Keppel DC REIT poised to benefit from growing cloud computing trend

It’s the first data centre REIT listed in Asia.

Keppel DC REIT (KDCREIT) is poised to enjoy the proliferation of big data and cloud computing trends in Asia, according to a report by OCBC.

“Being the first data centre REIT to be listed in Asia, KDCREIT offers investors a unique pure-play exposure to this fast growing industry, in our view,” stated OCBC.

Further, KDCREIT is striving to drum up its inorganic growth. It had its IPO on SGX-ST just last year, but on 10 August 2015, the company already bagged an Australia acquisition in the form of data centre called Intellicentre 2. Soon thereafter, the company proposed a maiden acquisition in Germany for EUR84m.

Company management expressed that it has guided that it will still be on the prowl for more acquisition opportunities from both its right-of-first-refusal assets pipeline as well as through third-party acquisitions.

“We like KDCREIT for its strong positioning within the data centre industry, as well as its long WALE (8.9 years as at 30 Sep 2015) and prudent capital management. It has hedged 90% of its total borrowings and hedged 100% of its forecasted foreign-sourced distribution up till 1H17,” said OCBC.

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