Company Name: KEPPEL LAND LIMITED
| Research House: Phillip Securities | Price Call: BUY | Target Price: 3.20 |
Phillip Securities upgraded Singapore property developer Keppel Land to buy from hold and raised its share-price target to $3.20 from $3.19.
Keppel Land said earlier this week that it will divest its entire 87.5% stake in the Ocean Financial Centre in Singapore to its unit K-REIT Asia for $1.57 billion.
Phillip said the deal is a timely move which positions Keppel Land for future strategic acquisitions, either in China or Singapore.
It forecast much higher contribution from China in the fourth quarter due to scheduled project completions.
The brokerage expects Keppel Land to pay a special dividend of 9 cents this year, implying a potential dividend yield of 6.6%.
On Wednesday, Keppel Land reported a 6.6% rise in third-quarter net profit, as lower revenue was partly offset by higher income from property investment, fund management as well as hotels and resorts.
At 12:17 p.m., Keppel Land shares were –1.8% at $2.68.
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