Investing in – Keppel REIT (SGX: K71U)
Keppel REIT is one of the first few REITs which I owned and sold. This real estate investment trust has a portfolio of 9 premium office assets strategically located in the central business districts of Singapore, as well as key Australian cities of Sydney, Melbourne, Brisbane and Perth.
Geographically, 87% of Keppel REIT’s assets under management is based in Singapore and the remaining 13% is located in Australia. In terms of currency risk related to non SGD income, it is relatively low given the exposure to foreign currency in Australia.
Presently, the development of freehold Grade A office tower in Australia is progressing well. It could potentially add income growth to the Reit in the longer term as upon completion, the building will have a 30-year lease to Victoria Police which will commence upon completion of development.
I like this REIT as they offer dividend reinvestment plans (DRP) which sits well for Long-term gains – assuming that you opt for DRPs. As the likelihood of the Reit issuing new shares options is lower, and the possibility of retaining the current ratio of units is kept.
NAV: S$1.40 per share