Post Reply
461-480 of 715
As I said I m not optimistic, but coffee shops uncles think otherwise. They reckon that KC insiders and SSH cronies who hold shares in sph may have the numbers, if they cann convince those sph shareholders who also have shares in KC to support. Sph shareholders of course may want a good deal for their shares, but if they also KC shareholders, they may not want KC to overpay too. KC hopes these shareholders will see the benefits and the synergy of KC acquiring sph. Like the properties value can be enhanced through Keppel Land, and the REITs can be merged into a mega unit for cost savings and securing loans or acquisitions. Many do not know also sph actually has a data centre business too, and together with their combined interests with KC in M1,they can grow and turn their data centres business in a giant force when merged with Keppel DC REIT.
In time to come KC or KTT will pour the data centres into its DC REIT, meanwhile read what this bugger who rated it as the best REIT to buy, has to say, why it makes sense to accumulate now even as it may go lower..... vested pdyohwadfmb....
In the internet era with more 5G applications, data usage will be enormous with explosive growth for next decade. So, Keppel DC Reit is positioned nicely to host data storage, collecting consistent growing rental as passive incomes. Keppel DC Reit has nearly 100% business in data center (recently extending to related business such as partnership with M1) while Mapletree Industrial Trust has about 1/3 businesses in this growing sector. Mapletree Industrial Trust is the largest Data Center REIT in Singapore but share price (near to fair value) currently is not as attractive as Keppel DC Reit.
Over the past 5 years, Keppel DC Reit has experienced 3X in share prices from $1 to peak of $3 but the gains is not limited to share price appreciation. Its dividend is doubled every few years, therefore suitable to position as mid-fielder stock to have a balance of both growth (price appreciation) and dividend (passive income).
After reaching 100% Optimism level during peak of pandemic, Keppel DC Reit has experienced slower growth with sector rotation. The prices over the past 1 year has been bearish, declining by about 20%, falling to low optimism < 25% currently, creating another rare opportunity for long term investor with dividend yield about 4%. However, due to bearish price trend, it is currently more suitable for contrarian investor who could apply Average Down strategy to minimize the risk of " Buy Low get lower" .
Therefore, similar to many other crisis giant stocks at low Ein55 Optimism level (eg. Top Glove, Tencent or Alibaba. an investor may need to " Wait" for " crisis" in prices (but strong in business) to Buy Low or entering in several batches, either Average Down or Average Up, eg. wait for next mini rally to Buy slightly Higher only after uptrend is established for short term, eg when above $2.40-$2.50 resistance for Keppel DC Reit).
Due to defensive business nature of Keppel DC Reit, Ein55 intrinsic value is about $2.80, current price is only about 20% discount (despite low Ein55 Optimism level). It is more suitable for Buy Low and Hold Long Term, collecting 4% dividend yield (potentially doubled every few years).Keppel DC Reit has to grow bigger with more yield accretive acquisitions (eg. recent new REIT in Guangzhou of China) to sustain this high growth with many more global competitors (both demand and supply for data center increase at the same time).
I guess many are in no mood to post anything newsworthy, so I may have to kapo abit....but why worry so much? If coffee shops uncles never quit market, why bother so much? In fact the uncles claim that from next week, market will move, omicron or whatever cons.... it is from this super charged conference that I took more positions in MCT, CLCT, AT recently...... I also don' t why they are so confident. Bpdyohwadfmb....
Keppel Data Centres in tie-up to explore Australia liquid hydrogen supply chain
KEPPEL Data Centres has tied up with 4 energy players to explore the development of a liquid hydrogen (LH2) supply chain between Western Australia and Singapore, and potentially Japan.
The partners are Australia' s Woodside Energy, City Energy, Osaka Gas Singapore and City-OG Gas Energy Services.
Together, the 5 parties will explore the technical and commercial aspects of such a supply chain. The study will continue until mid-2022, they said in a joint statement on Wednesday (Dec 22). They have also inked a memorandum of understanding (MOU).
Keppel Data Centres chief executive Wong Wai Meng said the MOU will explore the feasibility of using LH2 from Australia to power the company' s data centres in Singapore, with potential applications for other Keppel business units in the future.
