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Keppel REIT Achieves Distributable Income From Operations Of $47.6 Million (US$35.07 MIllion) For 3Q 2020

Keppel REIT Achieves Distributable Income From Operations Of $47.6 Million (US$35.07 MIllion) For 3Q 2020

October 20, 2020 – With effect from the second half of 2020 (2H 2020), Keppel REIT has adopted half‐yearly announcement of financial statements and half‐yearly distributions.

In lieu of its quarterly financial statements, the Manager is providing interim operational updates on the REIT’s performance for 3Q and 9M 2020.

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.

Distributable income from operations for 3Q 2020 excludes any distribution of capital gains, which will be disclosed at the full year 2020 results announcement.

Distributable income for 9M 2020 was stable year‐on‐year at $142.4 million, notwithstanding the absence of income from Bugis Junction Towers, which was divested in November 2019, the impact of COVID‐19 tenant relief measures and the cessation of rental support.

During the quarter, the Manager further optimised Keppel REIT’s capital structure and issued a total of $300 million of perpetual securities3 at a coupon rate of 3.15%. The rate compares favourably to the $150 million of perpetual securities at 4.98%, which will be redeemed in November 2020. The remaining proceeds will be used for various purposes including the financing of investments and asset enhancement works, as well as general working capital purposes and refinancing of borrowings.

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