Keppel DC REIT - OCBC Investment 2024-01-29: Taking A Hit From Arrears In China

Keppel DC REIT - Taking A Hit From Arrears In China

Keppel DC REIT (SGX:AJBU) | SGinvestors.ioKeppel DC REIT (SGX:AJBU)

2H23 and FY23 results fell short of expectations due to rental arrears in China

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  • Coupled with a spike in finance costs, Keppel DC REIT reported a 16.1% y-o-y dip in 2H23 DPU to 4.332 Singapore cents.
  • For similar reasons, Keppel DC REIT's FY23 DPU slipped 8.1% y-o-y to 9.383 Singapore cents and fell short of our forecast by 6.2%.

Portfolio occupancy stable at 98.3% and positive rental reversions achieved....

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  • The master lessee at its Guangdong data centres did settle part of the sums in arrears amounting to CNY0.5m (~S$0.1m), but this amount is paltry in comparison to the arrears of CNY48.3m and request for security deposit top-ups of CNY32.2m as announced by Keppel DC REIT on 15 Dec 2023.

... but recovery progress of arrears a more critical development to monitor

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Above is the excerpt from report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full report in PDF @

OCBC Research Team OCBC Investment Research | 2024-01-29

Previous report by OCBC:
2023-10-17 Keppel DC REIT - Still Awaiting Acquisitions As Higher Finance Costs Bite.

Price targets by 2 other brokers at Keppel DC REIT Target Prices.

Listing of research reports at Keppel DC REIT Analyst Reports.

Relevant links:
Keppel DC REIT Share Price History,
Keppel DC REIT Announcements,
Keppel DC REIT Dividends & Corporate Actions,
Keppel DC REIT News Articles


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