Keppel REIT on Tuesday reported a 10.5 percent drop in third-quarter distributable income, hurt in part by the absence of gain on divestment of 77 King Street last year.
Keppel REIT, which invests in commercial real estate and real estate-related assets in Singapore and pan-Asia, said distributable income fell to S$47 million in the three months ended September 30 from S$52.4 million last year.
Net property income was steady at S$31.7 million in the quarter.
Aggregate leverage remained stable quarter-on-quarter at 38.8 percent.
During the quarter, Keppel REIT commenced construction of its newly acquired premium office tower at 311 Spencer Street, the company said in a regulatory filing.
As at the end of third quarter, committed occupancy of the REIT's portfolio in Singapore remained high at 99.6 percent, above Singapore's core CBD average occupancy of 92.5 percent.
"Over the long term, the Manager remains focused on achieving stable and sustainable income for Unitholders," the company said.
"The Manager will maintain its proactive tenant and lease management strategy to optimise value from the REIT's quality portfolio of office buildings."
As at 30 September 2017, Keppel REIT had assets under management of approximately $8.5 billion comprising interests in nine premium office assets located in the central business districts of Singapore, as well as key Australian cities of Sydney, Melbourne, Brisbane and Perth.
The company declared a distribution per unit of 1.40 cents.
Shares in Keppel REIT ended up 0.8 percent to S$1.2 on the Singapore Exchange.