KREIT – Nomura

First look

KREIT reported its 1Q09 results after market close today – headline numbers were slightly ahead of the consensus full-year forecast but broadly in line with our fullyear estimates. Rents appear to be holding steady during the quarter, with a 5.9% sequential increase in the average portfolio gross rent to S$8.06psfpm. However, committed occupancy of the portfolio declined further to 95.8%, from 99.0% a quarter ago. BUY rating and price target of S$1.29 maintained.

Steady rents, sliding occupancy