Keppel REIT - OCBC Investment 2022-12-15: Beneficiary Of Office Upcycle But Macro Headwinds Looming

Keppel REIT - Beneficiary Of Office Upcycle But Macro Headwinds Looming

  • Initiate coverage on Keppel REIT with fair value estimate of S$0.87; risks include rising recession risks, higher interest rates and currency fluctuations.
  • Healthy occupancy rates and rental reversions given office rental upcycle in Singapore.
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Healthy occupancy rates and rental reversions.

  • Keppel REIT (SGX:K71U) is a pure-play office S-REIT with a portfolio of quality Grade A commercial assets in key business districts in pan-Asia. Keppel REIT's portfolio committed occupancy rate stood at a healthy 96.8%, as at 30 Sep 2022, an improvement of 1.3 percentage points (ppt) on a quarter-on-quarter basis. Additionally, Keppel REIT was able to achieve solid positive rental reversions of ~10% in 3Q22, although the outlook for similar rental uplifts is likely less sanguine in 2023 given higher average expiring rents of S$11.35 per square foot per month (psf pm), versus S$10.06 psf pm in 2022.
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Rising cost of debt could weight on growth

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Above is the excerpt from report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full report in PDF @

OCBC Research Team OCBC Investment Research | 2022-12-15

Read also OCBC's most recent report:
2024-01-31 Keppel REIT - Slight Decline In FY23 DPU As Expected.

Previous report by OCBC:
2024-01-12 Keppel REIT - Expecting Unchanged DPU For Upcoming 2H23 Results.

Price targets by 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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