Excerpts from UOBKayHian report

Keppel Reit (SGX: K71U)

Keppel Reit (KREIT) achieved a strong positive rental reversion of 9.2% in Singapore for 3Q22. Portfolio committed occupancy also improved 1.3ppt qoq to 96.8%. Cost of debts rose from 1.9% in 1H22 to about 2.5% in 3Q22. Management has set aside S$100m from accumulated capital gains to be distributed over the next five years. KREIT provides 2023 distribution yield of 6.5% (CICT: 6.4% and Suntec: 6.4%). P/NAV is attractive at 0.65x. Maintain BUY with a target price of S$1.24.

Keppel Reit maintains positive growth momentum

Keppel REIT (KREIT) reported distributable income of S$165.4m for 9M22 (+3.4% yoy), which is in line with our expectations. Growth was driven by the acquisition of Keppel Bay Tower on 18 May 21, partially offset by the divestment of 275 George Street and lower contribution from 8 Chifley Square in Sydney. Portfolio occupancy improved 1.3ppt...