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] The counter saw its 2015 full year revenue and distributable income outperformed forecast as in the IPO prospectus by 2%.
[2] In the countries where Keppel DC operates, World Bank projected economy growth at 1 to 3%. Against such weak operating environment, industry fundamental remain intact due to proliferation of smart devices, internet penetration. Cisco's Global Cloud Index projected global cloud traffic to be more than quadruple from 2014 to 2019. It pushed high demand towards data centers.
[3] Its current occupancy level is at 95% with weighted average lease expiry of 8.7 years as at end of 2015.
INVESTMENT THEMES:
[1] Intellicentre 2 at Sydney was acquired on August 2015. 2015 shall see its full year contribution to revenue.
[2] Current price translates to annual dividend yield at 7% which is pretty attractive. This is the only domestic REIT counter which provides investor a proxy into big data booming.
PRICE TREND:
*** Note: Same counter has been mentioned in July[4] ***
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