SGX:AJBU

Stock Analysis Report

Executive Summary

Listed on 12 December 2014, Keppel DC REIT is the first pure-play data centre REIT listed in Asia and on the Singapore Exchange (SGX-ST).

Snowflake

Fundamentals

Proven track record with moderate growth potential.

Share Price & News

How has Keppel DC REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AJBU has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.7%

AJBU

0.2%

SG REITs

-0.6%

SG Market


1 Year Return

47.4%

AJBU

16.9%

SG REITs

3.9%

SG Market

Return vs Industry: AJBU exceeded the SG REITs industry which returned 16.9% over the past year.

Return vs Market: AJBU exceeded the SG Market which returned 3.9% over the past year.


Shareholder returns

AJBUIndustryMarket
7 Day4.7%0.2%-0.6%
30 Day-0.5%-3.0%3.1%
90 Day16.4%0.5%3.0%
1 Year55.9%47.4%24.2%16.9%8.0%3.9%
3 Year94.2%65.8%48.2%22.2%19.9%7.1%
5 Yearn/a55.8%12.1%11.6%-7.0%

Price Volatility Vs. Market

How volatile is Keppel DC REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Keppel DC REIT undervalued compared to its fair value and its price relative to the market?

17.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate AJBU's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate AJBU's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: AJBU is poor value based on its PE Ratio (17.7x) compared to the REITs industry average (14.1x).

PE vs Market: AJBU is poor value based on its PE Ratio (17.7x) compared to the SG market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: AJBU is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: AJBU is overvalued based on its PB Ratio (1.8x) compared to the SG REITs industry average (1x).


Next Steps

Future Growth

How is Keppel DC REIT forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

12.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AJBU's forecast earnings growth (12.4% per year) is above the savings rate (2.3%).

Earnings vs Market: AJBU's earnings (12.4% per year) are forecast to grow faster than the SG market (5.5% per year).

High Growth Earnings: AJBU's earnings are forecast to grow, but not significantly.

Revenue vs Market: AJBU's revenue (17.1% per year) is forecast to grow faster than the SG market (5.4% per year).

High Growth Revenue: AJBU's revenue (17.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AJBU's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

How has Keppel DC REIT performed over the past 5 years?

20.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AJBU has large one-off items impacting its financial results.

Growing Profit Margin: AJBU's current net profit margins (81.2%) are higher than last year (49.5%).


Past Earnings Growth Analysis

Earnings Trend: AJBU's earnings have grown significantly by 20.1% per year over the past 5 years.

Accelerating Growth: AJBU's earnings growth over the past year (89.8%) exceeds its 5-year average (20.1% per year).

Earnings vs Industry: AJBU earnings growth over the past year (89.8%) exceeded the REITs industry 4.6%.


Return on Equity

High ROE: AJBU's Return on Equity (9.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Keppel DC REIT's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AJBU has a high level of physical assets or inventory.

Debt Coverage by Assets: AJBU's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

Asset Level: AJBU's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if AJBU has a sufficient allowance for bad loans.

Low Risk Liabilities: AJBU reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if AJBU has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AJBU has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if AJBU has an appropriate level of bad loans.


Next Steps

Dividend

What is Keppel DC REIT's current dividend yield, its reliability and sustainability?

3.87%

Current Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%2.5%markettop25%5.5%industryaverage5.4%forecastin3Years4.4%

Current dividend yield vs market & industry

Notable Dividend: AJBU's dividend (3.87%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: AJBU's dividend (3.87%) is low compared to the top 25% of dividend payers in the SG market (5.54%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AJBU has been paying a dividend for less than 10 years.

Growing Dividend: AJBU's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.3%), AJBU's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AJBU's dividends in 3 years are not forecast to be well covered by earnings (100.5% payout ratio).


Next Steps

Management

What is the CEO of Keppel DC REIT's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average board tenure


CEO

Hsien Yang Chua (41yo)

0yrs

Tenure

0

Mr. Hsien Yang Chua serves as the Chief Executive Officer of Keppel Data Centre REIT Management Pte Ltd and Keppel Corporation Limited. Mr. Chua served as the Chief Executive Officer of Keppel Data Centre  ...


Board Age and Tenure

5.0yrs

Average Tenure

57yo

Average Age

Experienced Board: AJBU's board of directors are considered experienced (5 years average tenure).


