january 2010 - Keppel Corporation

Sustaining Growth 11
from 44.4% to a majority
control of 73.4% of the total
strata area, which will put
K-REIT Asia in a stronger
position to manage the
income generated from this
asset.
As at end-2009, K-REIT Asia’s
portfolio net lettable area was
1.3 million sf and portfolio
size was $2.1 billion. On an
average psf basis, portfolio
valuation has fallen by 5.3%
to $1,616 psf from a year
ago, which is at the lower end
of market valuation for prime
office space.
With enhanced financial
flexibility from the rights
issue, K-REIT Asia intends to
pursue opportunities for
strategic acquisitions in
Singapore and other Asian
growth cities. It will continue
to identify potential asset
enhancement initiatives for
its property portfolio to
maximise rental income,
and to place emphasis on
attracting creditworthy new
tenants, retaining good
existing tenants and
improving operational and
cost efficiencies. keppelite
Full year results for
Keppel Corporation
and Keppel Land will
be reported in the
February issue with
their releases in late
January.
Keppel T&T seeks
growth opportunities
Keppel Telecommunications
& Transportation (Keppel
T&T) group revenue
decreased 12% in 2009 to
$113.3 million due mainly to
lower logistics revenue in
Singapore and the winding
down of the network
engineering business.
Nonetheless, revenue from
logistics activities in China
continued to show healthy
improvements. The group
has further expanded its data
centre business.
Profit before tax and
exceptional items was
$65.3 million due to lower
operating profit. However,
share of contributions
from associated companies
improved 4% to
$58.5 million. Group profit
after tax was 13% lower at
$47.7 million due to
impairment in value of
investments and provision
for restructuring costs.
The Directors are pleased to
recommend a first and final
dividend of 3.0 cents per
share tax exempt (one-tier)
for 2009 subject to approval
by shareholders at the
next Annual General
Meeting to be convened in
April 2010.
PROSPECTS
Logistics operations are
expected to benefit from
the improved economic
outlook. In Singapore,
Keppel T&T will redevelop
its logistics assets to
maximise returns. The group
currently enjoys a strong
position in Foshan and
looks to expand its
Logistics activities in China continued to show healthy improvements
warehouse and distribution
business in the region. In
addition, it is looking to
deepen its logistics
operations in Vietnam.
The group’s data centre in
Singapore has commenced
operations and currently
serves a number of blue-chip
customers. The Citadel100
data centre in Ireland
continues to enjoy full
occupancy, while demand for
data centres continues to
hold up well. keppelite
Keppelite I January 2010