Keppel DC REIT: A Buy Rating on Strong Growth Potential and Solid Financials
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 22 2024
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Source: Business Insider
- Analyst Ratings: Wall Street analyst Darren Chan from Phillip Securities maintained a Buy rating on Keppel DC REIT with a S$1.86 price target, citing growth potential and resilience factors.
- Financial Uplift: Keppel DC REIT received S$13.3 million in settlement with DXC, offsetting lost rental income from Guangdong data centers, providing relief from non-collection of rent.
- Organic Growth Prospects: Forecasted 4% rental reversions for fiscal year 2024, high occupancy rate, and prudent capital management strategies contribute to confidence in the REIT's performance.
- Additional Catalysts: Potential for accretive acquisitions, collection of past-due rents, and stable yield forecast support the positive outlook on Keppel DC REIT.
- Other Analyst Rating: UOB Kay Hian also maintained a Buy rating on the stock with a S$2.15 price target, indicating continued positive sentiment towards the company.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
