汇丰银行-新加坡房地产投资信托基金-keppel reit：buy：singapore office is stabilizing-20170718-hsbc.pdfVIP

Flashnote 18 July 2017   Keppel REIT (KREIT SP) EQUITIES REITS Buy: Singapore office is stabilizing Singapore  Results marginally weaker; divestment gain payout not certain MAINTAIN BUY  Grade-A office stabilizing; focus on leasing, portfolio upgrades TARGET PRICE (SGD) PREVIOUS TARGET (SGD)  Debt metrics remain robust; maintain Buy and TP of SGD1.25 1.25 1.25 SHARE PRICE (SGD) UPSIDE/DOWNSIDE Results marginally weaker; distribution of divestment gains is not certain 1.16 +7.8% 1HFY17 results were marginally weaker than expectations with distributable income (as of 17 Jul 2017) down 11% y/y at SGD96m (44% of HSBC FY17e: SGD216m) and DPU down 13% y/y at 2.87 SGD cents (44% of HSBC FY 17e: 6.5 SGD cents and 47% of consensus MARKET DATA Market cap (SGDm) 3,873 Free float 55% FY17e: 6.1 SGD cents). The y/y weakness was due to the absence of inco