Keppel DC Reit ( former K-Reit Asia )

Re: Keppel DC Reit ( former K-Reit Asia )

Postby winston » Wed Jul 18, 2018 9:23 am

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Keppel DC REIT: Prepare for further inorganic growth

Keppel DC REIT (KDCREIT) reported its 2Q18 results which met our expectations, with DPU growing 4.6% YoY to 1.82 S cents.

We expect a stronger 2H18 as KDCREIT had only completed the accretive acquisition of a 99% interest in Keppel DC Singapore 5 on 12 Jun this year.

Nevertheless, we trim our FY18F DPU by 2.2% due to a timing issue from KDCREIT’s recent equity fundraising exercise, whereby its private placement of 224m new units was issued on 16 May versus our previous assumption of 30 Jun 2018.

Our FY19 forecasts and fair value estimate of S$1.54 remain intact.

Looking ahead, management remains active in sourcing for further inorganic growth opportunities.

Given its healthy aggregate leverage ratio of 31.7% (as at 30 Jun 2018), we believe KDCREIT has ample debt headroom to make more DPU accretive acquisitions in the near future.

Source: OCBC
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Re: Keppel DC Reit ( former K-Reit Asia )

Postby winston » Wed Oct 17, 2018 9:03 am

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Keppel DC REIT: Good growth but capex reserves to impact

Keppel DC REIT (KDCREIT) reported good 3Q18 DPU growth of 6.3% YoY to 1.85 S cents but this fell short of expectations due largely to an amount of capex that has been set aside for two of its assets (capex reserves).

Other operational metrics were largely healthy. In Aug this year, KDCREIT announced that it had entered into an agreement with an existing tenant to construct a new data centre (IC3 DC) on the vacant land within its IC2 DC site in Sydney, Australia.

While we trim our DPU forecasts by 4.5% for FY18F and 5.0% for FY19F as we factor in the capex reserves and weaker AUD assumptions, the impact to our fair value is partially offset by the expected contribution from the IC3 DC transaction (assumed from FY20 onwards).

All-in, our DDM-derived fair value is lowered from S$1.54 to S$1.48.

Source: OCBC
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Re: Keppel DC Reit ( former K-Reit Asia )

Postby winston » Wed Jan 23, 2019 9:08 am

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Keppel DC REIT: A “data-licious” set of results

Keppel DC REIT (KDCREIT) reported its 4Q18 results which met our expectations, with DPU increasing 5.7% YoY to 1.85 S cents.

There was a revaluation gain of S$32.6m recorded in 4Q18, driven by higher NPI assumptions used by the valuers as cap rates adopted remained largely unchanged.

We see upside potential at its KDC SGP 5 property, as it has been granted tax transparency treatment for its share of the taxable income, while the ramp up in operations has also been better than management’s initial expectations.

KDCREIT has ample debt headroom to pursue inorganic growth opportunities, given its low aggregate leverage ratio of 30.8% (3Q18: 32.0%).

However, one of the limitations is the difficulty in finding meaningful deals, as cap rates in the market have compressed.

Potential acquisitions could come from KDCREIT’s sponsor pipeline. After adjustments, we derive a higher fair value estimate of S$1.60 (previously S$1.48).

Source: OCBC
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Re: Keppel DC REIT

Postby behappyalways » Sat Sep 21, 2019 1:39 pm

Keppel DC REIT acquiring two data centres for $585 mil; launches equity fund raising
https://www.theedgesingapore.com/news/r ... nd-raising
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Re: Keppel DC Reit ( former K-Reit Asia )

Postby winston » Tue Oct 15, 2019 10:49 am

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Oct 8, 2019

Acquisition of two data centers in Singapore a significant driver to DPU

Remains in a virtuous cycle of accretive acquisitions; pricing in a further S$75m in debt-funded deals by 2H20

Recent index inclusion to boost liquidity, resulting in a lower cost of capital for the REIT

TP raised to S$2.20 backed by DCF, maintain BUY

Source: DBS

https://researchwise.dbsvresearch.com/R ... =eifdgkhea
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Re: Keppel DC Reit ( former K-Reit Asia )

Postby winston » Wed Oct 16, 2019 9:43 am

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Keppel DC REIT: Had a good run

Keppel DC REIT (KDCREIT) reported its 3Q19 results which met our expectations, with DPU growing 4.3% YoY to 1.93 S cents.

Operationally, management carried out some forward renewal of leases which were due to expire in 2021.

Rental reversions have generally been positive YTD, although the leases renewed are small and thus unlikely to have a material impact on KDCREIT’s portfolio performance.

Portfolio occupancy improved slightly by 0.4 ppt QoQ to 93.6%.

Looking ahead, KDCREIT remains on the lookout for inorganic growth opportunities, as ample debt headroom remains even after its proposed acquisitions of KDC SGP 4 (99% interest) and 1-Net North Data Centre.

Key target regions for future acquisitions include APAC and Europe, with US a less likely option given higher tax leakage.

Besides the two aforementioned proposed acquisitions, new deals are likely to come from third party assets in the near-term.

Given this in-line set of results, we maintain our forecasts and S$2.08 fair value estimate. HOLD.

Source: OCBC
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Re: Keppel DC Reit ( former K-Reit Asia )

Postby winston » Wed Oct 16, 2019 9:54 am

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Back to business as usual

3Q/9M19 DPU of 1.93/5.78 Scts (+4.3%/5.7% yoy) was in line at 25%/74% of our and consensus FY19 forecasts.

Occupancy inched up to 93.6% as fit-out works at Dublin 2 were completed and new tenants were secured for SGP 1 and Dublin 1.

Maintain Hold with a higher TP of S$1.88.

Source: CIMB

https://cgs-cimb-insticrm-services.hero ... 4A7C734D8B
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Re: Keppel DC Reit ( former K-Reit Asia )

Postby winston » Wed Oct 16, 2019 11:10 am

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Fuel for the tomorrow’s digital world

Inclusion into FTSE EPRA Nareit Global Developed Index positive for future liquidity

3Q19 DPU increased +4.3% y-o-y to 1.93 Scts; 9M19 DPU ahead of forecast

Healthy operational metrics with slight uptick in portfolio occupancy

Awaiting completion of data centres in Singapore; more acquisitions to come from third parties

Source: DBS

https://researchwise.dbsvresearch.com/R ... =eigiekhfj
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Re: Keppel DC Reit ( former K-Reit Asia )

Postby winston » Tue Jan 28, 2020 10:03 am

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Keppel DC REIT
Singapore | Real Estate
Research Team
Rating HOLD (as at 24 January 2020)
Last Close SGD 2.23
Fair Value SGD 2.26


Vibrant growth to come in FY20

4Q19 DPU -1.1% YoY; adjusted DPU +4.3%
Occupancy rose 1.3 ppt QoQ to 94.9%
Forecasted DPU growth of 16.7% in FY20

It is also one of the most defensive REITs given its long portfolio weighted average lease to expiry of ~8.6 years.

Source: OCBC
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Re: Keppel DC Reit ( former K-Reit Asia )

Postby winston » Thu Feb 27, 2020 2:15 pm

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Feb 24, 2020

HOLD (Downgrade from BUY)
Price Target 12-mth: S$2.55 (2% upside) (Prev S$2.40)

What’s New

Pricing in S$600m of acquisitions; increased from previous estimate of S$350m
Expect third-party acquisitions in the near term given the lack of a stabilised pipeline from the Sponsor
Higher TP of S$2.55; downgrade to HOLD

Source: DBS

https://researchwise.dbsvresearch.com/R ... =fbhcgkhab
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