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10-12-2014, 08:04 AM
(09-12-2014, 11:41 PM)swakoo Wrote:(09-12-2014, 11:30 PM)mscheng13 Wrote:(09-12-2014, 03:16 PM)Contrarian Wrote: Anyone has any guess on the significant sell-off last few days?
REIT supposed to be big kicker...
Funds are switching out of kep T&T to buy the reit.
For it's DC reit, 45% of it's income comes from 2 data centers located in Singapore. These 2 data centers sit on land leasehold tenures of about 7 and 11 years remaining with option for 30 years extension if terms are not breached.
When the time comes (and it's not too far off), additional capital raising will be needed to extend the lease tenure and should significantly affect the yield. Institutional investors seem not bothered at all with this, subscribing the placement 24.4 times.
When u are fun mgr, not Buffet, you will be constantly under pressure for performance and hence DC REIT is a new concept that will help in such performance - 7 to 11 years is such a long time as many that would have made enough would have retired to make their own $