Keppel DC REIT requested for a trading halt earlier and launched a private placement of 224,000,000 shares at an issue price of $1.353 per share to raise gross proceeds of approximately $303.1 million. You can refer to the official announcement here. Let’s look at the numbers!

Current/Latest Numbers
Price: $1.43
Dividend/Distribution Per Unit (DPU) for FY2017: $0.0712
DPU Excluding a one-off capital distribution of S$1.7 million or 0.15 cents for FY2017: $0.0697
Dividend Yield (Assuming DPU remain constant for FY2018): 0.0697 / 1.43 = 4.87%
NAV: $0.97
PB: 1.47 (47% premium!)
Gearing: 37.4% (MAS limit is 45%, the lower the better)
WALE (Weighted Average Lease Expiry): 9.6 years (the higher the better)
Total shares based on 2018Q1 (including manager’s fees): 1,127,275,000

Long portfolio WALE provides income stability for the REIT (the longer the better) hence it is fairly conservative to assume DPU remain constant for this year as well. This is probably one of the reasons why Keppel DC REIT is …