Keppel REIT (SG:K71U)
SGX:K71U
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Keppel REIT
(SGX:K71U)
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Rating:63Neutral
Price Target:
S$0.92
▲(0.11% Upside)
Action:Reiterated
Date:05/20/26
The score is supported by attractive valuation (very low P/E and high dividend yield) and generally solid cash generation, but is held back by weak technicals (downtrend with negative MACD and low RSI) and mixed fundamentals including declining recent revenue and higher leverage in 2025.
Positive Factors
Improving Cash Generation
Keppel REIT's operating cash flow increased in 2025 and free cash flow rose about 26% YoY, with FCF consistently positive across periods. Durable positive cash generation supports recurring distributions, routine capex and refinancing needs, providing a buffer through office-cycle volatility.
Negative Factors
Higher Leverage in 2025
Leverage rose materially to about 0.81 debt-to-equity in 2025, increasing interest-rate and refinancing sensitivity. Structurally higher debt reduces financial flexibility, raises fixed financing costs and heightens the risk that distribution capacity and capital expenditure plans are constrained if cash flows weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Cash Generation
Keppel REIT's operating cash flow increased in 2025 and free cash flow rose about 26% YoY, with FCF consistently positive across periods. Durable positive cash generation supports recurring distributions, routine capex and refinancing needs, providing a buffer through office-cycle volatility.
Read all positive factors
Keppel REIT (K71U) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$4.35B
Dividend Yield7.36%
Average Volume (3M)9.08M
Price to Earnings (P/E)2.6
Beta (1Y)0.50
Revenue Growth-0.43%
EPS Growth337.21%
CountrySG
Employees25
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)0.11
Shares Outstanding4,967,343,800
10 Day Avg. Volume13,835,330
30 Day Avg. Volume9,081,558
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.74
Price to Sales (P/S)13.51
P/FCF Ratio15.82
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$1.05Price Target Upside14.13% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.04
Revenue Forecast (FY)S$316.20M
Keppel REIT Business Overview & Revenue Model
Company Description
Listed by way of an introduction on 28 April 2006, Keppel REIT is one of Asia's leading REITs with a portfolio of Grade A commercial assets in key business districts pan-Asia. Keppel REIT's objective is to generate stable income and long-term grow...
How the Company Makes Money
Keppel REIT makes money mainly by earning rental and related property income from leasing office space in its portfolio properties. Tenants (typically corporate occupiers) pay contracted base rent under lease agreements, which forms the largest re...
Keppel REIT Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a broadly positive operational and strategic picture: strong NPI and property income growth, high portfolio occupancy, significant portfolio valuation recovery, meaningful rental reversion and successful strategic acquisitions that diversify income. Management also made progress on capital management (repaying equity bridge loans, stable interest coverage, targets to lower WACD) and delivered ESG milestones. Offsetting this were timing effects that compressed reported DI and short-period DPU (cash management fee payments and enlarged unit base), a temporarily elevated leverage ratio from acquisition financing, modest borrowing cost pressure from higher loan principal, some North Asia currency headwinds and delayed lease start dates for certain income contributors. Overall, the positive operating momentum, valuation gains and clear capital management actions outweigh the transitory financial and timing headwinds.Positive Updates
Strong NPI and Property Income Growth
Net property income (NPI) rose 6.9% year-on-year and property income increased 4.9% year-on-year for FY2025, driven by contributions from 255 George Street and higher occupancy at 2 Blue Street.
Negative Updates
Underlying DPU and DI Pressures
Distribution per unit for the short distribution period (17 Oct–31 Dec 2025) was lower due to enlarged unit base from private placement and preferential offering and late completion of acquisitions. DI from operations decreased 1.1% year-on-year to $192.4 million, primarily due to payment of 25% of management fees in cash (but would have increased 6.3% if fees were paid fully in units).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong NPI and Property Income Growth
Net property income (NPI) rose 6.9% year-on-year and property income increased 4.9% year-on-year for FY2025, driven by contributions from 255 George Street and higher occupancy at 2 Blue Street.
