Broker: CGS International
Date of Report: April 21, 2026
Excerpt from CGS International report.
Report Summary
- Stock: Keppel REIT (KREIT SP)
- Action: Maintain Add (Buy equivalent)
- Target Price: S\$1.09 (previous: S\$1.20)
- Current Price: S\$0.91
- Upside: 20.0%
- Key Highlights:
- 1Q26 revenue and net property income up 14.4% and 9.7% YoY.
- Distributable income up 17.8% YoY to S\$62.9m.
- Portfolio occupancy at 97.1% with strong rental reversions (+17.2%).
- Dividend per unit (DPU) for 1Q26 estimated at 1.27 Scts; FY26-28F DPU estimates lowered by 11.7-14.6% due to acquisitions and equity fundraising.
- Aggregate leverage at 40.2% in 1Q26; focus on divestments over acquisitions in near term.
- Interest costs guided to remain between low 3% to 3.3% for FY26.
- Positive outlook for rental reversions as expiring leases are below market rates.
- Risks: Vacancy from tenant movements, slower backfilling, hybrid work environment reducing office space demand.
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
