Keppel Land

Keppel Land: Deutsche has sector report. Note that 2Q core earnings were broadly in line with house estimates, while headline earnings were boosted by revaluation and divestment gains. Residential sales momentum firmed domestically while rising more dramatically overseas, especially in China. Meanwhile, office occupancies rose marginally on the back of demand from smaller occupiers. Believe that capital deployment remains the key driver for NAV growth which could benefit developers with strong balance sheet capacity. House preferred picks are CMA and Keppel Land.