Keppel Reit Stock Earnings Reports

Keppel REIT reported a strong operational and valuation finish to FY2025, highlighted by two strategic December 2025 acquisitions: a 75% interest in Top Ryde City (Australia retail) and an additional one-third interest in MBFC Tower 3 (Singapore office). NPI rose 6.9% y/y, share of results from associates/JVs rose 13.3% y/y, and committed portfolio occupancy improved to 96.7%. Singapore remained the dominant market (~80% by value) and delivered positive rental reversions (portfolio 11.5% for FY2025; Singapore 10.7%). DPU for FY2025 was $0.0523; near-term DPU was diluted by timing of acquisitions and enlarged unit base, with full acquisition contributions expected from 2026. Aggregate leverage was 47.9% at 31 Dec 2025 (would have been 40.4% had pref proceeds been received by year-end); the equity bridge loans were repaid in January 2026. The weighted average cost of debt (WACD) for 2025 was 3.41% and management’s target WACD for 2026 is between low 3% and 3.3%, supported by ongoing refinancing and lower interest-rate environment. Leasing momentum was strong (1.7m sq ft committed in 2025) with demand driven by banking/finance and TMT tenants and notable large reversions at assets such as 8 Exhibition Street. Portfolio valuations increased materially (overall +22.3% y/y; Singapore +25.2%), driven by higher committed end-market rents; excluding the December acquisitions valuations would still have risen modestly. ESG progress included MBFC Tower 3 achieving BCA Green Mark Platinum SLE and a pledge to reach net zero Scope 1 & 2 by 2050. Management’s priorities for 2026 are: drive organic growth (rental growth, leasing), continue cost-of-debt reduction through refinancing, focus on asset management (first half) and consider opportunistic divestments or acquisitions if strategically compelling.