Amid the current rally in the S-REIT sector, Keppel REIT is one of the rare counters that is majority-owned by Temasek Holdings (49%) and at the same time, an S-REIT that remained elusively laggard thus far. The current Price/Book value stood at 0.875, indicating that Keppel REIT unit price is trading at an undervalued level.

With a strong sponsor in Keppel Land and a solid backer in Temasek Holdings, Keppel REIT can be considered a blue chip among the S-REIT community. Total market capitalization is about $4.2 billion. So the poor form of Keppel REIT unit price, against the backdrop of a powerful rally in the S-REIT sector, must have left investors singing the blue. Then again, unitholders must count their blessings. After all, Keppel REIT’s net income consistently fell for the past five years. It is a miracle that the unit price had not suffered a meltdown.