Read all positive updates
Company Guidance
Management guided a clear focus on organic growth, cost control and lowering borrowing costs in 2026 while flagging key metrics: FY2025 NPI +6.9% YoY (property income +4.9%), share of results +13.3%, DI from operations down 1.1% to $192.4m (would be +6.3% YoY if management fees paid entirely in units), FY2025 DPU $0.0523 (H1 $0.0272; advance $0.0163; short‑period $0.0088), adjusted NAV/unit $1.27 and aggregate leverage 47.9% (would have been 40.4% pro forma using preferential‑offering proceeds); WACD was 3.41% in 2025 with a 2026 cost‑of‑debt target of low 3%–3.3%, interest coverage 2.6x, fixed‑rate debt 53% (62% ex‑EBL) and sustainability‑linked funding 67% (79% ex‑EBL, above the 75% target); portfolio committed occupancy 96.7%, portfolio rental reversion 11.5% (Singapore 10.7%), WALE 4.4 years (top 10 WALE 8.1 years), ~1.7m sqft of leases committed in 2025, overall portfolio valuation +22.3% (Singapore +25.2%, ex‑MBFC +5.5%; Australia +19.3% local / +15.2% SGD; North Asia mixed; excl acquisitions +3.4%), H1‑2026 maturities ~27% of debt, equity bridge loans (~$890m) repaid 20 Jan, medium‑term note ~3.72%, and sustainability targets extended to net‑zero Scope 1 & 2 by 2050 (all assets green‑certified except Top Ryde).Keppel REIT Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 281.69M | 261.58M | 336.86M | 319.98M | 335.20M |
| Gross Profit | 157.07M | 158.18M | 288.61M | 175.94M | 172.53M |
| EBITDA | 143.77M | 217.70M | 273.04M | 146.06M | 126.89M |
| Net Income | 454.44M | 108.44M | 178.03M | 414.84M | 241.17M |
Balance Sheet | |||||
| Total Assets | 9.98B | 8.46B | 8.26B | 8.88B | 8.49B |
| Cash, Cash Equivalents and Short-Term Investments | 140.44M | 83.87M | 149.84M | 186.43M | 178.68M |
| Total Debt | 4.16B | 2.66B | 2.34B | 2.85B | 2.73B |
| Total Liabilities | 4.37B | 2.82B | 2.51B | 3.02B | 2.90B |
| Stockholders Equity | 5.12B | 5.19B | 5.00B | 5.42B | 5.17B |
Cash Flow | |||||
| Free Cash Flow | 240.63M | 188.98M | 200.51M | 162.22M | 108.55M |
| Operating Cash Flow | 254.73M | 188.99M | 208.06M | 162.23M | 113.67M |
| Investing Cash Flow | -1.25B | -250.92M | 492.82M | -46.38M | -383.13M |
| Financing Cash Flow | 1.05B | 2.15M | -742.27M | -111.42M | 303.35M |
Keppel REIT Technical Analysis
Negative
0.92
Price Trends
0.90
Negative
0.93
Negative
0.96
Negative
Market Momentum
-0.01
Positive
34.39
Neutral
37.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:K71U, the sentiment is Negative. The current price of 0.92 is above the 20-day moving average (MA) of 0.89, above the 50-day MA of 0.90, and below the 200-day MA of 0.96, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 34.39 is Neutral, neither overbought nor oversold. The STOCH value of 37.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:K71U.
Keppel REIT Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | S$5.16B | 7.01 | 3.20% | 1.42% | 6.89% | -4.23% | |
70 Outperform | S$18.05B | 18.93 | 5.88% | 5.26% | 1.66% | -6.80% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | S$6.61B | -65.25 | 2.82% | 5.50% | -4.61% | -55.41% | |
63 Neutral | S$4.35B | 2.57 | 8.90% | 7.36% | -0.43% | 337.21% | |
62 Neutral | S$4.26B | ― | -0.38% | 4.55% | 1.45% | 39.79% | |
57 Neutral | S$1.96B | ― | -0.48% | 6.03% | -7.25% | ― |
* Real Estate Sector Average
SG:K71U
Keppel REIT
0.87
0.06
7.19%
SG:C38U
CapitaLand Integrated Commercial Trust
2.25
0.30
15.44%
SG:N2IU
Mapletree Pan Asia Commercial Trust
1.24
0.13
11.41%
SG:T82U
Suntec Real Estate Investment
1.42
0.35
32.59%
SG:U06
Singapore Land Group Limited
3.55
1.58
80.57%
SG:TS0U
OUE Commercial Real Estate Investment Trust
0.35
0.09
33.59%
Keppel REIT Corporate Events
Keppel REIT Defends Acquisition and Leverage Strategy at 2026 AGM
May 13, 2026
At its 2026 annual general meeting, Keppel REIT’s management addressed unitholders’ concerns over recent acquisitions, notably the Top Ryde City Shopping Centre in Australia and Marina Bay Financial Centre Tower 3 in Singapore. Managem...
Keppel REIT Manager Boosts Stake via Fee Paid in Units
Apr 30, 2026
Keppel REIT has issued 12,256,676 new units at S$0.9043 each to its manager, Keppel REIT Management Limited, as partial payment of the base management fee for the period from 1 January to 31 March 2026. The issue price was based on the volume weig...
Keppel REIT boosts 1Q 2026 income on MBFC and Top Ryde deals
Apr 21, 2026
Keppel REIT reported a stronger first quarter of 2026, with higher property income, net property income and distributable income driven by the December 2025 acquisitions of a 75% stake in Top Ryde City Shopping Centre and an additional one-third i...
Keppel REIT Secures Favourable Tax Ruling on S$100 Million Perpetual Securities
Apr 21, 2026
Keppel REIT Management Limited announced that Singapore’s Inland Revenue Authority has issued an advance tax ruling on its S$100 million 3.28% subordinated perpetual securities issued in November 2025 under its multicurrency debt issuance pr...
Keppel REIT Secures S$100 Million Term Loan with Change-of-Control Covenants
Feb 27, 2026
Keppel REIT has secured a S$100 million term loan facility maturing on 27 February 2026 through its wholly owned subsidiary Keppel REIT Fin. Company Pte. Ltd., with HSBC Institutional Trust Services (Singapore) Limited acting as guarantor in its c...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.