Keppel REIT - DBS Research 2022-10-26: Santa Is Coming Early Next 5 Years!

Keppel REIT - Santa Is Coming Early Next 5 Years!

  • Keppel REIT (SGX:K71U) surprised shareholders with the declaration of S$100m from accumulated capital gains to be distributed over the next five years leading up to its 20th anniversary in 2026. S$20m per annum translates to ~0.5 cents per share.
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  • We believe this is a bold (and rare) move from management to reward and share its years of gains accumulated from its asset recycling strategy with shareholders, especially in such a challenging environment. We believe this is a strong testament from management that it is exercising duty of care and loyalty to all stakeholders who have been supportive of the company.
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  • Gearing inched up marginally to 38.4% vs 37.9% in 2Q22 and the interest rate hedge ratio remained stable at 72% vs 73% 2Q22.
  • Keppel REIT's all-in cost of debt has risen above 2% at 2.13% in 3Q22 vs 1.93% in 2Q22 due to rising interest rates. There is no debt refinancing remaining in FY22 and management expects to refinance debt expiries (19% of total debt) by early next year.
  • Income from Australia and South Korea is hedged for up to 18 months.

Riding on strong Singapore office upcycle and locking in leases as quickly as possible.

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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 | 2022-10-26

Read also DBS's most recent report:
2023-01-30 Keppel REIT - First Ang Pow Distributed.

Price targets by 5 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

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