Post Reply
221-240 of 715
What' s the direction of this ?
Tenants in PRC are very shrewed in walking away , even with black and white agreement signed . What can KDC do to them ?
Keppel DC REIT?s manager faces unanswered questions on Guangdong DC 1 and 2
Sun, Jan 28, 2024 ? 09:16 PM GMT+08 ? 6 min read
https://www.theedgesingapore.com/capital/reits/keppel-dc-reits-manager-faces-unanswered-questions-guangdong-dc-1-and-2
Sun, Jan 28, 2024 ? 09:16 PM GMT+08 ? 6 min read
https://www.theedgesingapore.com/capital/reits/keppel-dc-reits-manager-faces-unanswered-questions-guangdong-dc-1-and-2
LOAD. OVERSOLD.
eddyeddy ( Date: 27-Jan-2024 16:15) Posted:
|
How to collect bad debts in China ? Throwing good money after bad money . Wrote off and move forward .
PiRPiR ( Date: 27-Jan-2024 14:14) Posted:
|
Keppel DC Reit eschews lawsuit for ?collaborative? approach to 48-million yuan arrears by Guangdong tenant
Published Fri, Jan 26, 2024 · 8:25 am
Updated Sat, Jan 27, 2024 · 12:21 am
https://www.businesstimes.com.sg/companies-markets/keppel-dc-reit-eschews-lawsuit-collaborative-approach-48-million-yuan-arrears
Published Fri, Jan 26, 2024 · 8:25 am
Updated Sat, Jan 27, 2024 · 12:21 am
https://www.businesstimes.com.sg/companies-markets/keppel-dc-reit-eschews-lawsuit-collaborative-approach-48-million-yuan-arrears
Keppel DC Reit FY2023 DPU drops 8.1%
For FY2023, the Reit&rsquo s DPU was S$0.09383, 8.1 per cent lower than the S$0.10214 in FY2022.
KEPPEL DC Reit is taking a &ldquo collaborative but firm&rdquo approach as it seeks to resolve the current situation of rental arrears at its Guangdong data centres (GDC), after reporting a S$10.5 million loss allowance in the second half of 2023.
Speaking at an earnings briefing on Friday (Jan 26), chief executive of the manager Loh Hwee Long said this would be the &ldquo best way forward&rdquo to safeguard the best interest of the Reit, and is preferable to litigation.
Last month, Keppel DC Reit said it issued a letter of demand to the tenant of GDC 1, 2 and 3 &ndash Guangdong Bluesea Data Development &ndash to recover sum in arrears-to-date of 48.3 million yuan (S$9 million) as well as a request for top-up of security deposits of 32.2 million yuan.
&ldquo The tenant remains very committed to resolve the situation with us,&rdquo Loh said on Friday. He noted the tenant has made a partial payment of the sum in arrears, amounting to 0.5 million yuan in December.
&ldquo We are also working with the tenant on a recovery road map, which we believe will translate to earnings to Keppel DC Reit sooner than if we were to go into litigation, which we know can be a very long drawn process,&rdquo he added.
Keppel DC Reit&rsquo s distribution per unit (DPU) for the half year ended Dec 31 fell 16.1 per cent to S$0.04332.
This came as its H2 distributable income fell 18.5 per cent to S$76.4 million on higher finance costs and loss allowances.
Finance costs for the period rose 43.5 per cent to S$25.8 million, from S$18 million a year earlier. Meanwhile, property expenses increased 85.6 per cent on year to S$23.1 million, with S$10.5 million included as loss allowance for doubtful receivables to account for the uncollected rental income from the GDCs.
The manager noted that the loss allowance impacted FY23 DPU by S$0.00649.
DBS analysts noted last month that an absence of rents from all three GDCs would lead to &ldquo significant downside&rdquo to future DPU, with estimates for the impact to amount to 16 per cent of FY24 DPU.
Keppel DC Reit acquired its first data centre in China from Guangdong Bluesea Data Development &ndash a unit of Neo Telemedia &ndash for 635.9 million yuan in July 2021. Around a year later the Reit acquired two more data centre facilities for 1.6 billion yuan.
