DBS increases Keppel REIT’s FY21 DPU estimate as it kick-starts 'acquisition mode'

DBS Group Research analysts Rachel Tan and Derek Tan are positive on Keppel REIT’s “kick-starting acquisition mode” to drive its underlying distribution per unit (DPU) growth.

The analysts have maintained their “buy” call on Keppel REIT with an increased target price of $1.40 from $1.35 previously to factor in the acquisition of Pinnacle Office Park in Sydney’s Macquarie Park on Sept 13, and some interest savings from a lower average cost of borrowing.

See: Keppel REIT buying Pinnacle Office Park in Sydney for $303.3 million