Macquarie lifts Keppel Land (K17.SG) target price to $3.07 from $2.31 after increasing RNAV estimate by 17% to reflect improved outlook for Singapore office sector, says Dow Jones.

New target based on smaller 15% discount to RNAV estimate vs 25% previously. Expects every 10% increase in office rents to boost RNAV by 4.7%. Notes towers 1, 2 of developer’s part-owned Marina Bay Financial Centre almost fully taken up, with tower three 54% pre-leased, while Keppel’s Ocean Financial Centre 63% taken up.

Still, keeps Underperform call; “the strong outperformance of the shares in the past 12 months suggests the brighter office outlook is largely priced in.” Shares +0.7% at $4.05.