Keppel DC REIT's property in Singapore, T25. (Photo Keppel T&T)

Units of Singapore’s latest real estate investment trust Keppel DC REIT (SGX:AJBU) ended its first trading day 3.8% above the offer price of SGD0.93 on the Singapore Exchange.

Units of DC REIT traded between SGD0.945 and SGD0.985 on its debut at 2pm before closing the trading day at SGD0.965.

The rise was against the backdrop of a strong showing by Singapore REITs in general with counters such as Mapletree Commercial Trust (MCT) (SGX:N2IU) and Lippo Malls Indonesia Retail Trust (LMIRT) (SGX:D5IU) gaining more than 1% each.

Keppel DC REIT, sponsored by infrastructure company Keppel Telecommunications and Transportation (Keppel T&T), has been touted as Asia’s first data centre real estate investment trust and has an initial portfolio book value of ABOUT SGD1 billion.

The REIT has an initial portfolio of eight properties across the Asia Pacific and Europe, including two in Singapore, and plans to capitalise on the rising global demand for data facilities.

According to the company, Keppel DC REIT offers investors a distribution yield of 6.8% in 2015 and 7.1% in 2016. It also promises distribution growth of 4.5% based on prevailing built-in rent escalation agreements as well as the renewal or commencement of leases and co-location arrangements.

Keppel DC REIT's property in Singapore, T25. (Photo Keppel T&T)
Keppel DC REIT's property in Singapore, T25. (Photo Keppel T&T)

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.