Thursday 19 October 2023

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

Keppel Pacific REIT announced its 3Q results yesterday.


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


- 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.


  1. What do you think the full year dpu in 2024 will be?

    1. My expectations is 4 cents dpu for full year of 2024 even with elevated interest. This is because the REIT hedges a lot of its interest and has high proportion of fixed rate loans

  2. "Microsoft and Amazon Increasing its Office Space in Keppel Pacific Proeprties" -- You mis-read. Microsoft and Amazon are building their office in corresponding neighbourhood. They are not renting from KORE.