Most recently, Goldman Sachs is blaming KDC REIT’s decline on Neo Telemedia, the master lessee of KDC REIT’s data centres. “With Guangdong data centre market oversupplied, we lower FY2024 and FY2025 DPUs by 10% and 8%, and factor in below-market occupancy of 40% to 50%,” Goldman Sachs says. To be fair, Goldman Sachs had a sell on KDC REIT back in May, and it has now upgraded it to neutral.
Suntec REIT reported a set of mainly negative results in its 3QFY2023 business updates on Oct 23 with analysts unenthused based on the reports that were issued. So far (as at October 24), the market has ignored the mainly negative outlook to reward Suntec REIT with either no decline in unit price, or a small gain. In Singapore, Suntec REIT owns a one-third stake in Marina Bay Financial Centre Towers I and II, a one-third stake in One Raffles Quay, and Suntec City. It also owns properties in London, Sydney, Melbourne and Adelaide.
Keppel DC REIT (KDC REIT) reported a set of fair results in its 3QFY2023 business updates and analysts were indeed enthused by the data centre landlord. They sounded mainly positive in their various updates, with a couple of analysts explaining KDC REIT’s acquisition strategy. Yet, its unit price fell more than 15% in the four sessions after the results were announced. “Why do analysts think acquisitions are positive?” asks a market participant.
