment of Keppel Towers and GE Tower in December 2010.

This was offset by contributions from the 50 per cent interest in George Street in Brisbane and the office tower at King Street in Sydney, which were both acquired in 2010.

Going forward, K-REIT Asia said the healthy economic outlook for Singapore and Australia, coupled with the strong Singapore dollar and Australian dollar, bodes well for the REIT.

Source : Channel NewsAsia – 18 Jul 2011

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This is a 34.6 per cent increase from the same period a year ago.

Distributable income for the group grew by 36.1 per cent year-on-year to S$24.3million due to contributions from newly acquired assets, the Trust said.

This brings the annualised distribution of the REIT to 7.26 cents per unit, an increase of 34.7 per cent.

The commercial property investor said that net property income increased 7.6 per cent year-on-year to S$14.9 million as a result of contributions from the two newly acquired Australian assets; 275 George Street and the office tower at 77 King Street.

K-REIT Asia’s assets in Singapore account for 90 per cent of its total assets under management.

Of these, more than 90 per cent is located in the Marina Bay and Raffles Place downtown precincts.

Going forward, K-REIT Asia says it will focus on retaining its existing tenants, attracting new tenants, and managing leases due for renewal in 2011.

Source : Channel NewsAsia – 14 Apr 2011

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Its trustee RBC Dexia Trust Services entered into a sale and purchase agreement with various parties to acquire levels 26 to 29 of the 30-storey building.

This was at a purchase price of about S$125.1 million inclusive of rental support.

Excluding the rental support, the effective purchase consideration is about S$117 million or S$2,430 per square foot.

The sellers are Innisvale Investments, Maraha, Lima Bintang and Mirabeau Gardens.

The acquisition is expected to be immediately accretive to K-REIT Asia’s distribution per unit.

It says the increased ownership interest will allow greater flexibility in managing the building.

Post-acquisition, K-REIT Asia will own over 223,800 square feet of Grade A net lettable area office space at Prudential Tower.

The committed leases in the property have a weighted average lease expiry of 3.6 years.

The acquisition will be funded entirely by debt.

When completed, it will increase K-REIT Asia’s aggregate leverage ratio from 37 per cent to about 39 per cent.

Source : Channel NewsAsia – 21 Mar 2011

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The commercial property investor said its distributable income for the year amounted to S$85.6 million, up 21.4 per cent from S$70.5 million one year ago.

Net property income grew 37.7 per cent on-year to S$67.3 million.

The trust said net property income expanded as a result of lower property tax expense and income contribution from three acquisitions.

This included the 29 per cent additional interest in Prudential Tower completed in November 2009, the 50 per cent interest in 275 George Street completed in March 2010, and the 77 King Street office tower completed in December 2010.

For the fourth quarter ended December 31, K-REIT Asia said it will distribute 1.71 Singapore cents a unit.

The commercial property investor said its distributable income for the quarter totalled S$23.3 million, up from S$19.4 million a year earlier.

K-REIT said net property income rose 30.2 per cent in the fourth quarter to S$17.5 million.

Going forward, K-REIT Asia said it will remain focused on improving operational and capital efficiencies, on attracting new tenants and retaining existing ones as well as managing the rent reviews and renewals that are due in the next 12 months.

Source : Channel NewsAsia – 20 Jan 2011

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Its unitholders voted for the swap at an extraordinary general meeting on Wednesday.

The sale of Keppel’s one-third interest in Phase One of MBFC to K-REIT aroused some concerns among investors.

They said the MBFC purchase consideration could have been lower.

But K-REIT assured them that future rentals for MBFC will be revised according to market trends to maximise distribution per unit (DPU).

The swap involves a S$573 million sale of Keppel and GE Towers to Keppel Land, while K-REIT will buy Keppel Land’s one-third stake in MBFC’s Phase One for S$1.4 billion.

Ng Hsueh Ling, chief executive officer of K-REIT Asia Management, said: “The average rental expiry for Marina Bay Financial Centre Phase One is about 10.3 years. The rentals will be regularly reviewed and marked to market. We have projected a DPU of 6.68 cents next year. This is an increase from 6.06…”.

Source : Channel NewsAsia – 8 Dec 2010

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Distributable income for the three months ended 30 September rose over 26 percent to S$22.7 million.

K-REIT said this was largely because of higher net property income and lower interest expense.

Meanwhile, net property income for the group increased 42.4 per cent year on year to S$17.5 million.

This rise was largely due to income contribution from the 50 percent interest in 275 George Street and additional 29 percent interest in Prudential Tower.

K-REIT Asia believes its portfolio is well-positioned to take advantage of an improving office sector, which will be riding on a wider economic recovery.

On Monday, it closed unchanged at S$1.37 on the SGX.

Source : Channel NewsAsia – 18 Oct 2010

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