Insider Trading

Insider Buying: AJBU insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyS$153,14416 Oct 19
Hsien Yang Chua
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer of Keppel DC REIT Management Pte Ltd
Shares89,558
Max PriceS$1.71
BuyS$17,16516 Oct 19
Tin Tan
EntityIndividual
Role
Member of the Board of Directors
Independent Director of Keppel DC REIT Management Pte Ltd
Shares10,038
Max PriceS$1.71
BuyS$4,57816 Oct 19
Dileep Nair
EntityIndividual
Role
Member of the Board of Directors
Independent Director of Keppel DC REIT Management Pte Ltd
Shares2,677
Max PriceS$1.71
BuyS$14,77716 Oct 19
Chiang Lee
EntityIndividual
Role
Member of the Board of Directors
Independent Director of Keppel DC REIT Management Pte Ltd
Shares10,032
Max PriceS$1.47
BuyS$8,97816 Oct 19
Hua Mui Tan
EntityIndividual
Role
Chairman of the Board
Chairman of the Board- Keppel DC REIT Management Pte Ltd
Shares5,250
Max PriceS$1.71
BuyS$637,36204 Oct 19
Daiwa Asset Management Co. Ltd.
EntityCompany
Shares372,000
Max PriceS$1.72
SellS$3,670,77004 Oct 19
Daiwa Asset Management Co. Ltd.
EntityCompany
Shares2,200,000
Max PriceS$1.69
BuyS$74,992,02620 Sep 19
Cohen & Steers Capital Management, Inc.
EntityCompany
Shares43,000,000
Max PriceS$1.74

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.2%.


Management Team

  • Hsien Yang Chua (41yo)

    Chief Executive Officer of Keppel DC REIT Management Pte Ltd

    • Tenure: 0yrs
  • Kelvin Chua

    Company Secretary of Keppel DC REIT Management Pte Ltd

    • Tenure: 0yrs
  • Anthea Lee (45yo)

    Deputy CEO & Head of Investment of Keppel DC REIT Management Pte Ltd

    • Tenure: 0yrs
  • Adam Lee (34yo)

    Head of Finance

    • Tenure: 1.3yrs
  • Huihui Liang

    Assistant Manager Investor Relations

    • Tenure: 0yrs
  • Winnie Weiling

    Joint Company Secretary of Keppel DC REIT Management Pte Ltd

    • Tenure: 1.3yrs

Board Members

  • Huan Low (62yo)

    Independent Director of Keppel DC REIT Management Pte Ltd.

    • Tenure: 0.8yrs
  • Chiang Lee (69yo)

    Independent Director of Keppel DC REIT Management Pte Ltd

    • Tenure: 5yrs
    • Compensation: S$69.00k
  • Tin Tan (57yo)

    Independent Director of Keppel DC REIT Management Pte Ltd

    • Tenure: 5yrs
    • Compensation: S$71.91k
  • Thomas Pang (54yo)

    Non-Executive Director of Keppel DC REIT Management Pte Ltd

    • Tenure: 5yrs
    • Compensation: S$46.00k
  • Christina Tan (53yo)

    Chairman of the Board- Keppel DC REIT Management Pte Ltd

    • Tenure: 1.6yrs
    • Compensation: S$80.50k
  • Dileep Nair (68yo)

    Independent Director of Keppel DC REIT Management Pte Ltd

    • Tenure: 5yrs
    • Compensation: S$65.87k
  • Kenny Kwan (49yo)

    Independent Director of Keppel DC REIT Management Pte Ltd.

    • Tenure: 0.8yrs

Company Information

Keppel DC REIT's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Keppel DC REIT
  • Ticker: AJBU
  • Exchange: SGX
  • Founded: 2014
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Market Cap: S$3.243b
  • Shares outstanding: 1.63b
  • Website: https://www.keppeldcreit.com

Location

  • Keppel DC REIT
  • Keppel Bay Tower
  • Level 2
  • Singapore
  • 98632
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AJBUSGX (Singapore Exchange)YesUnitsSGSGDDec 2014
KPDC.FOTCPK (Pink Sheets LLC)YesUnitsUSUSDDec 2014

Biography

Listed on 12 December 2014, Keppel DC REIT is the first pure-play data centre REIT listed in Asia and on the Singapore Exchange (SGX-ST). Keppel DC REIT's investment strategy is to principally invest, dire ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 12:55
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.