Latest news with #Reit
Business Times
6 hours ago
- Business
- Business Times
Aims Apac Reit posts 0.4% higher Q1 DPU of S$0.0228 amid stable operational performance
[SINGAPORE] Aims Apac Reit reported on Thursday (Jul 31) a 0.4 per cent increase in distribution per unit (DPU) of S$0.0228 for Q1 FY2026, from S$0.0227 in the same year-ago period. The distribution will be paid out on Sep 24, with its record date on Aug 11. Distributions to unitholders also grew 1.1 per cent for the period to S$18.6 million, from S$18.4 million in the corresponding period a year prior. Revenue stood at S$47.4 million, inching up 0.2 per cent from S$47.3 million in Q1 FY2025. Net property income fell slightly by 1 per cent year on year to S$34.1 million, however, from S$34.4 million the same period a year before. This was mainly due to temporary vacancy arising from the ongoing asset enhancement initiatives (AEIs) at 7 Clementi Loop compared to the same period last year. The manager of the Reit in Q1 FY2026 executed seven new and 25 renewal leases, amounting to 67,941 square metres (sq m), which represents 8.8 per cent of the portfolio's net lettable area. About 119,518 sq m is due for expiry in Q1, of which 61 per cent is in the logistics and warehouse segment. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Positive rental reversions of 5.4 per cent were achieved, primarily driven by the logistics and warehouse segment, which saw a rental reversion of 7.3 per cent. Russell Ng, chief executive of the manager, said: 'We are pleased to deliver a stable operational and financial performance for the quarter while progressing on our portfolio rejuvenation strategy. We have completed one of two ongoing AEIs which will uplift asset quality, rental income and value. Furthermore, the completed divestment of 3 Toh Tuck Link at a premium will enable the recycling of capital into new growth initiatives.' George Wang, chairman of the manager, also added that while Aims Apac Reit's focus on the Singapore and Australia market has positioned them favourably compared to other markets, amid wider geopolitical headwinds arising from the US tariff trade policies and conflicts in the Middle East and Ukraine, along with rising US debt and inflationary pressures creating a highly uncertain and volatile global environment. Units in Aims Apac Reit closed 1.5 per cent or S$0.02 higher at S$1.40 on Wednesday.
Mint
13 hours ago
- Business
- Mint
IPO-bound Knowledge Realty Trust bets on high GCC demand, eyes acquisitions
BENGALURU : Knowledge Realty Trust (KRT), a real estate investment trust (Reit) that is set to launch its initial public offering (IPO) on 5 August, has seen high demand from global capability centres (GCCs), and is eyeing third-party acquisitions for growth, senior company officials said on Wednesday. The KRT Reit, sponsored by Bengaluru-based developer Sattva Developers and BREP Asia SG L&T Holding, a Blackstone portfolio company, will raise ₹4,800 crore through the IPO. It has already concluded a pre-IPO round in June, raising ₹1,400 crore. KRT has fixed the price band for the issue at ₹95-100 per unit. The minimum bid size is ₹15,000, and the issue closes on 7 August. The entire proceeds from the pre-IPO and IPO will be used for repayment of debt, which will then stand reduced to ₹12,000 crore. Also Read: DLF sets foot in Mumbai with maiden project 'Post debt repayment of ₹6,200 crore, we will have enough dry powder to make third-party acquisitions from other developers," Shirish Godbole, chief executive officer, KRT, told Mint. Tenant mix 'The key differentiator in the KRT Reit is the well-located asset profile. Around 29% of our portfolio is dedicated to front office tenants. The Reit business is far more predictable today, with swelling occupancy and high demand from GCCs that have worked in their favour," Godbole added. KRT will be Asia's second-largest Reit by size and India's largest by gross asset value (around ₹62,000 crore) and net operating income, owning 46.3 million sq ft of office space across 29 assets in six cities - Mumbai, Bengaluru, Hyderabad, Chennai, Gurugram, and GIFT City, Ahmedabad. Global capability centres are in-house technology hubs set up by multinational corporations for critical services such as HR, and finance functions, IT support and maintenance, as well as for research and development. Around 45% of the rental income in KRT's portfolio comes from GCCs. Some of KRT's prominent GCC tenants include Cisco, Google, Amazon, Novartis and JP Morgan. Also Read: DLF sells all 416 homes for over ₹2,300 crore in new Mumbai project As GCCs double down, IT services companies, a dominant tenant base for office space in India, are recalibrating their real estate footprint. Less