Singapore Stock Market News

Keppel REIT - Steady leasing

StockFanatic
Publish date: Tue, 16 Jul 2013, 10:12 AM
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The key positives in KREIT's 2Q13 results were the higher leasing at OFC, successful backfilling at Prudential Tower and the proactive refinancing of loans due in FY14. KREIT's headline yields are high but we see this balanced by its high asset leverage and income support.

KREIT's 2Q13/1HFY13 DPUs broadly met consensus and our expectations, forming 25%/50% of our FY13 forecast. We tweak our FY13-15 DPUs and our DDM-based target price (discount rate: 8.3%) higher to factor in its recent acquisition. Maintain Neutral.
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