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Analysts positive on Keppel DC REIT with recent Guangdong data centre acquisitions

Chloe Lim
Chloe Lim6/27/2022 01:32 PM GMT+08  • 3 min read
Analysts positive on Keppel DC REIT with recent Guangdong data centre acquisitions
Guangdong DC 2 and Guangdong DC 3. Photo: Keppel DC REIT
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DBS Group Research analysts Dale Lai and Derek Tan have kept a “buy” rating on Keppel DC REIT with a higher target price of $2.50 from $2.40 previously.

Keppel DC REIT just announced another two acquisitions in Guangdong valued at more than $320 million, following acquisitions in Amsterdam, Guangdong and London in FY2021 ended December 2021. This has resulted in an approximate 2.6% accretion to the REIT’s distribution per unit (DPU) for the FY2023.

The analysts see that the acquisitions are to be completed in two phases with sufficient debt headroom to tap on in FY2022. In addition, they believe that the relatively attractive yield of approximately 8.0% would drive DPU accretion over the next three years.

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