Keppel REIT stock sells Seoul tower at a 37.20 percent premium

Published on 09/29/2026 at 12:37 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Keppel REIT stock posted 1H 2026 net property income growth of 13.10 percent to SGD 122.5 million. A Seoul sale could reduce leverage to 38.00 percent.

Keppel REIT, SG1P32918333, Illustration mit AI erstellt.

Keppel REIT (ISIN SG1P32918333) agreed to sell its 99.38 percent stake in Seoul's T Tower at a 37.20 percent premium to the property's acquisition price. Keppel announced the agreement on September 23, 2026, making the Seoul disposal the latest test of the trust's capital recycling strategy.

Seoul sale lifts asset value

The agreed value for 100 percent of T Tower is KRW 348.8 billion, which is 7.40 percent above the property's valuation as of August 31, 2026. The transaction is expected to complete in the fourth quarter of 2026, subject to the stated conditions.

T Tower was 92.10 percent occupied as of June 30, 2026, and its sale reflects an exit net property income yield of 3.90 percent based on fiscal year 2025 net property income. The trust intends to use up to SGD 25.0 million of net sale proceeds for unit buybacks after its third-quarter business update, subject to market conditions and applicable laws.

Leverage becomes the key metric

Keppel said aggregate leverage could fall from 40.00 percent as of June 30, 2026, to 38.00 percent on a pro forma basis if the proceeds are used for debt repayment. That 2.00 percentage-point reduction gives the disposal a balance-sheet role beyond the 37.20 percent property premium.

After the divestment of T Tower and the earlier sale of KR Ginza II, the portfolio is expected to comprise 12 properties valued at SGD 11.5 billion, with Singapore accounting for 81.10 percent and Australia for 18.90 percent. The concentration shift makes Singapore office occupancy and leasing performance the next operating checkpoints.

Singapore quote and valuation range

Keppel REIT was last at SGD 0.85 on the Singapore Exchange on September 29, 2026 at 5:14 p.m. SGT. The same-day market data showed a market capitalization of SGD 3.3 billion and a 52-week range of SGD 0.83 to SGD 1.08, placing the quote SGD 0.02 above the yearly low and SGD 0.23 below the yearly high.