Keppel REIT: 2Q26 takeaways - divestments and capital management in focus; limited interest in adding to ORQ stake

研报英文原文证据摘录

Keppel REIT: 2Q26 takeaways - divestments and capital management in focus; limited interest in adding to ORQ stake

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

30 July 2026

Keppel REIT

2Q26 takeaways - divestments and capital Overweight

management in focus; limited interest in adding to ORQ KASA.SI, KREIT SP

stake Price (29 Jul 26):S$0.92

Price Target (Jun-27):S$1.01

Key highlights from KREIT’s 1H26 results (link) call include: 1) asset recycling Singapore/ASEAN Property and

and capital allocation priorities, 2) limited interest in adding to further ORQ stake, REITs

3) Australia leasing headwinds, particularly at 8 Exhibition Street, 4) rent reversion Terence M Khi AC

outlook, 5) cost of debt trajectory, 6) MBFC T3 tax transparency progress, and 7) (65) 6882-1518

share buyback potential following further divestments. terence.ml.khi@jpmorgan.com

Mervin Song, CFA

Management’s focus remains firmly on divestments, deleveraging and (65) 6882-7829

potential share buybacks rather than acquisitions. KREIT announced the sale mervin.song@jpmorgan.com

J.P. Morgan Securities Singapore Private Limited/

of KR Ginza II at a 9.7% premium to valuation. Management views current market J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

conditions as favourable for exits in Japan and Korea given compressed cap rates Morgan Broking (Hong Kong) Limited

and rising local borrowing costs. Proceeds will first be used to repay debt, with

share buybacks potentially considered following a further divestment.

Management indicated the South Korean asset is the most likely remaining

divestment candidate and reiterated no current plans to redeploy proceeds into

acquisitions.

Management appears uninterested in exercising pre-emptive rights over any

potential ORQ stake sale.