" This collaboration in the upstream LH2 supply chain complements the existing MOUs we have entered with various partners to explore the mid-to-downstream segments, including transportation, storage and regasification," he added.
Keppel Data Centres is a 70:30 joint venture between Keppel Corporation subsidiaries Keppel Telecommunications & Transportation (Keppel T& T) and Keppel Land. Keppel T& T is also the sponsor of Keppel DC Reit.
The MOU comes after Woodside proposed a H2Perth hydrogen facility in Kwinana - where it is looking to establish a large-scale LH2 and ammonia export hub. The project site' s location in Western Australia makes it ideal for shipping LH2 to Singapore and Japan, said Woodside chief executive Meg O' Neill.
She noted Keppel Data Centres, Osaka Gas Singapore, City Energy and City-OG Gas Energy Services as potential customers and end-users.
City Energy said the collaboration may " significantly support" its carbon reduction effort in piped town gas production or combustion.
Singapore' s piped town gas provider is also in the business of green energy solutions through its sub-brand City Energy Life which offers low-carbon home solutions, as well as City Energy Go, which provides electric vehicle charging services.
City Energy, together with Japan' s Osaka Gas, established City-OG Gas Energy Service in 2013 to provide energy solutions and retail gas to various industries. Osaka Gas Singapore is wholly owned by Osaka Gas Co - Japan' s second-biggest natural gas provider.
If next week can break $2.5, uptrend Liaw. Dyodd
Seems resistant at 2.4 while SGX index not performing.
potential to further up.
potential to further up.
another undervalued is CLCT....nav 1.485...div 6.829%.....
TradeExpert ( Date: 14-Dec-2021 09:24) Posted:
|
Take a look at Hong Fok (H30)
Super undervalued counter. May just go privatise
Super undervalued counter. May just go privatise
Keppel DC Reit unitholders vote in favour of investment in M1' s network assets
UNITHOLDERS of Keppel DC Reit have voted in favour of the proposal to invest a total of S$89.7 million in bonds and preference shares to be issued by M1 Network (NetCo), which owns the mobile, fixed and fibre assets of telco M1.
During the Keppel DC Reit' s extraordinary general meeting (EGM) on Thursday (Dec 2), some 95.2 per cent of unitholder votes signalled their approval of the first resolution for the NetCo bonds and preference shares investment as an interested-party transaction.
M1 is jointly owned by Keppel Corp and Singapore Press Holdings, which publishes The Business Times.In addition, 96.4 per cent of unitholder votes were in favour of the proposed fee supplement for a one-off acquisition fee payable to the real estate investment trust (Reit) manager in connection with the investment, which is non-real estate related.
In response to questions from unitholders prior to the EGM, the Reit manager said in a bourse filing on Wednesday that the expansion of its mandate in April to include real estate and assets necessary to support the digital economy " provides (Keppel DC Reit) with the flexibility to evaluate a wider range of opportunities" .
" This is an opportunistic and distribution per unit (DPU)-accretive investment, which we believe will provide Keppel DC Reit with stable and regular cash flows, as well as enhance total unitholders' returns," the Reit manager said.
It added: " While this is an opportunistic investment, we remain focused on the data centre sector, which has proven to be a highly resilient asset class especially during the pandemic."
Keppel DC Reit and M1 will have equal representation on the board of NetCo, which will acquire the telco' s mobile, fixed and fibre assets for about S$580 million through an asset-transfer agreement. These exclude M1&rsquo s 5G standalone assets, which are jointly owned between M1 and another party, as well as the co-owned and &ldquo right-of-use&rdquo assets that cannot be transferred.
Under a 15-year network services agreement, M1 and its mobile virtual network operators will use NetCo' s network capacity, while the telco handles the day-to-day operations, maintenance of the network assets and the capex works.
NetCo will fund the acquisition through external financing of up to S$493 million as well as the issuance of S$88.7 million of bonds to be subscribed by Keppel DC Reit or its wholly owned subsidiaries and the issuance of S$1 million preference shares to Keppel DC Reit&rsquo s subsidiary, KDCR Singapore 2.
