S-REITs Weekly - UOB Kay Hian 2020-04-13: Rebounded 12.2% Last Week On Investors’ Optimism

Singapore REITs - UOB Kay Hian Research | SGinvestors.io KEPPEL REIT (SGX:K71U) FAR EAST HOSPITALITY TRUST (SGX:Q5T)

S-REITs Weekly - Rebounded 12.2% Last Week On Investors’ Optimism




WHAT HAPPENED LAST WEEK



SPOTLIGHT – Keppel REIT (SGX:K71U)

  • Singapore portfolio to maintain positive reversions in 2020 and 2021. Management disclosed that the average rents for expiring leases are S$9.69psf pm for 2020, S$9.74psf pm for 2021 and S$10.20psf pm for 2022, which are below current market rent of S$11.55psf pm for Grade-A office space within core CBD.
  • 311 Spencer Street, Melbourne to start contributing in 2Q20. The 40-storey freehold Grade-A office building will be leased to Victoria Police for 30 years commencing in 2Q20. The lease has fixed annual escalation of 2-4% per year. Management expects 311 Spencer Street to generate NPI yield of 6.4% on development cost of S$362.4m.
  • Minimal exposure to co-working. Co-working operators accounted for 0.8% of Keppel REIT (SGX:K71U)’s NLA and 0.7% of Gross Rental Income.
  • See report:
  • See peer comparison table in attached PDF report.


See also






Jonathan KOH CFA UOB Kay Hian Research | Peihao LOKE UOB Kay Hian | https://research.uobkayhian.com/ 2020-04-13
SGX Stock Analyst Report BUY MAINTAIN BUY 1.300 SAME 1.300
BUY MAINTAIN BUY 0.500 SAME 0.500



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