Seeing positives for Singapore Reits from investors’ support of Keppel Reit’s DPU-dilutive MBFC Tower 3 acquisition
With demand for office trusts focused in the Republic despite lower yields, more capital should be allocated domestically
Add BT as a preferred source
[SINGAPORE] Investors buy real estate investment trusts (Reits) to earn recurrent income from periodic distributions. Managers therefore strive to grow a trust’s distribution per unit (DPU).
One strategy is to buy properties that raise DPU. However, Keppel Reit recently did a mega deal where the immediate impact was to lower DPU.
The trust acquired an additional one-third stake in Marina Bay Financial Centre (MBFC) Tower 3 at an agreed property value, based on one-third interest, of S$1.453 billion or S$3,268 per square foot. The acquisition cost totalled S$937.5 million.
TRENDING NOW
On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart
MAS, bank CEOs convene over AI cyberthreats; boards told to own risks, not leave to IT teams
Thai and Vietnamese farmers may stop planting rice because of the Iran war. Here’s why
LTA circular to potential EV charger owners reveals hundreds of e-mail addresses under carbon copy feature
