Keppel DC REIT - UOB Kay Hian 2024-01-29: Hope For The Best But Prepared For The Worst

• Keppel DC REIT's 2H23 results were affected by provisions for arrears from Guangdong data centres of S$10.5m, equivalent to 5.5 months of rental income from DC 1 and DC 2 and coupon income from DC 3. Keppel DC REIT has drawn up a recovery road map and seeks to resolve the arrears amicably.
• - Read this at SGinvestors.io -
• Geographical diversification has cushioned the negative impact from Guangdong data centres. Maintain BUY rating on Keppel DC REIT.

Keppel DC REIT's 2H23 Results

• Keppel DC REIT (SGX:AJBU) reported 2H23 DPU of 4.332 cents (-16.1% y-o-y), which was below our forecast of 4.8 cents. See Keppel DC REIT's dividend dates.

Taking the hit from Guangdong data centres.

• - Read this at SGinvestors.io -
• The decline in Keppel DC REIT's distribution is entirely due to the provisions, which reduced 2H23 DPU by 0.649 cents or 15%.

Resolving the arrears amicably where possible.

• Read more at SGinvestors.io.

Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Read also UOB's most recent report:
2025-04-21 Keppel DC REIT 1Q25 - Contributions From SGP7 & SGP8 Kick In.

Previous report by UOB:
2025-03-20 Keppel DC REIT - Sustainable Growth In Singapore; Green Shoots In China..

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 Dividend Payout Dates & Corporate Actions,
Keppel DC REIT News