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Keppel Reit
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Keppel REIT
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Joelton
Supreme |
23-Apr-2026 11:33
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Keppel Reit&rsquo s equity fundraising exercise may dilute DPU despite improved Q1 earnings: analysts CGSI cuts its target price on a lower distribution per unit forecast, while RHB lifts its projections [SINGAPORE] Analysts were mixed on the outlook for Keppel Real Estate Investment Trust (Reit) despite improvements in its first-quarter earnings, as they flagged the dilutive impact of its recent equity fundraising exercise on distribution per unit (DPU). CGS International Securities Singapore (CGSI) on Tuesday (Apr 21) trimmed its target price for the locally listed Reit by 9.2 per cent to S$1.09 from S$1.20 previously, but maintained its &ldquo add&rdquo call. DBS, meanwhile, kept its S$1.05 target price and &ldquo buy&rdquo call unchanged. In contrast, RHB on Wednesday raised its target price by 1 per cent to S$0.99 from S$0.98, and reiterated &ldquo neutral&rdquo on the stock. The divided views come after Keppel Reit on Tuesday posted a 19.7 per cent rise in distributable income from operations for its Q1 ended March. This was amid higher property income due to contributions from Top Ryde City Shopping Centre in Sydney, Australia &ndash the freehold retail mall is the trust&rsquo s maiden purchase of a pure-play retail asset &ndash and higher occupancy at Ocean Financial Centre in Singapore. CGSI analyst Lock Mun Yee said the reduced target price accounts for lower DPU forecasts for the financial years 2026 to 2028, which the brokerage cut by 11.7 to 14.6 per cent. This is considering Keppel Reit&rsquo s dual acquisitions of Top Ryde City Shopping Centre and Marina Bay Financial Centre (MBFC) Tower 3, alongside the corresponding equity fundraising exercise, she added. Observers had earlier warned that the Reit&rsquo s S$1.45 billion purchase of an additional one-third stake in MBFC Tower 3, as well as the fundraising exercise to finance it, would likely have a dilutive impact on DPU. The trust&rsquo s manager on Dec 11, 2025, announced the acquisition and launched an underwritten, non-renounceable preferential offering of new units at S$0.96 apiece, to raise gross proceeds of around S$886.3 million. Tailwinds ahead Conversely, RHB lifted its DPU projections by 1 per cent and 2 per cent for FY2026 and FY2027, respectively. This was despite its analyst Vijay Natarajan noting that the &ldquo dilutive DPU impact&rdquo from the equity fundraising exercise remains a &ldquo key concern&rdquo . Although Keppel Reit&rsquo s Q1 indicative DPU is down by around 8 per cent on the year &ndash which Natarajan attributes primarily to the &ldquo dilutive equity issuance&rdquo &ndash he pointed out that higher rents and lower financing costs nonetheless present tailwinds. He said the Reit&rsquo s weighted average cost of debt fell 25 basis points on the quarter to 3.16 per cent a year, and is expected to hover at these levels throughout FY2026. Moreover, rental reversions are expected to remain in the high single-digits for FY2026, supported by tight office demand-supply dynamics in Singapore&rsquo s core Central Business District, he added. &ldquo Portfolio occupancy rose 0.4 percentage point quarter on quarter to 97.1 per cent, driven mainly by occupancy increases across Singapore assets, with demand stemming from the banking, insurance and financial services segment,&rdquo he noted. Portfolio rent reversions for Q1 also &ldquo surprised on upside&rdquo with a 17.2 per cent rise, the analyst added, as the Singapore portfolio registered around 10 per cent of positive rental reversions, while a replacement tenant in Australia agreed to a &ldquo (significantly) higher rent&rdquo . Similarly, DBS Group Research analyst Dale Lai said that continued positive rental reversions present the &ldquo strongest near-term catalyst&rdquo for Keppel Reit. These, alongside savings in financing costs, could be &ldquo key earnings drivers going forward&rdquo . He noted that the Reit signed rents at an average price of S$13.26 per square foot per month (psf pm) in Q1 &ndash &ldquo well above&rdquo , or around 10.7 per cent higher than, the average rent of leases expiring in FY2026 at S$11.98 psf pm. DBS Group Research is also looking forward to the tax transparency status for MBFC Tower 3. This could result in annual savings of between S$8 million and S$10 million, expected to be recorded in H1 2026, said Lai. As the Reit&rsquo s leverage is &ldquo manageable&rdquo , he predicts that capital management will remain stable and borrowing costs will improve further. Units of Keppel Reit : K71U -1.65% closed Wednesday 1.6 per cent or S$0.015 lower at S$0.895. |
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Alignment
Elite |
21-Apr-2026 18:19
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OUEREIT is much the more attractive investment at this point. Cheaper but also stronger growth. Look at the great 1Q results announced just now. | ||||
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Alexch
Member |
21-Apr-2026 12:37
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Estimated Distribution Per Unit (DPU): For 1Q 2026, estimated at 1.27 cents based on 4,955 million units in issue. So for fill year approx. 1.27x4=5.08, which is lower than in 2022/2023/2024 and 2025 ? It doesn' t look great, or I missed something? (well yeah, rights issue with dilution, but still)
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Delvyss
Elite |
21-Apr-2026 10:06
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Keppel REIT Reports Strong Q1 2026 Results with Higher Property Income, Rental Reversions, and Robust Portfolio Performancehttps://www.minichart.com.sg/2026/04/21/keppel-reit-reports-strong-q1-2026-results-with-higher-property-income-rental-reversions-and-robust-portfolio-performance/ |
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b888sg
Senior |
27-Mar-2026 22:34
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Hello JurongW! Ok, I will. Thank you very much.
