Key Investment Attractions

Key Investment Attractions


1. Unique exposure to high growth data centre industry

  • Strong growth in data creation and storage needs which are expected to continue with increasing digitisation of the global economy
  • Growth in cloud computing, e-commerce and online shopping, increasing compliance and regulatory requirements on data security, and increasing outsourcing of data centre requirements
  • High barriers to entry for the data centre industry due to substantial upfront costs, customers' preference for data centre providers with proven track record and lack of suitable sites for data centres
  • Favourable supply and demand dynamics

2. High quality portfolio of data centres

  • Modern technical specifications
  • Strategically located in key data centre hubs with excellent connectivity and proximity to local demand

3. High quality customer base and favourable lease profile

  • High quality and diversified customer base including Fortune Global 500, S&P 100 and government-related entities
  • Favourable lease and colocation profile with long WALE of 9.6 years, offering income stability with potential upside from rental reversions

4. Strong distribution growth delivered both organically and through future acquisitions

  • Embedded organic rental revenue growth from built-in rental escalations
  • Asset enhancement opportunities
  • Acquisition pipeline supported by ROFRs from Sponsor and iseek Communications

5. Conservative capital structure with aggregate leverage of 28.3%(1)

  • Financial flexibility to undertake future growth opportunities

6. Committed Sponsor and experienced Manager with proven track record in the data centre industry

 

 

Footnote

(1) Aggregate leverage is computed based on gross borrowings and deferred payments over total deposited properties (the Group's total assets) as stipulated in the Property Funds Appendix in the Code on Collective Investment Schemes issued by the Monetary Authority of Singapore, without considering finance lease liabilities pertaining to land rent commitments. If these finance lease liabilities pertaining to land rent commitments were included, the aggregate leverage would be 29.8% (31 December 2015: 31.1%).
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