Maybank Initiates Coverage on Keppel DC REIT with Buy Rating and S$2.40 Target Price, Highlighting Growth Potential in AI and Cloud Technologies - To The Moon

Maybank Initiates Coverage on Keppel DC REIT with Buy Rating and S$2.40 Target Price, Highlighting Growth Potential in AI and Cloud Technologies

Maybank Securities analyst Krishna Guha initiated coverage on Keppel DC REIT (SGX: AJBU) with a "Buy" rating and a S$2.40 target price in a research note. The analysis highlighted the REIT's strong growth potential driven by AI, cloud migration, and digitalization trends. Maybank Research forecasts high demand growth for data centers globally, with Keppel DC REIT positioned to benefit from this trend. The REIT's data centers in Europe and Asia are expected to experience significant growth. Units of the REIT are trading 1.3% higher at S$2.28.

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- Maybank Initiates "Buy" on Keppel DC REIT With S$2.40 Target, Citing AI And Cloud-Driven Growth Potential
  2025-07-18
- Karen333Karen333
  ·2025-07-20
  I think the report forgets to mention that the managers buy an asset in China and lease it back to the seller - and they default on the rent indefinitely and basically tell them they can do nothing about it because nobody else will rent it. The courts will not help and the client basically monetised their assets laughed at them and still get to use the building for free. Just a very poor reflection on management, competence and governance. I would not buy.
  Maybank Initiates "Buy" on Keppel DC REIT With S$2.40 Target, Citing AI And Cloud-Driven Growth Potential
  Maybank Securities analyst Krishna Guha initiated coverage on Keppel DC REIT (SGX: AJBU) with a "Buy" rating and a S$2.40 target price in a July 17 research note, highlighting the REIT's strong...
  Maybank Initiates "Buy" on Keppel DC REIT With S$2.40 Target, Citing AI And Cloud-Driven Growth Potential
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Units of the REIT are trading 1.3% higher at S$2.28.","image":"https://community-static.tradeup.com/news/1201dcc0482be040348fb8d4f228bb68","type":2,"style":4,"follow":false,"createTime":1752819327662,"userCounts":0,"rnLink":"https://laohu8.com/RN?name=RNTheme&page=/theme/special/finance&rndata={\"themeId\":f6707c6f7a3c61537c6af9e3b5dee734}&rnconfig={\"headerBarHidden\": true}","subscribe":false,"allowSubscriptionFinancial":false,"subscriberCount":0,"allowFollow":false,"hasReward":false,"rewardScore":0,"rewardValidDate":0,"rewardEnd":false,"symbols":[],"tweetCounts":1,"categoryId":"2929bb7468f5415f853fd96fb35d7c3b","options":[],"votedOptionId":"","totalUserCount":0,"followStatus":false,"themeName":"Maybank Initiates Coverage on Keppel DC REIT with Buy Rating and S$2.40 Target Price, Highlighting Growth Potential in AI and Cloud Technologies","tweetAmount":1,"imageIsDefault":false,"aiDerivativeIssues":[]},"tab":"news","newsList":[{"id":315680,"article_id":"1165026317","title":"Maybank Initiates \"Buy\" on Keppel DC REIT With S$2.40 Target, Citing AI And Cloud-Driven Growth Potential","subtitle":"","subtitle_show":0,"pub_time":1752809906728,"source_id":"","language":"en","url":"","is_publish_highlight":0,"symbols_score_info":{"AJBU.SI":1.1},"rights":null}],"isFinancial":true,"allList":[{"id":458691678855168,"gmtCreate":1752995599744,"gmtModify":1753002589052,"author":{"id":"4106699629777400","authorId":"4106699629777400","name":"Karen333","avatar":"https://community-static.tradeup.com/news/5a24d4a63169cc05795b5cf99d8bb3bc","crmLevel":11,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4106699629777400","authorIdStr":"4106699629777400"},"themes":[],"title":"","htmlText":"I think the report forgets to mention that the managers buy an asset in China and lease it back to the seller - and they default on the rent indefinitely and basically tell them they can do nothing about it because nobody else will rent it. The courts will not help and the client basically monetised their assets laughed at them and still get to use the building for free. Just a very poor reflection on management, competence and governance. I would not buy.&nbsp;","listText":"I think the report forgets to mention that the managers buy an asset in China and lease it back to the seller - and they default on the rent indefinitely and basically tell them they can do nothing about it because nobody else will rent it. The courts will not help and the client basically monetised their assets laughed at them and still get to use the building for free. Just a very poor reflection on management, competence and governance. I would not buy.