Risk Reward Update

Research evidence excerpt

Risk Reward Update

UpdateM

RiskRisk RewardReward– Keppel- REITKeppel(KASA.SI)REIT (KASA.SI)

Stable dividend outlook

PRICE TARGET S$0.95 OVERWEIGHT THESIS

listed relatively pure office play inBase case, derived from a 50% weighting to dividend yield and 50% weighting to price to ▪Largest

book. Our target 2027e dividend yield of 6.25% is in line with our industry-wide forecast, Singapore: With its portfolio of

reflecting average liquidity and risk-adjusted growth. Our target P/B on 2025 trailing NAV is predominantly office buildings (the bulk of

0.87x, +1.5 S.D. the five-year historical average, taking into account return of capital to which are located in Singapore), KREIT

unitholders from asset divestments' realised gains. offers investors significant exposure to

Singapore office. S$0.99 ▪Stable dividend trajectory: Well occupiedConsensus Price Target Distribution S$0.88 S$1.13 office buildings underpin our expectations MS PT

for KREIT to deliver stable dividends of 5.1-Source: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates

5.2c per annum across 2026-28.

RISK REWARD CHART Consensus Rating Distribution

31% Overweight

SGD 56% Equal-weight

S$1.25S$1.25(+41.24%)S$1.25(+41.24%)(+41.24%) 13% Underweight

MS Rating

1.2

Source: Refinitiv, Morgan Stanley Research

S$0.95S$0.95(+7.34%)S$0.95(+7.34%)(+7.34%)

0.9 S$0.89S$0.89S$0.89

Risk Reward Themes

Self-help: Positive

0.6 S$0.75S$0.75(-15.25%)S$0.75(-15.25%)(-15.25%) View descriptions of Risk Rewards Themes here

0.3

JUL '25 JAN '26 JUL '26 JUL '27

Key: Historical Stock Performance Current Stock Price Price Target

BULL CASE S$1.25 BASE CASE S$0.95 BEAR CASE S$0.75

Dividend yield: 4.75%, P/B: 1.07x Dividend yield: 6.25%, P/B: 0.89x Dividend yield: 7.75%, P/B: 0.70x