Keppel Telecommunications & Transportation

[cfa]

Rather surprise to see a high CAPEX biz model going to reit its assets. Reits usually don't retain its earning or maximum 10% , how to meet its CAPEX down the road ?

[Nick]

Rather surprise to see a high CAPEX biz model going to reit its assets. Reits usually don't retain its earning or maximum 10% , how to meet its CAPEX down the road ?

Why would leasing of data centre be capital intensive ? Don't MIT already started leasing out data centres locally ? There are pretty successful data center reits in America.

(Not Vested)

[cfa]

Rather surprise to see a high CAPEX biz model going to reit its assets. Reits usually don't retain its earning or maximum 10% , how to meet its CAPEX down the road ?

Why would leasing of data centre be capital intensive ? Don't MIT already started leasing out data centres locally ? There are pretty successful data center reits in America.

(Not Vested)

In this case can consider if the yield is attractive.

[propertyinvestor]

Despite all the naysaying, I steadfastly held on to KTT over the past 14mths and I believe the stock is headed back to the good old when it easily traded above $2

[piggo]

The article in reference to

http://infopub.sgx.com/Apps?A=COW_CorpAn...rticle.pdf

Resignations hit Keppel T& T ahead of Reit listing

SEVERAL senior resignations in recent weeks at Keppel Telecommunications and Transportation (Keppel T& T) and its data centre business could raise questions over its highly anticipated listing of the unit.

The Business Times understands that Keppel T& T' s chief executive officer, Pang Hee Hon, plans to step down from the post which he has held since January 2010. The decision takes place at a pivotal time when Keppel T& T is readying itself for a milestone transaction - to spin off its data centre business and list it as a real estate investment trust (Reit) on Singapore Exchange' s mainboard.

Mr Pang' s impending resignation follows on the heels of other departures at Keppel T& T' s data-centre business, more specifically at Securus Data Property Fund, which is at the heart of the assets to be injected into the to-be-listed Reit.

Just two weeks back, Bruno Lopez, the 49-year old who had managed the firm' s data centre business and led many acquisitions in Asia and Europe, bowed out as chief executive of Keppel Data Centre. Keppel T& T announced Mr Lopez' s resignation on April 17, which took effect on April 20, saying he was leaving " to pursue other career opportunities" .

Mr Lopez was also co-fund manager of Securus, the world' s first Syariah-compliant data centre fund and jointly managed by Keppel T& T' s wholly owned subsidiary and Singapore-based private equity firm, AEP Investment Management (AEPim).

BT understands that two other key executives at Securus have also thrown in the towel: co-fund manager Jonathan King, who is also AEPim' s principal and director, and Nicholas Toh, senior vice-president of investments.

When contacted, a Keppel T& T spokesman confirmed that Mr Pang " has expressed his desire to leave" the firm because of personal reasons.

" Keppel T& T is exploring its options, and will make an announcement at an appropriate time," said the spokesman, who confirmed that Mr King and Mr Toh have also tendered their resignations from Securus Fund.

The company is still exploring the plan to list a data centre Reit. " That plan has not changed and we will make an announcement in the event of any material development," the spokesman added.

The resignations could have something to do with disagreements over how to move forward with the IPO, including remuneration packages for executives, a source suggested. " Why would key people who have worked so hard to grow the data centre business, simply up and leave and give up the carrots now that the business is at the cusp of an IPO?"

When asked if the exodus could be due to some differences with Keppel T& T chairman Teo Soon Hoe over the impending IPO, the spokesman said: " We are not aware of any differences."

Securus Fund, deemed the prized asset in Keppel T& T' s stable of data centre assets, has closed two rounds of capital raising so far, drawing in investors from the Middle East and Asia, including Brunei' s Perbadanan Tabung Amanah Islam Brunei (TAIB) as cornerstone investor.

The departures have sparked concerns that the listing of its data centre operations, which has galvanised the stock since the January announcement, may be affected. Some had expected the listing to take place in the first half of this year.

" Spinning off the asset will unlock huge shareholder value, failing which Keppel T& T shareholders will be back to square one," said one analyst.

Shares of Keppel T& T, a subsidiary of Keppel Corp, which, in turn, is 20 per cent owned by Temasek Holdings, jumped on the listing news early this year to a six-year high of $1.87 on Jan 8. The shares closed at $1.785 yesterday.

