In FY2025, the REIT has some 13.4% leases that are up for renewal and, or review, as well as a further 21.5% of leases up for the same in FY2026. In its results briefing, the REIT manager said it still expects to achieve healthy rental reversions for these leases, given the low average expiring rents of its Singapore leases of $11.31/ $12.06 per sq ft in FY2025/FY2026, notes Lock.
CGS International analyst Lock Mun Yee has kept her “add” call on Keppel REIT even though the REIT’s distribution per unit (DPU) for the 2HFY2024 and FY2024 ended Dec 31, 2024, stood below her expectations.
Keppel REIT’s 2HFY2024 DPU fell by 3.4% y-o-y to 2.80 cents while FY2024 DPU also fell by 3.4% y-o-y to 5.60 cents. Both were below Lock’s full-year forecasts at 47.1% and 94.3% respectively due to higher interest costs.