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JurongW
Elite |
27-Mar-2026 17:29
Yells: "Earnings give weight, Chart give wings" |
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JurongW
Elite |
27-Mar-2026 16:30
Yells: "Earnings give weight, Chart give wings" |
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Not a guru here, but avoid reits for the time being due to the rising 10 yr treasury yields. From MSCP: Rising 10 year Treasury yields ripple through the system - they lift the cost of debt financing, pressure REIT valuations, and shift investor preferences toward safer government bonds. For REIT investors, this means higher refinancing risk and yield competition, especially for highly leveraged or cyclical REITs.
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Alignment
Elite |
27-Mar-2026 16:06
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It hasn' t really dropped that much yet. Especially compared with how similar companies have performed - looks roughly the same, so in relative terms not much has changed. | ||||
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b888sg
Senior |
27-Mar-2026 15:52
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Hello Guru! Price drop so much, it is time to buy? Please advise! Thank you. |
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PiRPiR
Master |
17-Mar-2026 23:58
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Yes. Sorry
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Alexch
Member |
09-Mar-2026 12:51
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Your article is from February 17, 2026. Everything has changed since then
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Alignment
Elite |
08-Mar-2026 10:09
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OUE REIT making the better moves by selling into a hot Singaporean market rather than buying. | ||||
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Delvyss
Elite |
06-Mar-2026 09:56
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A Look At Keppel REIT (SGX:K71U) Valuation After Strong Full Year Results And Confirmed Distributionhttps://simplywall.st/stocks/sg/real-estate/sgx-k71u/keppel-reit-shares/news/a-look-at-keppel-reit-sgxk71u-valuation-after-strong-full-ye |
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Delvyss
Elite |
06-Mar-2026 09:28
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REITs seen as portfolio stabiliser amid Iran conflict volatilityhttps://www.investordaily.com.au/reits-seen-as-portfolio-stabiliser-amid-iran-conflict-volatility/ |
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PiRPiR
Master |
27-Feb-2026 23:34
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https://tigr.link/s/60ERnjQ
Keppel REIT Posts 6.9% Rise in FY2025 Net Property Income, Declares 5.23-Cent DPU Keppel REIT (K71U) reported net property income of 215.9 million Singapore dollars for the financial year ended Dec, 31 2025, a 6.9 per cent increase from the previous year. Distributable income from operations slipped 1.1 per cent to 192.4 million Singapore dollars, while distributable income would have grown 6.3 per cent to 206.8 million Singapore dollars if management fees had been fully paid in units. The trust declared a distribution per unit of 5.23 cents, comprising 2.72 cents paid on Sep, 15 2025, 1.63 cents paid on Nov, 25 2025, and a final 0.88 cent tranche payable on Mar, 25 2026. The units will trade ex-distribution on Feb, 11 2026, with a record date of Feb, 12 2026. Portfolio committed occupancy stood at 96.7 per cent, and weighted average lease expiry was 4.4 years. Rental reversions for leases signed in FY2025 averaged +11.5 per cent. Aggregate leverage was 47.9 per cent as at Dec, 31 2025 this would fall to 40.4 per cent assuming preferential-offering proceeds received at year-end were used to repay equity bridge loans. Weighted average cost of debt was 3.41 per cent per annum, with 53 per cent of borrowings on fixed rates and a weighted average term to maturity of 2.4 years. During the year Keppel REIT completed two acquisitions: a 75 per cent stake in Top Ryde City Shopping Centre, Sydney, on Dec, 19 2025 and an additional one-third interest in Marina Bay Financial Centre Tower 3, Singapore, on Dec, 31 2025. Both assets are expected to contribute to earnings from 2026. Net asset value per unit rose to 1.27 Singapore dollars, up 2.4 per cent from a year earlier. The trust?s total portfolio was valued at 11.66 billion Singapore dollars across 14 prime commercial properties in Singapore, Australia, South Korea and Japan. |
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Alignment
Elite |
26-Feb-2026 21:55
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Let' s hope this new EQDP money is better used to benefit Singapore than the money already invested so far. | ||||
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Delvyss
Elite |
26-Feb-2026 08:53
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Budget 2026 Injects Another S$1.5 Billion Into SGX. Are Singapore Mid-Cap Stocks About to Surge?(The REIT Tier ... Suntec REIT ... Keppel REIT ...)https://sg.finance.yahoo.com/news/budget-2026-injects-another-1-233000740.html |
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Delvyss
Elite |
24-Feb-2026 10:50
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Target price https://www.dbs.com.sg/treasures/aics/templatedata/article/equity/data/en/DBSV/012014/KREIT_SP.xml |
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PiRPiR
