Keppel REIT (formerly: K-Reit Asia)

[Xiaosaint]

https://s3-ap-southeast-1.amazonaws.com/...GEUS.1.pdf

Topping out of the office floor space is good news to us Shareholders!


Sent from my iPhone using Tapatalk

[mkmk]

http://infopub.sgx.com/FileOpen/Keppel%2...eID=343622

Keppel REIT’s 1Q 2015 distribution income up approximately 18% q-o-q
Achieves DPU growth of 13% q-o-q,
Upward trend of office rental reversion gathers momentum with 19% growth in rental rates in 1Q 2015

- Sustained level of distributable income year-on-year (“y-o-y”) notwithstanding the expiry of rental support from the 87.5% interest in Ocean Financial Centre in January 2015, the absence of income contribution from Prudential Tower and the absence of rental support from Marina Bay Financial Centre (“MBFC”) Phase One

- Distribution per Unit (“DPU”) grew 13% quarter-on-quarter (“q-o-q”) to 1.70 cents due to a full-quarter contribution from MBFC Tower 3 and stronger performance from Bugis Junction Towers

- Successfully reviewed two-thirds of the leases due in 2015, all with positive rent reversions

- Achieved positive rental rate reversion of 19% for all office leases signed, renewed and reviewed in 1Q 2015

- High tenant retention rate of approximately 96% in 1Q 2015

- Close to 80% of total leases are not due for renewal till 2017 and beyond

- Maintained high committed portfolio occupancy of 99.3%, with nine of 11 completed office towers in Singapore and Australia fully committed

- Proactive capital management strategy saw the maiden issuance of a seven-year $50 million fixed-rate Medium Term Notes, which is due in 2022

- Over 80% of borrowings are not due for repayment till 2017 and beyond

- Continuing the upward trend of office rental reversions, Keppel REIT's current strong portfolio will continue to deliver sustainable distributions for FY2015

(Not vested)

[cfa]

- Distribution per Unit (“DPU”) grew 13% quarter-on-quarter (“q-o-q”) to 1.70 cents due to a full-quarter contribution from MBFC Tower 3 and stronger performance from Bugis Junction Towers


Even full contribution from MBFC also cannot improve the DPU ? The acquisition supposed to be yield accretive .
The past DPU used to be 1.97 which sustained for many Qs.

[AQ.]

Drop should actually be larger - this Q they took their 12mio of management fees wholly in units (usually they take ard 7mio in units and balance in cash). All else being same DPU should be ard 1.54c only.

[cfa]

Drop should actually be larger - this Q they took their 12mio of management fees wholly in units (usually they take ard 7mio in units and balance in cash). All else being same DPU should be ard 1.54c only.

The DPU in next Q will even be lower due to more units issued .
The acquisition of MBFC phase 3 was clearly a one sided deal . KL and KC were the winners at the expense of unitholders of KR.
No longer vested as sold all today.

[AQ.]

Looks like a perfect storm coming for K-REIT

1) Supply of prime office space//lowered economic growth//contraction of banks' operations//lower cost sites e.g. biz parks putting pressure on prime rents.

2) Higher rate expectations with a close to 45% gearing ratio esp with the new MAS gearing cap rule.

3) Lower aud with Glenn Stevens still jawboning it lower - especially when almost all its debts are funded in SGD but >10% ptf valuation is in AUD creating FX mismatch.

Bit of a train wreck.

[cfa]

Should be discounted by now. One small private placement or right issue should solve the '' over gearing " problem.

[Xiaosaint]

ANNOUNCEMENT

CORPORATE CREDIT RATING UPDATE
Keppel REIT Management Limited, in its capacity as manager of Keppel REIT (the “Manager”), wishes to announce that it has requested Standard & Poor’s Ratings Services (“S&P”) to withdraw the S&P’s corporate credit rating on Keppel REIT. In connection with the withdrawal of the corporate credit rating, S&P has reaffirmed the final “BBB” long-term corporate credit rating and “axA” long-term ASEAN regional scale ratings on Keppel REIT, with a stable outlook.Following this withdrawal, Keppel REIT continues to be rated by Moody’s Investors Service, and is rated “Baa2” with a stable outlook.

https://s3-ap-southeast-1.amazonaws.com/...K2M9.1.pdf


Sent from my iPhone using Tapatalk

[Shrivathsa]

Drop should actually be larger - this Q they took their 12mio of management fees wholly in units (usually they take ard 7mio in units and balance in cash). All else being same DPU should be ard 1.54c only.

The DPU in next Q will even be lower due to more units issued .
The acquisition of MBFC phase 3 was clearly a one sided deal . KL and KC were the winners at the expense of unitholders of KR.
No longer vested as sold all today.

Distribution per unit (“DPU”) of 1.70 cents for the third quarter 2015 (“3Q 2015”), only 0.02 cents lower, let us see if they are able to maintain at 1.7 for the coming quarters.

[greengiraffe]

K reit yield close to 7% why take risks on a fixed income with no upside in the light of interest rate direction

Kindly be informed the following new SGD Perpetual Bond issue – Keppel REIT (Subordinated debt).



Details as follows : -





Initial Yield guidance at cost Low 5% area

Expected Issue Size TBD

Denomination SGD 250k x 250k

Timing Books Open

Comments To follow

Risk Rating 5

LV TBA



ISSUER: RBC Investor Services Trust Singapore Limited (in its capacity as trustee of Keppel REIT)

STATUS: Direct, unconditional, unsecured and subordinated Securities

ISSUER RATING: Baa2 (Moody’s)

ISSUE RATING: Unrated

ISSUE SIZE: To be determined

FORMAT / DOCS: Registered / Issuer’s SGD1 billion Multicurrency Debt Issuance Programme (“Programme”)

TENOR: Perpetual NC 5

INITIAL PRICE GUIDANCE: Low 5%

SETTLEMENT DATE: [●] November 2015

DISTRIBUTION PAYMENT: Semi-annually in arrear on [●] May and [●] November of each year (First Pay: [●] May 2016); actual/365 (fixed)

CALL OPTION: [●] November 2020 & on every distribution payment date thereafter at par

DISTRIBUTION: Reset at the end of Year 5 & every 5 years thereafter based on prevailing SGD 5Y SOR plus the Initial Spread

DISTRIBUTION STEP-UP: Issuer's discretion. Any deferred Distributions are non-cumulative

DIVIDEND STOPPER: Yes

OTHER REDEMPTION: At par under taxation events, accounting reasons, regulatory event and ratings event

DENOMINATION: SGD250K

GOVERNING LAW: Singapore Law

LISTING: SGX-ST

CLEARING: CDP

SELLING RESTRICTIONS: As per Information Memorandum dated 20 October 2015, including the Singapore selling restrictions under Sections 274/275

of the Securities and Futures Act, Chapter 289, Reg S only

JOINT LEAD MANAGERS AND

BOOKRUNNERS: DBS Bank, OCBC Bank (B&D)

TIMING: Today’s business





Comps:



ARTSP4.68 Perp: 4.74%

AREIT4.75 Perp: 4.73%
KREIT3.15 02/22: 3.24%