SG Property Intelligence KEP: Asymmetric risk reward - upgrade to OW

Research evidence excerpt

SG Property Intelligence KEP: Asymmetric risk reward - upgrade to OW

J P M O R G A N Asia Pacific Equity Research

22 May 2026

SG Property Intelligence

KEP: Asymmetric risk reward - upgrade to OW

Singapore/ASEAN Property and

REITs

Keppel: Asymmetric risk reward - upgrade to OW. We upgrade KEP to OW. We AC Terence M Khi

had been concerned about the slower pace of asset divestments and FUM growth due

(65) 6882-1518

to the Middle East conflict, and the risk of revised terms or failure to secure regulatory terence.ml.khi@jpmorgan.com

approval for the M1 disposal. These risks have largely crystalised, with the failed M1 AC Mervin Song, CFA

sale (link) and KEP returning -10.4% (including dividends) since March (link), (65) 6882-7829

lagging the STI’s 4.6% rise. We turn more positive as expectations and positioning mervin.song@jpmorgan.com

have reset lower, with relative valuations and share price performance to peers having J.P. Morgan Securities Singapore Private Limited/

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

normalized. In our view, KEP’s pivot towards becoming a global asset manager Morgan Broking (Hong Kong) Limited

remains on track and earnings should benefit from the ramp-up at the new Sakra plant.

We see the risk-reward as attractive, with DPS of ~42 Scts implying a ~4% yield,

which should provide downside support. Link (Source: J.P. Morgan)

Mapletree Logistics Trust - Approaching an inflection point We maintain our OW

rating. We remain positive on MLT as DPU is past the worst and has now stabilized

after declines over the past few years. The outlook should improve as MLT kickstarts

acquisitions upon further asset recycling and as DPU growth returns (we estimate

FY27/FY28E DPU of +0.9%/+1.6%), this should trigger a re-rating ahead. Prospects