- Keppel DC REIT (SGX:AJBU)'s 1H24 DPU of 4.549 Singapore cents (-9.9% y-o-y) slightly exceeded our expectations, reaching 53% of our FY24e forecast. This was due to stronger-than-expected positive portfolio rental reversions, with a major contract renewal in Singapore securing over 40% positive reversion.
- - Read this at SGinvestors.io -
- S$11.2mil from the settlement with DXC will be distributed in two equal tranches on a half-yearly basis for FY24. This will partially offset the loss from the non-collection of income at the Guangdong DCs.
- Maintain ACCUMULATE on Keppel DC REIT with a higher DDM-derived Keppel DC REIT target price of S$1.93 from S$1.86. We raise our FY24e/25e DPU estimates 5%/2% after factoring in the Japan acquisition and higher positive rental reversions for the portfolio.
- - Read this at SGinvestors.io -
- The current Keppel DC REIT share price implies FY24e/25e DPU yields of 4.7%/5.1%.
The Positives
Maintained high portfolio occupancy of 97.5% (1Q24: 98.3%) with a portfolio WALE of 6.4 years.
- Read more at SGinvestors.io.
Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.
Darren Chan Phillip Securities Research | https://www.stocksbnb.com/ 2024-07-29
Read also Phillip's most recent report:
2024-11-25 Keppel DC REIT - Acquisition Of Keppel DC Singapore 7 & 8.
Previous report by Phillip:
2024-10-21 Keppel DC REIT 3Q24 - Rental Reversions Remain Robust In 3Q24.
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
