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Keppel REIT and Keppel DC REIT

Keppel Corp continued to hog the headlines with the privatisation of Keppel Land. The chart also left behind the foot prints on people who are in the know... as evidenced by the increase in volume and share price prior to the halt and announcement. There are just too many people who may have "access" to the information, such as lawyers, investment bankers, corporate insiders etc and to be fair, such information are too difficult to control. The only thing the company could do was to suspend the share trading early and they did that 2 days ahead of their earnings announcement.  Anyway, I will leave that story for another day.


Keppel REIT announced its full year results for FY2014.


While the headline figures may not look good with DPU dipping by 8.2%, in my view, the results are actually ok. Currently i have 50,000 shares invested at $1.205 late last year.

Key Positives
  • The last quarter results only consist of 2 weeks results from MBFC Tower 3. It will have full quarter contribution going forward
  • Commercial rents continue to stay resilient and the rental revisions are done at higher prices.
  • Keppel REIT has one of the youngest and largest portfolio of Grade A office space
  • All in interest rates continue to be manageable at around 2.23%
  • NAV per unit is ~ $1.41 (versus the last trading price of $1.235)
Key Concerns
  • High gearing of 43.3%
  • Weakening of AUD against SGD from its Australian portfolio
  • They only partially own some of the key buildings. Asset enhancement projects will be more difficult if they don't have the controlling stakes in those buildings
Distribution Details

I like the quarterly distributions from Keppel REIT. Based on the announcements, i will get a distribution in February.

Portfolio

The feeling is not bad... as if you owned some prime office buildings in downtown Singapore.


Share price chart


Keppel DC REIT



Seemed like this stock is off to a good start after my entry at 96.5 cents.

Happy SRSing.


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