Keppel REIT (SGX: K71U)
Keppel REIT will acquire an effective 50% interest in 255 George Street, a freehold office building located in Sydney, Australia. The deal is worth approximately S$321 million. The building is accessible using multiple modes of transportation and boasts good amenities. It also has a high committed occupancy of 93% and a long weighted average lease expiry of 6.8 years by net lettable area. The tenants comprise government agencies such as the Australian Taxation Office and financial institutions such as the Bank of Queensland (ASX: BOQ). This property will deliver a first-year yield exceeding 6%. When the acquisition is completed, Keppel REIT’s top 10 tenants will see their gross rental income contribution decrease from 32.7% to 31.1%, thereby enhancing tenant diversification. The proportion of freehold assets will increase from 33.2% to 36.4% of the portfolio. The office REIT’s distribution per unit (inclusive of the anniversary distribution) is expected to rise by 1.4% to S$0.0588....Welcome to this week’s edition of top stock market highlights.
