Keppel REIT Banks on Long-Term Upside from Bigger Stake in Marina Bay Financial Centre Tower 3

Keppel REIT ( (SG:K71U) ) has issued an update.

Keppel REIT’s management told investors that its acquisition of an additional one-third interest in Marina Bay Financial Centre Tower 3 will not be immediately DPU-accretive but is positioned as a strategic, long-term move, underpinned by confidence in the asset’s rental growth potential and the strength of Singapore’s CBD office market. Current passing rents at the building are below both the Marina Bay average and the level at which the deal becomes DPU-neutral, but recent signing rents have already surpassed the DPU-neutral threshold, suggesting upside as leases are renewed over time. Management also highlighted the tight future supply in the CBD, with no new land releases and long construction lead times, and noted that pro forma figures do not yet include contributions from its recently completed 75% acquisition of Sydney’s Top Ryde City Shopping Centre, reinforcing its commitment to growing DPU for unitholders over the long term.

The most recent analyst rating on (SG:K71U) stock is a Buy with a S$1.20 price target. To see the full list of analyst forecasts on Keppel REIT stock, see the SG:K71U Stock Forecast page.

More about Keppel REIT

Keppel REIT is a Singapore-listed real estate investment trust that owns and manages a portfolio of Grade A commercial properties, with a focus on prime office and retail assets in key business districts such as Singapore’s Marina Bay and major Australian cities. It is managed by Keppel REIT Management Limited, which seeks to deliver stable distributions and long-term distribution per unit (DPU) growth to its unitholders through active asset management and strategic acquisitions.

Average Trading Volume: 10,707,296

Technical Sentiment Signal: Buy

Current Market Cap: S$4.79B

Learn more about K71U stock on TipRanks’ Stock Analysis page.