than 5% of KRT's portfolio exposure is towards IT services companies. Growth outlook Reits have faced their share of challenges in recent years, many of them pandemic-induced. But with the office market turning around in terms of higher leasing and improved occupancy levels, they are gaining more acceptance. Quaiser Parvez, chief operating officer, KRT, said, 'The KRT portfolio has 91% occupancy. We have the lowest loan-to-value ratio (LTV) among all the listed (Reit) peers, which gives us room and the flexibility to grow and acquire new assets." LTV is the debt borrowed compared to the underlying asset value, and is an indicator of financial risk. As part of its inorganic growth, KRT also has 6.7 million sq ft of right of first offer (ROFO) assets, which are currently under development by Sattva, that can be added to the portfolio from 2027-28 onwards. A ROFO is a pre-emptive right granted to a party, giving them the the first opportunity to purchase an asset. 'This is a pivotal moment for India's office and capital markets. Our partnership with Blackstone has been transformative—not just in scale, but in demonstrating how the right collaboration can create something truly exceptional while making premium office real estate accessible to all investors," Bijay Agarwal, managing director, Sattva, said. Also Read: Blackstone-backed Knowledge Realty Trust's ₹4,800-cr IPO to open on 5 August KRT would be the fifth listed Reit in the country, after the three office Reits - Embassy REIT, Mindspace REIT and Brookfield India REIT - and the only retail-focused Nexus Select Trust. Blackstone has participated in three of the four Reits listed in India. This is the 20th year of Blackstone's operations in the country, across its private equity and real estate businesses. US-based Blackstone, the world's largest alternative asset manager, is also the largest office space owner in India.
Business Times
a day ago
- Business
- Business Times
Keppel Reit H1 DPU falls by 2.9% to S$0.0272
[SINGAPORE] Keppel Real Estate Investment Trust (Reit) on Wednesday (Jul 30) reported a 2.9 per cent decline in its distribution per unit (DPU) for the first half of the 2025 financial year to S$0.0272, from S$0.0280 in the corresponding year-ago period. Distributable income from operations fell by 1.4 per cent to S$95.5 million for the period from S$96.9 million in H1 FY2024. It also highlighted that distributable income, including the anniversary distribution for H1 fell by 1.3 per cent year on year to S$105.5 million, in light of the payment of 25 per cent of management fees in cash. The distribution will be paid out on Sep 15, with its record date on Aug 7. Property income rose 9.1 per cent to S$136.5 million from S$125.1 million in the same period a year prior. This is largely due to contribution from assets in Sydney, Australia, namely 255 George Street acquired in May 2024, and higher occupancy at 2 Blue Street, said the Reit manager in a bourse filing on Wednesday. Net property income (NPI) increased by 11.8 per cent year on year to $108.3 million for H1, from S$96.8 million in the corresponding period a year before. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Gearing stood at 41.7 per cent as at Jun 30, with 63 per cent of its total borrowings on fixed rates. The weighted average cost of debt was 3.51 per cent per annum for H1, and an interest coverage ratio of 2.6 times. There are no significant borrowings maturing for the remainder of 2025, according to the manager of the Reit. Portfolio weighted average lease expiry was 4.8 years, as compared with 4.7 years as at Mar 31. The trust's S$9.4 billion portfolio comprises commercial properties located in the key business districts of South Korea, Japan, Australia (which makes up 17.5 per cent of its portfolio) and Singapore (78.6 per cent of its whole portfolio). In particular, the manager of the Reit observed improved performance in the Singapore portfolio due to higher rentals, and emphasised that contributions from 255 George Street and increased occupancy at 2 Blue Street, offset partially by a stronger Singapore dollar, led to a higher NPI. Chua Hsien Yang, chief executive of the manager, said: 'We made good progress in backfilling vacancies at Ocean Financial Centre in Singapore and 255 George Street in Sydney, Australia, increasing their occupancies to 96.1 per cent and 99 per cent, respectively. In addition, we refinanced the majority of loans maturing in 2025 at lower margins.' He added: 'Looking ahead, we remain focused on driving asset performance and maintaining disciplined capital management, while navigating evolving market conditions with agility.' Units of Keppel Reit closed 1.1 per cent or S$0.01 up at S$0.95 on Tuesday.
