Keppel REIT - Asset Recycling At Top Speed
- Keppel REIT announced the acquisition of Blue & William, a freehold Grade A office building under development located in North Sydney, Australia for A$327.7m (S$322.2m). The acquisition will be fully debt-funded.
- The acquisition will increase Keppel REIT's Australia portfolio to 19.5% from 16.4% by AUM and 32.6% by NLA.
- We view the acquisition as a positive addition to Keppel REIT’s portfolio, delivering ~3% accretion upon completion and good portfolio metrics that would ensure earnings visibility in the medium term.
- In addition, pro forma gearing at slightly below 40% still has debt headroom for future acquisitions.
- Keppel REIT offers a 5.2% FY22F yield.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Rachel TAN DBS Group Research | Derek TAN DBS Research | https://www.dbs.com/insightsdirect/ 2021-12-13 2021-12-13
Read also DBS's most recent report:
2022-10-26 Keppel REIT - Santa Is Coming Early Next 5 Years!.
Previous report by DBS:
2022-01-26 Keppel REIT - The Force Awakens.