CGS-CIMB analyst Lock Mun Yee reiterated a Buy rating on Keppel REIT (KREVF – Research Report) yesterday and set a price target of S$1.08.
Lock Mun Yee’s rating is based on several positive indicators for Keppel REIT. The company reported a significant year-on-year increase in revenue and net property income for the first quarter of 2025, driven by contributions from properties in Australia and positive rental reversions. Despite a slight decline in distribution income due to higher interest costs and changes in management fee payments, the overall financial performance remains strong.
Additionally, Keppel REIT has maintained a high portfolio occupancy rate, with positive rental reversions expected to continue throughout the fiscal year. The management’s strategy to optimize the portfolio and improve capital efficiency further supports the positive outlook. While there are some risks related to tenant movements and hybrid work environments, the potential for increased occupancy and rental growth presents a compelling case for a Buy rating.
According to TipRanks, Mun Yee is a 2-star analyst with an average return of -0.5% and a 40.21% success rate. Mun Yee covers the Real Estate sector, focusing on stocks such as Keppel REIT, Ascott Residence, and ESR-REIT.
In another report released today, UOB Kay Hian also maintained a Buy rating on the stock with a S$1.06 price target.