Keppel REIT - Rent Reversion Remains Positive In 2H
KEPPEL REIT (SGX:K71U)
- Keppel REIT (SGX:K71U) reported 2H21 gross revenue of S$110.8m, +16.9% y-o-y, due to full-year contributions from Victoria Police Centre, Pinnacle Office Park and Keppel Bay Tower as well as capital distribution of S$2m.
- Keppel REIT's 2H/FY21 DPU of S$0.0288/S$0.0582 is slightly ahead of our expectations at 52.5%/106.1% of our FY21F forecast.
- Portfolio committed occupancy declined q-o-q to 95.4% at end-Dec 21
- Keppel REIT’s aggregate leverage stands at 38.4% as at end-FY21 with average all-in interest cost of 1.98%. An estimated 63% of its debt are on fixed rates. Management guided that a 25bp hike in funding cost could erode its DPU by 0.08 cents (or ~1.4% of FY21 DPU).
- We lift our FY22-23F DPU forecast for Keppel REIT by 3.88-5.56% as we adjust our rent growth assumption to 5% from 0% previously for FY22-23F. We maintain our DDM-based target price of S$1.29 for Keppel REIT.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
LOCK Mun Yee CGS-CIMB Research | EING Kar Mei CFA CGS-CIMB Research | https://www.cgs-cimb.com 2022-01-25
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Read also CGS-CIMB's most recent report:
2022-07-27 Keppel REIT - Outlook Remains Positive
Target prices by 2 other brokers at Keppel REIT Target Prices.
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