Homepage
PR Newswire
KDC REIT's preference offering was ~150% oversubscribed, with nearly as much excess applications as the valid acceptances. Not a surprise considering the share price is consistently ~10% above subscription price.
KDC REIT is trading >NAV and <4% dividend yield, an outlier among S-reits. What more, many of its assets have relatively short leases and benchmarking it to other industrial REITs (which also have short leased Sporean assets), that is even more impressive. The difference is because KDC REIT has been able to do its financial engineering magic - using "expensive equity" to buy assets that give relatively high return of capital + return on capital. That is a very lethal combination.
VBs used to warn about KDC REIT been expensive. But if we look back at its share price over the last few years compared to other deeply discounted-high dividend yield S-reit peers, it has probably outperformed. So, we could argue that "been expensive" is probably KDC REIT's real moat.
Virtual Dialogue with Securities Investors Association (Singapore) (SIAS) for the proposed acquisition of Keppel DC Singapore 7 (KDC SGP 7) and Keppel DC Singapore 8 (KDC SGP 8), and the proposed entry into new master lease agreements and new facility management agreements in relation to Keppel DC Singapore 1 (KDC SGP 1) and Keppel DC Singapore 2 (KDC SGP 2)
UL: How do you see distribution per unit (DPU) panning out in the near future with this acquisition, and in the long run?
AL: We will see immediate proforma accretion to DPU, which will stabilise at approximately 7%, assuming 100% interest in KDC SGP 7 and KDC SGP 8, land lease title of approximately 25.5 years and with tax transparency being obtained. We have delivered healthy reversions in the past two quarters and remain optimistic about delivering continued value for our Unitholders.
https://links.sgx.com/FileOpen/Transcrip...eID=827855
KDC REIT is trading >NAV and <4% dividend yield, an outlier among S-reits. What more, many of its assets have relatively short leases and benchmarking it to other industrial REITs (which also have short leased Sporean assets), that is even more impressive. The difference is because KDC REIT has been able to do its financial engineering magic - using "expensive equity" to buy assets that give relatively high return of capital + return on capital. That is a very lethal combination.
VBs used to warn about KDC REIT been expensive. But if we look back at its share price over the last few years compared to other deeply discounted-high dividend yield S-reit peers, it has probably outperformed. So, we could argue that "been expensive" is probably KDC REIT's real moat.
Virtual Dialogue with Securities Investors Association (Singapore) (SIAS) for the proposed acquisition of Keppel DC Singapore 7 (KDC SGP 7) and Keppel DC Singapore 8 (KDC SGP 8), and the proposed entry into new master lease agreements and new facility management agreements in relation to Keppel DC Singapore 1 (KDC SGP 1) and Keppel DC Singapore 2 (KDC SGP 2)
UL: How do you see distribution per unit (DPU) panning out in the near future with this acquisition, and in the long run?
AL: We will see immediate proforma accretion to DPU, which will stabilise at approximately 7%, assuming 100% interest in KDC SGP 7 and KDC SGP 8, land lease title of approximately 25.5 years and with tax transparency being obtained. We have delivered healthy reversions in the past two quarters and remain optimistic about delivering continued value for our Unitholders.
https://links.sgx.com/FileOpen/Transcrip...eID=827855