OTCPK:KREV.F

Stock Analysis Report

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Executive Summary

Keppel REIT was listed by way of an introduction on 28 April 2006.


Snowflake Analysis

Average dividend payer with imperfect balance sheet.


Similar Companies

Share Price & News

How has Keppel REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KREV.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

KREV.F

5.5%

US REITs

2.7%

US Market


1 Year Return

-14.3%

KREV.F

-9.8%

US REITs

9.1%

US Market

Return vs Industry: KREV.F underperformed the US REITs industry which returned -10.6% over the past year.

Return vs Market: KREV.F underperformed the US Market which returned 7.1% over the past year.


Shareholder returns

KREV.FIndustryMarket
7 Day0%5.5%2.7%
30 Day-2.7%1.0%4.5%
90 Day-14.3%-10.5%2.3%
1 Year-14.3%-14.3%-6.0%-9.8%11.5%9.1%
3 Year-8.9%-8.9%10.3%-3.4%30.6%22.0%
5 Year-18.2%-18.2%40.2%11.2%57.2%39.5%

Price Volatility Vs. Market

How volatile is Keppel REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Keppel REIT undervalued compared to its fair value and its price relative to the market?

32.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KREV.F ($0.72) is trading above our estimate of fair value ($0.45)

Significantly Below Fair Value: KREV.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KREV.F is poor value based on its PE Ratio (31.5x) compared to the REITs industry average (27.2x).

PE vs Market: KREV.F is poor value based on its PE Ratio (31.5x) compared to the US market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: KREV.F is poor value based on its PEG Ratio (5.6x)


Price to Book Ratio

PB vs Industry: KREV.F is good value based on its PB Ratio (0.7x) compared to the US REITs industry average (1.4x).


Next Steps

Future Growth

How is Keppel REIT forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KREV.F's forecast earnings growth (5.7% per year) is above the savings rate (2.2%).

Earnings vs Market: KREV.F's earnings (5.7% per year) are forecast to grow slower than the US market (21.6% per year).

High Growth Earnings: KREV.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: KREV.F's revenue (0.2% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: KREV.F's revenue (0.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KREV.F's Return on Equity is forecast to be low in 3 years time (3.2%).


Next Steps

Past Performance

How has Keppel REIT performed over the past 5 years?

-26.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KREV.F has high quality earnings.

Growing Profit Margin: KREV.F's current net profit margins (41.7%) are lower than last year (52.8%).


Past Earnings Growth Analysis

Earnings Trend: KREV.F's earnings have declined by -26.2% per year over the past 5 years.

Accelerating Growth: KREV.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KREV.F had negative earnings growth (-20.9%) over the past year, making it difficult to compare to the REITs industry average (5.3%).


Return on Equity

High ROE: KREV.F's Return on Equity (2.6%) is considered low.


Next Steps

Financial Health

How is Keppel REIT's financial position?


Financial Position Analysis

Short Term Liabilities: KREV.F's short term assets (SGD138.6M) do not cover its short term liabilities (SGD149.6M).

Long Term Liabilities: KREV.F's short term assets (SGD138.6M) do not cover its long term liabilities (SGD2.2B).


Debt to Equity History and Analysis

Debt Level: KREV.F's debt to equity ratio (42.4%) is considered high.

Reducing Debt: KREV.F's debt to equity ratio has reduced from 59.8% to 42.4% over the past 5 years.

Debt Coverage: KREV.F's debt is not well covered by operating cash flow (4%).

Interest Coverage: KREV.F's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Keppel REIT's current dividend yield, its reliability and sustainability?

5.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KREV.F's dividend (5.37%) is higher than the bottom 25% of dividend payers in the US market (1.71%).

High Dividend: KREV.F's dividend (5.37%) is in the top 25% of dividend payers in the US market (4.54%)


Stability and Growth of Payments

Stable Dividend: KREV.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: KREV.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (224.1%), KREV.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KREV.F's dividends in 3 years are forecast to be thoroughly covered by earnings (0.04% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Paul Tham (37yo)

1.33yrs

Tenure

Mr. Tham Wei Hsing, also known as Paul, has been Chief Executive Officer of Keppel REIT Management Limited at Keppel Corp. Ltd. since January 1, 2019. He is Chief Executive Officer of Keppel REIT Managemen ...


