Keppel REIT still ‘fundamentally sound’ despite big DPU drop

SINGAPORE (Jan 25): Keppel REIT may have recorded an 11.9% drop in distributions per unit for 4QFY16, but analysts say the stock remains fundamentally sound.

(See also: Keppel REIT posts 11.9% decline in 4Q DPU to 1.48 cents)

Religare Institutional Research’s Pang Ti Wee pointed out that DPU had fallen from the divestment of the 77 King Street property. On top of that, the group had a capital distribution of 0.16 cents in 4QFY15. Excluding the effects of the capital distribution, DPU would have fallen just 2.6%.

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