As at Feb 9, Guangdong Bluesea Data Development, the tenant at GDC 1, 2 and 3, has only settled RMB500,000 of the RMB48.3 million in arrears. Therefore, Chan thinks Bluesea will likely be unable to meet its rental obligations, and Keppel DC REIT will have to eventually replace the tenant.
PhillipCapital Research analyst Darren Chan has downgraded Keppel DC REIT to “accumulate” and lowered his target price to $1.86 from $2.26 following the trust’s FY2023 results release.
Chan notes that Keppel DC REIT’s FY2023 distribution per unit (DPU) of 9.38 cents fell short of his expectations at 94.7% of his FY2023 forecast. This is mainly due to the uncollected rental and coupon income of about 5.5 months amounting to $10.5 million at the Guangdong Data Centres (GDCs).
