-->

Keppel REIT - Maybank Kim Eng 2021-10-26: Leasing Up

KEPPEL REIT (SGX:K71U) | SGinvestors.io KEPPEL REIT (SGX:K71U)

Keppel REIT - Leasing Up


Stronger leasing, slower DPU growth




Rental reversions eased, to stay positive in FY22

  • Leasing activity rose to ~995k sf in 3Q21 (from ~412k sf in 2Q21/ ~310k sf in 1Q21) with new demand and expansion led by finance (35%), TMT (22%), and manufacturing/ distribution (18%) sector tenancies. Keppel REIT's rental reversion eased to +1.0% (from +4.1% in 2Q21, +10.7% in 1Q21, and +12.7% in 4Q20), with average weighted signing rents (of S$10.30psfpm) lower than 2Q21 (at S$10.93 psfpm).
  • Grade A office rents have bottomed out and we expect rental reversion to remain positive in 2022, against our estimate of +5% y-o-y recovery, versus its S$10.38 psfpm expiring rents.

Australia occupancies resilient

  • Occupancies were stable at Pinnacle underway, and should improve in 4Q21.
  • With lockdowns eased, we see stronger demand recovery and rental growth prospects for prime grade occupancies across Australia’s office submarkets in FY22.


Gearing improves, low deal visibility






Chua Su Tye Maybank Kim Eng Research | https://www.maybank-ke.com.sg/ 2021-10-26
SGX Stock Analyst Report HOLD MAINTAIN HOLD 1.000 SAME 1.000



Advertisement



MOST TALKED ABOUT STOCKS / REITS OF THE WEEK



loading.......