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Why Keppel DC REIT is expected to march on despite Basis Bay downsizing

Jude Chan
Jude Chan7/18/2017 12:30 PM GMT+08  • 2 min read
Why Keppel DC REIT is expected to march on despite Basis Bay downsizing
SINGAPORE (July 18): The downsizing of leased space by Keppel DC REIT’s tenant at Basis Bay Data Centre in Malaysia cuts occupancy at the property to 63.1%, from 100% previously. Meanwhile, portfolio occupancy slipped 2 percentage points q-o-q to 93.1%.
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SINGAPORE (July 18): The downsizing of leased space by Keppel DC REIT’s tenant at Basis Bay Data Centre in Malaysia cuts occupancy at the property to 63.1%, from 100% previously. Meanwhile, portfolio occupancy slipped 2 percentage points q-o-q to 93.1%.

But OCBC Investment Research believes this “disappointing development” would barely put a dent in KDCREIT’s net property income (NPI) and distribution per unit (DPU).

“Our previous forecasts assume that Basis Bay Data Centre would contribute only 2.8% of our overall FY17 NPI projection,” says lead analyst Andy Wong Teck Ching in a Tuesday report.

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