- Keppel REIT has completed the acquisition of an additional one-third interest in Marina Bay Financial Centre Tower 3 (MBFC-3). The acquisition is dilutive to both DPU and NAV despite strong positioning as a high-quality Grade-A office.
- - Read this at SGinvestors.io -
- We recommend switching to Suntec REIT (SGX:T82U) for Singapore office exposure.
Acquisition of additional one-third interest in MBFC-3.
- Acquisition of additional one-third interest in MBFC-3 takes Keppel REIT’s stake to 66.6%, with the balance one-third interest held by DBS (SGX:D05). The stake is being acquired from Hongkong Land (SGX:H78) with Keppel REIT having the Right of First Refusal (ROFR) for the asset.
- - Read this at SGinvestors.io -
- On the positive side, the current monthly average passing rent is at a low S$12 per sq ft, which is ~10% below the average signing rents, hence presenting upside potential.
- Weighted average lease expiry (WALE) by gross rent stands at 3.5 years. Post acquisition, KREIT’s Singapore office exposure will rise to 79% from 76%.
Pro-forma (FY24) DPU dilution of -6.4%.
- Read more at SGinvestors.io.