&nbsp;","text":"I think the report forgets to mention that the managers buy an asset in China and lease it back to the seller - and they default on the rent indefinitely and basically tell them they can do nothing about it because nobody else will rent it. The courts will not help and the client basically monetised their assets laughed at them and still get to use the building for free. Just a very poor reflection on management, competence and governance. I would not buy.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/458691678855168","repostId":"1165026317","repostType":2,"repost":{"id":"1165026317","kind":"news","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings","home_visible":1,"media_name":"TigerNews SG","id":"1050470178","head_image":"https://community-static.tradeup.com/news/f17a9a7b68c877792d5e556261e9e709"},"pubTimestamp":1752809906,"share":"https://ttm.financial/m/news/1165026317?lang=en_US&edition=fundamental","pubTime":"2025-07-18 11:38","market":"sg","language":"en","title":"Maybank Initiates \"Buy\" on Keppel DC REIT With S$2.40 Target, Citing AI And Cloud-Driven Growth Potential","url":"https://stock-news.laohu8.com/highlight/detail?id=1165026317","media":"TigerNews SG","summary":"Maybank Securities analyst Krishna Guha initiated coverage on Keppel DC REIT (SGX: AJBU) with a \"Buy\" rating and a S$2.40 target price in a July 17 research note, highlighting the REIT's strong...","content":"<p>Maybank Securities analyst Krishna Guha initiated coverage on Keppel DC REIT (SGX: AJBU) with a \"Buy\" rating and a S$2.40 target price in a July 17 research note, highlighting the REIT's strong positioning to capitalize on structural growth drivers including digital transformation, cloud migration, and artificial intelligence (AI) adoption.</p><p>The report emphasizes that data centers stand to benefit from multiple secular trends: exponential growth in data generation/consumption, accelerating enterprise cloud adoption, expanding AI applications, and increasingly stringent cybersecurity/data protection requirements. Citing DC Byte projections, Guha forecasts 17-19% compound annual growth (CAGR) for global data center demand through 2028, with Keppel's core European and Asian markets expected to mirror this trajectory.</p><p>As Asia's first pure-play data center REIT (listed 2014), Keppel currently operates 24 facilities across 10 countries with S$5 billion AUM, maintaining &gt;96% occupancy across its Singapore, European, Chinese, Australian and Japanese assets. The REIT demonstrated operational resilience in FY2024 with rental reversions reaching 39%, contributing to 0.7% DPU growth, while Q1 2025 saw a 14.2% DPU surge through active portfolio management and strategic acquisitions.</p><p>Financially, Keppel maintains a conservative balance sheet with 30.2% gearing, 5.8x interest coverage, and S$886 million debt capacity for growth initiatives. However, the analyst notes supply constraints in European markets due to power/land scarcity could present challenges.</p><p>Backed by sponsor Keppel's decade-long data center expertise (currently operating 650MW capacity with plans to expand to 1.2GW including innovative near-shore net-zero concepts), the REIT benefits from unique development pipelines. Guha highlights Keppel's attractive 4.3% yield and below-peer gearing as key differentiators, though cautions about rising electricity/carbon costs, tightening climate regulations, interest rate volatility, and FX risks.</p><p>Trading at 1.4x P/B with a 230bps yield spread (vs. 278bps historical average), Maybank believes Keppel's strong fundamentals and sector tailwinds justify its premium valuation among SGX-listed data center REITs, which now include newcomer NTT DC REIT (US$1b IPO on July 14). The REIT's June 2023 reinstatement in the STI index further enhances its profile among Singapore's eight constituent S-REITs.</p><p><br></p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Maybank Initiates \"Buy\" on Keppel DC REIT With S$2.40 Target, Citing AI And Cloud-Driven Growth Potential</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMaybank Initiates \"Buy\" on Keppel DC REIT With S$2.40 Target, Citing AI And Cloud-Driven Growth Potential\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1050470178\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://community-static.tradeup.com/news/f17a9a7b68c877792d5e556261e9e709);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">TigerNews SG </p>\n<p class=\"h-time\">2025-07-18 11:38</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>Maybank Securities analyst Krishna Guha initiated coverage on Keppel DC REIT (SGX: AJBU) with a \"Buy\" rating and a S$2.40 target price in a July 17 research note, highlighting the REIT's strong positioning to capitalize on structural growth drivers including digital transformation, cloud migration, and artificial intelligence (AI) adoption.