| UOB KAYHIAN |
PHILLIP SECURITIES |
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Keppel REIT (KREIT SP) 1Q19: Good Momentum Despite New Challenges
1Q19 results were in line, with DPU of 1.39 S cents/share at 24.1% of our full-year estimate. KREIT continues to achieve high overall occupancy (98.7%) and positive rental reversion (14.4%). Rising office rents on the back of firm leasing momentum (amid tight forward supply) should underpin earnings. A near-term challenge is UBS vacating its ORQ premises in Dec 20, which will create a void period (fit-out periods). Maintain BUY and target price of S$1.35.
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Keppel DC REIT Sowing seeds through proactive management
SINGAPORE|REAL ESTATE(REIT)|1Q19 RESULTS Healthy portfolio occupancy of 93.2% and long WALE of 8.0 years. Lower cost of debt due to new issue of MTN and early refinancing of loan Revenue uplift from 2 AEIs on pre-committed lease and increase in power utilisation, 1 AEI to increase energy efficiency Maintain ACCUMULATE; new target price of $1.59 (previously $1.52)
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| UOB KAYHIAN | CGS CIMB |
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Singapore Press Holdings (SPH SP) Selectively Scaling Up
SPH acquired three new student accommodation assets which add 1,243 beds to its portfolio and bring total AUM to above S$600m. Recent acquisitions appear more selective, with SPH electing for investments in cities with upper-mid-tier universities, which have more dependable demand. Inorganic expansion is gaining momentum as the group works towards building up a defensive portfolio. Maintain BUY with a revised SOTP-based target price of $2.86.
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Property - Overall CGS-CIMB’s Real Estate Day wrap-up
■ We continue to see strong investor interest in property companies spanning across the value chain. ■ Outlook for the Singapore private residential market remains stable while overseas diversification remains one of the key strategies. ■ Maintain sector Overweight. Top picks – UOL, CAPL, CIT.
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