Company Reports

Keppel REIT is a commercial real estate investment trust with SGD 11.8 billion of office assets (as of June 30, 2026) spread across Singapore, Australia, South Korea, and Japan. Most of its assets are Grade A office buildings in central business districts, where they are highly coveted for quality office space and proximity to businesses and key transport nodes. This enables Keppel REIT to command premium rent while maintaining high occupancy rates. In addition, its tenant base is one of the best in class, with government agencies and international banks in its register.

Keppel REIT's distributable income rose 25.2% year on year in the first half of 2026, driven by the Top Ryde and MBFC Tower 3 acquisitions. However, distribution per unit, or DPU, fell 4.0% to SGD 0.026 as the SGD 886 million rights issue for the MBFC Tower 3 acquisition diluted distributions.

Keppel REIT’s first-quarter 2026 property income and net property income grew 14.4% and 9.7% year on year, respectively. The growth was primarily driven by the Top Ryde City Shopping Centre acquisition and increased occupancy at Ocean Financial Centre.

Keppel REIT's second-half 2025 net property income rose 2.4% year on year, supported by higher contributions from Ocean Financial Centre and 2 Blue Street. However, distribution per unit, or DPU, fell 10.4% year on year due to equity issuances in October and December 2025.

Keppel REIT is a commercial real estate investment trust with SGD 11.7 billion of office assets (as of Dec. 31, 2025) spread across Singapore, Australia, South Korea, and Japan. Most of its assets are Grade A office buildings in central business districts, where they are highly coveted for quality office space and proximity to businesses and key transport nodes. This enables Keppel REIT to command premium rent while maintaining high occupancy rates. In addition, its tenant base is one of the best in class, with government agencies and international banks in its register.

Keppel REIT is a pure-play commercial real estate investment trust with SGD 9.4 billion of office assets (as of June 30, 2025) spread across Singapore, Australia, South Korea, and Japan. Most of its assets are income-producing, with one office building in Sydney currently under development. Most of its assets are Grade A office buildings in central business districts, where they are highly coveted for quality office space and proximity to businesses and key transport nodes. This enables Keppel REIT to command premium rent while maintaining high occupancy rates. In addition, its tenant base is one of the best in class, with government agencies and international banks in its register.

Keppel REIT will acquire a one-third stake in Marina Bay Financial Centre Tower 3 from Hongkong Land for SGD 938 million. The deal is priced 1% below its independent valuation, and the trust is raising SGD 886 million of equity at an issue price of SGD 0.96 per unit to finance the deal.

Keppel REIT's year-to-September 2025 net property income rose 8.6% year on year, driven by stronger contributions from 255 George Street and improved occupancy at 2 Blue Street. Assuming 100% of management fees are paid in units, distributable income would have risen 6.7%.

Keppel REIT is a pure-play commercial real estate investment trust with SGD 9.4 billion of office assets (as of June 30, 2025) spread across Singapore, Australia, South Korea, and Japan. Most of its assets are income-producing, with one office building in Sydney currently under development. Most of its assets are Grade A office buildings in central business districts, where they are highly coveted for quality office space and proximity to businesses and key transport nodes. This enables Keppel REIT to command premium rent while maintaining high occupancy rates. In addition, its tenant base is one of the best in class, with government agencies and international banks in its register.

Keppel REIT is acquiring a 75% stake in its first pure-play retail asset, Top Ryde City Shopping Centre, in Sydney, Australia for SGD 335 million. The acquisition will be funded through a mix of debt, perpetual securities, and an equity raise of SGD 113 million.

Keppel REIT is a pure-play commercial real estate investment trust with SGD 9.4 billion of office assets (as of June 30, 2025) spread across Singapore, Australia, South Korea, and Japan. Most of its assets are income-producing, with one office building in Sydney currently under development. Most of its assets are Grade A office buildings in central business districts, where they are highly coveted for quality office space and proximity to businesses and key transport nodes. This enables Keppel REIT to command premium rent while maintaining high occupancy rates. In addition, its tenant base is one of the best in class, with government agencies and international banks in its register.

Keppel REIT's first-half 2025 net property income rose 11.8% year on year, driven by higher contributions from 225 George Street and 2 Blue Street in Australia. However, distribution per unit, or DPU, fell 2.9%, as management opted to receive 25% of its fees in cash.

Keppel REIT’s first-quarter net property income rose 13.3% year on year to SGD 54.6 million, driven by contributions from 255 George Street and 2 Blue Street. The share of results from its associates increased 11.0%, underpinned by higher rental income. However, distributable income from operations fell 3.5% due to higher borrowing costs from the refinancing done in 2024 and from an increase in debt taken on to acquire 255 George Street. As the business update was in line with our expectations, we maintain our fair value estimate of SGD 1.16 per unit. While US tariffs create uncertainty in the leasing market, we think the risks are priced in for the trust. We view Keppel REIT as undervalued, trading at an attractive 2025 dividend yield of 6.8%. We expect the trust’s long-weighted average lease expiration of 4.7 years to help it weather any near-term economic weakness.

