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Keppel DC REIT - OCBC Investment 2016-01-15: 4Q15 results within our expectations

Keppel DC REIT - OCBC Investment 2016-01-15: 4Q15 results within our expectations 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 | http://www.ocbcresearch.com/ 2016-01-15
OCBC Securities SGX Stock Analyst Report BUY Maintain BUY 1.24 Same 1.24


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