In return, Keppel DC Reit will receive S$11 million each year for 15 years, comprising both principal and interest. The manager said this provides a &ldquo regular, stable cash flow&rdquo for the Reit, with an effective yield of 9.17 per cent per annum.
Keppel DC Reit intends to fund the total of S$89.7 million in bonds and preference shares through external bank borrowings and the remaining cash proceeds of approximately $15.1 million from the divestment of iseek Data Centre in Brisbane.
Assuming the Monetary Authority of Singapore approves the Qualifying Project Debt Securities (QPDS) application, the NetCo investment will bump Keppel DC Reit&rsquo s DPU up to 9.519 Singapore cents on a pro forma basis for FY2020, translating to a 3.8 per cent accretion. If the QPDS application is rejected, the NetCo bonds will be treated as ordinary bonds and the DPU accretion will be 3.1 per cent.
With the investment, Keppel DC Reit&rsquo s assets under management (AUM) will increase 2.8 per cent to S$3.3 billion.
&ldquo Looking ahead, we will continue to capitalise on growth opportunities and enlarge our footprint in the data centre industry. We will continue to have at least 90 per cent of our AUM invested in data centres, this being our core forte and where our capabilities lie,&rdquo the Reit manager said.
Wow. Only one of the two REITs to be green!
Reaching its 52 week low, but this bugger gives his take why CAN CONSIDER....
One " unloved" company from the 52-week low stock list is KEPPEL DC REIT
After hitting an intraday high of S$3.16 in October 2020, the data centre REIT' s unit price has fallen to S$2.35.
The fall could be due to the rotation of money from " beneficiaries of the pandemic" (of which Keppel DC REIT is
part of) to " re-opening" companies (or the so-called value stocks).
Business-wise, however, Keppel DC REIT continues to perform well.
For its third quarter of 2021, Keppel DC REIT' s gross revenue grew 2.5% year-on-year while its distribution
per unit (DPU) improved by 4.5% to 2.462 Singapore cents. Over the longer term, its DPU has increased from
6.51 cents in 2015 to 9.17 cents in 2020.
If you believe that the selldown of Keppel DC REIT units is temporary in nature and that the REIT is a
good proxy to the fast growing technology sector, along with it having an attractive valuation, it could
provide an opportunity to have part-ownership in the REIT.
| I suppose nobody in the mood to read anything but I post anyway, very boring staring at the ceiling... tomorrow must go coffee shop to look for coffee lady... DBS says redevelopment opportunities to drive future growth for industrial Reits |
I will be posting this in all REITs stock in which I have some interests. But please hor, due diligence please, do not take this as the final and only positive statement and cheong to take up positions.....if you are lazy to read through the entire article, just focus on the highlighted parts....
Why is the Singapore REIT market going so strong after two years of COVID-19?
SINGAPORE: Singapore real estate investment trusts or S-REITs have emerged as a resilient segment of the local stock exchange in the past two years.
Traditionally a key pillar of the portfolios of individual investors in Singapore, the iEdge S-REIT Index, regarded as the S-REIT benchmark, reported a total return of 5.2 per cent since the start of 2020 to Nov 17.
This was despite S-REITs raising new equity from unitholders, creating additional units and leading to potential dilution risk. In the past 23 months, S-REITs raised a total of S$8 billion through placements and rights issues led by mega-issuances from Ascendas Real Estate Investment Trust and Frasers Commercial Trust.
Most S-REITs largely maintained their dividends, compensating for the fall in unit prices in this period.
Global financial markets including S-REITs initially crashed when COVID-19 became a pandemic, with investors panicking and selling liquid financial assets. For investors daring and savvy enough to put money to work during the trough in end-March 2020, total returns from capital gains have been a whopping 57 per cent.
Despite headlines on troubles in the retail space and how work-from-home has made offices redundant, occupancies measured by leases have remained high for S-REITs holding shopping malls and offices in Singapore, with little problems in rental collection, even if fewer are using these spaces.
In the hardest hit hotel sector, the fall in physical property asset value was contained to less than 10 per cent at a portfolio level among the S-REITs tracked by OCBC, a good outcome despite the pandemic curbing travel.
