Singapore Stock Market News

Keppel REIT - Most Undervalued Office REIT

StockFanatic
Publish date: Wed, 21 Aug 2013, 12:25 AM
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We initiate coverage on KREIT with a BUY. Using DCF with terminal growth rate assumption of 3.0%, blended COE of 9.3% (with a 3% riskfree rate, 0.8x beta and 7.88% equity risk premium), we arrive at a SGD1.66 TP.

We expect KREIT shares to re-rate over the medium-term, as its portfolio will likely benefit from Singapore's low incoming supply of new commercial assets and its high-yielding Australian assets.
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