OVERVIEW:
Being a real estate investment trust (REIT), the counter mainly invest on real estate assets which are primarily used for data center purposes. Its current portfolio comprises 8 data centers which strategically located in key data center hubs across 7 cities Asia Pacific and Europe. Keppel T&T (refer to posting on 8 May, 2015) is the sponsor for the counter.
HIGHLIGHTS:
(1) 2Q2015 results saw revenue of $26 mil which beat prospectus forecast by 4%.
(2) The counter has hedged against currencies, AUD and EUR for 2 years, thus minimizing impact on its earning from currency fluctuations until 2017.
(3) DBS rated this counter at $1.12 based on Discounted Cash Flow model. (DCF)
INVESTMENT THEMES:
(1) Based on 1H15 distribution per unit (DPU) of $0.0356, full year dividend yield could reach > 6% based on current trading price ~ $1.08 per share.
(2) New acquisition of Intellicentre 2 in Sydney, Australia is set to contribute revenue income of 2H2015.
(3) Since debut on SGX end of 2014, the counter has been riding upward trend until result announcement last week. Its resilient nature against various market downturn proves its worthiness to be one defensive counter in investor's portfolio.
(4) Considering current low debt ratio < 30%, investor could expect the counter to expand existing portfolio thus producing higher return in distribution.
ENTRY PRICE:
Accumulate ~ 1.08.
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