SINGAPORE (Mar 7): UOB Kay Hian is maintaining its “buy” call on Keppel REIT with a target price of $1.35 on expectations of the REIT to benefit from the full-year impact of leases, which were renewed in 2018, this year.

Based on the latest set of FY18 results, the research house likes the REIT for its high tenant retention of 83% and improved average signing rent for Singapore offices leases at $11.10 psf pm versus $9.80 in 2017.

In a Thursday report, analyst John Koh notes that the REIT’s proportion of leases expiring in 2019 was 4.2% of attributable area as of Dec 18, which is much lower than 10.2% in June 2018, in his view.

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