BROKER: UOB Kay Hian
DATE OF REPORT: 22 April 2026
Excerpt from UOB Kay Hian report.
Report Summary
- Stock: Keppel REIT (KREIT SP)
- Action: BUY (Maintained)
- Target Price: S\$1.13
- Current Price: S\$0.91
- Upside: +24.2%
- Main Idea: Keppel REIT delivered resilient 1Q26 results, with distributable income rising 17.8% to S\$62.9m. Growth was driven by retail expansion and increased income from joint ventures, notably the acquisition of a bigger stake in MBFC Tower 3 and the newly acquired Top Ryde City Shopping Centre.
- Key Highlights:
- Strong rental reversion of 17.2% for renewed leases, with robust demand from financial services tenants.
- Portfolio occupancy edged higher to 97.1%.
- Management prioritises divestment over acquisition and may consider share buybacks if gearing decreases.
- Attractive 2026 distribution yield of 6.0% and trades at a 28% discount to NAV.
- Target price trimmed slightly due to thinner NPI margin, but BUY is maintained based on strong fundamentals and attractive valuation.
- Implication: Investors should focus on Keppel REIT for its resilient income growth, attractive yield, and potential capital gains. The stock is recommended for accumulation with a BUY call and target price of S\$1.13.
- Ticker: KREIT SP
above is an excerpt from a report by UOB Kay Hian. Clients of UOB Kay Hian can be the first to access the full report from the UOB Kay Hian website : https://www.uobkayhian.com/
