In their Oct 17 report, CGS-CIMB analysts Natalie Ong and Lock Mun Yee note that the REIT’s 3QFY2023 ended Sept 30 business update reflected an “operationally resilient” business with positive reversions and high occupancy. The REIT secured positive reversions for new and renewed leases in Singapore, Australia, Ireland and the Netherlands while rental reversions ranged from positive single-digit to low double-digit growths.
Analysts from CGS-CIMB Research, Citi Research, DBS Group Research have kept their calls and target prices on Keppel DC REIT, even though 3QFY2023 distribution per unit (DPU) that was down 3.6% y-o-y to 2.492 cents, as the results met their expectations. On the other hand, OCBC Investment Research (OIR) has lowered its estimates and target price.
CGS-CIMB and DBS are more positive about the REIT with their “add” and “buy” calls and respective target prices of $2.53 and $2.45 while Citi and OIR are sitting on the fence. Citi has a “neutral” call with a target price of $2.16 while OIR has a “hold” call with a fair value estimate of $2.02, down from $2.05.
