Keppel REIT (formerly: K-Reit Asia)

Hi R@52,

That was my estimate as well of around 6.6% yield, with an expected growth rate of 1.4%, so all in all, expected return of 8%, which is why i entered at 1.15. Now to see whether it will measure up.

I have also looked at the long term share trend and the technical trend.

http://sgx-stocks-sti.blogspot.sg/2014/0...-reit.html

Regards

When KR announced its 1Q result on 14/04 , 7 brokerages called for hold , not even one call for buy, but the share price moved up from 1.16 to 1.235 with heavy volumes.
Who are buying ?

Hi Buddy,

When u can't keep chasing grade A CCT, KREIT also can - no fish, prawn also can.

Rotational interests will create more wealth and keep the bull cheonging...

Odd Lots Vested
GG

(17-04-2014, 12:30 PM)cfa Wrote: When KR announced its 1Q result on 14/04 , 7 brokerages called for hold , not even one call for buy, but the share price moved up from 1.16 to 1.235 with heavy volumes.
Who are buying ?

(17-04-2014, 12:30 PM)cfa Wrote: When KR announced its 1Q result on 14/04 , 7 brokerages called for hold , not even one call for buy, but the share price moved up from 1.16 to 1.235 with heavy volumes.
Who are buying ?

Kreit isn't the only one enjoying a nice run-up, over the last few days, most reits are seeing nice buy up

MEDIA RELEASE
Keppel REIT divests its interest in Prudential Tower for $512 million
The sale price is 4.5% above the latest valuation

http://infopub.sgx.com/FileOpen/Media.Re...eID=297383

Quite happening for some of the recently emerged companies that is making an entry to prime commercial property space... make sense as their price to book for their respective companies should be above 1 and using over value equity to eventually finance the purchase make sense.

In addition, it appears that the consortium are going to strata title the building to cater to investment demand due to lack of alternatives in local real estate space...

http://infopub.sgx.com/FileOpen/Acquisit...eID=297470

(15-05-2014, 06:21 PM)cfa Wrote: MEDIA RELEASE
Keppel REIT divests its interest in Prudential Tower for $512 million
The sale price is 4.5% above the latest valuation

http://infopub.sgx.com/FileOpen/Media.Re...eID=297383

(15-05-2014, 06:21 PM)cfa Wrote: MEDIA RELEASE
Keppel REIT divests its interest in Prudential Tower for $512 million
The sale price is 4.5% above the latest valuation

http://infopub.sgx.com/FileOpen/Media.Re...eID=297383

I'm disappointed, I would very much prefer they divested an aussie property and maintain a singapore heavy portfolio. Prudential tower is a well located property in the CBD & appears to be performing well. What is management thinking?

1st Quarter Median office rentals were $9.76/psf pm. Therefore, K-REIT was selling off the property which was yielding annually approx.. 5% at the agreed sale price. Not too bad a deal, of course I am not factoring future office rental growths. Lets say office rentals rises to $11/psf pm, the tower will still yield only 5.76%.

Hmmm comparing against its current stock div yield 6.3%, the deal might not seem too bad if Keppel-REIT can secure a yield accretive deal with the freed up funds

(15-05-2014, 09:58 PM)CY09 Wrote: 1st Quarter Median office rentals were $9.76/psf pm. Therefore, K-REIT was selling off the property which was yielding annually approx.. 5% at the agreed sale price. Not too bad a deal, of course I am not factoring future office rental growths. Lets say office rentals rises to $11/psf pm, the tower will still yield only 5.76%.

Hmmm comparing against its current stock div yield 6.3%, the deal might not seem too bad if Keppel-REIT can secure a yield accretive deal with the freed up funds

Are they going to use the fund to buy more aussie office buildings which i'm not too sanguine about or are they going to use it to buy over MBFC tower 3 at a hefty price? If so, I'd rather they hang onto prudential tower which is not too shabby a property?

Believe the location of this building is not that fantastic as compared to OFC , ORQ or MBFC , this building does not have a underground link like the other 3 which are linked to Raffles place MRT station by the same underground.