Keppel REIT - The Force Awakens
- Keppel REIT (SGX:K71U)'s FY21 underlying DPU (ex-capital distribution) is estimated to grow by ~7% y-o-y, implying improvement in underlying portfolio performance.
- Despite decline in occupancy (some expected), management is seeing encouraging leasing momentum and expects to announce positive news in the next quarter or two.
- Positive rental reversions and expect FY22F to record positive low to mid-single-digit reversions.
- New CEO sets his three-pronged strategy focusing on growth, future sustainability, and balancing with capital management.
- Going big on ESG with an upgraded MSCI ESG Rating to ‘A’ from ‘BBB’.
- Overall valuation was relatively flat; Singapore +0.5% due to higher rental rates and 5bps compression in cap rates, higher valuation in Australia and Korea were offset by exchange rate.
- Maintain our BUY rating on Keppel REIT; target price of S$1.40.
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/ 2022-01-26 2022-01-26
Previous report by DBS Research:
2021-12-13 Keppel REIT - Asset Recycling At Top Speed
Target prices by 3 other brokers at Keppel REIT Target Prices.
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Keppel REIT Share Price History,
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