Keppel REIT - RHB Invest 2024-04-02: Acquisition Of 255 George Street; BUY

• Keppel REIT (SGX:K71U)’s acquisition 255 George Street (255 GS) is a pre-emptive strategy, in our view, to capitalise on recent office asset value corrections in Australia and a potential recovery ahead from rate cuts.
• - Read this at SGinvestors.io -
• Keppel REIT's share price trades at >30% discount to book value, which we believe is unjustified, considering the REIT’s high quality office assets in prime locations.

Acquisition of 50% stake in 255 GS

• Keppel REIT's announced the acquisition of 50% stake in 255 George Street, Sydney, Australia, from Mirvac Wholesale Office Fund I for a purchase consideration of AUD363.8m (S$321m).
• - Read this at SGinvestors.io -
• Committed occupancy stands at 93% with a relatively long weighted average lease expiry or WALE of 6.8 years and diversified tenant base.

NPI yield of ~6%

• Read more at SGinvestors.io.

Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2024-04-02 SGinvestors.io

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