Narrative Update on Keppel REIT: Analyst Price Target Change
Analysts have revised their fair value estimate for Keppel REIT slightly downward, adjusting it from $1.02 to $1.02. They cited improved revenue growth projections, along with moderated profit margin expectations, as influencing factors.
What's in the News
- Announced acquisition of a 75% effective interest in Top Ryde City Shopping Centre, a major freehold retail mall in Sydney, Australia, for approximately SGD 334.8 million. The mall has a 96% committed occupancy rate and a projected initial property yield of 6.7% (Key Developments).
- Top Ryde City Shopping Centre offers a total lettable area of 77,054 sqm and 2,739 car park lots, and is anchored by tenants including ALDI, Big W, Coles, Kmart, and Woolworths. Non-discretionary tenants account for 77% of total gross rental income (Key Developments).
- Dividend distribution announced at 2.72 cents per unit for the period from 1 January to 30 June 2025, including taxable, tax-exempt, and capital gains components. Payment date is set for 15 September 2025 with record date on 7 August 2025 (Key Developments).
Valuation Changes
- Fair Value Estimate: Decreased marginally from SGD 1.02 to SGD 1.02.
- Discount Rate: Lowered slightly from 6.89% to 6.81%.
- Revenue Growth: The projected decline has eased, improving from minus 6.0% to minus 3.6%.
- Net Profit Margin: Reduced from 58.2% to 54.8%.
- Future P/E Ratio: Forecasted to decline from 26.0 times to 25.4 times.
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