TEXT-S&P summary: K-REIT Asia

(The following statement was released by the rating agency)

Sept 10 -

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Summary analysis -- K-REIT Asia ----------------------------------- 10-Sep-2012

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CREDIT RATING: BBB/Stable/-- Country: Singapore

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Credit Rating History:

Local currency Foreign currency

20-Oct-2011 BBB/-- BBB/--

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Rationale

The rating on K-REIT Asia reflects the Singapore-based REIT's good-quality

assets and strong market position in the Singapore commercial office space.

K-REIT's limited geographic diversity--with more than 90% of its assets

located in Singapore--and concentration of tenants from the financial services

sector temper these strengths. We assess the company's financial risk profile

as "intermediate" and its business risk profile as "satisfactory," as our

criteria define these terms.

K-REIT's unencumbered asset base of about Singapore dollar (S$) 3.2 billion

supports its financial risk profile. The trust benefits from a long

weighted-average lease expiry of 6.2 years, compared with an industry average

of three to four years. That supports our assessment of its stable cash flow

generation. About 48.2% of leases by net lettable area have tenors of five

years and more. K-REIT's Singapore-based assets are predominantly located in

the Raffles Place and Marina Bay precincts. These areas are attractive to

high-profile service-based tenants and contain some of the most sought-after

prime commercial office spaces in Singapore. The trust's fairly high tenant

concentration risk offsets its asset strength. K-REIT's top 10 tenants occupy

44% of its leased area and 50.6% of its tenants belong to the financial

services sector.

Source: http://news.yahoo.com/text-p-summary-k-reit-asia-081101398--sector.html

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