“We expect demand to remain robust, underpinned by secular growth trends such as cloud computing, e-commerce and big data requirements, and supported by Singapore’s infrastructure and Smart Nation initiatives,” says Wong.
In September, the REIT acquired its second data centre in Dublin, Ireland – B10 Data Centre for EUR66.0 million ($101.3 million).
Along with the REIT’s maincubes data centre in Germany which is currently under construction, the analyst estimates that KDCREIT’s AUM is now around $1.7 billion, which is on track to meet the management’s $2 billion AUM target by 2018.
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While its current stock price at 1.47 times FY18 book may appear steep, Wong says this compared favourably to other listed data centre REITs and comes in at only a slight premium to Mapletree Industrial Trust's 1.41 times FY18 book, which owns more traditional industrial assets.
As at 11.24am, units in KDCREIT are trading at $1.40 or 18.3 time FY18F earnings with a DPU yield of 5.5%.
