Keppel REIT (SG:K71U)
SGX:K71U
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Keppel REIT
(SGX:K71U)
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Rating:65Neutral
Price Target:
S$1.00
▲(11.11% Upside)
Action:ReiteratedDate:02/06/26
The score is driven primarily by mixed financial performance (revenue declines, profit volatility, and higher 2025 leverage, but solid free cash flow) and a constructive earnings outlook (strong operating metrics and active capital management). Valuation is a clear positive (low P/E and high yield), while technical indicators point to weak near-term momentum.
Positive Factors
High occupancy and rental reversion
Near-full occupancy and double-digit rental reversion indicate durable demand for Keppel REIT’s core office assets, supporting recurring rental cash flows and negotiating leverage on renewals. Combined with WALE of 4.4 years (top-10 WALE 8.1 years), this underpins long-term income visibility and distribution sustainability.
Negative Factors
Elevated leverage from 2025 financing
A meaningful step-up in leverage during 2025 reduces financial flexibility and raises refinancing and interest-rate sensitivity risk. Higher debt burdens constrain capacity for opportunistic investments or distribution support, and increase vulnerability to higher borrowing costs or slower rent recovery over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High occupancy and rental reversion
Near-full occupancy and double-digit rental reversion indicate durable demand for Keppel REIT’s core office assets, supporting recurring rental cash flows and negotiating leverage on renewals. Combined with WALE of 4.4 years (top-10 WALE 8.1 years), this underpins long-term income visibility and distribution sustainability.
Read all positive factors
Keppel REIT (K71U) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$4.43B
Dividend Yield7.36%
Average Volume (3M)9.08M
Price to Earnings (P/E)8.4
Beta (1Y)0.53
Revenue Growth4.22%
EPS Growth25.85%
CountrySG
Employees25
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)0.02
Shares Outstanding4,955,087,000
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$1.06Price Target Upside17.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.04
Revenue Forecast (FY)S$312.58M
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 generates revenue primarily through leasing its commercial properties to tenants, which includes long-term leases with various corporations and businesses. The main revenue stream comes from rental income, which is derived from the occ...
Keppel REIT Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 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
0.90
Price Trends
0.94
Negative
0.97
Negative
0.95
Negative
Market Momentum
-0.01
Positive
38.99
Neutral
40.08
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 0.9 is below the 20-day moving average (MA) of 0.91, below the 50-day MA of 0.94, and below the 200-day MA of 0.95, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 38.99 is Neutral, neither overbought nor oversold. The STOCH value of 40.08 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$5.09B | 16.53 | 3.20% | 1.42% | 8.44% | 41.63% | |
70 Outperform | S$17.69B | 18.93 | 5.88% | 5.26% | 0.17% | 8.05% | |
68 Neutral | S$7.02B | 21.59 | 7.29% | 5.50% | -6.34% | 49.60% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | S$4.43B | 8.38 | 8.90% | 7.36% | 4.22% | 25.85% | |
62 Neutral | S$4.34B | ― | -0.08% | 4.55% | 0.01% | -110.22% | |
57 Neutral | S$1.96B | 69.70 | -2.15% | 6.03% | -11.65% | -137.98% |
* Real Estate Sector Average
SG:K71U
Keppel REIT
0.90
0.14
18.42%
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2.33
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SG:N2IU
Mapletree Pan Asia Commercial Trust
1.33
0.21
18.64%
SG:T82U
Suntec Real Estate Investment
1.49
0.43
40.57%
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Singapore Land Group Limited
3.61
1.80
99.67%
SG:TS0U
OUE Commercial Real Estate Investment Trust
0.36
0.11
43.15%
Keppel REIT Corporate Events
Keppel REIT Fully Deploys S$886.3 Million Preferential Offer Proceeds to Fund MBFC Tower 3 Stake
Jan 21, 2026
Keppel REIT has fully utilised the S$886.3 million in gross proceeds raised from its underwritten non-renounceable preferential offering to repay the equity bridge loan used to fund the acquisition of an additional one-third interest in Marina Bay...
Keppel REIT Lists 923 Million New Units After Preferential Offering
Jan 19, 2026
Keppel REIT has issued 923,189,327 new units at S$0.96 per unit under its pro-rata, non-renounceable preferential offering, which was launched on the basis of 23 new units for every 100 existing units held as at 22 December 2025. Following this is...
Keppel REIT Sees Strong Unitholder Take-Up in S$886 Million Preferential Offering
Jan 13, 2026
Keppel REIT has announced the results of its pro-rata, non-renounceable preferential offering of 923.2 million new units at S$0.96 per unit, launched to raise approximately S$886.3 million. As at the close of the offer on 9 January 2026, the trust...
Keppel REIT Banks on Long-Term Upside from Bigger Stake in Marina Bay Financial Centre Tower 3
Jan 2, 2026
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 co...
Keppel REIT Begins Despatch of Documents for S$886 Million Preferential Offering
Dec 26, 2025
Keppel REIT has commenced the despatch of an instruction booklet, application forms and provisional allotment letters to entitled unitholders as part of its previously announced underwritten, non-renounceable preferential offering. The offering wi...
Keppel REIT Secures S$892 Million in Bridge Loans with Change-of-Control Conditions
Dec 24, 2025
Keppel REIT, through its wholly owned subsidiary Keppel REIT Fin. Company Pte. Ltd., has secured three Singapore dollar-denominated bridge loan facilities totalling roughly S$892 million, each guaranteed by the REIT’s trustee. The facilities...
Keppel REIT Launches S$886.3 Million Preferential Offering
Dec 11, 2025
Keppel REIT has announced the launch of an underwritten non-renounceable preferential offering to raise approximately S$886.3 million. The offering is priced at S$0.96 per new unit, representing a 6.8% discount to the volume-weighted average price...
Keppel REIT Announces S$886.3 Million Preferential Offering
Dec 11, 2025
Keppel REIT has announced a preferential offering to raise approximately S$886.3 million, with the record date set for December 22, 2025. The new units from this offering will be listed on the SGX-ST on January 19, 2026, and will rank equally with...
Keppel REIT Secures Favorable Tax Ruling for Perpetual Securities
Dec 3, 2025
Keppel REIT Management Limited announced that it has obtained a favorable tax ruling from the Inland Revenue Authority of Singapore (IRAS) regarding its S$300,000,000 subordinated perpetual securities issued under its multicurrency debt issuance p...
Keppel REIT Issues S$100 Million Perpetual Securities
Nov 27, 2025
Keppel REIT has announced the issuance of S$100,000,000 in subordinated perpetual securities under its S$2,000,000,000 multicurrency debt issuance programme. The securities, which have received approval-in-principle for listing on the Singapore Ex...
Keppel REIT Secures New Loan Facilities with Management Contingencies
Nov 25, 2025
Keppel REIT has secured three loan facilities guaranteed by HSBC Institutional Trust Services, with specific conditions related to changes in management or shareholding. These facilities, totaling A$240 million and S$200 million, require immediate...
Keppel REIT Prices S$100 Million Perpetual Securities to Bolster Financial Flexibility
Nov 19, 2025
Keppel REIT has announced the pricing of S$100 million 3.28% subordinated perpetual securities under its S$2 billion multicurrency debt issuance programme. The proceeds from this issuance will be used for financing or refinancing acquisitions, ass...
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.