Orders for 5,000 shares were filled today at 2.58 as I have increased bids from my ideal price of 2.55 which is nearer the short term support.
As this will be an ultra-long term investment in the time frame of 10 to even 20 or 30 years, it is not a difficult decision. I first initiated a small position in Keppel DC Reit in Nov 2020 at a rather high price of 2.88 and now is merely to increase my holdings. If the share price plunged below 2.50 and move closer to 2.00, I will be happy to add even more shares. With this addition of 5,000 shares, I will be holding 8,000 shares. In the upcoming month, it will be results reporting time with an impending DPU of at least 4 cents. In time to come, it is probable there would be more data center acquisitions leading to preferential offering opportunities for me to increase my stakes without buying from the market.
Keppel DC Reit is a resilient and strong growth Reit with revenues growing exponentially and has been rewarding shareholders with increasing annual DPU. In the next few years, its DPU should increase at least 5% annually with more acquisitions in the pipeline. However, current yield at around 3.5% is relatively low to other Reits. This is compensated by its lower risk and nature of Data centre assets whereby tenants usually sign a longer lease of 5 to 10 years compared to retail or commercial tenants.
I believe that our great future will be in technology and computing. Mobile applications, social media, data engineering, artificial intelligence and cloud computing will drive the world. Data centers provide the bedrock upon which server infrastructure and data platforms can enable the trillions of transactions and data to flow and be stored securely so that the businesses and operations in the digital world can function. I place my bet on data centers and believe in reaping huge returns in the long run.
Thanks for reading. Stay safe and be strong as always.
With love & peace,
Qiongster
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