I am bullish on data centres as I believe the data consumption can only go up in the future and more space is needed to house the servers.
Previously I covered 6 data centre REITs and most of them are based in the US. SGX Research identified 3 locally listed securities with exposure to data centres.
Besides Keppel DC REIT (SGX:AJBU) as a pure data centre play, Mapletree Industrial Trust (SGX:ME8U) and Wing Tai (SGX:W05) have part exposure to data centres.
Keppel DC REIT would be the primary choice but it is trading at the top range of its historical Price-to-Book (PB) range with a PB of 2.1. That’s higher than two standard deviations from the mean PB ratio. Hence, it is too pricey to invest in it at this point in time.
Wing Tai (SGX:W05) has about 3% of their assets in data centres and that’s insignificant to be considered a data centre play....