K-REIT Trust

K-REIT Trust announced 3Q13 results largely in-line. DPU at 7.82c (+0.3%) taking 9M13 DPU to 7.9c (+2%). This equates to a div yield of ~6.5%. Net property income at $34.3m (+7%) due mainly to improved performance from Ocean Financial Centre and the additional contribution from 8 Exhibition Street. Share of results of associates registered an improvement of 26% to $16.0m due to improved performance from Marina Bay Financial Centre Phase 1 and One Raffles Quay. Overall fundamentals still remain strong with portfolio occupancy at 99.4%. Going forward, mgt remains confident of Keppel REIT's performance as nearly all assets are fully committed with long tenured leases, there are no refinancing requirements over the next 24 months and approximately 70% of the borrowings are at fixed interest rates. CS maintains Neutral with $1.32 TP Daiwa maintains Hold with $1.29 TP HSBC maintains Neutral with $1.25 TP