Keppel REIT (K71U) AI Stock Analysis

• Market Cap: $4.17B
• Dividend Yield: 7.45%
• Average Volume (3M): 9.08M
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.55
• Revenue Growth: 4.22%
• EPS Growth: 25.77%
• Country: SG
• Employees: 25
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 0.02
• Shares Outstanding: 4,013,866,700
• 10 Day Avg. Volume: 13,835,330
• 30 Day Avg. Volume: 9,081,558
• PEG Ratio: -0.73
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 12.70
• P/FCF Ratio: 17.58
• Enterprise Value/Market Cap: 1.60
• Enterprise Value/Revenue: 19.51
• Enterprise Value/Gross Profit: 20.21
• Enterprise Value/Ebitda: 28.84
• 1Y Price Target: $1.18
• Price Target Upside: 22.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: S$1.00 ▲(4.17% Upside)

Keppel REIT's overall stock score is primarily influenced by its strong profitability and stable financial position, despite challenges in revenue and cash flow growth. Technical analysis suggests potential for a price correction due to overbought signals. The high P/E ratio indicates possible overvaluation, but the attractive dividend yield provides a positive aspect for income-focused investors.

Positive Factors

Strong Profitability

High EBIT and net profit margins indicate effective cost management and operational efficiency, supporting long-term financial stability.

Strategic Financial Management

Reducing debt obligations through strategic redemption enhances financial structure and market positioning, supporting sustainable growth.

Financial Flexibility

Raising capital through new unit listing increases financial flexibility, enabling strategic investments and growth opportunities.

Negative Factors

Decline in Revenue Growth

A significant decline in revenue growth suggests challenges in maintaining income levels, potentially impacting long-term profitability.

Low Return on Equity

Low return on equity indicates limited profitability from shareholder investments, which may affect investor confidence and capital attraction.

Decreased Cash Flow

Reduced cash flow growth may limit future investment capabilities and affect the company's ability to fund operations and expansions.

Keppel REIT Business Overview & Revenue Model

Company Description

Keppel REIT (K71U) is a Singapore-based real estate investment trust that invests primarily in income-producing commercial properties, focusing on office and mixed-use developments in key cities across Asia-Pacific. The REIT aims to provide sustainable returns to its unitholders through a diversified portfolio of high-quality assets located in strategic locations, primarily in Singapore, Australia, and China. Keppel REIT's core services involve managing and optimizing its property portfolio to enhance rental income and capital appreciation.

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 occupancy of its properties. The REIT also benefits from regular rent reviews and escalations embedded in lease agreements, ensuring a steady increase in rental income over time. Additionally, Keppel REIT may earn income from property management services and ancillary services related to its properties. Strategic partnerships with reputable property managers and developers enhance its operational efficiency and property value. The company’s focus on high-demand markets and quality assets contributes to its ability to attract and retain tenants, thereby supporting its revenue generation.

Keppel REIT Financial Statement Overview

Summary

Keppel REIT demonstrates strong profitability with high EBIT and net profit margins, indicating operational efficiency. However, challenges are present in revenue growth and cash flow generation, with a decline in revenue growth rate and free cash flow. The balance sheet is stable with moderate leverage and a strong equity base, but the low return on equity suggests limited returns on shareholder investments.

Income Statement

Keppel REIT's income statement shows a decline in revenue growth rate by 17.57% in the latest year, indicating a potential challenge in maintaining revenue levels. However, the company maintains strong profitability with a high EBIT margin of 83.22% and a net profit margin of 41.46%, suggesting efficient cost management and operational effectiveness. The gross profit margin has decreased from 84.95% to 60.47%, which could be a concern if it continues to decline.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.51, indicating moderate leverage. The return on equity has decreased to 2.09%, which is relatively low, suggesting limited profitability from equity investments. The equity ratio stands at 61.38%, demonstrating a strong equity base relative to total assets, which provides a cushion against financial volatility.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow growth by 9.85%, which could impact future investment capabilities. The operating cash flow to net income ratio is 0.25, indicating that cash generation from operations is lower compared to net income. However, the free cash flow to net income ratio is nearly 1, suggesting that the company is effectively converting its net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	343.21M	261.58M	336.86M	319.98M	335.20M	170.22M
Gross Profit	331.29M	158.18M	288.61M	175.94M	172.53M	135.48M
EBITDA	232.16M	217.70M	273.04M	146.06M	126.89M	105.29M
Net Income	167.22M	108.44M	178.03M	414.84M	241.17M	-5.92M
Balance Sheet
Total Assets	8.35B	8.46B	8.26B	8.88B	8.49B	7.76B
Cash, Cash Equivalents and Short-Term Investments	108.81M	83.87M	149.84M	186.43M	178.68M	157.41M
Total Debt	2.63B	2.66B	2.34B	2.85B	2.73B	2.38B
Total Liabilities	2.81B	2.82B	2.51B	3.02B	2.90B	2.54B
Stockholders Equity	5.09B	5.19B	5.00B	5.42B	5.17B	4.80B
Cash Flow
Free Cash Flow	190.82M	188.98M	200.51M	162.22M	108.55M	93.73M
Operating Cash Flow	190.83M	188.99M	208.06M	162.23M	113.67M	104.46M
Investing Cash Flow	120.38M	-250.92M	492.82M	-46.38M	-383.13M	-219.88M
Financing Cash Flow	-311.79M	2.15M	-742.27M	-111.42M	303.35M	140.88M