Hospitality REITs will likely need time to recover and could do better in a 24-month timeframe as borders reopen further.
S-REITs today generate a significant volume of trading activity for the stock exchange - about one-fourth of the daily turnover before COVID-19. Primary equity markets in Singapore also skew towards S-REITs.
S-REITs, at S$110 billion, represents 12 per cent of Singapore& rsquo s whole equity market by market cap & ndash a figure that is 6 per cent for Australia and only 2 per cent for Japan, the other two top REIT markets in the Asia-Pacific with large domestic economies.
WHY S-REITS STILL ATTRACT SO MANY INVESTORS
The top-performing Singapore stock in the past 23 months goes to iFAST Corporation, an investment products distribution platform, which generated total returns of 771 per cent during this time, superseding the Bloomberg Bitcoin Galaxy Index at 750 per cent.
This is lower than the 1,131 per cent on the Bloomberg Galaxy Crypto Index tracking cryptocurrencies.
Still, S-REITs and the Singapore commercial property market continue to attract significant investor attention.
Investors in Singapore are very familiar with the nuts and bolts of running a property, and understand how policies like stamp duties, urban planning, zoning, tenancy and ownership rules influence whether and when investors should buy an investment property and what to look out for in assessing a property& rsquo s attractiveness.
Many like the idea of owning a passive, stable and recurring income stream. S-REITs generate fairly stable revenue, with the iEdge S-REIT Index reporting revenue per unit of S$132.5 in 2019.
Though it dropped 6.3 per cent in 2020, analysts expect a rebound to S$135.6 this year.
S-REITs are a good source of income. Qualifying S-REITs are encouraged to pay gains to unitholders instead of hoarding profits as they not taxed on dividends distributed to unitholders.
The key challenge is share dilution when S-REITs need to raise to acquire new properties.
Past transactions that have stirred market discussions include K-REIT Asia& rsquo s (now known as Keppel REIT) 87.5 per cent interest in Ocean Financial Centre in 2011, Ascott Residence Trust& rsquo s acquisition of Ascott Orchard Singapore, Citadines City Centre Frankfurt and Citadines Michel Hamburg in 2017 and Lippo Malls Indonesia Retail Trust& rsquo s acquisition of Puri Mall in 2021.
S-REITs are also regulated as a collective investment scheme under the Securities and Futures Act, where there is a 50 per cent cap on the leverage limit for S-REITs to keep credit risks in check. As listed entities, S-REITs also follow SGX rules on the disclosure of information and the right for minority investors to vote on major matters.
S-REITS MORE ACCESSIBLE THAN EVER
Until S-REITs were launched in July 2002, the commercial property market was inaccessible to most individual retail investors, with ticket sizes of each standalone commercial property in the millions and billions of dollars.
Today, all it takes is S$230 at last Wednesday& rsquo s prices for an individual investor to buy into CapitaLand Integrated Commercial Trust (& ldquo CICT& rdquo ), Singapore& rsquo s largest REIT, and enjoy a portion of CICT& rsquo s rental income from shopping malls and offices.
Few investment opportunities provide such stability for 4 to 7 per cent dividend yield per year. It& rsquo s little wonder such investment classes with a dividend income and the potential for capital gains appeal to investors with a neutral risk profile at Singapore& rsquo s median age of 42.
Singapore has maintained an encouraging ecosystem for the development of S-REITs. Regulatory uncertainty is minimised as regulators routinely seek industry feedback from REIT managers, investors and lawyers before introducing new rules.
The market has grown to include fund managers who invest in S-REITs as their specialty, REIT exchange traded funds and REIT derivatives.
Bank lenders and bond investors in Singapore are highly familiar with S-REITs, together providing a pool of liquidity that allows the S-REIT market to grow bigger. Brokerages are also prepared to lend individual investors buying larger amounts of REIT units.
WILL GAINS IN S-REITS CONTINUE?
The bigger question is whether we will continue to see capital gains in the coming 12 to 24 months as interest rates rise.
In a world where stock market prices are affected by sentiments, Reddit fads and breaking news, S-REITs continue to see strong investor demand because their valuation is backed by commercial properties where asset value has seen a continued upward trend.
