What’s Behind Keppel REIT’s Great Q1 2021 Results
Singapore office REIT Keppel REIT’s recent results was pretty good.
My friend asked me to look into whether something was amiss.
Here is an update of their Q1 2021 performance from their business updates:
Almost everything looks much better. Usually, when REIT have such a good performance, it is likely that they have purchase a new building, or a portfolio of buildings betweent the reporting period.
In Q1, Keppel’s Pinnacle Office Tower acquisition start adding contribution to the topline and bottomline.
Between this period, their Victoria Police Centre also started contributing. These would have added to the outperformance.
I decided to tabulate some of Keppel REIT’s financial performances the past quarters:
Q1 2020 was probably one of the weakest performances in recent memory. It would not be hard to do better than quarter.
Compared to the last quarter, Keppel REIT’s Q1 2021 results do not look as spectacular.
While top line expanded, we did not see any meaningful translation to the distributable income from Pinnacle Office Tower.
Here are some other Keppel REIT’s financial data:
All-in interest rate went down from 2.8% to 2.01% currently. This savings should help the REIT.
However, notice that committed occupany have been trending down. This is a short time period we are profiling but nevertheless, I wonder is demand waning for office properties.
Retention rate was meaningfully lower at 44% this quarter. I think this could probably be a one-off and this is where we want to see whether it bounce back.
Next quarter, we should also see contribution from the newly acquired Keppel Bay Tower. The new placement shares should dilute and balance out the contribution.
Keppel REIT currently trades closer to a 4.8% dividend yield on my Dividend Stock Tracker.
You can check out my more comprehensive tutorials on REITs in the REITs Learning Center in the link below.
Sign up with the new SG broker Futu SG today till before 30th April and you can receive one FREE Apple share and a $30 cash coupon. All you have to do is open the account and deposit SG$2700 into the account and you can get this welcome package estimated to worth SG$200!
Here are the easy steps that allow you to qualify in less than 2 hours.
Do Like Me on Facebook. I share some tidbits that is not on the blog post there often. You can also choose to subscribe to my content via email below.
I break down my resources according to these topics:
- Building Your Wealth Foundation – If you know and apply these simple financial concepts, your long term wealth should be pretty well managed. Find out what they are
- Active Investing – For active stock investors. My deeper thoughts from my stock investing experience
- Learning about REITs – My Free “Course” on REIT Investing for Beginners and Seasoned Investors
- Dividend Stock Tracker – Track all the common 4-10% yielding dividend stocks in SG
- Free Stock Portfolio Tracking Google Sheets that many love
- Retirement Planning, Financial Independence and Spending down money – My deep dive into how much you need to achieve these, and the different ways you can be financially free
- Providend – Where I currently work doing research. Fee-Only Advisory. No Commissions. Financial Independence Advisers and Retirement Specialists. No charge for the first meeting to understand how it works