- Keppel DC REIT announced that it has entered into a purchase and sale agreement with an unrelated third-party vendor for the acquisition of a 98.47% effective interest in a shell and core data centre located in West Tokyo, Japan.
- - Read this at SGinvestors.io -
- Management said that this is comparable to other shell and core data centre transactions in the Greater Tokyo region. Furthermore, the purchase consideration represents a slight discount of 2.5% to an independent valuation.
- Upon completion of this proposed acquisition, this would mark Keppel DC REIT’s maiden entry into the Japanese data centre market, which is the second largest data centre hub in Asia.
Room for positive rental reversions but only over the medium term
- - Read this at SGinvestors.io -
- We believe near-term growth would be limited as the lease does not come with annual rental escalations and there are still approximately seven years remaining on the lease term. However, over the medium term, there is room for a potential rental uplift, given that the passing rent of the property is 10- 15% below market rents, coupled with positive supply and demand dynamics in the market.
Slight DPU accretion on pro forma basis, but aggregate leverage ratio to increase by 3.2 ppt to 39.4%
- Read more at SGinvestors.io.
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 @ https://www.iocbc.com/.
OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2024-07-12
Read also OCBC's most recent report:
2024-07-29 Keppel DC REIT - Attention Grabbing 40% Rental Reversion From A Lease Renewal.
Price targets by 3 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
