Singapore’s office property market concluded on a positive note in 2H2013 as office rents continued to record positive quarter-on-quarter increases, according to a Knight Frank report.
According to the report, the URA Office Space Rental Index for the Central Region showed that, prior to Q2 2013, office rents in Singapore have been declining at an average pace of 0.3 percent quarter-on-quarter for five consecutive quarters.
However, Knight Frank also noted that sentiments “improved in Q2 2013 as the quarter marked a turning point for the fourth down-cycle of the office property market (since 1993) with the first quarter-on-quarter increase of 0.2 percent.”
The positive momentum continued in 2H2013, with office rents on the uptrend.
Keppel REIT’s distributable income reached S$214 million in fiscal year 2013, up six percent from the previous year and its highest level since listing, according to the manager of the trust.
At the same time, its property income soared by 10.9 percent to S$174.0 million, while net property income climbed by the same percentage, hitting S$138.3 million.
As such, the trust’s distribution per unit (DPU) reached 1.97 cents in Q4 2013, bringing the total DPU to 7.88 cents for financial year 2013.
The manager of the trust also announced that it has completed refinancing all the loans of Keppel REIT due in 2014 and another S$60 million due in 2015. Hence, it has no refinancing requirements in the next 22 months.
Moreover, all of the REIT’s five properties in Singapore reached full occupancy during the period, with committed portfolio occupancy rising by 1.3 percent year-on-year to 99.8 percent.
“Ocean Colours at Ocean Financial Centre is operational and fully leased, and the underground pedestrian network (UPN) now links Ocean Financial Centre directly to the Raffles Place Interchange MRT Station, as well as Keppel REIT’s properties in Marina Bay,” added Keppel REIT Management.
Nikki De Guzman, Junior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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