- 2H25 Keppel REIT's DPU was S$2.51 cents, -10.4% y-o-y. FY25 distribution -6.6% to S$5.23 cents. Organic and inorganic top-line growth, coupled with lower borrowing expenses, was offset by an enlarged unit base.
Stable operating metrics
- - Read this at SGinvestors.io -
- Overall, the enlarged number of units masked an otherwise stable underlying performance. HOLD given the balanced risk-reward profile.
Optimising performance
- 2H revenue and NPI of S$138.0m and S$107.7m rose 1.1% and 2.4% y-o-y. Growth was driven by higher occupancy at 2 Blue Street and higher contributions from OFC, partly offset by weaker overseas currencies. Borrowing expenses fell by 6.7%, primarily due to lower S$ base rates.
- - Read this at SGinvestors.io -
- However, the shift to 25% of management fees being paid in cash (vs. nil in FY24) caused distributable income to decline by 0.8% y-o-y. Combined with the enlarged unit base from recent preferential offering, this resulted in DPU falling 10.4% y-o-y.
- The full-year drivers were similar. Portfolio occupancy was 96.7% (up from 96.3% in 3Q25), driven by occupancy gains in Singapore and Australia. Full-year rent reversion was +11.5%, moderating from earlier in the year (+13.2%). Additionally, Keppel REIT secured commitments to backfill non-renewals from anchor tenants in 8 Exhibition Street.
Managing gearing with strategic moves
- Read more at SGinvestors.io.
Above is an excerpt from a report by Maybank Research.
Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.
Krishna Guha Maybank Research | https://www.maybanktrade.com.sg/ 2026-02-05
Read also Maybank's most recent report:
2026-04-22 Keppel REIT - Organic and Inorganic Growth .
Price targets by 3 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 Dividend Payout Dates & Corporate Actions,
Keppel REIT News
