Keppel REIT FY 2025 Financial Results: Robust Asset Growth and Strategic Acquisitions

Keppel REIT released its financial results for the second half and full year ended 31 December 2025, demonstrating a strong operating performance, strategic acquisitions, and continued portfolio optimization across prime commercial assets in Asia Pacific. This analysis summarizes key metrics, trends, corporate actions, and outlook for investors.

Key Financial Metrics and Performance Table

Dividend Details:

• FY 2025 DPU: 5.23 cents (down 6.6% YoY)
• Distribution Timetable: Ex-Date 11 Feb 2026, Payment Date 25 Mar 2026

Historical Performance and Trends

Keppel REIT continues to deliver stable and growing property income and NPI, primarily driven by higher occupancy rates and positive rental reversions in Singapore and Australia. The share of results from associates and joint ventures has also increased, reflecting better asset performance and lower borrowing costs due to tapering interest rates.

Aggregate leverage rose to 47.9% at end-2025, but would be 40.4% if proceeds from the Preferential Offering (used to repay acquisition bridge loans) were received by year-end. The REIT maintains a healthy interest coverage ratio of 2.6x, and 53% of borrowings are on fixed rates, reducing interest rate risk.

Strategic Acquisitions and Portfolio Expansion

• Singapore: Acquisition of an additional one-third interest in Marina Bay Financial Centre Tower 3 on 31 Dec 2025.
• Australia: Acquisition of a 75% interest in Top Ryde City Shopping Centre, Sydney on 19 Dec 2025.

These acquisitions contributed to a substantial increase in deposited properties (+22.8% YoY) and total assets (+18.0% YoY) for the year. The portfolio now stands at S\$11.7 billion, anchored by prime assets in Singapore (68.6% of NPI), Australia (27.7%), South Korea (3.2%), and Japan (0.5%).

Asset Valuations and Revaluations

Significant asset revaluations occurred in FY 2025, particularly in Singapore:

• Singapore portfolio valuation: S\$9,296.9 million (+25.2% YoY)
• Australia portfolio valuation: S\$2,005.5 million (+15.2% YoY)
• North Asia portfolio valuation: S\$354.7 million (-3.5% YoY)
• Total portfolio valuation: S\$11,657.1 million (+22.3% YoY)

Valuation uplift was mainly due to new acquisitions and positive asset performance, though some Australian and North Asian assets saw currency-related declines.

Portfolio Metrics and Leasing Performance

• High portfolio committed occupancy: 96.7% (up from 96.3% in Sep 2025)
• Long portfolio WALE: 4.4 years
• Rental reversion: +11.5% for FY 2025
• Retention rate: 74.1%
• Tenant base: 694 tenants, with the top 10 contributing 29.5% of committed gross rent

Leasing demand was robust, led by banking, financial services, technology, and retail sectors. The lease expiry profile is well-staggered, reducing risks of large vacancy spikes.

ESG and Sustainability Initiatives

• All properties (except Top Ryde City acquisition) are green certified.
• 79% of debt is sustainability-focused funding.
• Multiple assets achieved BCA Green Mark Platinum Super Low Energy certification.
• 8 properties fully powered by renewable energy; 5 are carbon neutral.

Keppel REIT maintained strong ESG ratings, including MSCI ESG Rating ‘A’ and other global benchmarks.

Capital Management and Fundraising

• Preferential Offering and Private Placement in 2H 2025 raised significant capital for acquisitions and debt repayment.
• Sustainability-linked funding now constitutes the majority of borrowings.

The equity bridge loans for MBFC Tower 3 were repaid in January 2026, further strengthening the balance sheet and lowering leverage.

Corporate Actions and Potential Business Impact

• No mention of share buybacks, dilution, or mandates in the report.
• No reported legal disputes, natural disasters, or major policy changes impacting results.

Chairman’s Statement

“Strategic acquisitions and strong operating performance have enabled Keppel REIT to deliver robust organic growth and enhance income stability. Our disciplined capital management and proactive portfolio optimization continue to position us for long-term sustainable returns.”

The tone of the Chairman’s statement is positive, emphasizing growth, stability, and sustainability.

Conclusion and Investor Recommendations

Overall Assessment: Keppel REIT’s FY 2025 results reflect strong financial health, prudent capital management, high occupancy, positive rental reversions, and impactful ESG initiatives. Growth was driven by strategic asset acquisitions in Singapore and Australia, while the REIT maintained a conservative approach to leverage and funding.

• If you are currently holding Keppel REIT stock: The outlook appears strong, with sustainable income and asset growth. Consider maintaining your position, supported by stable distributions and ongoing portfolio optimization.
• If you are not currently holding Keppel REIT stock: The REIT offers a resilient income stream and growth opportunities, especially for investors seeking exposure to prime Asia Pacific commercial assets with ESG credentials. Consider initiating a position, subject to your individual risk profile and investment strategy.

Disclaimer: This analysis is based strictly on reported financial data and public disclosures. It does not constitute financial advice. Investors should evaluate their own circumstances and consult with professional advisors before making investment decisions.

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