Keppel REIT

Keppel REIT: 1Q13 results was in-line, with Keppel Reit registered a 20.7% yoy increase in NPI to $34.4m in 1Q13, as higher occupancies and full yr contributions from Ocean Financial Centre, and 77 King Street in Sydney led to the rise of 13.2% yoy in property income, which grew to $41.4m. Distributable income for 1Q 2013 increased 7.6% yoy to S$52.2m, while DPU for 1Q13 stood at 1.97c, 3.7% higher yoy, while an annualized DPU of 7.99c was 4.6% higher than it was a year ago. Overall committed portfolio occupancy increased to approximately 99%t; four out of seven completed properties are 100 per cent occupied. Grp trades at 5.6x annualized yield and at 1.1x P/B, while gearing stood a tad high at 43.3%, although still within mgt target of 45%. Ratings as follows: CIMB maintains neutral with $1.45 TP CS maintains neutral with $1.32 TP Deutsche maintains Hold with $1.38 TP’ Nomura maintains neutral with $1.42 TP