Keppel DC REIT Likely on Lookout for Acquisition Opportunities -- Market Talk

Dow Jones2022-10-27

0726 GMT - Keppel DC REIT is likely on the lookout for acquisition opportunities, based on management comments, says Daiwa Capital Markets analysts in a research report as they reaffirm the unit's buy rating. Its growth strategy seems focused on acquiring stable and income-producing data centers, and the REIT is unlikely to conduct any divestments or development activities in the near term, the analysts note. Management also highlighted that tech demand remains resilient, with tenants seeking to increase power capacity at data centers, they add. However, Daiwa trims the unit's target price to S$2.050 from S$2.300 to reflect factors including a higher long-term bond yield assumption. Units are 1.7% higher at S$1.770. (ronnie.harui@wsj.com)

 

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October 27, 2022 03:26 ET (07:26 GMT)

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