Leadership Team

NamePositionTenureCompensationOwnership
Wei Hsing Tham
Chief Executive Officer of Keppel REIT Management Limited1.33yrsno data0.0048% SGD121.1k
Leng Kang
Chief Financial Officer of Keppel REIT Management Limited2yrsno datano data
Shirley Ng
Head of Investment of Keppel REIT Management Limited1.92yrsno datano data
Grace Chia
Head Investor Relations3.33yrsno datano data
Ronald Tan
Assistant Vice Presidentno datano datano data
Hua Yow Chua
Joint Company Secretary of Keppel REIT Management Limited no datano datano data
Weiqiang Tan
Joint Company Secretary of Keppel REIT Management Limitedno datano datano data
Sebastian Song
Financial Controller of Keppel REIT Management Limited0.17yrno datano data
Wah San Toh
Head of Asset Management of Keppel REIT Management Limitedno datano datano data

1.9yrs

Average Tenure

38.5yo

Average Age

Experienced Management: KREV.F's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Chiang Huat Lee
Independent Director of Keppel REIT Management Limited8.08yrsS$102.50k0.000010% SGD253.8
Swee Yiow Tan
Non-Executive Director of Keppel REIT Management Limited3.17yrsS$60.00k0.050% SGD1.3m
Penny Goh
Non-Independent Non-Executive Board Chairman of Keppel REIT Management Limited3.08yrsS$150.00k0.0052% SGD131.2k
Ian Roderick Mackie
Independent Non-Executive Director of Keppel REIT Management Limited0.42yrS$4.44kno data
Hua Mui Tan
Non-Executive Director of Keppel REIT Management Limited3.67yrsS$75.00k0.00035% SGD8.9k
Bak Liang Lor
Independent Director of Keppel REIT Management Limited8.08yrsS$100.00k0.0040% SGD102.0k
Alan Rupert Nisbet
Independent Non-Executive Director of Keppel REIT Management Limited2.58yrsS$85.00k0.00043% SGD10.9k

3.2yrs

Average Tenure

63yo

Average Age

Experienced Board: KREV.F's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: KREV.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Keppel REIT's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Keppel REIT
  • Ticker: KREV.F
  • Exchange: OTCPK
  • Founded: 2006
  • Industry: Office REITs
  • Sector: Real Estate
  • Market Cap: S$3.594b
  • Listing Market Cap: S$2.538b
  • Shares outstanding: 3.39b
  • Website: https://www.keppelreit.com

Location

  • Keppel REIT
  • 1 HarbourFront Avenue
  • #18-01 Keppel Bay Tower
  • Singapore
  • 98632
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
K71USGX (Singapore Exchange)YesUnitsSGSGDApr 2006
KREV.FOTCPK (Pink Sheets LLC)YesUnitsUSUSDApr 2006

Biography

Keppel REIT was listed by way of an introduction on 28 April 2006. It is one of Asia’s leading REITs with a portfolio of premium Grade A commercial assets in prime business and financial districts pan-Asia. Keppel REIT’s objective is to generate stable income and long-term growth for Unitholders by owning and investing in a portfolio of quality income-producing commercial real estate and real estate-related assets in Singapore and pan-Asia. The REIT has assets under management of approximately $8 billion in Singapore, key Australian cities of Sydney, Melbourne, Brisbane and Perth, as well as Seoul, South Korea. Keppel REIT is sponsored by Keppel Land Limited, one of Asia's leading property companies. It is managed by Keppel REIT Management Limited, a wholly-owned subsidiary of Keppel Capital Holdings Pte. Ltd. (Keppel Capital). Keppel Capital is a premier asset manager in Asia with a diversified portfolio in real estate, infrastructure and data centre properties in key global markets. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/29 03:24
End of Day Share Price2020/05/20 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.