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Buy Rating Affirmed for Keppel REIT on Strategic Sydney Property Acquisition and Solid Financials – TipRanks Financial Blog

E Split Corp. Completes Overnight Offering – TipRanks Financial Blog

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Jonathan Koh, an analyst from UOB Kay Hian, maintained the Buy rating on Keppel REIT (KREVFResearch Report). The associated price target was raised to S$1.26.

Jonathan Koh has given his Buy rating due to a combination of factors related to Keppel REIT’s promising investment moves and stable financial outlook. Koh recognizes the strategic merit of Keppel REIT’s acquisition of a 50% interest in the 255 George Street property. He highlights the property’s competitive edge due to its prime location in Sydney’s Core Precinct, which facilitates easy access to major transportation hubs. Furthermore, the property has recently undergone a significant refurbishment, which further enhances its appeal to potential high-quality tenants.

The analyst also notes the diversified and stable tenant base, anchored by reputable entities such as the Australian Tax Office and the Bank of Queensland, which contributes to a robust occupancy rate and a favorable weighted average lease expiry (WALE). Financially, Keppel REIT is positioned attractively with a high distribution yield and a price-to-net asset value (P/NAV) ratio that suggests the stock is undervalued. The overall market recovery in Sydney, especially in the Core Precinct, and the expected rental growth support a positive outlook for Keppel REIT’s investment, justifying the Buy rating and the target price set by Jonathan Koh.

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Keppel REIT (KREVF) Company Description:

Keppel REIT, or KREIT, is a commercial real estate investment trust with properties valued at about SGD 8 billion across Singapore, Australia and South Korea. In Singapore, its portfolio consists of a 79.9% stake in Ocean Financial Centre, a 33.33% stake in Marina Bay Financial Centre and a 33.33% stake in One Raffles Quay. In Australia, it owns a 50% stake in five properties, which includes 8 Chifley Square in Sydney, 275 George Street in Brisbane, David Malcolm Justice Centre in Perth as well as 8 Exhibition Street and 311 Spencer Street in Melbourne. In South Korea, it owns around 99.4% of T Tower in Seoul. The trust is externally managed by Keppel REIT Management Limited, a subsidiary of Keppel Capital.

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