Keppel REIT - DBS Research 2022-01-26: The Force Awakens

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 @

Rachel TAN DBS Group Research | Derek TAN DBS Research | 2022-01-26

Read also DBS's most recent report:
2022-10-26 Keppel REIT - Santa Is Coming Early Next 5 Years!.

Price targets by 2 other brokers at Keppel REIT Target Prices.
Listing of research reports at Keppel REIT Analyst Reports.

Relevant links:
Keppel REIT Share Price History,
Keppel REIT Announcements,
Keppel REIT Dividends & Corporate Actions,
Keppel REIT News Articles

SGX Stock / REIT Search


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