Keppel DC Reit ( former K-Reit Asia )

[behappyalways]

Keppel DC Reit buys data centre in Germany for $130 million
http://sgx.i3investor.com/servlets/fdnews/55069.jsp

[winston]

not vested

Keppel DC REIT: Favourable acquisition in Milan

Keppel DC REIT (KDCREIT) has proposed to acquire a data centre in Milan, Italy, for an agreed property price of EUR37.3m (~S$57.3m). This translates into an estimated initial NPI yield of 6.5%.

The asset is a four-storey freehold property and is fully leased on a double-net lease structure to one of the world’s largest telecommunications companies until 31 Dec 2027.

Upon completion, KDCREIT’s portfolio WALE would be lengthened further from 8.7 years to 9.3 years.

The lease is also embedded with annual rental escalations. According to consulting firm BroadGroup, data centre demand in Italy is projected to increase at a CAGR of 15% from 2016 to 2020.

We raise our FY16 and FY17 DPU forecasts by 0.6% and 2.8%, respectively, after factoring this development in our model.

We have assumed 100% debt funding for this acquisition.

Source: OCBC

[winston]

not vested

Keppel DC REIT: Proposed acquisition and preferential offering exercise

Keppel DC REIT (KDCREIT) reported its 3Q16 results which met our expectations.

DPU jumped 15.9% YoY to 1.90 S cents due to a one-off refund of property tax for its Singapore properties.

Excluding this, its adjusted DPU would have grown 1.8% YoY to 1.67 S cents.

Management has continued its inorganic growth strategy by proposing to purchase a 90% interest in Keppel DC Singapore 3 (KDC SGP 3) from a JV between its sponsor Keppel T&T and Keppel Land Limited for an agreed purchase value of S$202.5m.

This would be funded by a preferential offering exercise to raise gross proceeds of S$279.5m. The balance of the net proceeds would be used to pare down its debt and/or fund future acquisitions and capex.

Given the series of robust acquisitions which would enhance KDCREIT’s portfolio defensiveness (WALE increased) and its healthier balance sheet, we lower our cost of equity assumption from 8.3% to 8.0%.

Correspondingly, our fair value estimate is raised to S$1.35 (previously S$1.30).

Source: OCBC

[winston]

not vested

Keppel DC REIT’s acquisition to power earnings going forward

By Benjamin Cher

SINGAPORE (Nov 29): DBS Vickers Securities is maintaining its “buy” call on Keppel DC REIT with a revised target price of $1.33, after rolling forward valuations and pricing in the recently-announced acquisition of Keppel DC Singapore 3 (KDC SG 3), a carrier-neutral data centre in Singapore formerly known as T27 or Keppel Datahub 2.

To recap, Keppel Data Centres Holding (KDCH) – a joint venture between Keppel Telecommunications & Transportation (Keppel T&T) and Keppel Land – in October announced the divestment of 90% of KDC SGP 3 to Keppel DC REIT via share sale for an aggregate consideration of $141 million.

In a Tuesday report, analysts Derek Tan and Mervyn Song say the acquisition of KDC SG 3 will further diversify the REIT’s earnings base as well as fuel a stronger earnings growth trajectory of 5% going forward.

According to the analysts, the $279.5 million in new equity raised to fund the deal has improved Keppel DC REIT’s liquidity and strengthened its balance sheet, positioning the REIT “for another year of strong growth driven from acquisitions”.

Further upside to the deal will come from the management’s ability to garner tax transparency status, they add.

In Tan and Song’s opinion, the REIT is “projected to deliver a solid 5% CAGR in distributions supported by positive market dynamics”, and this is supported by low gearing coupled with low cost of capital which empower the REIT with financial capacity to acquire accretive assets.

“Given the larger-than-anticipated fund raising coupled with capital committed to acquire two further data centres worth a collective $111.7 million, we project KDC REIT’s gearing to remain fairly conservative at c.29%, keeping the powder dry for the REIT to acquire more assets,” say the analysts.

Units of Keppel DC REIT closed at $1.20.

Source: The Edge

http://smr.theedgemarkets.com/article/k ... ng-forward

[winston]

not vested

Keppel DC REIT: Robust growth potential

Keppel DC REIT (KDCREIT) is poised to benefit from the solid growth potential of the data centre industry, underpinned by expected increases in data creation and outsourcing trends.

For the key cities which KDCREIT has exposure to, we note that new demand is projected by BroadGroup Consulting to grow at a CAGR of between 4.7% (Frankfurt) to 14.7% (Dublin) from 2016 to 2021.

We are also positive on KDCREIT’s lease renewal for this year and with a portfolio WALE of 9.6 years, we believe KDCREIT is one of the most defensive REITs within the S-REITs space.

Based on our forecasts, KDCREIT is offering distribution yields of 6.1% and 6.3% for FY17F and FY18F, which is attractive relative to its peers’ Bloomberg consensus average yield of 3.8% and 4.1%, respectively.

Given healthy valuations, a robust industry outlook and strong DPU growth profile in FY17 (+19.2%), we maintain BUY and S$1.39 fair value estimate on KDCREIT.

Source: OCBC

[winston]

not vested

Keppel DC REIT: Inorganic growth sets in

Keppel DC REIT (KDCREIT) reported its 1Q17 results which met our expectations.

Gross revenue and NPI jumped 30.1% and 36.1% YoY to S$32.2m and S$28.8m, respectively, underpinned largely by inorganic growth.

DPU grew 13.2% YoY to 1.89 S cents, boosted by a one-off capital distribution for the month of Dec 2016 as completion of the acquisition of KDC SGP 3 (90% interest) only took place on 20 Jan 2017.

Excluding this one-off item, adjusted 1Q17 DPU would have grown 4.2% YoY to 1.74 S cents.

Management provided an update on its four major leases which are due to expire in FY17.

It has successfully renewed a key tenant at one of its Singapore co-location assets for five years, with the renewal rate marginally higher than the preceding rate.

Agreement in principle has been secured for two of the major overseas leases, while negotiations are still ongoing for the last major tenant.

Source: OCBC

[winston]

not vested

Keppel DC REIT: Q1 DPU up 13.2 per cent YoY to 1.89 SG cents on the back of a 47.6 per cent rise in distributable income to S$21.8 million - boosted by a one-off capital distribution of about S$1.7 million from its acquisition of data centre Keppel DC Singapore 3, income from acquisitions announced last year as well as lower property-related and other expenses.

Source: KGI

[behappyalways]

Keppel DC REIT reports 13.2% growth in 1Q DPU to 1.89 cents
http://www.theedgemarkets.com.sg/articl ... -189-cents

[behappyalways]

keppel-dc-reit-acquires-second-dublin-data-centre-1013-mil
https://www.theedgesingapore.com/keppel ... e-1013-mil

[behappyalways]

Keppel DC REIT acquires Kingsland Data Centre
https://www.theedgesingapore.com/keppel ... ata-centre