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CGS-CIMB ups Keppel DC REIT's TP and DPU estimates after China data centre acquisitions

Felicia Tan
Felicia Tan6/21/2022 11:27 AM GMT+08  • 2 min read
CGS-CIMB ups Keppel DC REIT's TP and DPU estimates after China data centre acquisitions
Guangdong DC 2 and Guangdong DC 3. Photo: Keppel DC REIT
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CGS-CIMB Research analyst Lock Mun Yee has maintained her “add” recommendation on Keppel DC REIT (KDC REIT) with a slightly higher target price estimate of $2.63 from $2.62 previously after the REIT announced that it will be acquiring two data centres in China on June 20.

The data centres will be purchased at a consideration of RMB1.38 billion ($297.1 million) or at a 0.6% discount to independent valuations.

Following the purchase, Lock has raised her distribution per unit (DPU) estimates by 0.7% for the FY2022, 1.57% for the FY2023 and 3.21% for the FY2024 as she factors in the contributions from the new acquisitions.

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