Keppel REIT

Keppel REIT: OSK-DMG initiates at Buy with TP $1.66. Expects KREIT to rerate over the medium term, as its portfolio will likely benefit from Singapore's low incoming supply of new commercial assets and its high yielding Australian assets. Believes the recent share price drop is an overreaction, sees an excellent opportunity to accumulate with substantial upside. Notes KREIT is currently trading at a compelling 6.8% FY13e yield, and at a substantial 15% discount to peers Suntec and CCT.