Year-to-date (ytd), units in Keppel DC REIT are down by 2.71% based on its $2.15 closing price on Tuesday (Jan 28). Similarly, units in Mapletree Industrial Trust (SGX:ME8U
) (MINT) are down by 4.02% to close at $2.15 on Jan 28. Units in Digital Core REIT are down by 5.17% ytd based on its 55 US cent (75 cents) close on Jan 28.
The sell-off in data centre Singapore REITs (S-REITs), triggered by concerns over artificial intelligence (AI) development costs and US export controls, is “overdone and unjustified”, says Citi Research analyst Brandon Lee.
This is given that the pace of AI adoption is likely to accelerate in future, especially if cheaper models and, or lower costs do work out eventually, he adds, referring to Chinese AI start-up DeepSeek’s release of its open-source model, R1.
