Basic Profile & Key Statistics
Performance Highlight
Related Parties Shareholding
- REIT sponsor's shareholding is low at 19.964%
- REIT manager's shareholding is low at 0.362%
- Directors of REIT manager's shareholding is low at 0.039%
Lease Profile
- Occupancy is high at 98.1%
- WALE is long at 4.9 years
- Highest lease expiry within 5 years is low at 24% which falls in 2024
- Weighted average land lease expiry is slightly short at 59.23 years
Debt Profile
- Gearing ratio is slightly low at 35.1%
- Cost of debt is low at 1.6%
- Fixed rate debt % is moderate at 73%
- All debts are unsecured debt
- WADM is slightly long at 3.2 years
- Highest debt maturity within 5 years is moderate at 31.5% which falls in 2025
- Interest coverage ratio is high at 12.2 times
Diversification Profile
- Top geographical contribution is slightly high at 60.9%
- Top property contribution is low at 12.7%
- Top 5 properties contribution is low at 49.8%
- Top tenant contribution is high at 38.9%
- Top 10 tenants contribution is high at 79.3%
- Top 3 countries contribution is from Singapore, Australia and Ireland which contribute more than 80% of GRI
Key Financial Metrics
- Property yield is high at 8.4%
- Management fees over distribution is moderate at 13.9% in which unitholders receive S$ 7.19 for every dollar paid
- Distribution on capital is high at 5.3%
- Distribution margin is high at 58.8%
- 3.1% of DPU is from income support
Trends
- Uptrend - DPU, NAV per Unit, Interest Coverage Ratio, Distribution on Capital
- Slight Uptrend - Distribution Margin
- Flat - Property Yield
Relative Valuation
- P/NAV - Below -1SD for 1y; Average for 3y; Above average for 5y
- Dividend Yield - Above +2SD for 1y; Average for 3y & 5y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| High Occupancy | Low REIT Sponsor's Shareholding |
| Long WALE | Low REIT Manager's Shareholding |
| Well Spread Lease Expiry | Low Directors of REIT Manager's Shareholding |
| Low Cost of Debt | High Top Tenant & Top 10 Tenants Contributions |
| 100% Unsecured Debt | |
| High Interest Coverage Ratio | |
| Low Top Property & Top 5 Properties Contributions | |
| High Property Yield | |
| High Distribution on Capital | |
| High Distribution Margin | |
| DPU Uptrend | |
| NAV per Unit Uptrend | |
| Interest Coverage Ratio Uptrend | |
| Distribution on Capital Uptrend |
From the above, KDC fundamentals and performance remain strong where it continues to deliver DPU growth. With the Guangdong Data Centre acquisition and the investment in M1’s NetCo, KDC upcoming performance is expected to be boosted further.
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*Disclaimer: Materials in this blog are based on my research and opinion which I don't guarantee accuracy, completeness, and reliability. It should not be taken as financial advice or a statement of fact. I shall not be held liable for errors, omissions and loss or damage as a result of the use of the material in this blog. Under no circumstances does the information presented on this blog represent a buy, sell, or hold recommendation on any security, please always do your own due diligence before any decision is made.
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