Keppel REIT

Analysts upbeat on Keppel REIT's 3Q performance

SINGAPORE (Oct 17): Keppel REIT announced its 3Q19 results yesterday and analysts say it will continue to do well.

DBS Group Research has maintained its “buy” call on Keppel REIT with a target price of $1.45. CGS-CIMB also made a similar recommendation but has lowered the target price to $1.35, from $1.41 previously.

Keppel REIT’s 3Q19 numbers recorded a 2.9% increase in its DPU to 1.40 cents, compared to 1.36 cents in 3Q18. This came on the back of a 2.5% y-o-y growth in distributable income to $47.5 million.

Keppel REIT posts 2.9% increase in 3Q DPU to 1.40 cents

SINGAPORE (Oct 16): The manager of Keppel REIT has declared distribution per unit (DPU) of 1.40 cents for the 3Q19 ended September, some 2.9% higher than DPU of 1.36 cents a year ago.

Distributable income for 3Q19 grew 2.5% to $47.5 million, including capital gains distribution of $2.0 million.

This brings total distributable income for the first nine months of 2019 to $142.1 million, some 0.5% lower than the distributable income of $142.9 million in 9M18.

3Q19 property income rose 15.6% to $42.4 million, from $36.7 million a year ago.

Keppel REIT selling Bugis Junction Towers for $547.5 mil

SINGAPORE (Oct 1): Keppel REIT is divesting its strata ownership of Bugis Junction Towers, which it has held since its listing in 2006, for a sale price of $547.5 million.

Based on the building’s net lettable area (NLA), this translates to a price of $2,200 per square foot.

The sale price is 6.3% above the latest valuation of $515.0 million as at Aug 8, and 243.2% above the purchase price of $159.5 million in 2006.

Keppel REIT is expected to recognise an estimated accounting gain of some $18.3 million from the divestment.

Keppel REIT posts 2.1% drop in 2Q DPU to 1.39 cents

SINGAPORE (July 15): The manager of Keppel REIT has declared distribution per unit (DPU) of 1.39 cents for the 2Q19 ended June, some 2.1% lower than DPU of 1.42 cents a year ago.

Income available for distribution dipped 2.1% to $47.3 million during the quarter, from $48.3 million in 2Q18.

Property income fell 22.7% to $39.9 million in 2Q19, from $51.7 million a year ago, mainly due to lower one-off income for early surrender of leases.

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.

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