Brokers' take

Keppel Reit > Buy DBS Group Research, Nov 30 Nov 30 close: S$1.15 Target price: S$1.41

KEPPEL Reit announced the divestment of a 20 per cent interest in Ocean Financial Centre (OFC) to Allianz Real Estate for S$537.3 million. This is 2.3 per cent above the valuation as at 31 Dec 2017 and 18 Nov 2018 as well as 16.8 per cent higher than the historical purchase cost of S$460.2 million.

Based on the disposal price, this translates to exit yield of 2.8 per cent based on annualised Q3 2018 net profit interest (NPI) or 3.7 per cent on trailing 12-month NPI.