Neo Telemedia is the master tenant of the GDCs. The Hong Kong-listed company reported a net loss of HK$179.6 million (S$30.8 million) for the first nine months of 2023. Its independent auditors also highlighted in its 2022 annual report that there was material uncertainty that may cast significant doubt on the group&rsquo s ability to continue as a going concern.
During the earnings call on Friday, analysts asked for a timeline on when the situation would be resolved.
Loh did not provide a fixed timeframe, but said that it would be a &ldquo key focus&rdquo in terms of the discussions with the tenant.
Questions were also raised on when the manager may decide to take over if the tenant is unable to deliver.
Loh noted that the Reit retains rights to terminate the master leases, and its sponsor Keppel has the resources to take over the operations if appropriate.
&ldquo On the assessment of the current situation, given that it is a live data centre, with clients already inside, we do have to be thoughtful around how we execute the plan,&rdquo he said.
The properties are master lease assets but the manager has sought further disclosures on the underlying performance of both GDC 1 and 2. Loh added that the tenant has agreed to share regular updates on their leasing progress and business plans.
&ldquo This will provide us with insights on the underlying performance of GDC 1 and 2, without us terminating the master lease arrangements and taking back vacant possession to start from a clean slate as a foreign player in China.&rdquo
Gross revenue for H2 slipped 0.7 per cent to S$140.7 million. Net property income (NPI) fell 9.1 per cent on year to S$117.6 million.
For FY2023, the Reit&rsquo s DPU stood at S$0.09383, 8.1 per cent lower than the S$0.10214 in FY2022. Distributable income fell 9.3 per cent on year to S$167.7 million.
NPI slid 3 per cent to S$245 million for the full year, despite a 1.4 per cent rise in gross revenue at S$281.2 million. This was due to higher property expenses, which rose 46.3 per cent to S$36.3 million.
As at the end of December, the aggregate leverage of the data centre-focused Reit stood at 37.4 per cent, with an interest coverage ratio of 4.7 times. Some 74 per cent of its borrowings were hedged to fixed rates.
The manager also noted that about 89 per cent of the debt would expire only in 2026 or later. Meanwhile, portfolio weighted average lease expiry (Wale) stood at 7.6 years as at Dec 31, 2023.
Current interest coverage ratio is 4.7 times.
In 1H 2020 (30 Jun 2020) , the interest coverage ratio is 12.8 times
In 1H 2020 (30 Jun 2020) , the interest coverage ratio is 12.8 times
spore1 ( Date: 26-Jan-2024 13:21) Posted:
|
Cautious mode! High financial costs eating up the dpu. Plus unknown status for the DC rental in China. Price may see further weakness
PiRPiR ( Date: 26-Jan-2024 13:12) Posted:
|
Keppel DC Reit's distribution per unit (DPU) for H2 2023 dropped 16.1% to S$0.04332 as distributable income fell 18.5% to S$76.4m on higher finance costs and loss allowances for uncollected rental income from its three Guangdong Data Centres. Finance costs for the period rose 43.5% to S$25.8m, while property expenses increased 85.6% to S$23.1m, with S$10.5m included as a loss allowance for "doubtful receivables" to account for the uncollected rental income from its China data centre tenant. Gross revenue for the period slid 0.7% to S$140.7m, while net property income (NPI) dropped 9.1% to S$117.6m in H2 on lower net contributions from Singapore colocation assets, led by higher facilities expenses. For FY2023, the Reit's DPU stood at S$0.09383, 8.1% lower than the S$0.10214 in FY2022, with distributable income falling 9.3% to S$167.7m.
nibble at 175
yes I agree the fed will start cutting rates but before they cut rates, there is a high chance that kdc will drop
Alignment ( Date: 20-Jan-2024 20:02) Posted:
|
It' s just a matter of time though - at some point this year Fed will start cutting. Doesn' t matter if its a few months earlier or later.
a bit impossible given that fed hinted the rate cuts wont be so soon together with the unstable climate
Rebound soon. REITs in play now..🤞 🤞 🤔
seems like kdc crashed on high volume for past few days..more pain to come maybe?
