KDC REIT’s DPU of 10.214 cents for FY2022 was 3.7% higher than its DPU of 9.851 cents in FY2021, and in line with CGS-CIMB expectations at 100.6% of its FY2022 forecast. Lock and Ong believe the REIT’s global acquisitions will be enough to overcome near-term headwinds. “KDC REIT is largely insulated from rising energy costs as electricity costs are borne or largely (over 90%) passed through to tenants,” they say.
Analysts are mixed on Keppel DC REIT (KDC REIT) following its FY2022 report released on Jan 31. CGS-CIMB Research and DBS Group Research have maintained their “add” and “buy” calls for the REIT, while Citi Research and OCBC Investment Research have kept their “neutral” and “hold” recommendations.
CGS-CIMB’s Lock Mun Yee and Natalie Ong have increased their target price (TP) to $2.39 from $2.12 previously, while Dale Lai and Derek Tan of DBS have increased their TP to $2.35 from $2.20 previously. OCBC’s research team has also increased its TP to $1.98 from $1.78 previously. Citi analyst Brandon Lee’s TP for the REIT stands at $1.91.
