Keppel DC REIT and Keppel Infrastructure Trust in focus: Weekly Review with SIAS

What happened?

In this week's Weekly Market Review in partnership with Securities Investors Association Singapore (SIAS), we discuss key developments in the global equity market and also share more about Keppel DC REIT and Keppel Infrastructure Trust.

Watch the video to learn more about what we are looking out  for this week.

Weekly Market Review

2:54 - Macro Update

• US stocks rebounded with the S&P 500, Nasdaq and Dow Jones recording positive gains.
• For the third quarter of 2024, Singapore's economy grew by 5.4% compared to the previous year and this is an upward revision compared to the initial forecast.
• The momentum for Singapore's economic growth appears to be picking up and there is stronger year-on-year growth over the past few quarters.
• The Ministry of Trade and Industry is expecting Singapore's economy to grow by 1-3% next year.

5:28 - Singapore market updates

STI Top performers:

• SGX
• DFI Retail Group Holdings Ltd
• Yangzijiang Shipbuilding Holdings Ltd
• Seatrium Ltd
• Sembcorp Industries Ltd

STI worst performers:

• Frasers Logistics & Commercial Trust
• Singtel
• CapitaLand Integrated Commercial Trust
• Mapletree Logistics Trust
• DBS

7:01 - Keppel DC REIT

• Keppel DC REIT announced the acquisition of two AI-ready data centres in Singapore (KDC SGP7 and KDC SGP8) for approximately $1.067 billion, marking a strategic move to enhance its position in Asia's top data centre hub.
• The acquisition will increase Singapore’s share of its portfolio AUM (assets under management) from $2.1 billion (51%) to $3.4 billion (67%), raising the overall AUM to $5.2 billion.
• The deal is immediately accretive to distribution per unit by 11.1%, with a potential 8.1% accretion if a 10-year land lease extension is secured.
• Funded through 70% equity and 30% debt, the acquisition strengthens Keppel DC REIT's growth potential, leveraging rental uplifts and long-term cash flow benefits.
• In terms of valuation, Keppel DC REIT's price-to-book ratio of 1.61x which is above historical average.
• Current dividend yield of 4.1% is below the historical average.

Read more: Keppel DC REIT buys 2 AI-ready data centres. What should investors do?

Related Links:

• Keppel DC REIT share price history and share price target
• Keppel DC REIT dividend history and dividend forecasts

12:42 - Keppel Infrastructure Trust

• Keppel Infrastructure Trust (KIT) announced the acquisition of the Marina East Desalination Plant, Singapore's fourth desalination plant with a capacity of 137,000 cubic meters per day and a 25-year concession until 2045.
• This acquisition will increase KIT’s AUM from $8.7 billion to $9 billion, with the plant contributing 4% of the portfolio and raising Singapore's share of AUM to 22%.
• The transaction requires unitholder approval via an EGM, as it is an interested-party transaction.
• Both this acquisition and Keppel DC REIT's recent deal align with Keppel Limited’s Vision 2030 to grow its fund under management from $85 billion (as of June 2024) to $200 billion by 2030 through capital recycling, launching new funds, and scaling existing products while increasing fund management fees from its listed entities.

Read more: Keppel Infrastructure Trust to acquire Keppel Marina East Desalination Plant

Related links:

• Keppel Infrastructure Trust share price history and share price target
• Keppel Infrastructure Trust dividend history and dividend forecasts

17:31 - Technical Analysis

STI Technical Analysis

• The STI saw a modest 0.3% rise this morning, reaching 3,757 points, near its year-to-date high of 3,766 points.
• However, momentum appears to be waning, with the MACD indicator signaling a potential trend reversal as its lines converge
• The RSI, currently at 68, indicates overbought conditions, with a possible retracement if it exceeds the 70-point threshold.

Dow Jones Technical Analysis

• The Dow Jones index closed at 44,297 points, just below the all-time high of 44,486 points, representing a 2% weekly gain.
• While testing this high seems possible, upside potential is limited due to the short Thanksgiving trading week and the December holiday season, likely capping the index around 44,500 points.
• Indicators show mixed signals, with the MACD lacking clear direction and the RSI at 65 nearing the overbought level of 70, suggesting a potential retracement in the near term.

S&P 500 Technical Analysis

• The S&P 500 gained 1.7% last week, closing at 5,969 points.
• The MACD indicator is slightly negative, showing no clear direction, while the RSI at 61 indicates some positive momentum.
• For accumulation, the 50-day exponential moving average at 5,806 points serves as a preferred entry point for positioning portfolios for 2024.

Nasdaq Composite Technical Analysis

• The NASDAQ Composite Index closed slightly above 19,000 on Friday, remaining within range of its all-time high of 19,366 points.
• The MACD signals a potential pullback with a negative direction, and the RSI has been flat for the past few sessions, staying below the 14-day moving average of 60.
• Overall, the NASDAQ appears to lack strong momentum, suggesting limited upside in the near term.

What to look out for this week

• Monday, 25 Nov: Singapore Airlines ex-dividend date
• Tuesday, 26 Nov: Beansprout webinar: Singapore REITs Outlook - What to expect in 2025? Singapore Savings Bond closing date
• Wednesday, 27 Nov: US GDP data
• Thursday, 28 Nov: US Holiday

Check out the full list of Singapore stocks, REITs and ETFs with upcoming dividend payments with our dividend calendar.

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