Analysts cheers ruling in favour of Keppel DC REIT
The Edge Singapore
Mon, Jan 15, 2024 ? 10:18 AM GMT+08 ? 2 min read
https://www.theedgesingapore.com/capital/brokers-calls/dbs-cheers-ruling-favour-keppel-dc-reit
The Edge Singapore
Mon, Jan 15, 2024 ? 10:18 AM GMT+08 ? 2 min read
https://www.theedgesingapore.com/capital/brokers-calls/dbs-cheers-ruling-favour-keppel-dc-reit
Seems pretty clearcut.
Singapore court rules in favour of Keppel DC Reit facility manager in payment dispute
THE Singapore High Court has made a decision in favour of a facility manager of Keppel DC Reit, paving the way for a positive outcome for the litigation announced by the data centre real estate investment trust (Reit) in March 2022.
DXC Technology Services Singapore was ruled to be in breach of its Standard Services Agreement (SSA) with Keppel DC Singapore 1, the master lessee and appointed facility manager of a data centre in Serangoon North.
DXC had tried to reduce the amount of floor space it leased, but Keppel DC Singapore argued that the SSA did not permit DXC to do so at the time.
Keppel is claiming S$3 million from DXC as the sum outstanding from April 2021 to December 2021, as well as all losses it suffered as a result of DXC&rsquo s refusal to pay for the space it unilaterally gave up from Apr 1, 2021 to Mar 31, 2025.
In a written judgement, Justice Hri Kumar Nair said that he accepted Keppel DC Singapore&rsquo s interpretation of the agreement.
He will hear both parties separately on the appropriate relief, but appeals will be heard only after Keppel&rsquo s claim has been fully dealt with. Trial of the case has been scheduled for February.
In 2010, DXC had entered into an SSA with Keppel to lease out a total space of 20,300 square feet (sq ft) split into four modules: A, B, C and D.
The SSA was renewed for five years from March 2017, and then again for five years from March 2020.
In 2020 and 2021, however, DXC reviewed its requirements and asked to give up the use of modules C and D.
It issued a purchase order on May 13, 2021, for the use of only modules A and B, which Keppel argued was in breach of the SSA. DXC also issued a change order on May 17, 2021, asking to return modules C and D.
DXC argued that the SSA had a clause allowing the company to request changes to the services provided at any time before completion.
Justice Nair said that the clause relating to the change order &ldquo does not stipulate that Keppel is obliged to agree to DXC&rsquo s requested changes&rdquo .
He noted also that the SSA guarantees Keppel a minimum charge in the event of termination or suspensions of services.
&ldquo If DXC&rsquo s interpretation is correct, it can simply avoid paying the minimum charge by reducing the data centre to only 1 sq ft of space instead of suspending or terminating the SSA. The parties clearly could not have intended such an outcome,&rdquo he said.
Singapore court decides in favour of Keppel DC Reit facility manager in payment dispute
Published Fri, Jan 12, 2024 · 4:26 pm Updated Fri, Jan 12, 2024 · 8:14 pm
https://www.businesstimes.com.sg/companies-markets/singapore-court-decides-favour-keppel-dc-reit-facility-manager-payment-dispute?utm_source=emarsys&utm_medium=email&utm_campaign=BT_Newsletter_Debrief&utm_term=Singapore+court+rules+in+favour+of+Keppel+DC+Reit+facility+manager+in+payment+dispute&utm_content=12%2F01%2F2024&ref=top-stories
Published Fri, Jan 12, 2024 · 4:26 pm Updated Fri, Jan 12, 2024 · 8:14 pm
https://www.businesstimes.com.sg/companies-markets/singapore-court-decides-favour-keppel-dc-reit-facility-manager-payment-dispute?utm_source=emarsys&utm_medium=email&utm_campaign=BT_Newsletter_Debrief&utm_term=Singapore+court+rules+in+favour+of+Keppel+DC+Reit+facility+manager+in+payment+dispute&utm_content=12%2F01%2F2024&ref=top-stories