The sizeable listing, which reportedly could raise some $500 million, is deemed a grand way to reward shareholders as the data centre business, a major sweet spot for the group, has notched up stellar growth.

Keppel T& T' s recently released first-quarter scorecard attests to that for the period ended March 2014, the data centre segment made some $6 million in net profit on the back of $14 million in revenue, churning out roughly a third of Keppel T& T' s top and bottom lines.

The business is expected to gain more traction with the growth in cloud computing, e-commerce and social media.

" The data centre business is very niche and specialised and it' s not easy to replace these talents quickly. No ship can run without the captain for too long," said an analyst.

[opmi]

Why would so many people leave when there is going to be
a big cash out? Only reason is boss not likely to share the spoils or
they setting up a new competitor.

[Contrarian]

Got better offer to join competitor. Some good opportunities worth more than $$$... you got clean slate as well to create.

[piggo]

Why would so many people leave when there is going to be
a big cash out? Only reason is boss not likely to share the spoils or
they setting up a new competitor.

Setting up data centers, logistic networks are all rather capital intensive businesses... not easy for people to just leave and set up a new competitor.

Regardless, think there may be unforeseen hiccups to REIT their data centers? Guess the dip in share price is a reflection of that. After all no announcement also means no material developments (after so long!).

[cyclone]

Keppel Logistics expands its footprint into Australia

Keppel Logistics Pte Ltd (Keppel Logistics), a wholly owned subsidiary of Keppel Telecommunications & Transportation Ltd (Keppel T&T), has expanded its logistics capabilities down under with Keppel Logistics (Australia) Pty Ltd. The wholly-owned subsidiary of Keppel Logistics will manage a 10,000 square metre warehouse in Brisbane, Australia.

Located 10 kilometres from Brisbane City, the Stafford facility recently commenced operations in August and establishes Keppel Logistics’ foothold as one of the leading logistics players in the book publication segment. It currently serves as a Regional Distribution Centre serving Wiley’s Australia and New Zealand markets, with Keppel Logistics (Australia) providing warehouse management and local transportation services for the global publishing company. The facility is expected to handle more than 2 million books per annum.

Mr Thomas Pang, CEO of Keppel T&T said, “Keppel Logistics’ strong track record in providing quality warehousing and third-party logistics services has enabled us to build lasting partnerships with our clients. We are delighted that our productivity and efficiency have paved the way for our maiden foray into Australia and more opportunities in the Asia Pacific region.”

Keppel Logistics’ move into Australia follows an agreement with Wiley Singapore in 2013 to provide similar services in Singapore, serving the ASEAN market. Keppel Logistics’ facilities in Singapore also house the Regional Distribution Centres of other leading publishers, handling
some 1.5 million books per month.

The above mentioned transaction is not expected to have material impact on the net tangible assets or earnings per share of Keppel T&T for the current financial year.

http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com

[cyclone]

Keppel T&T announced its financial results for third quarter and 9 months ended 30 September 2014

NINE MONTHS FY2014 RESULTS HIGHLIGHTS :
1. Revenue grew by 26% to $153.6 million.
2. Net profit attributable to shareholders improved by 6% to $48.2 million.
3. Earnings per share improved by 6% to 8.7 cents.
4. Net asset value per ordinary share increased by 7% to 91 cents per share.

PROSPECTS :
In the Logistics Division, high occupancy was maintained for the Group’s facilities while remaining focused on the implementation of various expansion projects. During the quarter, operations commenced at Keppel Logistics (Australia) Pty Ltd. The 10,000 square metre warehouse in Brisbane serves one of the world’s leading book publishers. Over the next few months, the Group’s logistics footprint will be further strengthened with the completion of Tampines Logistics Park warehouse in Singapore, and Tianjin Eco-City Distribution Centre in China. Development on the food logistics park in Anhui and Jilin provinces in China are underway. However, the Jilin project is slowing down its construction due to the overall delay in the Food Zone Development, which the project team has been working closely with the local authorities to resolve.

Driven by strong market demand, the Group’s data centre facilities continue to enjoy high occupancy. Keppel Datahub 2, the newest data centre development in Singapore, has received a healthy take-up rate while fitting out work has been progressing well. The Group continues to explore development and acquisition opportunities in Asia and Europe. The planned data centre real estate investment trust to be listed on the Main Board of Singapore Exchange Securities Trading Limited is ongoing, subject to market conditions and obtaining the relevant regulatory
approvals.

More details at http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com