Indeed, S-REIT indices are not a good representation of the underlying economy. They are weighted towards larger S-REITs, rather than each S-REIT& rsquo s contribution to the Singapore economy.
The iEdge S-REIT& rsquo s top five components make up 43.3 per cent of the index which have an outsized influence on total returns.
Three are large-cap industrial REITs with industrial properties in Singapore and countries across Asia-Pacific, Europe and the United States & ndash in a world where logistics, data centres, business parks and manufacturing facilities have been resilient through the pandemic.
The remaining two are large-cap commercial REITs owning quality assets with tenants largely staying put despite the economic downturn, with occupancies remaining above 90 per cent.
Beyond the broad index, S-REITs that hold hotels and shopping malls located in the city centre have been dragged by the pandemic. With the city centre hollowed out as we work from home and international travelers non-existent, these S-REITs have underperformed Industrial REITs.
Furthermore, the S-REIT industry has been kept buoyant by an inflow of capital. The broad money supply in Singapore has surged by 10.9 per cent year-on-year as of September. With interest rates on cash near-zero, all that money needs to go somewhere.
The S-REITs market is unlikely to cool anytime soon. There is momentum. Thirteen out of the 80 IPOs with primary share offering in Singapore since 2016 were S-REITs raising S$5.6 billion collectively at an average offer size of S$430 million.
Outside of S-REITs, a further S$2.7 billion was raised for two listings, Kakao Corp, the Internet company global depository receipt listing and NetLink NBN Trust, a business trust which holds infrastructure assets.
The remaining 65 had an average offer size of S$28 million & ndash small cap listings with limited liquidity.
Tellingly, the two upcoming IPOs in Singapore - Daiwa House Logistics Trust and Digital Core REIT - are both S-REITs.
The equity analyst community is still optimistic and forecasting a rise in S-REIT dividends in the next 12 to 24 months.
Driven by the growth and resiliency of industrial assets, particularly logistics warehouse and data centres, the Big Three industrial REITs of Ascendas Real Estate Investment Trust, Mapletree Logistics Trust and Mapletree Industrial Trust also recorded average total returns of 15.6 per cent in the past 23 months.
DON& rsquo T DISMISS SGX
Looking ahead, Singapore investors should not be so quick to dismiss the SGX, given the current slew of corporate restructuring exercises with the potential for capital gains, which may not be immediately apparent to new individual investors in the market.
Buying S-REITs is likely to remain a cornerstone investment strategy for many individual investors. The more pertinent decision points remain how much S-REITs should feature as a percentage of one& rsquo s investment portfolio and which specific ones to invest in.
Still, until a next financial crisis with significant liquidity stress, we are unlikely to repeat the kind of capital gains seen from March 2020 to date in S-REITs.
A lot of the negatives has since been priced in, with the broad iEdge S-REIT Index trading at 1.1 times the price-to-book value, indicating that the market cap of the S-REITs as a broad basket is now higher than the value of the underlying properties.
Some question regarding the vote, hope someone can help to enlighten me:
- IT hardware normally 5 years before hardware refresh, can telco assets last 15 years?
- Where the money come from Netco to pay KDC annually? From M1? What if M1 not profitable?
- Obligation is from Netco to KDC, not M1 to KDC correct? Why not M1 wind down Netco after few years, since they have money to buy new equipments, no need pay KDC already?
Concern about the chances of KDC getting that 15 years of income.
- IT hardware normally 5 years before hardware refresh, can telco assets last 15 years?
- Where the money come from Netco to pay KDC annually? From M1? What if M1 not profitable?
- Obligation is from Netco to KDC, not M1 to KDC correct? Why not M1 wind down Netco after few years, since they have money to buy new equipments, no need pay KDC already?
Concern about the chances of KDC getting that 15 years of income.
women in today' s working world are usually paid less than men for the same job and responsibilities ...
i have mentioned before on this sharejunction forum that companies get what they pay for, be it in terms of analysts or higher management ...
cheap is very often not good, and often implies a weaker talent base and ability
i have mentioned before on this sharejunction forum that companies get what they pay for, be it in terms of analysts or higher management ...
cheap is very often not good, and often implies a weaker talent base and ability
MARKWONG ( Date: 10-Nov-2021 11:14) Posted:
|
Testing 2.20 soon. Very weak currently.
