Keppel REIT's South Korea Exit Could be Beneficial over Longer Term

Dow Jones09-24

0432 GMT - Keppel REIT's exit from the South Korean market will likely benefit the real-estate investment trust over the longer term, as it simplifies its portfolio and sharpens its core market focus, Wilson Ng of Jefferies says. The REIT's portfolio will comprise solely Singapore and Australia assets after the sale of its Seoul office stake, Ng writes. However, he expects Keppel REIT's distribution per unit to decline for the fourth consecutive year, while anniversary-related top-ups are likely to taper off. He therefore sees few catalysts for its annual DPU to recover meaningfully. He trims his 2026-2028 DPU forecasts by 0.4%-0.7%. Jefferies cuts its target price to 85 Singapore cents from S$0.90 and retains a hold rating. Units fall 1.2% to S$0.85.

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