Master |
14-Feb-2026 12:19
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Keppel REIT issued 18.0 million new units at S$0.9763 each, totaling S$17.6 million, to settle management fees for late 2025, boosting the manager's stake to 5.69% of the enlarged 4.96 billion-unit base, with the issue price set by the 10-day VWAP on SGX. | ||||
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Joelton
Supreme |
14-Feb-2026 12:00
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Keppel REIT rules out near-term equity fundraising and sets 2026 cost of borrowing targets Following a series of acquisitions, including a 75% stake in Top Ryde City Shopping Centre in Sydney and the dilutive deal of an additional one-third interest in Marina Bay Financial Centre (MBFC) Tower 3 in Singapore, Keppel REIT (SGX:K71U) is likely to focus on organic growth this year. Although Keppel REIT acquired the one-third interest in MBFC Tower 3 at almost full value, it partly financed the transaction by issuing units at 96 cents, when its VWAP was $1.03, and its NAV (as of June 30, 2025) was $1.21. In its FY2025 results, Keppel REIT&rsquo s distribution per unit (DPU) declined 6.6% y-o-y to 5.23 cents while property income and net property income (NPI) rose 4.9% and 6.9% y-o-y, respectively. During the Feb 4 results briefing, Chua Hsien Yang, CEO of the manager, noted that a key priority is to drive organic growth across the portfolio, given the favourable market dynamics for office space in Singapore. Recent media reports suggest ANZ is moving from Ocean Financial Centre to the Marina One complex. Chua did not confirm which tenant is leaving, but he sees strong demand for office space, particularly at Ocean Financial Centre. &ldquo For Singapore, any tenants, especially full-floor tenants that return the space in our CBD assets (Ocean Financial Centre, Marina Bay Financial Centre, One Raffles Quay), we really don&rsquo t mind, as we shared for the last two quarters that we have a lot of demand.&rdquo &ldquo Therefore, if a tenant leaves, there is definitely a lot more demand to lease out the space at much higher rates,&rdquo says Chua. &ldquo On top of that, we also want to continue to push the best results that we can actually get from our Australian assets as well,&rdquo he adds. Keppel REIT&rsquo s Australia portfolio valuation declined 4.2% y-o-y in Singapore dollar terms, but committed occupancy remained fairly stable at 96.5%, and NPI increased 6.0% y-o-y to $105.2 million. The higher NPI was mainly due to contributions from 255 George Street and increased occupancy at 2 Blue Street, offset partially by a stronger Singapore Dollar. The other key priority Chua highlighted was reducing Keppel REIT&rsquo s borrowing costs. Sebastian Song, CFO of the manager, stated that the REIT aims for its borrowing cost to be between 3% and 3.3% in 2026. As of Dec 31, 2025, that figure stood at 3.41% per annum. Given the Reserve Bank of Australia&rsquo s recent 25-basis-point rate hike, analysts are concerned about its ability to meet the 2026 borrowing cost target. As of Dec 31, 2025, Australia dollar-denominated loans accounted for about 14% of Keppel REIT&rsquo s total borrowings. &ldquo I think that the target has not changed yet and won&rsquo t be derailed for the time being. Unfortunately, they hiked the rate. While we can&rsquo t control this aspect of things, what we can control is really to tap on the momentum of our refinancing exercise to drive margin savings,&rdquo adds Song. Meanwhile, with Marina One reportedly on the market at around $5 billion to $6 billion, Chua admitted that while the whole market will be looking at the property, it will be quite challenging for Keppel REIT to acquire it due to the hefty price tag. &ldquo I assured investors that we have already done a fair bit of acquisitions and we are not rushing to do any equity fundraising anytime soon. But of course, if the time is right and if we find attractive offers for some of our assets, we could look at strategic divestments and use the proceeds for any potential acquisitions,&rdquo states Chua. Regarding the potential acquisition of Keppel South Central, Chua states that there are currently no further updates and that no discussions have commenced with Keppel, the sponsor, regarding the asset. &ldquo My understanding is that occupancy is still not at a level that makes it interesting for us to start discussions with them at this point. Even if the occupancy level is at a level that&rsquo s high enough for us, there&rsquo s still a lot of things that we need to figure out,&rdquo says Chua. Separately, at Keppel&rsquo s results briefing on Feb 5, Louis Lim, CEO, Real Estate, says that this property is about 50% &ldquo committed or in very active levels of negotiations&rdquo , and that Keppel is looking forward to &ldquo being in a position in the near-to-medium-term future to be able to figure out a monetisation path for this asset.&rdquo Finally, regarding the relationship with Hongkong Land, Chua says it is still good, and things are back to normal. &ldquo We have always been partners and competitors at the same time, so nothing has really changed. Every company has their own aspiration and strategy. If you look at Hongkong Land, Mapletree, and Suntec, we all have similar strategies. Does that mean our working relationship is not good? I don&rsquo t think so,&rdquo adds Chua. |
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