After the new CEO Anthea Lee onboarded, the share price keep falling.
Useless
Useless
This counter oversold.
More upsides expected and also more people/companies will need data centres to store their servers or rent a space from 3rd parties for cloud storage.
Next support level $2.6.
More upsides expected and also more people/companies will need data centres to store their servers or rent a space from 3rd parties for cloud storage.
Next support level $2.6.
DBS upgrades KDC REIT, other analysts remain neutral
DBS Group Research analysts Dale Lai, Geraldine Wong, Derek Tan and Rachel Tan have upgraded their rating on Keppel DC REIT (KDC REIT) to &ldquo buy&rdquo with a target price of $3, after it announced &ldquo surprise acquisitions&rdquo .They highlight that the announcement of the acquisition of Guangdong Data Centre and the right of first refusal (ROFR) granted for the other five data centres within the campus has reignited optimism on KDC REIT&rsquo s growth trajectory.
At the current share price and its relatively low weighted average cost of capital (WACC), the analysts are of the view that acquisitions should be &ldquo highly accretive&rdquo .
They think that KDC REIT&rsquo s distribution per unit (DPU) is expected to grow by a CAGR of about 8% from now till FY2023, driven by recent acquisitions, organic growth from AEIs and developments, and further potential acquisitions by the end of FY2022. The analysts do add though, that their thesis is on the assumption of acquisitions of about $300 million in 2HFY2022 in addition to the M1 network assets investment.
Furthermore, they note that KDC REIT' s latest portfolio occupancy of 98% is the highest since its IPO in 2014.
&ldquo The continued demand for data centre capacity amid the prolonged Covid-19 outbreak and rise of the digital economy would support higher occupancies and revenues across its portfolio in the foreseeable future,&rdquo the DBS analysts say.
However, the analysts have highlighted some key risks for KDC REIT, including competition from larger third-party data centre players.
KDC REIT may face higher barriers to entry and stiffer competition from international operators or funds which are also looking to grow their footprint and attract tenants.
With the strong fundamentals and growth projections for data centres, they are increasingly seeing investors competing for assets in the industry.
However, CGS-CIMB&rsquo s analysts Eing Kar Mei and Lock Mun Yee have also maintained their &ldquo add&rdquo call on KDC REIT, but lowered their target price from $2.84 to $2.78.
While they broadly agree with the DBS analysts, the lowered target price was due to them trimming their FY2021-2023 DPU forecasts by 2-3%, mainly to factor in the divestment of Iseek Data Centre in Brisbane, Australia.
Eing and Lock note that portfolio occupancy remained stable at 98.1% in 3QFY2021, and add that weighted average lease expiry (WALE) lengthened from 6.5 years to 7 years, due to the commencement of a 20-year lease at Intelligence Campus in July.
KDC REIT saw healthy renewal and expansion of leases with existing clients in 3QFY2021. It has a remaining 0.4% of its leases by rental income expiring in 2021, and has started discussions with its clients for contracts expiring in 2022.
Some 18.8% of its leases by rental income are due to expire in 2022, and they expect occupancy to remain stable in 2022 given the strong demand and stickiness of data centre tenants.
They say that KDC REIT has access to Keppel T& T and Keppel&rsquo s pipeline of private data centres worth over $2 billion. In addition, its gearing of 35.1% as at end-3QFY2021 provides it with ample flexibility to boost its inorganic growth.
As such, they are still optimistic about the REIT, as it could continue its accretive acquisitions, and accelerate its pace of acquisitions given its healthy gearing and relatively low cost of funding.
For them, some potential re-rating catalysts include more accretive acquisitions, while downside risks include lower-than-expected rental reversions.
Separately, Citibank analyst Brandon Lee has a less optimistic view, handing the REIT a &ldquo neutral&rdquo rating and a target price of $2.75.
