Keppel REIT

Keppel REIT reports 2.1% drop in 1Q DPU to 1.39 cents

SINGAPORE (Apr 17): The manager of Keppel REIT has declared distribution per unit (DPU) of 1.39 cents for the 1Q19 ended March, some 2.1% lower than DPU of 1.42 cents a year ago.

Distributable income fell 1.9% to $47.3 million for 1Q19, from $48.2 million a year ago.

The decline was mainly attributable to the impact of occupancy changes, a weaker Australian dollar, and lower income contribution from Ocean Financial Centre following the divestment of a 20% stake in mid December 2018.

Keppel REIT to benefit from lease renewals, Australia portfolio going forward: UOB

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.

Keppel REIT posts 4.9% lower 4Q DPU of 1.36 cents

SINGAPORE (Jan 21): The manager of Keppel REIT has declared a 4Q18 distribution per unit (DPU) of 1.36 cents, representing a 4.9% decline from its quarterly DPU of 1.43 cents a year ago.

This brings the trust’s FY18 DPU to 5.56 cents, down 2.5% from its DPU of 5.7 cents in FY17.

Property income for the latest quarter under review fell 14.8% to $37.8 million from $44.4 million previously due to lower income contributions from Ocean Financial Centre, 275 George Street and 8 Exhibition Street.

Keppel REIT divests 20% stake in Ocean Financial Centre to Allianz RE for $537 mil

SINGAPORE (Nov 30): Keppel REIT is divesting a 20% stake in Ocean Financial Centre to Allianz Real Estate.

The agreed property value of the 20% minority stake of $537.3 million is 16.8% above Keppel REIT’s historical purchase price of $460.2 million, says the manager of Keppel REIT in a filing this morning.

Keppel REIT currently holds a 99.9% interest in Ocean Financial Centre through subsidiary Ocean Properties LLP (OPLLP).

Keppel REIT declares 2.9% lower 3Q DPU of 1.36 cents on lower contributions from assets

SINGAPORE (Oct 15): The manager of Keppel REIT has declared a DPU for 3Q18 of 1.36 cents. This is 2.9% lower than the DPU of 1.40 cents for 3Q17 and brings DPU for 9M18 to 4.20 cents compared to 4.27 cents a year ago.

For the three months ended Sept 30, gross revenue fell 9.4% to $36.7 million from the preceding year. These was due to lower contributions from Ocean Financial Centre in Singapore, 275 George Street and 8 Exhibition Street in Australia, partially offset by higher property income and net property income from Bugis Junction Towers.

Analysts remain positive on Keppel REIT with manager's intention to start share buyback

SINGAPORE (July 17): DBS Vickers Securities and CGS-CIMB Securities are maintaining their respective “buy” and “add” calls on Keppel REIT (K-REIT) with unchanged price target estimates of $1.41 and $1.34, after the REIT’s 2Q DPU of 1.42 cents came in within both research houses’ expectations.

In a Tuesday report, DBS analyst Mervyn Song says he remains positive on the REIT on the belief that office rents are on a sustained upturn, with K-REIT’s unit price expected to stage a rally following the correction in recent months.

Keppel REIT posts 2.1% drop in 1Q DPU to 1.42 cents

SINGAPORE (Apr 18): The manager of Keppel REIT has declared a 1Q18 DPU of 1.42 cents, 2.1% lower than 1.45 cents recorded in 1Q17.

This was despite a 0.2% increase in income available for distribution to $48.2 million from a year ago.

Property income in 1Q18 declined 0.3% to $39.7 million mainly due to a 28.9% decrease in other income to $0.69 million.

Net property income (NPI) for 1Q18 came in at $31.2 million, 0.6% lower than $31.4 million in 1Q17.

Six S-REITs to jump back on as sector bottoms out

SINGAPORE (Mar 19): DBS Group Research is remaining upbeat on Singapore REITs (S-REITs) given investors are looking for re-entry opportunities with the recent correction in unit prices.

The research house says with lower prices, yields have inched up by between 0.5bps and 6.0bps with upside surprise coming from an expected rebound in rental growth rates.

The strength of the SGD versus regional currencies is also another reason, says lead analyst Derek Tan in a Monday report.

Keppel REIT downgraded to 'sell' amid negative rent reversions

SINGAPORE (Jan 25): RHB Research is downgrading Keppel REIT to “sell”, from “neutral” previously, on the back of negative rent reversions that are likely to persist for K-REIT.

This comes despite a pickup in the office market, says analyst Vijay Natarajan, as K-REIT’s expiring rents were signed closer to the previous peak in 2014.

According to Natarajan, K-REIT signed 26 leases with net lettable area (NLA) totalling approximately 297,300 sq ft in 4Q17, at an estimated rent reversion of -6%. This was steeper than the estimated rent reversion of -4% in FY17.

Keppel REIT posts 3.4% decline in 4Q DPU to 1.43 cents

SINGAPORE (Jan 23): The manager of Keppel REIT has reported a distribution per unit (DPU) of 1.43 cents for the quarter ended Dec 2017, down 3.4% on-year from 1.48 cents in 4Q16 after factoring in nearly $11 million of net tax and other adjustments.

The latest set of results represents a fourth straight quarter of DPU decline for the full year, and brings the trust’s FY17 DPU to 5.7 cents, down 10.5% from 6.37 cents the year before.

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