KEPPEL REIT
K71U.SI
Keppel REIT: Divestment of an Australian Asset
- Keppel REIT (KREIT SP) announced its divestment of 77 King Street Tower for AUD160m, booking in a divestment gain of AUD28m, translating to an implied cap rate of 6.4%.
- Given that office cap rate in Sydney ranges from 6.0% to 6.5%, we think that the price of the divestment is within reasonable range.
- According to the management, the REIT intends to use the sales proceeds to repay its existing debt.
- In addition to this, we think that it is also the manager’s intention is to reduce its high gearing of 43.3% to 42.1%.
- We maintain SELL of TP of SGD0.83.
Ivan Looi
RHB Securities
|
Ong Kian Lin
RHB Securities
|
http://www.rhbgroub.com/
2016-01-18
RHB Securities
SGX Stock
Analyst Report
0.83
Same
0.83
