For those who missed it,
Digital Core REIT IPO-ed today.
Day one trading price performance was very strong:
- Trading opened at US$1.01 (14.7% above IPO price)
- Intraday high was US$1.09 (23.8% above IPO price)
- Closing price was US$1.01 (14.7% above IPO price)
For reference, the IPO price was US$0.88, or SGD$1.21.
At closing price of $1.01, that works out to:
- 1.18x book value
- 4.1% FY2022 yield
Compared to Keppel DC REIT at 1.96x book value, and 4.03% trailing yield.
The 4% yield for both Keppel DC REIT and Digital Core REIT is very interesting, perhaps that is the market view on fair price for data center REITs.
A lot of you have asked me if I intend to buy more or to hold (or sell) Digital Core REIT.
I’ll probably see how the trading action plays out over the next few weeks, but at this price I don’t see a compelling need to add to my position in Digital Core REIT anymore....
