Keppel DC Reit *Official* (SGX: AJBU)

[Pocoyoz]

Keppel DC Singapore 3
Keppel Datahub 2 30-year lease (expiring in 2022) with option for
another 30 years

Keppel DC Singapore 1 (S25) Leasehold (Expiring 30 September 2025,
with option to extend by 30 years)

Keppel DC Singapore 2 (T25) Leasehold (Expiring 31 July 2021, with option to
extend by 30 years)

All Keppel DC Singapore going to expire
what happened when lease is up?
How much must DC reit pay to extend leasehold

 

[simon_84]

all want to buy , no one want to sell?

If I'm vested, will consider selling if need cash especially when price is around 52 weeks high plus no other factors for the share price to move up further.

 

[simon_84]

moi ish small investor. can only hoot once

Then you better know how to segregate your cash carefully, only a few months till year end.
Anything can happen by then.

 

[Minx99]

Keppel DC Singapore 3
Keppel Datahub 2 30-year lease (expiring in 2022) with option for
another 30 years

Keppel DC Singapore 1 (S25) Leasehold (Expiring 30 September 2025,
with option to extend by 30 years)

Keppel DC Singapore 2 (T25) Leasehold (Expiring 31 July 2021, with option to
extend by 30 years)

All Keppel DC Singapore going to expire
what happened when lease is up?
How much must DC reit pay to extend leasehold

I see you've also noticed these "dark specks" in it's portfolio. Dc 1 lease will expire in 5 years time. They need money to top it up for another 30 years. S'pore DCs contribute the main bulk of it's income. If my memory serve me well, the DC in Dublin also have a relatively short lease left. So investors need to keep some extra cash in their piggy bank for rights issue when they need to top up the lease. I also couldn't help but notice that they have omitted to state the remaining lease for the new DC 3 they are buying. Hopefully they are not paying $250M for a DC with only a few years of remaining land lease.

 

[Minx99]

hmm offer price not very juicy, plus my allocation in reits is kinda high, warchest intended for market downturn which is now.

dilemma dilemma dilemma zzzzz

The piece of steak served in front of me don't seem to have much meat on it

 

[Genosis]

The piece of steak served in front of me don't seem to have much meat on it

But it is premium fillet mignon......

 

[Perisher]

I see you've also noticed these "dark specks" in it's portfolio. Dc 1 lease will expire in 5 years time. They need money to top it up for another 30 years. S'pore DCs contribute the main bulk of it's income. If my memory serve me well, the DC in Dublin also have a relatively short lease left. So investors need to keep some extra cash in their piggy bank for rights issue when they need to top up the lease. I also couldn't help but notice that they have omitted to state the remaining lease for the new DC 3 they are buying. Hopefully they are not paying $250M for a DC with only a few years of remaining land lease.

From what you say, seems safer to keep away from this counter.

 

[Perisher]

But it is premium fillet mignon......

You are not worried about the expiring lease and potential upcoming rights?
Seems safer to enter after 2021 at least.

 

[Genosis]

I see you've also noticed these "dark specks" in it's portfolio. Dc 1 lease will expire in 5 years time. They need money to top it up for another 30 years. S'pore DCs contribute the main bulk of it's income. If my memory serve me well, the DC in Dublin also have a relatively short lease left. So investors need to keep some extra cash in their piggy bank for rights issue when they need to top up the lease. I also couldn't help but notice that they have omitted to state the remaining lease for the new DC 3 they are buying. Hopefully they are not paying $250M for a DC with only a few years of remaining land lease.

I dun think is 'land' lease.....should be 'tenant' lease?

 

[Genosis]

You are not worried about the expiring lease and potential upcoming rights?
Seems safer to enter after 2021 at least.

Not too worried.....Keppel DC still has much longer WALE than say....retail & industrial REITs

Besides, 5 years between now and 2021......can potentially collect at least 25% in distributions and the demand for DC is still more than the supply unlike retail, industrial and office space which are facing oversupply and lower demand

 

[Bedokian]

I dun think is 'land' lease.....should be 'tenant' lease?

It is land lease.

For me, I would not be concerned about the expiring lease, since there is an option for extension.

Also, from the SLA website, the extension is likely to be granted since DCs in a way promote the economy.

 

[Genosis]

It is land lease.

For me, I would not be concerned about the expiring lease, since there is an option for extension.

Also, from the SLA website, the extension is likely to be granted since DCs in a way promote the economy.

Thanks for clarification.....

 

[Bedokian]

Thanks for clarification.....

To add, the application for lease extension is probably a few K or at most 10s of Ks.

http://www.sla.gov.sg/Portals/0/FF-LMS-06-02.pdf

 

[Asphodeli]

But it is premium fillet mignon......

It's a premium fillet mignon but not very tasty...

Sent from Sony E6533 using GAGT

 

[Pocoyoz]

Cache Logistics Trust announced that they have signed an option to purchase Precise Two Building (along 15 Gul Way) for S$55.2m (inclusive of upfront land premium of S$6.15m). (shorter land lease tenure of c20 years. )

dunno how they calculate

 

[Genosis]

It's a premium fillet mignon but not very tasty...

Sent from Sony E6533 using GAGT

Maybe should change the chef.....

 

[Genosis]

To add, the application for lease extension is probably a few K or at most 10s of Ks.

http://www.sla.gov.sg/Portals/0/FF-LMS-06-02.pdf

Thanks! Learnt something new today......

 

[Minx99]

Not too worried.....Keppel DC still has much longer WALE than say....retail & industrial REITs

Besides, 5 years between now and 2021......can potentially collect at least 25% in distributions and the demand for DC is still more than the supply unlike retail, industrial and office space which are facing oversupply and lower demand

By the way, there is also oversupply of DCs in S'pore as well. This is evident from the 8% negative rental reversion( for 5 years) they had to give to a major client at SGP2. This does not bode well for the size of my forthcoming red packets. They manage to eke out a slight increase in occupancy at SGP 1 from 85.7% to 87.6%, that again after offering lower than preceding rental rates for the first year. This is like a diamond, it looks attractive & sparkling from afar, but on closer examination, there are flaws & imperfections in it. The devil is in the details.

 

[Perisher]

By the way, there is also oversupply of DCs in S'pore as well. This is evident from the 8% negative rental reversion( for 5 years) they had to give to a major client at SGP2. This does not bode well for the size of my forthcoming red packets. They manage to eke out a slight increase in occupancy at SGP 1 from 85.7% to 87.6%, that again after offering lower than preceding rental rates for the first year. This is like a diamond, it looks attractive & sparkling from afar, but on closer examination, there are flaws & imperfections in it. The devil is in the details.

Not sure why they buy more if there is oversupply.
Anyway, they have a lot of overseas dc as well.

 

[onlybuyneversell]

Thanks Asphodeli.

I sold off my shares today. Not worth it to buy now and make it 1000 shares.