Portfolio Update - Keppel DC Reit

And there goes my war chest. Apologies for the late post, but December has begun, and Winter has come at work.

So I've been looking at Keppel DC Reit (AJBU) for a while. I was busy with work and missed the opportunity to pick it up when the price dipped after the preferential offering - but I didn't see the need to wait any longer. The price recovered very quickly from the mid 1.10s to 1.20+ after the offering. I anticipated that I wouldn't have time to catch up on stock prices when the potential rate hike hit (December tends to be a hellishly busy time for me at work), so I moved to pick 4,500 shares up at 1.21. 

Keppel DC is diversified overseas - their assets are located throughout Australia, Europe, and Southeast Asia. This mitigates risk should anything unsavoury occur.

The need for data centres should only increase as we continue into a digital age - as IT and Fintech continue to increase the need for data creation, usage and storage. Growth in 2017 would be bolstered by their recent DC acquisitions.

The potential US rate hike might make the price dip again, but I expect strong recovery in the following weeks. This serves to bolster the dividend segment of my portfolio - I am expecting growth to be consistent and steady over the next few years. Keppel DC closed at 1.22 on 2nd November.

Source: Keppel DC REIT site - moving forward with a recent acquisition

If I have the time, I'll be looking into picking up some DBS and KeppelCorp shares in the near future for some minor trading. With oil prices recovering after the OPEC deal, I expect to see Oil and Gas related companies rally. The upcoming rate hike should prove to be good for DBS as well.

Until next time.



  1. How about Keppel Reit? What do u think of the outlook?

    1. Thanks for visiting! I haven't been looking at Keppel REIT, but I would expect price to dip further following the rate hike announcement. As their main investment is in office buildings, they stand to gain if office prices soar, which may not be far off, judging how a record-setting bid was made for the Central Boulevard site in early November. Prices should be positive towards 2017, and Keppel Reit should be stable. You might consider heading in if the price dips under $1.

  2. Hi There..is Reits like a mutual fund? Could you share a little bit more on the mode of purchase and which platform to purchase from?

    1. Hey there, thanks for dropping by! REITS are something like mutual funds - they allow investors to invest in real-estate ventures (in Keppel DC's case, the REIT invests in real estate used for data centre related purposes). REITs are typically listed on exchanges, like our domestic SGX, for example. You could simply purchase these REITS off the stock market through any stock broker, like DBS Vickers, CIMB Securities, Philips Securities, etc depending on preference and convenience.


Powered by Blogger.