Keppel REIT 3Q2020 Financial Results have been released on 19th October 2020. Keppel REIT is a pure Grade A office play in Singapore, Australia and Korea.
I am curious on how COVID-19 has impacted the performance of office REITs. In my opinion, the impact to offices is very much dependent on the individual company policies such as working from home whereby businesses may release redundant office working space.
Now, let us take a look at how Keppel REIT has performed.
In 3Q2020, property income increased to S$44.8 million, a 5.7% increase as compared to 3Q2019. Net Property Income improved by 7.2% to S$35.6 million.
Distributable income from operations was $47.6 million for 3Q 2020, a 4.6% increase year-on-year due mainly to the commencement of income contribution from 311 Spencer Street in Melbourne, which achieved practical completion on 9 July 2020, and lower interest expenses.
If you looked at the 9 months financial results, Gross Revenue and Net Property Income (“NPI”) have declined by 1.6% and 0.9% respectively.