DBS raises Keppel DC REIT's target price by 17.6% to street-high $2.20 amid 'meteoric rise'

SINGAPORE (Oct 30): DBS Group Research is maintaining its “buy” call on Keppel DC REIT and raising its target price to $2.20, some 17.6% higher than the previous target price of $1.87.

“Given robust accretion from recent acquisitions, we believe Keppel DC REIT can maintain its meteoric rise on the back of a virtuous acquisition cycle strategy where its cost of capital remains well below its investment return,” says lead analyst Derek Tan in a report on Tuesday.

Keppel DC REIT acquiring two data centres for $585 mil; launches equity fund raising

SINGAPORE (Sept 16): Keppel DC REIT is acquiring a 99% stake in Keppel DC Singapore 4 and 1-Net North Data Centre for a total consideration of $585.1 million.

The proposed acquisitions are expected to be “highly accretive” to the REIT’s Distribution per Unit (DPU), says the manager of Keppel DC REIT.

The manager also plans to fund the acquisitions with proceeds with a fully underwritten equity fund raising exercise of $473.8 million, as well as debt.

Brief respite in US-China trade war; Fed rate cut not likely in upcoming FOMC meeting

SINGAPORE (Sept 13): US President Donald Trump says he will delay increasing tariffs on US$250 billion ($344 billion) worth of Chinese goods from the initially intended date of Oct 1 to Oct 15, “as a gesture of goodwill”. Taking to Twitter on Sept 11, Trump said the postponement was done “at the request of the Vice-Premier of China, Liu He, and due to the fact that the People’s Republic of China will be celebrating their 70th Anniversary on Oct 1”.


Data centres in demand as supply evaporates; units in KDC REIT and MINT continue their ascent

SINGAPORE (Sept 9): In the world of tech, when you use the cloud, you are simply storing your data and programs on the internet instead of in your computer. For example, data from your Facebook, Instagram or Gmail accounts are stored in the cloud, which is located in data centres.


Keppel DC REIT reports 6.7% rise in 1Q DPU to 1.92 cents on new acquisitions

SINGAPORE (Apr 15): The manager of Keppel DC REIT has announced distribution per unit (DPU) of 1.92 cents for the 1Q19 ended March, some 6.7% higher than DPU of 1.80 cents a year ago.

This implies a distribution yield of 5.1% for Keppel DC REIT, based on the closing price of $1.50 on the last trading day of 1Q19.

Go defensiveness after this week's market meltdown, says OCBC

SINGAPORE (Oct 12): The Dow Jones Industrial Average on Wednesday fell more than 800 points while the S&P 500 had its worst day since February as technology stocks were battered.

Another reason for the meltdown was the spike in the US 10-year Treasury bond yield from 3.06% on Oct 2 to 3.18% on Oct 3 and subsequently to a 7-year high of 3.23% on Oct 5.

On the back of poor market sentiment, the Straits Times Index declined 2.7% or 84 points on Thursday.

S-REITs remain good defensive play despite uncertainties ahead

SINGAPORE (Sept 5): OCBC Investment Research says the Singapore REIT sector remains a good defensive shelter for investors amid macroeconomic uncertainties.

For the S-REITs under its coverage universe, OCBC is projecting stable DPU growth of 1.7% for FY18/19 and 1.6% for FY19/20.

“Looking ahead, we have tempered our expectations for the hospitality sector, and now expect more muted DPU growth from hospitality REITs under our coverage,” says OCBC analyst Andy Wong Teck Ching in a Tuesday report.

5 defensive S-REITs to consider as hospitality industry outlook clouds

SINGAPORE (July 31): OCBC Investment Research is maintaining “neutral” on Singapore REITs (S-REITs) with a weaker outlook for the hospitality sub-sector, which has prompted a pushback in expectations for a pick-up in Singapore hotel RevPAR this year to early 2019.

In a Tuesday report, lead analyst Andy Wong says he finds hospitality REITs less attractive than before in terms of valuations, given the relatively muted DPU growth outlook for 2H18 as well as the rising interest rate environment.

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