KREIT – BT

K-Reit to distribute 8.91 cts per unit for FY08

K-Reit on Monday reported income distributable to unitholders of $17.4 million for the quarter to Dec 31, bringing full year distribution to $58.2 million, or 8.91 cents per unit.

This implies a full-year yield of 12.7 per cent, one percentage point above 2007, and 18.3 per cent above forecast DPU of 7.3 cents, or 10.8 per cent.

Net asset value per unit was $2.28 at Dec 31, compared to $3.78 a year ago. Adjusted NAV, excluding distributable income was $2.19, down from $3.69 a year ago.

K-Reit said the outlook remained ‘challenging’ but that there were mitigating factors. Its average portfolio rents are below market rents ‘and will provide a cushion for positive rental reversion even under current conditions.’

It said that average lease to expiry was 5.6 years in its portfolio, and that it has no debt financing needs until 2011. Leverage was at 27.6 per cent as at Dec 31.

K-Reit said the present climate provided opportunities for selective asset acquisitions, and said it will engage in asset enhancement to optimise net lettable area and improve operational efficiency.