KREIT – Nomura

First look
K-REIT’s 2Q08 results were in line with our expectations, with the positive reversionary profile in Singapore over FY08-09F underpinning valuations. We continue to see inherent value in K-REIT, currently trading on an implied enterprise value of circa S$1,175/psf. Having de-leveraged to 0.28x, K-REIT remains well placed to capitalise on opportunistic acquisitions in the listed and unlisted markets. STRONG BUY call reaffirmed.

2Q08: expectations met