</p><p>The report emphasizes that data centers stand to benefit from multiple secular trends: exponential growth in data generation/consumption, accelerating enterprise cloud adoption, expanding AI applications, and increasingly stringent cybersecurity/data protection requirements. Citing DC Byte projections, Guha forecasts 17-19% compound annual growth (CAGR) for global data center demand through 2028, with Keppel's core European and Asian markets expected to mirror this trajectory.</p><p>As Asia's first pure-play data center REIT (listed 2014), Keppel currently operates 24 facilities across 10 countries with S$5 billion AUM, maintaining &gt;96% occupancy across its Singapore, European, Chinese, Australian and Japanese assets. The REIT demonstrated operational resilience in FY2024 with rental reversions reaching 39%, contributing to 0.7% DPU growth, while Q1 2025 saw a 14.2% DPU surge through active portfolio management and strategic acquisitions.</p><p>Financially, Keppel maintains a conservative balance sheet with 30.2% gearing, 5.8x interest coverage, and S$886 million debt capacity for growth initiatives. However, the analyst notes supply constraints in European markets due to power/land scarcity could present challenges.</p><p>Backed by sponsor Keppel's decade-long data center expertise (currently operating 650MW capacity with plans to expand to 1.2GW including innovative near-shore net-zero concepts), the REIT benefits from unique development pipelines. Guha highlights Keppel's attractive 4.3% yield and below-peer gearing as key differentiators, though cautions about rising electricity/carbon costs, tightening climate regulations, interest rate volatility, and FX risks.</p><p>Trading at 1.4x P/B with a 230bps yield spread (vs. 278bps historical average), Maybank believes Keppel's strong fundamentals and sector tailwinds justify its premium valuation among SGX-listed data center REITs, which now include newcomer NTT DC REIT (US$1b IPO on July 14). The REIT's June 2023 reinstatement in the STI index further enhances its profile among Singapore's eight constituent S-REITs.</p><p><br></p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AJBU.SI":"吉宝数据中心房地产信托"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1165026317","content_text":"Maybank Securities analyst Krishna Guha initiated coverage on Keppel DC REIT (SGX: AJBU) with a \"Buy\" rating and a S$2.40 target price in a July 17 research note, highlighting the REIT's strong positioning to capitalize on structural growth drivers including digital transformation, cloud migration, and artificial intelligence (AI) adoption.The report emphasizes that data centers stand to benefit from multiple secular trends: exponential growth in data generation/consumption, accelerating enterprise cloud adoption, expanding AI applications, and increasingly stringent cybersecurity/data protection requirements. Citing DC Byte projections, Guha forecasts 17-19% compound annual growth (CAGR) for global data center demand through 2028, with Keppel's core European and Asian markets expected to mirror this trajectory.As Asia's first pure-play data center REIT (listed 2014), Keppel currently operates 24 facilities across 10 countries with S$5 billion AUM, maintaining >96% occupancy across its Singapore, European, Chinese, Australian and Japanese assets. The REIT demonstrated operational resilience in FY2024 with rental reversions reaching 39%, contributing to 0.7% DPU growth, while Q1 2025 saw a 14.2% DPU surge through active portfolio management and strategic acquisitions.Financially, Keppel maintains a conservative balance sheet with 30.2% gearing, 5.8x interest coverage, and S$886 million debt capacity for growth initiatives. However, the analyst notes supply constraints in European markets due to power/land scarcity could present challenges.Backed by sponsor Keppel's decade-long data center expertise (currently operating 650MW capacity with plans to expand to 1.2GW including innovative near-shore net-zero concepts), the REIT benefits from unique development pipelines. Guha highlights Keppel's attractive 4.3% yield and below-peer gearing as key differentiators, though cautions about rising electricity/carbon costs, tightening climate regulations, interest rate volatility, and FX risks.Trading at 1.4x P/B with a 230bps yield spread (vs. 278bps historical average), Maybank believes Keppel's strong fundamentals and sector tailwinds justify its premium valuation among SGX-listed data center REITs, which now include newcomer NTT DC REIT (US$1b IPO on July 14). The REIT's June 2023 reinstatement in the STI index further enhances its profile among Singapore's eight constituent S-REITs.","news_type":1,"symbols_score_info":{"AJBU.SI":1.1}},"isVote":1,"tweetType":1,"viewCount":3670,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"essenList":[],"allBottom":false,"essenBottom":true}