Keppel REIT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 0.96 is below the 20-day moving average (MA) of 1.04, below the 50-day MA of 1.04, and above the 200-day MA of 0.91, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 22.36 is Positive, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:K71U.

Keppel REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
T82U	67 Neutral	$3.95B	-203.03	-0.32%	4.71%	0.01%	-110.22%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ME8U	64 Neutral	S$5.82B	17.54	6.70%	6.51%	-1.96%	175.59%
A17U	63 Neutral	$12.90B	17.54	6.96%	5.45%	2.35%	365.31%
C2PU	60 Neutral	$2.63B	30.58	5.49%	3.73%	2.55%	-23.99%
K71U	57 Neutral	$4.17B	25.37	3.21%	7.45%	4.22%	25.77%
TS0U	56 Neutral	S$1.90B	-24.82	-2.15%	6.03%	-11.65%	-137.98%

Keppel REIT Corporate Events

Keppel REIT Secures Favorable Tax Ruling for Perpetual Securities

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 programme. The IRAS has classified these securities as ‘debt securities’ for tax purposes, allowing them to qualify for certain tax concessions and exemptions. This ruling is expected to positively impact Keppel REIT’s financial operations by potentially reducing tax liabilities and enhancing returns for stakeholders.

Keppel REIT Issues S$100 Million Perpetual Securities

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 Exchange, are expected to enhance the trust’s financial flexibility and support its growth strategy, potentially impacting its market positioning and stakeholder value.

Keppel REIT Secures New Loan Facilities with Management Contingencies

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 repayment if Keppel REIT’s management changes and a suitable replacement from Keppel Capital Holdings or Keppel Ltd. is not appointed, impacting the company’s financial flexibility and operational stability.

Keppel REIT Prices S$100 Million Perpetual Securities to Bolster Financial Flexibility

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, asset enhancements, and general working capital purposes, potentially strengthening Keppel REIT’s financial position and operational capabilities.

Keppel REIT Issues Units for Management Fee Payment

Keppel REIT Management Limited has announced the issuance of 8,693,027 units at S$0.9981 per unit as part of its management fee payment for the period from 1 July 2025 to 30 September 2025. This move increases the company’s unitholding to approximately 5.35% of the total issued units, reflecting its strategy to manage fees through a combination of units and cash, which may impact its financial operations and stakeholder interests.

Keppel REIT Secures Approval for New Unit Listing to Raise S$113 Million

Keppel REIT has received in-principle approval from the Singapore Exchange Securities Trading Limited for the listing of 114,954,000 new units following a private placement. This move is part of a strategy to raise approximately S$113.0 million, with the funds intended for working capital and other corporate purposes. The approval is contingent upon compliance with specific SGX-ST listing requirements, and the new units will be listed on the Main Board of the SGX-ST. This development is significant for Keppel REIT as it enhances its financial flexibility and supports its growth strategy, potentially impacting its market positioning and stakeholder interests.

Keppel REIT Completes Redemption of S$300 Million Perpetual Securities

Keppel REIT Management Limited announced the successful redemption and cancellation of its S$300 million 3.150% subordinated perpetual securities. This move, executed under its S$2 billion multicurrency debt issuance programme, signifies a strategic financial management step, potentially impacting its financial structure and market positioning positively by reducing debt obligations.