Business Times
2 days ago
- Business
- Business Times
Starhill Global Reit H2 NPI flat at S$74.5 million
[SINGAPORE] The manager of (real estate investment trust) posted a net property income (NPI) of S$74.5 million for the second half ended Jun 30, 2025, flat compared to the year-ago period. The manager, in a bourse filing on Tuesday (Jul 29) attributed the lack of growth primarily to higher contributions from Singapore retail properties and net movement in foreign currencies, which were largely offset by loss of contribution from certain divested strata office lots in Wisma Atria and rental arrears provision for its China property. Starhill Global Reit's Singapore retail portfolio comprises interests in Wisma Atria and Ngee Ann City in Orchard Road. It also owns assets in Japan. Excluding the effects of divestment, its H2 FY24/25 NPI would have increased 0.6 per cent year on year. Its revenue inched up 0.7 per cent to S$95.8 million from S$95.2 million previously. Income available for distribution for H2 FY24/25 stood at S$44.5 million, an increase of 4 per cent from S$42.8 million in the year-ago period. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up The rise was mainly attributed to higher NPI, lower tax expenses and net finance costs, retention of part of the net divestment proceeds in the current period, as well as the one-off leasing commission in relation to its Toshin master lease renewal in the previous corresponding period. This was partially offset by higher legal and professional fees. The Reit's manager will retain about S$2 million of income available for distribution for H2 FY24/25 for working capital requirements. The Reit also posted a flat distribution per unit (DPU) of S$0.0185 in the second half ended Jun 30, 2025. For the full year, DPU was 0.6 per cent higher at S$0.0365. This represented an annual yield of 7.2 per cent, based on the closing unit price of S$0.51 as at Jun 30, 2025. The distribution reinvestment plan will apply for the H2 FY24/25 distribution, with the issue price of new units announced on or around Aug 6. Unitholders can expect to receive their H2 FY24/25 DPU on Sep 24. Improved operational performance The Reit's full-year NPI rose 0.8 per cent to S$150.2 million, mainly due to higher contributions from Singapore retail properties and Perth properties, as well as the appreciation of the Malaysian ringgit against the Singapore dollar. This was partially offset by loss of contribution from the divestment of the Wisma Atria office strata units, rental arrears provision for China Property, higher operating expenses and the depreciation of Australian dollar against the Singapore dollar. Revenue for the full year was up 1.2 per cent on year to S$192.1 million for FY2024/25, and income available for distribution for the period grew by 3.7 per cent to S$87.8 million. The group's portfolio valuation remained stable at about S$2.8 billion. The figure would have reflected a 0.9 per cent year-on-year increase if not for the divested strata office lots in Wisma Atria in FY24/25. The gains were mainly due to the upward revaluation of its Ngee Ann City property, The Starhill, and Australian properties in June 2025, partially offset by net foreign currency movements. Ho Sing, chief executive officer of Starhill Global Reit's manager, said the partial divestment of its office portfolio enabled the Reit manager to demonstrate the asset's value, strengthen financials and further improve liquidity amid ongoing market uncertainty. 'The improved operational performance for the year was mainly driven by our Singapore portfolio, which achieved full committed occupancy and delivered positive rental reversions,' he added. Notably, at Wisma Atria, shopper traffic climbed 5 per cent year on year, although tenant sales declined 5.2 per cent. Starhill Global Reit owns the majority of units at the mall. The Reit also renewed its current master lease at Ngee Ann City Property with Toshin ahead of expiry. Gearing remained stable at 36 per cent, with a weighted average debt maturity of 3.1 years. Units of Starhill Global Reit closed flat at S$0.55 on Tuesday.
Business Times
2 days ago
- Business
- Business Times
Keppel Pacific Oak US Reit H1 distributable income falls 16.2% to US$19.9 million
[SINGAPORE] Keppel Pacific Oak US Reit (Kore) posted a distributable income of US$19.9 million for its first half of the financial year ended Jun 30, down 16.2 per cent from US$23.8 million in the previous corresponding period. The US office-focused real estate investment trust (Reit) blamed lower cash net property income (NPI) and higher other trust expenses for the drop in distributable income, said the manager in a business update on Tuesday (Jul 29). It posted a positive 0.5 per cent rental reversion for the half. No distribution was declared. The manager had previously said it would suspend distributions for two years from H2 FY2023 to H2 FY2025 as part of recapitalisation plans to address capital needs and leverage concerns. For the first half of FY2025, NPI was at US$40.7 million, down 3.2 per cent from US$42 million before. Gross revenue rose 0.2 per cent to US$74.6 million. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The weighted average term to maturity of its debt was 2.0 years, said the manager. Additionally, its full portfolio weighted average lease expiry by net lettable area was 3.5 years. Kore's performance had been sliding for some time with the challenging environment faced by the US office market. It posted a 19.3 per cent drop in distributable income in the first quarter of 2025 compared to the first quarter in 2024. In 2024, for H2 and the full year, its distributable income tumbled due to lower cash NPI and higher financing costs.
