Keppel REIT recently rolled out its results for the entire year, and there’s a lot to unpack. To start off, there are some concerning signals for the REIT, and I also think its current share price has climbed to a peak. From my perspective, Keppel Office REIT isn’t the most appealing investment right now. On the other hand, REITs outside Singapore, like Elite UK and Prime US, seem like better options—ironically, Keppel actually holds a stake in the Prime US REIT.
Let’s dive into a concise summary of the financial results for Keppel Singapore. Here are the key points:
– The dividend posted was 5.6 cents, marking a 3.4% decrease, with a yield of 6.3%. This was supported by a $20 million anniversary distribution stemming from capital gains, and they maintained a 100% payout ratio.
– The Net Asset Value (NAV) stands at $1.24.
– Leverage witnessed an increase, landing at 41.2%.
– The overall interest cost reached 3.4%.
In summary, although there has been growth in Net Property Income, the surge in interest costs has bitten into Keppel REIT’s distributable income. The drop in the Distribution Per Unit (DPU) is particularly concerning, and my biggest worry revolves around how this burden…