Keppel REIT is a pure-play commercial real estate investment trust with SGD 9.5 billion of office assets (as of Dec. 31, 2024) spread across Singapore, Australia, South Korea, and Japan. Most of its assets are income-producing, with one office building in Sydney currently under development. Most of its assets are Grade A office buildings in central business districts, where they are highly coveted for quality office space and proximity to businesses and key transport nodes. This enables Keppel REIT to command premium rent while maintaining high occupancy rates. In addition, its tenant base is one of the best in class, with government agencies and international banks in its register.

Keppel REIT is a pure-play commercial real estate investment trust with SGD 9.5 billion of office assets (as of Dec. 31, 2024) spread across Singapore, Australia, South Korea, and Japan. Most of its assets are income-producing, with one office building in Sydney currently under development. Most of its assets are Grade A office buildings located in central business districts, where they are highly coveted for quality office space and proximity to businesses and key transport nodes. This enables Keppel REIT to command premium rent while maintaining high occupancy rates. In addition, its tenant base is one of the best in class, with government agencies and international banks in its register.

We retain our fair value estimate of SGD 1.16 per unit for Keppel REIT after an in-line second-half 2024 performance. However, our distribution per unit, or DPU, forecasts for 2025-27 were lowered by 5.0%-6.9% after updating our assumptions to account for increased borrowing costs, higher distributions to perpetual securities upon reset, and the latest change in management fees. The REIT manager is electing to receive 25% of its fees in cash and 75% of its fees in units from 2025 onward, compared with the current 100% in units. Management shared that this move is in line with market practice. In our view, this move could result in lower distributions in the near term but helps decrease the dilution to unitholders over time due to a slower unit base expansion. Despite lower DPU estimates, the trust still trades at an attractive 6.7% distribution yield for 2025 and remains our top pick for Singapore REITs. We like the REIT for its high-quality office portfolio, and we see it as a key beneficiary of a favorable Singapore office market that is tightening due to limited supply.

Keppel REIT’s third-quarter 2024 business update was in line with our expectations, and we keep our fair value estimate of SGD 1.16 per unit. The trust trades at an attractive 2025 dividend yield of 6.4% and remains our top pick among Singapore REITs. We like the trust for its high-quality office portfolio and believe it would be a strong beneficiary of interest-rate cuts through 2025-26.

Keppel REIT is a pure-play commercial real estate investment trust with SGD 9.6 billion of office assets (as of June 30, 2024) spread across Singapore, Australia, South Korea, and Japan. Most of its assets are income-producing, with one office building in Sydney currently under development. Most of its assets are Grade A office buildings located in central business districts, where they are highly coveted for quality office space and proximity to businesses and key transport nodes. This enables Keppel REIT to command premium rent while maintaining high occupancy rates. In addition, its tenant base is one of the best in class, with government agencies and international banks in its register.

Keppel REIT’s first-half 2024 results were slightly below our expectations as distribution per unit fell 3.4% year on year to SGD 0.028. The miss was mainly due to lower-than-expected net property income margins for its Australian investment properties and higher-than-expected borrowing costs as interest rates remain elevated. After updating our model to incorporate the weaker results, our 2024-26 DPU estimates were lowered by 3.0%-3.3%. Our fair value estimate of SGD 1.16 per unit remains. In our view, the REIT is still undervalued, and trades at an attractive 2024 distribution yield of 6.4%. Although we expect the weak near-term office demand in Singapore to persist through 2024, we expect interest rates to pivot from September 2024 onward to drive global economic growth and demand recovery for office spaces in 2025.

We maintain our fair value estimate of SGD 1.16 per unit for Keppel REIT after the trust’s in-line first-quarter 2024 business update. Net property income grew 7.2% year on year on the back of higher rentals from Ocean Financial Centre and contributions from 2 Blue St., which completed its development in April 2023. However, distributable income remained flat year on year due to higher borrowing costs. The portfolio occupancy rate stayed healthy at 96.4% as of March 31, 2024, and the trust registered a positive rental reversion of 10.9% during the quarter. That said, occupancy rates for two of its Australian properties, 8 Exhibition St. and Pinnacle Office Park, were below 90% as of March 31, 2024. For 8 Exhibition St., the drop in occupancy was due to a major tenant's nonrenewal. Management said that half of the vacated space is under negotiation and it hopes to lease the vacant space by the end of 2024. As for Pinnacle Office Park, the trust completed the speculative suites' fitout in February 2024, ahead of schedule. According to management, the suites are being well received by prospective tenants, and more than half of the space has been committed or is under offer.