REIT | Keppel Pacific Oak Reit@ 0.56 USD |
If cost of debt increased by | 3% |
Estimated current Yearly DPU | 0.056 USD or 0.0756 SGD |
DPU impact due to 3% rise in cost of debt | 0.00372 USD (Derived from KORE’s Aug 2022 slides) |
DPU after interest rate impact | 0.05228 USD or 0.070578 SGD |
Estimated Currency impact Jan 2022 vis a vis Oct 2022 | 1.35 vs 1.43 USD |
Estimated % of Currency Impact | 6% |
Estimated above overall impact | -1% |
Resultant Estimated Dividend Yield (In SGD) | 9.9% |
Negative | Focus on office space will be quality over size. Hence, requirement for office space will decrease due to hybrid work arrangement? Technology sector not doing as as well may continue to consolidate and cut back on office spending i.e Meta Platforms? Current all-in average cost of debt is not low at 2.88%. |
Positive | USD remain fairly strong and positive rental reversions of 1.6%. |
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