Update shared on 05 Nov 2025
Fair value Increased 2.88%Analysts have raised their price target for Keppel REIT, increasing the fair value estimate from $1.02 to $1.05. This change reflects an improved outlook based on a lower discount rate and slightly more optimistic revenue projections.
What's in the News
- Keppel REIT has entered into an agreement to acquire a 75% effective interest in Top Ryde City Shopping Centre, a freehold retail mall in Sydney, Australia, for AUD 393.8 million (approximately SGD 334.8 million) (Key Developments)
- The acquired property is strategically located along Devlin Street in the City of Ryde, an area with higher than average population growth and household income compared to the rest of New South Wales (Key Developments)
- Top Ryde City Shopping Centre features a high committed occupancy rate of 96 percent and is anchored by strong performing tenants, including ALDI, Big W, Coles, Kmart and Woolworths. Non-discretionary tenants contribute 77 percent of total gross rental income (Key Developments)
- The acquisition is expected to deliver a fully leased initial property yield of 6.7 percent and pro forma adjusted DPU accretion of 1.34 percent (Key Developments)
Valuation Changes
- Fair Value Estimate has increased from SGD 1.02 to SGD 1.05, reflecting a modest upward adjustment.
- Discount Rate has decreased from 6.81% to 6.30%, indicating a more favorable risk assessment.
- Revenue Growth Estimate has improved slightly, rising from -3.60% to -3.34%.
- Net Profit Margin Estimate declined marginally from 54.82% to 54.53%.
- Future P/E Ratio has inched up from 25.41x to 25.69x.
Disclaimer
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