0627 GMT - Keppel DC REIT is unlikely to rebound meaningfully any time soon, and is expected to remain weak after the trust significantly underperformed peers so far this year, Citi analysts say in a note. They cut their target price to S$1.91 from S$2.40 and keep a neutral call. The bank points to an overall "tough acquisition climate" for REITs this year and in 2023, as high interest rates raise REITs' financing costs for acquisitions and weigh on new projects' income contribution. Keppel DC REIT's larger-than-peers income exposure to overseas markets is another negative, given higher risk of an economic recession in markets such as the U.S. and Australia than Singapore. Units are flat at S$1.76. (yifan.wang@wsj.com)
(END) Dow Jones Newswires
December 23, 2022 01:27 ET (06:27 GMT)
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