Keppel DC REIT - UOB Kay Hian 2024-11-20: Rebalancing To Benefit From AI Tailwind While Deleveraging

• Keppel DC REIT is acquiring two AI-ready hyperscale data centres SGP7 and SGP8 located at 82 Genting Lane in Singapore from a 60:40 joint venture between Keppel (SGX:BN4)’s Connectivity Division and Cuscaden Peak Investments for S$1.38b.

AI-capable & fully committed.

• - Read this at SGinvestors.io -
• SGP8 received TOP in Aug 24. It is expected to complete fitting out by 1Q25 and will be fully occupied by 3Q25.

Scaling up in home base Singapore.

• - Read this at SGinvestors.io -
• Both SGP7 and SGP8 are 100% contracted to global hyperscalers from the cloud services, Internet enterprise and telecommunications sectors on a colocation basis. The proportion of rental income from hyperscale customers would increase from 51.5% to 64.2%.
• Keppel DC REIT’s exposure to Singapore will expand from 53% to 67% of AUM. Singapore has one of the lowest colocation vacancies of 1% in the Asia Pacific region.

Structure of shares and notes transaction.

• 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