15 Key Numbers Investors Should Know About Keppel REIT

Keppel REIT  (SGX: K17U) is one of the many companies and real estate investment trusts in Singapore’s stock market that have released their annual reports over the last few months.

The annual report is a great place to learn more about a company or REIT. In Keppel REIT’s case, its latest annual report had a chockful of interesting numbers. Here are 15 that might be worth noting for investors:

  1. Keppel REIT has come a long way since its listing. Its net lettable area has grown from 800,000 square feet in 2006 to 3.5 million square feet of premium Grade A office space in 2015. At the end of 2015, Keppel REIT had stakes in nine premium properties under its umbrella that are worth $8.4 billion. Properties in Singapore accounted for 89% of the total value while properties in Australia accounted for the rest.
  2. For 2015, Keppel REIT’s tenant retention rate was 90%. The REIT also enjoyed positive rental reversion of 13% for new and renewed Singapore leases. Additionally, around 75% of its total leases are not up for renewal until after 2018.  The weighted average lease expiry for the REIT’s portfolio is six years at the end of 2015.  The REIT’s top ten tenants account for 38.3% of its monthly gross rent.
  3. Grade A CBD office supply is expected to rise sharply this year, according to Cushman and Wakefield Research. A potential supply of over 3.5 million square feet of new space is expected to come online. The supply is expected in the Marina Bay, Bugis, and Tanjong Pagar areas.
  4. The total market cap for Singapore-listed REITs and business trusts was estimated to be around $64 billion, as of February 2016. Office REITs accounted for 20% of the overall pie.
  5. At the end of 2015, Keppel REIT had an aggregate leverage of 39.3% and an interest coverage ratio of 4.4 times. It also had an all-in interest rate of 2.5% and weighted average term to expiry of 3.7 years.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.