REITs with data centres appear to have been under some selling pressure in the past two to three weeks. In general, analysts note that bond yields have spiked, and that has caused REIT yields to expand as unit prices fell.

Some analysts have also suggested that the impending IPO of Digital Realty REIT could be impacting the local REITs with data centres as the Digital Realty REIT heading for the Singapore Exchange (SGX) is likely to be listed at cheaper valuations.

Of course, analysts point out that Keppel DC REIT (KDC REIT) could be moving to an ex-growth phase with organic growth reaching a plateau. At any rate, its yield was too compressed.

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