He says that although KDC REIT has announced $0.3 billion of acquisitions year-to-date (y-t-d), and existing gearing of 35% implies adequate debt headroom of $0.3-0.6b for future acquisitions, &ldquo we believe investors are looking for greater DPU-accretion than the 1-4% achieved for its past few transactions.&rdquo
Lee also says that while KDC REIT has underperformed S-REITs and its industrial peers y-t-d, he believes valuations have yet to turn compelling at 1.95x P/B and FY2021 yield of 4.2-4.3%, and with the forward 3-year DPU CAGR at about 4%.
The positives, Lee says, was the high occupancy, and 3QFY2021 saw healthy renewal and expansion of leases with existing clients, &ldquo evidenced by lease expiries by rental income for the remaining part of FY2021 falling significantly from 7.6% in 2QFY2021 to just 0.4% this quarter.&rdquo
Lee also says that while KDC REIT has underperformed S-REITs and its industrial peers y-t-d, he believes valuations have yet to turn compelling at 1.95x P/B and FY2021 yield of 4.2-4.3%, and with the forward 3-year DPU CAGR at about 4%.
The positives, Lee says, was the high occupancy, and 3QFY2021 saw healthy renewal and expansion of leases with existing clients, &ldquo evidenced by lease expiries by rental income for the remaining part of FY2021 falling significantly from 7.6% in 2QFY2021 to just 0.4% this quarter.&rdquo
The NetCo Bonds is subordinated to the external borrowings.
KepDC will get $11mil/year for 15 years. It will take 8 years just to recoup the invested amount.
In the meantime, if M1 will to cease ops/bankrupt or windup, good luck to the NetCo Bonds.
I will vote no to this deal.
KepDC will get $11mil/year for 15 years. It will take 8 years just to recoup the invested amount.
In the meantime, if M1 will to cease ops/bankrupt or windup, good luck to the NetCo Bonds.
I will vote no to this deal.
Joelton ( Date: 15-Oct-2021 09:57) Posted:
|
Keppel DC Reit Q3 DPU up 4.5 per cent to S$0.02462
Keppel Data Centre (DC) real estate investment trust (Reit) on Monday posted a distribution per unit (DPU) of S$0.02462 for its third quarter ended Sep 30, 2021, up 4.5 per cent from the S$0.02357 it posted a year ago.
The Reit' s manager attributed the increase in DPU to contributions from DPU accretive acquisitions and asset enhancement initiative (AEI) works that it has embarked on. These include the acquisition of the Eindhoven Campus in the Netherlands for 37.2 million euros (S$58.2 million) in Sep 2021, which has two data centre buildings.
Gross revenue was also up 2.5 per cent to S$69.3 million for the quarter, from S$67.7 million the previous year.
Net property income grew by 2.3 per cent on the year to S$63.8 million for the quarter, from S$62.4 million.
Distributable income further rose by 6.3 per cent to S$43.1 million, from S$40.5 million a year ago.
The Reit had previously announced a private placement on Aug 12 and an advanced distribution of S$0.01421 per unit was declared for the period from Jul 1, 2021 to Aug 22, 2021. The next distribution will be for the period Aug 23, 2021 to Dec 31, 2021 and semi-annual distributions will resume thereafter.
In its operational updates, the Reit&rsquo s manager highlighted Keppel DC Reit&rsquo s record high portfolio occupancy of 98.1 per cent as at Sep 30, 2021.
It also recorded a weighted average lease expiry (WALE) of 7 years by leased area. By rental income, WALE was 4.9 years as the Reit has a higher proportion of rental income from colocation assets, which typically have shorter lease periods.
In its third quarter, the Reit also completed the divestment of its iseek Data Centre in Brisbane at A$34.5 million (S$34.8 million) in September, at 21.5 per cent above the initial public offering purchase price of A$28.4 million.
In July, the Reit also commenced a new 20-year triple-net master lease with Macquarie Data Centres at the Inteillicentre Campus.
Based on research company Gartner&rsquo s report, the Reit&rsquo s manager also expects end-user spending on public cloud services to grow by 23.1 per cent this year to S$332.3 billion, up from S$270 billion in 2020.
It also noted that hyperscale operators almost tripled their capital expenditure in the first half of this year, in tandem with revenues growing by over 30 per cent per year.