Analyst Jonathan Koh from UOB Kay Hian maintained a Buy rating on Keppel REIT (KREVF – Research Report) and keeping the price target at S$1.06.
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Jonathan Koh has given his Buy rating due to a combination of factors including Keppel REIT’s strong performance in the first quarter of 2025 and its strategic asset management. The REIT reported a distributable income of S$53.4 million, aligning with expectations, despite a slight year-over-year decrease. This was partly due to a change in management fee policy, which, if unchanged, would have resulted in a 3.2% increase in distributable income.
Moreover, the REIT’s properties in Australia showed significant growth, with net property income increasing by 20.8% year-over-year, driven by higher occupancy rates and new acquisitions. Keppel REIT also demonstrated strong rental reversion and maintained a long weighted average lease expiry, which supports future income stability. The REIT offers an attractive distribution yield of 6.8%, which is higher than its peers, further justifying the Buy rating.
In another report released yesterday, CGS-CIMB also reiterated a Buy rating on the stock with a S$1.08 price target.