KEPPEL DC REIT
AJBU.SI
Keppel DC REIT: 4Q15 results within our expectations
- Keppel DC REIT (KDCREIT) reported its 4Q15 results which met our expectations, but its DPU of 1.64 S cents came in slightly above management’s IPO forecast by 1.9%. However, gross revenue of S$24.8m was 2.1% below its projection.
- For FY15, KDCREIT’s gross revenue and DPU was 1.7% and 1.9% above its IPO forecast at S$107.7m and 6.84 S cents, and this constituted 103.4% and 100% of our forecasts, respectively.
- Despite recent media reports of a large expected increase in supply of data centres in Singapore this year, we note that the fitting out period can take a very long time and hence the impact may not be as bad as it seems.
- Nevertheless, we do expect rental reversions to moderate, although overall demand for data centre space is still healthy.
- Maintain our BUY rating and S$1.24 fair value estimate on KDCREIT.
Wong Teck Ching Andy CFA
OCBC Securities
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http://www.ocbcresearch.com/
2016-01-15
OCBC Securities
SGX Stock
Analyst Report
1.24
Same
1.24
