Keppel REIT’s 4Q2017 results showed a growth in property income and net property income, but due to a rising number of units and decline in distribution to unitholders, distribution per unit fell from 1.48 SG cents to 1.43 SG cents.
Looking into the financial statements and comparing 4Q2016 against 4Q2017:
Property income rose from S$40m to S$44.4m. This is good. The increase is due primarily to an improvement in other income. Property expenses fell from S$8.6m to S$8.1m. This is marginal but good. Other income fell from S$41.9m to S$32.1m. This is not good. The decline is primarily due to lower rental support (In note 2: Keppel REIT mention that the rental support drawn down for Ocean Financial Centre and Marina Bay Financial Tower 3 for FY2017 are S$2.525m and S$10.3m compared to S$3.946m and S$12.8m for FY2016), negative impact of foreign exchange differences and negative impact of net change ......
