Brokers' take

Keppel Reit | Buy Oct 16 close: S$1.12 Target price: S$1.35 UOB Kay Hian, Oct 16

Results came in broadly in line, with 9M 2018 DPU of 4.2 S cents/share at 72 per cent of our full-year estimate. Third-quarter net property income declined 10.9 per cent y-o-y due to lower contributions from Ocean Financial Centre, 275 George Street and 8 Exhibition Street; partly mitigated by increased contributions from Bugis Junction Towers.

Nonetheless, conditions in its Singapore office portfolio remain firm with high overall committed occupancy at 98 per cent. The committed occupancy of Singapore office stood at 97.8 per cent (vs core CBD's average of 94.6 per cent) and committed occupancy of its Australian portfolio was 98.9 per cent (vs Australia's CBD average of 90.6 per cent). During the quarter, K-Reit saw take-ups by HSBC at MBFC Tower 2, and govern…