Keppel REIT's Office Tower Buy Rare Opportunity Despite DPU Dilution -- Market Talk

Dow Jones12-15

0250 GMT - Keppel REIT's acquisition of a one-third stake in a Singapore office tower is a rare opportunity for it to deepen exposure to a prime asset amid limited office supply in the city-state, says Morningstar's Xavier Lee in a note. He believes the office tower could gain from resilient demand for prime office space in Singapore and offers strong potential for capital appreciation. Still, the analyst anticipates the deal to initially dilute the trust's distribution per unit, contributing to Lee cutting his 2026-2027 DPU estimates by 7.4%-7.9%. Morningstar also trims its fair-value estimate for Keppel REIT to S$1.10 from S$1.16 given that the trust's equity fundraising to finance the deal could dilute its units. Units gain 0.5% to S$0.965. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

December 14, 2025 21:50 ET (02:50 GMT)

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Still, the analyst anticipates the deal to initially dilute the trust's distribution per unit, contributing to Lee cutting his 2026-2027 DPU estimates by 7.4%-7.9%. Morningstar also trims its fair-value estimate for Keppel REIT to S$1.10 from S$1.16 given that the trust's equity fundraising to finance the deal could dilute its units. Units gain 0.5% to S$0.965. 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He believes the office tower could gain from resilient demand for prime office space in Singapore and offers strong potential for capital appreciation. Still, the analyst anticipates the deal to initially dilute the trust's distribution per unit, contributing to Lee cutting his 2026-2027 DPU estimates by 7.4%-7.9%. Morningstar also trims its fair-value estimate for Keppel REIT to S$1.10 from S$1.16 given that the trust's equity fundraising to finance the deal could dilute its units. Units gain 0.5% to S$0.965. (megan.cheah@wsj.com) \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  December 14, 2025 21:50 ET (02:50 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SG9999002679.SGD","symbol_name":"LionGlobal Singapore Balanced SGD","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2591769943","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2591769943","pubTimestamp":1765767000,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0250 GMT - Keppel REIT's acquisition of a one-third stake in a Singapore office tower is a rare opportunity for it to deepen exposure to a prime asset amid limited office supply in the city-state, says Morningstar's Xavier Lee in a note. 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He believes the office tower could gain from resilient demand for prime office space in Singapore and offers strong potential for capital appreciation. Still, the analyst anticipates the deal to initially dilute the trust's distribution per unit, contributing to Lee cutting his 2026-2027 DPU estimates by 7.4%-7.9%. Morningstar also trims its fair-value estimate for Keppel REIT to S$1.10 from S$1.16 given that the trust's equity fundraising to finance the deal could dilute its units. Units gain 0.5% to S$0.965. 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