KEPPEL DC REIT (SGX:AJBU) – Its Data Centre Business Dominance is Still Intact

Keppel DC REIT was listed on Singapore Exchange Securities Trading Limited (SGX-ST) in December 2014. Keppel DC REIT’s strategy is to invest, directly or indirectly, in a diversified portfolio of income-producing real estate assets which are used primarily for data center purposes, as well as real estate-related assets. As of December 2020, it has a portfolio size of approximately $3.0 billion. The portfolio comprises 19 high quality and well-located data centres in Singapore, Malaysia, Australia, the United Kingdom (UK), the Netherlands, Republic of Ireland (Ireland), Italy and Germany, and 1 data center under development in Australia.

As of 31 March 2021, its portfolio occupancy rate is 97.8%.

Rental Income Breakdown

Its derives the majority of the Rental income from Internet enterprise sector (~47%). Telecom sector is second revenue generator (~25%).

Lease Expiry Profile

Its Portfolio WALE is 6.6 years (by lease area).

Financial Performance

Revenue

Revenue has grown at CAGR of 21.6% over past 5-year period.

Net Income

Net Income has grown at CAGR of 27% over past 5-year period.

Dividend history

Current dividend yield is 3.05%.

Debt Maturity Profile

Near to Medium Term Trigger

  • APAC Data center spending to surpass $35B by 2024.
  • European Data center market to grow by >40% to over $25B by 2024.
  • 5G subscription is expected to reach 3.5B in 2024 and account for 54% of total mobile data.

Disclaimer

Our content is for informational purpose only. We don’t recommend the stocks by such analysis. You must do your own research before undertaking any investment making decision.

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Published by Amit

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