Broker Name: CGS International
Date of Report: December 11, 2025
Excerpt from CGS International report.
Report Summary
- Keppel REIT (KREIT) is increasing its stake in Marina Bay Financial Centre Tower 3 (MBFC3) from 33.3% to 66.7%, boosting its exposure to premium Singapore CBD office assets.
- The acquisition is funded mainly by a S\$886.3m preferential offering and S\$51.2m of debt, raising Singapore exposure to 79% of portfolio AUM and post-acquisition gearing to 41.9%.
- The deal is expected to be near-term DPU dilutive (FY26F), but is seen as positive long-term due to stable office market fundamentals and potential rental upside.
- KREIT maintains an Add rating with a target price of S\$1.20, citing strong portfolio positioning, stable tenant base, and room for rental growth in MBFC3.
- Key risks include slower rent recovery, frictional vacancy, and hybrid work trends impacting office demand.
- KREIT continues to demonstrate ESG leadership, with high green loan ratios, energy reductions, and strong sustainability credentials in Singapore and Australia.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com/en/home
