Decided to add another REIT to my portfolio and this time
round I chose KEPPEL DC REIT.
Keppel DC REIT is a real estate
investment trust launched and managed by Keppel DC REIT Management Pte. Ltd. It
invests in the real estate markets across Asia-Pacific and Europe. The fund
acquires income producing data centre properties. Keppel DC REIT is based in
Singapore.
As the counter just IPO last year, therefore there isn't much
finance figures to see/view. The following figures are obtained from SGX StockFacts and are baseline to
4th February 2015 market closing price of $1.005.
Can’t really tell much from the fundamental analysis as the
counter doesn't have a long history. However judging from the figure above, we
can see that the Earning per share is well kept at 0.05. PE Ratio is under
acceptable range of 15-20 (my personal preference). Would definitely like to
see the PE Ratio to drop in the next quarter result. Hopefully it can deliver!
Another plus point that I really really like is the majority
shareholders in the counter. The top 5 stakeholders (all well known institution around the globe) add up to 89% of the total shares issued.
Dividend will be pay semi year basis. Forecast for distribution for 2015 will be around 6.8%.
Keppel DC REIT’s listing would see it raise gross proceeds of S$821.1 million. And the REIT would also draw upon S$295 million worth of borrowings. This would give the REIT a total sum of S$1.116 billion to work with. Of the total amount, S$537.9 million (48.2%) would go towards acquisition of the Singapore-based properties and the minority interests of the other properties in the portfolio. This is another pointer that I really like!
The remaining sum (51.8%) would be used for redemption of certain investors in the REIT (30.5%), repayment of existing debt (18.6%), expenses related to the listing (2%), and working capital (0.7%).
Also given in the prospectus,
•Explosive growth in internet usage and internet-enabled devices is driving data creation, especially in the video streaming, file sharing, e-commerce, and social networking spaces. Global data created has grown from 0.4 zettabytes (1021 bytes) in 2008 to 4.0 zettabytes in 2013; the amount of data created is then forecasted to jump nearly seven-fold to 28.1 zettabytes in 2018
•There’s a projected increase in organisations outsourcing their data centre needs as in-house data centres are less cost efficient and are becoming increasingly complicated to run. For an idea of how big the increase can be, the Asia-Pacific region is expected to see the proportion of outsourced data centres jump from 12.1% in 2013 to 38.5% in 2018.
•With the increase in data creation (as seen above) comes the growth in data transmission. Keppel DC REIT’s prospectus contains forecasts for global growth in IP (internet protocol) traffic to expand at an annual compounded rate of 21.0% between 2013 and 2018.
Lastly as we are moving into the era of internet world (you can see everyone is holding a Smartphone, Tablets and laptop everywhere). As a network engineer, I strongly believe the number of Date centers require in the future will only goes up. In addition, the recent Government’s move of building Singapore toward a SMART Nation is also in line with the growth rate of Data centres.
Company's result is likely to release around mid June and end December 2015.
Wish you big SUCCESS!
The remaining sum (51.8%) would be used for redemption of certain investors in the REIT (30.5%), repayment of existing debt (18.6%), expenses related to the listing (2%), and working capital (0.7%).
Also given in the prospectus,
•Explosive growth in internet usage and internet-enabled devices is driving data creation, especially in the video streaming, file sharing, e-commerce, and social networking spaces. Global data created has grown from 0.4 zettabytes (1021 bytes) in 2008 to 4.0 zettabytes in 2013; the amount of data created is then forecasted to jump nearly seven-fold to 28.1 zettabytes in 2018
•There’s a projected increase in organisations outsourcing their data centre needs as in-house data centres are less cost efficient and are becoming increasingly complicated to run. For an idea of how big the increase can be, the Asia-Pacific region is expected to see the proportion of outsourced data centres jump from 12.1% in 2013 to 38.5% in 2018.
•With the increase in data creation (as seen above) comes the growth in data transmission. Keppel DC REIT’s prospectus contains forecasts for global growth in IP (internet protocol) traffic to expand at an annual compounded rate of 21.0% between 2013 and 2018.
Lastly as we are moving into the era of internet world (you can see everyone is holding a Smartphone, Tablets and laptop everywhere). As a network engineer, I strongly believe the number of Date centers require in the future will only goes up. In addition, the recent Government’s move of building Singapore toward a SMART Nation is also in line with the growth rate of Data centres.
Company's result is likely to release around mid June and end December 2015.
Wish you big SUCCESS!
-ERIC KHOO
No comments:
Post a Comment