Added: Keppel DC Reit

 

Bought 17,500 shares of Keppel DC REIT at $2.28 on 20 Jan.

Reason for buying:

1) 52w low

Past 1 year, KDC share price is ugly (1 way down). 

In term of fundamental, I don't think there is much different except on 28 Apr, KDC announced that they will not be pure DC play anymore (Expansion of Investment Mandate).  

However, KDC had state that at least 90% of AUM will continue to be data centres.

This is similar to you would like to allocate max 10% of your portfolio to cryptocurrency.  Sounds fine and good with me.

2) Premium to NAV dropped to +85% as compare to +101.6% 3 months ago

3) >$2b potential DC asset from sponsor pipeline

This is important to ensure there will be growth in AUM & dividend payout.

4) M1 NetCo Bonds and Preference shares

I am not sure why some shareholders doesn't like this M1 opportunity. I think it is alot better than the Mapletree merger (My thoughts on MCT (Ketchup) x MNACT (Chili) = MPACT (Nacho cheese)).

M1 is the second largest mobile operator after Singtel. I am M1 customer (both mobile and fibre) for more than 10 years. 

I actually quite like this as it provide stable cashflow for KDC for next 15 years ($11m/yr) at 9.17%pa with NO operational management risks or capex obligations in the future.

In comparison:

• Invest in KDC, get 4+% dividend per annum (pa). 
• Top up money in CPF SA at 4%pa with lockup for XX years (depending on your age)
• Put in Singapore Saving Bond (SSB) for 10years only get average 1.64%pa

Aside from the cashflow, it is also DPU accretive and increase AUM. REITs nowadays are trying hard to enlarge their AUM.

5) Divestment

Aside from the acquisition, the ability in good divestment outcome is important too.

 

6) Lower than the Private Placement (PP) price of $2.522 in Aug 2021

7) Complement with Mapletree Industrial Trust (MIT) DC portfolio

I added MIT few days ago (link).

MIT have 49.4% of its DC AUM in North America and 3.5% in Singapore while KDC did not have any DC in America.

Related post:

1) Added: Mapletree Industrial Trust

2) My thoughts on MCT (Ketchup) x MNACT (Chili) = MPACT (Nacho cheese)