Keppel REIT

UOBKayhian on 17 Oct 2014

FY14F PE (x): 23.3
FY15F PE (x): 23.0
Results in line with expectations. Keppel REIT (KREIT) reported a DPU of 1.85 S
cents/share (-6.1% yoy, -2.6% qoq) as higher property income was offset by lower
rental support, higher finance costs and management fees together with dilution from
the share placements. Results were in line with expectations, with 9M14 DPU
representing 73.3% of our forecast.
Maintain BUY with an unchanged target of S$1.42, based on DDM (required rate of
return: 7.1%, terminal growth: 2.2%).