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AJBU

Keppel DC REITSGX:AJBU Stock Report

Market Cap

S$4.1b

7D

1.3%

1Y

-16.8%

Updated

26 Nov, 2021

Data

Company Financials +
AJBU fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance5/6
Financial Health1/6
Dividends2/6

AJBU Stock Overview

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).

Price History & Performance

Summary of all time highs, changes and price drops for Keppel DC REIT
Historical stock prices
Current Share PriceS$2.37
52 Week HighS$3.04
52 Week LowS$2.32
Beta0.089
1 Month Change-0.42%
3 Month Change-5.58%
1 Year Change-16.84%
3 Year Change74.27%
5 Year Change94.26%
Change since IPO145.60%

Recent News & Updates

Mar 21
Keppel DC REIT's (SGX:AJBU) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects?

Keppel DC REIT's (SGX:AJBU) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects?

Keppel DC REIT's (SGX:AJBU) stock is up by a considerable 6.3% over the past week. Given that stock prices are usually...

Feb 23
Keppel DC REIT (SGX:AJBU) Has Gifted Shareholders With A Fantastic 233% Total Return On Their Investment

Keppel DC REIT (SGX:AJBU) Has Gifted Shareholders With A Fantastic 233% Total Return On Their Investment

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put...

Shareholder Returns

AJBUSG REITsSG Market
7D1.3%-0.3%-1.9%
1Y-16.8%3.0%8.8%

Return vs Industry: AJBU underperformed the SG REITs industry which returned 4.5% over the past year.

Return vs Market: AJBU underperformed the SG Market which returned 10.7% over the past year.

Price Volatility

Is AJBU's price volatile compared to industry and market?
AJBU volatility
AJBU Average Weekly Movement1.8%
REITs Industry Average Movement2.5%
Market Average Movement4.9%
10% most volatile stocks in SG Market14.4%
10% least volatile stocks in SG Market2.1%

Stable Share Price: AJBU is less volatile than 75% of SG stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: AJBU's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2014n/aAnthea Leehttps://www.keppeldcreit.com

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, directly or indirectly, in a diversified portfolio of income-producing real estate assets which are used primarily for data centre purposes, as well as real estate related assets. As at 31 December 2020, its portfolio comprises 19 data centres strategically located in key data centre hubs.

Keppel DC REIT Fundamentals Summary

How do Keppel DC REIT's earnings and revenue compare to its market cap?
AJBU fundamental statistics
Market CapS$4.06b
Earnings (TTM)S$173.15m
Revenue (TTM)S$276.77m

23.5x

P/E Ratio

14.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AJBU income statement (TTM)
RevenueS$276.77m
Cost of RevenueS$46.10m
Gross ProfitS$230.67m
ExpensesS$57.52m
EarningsS$173.15m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.10
Gross Margin83.34%
Net Profit Margin62.56%
Debt/Equity Ratio60.0%

How did AJBU perform over the long term?

See historical performance and comparison

Dividends

4.1%

Current Dividend Yield

67%

Payout Ratio

Valuation

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

32.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AJBU (SGD2.37) is trading below our estimate of fair value (SGD3.5)

Significantly Below Fair Value: AJBU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AJBU is poor value based on its PE Ratio (23.5x) compared to the SG REITs industry average (21.1x).

PE vs Market: AJBU is poor value based on its PE Ratio (23.5x) compared to the SG market (13.6x).


Price to Earnings Growth Ratio

PEG Ratio: AJBU is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: AJBU is overvalued based on its PB Ratio (2.1x) compared to the SG REITs industry average (1x).


Future Growth

How is Keppel DC REIT forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AJBU's forecast earnings growth (6.9% per year) is above the savings rate (1.8%).

Earnings vs Market: AJBU's earnings (6.9% per year) are forecast to grow slower than the SG market (13.9% per year).

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

Revenue vs Market: AJBU's revenue (4.2% per year) is forecast to grow slower than the SG market (7.3% per year).

High Growth Revenue: AJBU's revenue (4.2% 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 (9.1%).


Past Performance

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

19.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AJBU has high quality earnings.

Growing Profit Margin: AJBU's current net profit margins (62.6%) are higher than last year (58.1%).


Past Earnings Growth Analysis

Earnings Trend: AJBU's earnings have grown by 19.2% per year over the past 5 years.

Accelerating Growth: AJBU's earnings growth over the past year (33.4%) exceeds its 5-year average (19.2% per year).

Earnings vs Industry: AJBU earnings growth over the past year (33.4%) exceeded the REITs industry 2.6%.


Return on Equity

High ROE: AJBU's Return on Equity (8.8%) is considered low.


Financial Health

How is Keppel DC REIT's financial position?


Financial Position Analysis

Short Term Liabilities: AJBU's short term assets (SGD272.8M) do not cover its short term liabilities (SGD304.0M).

Long Term Liabilities: AJBU's short term assets (SGD272.8M) do not cover its long term liabilities (SGD1.1B).


Debt to Equity History and Analysis

Debt Level: AJBU's net debt to equity ratio (49.7%) is considered high.

Reducing Debt: AJBU's debt to equity ratio has increased from 42% to 60% over the past 5 years.

Debt Coverage: AJBU's debt is not well covered by operating cash flow (18.6%).

Interest Coverage: AJBU's interest payments on its debt are well covered by EBIT (11.8x coverage).


Balance Sheet


Dividend

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

4.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AJBU's dividend (4.1%) is higher than the bottom 25% of dividend payers in the SG market (1.99%).

High Dividend: AJBU's dividend (4.1%) is low compared to the top 25% of dividend payers in the SG market (5.27%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.5%), AJBU's dividend 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 (110.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Anthea Lee (47 yo)

0.75

Tenure

Ms. Meng Hoon Lee, also known as Anthea, is Chief Executive Officer of Keppel DC REIT Management Pte Ltd (“Company”) since February 15, 2021. She was Deputy CEO & Head of Investment of Keppel DC REIT Manag...


Leadership Team

Experienced Management: AJBU's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: AJBU's board of directors are considered experienced (7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5%.


Top Shareholders

Company Information

Keppel DC REIT's 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$4.064b
  • Shares outstanding: 1.71b
  • Website: https://www.keppeldcreit.com

Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/26 16:09
End of Day Share Price2021/11/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.