Keppel Pacific REIT 3Q Results: Tenancy Rate Still Above 90%, 21% Dividend Yield

Keppel Pacific REIT announced its 3Q results yesterday.

Summary

- Quarterly US$13 million in income available for distribution to shareholders. Expected US$52 million for full year;

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- Interest expense for debt has increased and this resulted in income available for distributions to reduce;

- Leverage Ratio of 39.1% and Interest Coverage Ratio is 3.3 times (all within MAS's limit);

- Occupancy grew from 90.8% to 91.4% in this quarter, but down from the start of year at 91.9%

Forecasted Dividends

With an expectation of US$50-$52 million available for distribution to unitholders, I expect Keppel Pacific to give 4.5 US cents of dividends. This amounts to about 21.9% in dividend yield.

Its expected rental will grow by about 1% and occupancy seems not to be hit due to its blue chip properties. So as of now, it looks like a good REIT to me.